Lavazza Sustainability Report 2015

Sustainability
Report
2015
Sustainability Report 2015
Sustainability
Report
Luigi Lavazza S.p.A.
2015
Lavazza Sustainability Report 2015 Contents
Sustainability Report CONTENTS
2015
1. 2. 3.
NOTE ON METHODOLOGY Luigi Lavazza S.p.A. 17 Sustainability projects 47 A passion for excellence 65
Tradition, evolution and revolution in producing countries

Fondazione Lavazza
Document objectives 10 1.1 2015: the year of sustainability 19 2.1 Fondazione Giuseppe e Pericle Lavazza 49 3.1 Lavazzas approach to quality 67
control and management
Drafting process and references 10 1.2 Growing economic engagement 37 2.2 Project overview 50 of the manufacturing process
in sustainability
Scope of the report 11 2.3 The importance of teamwork 52 3.1.1 Quality of the raw material 69
1.3 Business values, value of the business 38

Stakeholder Engagement and 11 2.4 Performance in 2015 56 3.1.2 Quality of the manufacturing process 78
materiality analysis
2.5 Focus on some projects 60 3.1.3 Certifications 80
Assurance Process 15
of Fondazione Lavazza
3.2 Responsible supply chain 90
management
3.3 Monitoring and audits on suppliers 93
4 5
Lavazza Sustainability Report 2015 Contents
CONTENTS
4. 5. 6.
Sustainability and innovation 95 Human resources 119 Continuous improvement 147
development Lavazza objectives 2016-2018
GRI CONTENT INDEX

4.1 Innovation as an engine
150
97 5.1 Lavazzas approach to people 121
for development
5.1.1 Training and Development: 122
4.2 Our commitment to 102 a structured and shared process GLOSSARY 160
environmental sustainability
5.1.2 Loyalty and transparency 129
4.3 Carbon Footprint 104
5.1.3 Internal communication 130
4.4 Health & safety, energy and 108
Environment Management System 5.1.4 Nuvola: a work in progess 134
5.1.5 Occupational Health and Safety 142
6 7
Lavazza Sustainability Report 2015 Introduction
O S
ur business has grown tremendously in the This Report tells the story of what has proven to be ustainability is a topic that we all must take into with farmers, in order to increase their know-how,
last years. This is a moment of extraordinary an extraordinary year for Sustainability, a story that consideration. Today, as ever more in the future, is crucial for Lavazza. We do that by providing farmers
development for us, as witnessed by our most kicks off with a series of special events held over the it will be an essential element of business. with appropriate tools and technologies to address
recent acquisitions of Carte Noire, market leader in course of 2015 Lavazza was in fact selected Official climate change and minimise the environmental
the French retail sector and Merrild, the main brand Coffee of the Italian Pavilion at the 2015 Universal A challenge that we at Lavazza face every day, making impact of their activities while supporting farming
in Denmark and the Baltic countries. Sixth in global Exposition and presented its first Sustainability Report, our best effort to offer our consumers Quality methods improvement.
coffee ranking, Lavazza reaffirms itself as a global as well as its compostable capsule. Moreover, Lavazza at all levels. In fact, we are aware that our consumers
company, with more than 50% of its revenues deriving pushed innovation further through the launch of are not the same as ten years ago and that they Global markets require us to grow. We aim to build
from exports. We are a leading international Group, the first espresso in outer space, while supporting are becoming increasingly conscious of all aspects on what made us one of the most credible brands
engaging consistently in offering the same quality and culture thanks to the partnerships with the New concerning product quality and value, including abroad: our values and identity. A vision that combines
excellence that distinguished us for 120 years. York Guggenheim Museum and the Venetian Civic Company sustainability, both in terms of product tradition and innovation and, above all, respect for our
Museums. Promoting international sport events, and production process. collaborators and consumers worldwide.
We want to keep on growing without losing sight through partnership with the 4 Grand Slam tennis
of who we are and where we come from, the values tournaments was also an important point on the Thanks to a targeted growth policy on key markets
in which our business is rooted and the respect for our Companys agenda. A special year characterised, and strategic acquisitions, Lavazza confirms itself Antonio Baravalle
people, whose hard work and skills allow us to aim for above all, by one of the pillars of our entrepreneurial as a global leader. Our goal is to continue in this Chief Executive Officer of Luigi Lavazza S.p.A.
and reach ambitious goals. vision: the attention and care we devote to our people. direction by leveraging our values, tradition, quality
and our ability to continuously innovate. In other
At the beginning of 2017 we will move to the new A story made of consistency and credibility, of vision words, leveraging on what makes Lavazza unique.
Headquarters, which are just a short walk from the and momentum towards a future of challenges and
places where the Company was born in Torino, opportunities. We are convinced that combining innovation and
a city of innovation and change. This relocation will sustainability is the key to success. Thus, we have
represent an opportunity to give a boost towards Alberto Lavazza more than doubled investments in research and
a more sustainable, integrated and innovative President of Luigi Lavazza S.p.A. development in the last four years.
management of our Company. The new Headquarters
will be in fact characterized by a more efficient We believe in the importance of spreading our coffee
management of energy consumption, lower use culture and the excellence of our authentic Italian
of paper, more flexibility in the organization of brand worldwide. By the same token, cooperation
space. Moreover, digital technologies will favour an
increasingly cooperative spirit, as well as an effective
communication within the Company and with our
stakeholders. Sustainability represents for us a reality
and an opportunity, and the new Headquarters is
a concrete example of this approach.
8 9
Lavazza Sustainability Report 2015 Methodological note
METHODOLOGICAL NOTE
Document objectives Drafting process and references Scope of the report1 Stakeholder Engagement and
materiality analysis
With this new edition, the Lavazza Group wishes to share the results The report was drafted by Lavazzas Institutional Relations & Lavazzas manufacturing system is split across six manufacturing [G4-18] In accordance with the GRI-G4 guidelines, Lavazza has
achieved in 2015 as part of its path of sustainability with Sustainability and saw the active involvement of the Companys entire plants: four in Italy (Torino, Gattinara, Pozzilli, Verrs2), one in Brazil identified the contents of its Sustainability Report according to
its stakeholders. organisational structure, as required by the drafting principles of the and one in India. Lavazza has 3,1003 employees, operates in more than the following principles:
Sustainability Report issued as an internal procedure in 2014. 90 countries around the world, covering every continent, through both Stakeholder inclusiveness;
The Report, in fact, is the primary instrument for managing and The contents of the Sustainability Report have been prepared direct subsidiaries and a large network of distributors. Sustainability context;
reporting on economic, environmental and social sustainability according to the latest version (GRI-G4) of the Guidelines Domestically, Lavazza reaches its consumers directly through Key factors;
initiatives. It is also a transparent way to interact with and disclose (https://www.globalreporting.org/reporting/g4/Pages/default.aspx) operators such as large-scale retailers and public establishments. Completeness.
information to stakeholders. drawn up by the Global Reporting Initiative and the related Food Internationally, it is present in various markets through a network
Processing Sector Supplement (Food Processing Sector Supplement of distributors specialised in the at home and away from home In identifying the structure and content of the Report, Lavazza has
Lavazza adopts a strategic approach to corporate social responsibility - https://www.globalreporting.org/reporting/sector-guidance/ channels. Lavazza offers end consumers a vast range of products therefore taken into account its business (analysis of Lavazzas
(CSR), which involves the comprehensive integration of CSR themes sectorguidanceG4/Pages/default.aspx). designed to meet every need both at home and away from home. sustainability context), the interests of stakeholders and their
throughout the value chain. Sustainability, for Lavazza, is therefore an To ensure that figures and information are comparable over time, expectations.
integral part of its core business. The level of compliance with the GRI-G4 Standard selected by the this Report refers to the years 2013, 2014 and 2015. [G4-17]
Lavazza Group is in accordance - Core. To identify the most relevant aspects to include and discuss
This vision requires the adoption of precise, measurable and Quantitative data provided in the document refer to Luigi Lavazza in the Report, Lavazza has:
repeatable key performance indicators (KPI), whose achievement is S.p.A., the parent company based in Torino, Italy, unless otherwise Identified its stakeholders, using the list already available in the
dependent on the involvement of all corporate functions and on the stated. Code of Ethics as reference [G4-25];
definition of guidelines in order to create a systemic process. Examined their expectations and main areas of interest using
Luigi Lavazza S.p.A. includes: Headquarters, Innovation Centre dedicated channels;
With this aim in mind, in 2011 Lavazza adapted to this approach - and Sales & Marketing; Manufacturing plants in Settimo Torinese, Analysed its sustainability context and that of the reference sector,
already adopted by the company in terms of developing a company Gattinara, Verrs and Pozzilli. through benchmarking with its main competitors and analysing
culture - by creating a dedicated position whose task is to define, subject areas considered relevant to the Companys core business;
implement and coordinate company-wide CSR activities focusing on Performed a key factor analysis on the most relevant sustainability
four main areas: the sustainability of the product and of production issues for the company, by assigning a priority to each issue and
processes, and the sustainability of relations with internal and external building a materiality matrix.
stakeholders.
Stakeholder engagement activities carried out in 2015 chiefly
Following in stride was Lavazzas decision to form an Institutional concerned the following categories of stakeholders:
Relations & Sustainability division that, besides managing the set Employees (focus groups and corporate storytelling events were
of tasks assigned to the aforementioned corporate function, also takes organised, which are described in detail in Chapter 5 of the Report);
care of managing the Companys relations with external parties, Consumers (market research was conducted; please see Chapter 3
as well as the projects of Fondazione Lavazza. for more information);
Coffee producers (the Earth Defenders project described in
Chapter 2).
1
The reporting scope of this Sustainability Report has not been amended compared to last years Report. The reporting period chosen in order to ensure that the data of the two years
could be compared and the Reports continuity with the one for 2014 is the three-year period (2013-2014-2015) [G4-22; G4-23].
2
The manufacturing plant in Verrs will be the focus of an industrial plan that will lead to the progressive discontinuation of production (the factory officially shut down in July 2016),
which will be transferred to the Groups multi-functional centres throughout Italy. This decision fits into the Companys goal of rationalising its manufacturing system and has seen
Lavazza invest heavily in the redevelopment of its fully-owned manufacturing plants. The Company shared its plan for the future with local trade unions and institutions, assuring them
that all actions that will help ensure a smoother transition have been taken and informing them that staff currently working in Verrs can be relocated elsewhere within its industrial
system. The stakeholders were also informed that Lavazza has resorted to the Special Redundancy Fund (CIGS) progressively since the second half of January 2016. The manufacturing
plant in Verrs is included in this Report because it has been operative for part of the three-year period (2013-2015).
3
The workforce refers to the Lavazza Group.
10 11
Lavazza stakeholders and main

communication channels
[G4-24; G4-26; G4-27] [G4-24; G4-26; G4-27]
E X A M P L E S O F C O M M U N I C AT I O N C H A N N E L S
Customer Service Clients and consumers Governance bodies Organisation of frequent meetings
Social networks Ethics Committee
Sales network as a channel for reception, mediation
and communication.
Meetings to develop projects that promote sports, Local communities Partners Organisation of events and frequent meetings
culture, support the younger population
and encourage integration.
Events
Meetings to understand needs and discuss problems
Press&Digital Definition of communication strategies

Press releases and PR materials
Media
Blogger relation/Digital PR
Meetings to define and implement Producing Organisation of events and press conferences
sustainability projects
Frequent contacts to shape quality standards
communities Scheduling of coordination of interviews with
the Board and Top Management of Lavazza
Frequent interaction to discuss coffee purchase
Coordination of international Public Relations
Meetings to update about problems tied with
coffee production
Human Resources Training programmes

Leading Change
Frequent meetings Suppliers Coffee Telling (sharing leadership stories)
Visits on site Focus Groups and Welfare Plan
Improvement plans Co-designing of spaces in new HQ
Sharing the Supplier Code of Conduct and Code of Ethics Sharing of Employee Code of Conduct and Code of Ethics
Participation in international round-tables National/international Trade unions/ Frequent meetings to discuss the Groups position
Events Meetings to negotiate on corporate issues and within
Frequent focus meetings
institutions, industry associations
the manufacturing plant, developing the variable element
non-governmental agencies of wages as a tool to promote better results
and local institutions Relations with and participation in trade association activities
System of industrial relations as a support to growth
12 13
Materiality matrix HIGH

[G4-19; G4-20; G4-21; G4-27] [G4-19; G4-20; G4-21; G4-27]
Customer Health and Safety
Quality of Green Profitability and economic value

Coffee
Occupational Health and Safety
RELEVANCE FOR STAKEHOLDERS

Valorisation of Human Resources
Initiatives for coffee producers
Measuring and satifying Customer Satisfaction
Waste Management
Relationship with suppliers

Packaging
and partners
Community
Engagement
Enlarged area Consumption of natural resources
Production
of certified coffee
MEDIUM
Climate Change
Water Footprint
RELEVANCE FOR THE COMPANY RELEVANCE FOR THE COMPANY
LOW MEDIUM HIGH
Assurance Process
The graph shows the sustainability issues that are The Sustainability Report of the Lavazza Group has The results of their audits are contained in the
considered essential to the Company (horizontal axis) been reviewed in part by PricewaterhouseCoopers auditors report at the bottom of this document.
and to its stakeholders (vertical axis). The quadrant Advisory S.p.A.4 .
in the upper right shows the key issues, i.e. most
significant for the Company and its stakeholders.
4
Luigi Lavazza S.p.A., following a call to tender chose PricewaterhouseCoopers Advisory S.p.A. (PwC) to audit its Sustainability Report. The top management of Lavazza is involved
in the assurance process by conducting individual interviews.
14 15
Lavazza Sustainability Report 2015 Ch. 1`| Luigi Lavazza S.p.A. Tradition, evolution and revolution

Tradition, evolution and revolution
16 17
Over the course of 2015, Lavazza continued pursuing

its path towards sustainability, an issue that has
become one of the Companys key areas for strategic
development.
1.1 2015: the year of sustainability

In this context, Lavazza aims to be credible and consistent in its statements
and intentions, acting as a first mover and a benchmark for best practices when
it comes to sustainability.
To further emphasise this aim, the report opens with an overview of a series
of special projects commenced and completed in 2015, which for Lavazza can
be referred to in all respects as the year of sustainability.
18 19
Evolutions and revolutions The futuristic Lavazza Innovation

Center is established at the
March: Lavazza introduces the
compostable capsule developed (in
10
factory in Torino cooperation with Novamont) at the
20
Sustainability Hub in Milan, venue chosen
for the development of the Companys
CSR activities during Expo 2015
Lavazza Lavazza decaffeinated Paulista - the first coffee
introduces coffee (originally to be packaged Lavazza starts May - October: Participation at EXPO,
the innovative called Dec and then in a tin - is launched research to design where Lavazza receives the Towards
vertical changed to Dek in a compostable a Sustainable Expo - A legacy for
07
processing 1961) is launched capsule Sustainability award as leader in Food
20
method
e Green Procurement
Luigi Lavazza creates 12.44 p.m. May 3, 2015: Thanks to

the first coffee blends Lavazza launches A Modo Mio, ISSpresso, the first coffee is enjoyed on
a new automatic espresso the International Space Station and
machine designed for home use the first experiment in fluid dynamics
is conducted to study the behaviour
of liquids under high pressure and
47
57
59
temperature in space
19
19
19
60
2015
10
14
19
23
20
20
The manufacturing
19
plant in Torino is
65
opened, at the time the

largest single-product
19
factory in Europe Lavazza wins the tender to be the May: As part of the merger of D.E
official coffee of the Italian Pavilion Master Blenders and Mondelez
10
at the Universal Exhibition in Milan International, Lavazza presents an

offer for the Carte Noire and Merrild
19
Lavazza is the
brands and for the license of the
first coffee
Senseo brand in Austria
manufacturer The Luigi Lavazza The Automatic The first
to draw up a real Coffee Research Distribution division Lavazza
September: Lavazza acquires the
brand strategy and Study Centre is is launched, with Calendar
distribution network in Australia from
in Italy established the single-serving is published
a local partner
Espresso Point
capsule system
September: Lavazza completes the
acquisition of Danish brand Merrild
30 September - 1 October: The first
04
03
9
89
93
71
In partnership with Argotec, Global Coffee Forum

7
20
Lavazza develops ISSpresso, the is held in Milan thanks to Lavazzas
19
20
19
19
19
19
first espresso machine that can contribution, an international event
work at zero gravity dedicated to all Coffee-Lovers
December: Lavazza participates in

the International Conference COP21,
Lavazza launches prepackaged where it presents the compostable
coffee using Pergamin, a An innovative Internationalisation Lavazza BLUE marks Tierra! makes its capsule and its new partnership with
package composed of two vacuum-packed begins with the a watershed moment debut: a high-quality Shamengo.
layers of paper, to keep the bag is introduced establishment of the in automatic distribution coffee resulting from the
original flavour of the coffee alongside the tin French subsidiary with an innovative companys first
untouched extraction system independent CSR project
20 21
Lavazza Sustainability Report 2015
Expo
During the 6 months of Expo 2015, of steaming coffee welcomed visitors Expos success, with 21.5 million
Milan was the centre of the World. and wafted across the Hall. From tickets sold, was a success also for
As the official coffee of the Italian Terrazza Martini to restaurant Peck, Lavazza and offered the opportunity
Pavilion, Lavazza was involved but also in the Coop supermarket to use a global platform to present
in this remarkable event, which of the future and at the two Eataly itself as a benchmark in the
revolved around the theme of Feed stands Caff Bar Vino Libero, as well field of sustainability, innovation
the planet, Energy for life. as in several other Halls. and quality, both nationally and
internationally.
All throughout the Expo, the aroma of At Expo, Lavazza offered visitors
Lavazza coffee spread from Piazzetta 100% sustainable !Tierra! coffee
del Caff at the Italian Pavilion, and a selection of exclusive recipes
designed by renowned architect prepared by the Lavazza Training
Fabio Novembre, where a huge cup Centre.
Towards a sustainable Expo
Lavazzas commitment in the field of CSR was recognised by other initiatives or special projects), recovering and cataloguing all
the Programme Towards a Sustainable Expo A legacy for
Sustainability. In this Programme Lavazza was recognised as the
the documentation of the supply chain and certifications, starting
from the raw materials through packaging and all the way to the final
EXPO 2015:
leader in the areas of Food and Green Procurement, in the presence products. Lavazza official coffee
of the Commissioner for EXPO, Giuseppe Sala, and the Minister for the
Environment, Gian Luca Galletti. The leadership recognised to Lavazza and confirmed by EXPO of the Italian Pavilion
and the Ministry for the Environment (with which Lavazza
The work carried out by Lavazza was made possible by its collaborates in defining the standards for the quantification
collaboration with partners and suppliers, which helped meet of the environmental impact of the coffee manufacturing processes),
all the requirements laid down in the rules defined on the basis of confirms the soundness of an aim that considers economic,
the programme, drawn up by the Ministry for the Environment environmental and social sustainability as a synergistic whole whose
(Sustainable Architecture, Food & Beverage, Green Procurement, parts reciprocally feed on each other.
22 23
Lavazza Sustainability Hub
During the Expo, the Sustainability Hub located in Cascina The Hub also hosted 5 conferences concerning the circular
Cuccagna di Milano was the centre of all the Companys economy along with Novamont and the University of
endeavours in terms of sustainability. A greenhouse dedicated Sustainability, with international speakers selected from among
to sustainability was built according to the canons of sustainable the most prominent names in the world of environmental
architecture by Lavazza and Novamont, a company with which economics.
Lavazza developed its first compostable capsule of Italian espresso.
Within the Sustainability Hub, in addition to the launch of the

compostable capsule, Lavazza presented the Sustainability Report
2014 and celebrated its 120th Anniversary.
The location also hosted the presentation of the Slow Food Planet
app, the launch of the Etigua coffee blend (for details see
Chapter 4) and the presentation of the Lavazza Calendar 2016.
During the Expo, the Sustainability

Hub was the centre of
all the Companys endeavours
in terms of sustainability
24 25
2015: the internationalisation process at Lavazza

In addition to being the year of Carte Noire, a company with a long The scope of the acquisitions
sustainability, 2015 also provided history of quality and innovation of Merrild and Carte Noire
remarkable opportunities for and Frances leader in the retail incorporated what can be referred
Lavazza to grow and expand market with a market share of to as local jewels, with a very
its business. 20% (by volume). Thanks to this strong brand awareness, and
acquisition, France, where Lavazza represent milestones in the Groups
In September 2015, Lavazza was already second in terms of international growth strategy,
concluded the acquisition of market share in the food service with the ambition (at a time when
Merrild, a leading brand in the retail industry, became the second the coffee market is gradually
sector in Denmark and the Baltic largest market for Lavazza after consolidating) of playing an
countries. Italy when it comes to retail sales, increasingly important role among
with more than 300 new employees the big industry leaders, while
Also in September, the Group took that became part of our family. at the same time preserving the
over the distribution of its products identity and the values that have
by its local partner in Australia, The agreement with the Group always distinguished Lavazza.
where it already held a significant Jacobs Douwe Egberts (JDE), which Thanks to these recent acquisitions,
market share, establishing a new led to the acquisition of Carte Noire the Company now ranks sixth in the
branch in Melbourne. following approval by the French world in its industry, with over
Competition Authorities and the 50% of its sales from abroad.
Finally, 2015 was the year when European Commission, initiated
Lavazza embarked on a path that a process of sharing and
on February 29, 2016, led to the consultation with workers
acquisition of the French brand representative associations.
20% Carte Noire, Frances leader in the retail market with

a market share of 20% (by volume)
26 27
From coffee grounds to edible mushrooms
Since 2008 Lavazza, with partners of following a procedure tested in France by

excellence such as the Politecnico di Torino, Upcycle, which allowed for every pound of
the University of Gastronomic Sciences coffee grounds to create 300 grams
of Pollenzo and Novamont, has been of edible mushrooms.
working on analysing coffee grounds,
finding that their composition can trigger Another important goal of the project was
a regeneration process that gives birth to foster training by hiring disadvantaged
to new materials such as polymers, inks, people assigned to the preparation of the
wood, paper and edible mushrooms. substrates and the care of experimental
Compostable capsule The latter come to life from waste espresso,
becoming a source of protein with high
cultivation, under the professional
supervision of an experienced agronomist.
nutritional value, as well as a low-cost food.
The result was surprising: since September
On March 3, 2015, the Lavazza strict observance of the scientific waste products within an industrial This is the principle that has guided 2015, 1,500 kg of Lavazza coffee grounds
Sustainability Hub was the venue method that fosters innovation sector into a raw material that can be the pilot project that Lavazza launched were collected and 150 kg of mushrooms
chosen for the presentation of the by testing and trials and above all, used in another production cycle. in 2015 with Novamont and in partnership (Pleurotus ostreatus) of excellent quality
Italian espresso compostable capsule an ideal container for coffee that with AMSA, the Milan City Hall and the were produced (with a protein content
in Mater-Bi, manufactured in as always is excellent. social cooperative Il Giardinone. higher than that contained in other
The new compostable capsule,
The opportunity offered by the universal mushrooms cultivated according to
collaboration with Novamont. therefore, not only presents exposition in Milan could not go wasted. standard methods).
The innovative capsule offers a an opportunity to embrace an
As described in the Sustainability concrete and tangible sign towards a eco-friendly lifestyle that does not So it was, then, that from Piazzetta del Moreover, using the exhausted substrate
Report 2014, this object of a few sustainable business model. affect the environment, but also a Caff in the Italian Pavilion at Expo, all after the cultivation of Pleurotus,
square centimetres in diameter In fact, it can be harvested moist way to contribute to its development. coffee grounds collected by AMSA returned the mushroom scraps were in turn used as
to city to be handed over to the care of Il a fertiliser for the production of salads, with
is not only an innovation in terms and undergo composting, a process
Giardinone and then be transformed into a a yield equal to twice the number
of material, but harbours an in which the capsule and coffee resource, in what represents a remarkable of products on the market: an example
extraordinary iconic value that aptly grounds are transformed into process of circular economy. of perfect circularity.
captures Lavazzas several centuries compost for the soil. This triggers
of history, its pioneering spirit, a virtuous cycle that transforms Once delivered, the coffee grounds were
mixed with spores and other natural
ingredients and placed in special storage
containers resistant to vertical farming,
In a few months
the compostable capsule
becomes compost
28 29
Espresso conquers space Cappuccino Bite
Coffee calling Earth: at 12:44 p.m. of engineering company specialised the same Lavazza coffee blends
May 3, 2015, the first espresso was in the design of Italian aerospace available on planet earth, has Another product born out of the
enjoyed in space. A long nurtured systems and European leader in the been designed and manufactured collaboration between Lavazza and Argotec
desire finally achieved thanks to preparation of healthy, nutritious to ensure the same quality of an is the Cappuccino Bite, the first cappuccino
conceived to venture into space.
ISSpresso, the first capsule espresso foods to be eaten in space, as part authentic Italian espresso: creamy,
machine capable of working in the of a public-private partnership with full-bodied and with the right aroma Cappuccino Bite is also the first cappuccino
extreme conditions of space, which the Italian Space Agency (ASI). and temperature. The beverage was that (as the name says) you bite, thanks to
was installed on the international dispensed in microgravity conditions the reinterpretation of the lyophilisation
space station by Samantha Operations in support of the while preserving all the properties process applied to a frothy coffee with milk
and sugar. The result is a solid, foamy
Cristoforetti, an Italian astronaut of experiment were followed by of Italian espresso.
and light cappuccino without any flour or
the European Space Agency, captain Argotecs control centre and eggs, in compliance with the required safety
of the air force involved in Futura, monitored by those of the Italian parameters for food in space.
the second long-term mission of the Space Agency. The first espresso in
Italian Space Agency on the ISS. space was enthusiastically received In addition, Lavazza always has taste in
The ISSpresso project was brought by the crew of the Futura mission. mind besides innovation. Cappuccino Bite
is therefore delicious, rewarding,
to life by Lavazza and Argotec, an The ISSpresso machine, which uses an explosion of taste that can provide
a nice break from the charming loneliness
of space.
Because of these special properties ESA,
12.44 p.m. the European Space Agency, chose

Cappuccino Bite to accompany astronauts
May 3 during space missions in Europe, offering

them an exceptional and original taste
2015
the first espresso
with each bite taken from an authentic
cappuccino.
was enjoyed in space
30 31
Lavazza Calendar
The Lavazza Calendar 2016 the dream of creating a complete it by all means was an appeal to all
From Father to Son, designed and family-run manufacturing those who share the principles and
in collaboration with Slow Food process. Portrayed on a truck while values of sustainability promoted
and under the creative direction his father Isauil hands him a bag of by Lavazza and Slow Food, and a
of Armando Testa, brings out the coffee: a gesture that symbolises the concrete show of support to Terra
rituals and customs of the new generational change. Madre Giovani We Feed the Planet,
generation of Earth Defenders. an event dedicated to the future of
Modern heroes of the Earth who, The photographer who took food and the planet organised by
thanks to the teachings of the the picture is also young, the the Slow Food Youth Network, with
Fathers, feed on the planet in a fair 26-year-old Canadian Joey L. Lavazza in the vest of Official Partner.
and sustainable way. In a series of 13 snapshots, he
captures portraits of young men Old and new generations
Like the young Dali for instance, and women along with their represented while hard at work
who is 27 years old, produces chilli Fathers who day by day, thanks to and learning, in their natural
in Mexico and is overseeing the the teachings handed down from settings, in their desire for change,
Mopampa, a project designed and generation to generation, defend but always with a sense of devotion
developed by her mother and which biodiversity, plants and crops without to their traditions.
has allowed women to emancipate wasting resources, for the benefit of
themselves economically and to the local community.
enhance their role in society.
The Lavazza Calendar 2016 is a
Or like Anderson Ricardo Silva, who tribute to these heroes of our time.
is 33, lives in Brazil and works to fulfil Presented in the year of the EXPO,
32 33
Lavazzas participation in COP21 together with

partner Novamont brought the Italian bio-economy
in the spotlight
Global Coffee Forum
COP21
Participation in COP21, the for the first time in over 20 years of partnership with Shamengo, the Two days of debate and discussion about awareness about coffee and the thanks to the contribution of Lavazza and
International Conference on climate mediation by the United Nations non-governmental organisation the world of coffee and its virtues. The first manufacturing process, from the bean Illy and saw HOST 39th International
Global Coffee Forum, an international event to the cup, as well as encourage further Hospitality Exhibition and Oxfam as Special
change of the United Nations, that would involve all countries. that aims to research, support and dedicated to all Coffee-Lovers, was held on discussion on the topic of coffee and Partners.
was another key event that closed The result of the Conference develop solutions for a future that September 30 and October 1, 2015 at the health.
Lavazzas year of sustainability. The was the negotiation of the Paris is more and more environmentally Auditorium of the Congress Centre Stella The two days were attended by
Conference, which was held in Paris agreement, a global agreement to friendly. This served as an Polare of Rho-Fiera Milano. On October The project, promoted by the International international guests from the world of
from November 30 to December 12, tackle climate change, which sets opportunity for Lavazza to confirm 1st, the work of the Global Coffee Forum Coffee Organization (ICO), the Ministry of culture, research and entrepreneurship.
coincided with the first International Agriculture, Food and Forestry, the Italian
2015, 23 years after the signing of the goal of limiting the increase its commitment that sees it involved
Coffee Day promoted by ICO. Coffee Committee, Expo 2015 and Fiera
the framework agreement for the in global warming to less than 2 in an intense activity of research The goal of the event was to raise Milano Congressi, was made possible
protection of the atmosphere, was degrees Celsius (C) compared to and innovation aimed at developing
attended by about 195 countries pre-industrial levels. sustainable solutions that are
and over 50,000 people, including inspired by the philosophy of a
delegates of Member States, Lavazzas participation in COP21 circular economy.
observers, NGOs, media and civil together with partner Novamont
society representatives. brought the Italian bio-economy
in the spotlight. The two Italian
Its aim was to reach a binding and companies, in fact, presented the
universal agreement on climate compostable capsule and their
34 35
1.2 Growing economic engagement in sustainability
7
million euros of
investments in
sustainability
To provide precise answers to the growing expectations million in 2013 to 5.8 million euros in 2014, and up
of the several markets in which Lavazza operates, as to 7 million in 2015, demonstrating the strategic
well as potential ones, its economic engagement in importance that sustainability has for the Group5.
sustainability in the period 2013-2015 rose from 4.1
7,0 million
5,8 million
5
Lavazzas financial commitment to sustainability refers to expenditures
2015
incurred in the following areas: CSR, membership fee due to the Institute
for Scientific Information on Coffee (ISIC), consumer health and safety,
responsible management of the supply chain, Fondazione Lavazza,
4,1 milion
free supplies, environmental costs, sustainable coffee-pod redesign, 2014
packaging, environmental sustainability projects and eco-design.
36 2013 37
Corporate governance
1.3 Business values, value of the business
The synergy between the economic a grand appearance at Expo 2015 In a desire to share its system In Lavazza, the solidity of a family-run governance supports of the provisions of the Decree, the Model and/or the Code
strength that has distinguished as Official Coffee of the Italian of corporate values with internal an industrial approach geared to creating value not only in the of Ethics, as well as any specific offences of which they have
short-term but in the long-term as well. This method allows knowledge.
Lavazza in 120 years of business Pavilion with its product proving and external stakeholders, Lavazza the executive team, to which the owners in recent years have
and its system of corporate one of the most popular symbols of condensed them in the Groups entrusted the definition of the corporate strategies to develop To ensure they do, the Company has established a communication
values (passion for excellence, quality made in Italy, and focusing Code of Ethics published on the and expand corporate business, to come up with an action-plan channel for employees to report to the Supervisory Board i.e.
team spirit, a sense of belonging, on Lavazzas distinguishing traits intranet and on the corporate in the medium and long-term so that the Company may continue a dedicated e-mail address (Organismovigilanza@lavazza.it)
transparency, integrity6 and of excellence: website (www.lavazza.it/it/ to grow significantly as a global player in the industry. made known to all staff so that they may submit reports of possible
breaches and access to which is limited to the sole members of
foresightedness) allow the Group to mondo_lavazza/ethics.html).
The corporate governance model adopted by the Parent company the SB. This method for reporting infractions is meant to ensure
have a comprehensive approach to Innovation, research and The Code of Ethics also forms an is traditional and includes a Board of Directors, chaired by Alberto the highest level of protection to reporting person(s) from
Sustainability. sustainable growth, with integral part of the Code of Conduct Lavazza and a Board of Auditors, chaired by Gianluca Ferrero. retaliation or any other form of discrimination toward them,
the presentation of the first for Employees as well as all The central body in the governance system is the Board of or detriment. The Supervisory Board acts to ensure that anyone
2015 was one of the most Sustainability Report, the launch contracts with suppliers. A Supplier Directors, which has all-encompassing powers to set the who submits a report is protected against any form of retaliation,
important years in the history of the first compostable capsule Code of Conduct7 is also distributed strategic focus in order to ensure the Groups proper and efficient discrimination or detriment, or any consequence arising from the
management. In addition to the Chairman, other members of report, assuring them the utmost secrecy as to their identity and
of Lavazza. After 120 years, the and the first espresso to be drank that pinpoints the values that the Board include Vice-Chairmen Giuseppe and Marco Lavazza, without prejudice to the obligations of law and the protection of
Company has reached the status in space; should guide relations between Managing Director Antonio Baravalle and Directors Antonella the rights of Lavazza Group companies, or persons falsely accused
of one of the most credible brands Lavazza and its suppliers. Lavazza, Francesca Lavazza, Manuela Lavazza, Pietro Boroli, and/or with ill intent.
worldwide; thanks to a vision, Culture, thanks to the partnership Gabriele Galateri di Genola, Robert Kunze-Concewitz and Antonio
that dialectically unites tradition with the Guggenheim Museum of Marcegaglia. The Internal Audit function carries out activities specifically
aimed at analysing and assessing the appropriateness,
and innovation. The opening New York and the network
The task of the Board of Auditors is to monitor and ensure consistency, reliability and efficient application of internal
of a subsidiary in Australia and of Venetian civic museums; compliance with the law and corporate by-laws, respect for administrative procedures (in terms of simplification,
the negotiations for the two the principles of sound administration and, in particular, optimisation and fairness of the processes), with a view
acquisitions of Carte Noire, a leader Sports: Lavazza is now a partner an appropriate internal auditing system. to an efficient business management.
in the coffee market in France of the 4 Grand Slam tennis
and Merrild, the leading brand in tournaments; A key role in corporate governance processes is covered by the
Supervisory Board, which has independent powers of initiative
Denmark and the Baltic States, have and control and whose task is to supervise enforcement and
projected Lavazza into the elite Communication, with an compliance with Lavazzas Model of organisation8, management
pantheon of global corporations. international campaign involving and control, as required by Legislative Decree No. 231/2001,
the main countries of the world and as well as to update the Model and by Internal Audit, which
The Company also strengthened the Lavazza Calendar dedicated answers directly to the Board of Directors and is responsible for
implementing an effective auditing system within the Company.
its international visibility by making to Earth Defenders.
The recipients of the organisational model must inform the
6
In the period 2013-2015 only penalties for fiscal matters have occurred, arising from disputes with the Italian Finance Police, inspections carried by the Italian Revenue Agency Supervisory Board of any conduct that would construe a violation
or voluntary compliance, and for administrative reasons. For the three years of analysis the total amount of these penalties is approximately 78,962 Euro.
7
Lavazzas Code of Ethics and the Supplier Code of Conduct have been drawn up with reference to:
International Labour Standards (ILO) http://www.ilo.org/global/topics/lang--en/index.htm 8
Lavazza has developed a Model of organisation and control under Leg. Decree No. 231/01 last updated in 2014, in order to incorporate and regulate possible cases of briberies
UDHR (Universal Declaration of Human Rights) http://www.un.org/en/documents/udhr/index.shtml. between individuals. This model is accessible to all employees, as it is published on the corporate intranet.
Over the three-year period, all suppliers have endorsed the Supplier Code of Conduct when agreeing to the terms & conditions of purchase and/or conclusion of contracts/
purchase orders and/or by registering on Lavazzas online supplier platform.
38 39
Luigi Lavazza S.p.A. brands sold in Italy
Single Serve Roast&Ground

A MODO MIO, ESPRESSO POINT, BLUE, IN BLACK, 120 ANNIVERSARIO RETAIL, BOURBON CLASSICO,
FIRMA CARMENCITA, CLUB, CREMA & GUSTO CLASSICO,
CREMA & GUSTO DOLCE, CREMA & GUSTO ESPRESSO,
Food Service CREMA & GUSTO ESPRESSO FORTE, CREMA & GUSTO
120 ANNIVERSARIO FS, ESPR.CREMA E AROMA FS, FORTE, CREMA & GUSTO RICCO, DEK, DEK INTENSO,
BLUE VERY B MAGNIFICO, BLUE VERY B SUPREMO, ESPRESSO FAMIGLIA, GRAN AROMA BAR, GRAN CREMA
BLUE ESPR. ROTONDO, BLUE ESPR. DECAFFEINATO, ESPRESSO, PAULISTA, QUALITA ORO, QUALITA ORO
BLUE ESPRESSO DOLCE, BLUE ESPR. INTENSO, ESPRESSO, QUALITA ROSSA, SUERTE, SUPERESPRESSO,
BLUE ESPR. RICCO, BLUE ESP. TIERRA INTENSO, TIERRA e XLONG.
BLUE ESPRESSO VIGOROSO, DEK BAR, TOP CLASS,
GRANDESPRESSO, GR.ESPRESSO T.SCURA, OROPURO,
GRAN RISERVA, PIENAROMA RA, SUPER CREMA, GOLD
SELECTION, SUPER GUSTO, GRANDE RISTOR. ROSSO,
TIERRA 100% ARABICA SELECTION, KAFA, NERO
SUBLIME RA, TIERRA BRASILE 100% ARABICA,
TIERRA BRASILE BLEND, TIERRA TANZANIA
40 41
Ch. 1`| Luigi Lavazza S.p.A. Tradition, evolution and revolution
Partnership network
+4,2%Energy, packaging and waste reduction

in 2015 compared to the total industrial
production costs of 2014
Sustainability as an opportunity to create value

rt
O
po
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n,
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pe
:
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am
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ltu
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Sl
ug
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For Lavazza, sustainability also the opportunity to plan further This resulted in lower
Fre edo
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O
means making a return on investments with a sense of consumptions of energy and
Yo
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investment repeatable in the long confidence. This represents a packaging materials and less waste
lia
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term: the levers that guarantee cultural leap, a new and broader and scraps, with a cost saving
72 th
tr
seu
s Ve
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Ca I
ms
the profit margin can be repeated way of viewing sustainability as of 4.2% in 2015 compared to the
en
na
FA Rea
rig
Juv
ria
na
no consistently over time must also an opportunity to create value total industrial costs of production
le
be sustainable. Investments, and where the entire chain, from in 2014. The savings generated will
Fashion for de
an d n o n -p ns
3 0 0 c h a rit t
o r g a nis a t
particularly in industrial assets, the processing of raw materials be reinvested in the continuous
M o re th es
ndus ood chain

Oxfam
s u p p o rt
For solidar
brand equity, human capital and to the finished product, is called improvement of the Companys
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of i v e r s i t
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AIIPA
product and process innovation, upon to invest part of the margin it manufacturing processes, leading
Po
Un
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Save
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need to generate resources generates in Sustainability. to a gradual reduction of their
erati
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ef
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Fo
ity
the
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si n to finance the investments environmental impact.
e fo of th
Ag ri b u r m,
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Chi
Slo
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p la t
c ni
co ffee
themselves. All of this generates a Between 2014 and 2015, Lavazza
ldre
P o li t e i n o
od i
Co
r
of To
r th ion
n
sustainable context in which both has continued to invest heavily in

an
pe
Fo otect
ro
the Company and stakeholders improving the efficiency of

Eu
Sl
ow
Fo nt
od an mo benefit from the results, creating its manufacturing processes.
pr
f Mil Nova
IC
P University o
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Co ee
ech
Argot
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Institute of Sc ife ali
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For inn
42 43
Lavazza Group - financial-economic trend k 2015 2014 2013
Direct economic value 2.323.046 1.405.637 1.361.904

During 2015, the Group continued to implement its strategic plan This contraction is due chiefly to the increase in the cost of sales
to achieve organic growth that involves focusing on specific markets (in particular the cost of green coffee, owing also to the Companys a) Revenues 2.323.046 1.405.637 1.361.904
and geographical areas, while at the same boosting inorganic growth hedging operations) and the higher spending on advertising and
through the acquisition of Merrild (market leader in Denmark communication. Distributed economic value 1.477.347 1.229.406 1.246.928
and the Baltic countries) for a price of Euro 51.7 million.
b) Operating expenses 1.193.834 980.152 960.836
The operating profit for the year amounted to 802.1 million, up by
Revenues amount to Euro 1,472.6 million, up by 9.6% compared to Euro 675.4 million compared to Euro 126.7 million in the previous year. c) Compensation & benefits 168.745 153.826 145.763
2014. The increase in revenue is largely due to higher sales This sizeable increase is mainly due to capital gains (Euro 822.8 million
d) Payments to lenders 25.862 14.245 66.106
of packaged coffee (+10%) and coffee capsules (+9%). before taxes) on the sale of all the shares of Keurig Green Mountain
The share of revenues in foreign markets increased from 49.6% in Inc. owned by Luigi Lavazza S.p.A. e) Payments to Public administration 77.654 2.566 1.621
2014 to 52.8% in 2015, thanks also to the added business of Merrild
and the establishment of a new distribution hub in Australia, Important investments were made during 2015 for a total Euro 50.3 f) Investments in the community 3.064 1.621 1.185
furthering the Groups process of gradual internationalisation. million, mainly in industrial plants located throughout Italy, in order to g) Other expenses 8.188 8.493 6.674
The EBIT dropped from 156.4 million in 2014 to 71.7 million in 2015, upgrade them and make them more efficient and safer. This reaffirms
and the percentage impact of revenues also went down from our key presence on the territory to its benefit and that Retained economic value 845.699 176.231 114.976
11.6% in 2014 to 4.8% in 2015. of the community.
The table shows the economic value generated by the business and distributed to the main stakeholders, and the amount
retained within the business.
M 2015 Margins
2015 2014
Incidenze Margins 2013102013
Margins
Incidenze
% % % %
%
The Group retains a solid financial balance with a positive net financial The value distributed to lenders refers to dividends paid to
Sales revenues
1.472,6 100,0% 1.344,1 100,0% 1.340,1 100,0% position at the end of 2015 of Euro 1,351.0 million (up by Euro 1,010.5 shareholders, as the Group funds its business almost entirely
compared to the previous year) mainly due to the aforementioned with own means.
EBITDA 146,7
9,9% 225,8 16,8% 223,5 16,7%
sale of the shares of Keurig Green Mountain Inc.
EBIT 71,7 4,8% 156,4 11,6% 123,2 9,2% The value distributed to Public administration refers mainly
In the three-year period, the Lavazza Group was able to generate to the payment of income taxes.
Profit before taxes 869,2 59,0% 195,2 14,5% 184,4 13,8% growing economic value. This was possible due to the increasing
Operating profit 802,1 54,4% 126,7 9,4% 109,3 8,2% internationalisation and innovation capabilities of the Group, The retained economic value in the three years represents the
compared to a stagnating domestic market. difference between the generated economic value and the value
375,4
Net working capital 274,4 270,0 The direct economic value generated differs from sales revenues distributed. The significant increase in this value in 2015 compared
as it includes dividends received and non-recurring income and to 2014 is determined by the positive effect of the aforementioned
381,5
Net fixed assets 702,1 617,6
expenses. More specifically, if we look at 2015, the reason is ascribable capital gains on the sale of shares of Keurig Green Mountain Inc.
756,9
Total investments 976,5 887.6 to the aforementioned capital gains on the sale of the shares of Keurig
Green Mountain Inc., while for 2014, to extraordinary income because
Net financial position
(1.351,0) (340,5) (387,2) of the changes in the method for quantifying inventories (from LIFO
2.107,9
Shareholders equity 1.317,0 1.274,8
to weighted average cost).
Total sources
756,9 976,5 887,6 The economic value distributed to stakeholders displayed a sharp
increase in the three-year period. More specifically, operating
Investments
102,0 80,2 44,9 expenses include the cost of raw coffee, which is often liable
Workforce 2.598 2.526 3.289 to significant fluctuations in the purchase price. In order to mitigate
the effects of such fluctuations, the Lavazza Group relies on hedging
ROS
5,0% 11,8% 9,3% operations aimed at stabilising its financial performance for the
benefit of the entire chain of stakeholders. The increase in operating
10,4%
ROI 26,8% 20,8% costs in 2015 compared to 2014 is largely due to the rise in the
ROE 38,1% 9,6% 8,6% cost of raw coffee, along with the associated hedges and increased
investments in advertising and communication.
44 45
Lavazza Sustainability Report 2015 Ch. 2 | Sustainability projects in producing countries
Sustainability projects
in producing countries
Fondazione Lavazza
46 47
2.1 Fondazione Giuseppe e Pericle Lavazza
Fondazione Giuseppe e Pericle Lavazza Onlus was first

established in 2004 as a tribute to the second generation
of the Lavazza family.
The purpose of the Foundation members of the Lavazza family Foundations activities and
is to promote and help develop and Professors Giovanni Zanetti, its projects is available in the
solidarity projects in the field of President of the Foundation, dedicated section of the
healthcare and social welfare, and Arnaldo Bagnasco and Giacomo Lavazza website.
for the protection of nature and the Bchi. The Secretary of the
environment, in Italy and abroad. Foundation is Mario Cerutti, Chief
Fondazione Lavazza is formed Sustainability Officer of Lavazza.
by five members, including two A detailed description of the
48 49
1.
Promote gender balance
in family relations
and in the community
2.2 Project overview 2.

Invest in young resources
3.
Food security, i.e. the
through programmes designed promotion of activities aimed
to reverse the tendency to at aiding access to food or the
Projects are primarily designed to producers in setting up and the appropriation of the necessary leave the lands where coffee diversification of production
to improve productivity and running their organisations inputs to farming, access to credit is produced, supporting them
develop the entrepreneurial skills as cooperative associations or or Group marketing. in developing their business
in the coffee industry in their
of producers. To achieve these companies. These, in fact, facilitate In addition to these two main
lands of origin and favouring the
aims, the projects focus on two key access to wider markets, as well as aspects, projects are designed to generational change
tools: spreading good agricultural a host of services that are useful achieve other objectives such as:
practices and providing support to improving production, such as
4.
Reforestation
5.
The spread of farming methods
geared at minimising
environmental impacts
caused by the production of
coffee
The projects focus on two key tools: 6.

1. spreading good agricultural practices
Local implementation finally, is a hallmark of the Foundations
2. providing support to producers in setting up and running their organisations projects and guarantees an authentic ownership of the projects
by producer communities
50 51
30.000
direct beneficiaries
2.3 The importance of teamwork 19

projects
The Foundations several years of Lavazza has participated in which calls for the involvement of
experience have shown that relying International Coffee Partners, international organisations, NGOs,
on public-private partnerships a project involving 7 major coffee national institutions and private
in a pre-competitive perspective
makes it possible to boost the
roasters in the world that pursue
Sustainability projects in coffee-
actors. This approach fosters a
leverage effect that multiplies the
11
countries
results of a Sustainability project. producing countries. projects benefits: it is not only
Contributing to the economic, social resources that are pooled, but also
and environmental sustainability of The direct involvement and their skills and experience that
coffee production brings benefits to contribution of producers is crucial boost the impact and amplify the
the whole industry and generates a to International Coffee Partners. benefits gained.
leverage effect that leads to scalable It is necessary, in fact, that they
and impactful results. themselves be actively involved in
improving their living conditions.
It is precisely on the basis of All ICP projects follow a PPP logic
150.000
this approach that since 2001, (Public Private Partnership),
indirect beneficiaries
857
producer organisations created
and/or supported
Starting in 2014, International Coffee
All ICP projects follow a PPP logic Partners has been implementing its
five-year strategy for 2014-2018,
(Public Private Partnership), which calls whose goal is to strengthen regional
for the involvement of international projects. The previous plan reaped 29.870
the following results: hectares of coffee
organisations, NGOs, national institutions
and private actors.
52 53
The challenges that coffee production is facing today have benefited from the technical and scientific
are many, not least those posed by climate change, support necessary to increase the resilience of their
which have a considerable impact on the production production systems to climate change. In order to
of premium quality coffee. It is for this reason that make such a vast know-how available to a wider
since 2010, Lavazza has been a founding member audience, Coffee & Climate has published an online
of Coffee & Climate, a project that aims to provide manual.
coffee producers the technical instruments needed to
respond effectively to climate change. The second phase in 2015-2018 plans to increase the
number of projects to involve up to 70,000 producers.
The first phase of the project was completed
in 2015 and has seen the implementation of 4 In addition to the work done within the framework
COP 21 pilot projects in Central America, Africa and Asia of International Coffee Partners, Fondazione Lavazza
Coffee & Climate was officially presented involving approximately 4,000 producers. The latter carries out projects together with partners such as:
in December 2015 at the United Nations Conference
on Climate change held in Paris.
The project partners, representing approximately

50% of the world coffee business, agreed to promote
a sustainable future for coffee that can respond Hanns R. Neumann Stiftung IDH
effectively to climate change.
Oxfam Carcaf/Volcaf
Slow Food Save the Children
54 55
2.4 Performance in 2015

Donations to the Foundation: Countries
Brazil, Tanzania,
India, Viet Nam,
2.500.000
2015
Ethiopia, Uganda,
Trifinio (Guatemala,
2.000.000 Honduras,
2014 El Salvador),
1.200.000 Peru, Haiti,
2013 Dominican
Republic, Indonesia,
Colombia
Over
14 19
countries projects
60.000
beneficiaries
56 57
2013-2015 projects India (2)
Trifinio (2)
Guatemala
Honduras
El Salvador
Viet Nam (2)
Indonesia (1)
Dominican
Republic
and Haiti (1)
Ethiopia (1)
Colombia (1)
Peru (1) Brazil (3) Tanzania (2) Uganda (2)
58 59
2.5 Focus on some projects of Fondazione Lavazza Colombia

Where quality coffee contributes
to the peace process
Haiti and the Dominican Republic

Coffee on the border with Oxfam
Uganda Starting with 2015, the Foundation has been furthering

Reaching one million farmers a project in Colombia in the town of Mesetas in the
Meta Department.
This land is of particular interest for two reasons:

The quality of the coffee and the geopolitical importance
of the area. In fact, it has been a hotbed of guerrilla warfare
The first year of the project helped create mechanisms in recent decades and since 2013, as part of the national
to foster dialogue and cooperation between project peace process, is part of a programme for the restitution
managers, producers and the State in the Dominican of abandoned land plots to peasant families deprived of
Republic and Haiti. The aim was to come up with a plan their land during the war.
to renew and strengthen the coffee industry by working on Since 2015, the Foundation has been active in Uganda The project fits into the regions economic recovery
the modernisation of plantations, introducing native coffee not only as part of the International Coffee Partners programme that aims at bringing coffee farmers back
varieties that are rust-resistant and with a top-quality cup project, but also by supporting the Sustainable Coffee to the territory.
profile. At the same time, research was conducted on the Program of IDH.
marketing of roasted coffee, a strategy that will help add The project also aims to improve and enhance the quality
value to new production in the near future. Uganda is the second largest producer of African coffee of coffee, maintaining it on a consistent level
after Ethiopia in terms of volumes. The coffee is mostly by applying sustainable farming methods. Another goal
During the first year, 6 million plants were totally produced produced by small farmers, which amount to about is to encourage the exchange of best practices through
and were distributed to roughly 2,000 coffee producers. 1.3 million. About 70% of the exports concern the the provision of training to existing producer associations.
This enabled them to gradually upscale their businesses Robusta variety.
(on average every producer is renovating approximately
30% of the entire property), with positive effects in terms In Uganda, Fondazione Lavazza works alongside IDH,
of resistance to coffee rust. which has developed a national programme aimed
at increasing sustainable production of coffee in Uganda
through the coordination and alignment between
the public and private sectors and the development
of field operations that have an impact on the sustainable
production of coffee.
The goal of IDH with the Sustainable Coffee Program is to

offer strategic support to the development of the Ugandan
coffee industry in terms both of its production and of
higher export volumes, helping communities to tackle
challenges such as income, food security, climate change,
gender equality and the enhancement of young resources.
60 61
The Terra Madre Giovani

commitment
Innovation, quality and sustainability.

The future of coffee in the hands of young
producers.
Enabling young people to come back to

agriculture and land, through education,
Earth Defenders technology and access to finance
The future of coffee in the hands Promote public and private support in
of young producers order for coffee to increasingly become
an instrument for territorial development,
involving all family members
Let coffee production become an

In October 2015, as part of Terra Madre Giovani - opportunity for adaptation to and
mitigation of existing effects of climate
We feed the planet, an event organised by Slow
change on men and nature
Food, Lavazza held a workshop that involved young
producers of coffees from 25 countries.
The event took place within the Sustainability Hub

Lavazza at Cascina Cuccagna in Milan.
The interaction and communication fostered by the

workshops format have allowed players to identify
common challenges that producers around the
world are facing to safeguard the future of coffee
production. The exchange and dialogue has helped
participants define shared priorities based on the
cardinal principles of innovation, quality
and sustainability.
In October 2015,
as part of Terra Madre Giovani,
Lavazza held a workshop
that involved young producers
of coffees from 25 countries
62 63
Lavazza Sustainability Report 2015 Ch. 3 | A passion for excellence
A passion for excellence

Day after day, we pursue excellence with passion, has consolidated its leadership in Italy and on
commitment, determination and dedication. international markets. Customers and consumers,
Also thanks to the contribution of our stakeholders, who are increasingly recognising the value of
with whom we have built relationships based on trust the brand, synonymous with cutting-edge coffee
and our shared values. technology and consistently high quality and food
Thanks to the attention to their needs, Lavazza safety standards, appreciate this effort.
64 65
3.1 Lavazzas approach to quality control

and management of the manufacturing process
At Lavazza, we are well aware that Manufacturing Practices and Implementing a new Auditing
the quality of our organisational the pursuit of uniform procedures Protocol to monitor operations
and manufacturing processes is to handle product claims. both at supplier premises and
essential to ensure excellence in internal manufacturing plants/
coffee production on a day-to-day In 2015, Lavazza also worked on logistics centres by defining
basis. the achievement and consolidation appropriate checklists, a rating
of additional elements to system, a unified reporting
In 2012, to enhance the impact of guarantee the quality and safety of method and a formal method
our activities aimed at spreading the product9, namely by: for the submission of requests
culture of quality and continuous for corrective actions (for further
improvement of products and Issuing the Lavazza Supplier details, please see the next
processes to guarantee the Standard Requirements, which paragraph Monitoring and Audits
safety of consumers, we initiated provides a detailed description on suppliers);
a process of organisational of the standards Lavazza expects
review. This process has included its suppliers to uphold in order Introducing changes to the Food
important steps such as: to guarantee supplies of food Products Development Practices
products and materials, and items and Appliance Development.
The establishment in 2013 that come into contact with food
of the Corporate Quality (both packaging and advertising
Management; material). By endorsing the
Changes in 2014 to the Quality Requirements, suppliers agree to
and Food Security Policy; formally guarantee and ensure full
Release the new edition of Good compliance there to;
9
Between 2013-2015, no cases of non-compliance with Laws / Regulations and voluntary codes concerning health and safety of products were identified
66 67
100% Quality controls on 100%

of green coffee batches
3.1.1 Quality of the raw material

Also during 2015, Lavazza launched launched in 2015 which lays out FSSC22000 at the site of Sri City; Lavazza coffee owes its excellence to the purchase of coffee by far In parallel with the purchasing
a specific project for the centralised the new policy for obtaining and HACCP (according to Codex) at to the Companys complex and surpasses the requirements process, Lavazza conducts
management and monitoring managing product and system Gattinara and Verres; sophisticated Quality system, established by the applicable laws research, testing and
of data from the Groups several certifications which, by applying UTZ at Gattinara; which starts with a careful and standards. The key process experimenting with new potential
production sites, in order to have a a multi-plant logic across the Rainforest Alliance at Sri City; selection of the raw material to the steps include tests on the field and suppliers in order to ensure
tool that would help monitor in real spectrum, it will understand how Confida at Settimo; coffees final tasting by Lavazza procedures for the approval and a stable cup profile.
time the overall level of compliance to best respond to the needs of KOSHER at Sri City. experts. validation on all batches of coffee
of the products with the specific markets and customers. purchased.
requirements and identify trends Significant results have been Coffee purchasing system
that can then be linked to inputs and achieved in this area, further The definition of a well-structured When purchasing coffee, Lavazza
claims from the market. expanding the portfolio of and organised coffee10 purchasing relies on consolidated exporters for
certifications available at system helps to ensure that the most of the volumes, with which
The Quality & Food Safety production sites. More specifically, quality of the coffee is better has a long-standing partnerships
Certification Framework was also the new certifications include: and more consistent creating that guarantee reliable quality and
excellence. Lavazzas approach a low country-specific risk.
In 2015 significant results have been

achieved, further expanding the
portfolio of certifications available 10
The Company purchases green coffee from producing countries and transports it by sea. The product is then kept in stock in a number of Italian warehouses and transported
at production sites to the manufacturing plants for production. The other raw materials come from different suppliers, which are largely Italian. The finished product is manufactured in three
factories located in Settimo Torinese, Gattinara and Verres. Other products sold by Lavazza come from a variety of sources, with a significant component of the machines
produced in China. Distribution is organised with 3 major logistics centres in Italy and a central warehouse for each subsidiary. All transfers between these warehouses are
performed with saturated media and relying on intermodal transport whenever possible. Secondary distribution is entrusted to specialised logistics operators.
68 69
Coffee varieties Processing methods

Coffea Arabica Coffea Robusta Once harvested, the coffee arrives at the DRY SEMI-WASHED WET
processing plant where it is prepared to be
Coffea Arabica is the original species that with its several varieties Native to the Congo basin, the Robusta species is mainly grown in sold on the market. 1 1 1
(Bourbon, Catuai, Caturra, Catimorra, Mundonovo, etc.) currently Africa, Asia, Indonesia and northern Brazil both at sea level and at
accounts for roughly 58% of the entire global production. Native altitudes of 600 metres. The processing methods include:
to Ethiopia, it has fairly flat and elongated-shaped beans of blue- The annual production per plant is slightly higher than the Arabica
green colour. It thrives in soils rich in minerals, including those coffee and resists hot and humid weather conditions quite well, Dry
of volcanic origin located from 600 up to more than 2,000 metres with peaks that exceed 30C. Semi-Washed 2
2 2
above sea level, where the climate is rather mild. Once roasted, Robusta coffee looks full-bodied, with a chocolatey Wet
It is grown mainly in South and Central America, but also taste and a lingering aftertaste.
in some African and Asian countries that produce a variety Robusta beans are round-shaped, gray-green in colour and have
of excellent quality. an average caffeine content of 2.7%. 3
In general, once roasted, Arabica coffee is sweet, fairly full-bodied
3 3
and with a rich and a slightly sour taste.
Average caffeine content in green coffee is about 1.4%.
4 4
1. Ciliegia 1. Ciliegia 1. Ciliegia

2. Essiccamento al sole 2. Spolpatura meccanizzata 2. Spolpatura
3. Decorticazione 3. Essiccamento 3. Fermentazione
4. Caff senza pergamino 4. Caff in pergamino ( acqua per 12-36 h)
4. Essiccamento
5. Caff in pergamino
70
Harvesting methods
1. 2.
Stripping: non perfectly uniform crop
Picking Stripping
Yields a perfectly uniform and selected crop. Harvesters pick only Method used in some countries where the plantations are very
the ripe cherries, detaching them one by one. With the picking extensive and labour has a high cost. Harvesters collect all the
method, harvesters must return on the same plant several times cherries once the average ripening time is complete. It is a faster
until all the cherries have ripened. method, but the downside is that unripe and already fermented
grains are bunched with ripe grains in the containers, at the
expense of the coffees overall quality.
Picking: perfectly uniform and selected crop
70 71
Producing countries The top 4 producers in the world are:
Brazil Viet Nam Colombia Indonesia
Product bags (60Kg): Product bags (60Kg): Product bags (60Kg): Product bags (60Kg):
51.9 million crops 2015/2016 30.5 million crops 2015/2016 13 million crops 2015/2016 11 million crops 2015/2016
Productivity/ha (60 Kg bags): Productivity/ha (60 Kg bags): Productivity/ha (60 Kg bags): Productivity/ha (60 Kg bags):
Arabica: 22 Arabica: 24 Arabica: 14 Robusta: 8
Robusta: 33 Robusta: 43
12% 32%
11% India
Thailandia
Laos
Mexico
Guatemala
45% Malaysia
Vietnam
Indonesia
Honduras
c i fi c
Papua New Guinea
El Salvador
Nicaragua
Ce
a/Pa
Cuba
nt
lA
ra
Haiti
Costa Rica me
As i
rica
Panama
a
ric
ca
Af
r
me
Brazil
Colombia A
Peru South
Ecuador Guinea Camerun Tanzania
Venezuela Liberia C.A.R. Kenya
Ivory Coast Congo Uganda
Ghana Angola Ethiopia
Togo Zimbawe
Nigeria Malawi
In bold: countries where Lavazza purchases coffee Benin Madagascar
72 73
Coffee quality control
Lavazza
standards
Lavazza standards are meant to ensure consistent and uniform

Lavazza checks the quality of all quality that lives up to the high quality benchmarks expected by
the coffee in production, applying the Company and establish a relationship of continuity with the
standard procedures that meet suppliers that is based on respect.
a set of strict quality control and
testing principles, establishing Each standard defines the acceptable limits for the following
the frequency, method for quality parameters:
control and analytical parameters
to be applied to green coffee Number of product flaws Sifter Cup profile Moisture
samples. The Company collects Key production area (if possible).
the coffee grains from customs
warehouses and checks the The standards have been defined for:
following: shape, size, colour, the
presence of any foreign bodies, Brazil, Viet Nam, Indonesia, Colombia, Honduras, Peru,
their chemical and physical Guatemala, Mexico, Costa Rica
properties and the presence
of any chemical and biological
contaminants, the cup profile.
As part of its quality control
system, in 2015 Lavazza conducted
7,113 analyses on raw coffee.
74 75
Quality control system

Raw-material quality control is a foundation for Lavazza On arrival Quality Control System
in guaranteeing the products excellence. The quality On arrival in Italy, the coffee is stored in customs
is monitored at every stage of production: when first warehouses that meet Lavazza specifications and
sourced, on arrival in Italy and in the manufacturing plant. undergoes routine audits, while physical, organoleptic Process stage Control type
and hygienic analyses are conducted for each batch of
At the source purchased coffee. Green Coffee Weighing
At the source, staff checks the products moisture
Destoning
content, applying parameters that are by far stricter In the manufacturing plants, staff again checks
than those established by law (Presidential Decree the coffee to ensure its compliance with Lavazza Removal of foreign objects
No. 470/1973) and that are outlined in the Lavazza standards and further cleans the coffee to remove any Visual inspection
standards. foreign objects possibly still contained in it.
Roasting Time and temperature
Water quantity and quality control for quenching
Final colour of roasted coffee
Grinding Grain size

Density
Color mixture
Finished Product Packaging

Weight check
Oxygen control for cans, paper coffee pods, coffee beans
Search for foreign bodies with X-ray scanner
Physical, microbiological and chemical controls
Panel of expert tasters
76 77
3.1.2 Quality of the manufacturing process
Quality is one of the guiding expertise in managing these into direct contact with coffee,
principles, and this is expressed types of roasting machines, using thereby ensuring total food safety
at the highest level in our specific roasting cycles to bring out for all our consumers.
manufacturing processes. One of the characteristic notes of each
our key manufacturing processes blend. Finally, coffee is vacuum-packed or
is roasting, for which we have packaged in modified atmosphere,
adopted all the best technologies At every stage of the thus ensuring that the valuable
known and available on the market manufacturing process, our organoleptic properties of the
that combine both convection and experts check a wide range of blend are maintained until
conduction heating. product and process parameters, consumption.
including two of the most
These different stages of significant: the colour of the blend
processing allow us to develop and the particle size of the coffee
organoleptic and aromatic profiles powder.
that are unique to each product
type and meet the specific needs of We also submit packaging
our target markets. Over the years, materials to strict tests, with a
Lavazza has acquired unrivalled special focus on those which come
78 79
3.1.3 Certifications 11 Current certifications

Planned for 2016
Planned for 2017
Planned for 2018-2020
Process/Systems Certifications Certifications of a religious nature
ISO:9001:2008 Halal Confida

Quality Management System Muslim Religious Certification Italian Vending Products Standard
Settimo Torinese Settimo Torinese Settimo Torinese

Verrs Verrs Verrs
Gattinara Gattinara Gattinara
Pozzilli Pozzilli Pozzilli : not applicable
FSSC 22000 Kosher - Orthodox Union UTZ Good Inside

Food Safety Management System Jewish Religious Certification Product Sustainability Standard
Settimo Torinese Settimo Torinese Settimo Torinese

Verrs Verrs Verrs
Gattinara Gattinara Gattinara
Pozzilli Pozzilli Pozzilli: to date non requested
Product Certifications
HACCP (Ref. Codex Alimentarius) Rainforest Alliance NOP

HACCP System - International Food Product Sustainability Standard US Federal Regulatory Framework
Standards Governing Organic Foods
BIO
Settimo Torinese European Regulatory Framework Governing
Settimo Torinese Verrs Organic Foods
Verrs Gattinara
Gattinara Pozzilli: to date non requested
Pozzilli Settimo Torinese
Verrs
Gattinara
11
Please note that the factory in Verrs was operational until July 2016. Pozzilli
80 81
75%
kilometres travelled by
intermodal transport, compared
to 61% in 2013
Distribution & Logistics
Lavazzas excellence and quality opting for intermodal transport co-packers. This meant that 3,500
are also reflected in its logistics instead. This aim is also pursued pallets that previously would travel
management system. by establishing solid partnerships back and forth to repackage the
with our suppliers, for the purposes products, were instead entirely
Lavazza coffee is distributed of streamlining transport routes repackaged in the distribution
throughout Italy by 3 central and reducing mileage. More hubs.
warehouses: the warehouse in specifically, when it comes to
Settimo Torinese, from where the mileage travelled towards Lavazza systematically collects and
the coffee is also distributed to countries other than Italy, the ratio monitors its logistics performance
subsidiaries (France, Great Britain, of kilometres travelled by road through a defined set of KPIs,
Germany, Austria, Sweden, USA, compared to intermodal transport which are meant to ensure
Australia), a distribution hub has gone from 39% (road) - 61% completeness and accuracy in the
in Novara and a central hub in (intermodal) in 2013 to a ratio of preparation of shipping orders on a
Milan, from where the coffee is 25%-75% in 2015. customer-service level.
distributed on the Italian market.
The manufacturing plant in If we take a closer look at individual
Gattinara, instead, does not have countries, transport is almost
its own warehouse. The goods from entirely intermodal for coffee
these factories are transported to distributed to Sweden (99%), Great
the hubs in Novara and Milan. Britain (96%) and Germany (96%).
Secondary distribution is entrusted In 2015, as part of the process of

to specialised logistics operators. steadily improving the impact of
distribution and logistics,
As part of its logistics management a number of repackaging
system, Lavazza has aimed at processes for finished food
progressively reducing the number products were incorporated in the
of kilometres travelled by road (at warehouses of Novara and Milan,
any rate, all transport by road takes processes that were previously
place on fully loaded trucks) and carried out at the premises of
82 83
Customer Service
Lavazza and customers about food products in all countries Moreover, Lavazzas Customer Service has started
has always valued are handled according to a uniform system from to handle claims regarding Food Service and
the high quality of its products start to finish (from when the claim is first filed to its Vending Machine products Foreign distributors.
and ensure claims from consumers are settlement). This standardised system will concern This extension allows us to instantly monitor the
processed as quickly and efficiently as possible. the methods/tools for collecting data used both production and marketing of a Lavazza product in
in terms of feedback (including feedback for Italy and abroad, thus ensuring an overall higher
In recent years, there have been changes in the approach customer claims about sustainability issues) level of quality.
of handling claims. Since 2013, in fact, the Company has and the set of corrective actions taken to solve The total number of product claims handled
endeavoured to standardise and classify product flaws between a claim. over the three-year period are summarised
the several corporate divisions involved (Lavazza Customer Service, Contact information handled worldwide will in the table (2,310). The growing trend is due
Quality Management, Lab, Manufacturing plants), developing a also be uploaded and available on a central to the increased focus and new procedures
unique and common language. The result was the definition and database, which will allow a comprehensive introduced to handle claims.
implementation of a new procedure, starting in April 2014. analysis of the data by Lavazzas Customer
Service, in order to ensure the steady
In line with the objectives presented in the Sustainability Report improvement of our quality of service.
for 2014, in 2015 Lavazza also sought to standardise the system
used to handle product claims in every country where it
Once it is received and has been properly
catalogued a claim, Lavazza Customer
The goal is to ensure
conducts business and to centralise data collection. Service proceeds to conduct audits in that all claims
The goal, which the Company aims to achieve
cooperation with Quality Management submitted
by 2017, is to ensure that all claims
and will provide feedback to the end
consumers.
by consumers and
submitted by consumers The possible product flaws are customers about
categorised in a number of
business-specific forms (Retail,
food products
Year Totale Claims
Home Closed System, Food Service, in all countries
2013 429
AFH) or that are shared by the are handled
2014 819
several business lines (reports
of food products that are not
according to a
2015 1062 coffee and regarding the type of uniform
Total 2310
packaging). system
84 85
9
Consumer care 0 5 10
Overall rating of the service
Customer Service, the corporate

function that listens and responds
to consumers, reported more than Customer satisfaction surveys in 2015
450,000 contacts in 2015 alone.
Lavazza also relies on its Customer
Service to process all requests In 2015, Lavazza continued reasons for abandoning telephone interviews and Web
received from consumers asking conducting market research to the system. support (email assisted),
to withdraw their consent to the evaluate the satisfaction of its The research showed that both within 48 hours after
processing of their personal data customers and consumers, identify consumer satisfaction over the contacting our Customer service.
(2013: 770; 2014: 383; 2015: 1,754). their needs and take any corrective last two machines in the range A total of 1197 interviews were
It is with this aim in mind that in action necessary. (Espria and Min) is greater than conducted (898 phone interviews
2015, the Company introduced the satisfaction over older coffee and 299 digital form-based
450.000
a central monitoring system In particular, the Company machines: on a scale of 1-10, the interviews submitted online)
for privacy issues in the several updated its research aimed at score of new machines was 8.50, on a sample consisting of current
countries where Lavazza conducts monitoring certain key aspects compared to a score of 8.28 for customers of Lavazza (75%)
business. In cooperation with Customer Service reported in the relationship between older machines. and potential customers (25%).
Legal Affairs, Lavazza conducted a more than 450,000 contacts consumers and the A Modo Mio The Company also conducted an
in 2015 alone
comprehensive analysis of the laws system, aspects that are crucial analysis to evaluate its customer The research showed that:
on privacy in these countries and in following up the development service (call center), in order
how they are implemented by the of the system on the market to quantify the level of user The main reasons for contacting
Company in each country. (machines and coffee pods). satisfaction. The analysis focused Customer service was to request
on assessing both the overall technical assistance (28%) and
In 2015, Lavazza conducted satisfaction over individual aspects information (27%);
600 interviews online with key with reference to the reasons that
coffee-machine owners divided motivated customers to contact The overall rating of the service
by geographical areas and their the call centre, and whether received is very high: average
senior status rank. Lavazza sent the problem was solved and the scores on a scale 1-10 is 9.01;
them a questionnaire drawn outcome of the request.
up in partnership with Ipsos Customer services ability to
and designed to measure the Quantitative research conducted resolve the problem/reason
total satisfaction with the coffee by GNResearch on behalf of for call during the call was 74%,
machine, use of the A Modo Mio Lavazza was based on information in line with the benchmark (76%).
system (consumption of coffee from the hotlines and online
pods generated), the trend and platforms available to users, i.e.
86 87
Product and
packaging quality
With the aim of continuing

Research on sustainability to pursue product excellence
and supervising all areas of
consumer tastes and organoleptic
preferences, Lavazza conducts
blind sensory analysis to find out
if customers enjoy the new coffee
In 2015, Lavazza began conducting Starting from December 2015, almost all of the population blends offered on the market and
research aimed at measuring moreover, as part of the research (over 70%). However, when to align them with consumer
consumer perception when it on communication and brand people are asked about the tastes, if necessary. As part of this
comes to sustainability. equity, Lavazza introduced a individual structural elements research, 300 to 1200 consumers
system for the routine assessment of sustainability (such as are involved on average in the test.
Lavazza focused on research in the of consumer perception about recycling, reuse, bio-degradability,
compostable capsule market. The environmental awareness and the composability, etc.), their level With the aim of assessing the
Company conducted a conjoint12 Lavazza brands environmental of awareness and knowledge popularity of the pack in terms
analysis to test the potential of a sustainability. The first drops significantly. In the coffee of handiness, aesthetic appeal
compostable product (acceptance, observations by end 2015 showed industry, the concept is geared in and information conveyed by the
intention to buy) with current users that 31% of consumers believe particular to sustainable farming product, Lavazza performs pack tests
as the target and with potential Lavazzas brand is eco-friendly and harvesting and to packaging among consumers who express their
customers to measure their interest and environmentally sustainable. (its reduction and disposal), with level of satisfaction over the aspects
in the new product concept (ability The percentage values show a paper and glass proving the best- described above and whether they
to steer their choice in the purchase significant competitive edge for performing materials. Research are agreeable to them.
of a coffee machine that uses Lavazza over its competitors. also showed that Lavazza,
compostable capsules). The results especially in Germany, has a
show that the introduction of the Finally, in 2015, Lavazza sought good perception as a sustainable
compostable capsule in the current to assess the level of knowledge company.
range A Modo Mio accounts for on the concept of environmental
26% of the purchasing decisions of sustainability and its relevance
current users, while for potential among populations in the
customers, the added option of geographical area of France and
compostable capsules to the product Germany. The research showed
range accounts for an additional that in both countries the concept
share of purchasing decisions of of sustainability in the broader
27.5%. sense of the term is known to
12
This is a multivariate statistical method to determine the best combination of different attributes related to a product or service in a given competitive context. This analysis
allows us to extrapolate the relative importance attributed by the consumer to each of the attributes related to the product/service, allowing us to identify the ideal format for
the product range offered on the market. 300-1200
Consumers involved on average in the test
88 89
Total purchasing expenses

3.2 Responsible supply chain management by geographic area (%)
2015
Key importance of the Italian Lavazza structure the ideal product Companys reputation.
market range to offer on the market. Lavazzas approach to its suppliers
involves their uniform and
Excellence for Lavazza also means More specifically, in 2015 the transparent management and Europe
responsibly managing its supply percentage of purchases from clear communication of their
chain, which largely consists of
local suppliers.
Italian suppliers grew by about 8%. needs and criteria of selection and
evaluation.
9,9%
As the numbers in the table below
clearly show, in spite of Lavazzas Approach to supplier It is with this aim in mind that
increased focus on growth and management and qualification starting from 2012, Lavazza began
internationalisation, the Company to restructure its purchasing
continues to make most of its The aim of Lavazza in managing processes, procedures and criteria
purchases of goods and services its ties with suppliers is to establish applied in the qualification,
(apart from green coffee) from Italian stable and lasting partnerships assessment and monitoring of its
suppliers, consultants and partners. based on mutual trust, aware of suppliers.
the fact that the reliability of the
Feedback from consumers about supply chain is critical both for the
the product/service that helps quality of our products and for the
Purchase of goods and services

2013-2015
(excluding green coffee)
7,6% Italy
Year Total (mln ) Mln % Mln % Mln %
%
2013
2014
346,0
426,0
286,1
347,1
82,7%
81,5%
44,1
47,5
12,8%
11,1%
15,8
31,4
4,5%
7,4%
World
82,5
2015 454,2 374,8 82,5% 44,8 9,9% 34,6 7,6%
Italy Europe World
90 91
3.3 Monitoring and audits on suppliers

In 2015, in line with the goals The audits were conducted in terms of percentage impact of
set out in the Sustainability keeping with Lavazzas Standard the purchase turnover of audited
Report 2014, Lavazza audited Requirements and applying a new suppliers compared to the annual
approximately 60 suppliers of set of methods developed entirely purchasing turnover of the
direct materials, machinery and in-house and for this reason highly category).
subcontracting work. in tune with the needs and context
of the Companys business. For the changes expected in
The audits involved both new and coming years, please refer to the
old suppliers, within the framework The table below shows the results section of the Report that discusses
of a joint programme between achieved, which exceeding the foreseeable trend.
Purchasing and Quality for the the targets identified in the
Innovation programme 110 suppliers were involved in (packaging efficiency, streamlined monitoring of suppliers. Sustainability Report 2014 (in
the programme and made their logistics and simplification of
In 2015, Lavazza introduced the specialised know-how available machines), which will be tested
new Innovation programme that to Lavazza, helping to come and then implemented in 2016,
will reap the first results in 2016. up with roughly 115 product monitoring results over the
re-engineering solutions, use course of the year. Three of the
The programme conceived in 2014 of alternative materials and five winning proposals have an
(for more details on the programmes technologies, streamlined impact on reducing the amount
layout and format, please refer to manufacturing processes and of polluting material used in
the Sustainability Report 2014: insert logistics, and the provision of production.
# kpi Goals Results
link to BdS 2014) aims at developing services.
and introducing technical solutions The suppliers who participated 1 total suppliers of direct materials* 25% 26%
suggested by suppliers to cut down Based on a technical feasibility in the programme will receive
study ahead of the purchase and financial awards or media coverage 1a purchase of direct materials - turnover* 60% 65%
costs and improve the products
* includes: Packaging, Non-coffee
and services purchased in terms factoring the economic impact, for the proposals implemented. Food Products, Corporate Advertising 2 total machine suppliers** 50% 80%
of their performance, quality and 41 proposals were accepted, out materials and products manufactured
by contractors 2a purchase of machines - turnover** 75% 85%
sustainability. of which Lavazza chose the TOP 5 ** includes: closed-system machines,
moulds, components and bar 3 warehouses n/a 94%
equipment
92 93
Lavazza Sustainability Report 2015 Ch. 4 | Sustainability and Innovation
Sustainability and Innovation
94 95
4.1 Innovation as an engine for development

Innovation has always been part of and studies that aim to diversify of all the corporate divisions and
Lavazza history. In fact, it is none the offer to current and potential by pursuing a concept of open
other than the skilful blending consumers and to incorporate innovation whilst analysing
of tradition and innovation that environmental sustainability in our external sources that can provide
sparks Lavazzas development and products and processes13. ideas for improvement and new
proves the key to its success. ideas to be developed.
An endeavour pursued both by
At Lavazza, we pursue innovation internal research and studies
everyday through ongoing analysis carried out with the involvement
At Lavazza we pursue innovation everyday
13
In the three-year period, Lavazza incurred the following costs in the environmental field: 2.1 million in 2013, 2.7 million in 2014 and 3.19 million in 2015.
96 97
Product innovation: the art of blending
Lavazzas expertise in the preparation of quality coffee blends Slow Food areas. These are part of a cultural and social project that
gained over the years, combined with research in the field of sensory aims at fostering a new awareness around coffee, with the ultimate
experience, which aim to enhance the characteristics of the country goal of shortening the supply chain and of improving the quality
of origin, creates the Single Origin. Products that are one-of-a- of living of coffee producers, while affirming a new paradigm of
kind as single origin coffee blends of 100% Arabicas coming from coffee production that centres on the development of the area and on
geographical areas where the territorial conditions and climate give responsible consumption.
the individual beans distinct aromatic notes combining sensory
properties and elements of social sustainability. In fact, one of the In the Slow Food areas where Etigua comes from, Lavazza works hard
components of the precious Single Origin blend is produced in areas to enhance the quality and increase the yield of the finished product,
where Lavazza has introduced sustainability projects that aim to supporting and improving the conditions of local producers and
improve agricultural productivity and the dissemination of good safeguarding the territory.
manufacturing practices. Therefore succeeding in finding the best
way to respond to the needs of the local communities. Single Origin and Etigua are two excellent examples of Lavazzas
commitment in creating unique blends that are responsible and
The same philosophy underlies Etigua, a coffee blend sold to sustainable.
customers in Italian and English markets since April 2015.
The name hints to the origins and provenance of this unique blend
made with wild coffee from the Harenna forest in Ethiopia, and the
coffee of the Highlands of Huehuetenango in Guatemala, two official
98 99
Patent portfolio Patents deposited in the last three years

and broken down by category
428
Lavazza is wholeheartedly committed to introducing is also proven by the Companys substantial efforts to
product innovations with the aim of satisfying the disseminate and protect its intellectually property. 16
growing expectations of its customers in a prompt and Lavazzas patent portfolio consists of 428 titles of 14
efficient manner. Over the years, coffee consumption has intellectual property protection (352 invention patents, 73 12
considerably increased in an ever-changing and multi- designs and models, 3 utility models) officially recognised 10
cultural environment. This implies the growing need for in Italy and abroad, and of 328 pending patent intellectual property protection titles 8
Lavazza to offer a more and more broader and diversified applications, including 8 new applications filed in 2015. 6
other
328
product range on all markets. system 4
acknowledgement
2
design
The ability to create value in key territories and for organic 0
our stakeholders by strongly focusing on innovation pending patent applications 2013 2014 2015
100 101
4.2 Our commitment to

environmental sustainability
Global warming is one of the and redefining performance The tool used, which has obtained our sustainability approach,
biggest modern-day challenges we indicators and parameters to come scientific and international Lavazza is firmly convinced that
all face. There is a need to ensure up with a roadmap for a progressive recognition, is the Life Cycle close cooperation with research
the welfare of all human beings environmental strategy. Assessment (LCA) that assesses institutions and partners is essential
relying on the resources available, the environmental impacts of the to share a synergetic vision over
pursuing sustainable development A key step in this process of different stages of the life cycle, the medium to long term. The
and preserving our planet for future consolidation is implementing a from raw material to disposal of the Company believes that integration
generations. Sustainability Platform that can finished product. with its stakeholders is pivotal in
help systematically and efficiently achieving measurable goals in
Corporate organisations, like all manage the collection and analysis Conducting a product and corporate terms of improving environmental
aggregations of individuals, have a of core environmental data and LCA is a complex task that calls performance and, indeed, the only
critical role in ensuring a balanced information. The definition of for thorough knowledge of all way to be successful.
ecosystem, of which we all are a tangible goals in the medium to long the processes involved and their
part. term, in fact, is not possible without environmental aspects resulting in Lavazza also participates actively
monitoring the environmental massive data collection. in major national and international
In this context, Lavazza has decided impact of the Groups business, both committees, working to define
to take on this important challenge, directly and by indirectly. The action-plan in the first year standards for calculating the specific
shaping a solid path of sustainability of the Sustainability Platform is impacts by commodity sector, which
that will encourage a conscious and Lavazzas approach is based on Life focusing on the definition of all is essential to enable businesses
resolute involvement by all actors in Cycle Thinking (LCT) that factors the environmental information to compete and achieve results
the supply chain. the different stages of the product necessary to assess the impacts, through activities aimed at reducing
life cycle, evaluating its key impacts their data-basing with the aid of the impact.
The know-how acquired thus far from conception to design, including software and the redefinition of
has allowed Lavazza to reinforce the the assessment of processes not specific indicators to measure
structures involved in environmental under the Companys direct control. and monitor the Corporate
sustainability. The aim has been environmental footprint in order
to lay out a more comprehensive to identify risks, opportunities,
mapping that aptly represents the priorities for action and possible
impacts of our business on global strategic actions to be taken.
climate, expanding the boundaries In this process of consolidating
102 103
4.3 Carbon Footprint

Lavazza carefully monitors environmental performance along the World Business Council for
developments of the environmental the production chain. Sustainable Development (WBCSD).
impacts of products and All these standards focus
organisations, aware that it is In this report, in order to document exclusively on greenhouse gas
imperative to adopt a common and and communicate how the various emissions and are based on the
harmonised method for calculating stages of the production chain methods used to calculate the
and reporting its environmental contribute to the process in terms LCA, whose international legal
performance, within the framework of their environmental impact, framework is represented by the
of a life-cycle approach. Lavazza has decided to use the ISO 14040 series:
Carbon Footprint14 as an indicator
In line with the directions and of environmental sustainability, UNI EN ISO 14040 (2006)
guidelines of the European Lavazza is aware that concern over Environmental management, Life
Commission in the development climate issues from consumers and cycle assessment, principles and
path of the PEF method Product the international community has reference framework.
Environmental Footprint and OEF sky-rocketed in recent years.
(Organization Environmental UNI EN ISO 14044 (2006) Life
Footprint) and Recommendation In order to quantify and report cycle assessment, Definition and
2013/179/EC, Lavazza adopts greenhouse gas emissions at guidelines
a multi-criteria method for the a corporate level, factoring the
analysis of environmental hotspots. Companys direct and indirect
Proper identification of significant emissions as a whole, Lavazza
categories and the definition of the adopted standard ISO 14064:200615
performance indicators involved and the GHG Protocol Corporate
allows the Company to target more Standard developed by the World
efficient actions for improving Resources Institute (WRI) and
CO2
14
Sum of greenhouse gas emissions (3.1.3.5) and removals (3.1.3.6) in a product system (3.1.4.2), expressed as CO2
equivalents (3.1.3.2) and based on a life cycle assessment (3.1.5.3) using the single impact category (3.1.5.8) of
climate change, (definition contained in ISO/TS 14067/2013)
15
UNI ISO 14064- 1 Part 1: Specifications and guidelines at an organisational level for the quantification and
reporting of greenhouse gas emissions and their removal
104 105
As shown by the indicators, the most relevant Greenhouse gas emissions 100
5% 4,6% 4,3%
Scope Greenhouse gas emissions considered (GHG - Green House Gases) by Lavazza 1% 1% 0,8%
impacts concern green coffee cultivation and 90
the production and disposal of packaging. Coffee disposal after use 80

Scope 1 Direct emissions from the combustion of natural gas for the generation of thermal energy, for Activities linked to the manufacturing Finished Product distribution
70
Direct Emission heating and processes plants, offices and distribution of the finished
Packaging
Manufacturing plant emissions 60
product do not contribute significantly to the Green Coffee 63% 64% 66%
Direct emissions from the combustion of diesel fuel for proprietary vehicles used for moving
[%]
50
Organisations total emissions.
goods within plants and the fleet of company vehicles 40
The following graphs represent the trend of 30
tonnes of equivalent COS emissions (direct 20

16% 15% 14%
Scope 2
Indirect Emissions Emissions resulting from the consumption of electricity from the national electricity grid and indirect) both in absolute terms and in 10
16% 15% 14%
relation to tonnes of processed coffee.
0
2013 2014 2015

Emissions resulting from the production of green coffee
Scope 3
Other Indirect Emissions
Emissions resulting from the production of plastic raw materials and packaging
Emissions resulting from the consumption of water in production plants and at administrative
headquarters Direct emissions, when compared to the decrease in 2014 of the Indirect emissions point to a substantial reduction in 2015, largely
emission index per ton of processed coffee, display an essentially due to lower consumptions of electricity generated from renewable
Emissions resulting from waste management and disposal stable trend in 2015, with a slight increase tied to the consumption of hydropower sources for offices. Finally, the graph below shows the
Emissions resulting from the disposal of used coffee natural gas used to heat the buildings in all the Groups operational trends of impacts that occurred upstream and downstream of the
units. chain in the three-year period.
Emissions resulting from the distribution of the finished product
Direct emissions - Scope 1 Indirect emissions - Scope 2
3500 0,25
The chart below shows the trend in The systems border includes In order to improve the level of
27000 0,210
3000
the three-year period of equivalent Corporate Management, sales technological, geographic and 26000 0,205 0,200
2500
0,022
0,20
[t CO2eq/t]
0,020
[t CO2eq/t]
[t CO2eq]
CO2 emissions calculated in branches and the manufacturing temporal representation of the
[t CO2eq]
0,015
2000
25000 0,190
accordance with the Global plants in Settimo Torinese, examined processes, changes 0,191
1500 0,010
Warming Potential over a period of Gattinara (VC), Verrs (AO) and to the model calculations in the 24000 0,185 0,180
1000 0,010
0,005
100 years, adopted by the IPCC in Pozzilli (IS), including flows of raw reporting three-year period have 23000
0,170
500
2013. coffee, raw plastics, packaging and been implemented. 2013 2014 2015
0 0,000
2013 2014 2015

distribution of the finished product. [G4-22]
Total direct emissions Relative direct emissions Total indirect emissions Relative indirect emissions
The environmental impact is The consumer phase understood
represented as the percentage of as both the production of coffee
distribution over the entire value machines and their operation was 0,7% 0,6% 0,5%
Other indirect emissions - Scope 3 100
chain. excluded from the systems border. 1% 1% 0,9%
90
80
70
65% 67% 69%
60
[%]
50
40
Coffee disposal after use 30

Finished Product distribution
20
16% 16% 15%
Packaging
Manufacturing plant emissions
10
Green coffee 17% 16% 15%
0
2013 2014 2015

106 107
4.4 Health & Safety, Energy and Environment

Management System
In 2015, besides introducing the Report 2014 and in accordance documents associated with the
Corporate Policy for Health, Safety, with standards ISO 14001, ISO Management system. There
Energy and the Environment and 50001 and OHSAS 18001. will be a common area for each
the Group guidelines Occupational system process accessible to all
Health & Safety, Energy and Lavazza have created a special employees for them to review and
Environment, which outline online platform to manage the use the respective documents, and
the organisational structure system that launched in 2016 a private area with limited access
of Lavazzas Management and is accessible to all Lavazza used by staff in charge to manage/ Environmental performance Water supply;
system, The Company began employees. edit documents. Waste-water volumes;
implementing the Management The objectives of Lavazzas Environmental Product waste and its management
System for Health, Safety, Energy The online platform will be Management System include the continuous (disposal, recycling, etc.);
and Environment in line with the used to store and manage all improvement of environmental performance Substances harmful to the stratospheric
goals illustrated in Sustainability the procedures, reports and monitored around the clock according to ozone;
individual factors of impact. Any spills in the soil, subsoil and aquifer;
This section presents data and information Any environmental fines.
regarding:
Continuous improvement of our manufacturing requirements of the Management system, in 2015 Energy consumption (electricity and heat);
plants Lavazza conducted the first cycle of internal audits of its
manufacturing plants, Corporate Management and the
As part of the plan aimed at ensuring ongoing Innovation Centre.
improvement of the environmental performance
of Lavazzas manufacturing processes and in line HSE Auditors qualified by accredited agencies and
with regulatory requirements, in 2015 the Company belonging to both Corporate Management and the
conducted an energy analysis of the processes manufacturing plants conducted the audits. The
at its manufacturing plants. For details about this team of Lavazza HSE Auditors currently consists of
analysis, please refer to the section on environmental 13 environmental auditors, 10 auditors dedicated to
performance indicators. occupational health and safety issues and 4 energy
auditors.
In order to monitor improvement of environmental
performance, along with the intrinsic parameters and
108 109
Electricity consumption Heat consumption
Electricity consumption within the production plants depends on Heat consumed by the Companys manufacturing plants concern
the operation of the plant and equipment, production lines and natural gas only and is used to operate the plants equipment and
ancillary services such as, for example, the generation of systems, in particular the coffee roasting and decaffeination lines,
Energy consumption compressed air.

300.000 3
as well as to heat the office buildings.
The process component is proportional to the quantity of
processed coffee, while the second is dependent on external
280.000
weather conditions.
Data on energy consumption Environment (EN) Food Processing The graphs show the difference in
2,5
260.000
In the three-year period, process heat consumption remained
258.760 268.315 263.896
refers to Corporate Management, Sector Supplement Version 3.0 FPSS standardised consumption based 240.000
2
stable, while energy used to heat buildings dropped significantly
the Innovation Center, the Italian Final Version. on the assumption that the factory 220.000
because of the newly upgraded thermal power stations in the
1,98 1,90 1,92
manufacturing plants of Settimo Torinese and Gattinara.
manufacturing plants in Settimo in Pozzilli (IS), which was inactive for
[GJ/t]
[GJ]
200.000 1,5
Torinese, Gattinara, Verrs and When calculating heat consumption, much of the first half of 2013 due 180.000
Pozzilli, and the sales branches the Italian coefficients were used for to a serious fault in its systems that
1
160000 350.000 4
located throughout Italy. The data the conversion from m3 to GJ rather occurred in 2012, will run at peak 140.000
0,5
includes electricity, heat and fuel than the coefficients recommended production.
3,5
300.000
120.000
297.351 291.580 290.719

consumption for the corporate by international standards (choice 100.000 0 3
vehicle fleet. made when drafting Sustainability

250.000
2013 2014 2015
[GJ/t]
[GJ]
2,5
Report 2014). The reason for this Simulation at Pozzilli Group electricity consumption Electricity consumption index 200..000
2,28
The conversion factors used to is that the Italian coefficients are 2,07 2,11
2
calculate the energy indicators better suited for the type of energy The graph represents the absolute amount of electricity
150.000
1,5
refer to the Indicator Protocols Set consumption examined. [G4-22] consumed expressed in Giga-Joules and the specific energy
consumptions (or indices) compared to tonnes of packaged 100.000 1
coffee. 2013 2014 2015

In the three-year period, absolute electricity consumption was in Simulation at Pozzilli Group electricity consumption Electricity consumption index
line with the production trend. Specific electricity consumption
compared to 2013 dropped between 3.5 and 4% due to the large
number of energy efficiency improvement works carried out,
such as the upgrading of the set of compressors used in the The graph represents the absolute amount of heat consumed
manufacturing plants of Settimo Torinese and Gattinara. The expressed in Giga-Joules and the specific energy consumptions (or
slight increase in specific fuel consumption in 2015 compared indices) compared to tonnes of packaged coffee.
to 2014 is due to special maintenance carried out chiefly at the In 2015, the consumer index experienced a slight increase due
factory in Settimo Torinese. These works and added maintenance solely to higher consumption of natural gas to heat the buildings
led to higher electricity consumption unrelated to coffee in all the Groups operational units, a direct consequence of the
production. colder temperatures in winter in 2015 compared to those in 2014.
110 111
Total energy consumption energy analysis applicable to all its manufacturing plants that m3 of water consumed (for civil and industrial use) compared to Reused and recycled water
would prove compliant with Leg. Decree 102/14 - Implementation tonnes of packaged coffee.
of EU Directive on energy efficiency 2012/27/EU and standard The lower water consumption in 2015 is attributable to the
The total energy consumption is the sum of the electricity, heat UNI ISO 50001 - Energy management systems - requirements replacement of a number of water-cooled compressors with similar Water for industrial use is used for the humidification of coffee to
and fuel consumed for the corporate vehicle fleet. and guidelines for use. This activity made it possible to form air-cooled machines. be decaffeinated, to cool down coffee during the roasting process
an accurate energy model to selectively enhance the energy and accessory machinery (e.g. compressors).
In the three-year period, given the low incidence of the third monitoring systems already in use and to identify other possible Water discharge In the first two cases, the water cannot be recycled or reused
addendum, the trend in absolute values proved consistent with areas for energy efficiency improvement in all operational units because it comes into direct contact with the coffee and
the trend in the production of packaged coffee. under review. The total volume of wastewater discharged at the Italian evaporates.
manufacturing plants and at HQ flows into the sewage system. The water used in cooling the systems is recirculated in closed
The specific consumption trend highlights the effect of the Water supply circuits to ensure the lowest possible consumption of resources.
energy efficiency improvements mentioned earlier and the The graph shows the absolute water discharges expressed in m3 The water is therefore not recycled or reused but recirculated
consistently high levels of performance. Most of the water consumption of Luigi Lavazza S.p.A. is related to of water and the respective specific wastewater (m3) compared to whenever this is technically feasible.
the production plants, specifically the coffee roasting process, the tonnes of packaged coffee.
cooling of the machinery used for the production of compressed The lower water discharges in 2015 are attributable to the
air, sanitation and hygiene facilities. Water consumed as part of replacement of a number of water-cooled compressors with similar
the coffee decaffeination process at the manufacturing plant in air-cooled machines.
700000
Pozzilli shows particularly high levels. This detail clearly emerges
4,60
4,56
4,55
from the analysis of the respective environmental indicators, which
4,50
show a significant increase corresponding to the gradual return to
peak production of the manufacturing plant in Pozzilli following
600000
4,45
4,40
the production halt which took place between 2012 and 2013.
500000
4,35
[GJ/t]
4,30
The graph shows the specific water consumption expressed in
[GJ]
4,30
400000 4,23
4,25
2,00
4,2
300000 1,20 140.000

4,15
1,80
594.437 596.621 592.673 4,10 1,03 120.000 1,60

1,00
200000 4,05 0,93 1,40
0,89 100.000
2013 2014 2015 0,80 1,20

0,75
[m3/t]
[m3]
80.000
0,23 1,00
Simulation at Pozzilli Group electricity consumption Electricity consumption index 0,69 0,22
[m3/t]
0,60 0,19
0,62 60.000 0,80
0,67 0,65 0,55
0,60
0,40 40.000
0,27 0,40
0,27
The change in the specific index (between 1 and 2%) is 0,20
0,25 20.000
0,20
87.509 91.100 75.665
considered natural to a complexly structured business such as 0 0
Lavazzas. 0
Total Civil use Industrial use 2013 2014 2015
Energy consumption data was analysed with reference also to
the Companys efforts in 2015 to come up with a comprehensive 2013 2014 2015 Total water discharges Water discharge / production KPI
112 113
Waste Substances harmful

to the stratospheric ozone
12000
The data refers Corporate Management, the Innovation Centre in Hazardous waste index KPI Non-hazardous waste index KPI Lavazza currently has very few equipment items (heat pumps,
Settimo Torinese and the four manufacturing plants in Italy and 10000
9.361
cooling and air conditioning systems) that run on coolants that
9.326 9.754 2,0 100
includes: 9.661
contain ozone-depleting substances (HCFC). This equipment,
74,06
8000 8.536 8.571 66,17 61,95 whose maintenance is outsourced to specialised companies, is
Production waste, gradually being replaced.
[kg/t]
[kg/t]
1,0 50
Waste generated by administrative and advertising activities, 6000
During 2015, there were no reported leaks of coolant gases.
[t]
0,71
with the exception of solid urban waste. 0,25 0,25

4000
0,0 0
Lavazza is strongly committed to reducing the amount of waste 2000
2013 2014 2015 2013 2014 2015
Significant spills in soil, subsoil and aquifer
generated by its manufacturing processes by streamlining them, 92 35 35
Hazardous waste index KPI Non-hazardous waste index KPI
progressively introducing more efficient management methods 0 In the three-year period, there have been no reports of significant
aimed at rationalising the use of its temporary storage areas, and [R-P] [R-NP] [R Totali] We ought to point out that in 2015, 1 ton of packaged coffee spills of potentially pollutant liquid substances.
by spreading awareness among its employees. generated 62.20 kg of waste, of which 61.95 kg classified as non-
2013
hazardous and 0.25 kg classified as hazardous.
The graph represents the amount of waste generated and
2014 These figures clearly show that the percentage of waste classified Environmental fines
expressed in tonnes, classified as hazardous, non-hazardous as non-hazardous accounts for more than 99% of the total waste
and total waste. 2015 produced. In the three-year period, the Company did not receive any
In the three-year timeline, the quantity of waste generated administrative fines or formal complaints regarding environmental
dropped significantly (by about 10%). The following graph shows the percentage of recycled waste. issues.
The graphs below represent the kg of waste produced (classified
The lower amount of waste produced in 2015 is largely due to
as hazardous and non-hazardous) per ton of packaged coffee.
the less processing plastics used to manufacture coffee capsules
Recycled waste (REC)
at the manufacturing plant in Gattinara, in view of important
changes in the process that allowed Lavazza to use and exploit 100
materials in production that were formerly discarded. 90

92,78 93,45 94,18
[%]
80
70
60
2013 2014 2015
[Rec/R Tot]
The graph shows that in the three-year period, the percentage of

recycled waste increased steadily from year to year and in 2015
accounted for more than 94% of the total waste, cutting down the
percentage of waste for disposal to less than 6%.
114 115
Packaging Eco-friendly design Percentage of types of packaging materials used by Lavazza
Plastic
Paper and Cardboard
Aluminium
Steel
58% 30% 7% 5%
2015
Of the roughly 20,000 tonnes of material used for the production

The plan to restructure our internal on how to dispose properly of the Companys commitment to of primary, secondary and tertiary packaging, 60% is made
reporting system to ensure a more packaging. monitoring the information and up of plastic materials and 30% of paper and cardboard.
accurate monitoring of the impact data is therefore essential, along
of our products starts from the It also represents a stimulating with a thorough understanding of
products packaging. challenge, as when designing international law, so that we may
For Lavazza, packaging design the products package, we need respond accordingly in due time
is extremely important and calls to consider the applicable safety and as efficiently as possible.
for efficient management of the standards and requirements of
products use, end of life and law that have an impact on the
the application of a system for packaging, besides common
communication to consumers environmental issues. The
In 2015, the packaging had a lower overall environmental impact Greenhouse Gas Emissions [GHG] - Packaging
linked to a re-modelling of the design to upgrade it to the state-of-
the-art of the several product lines and owing to improvements in
the packaging features and manufacturing processes.
A positive example of the process introduced to achieve a rational

management of waste is the production of the EP Black capsule. 0,9
100.000
The capsule, manufactured using 20% of recycled polypropylene 0,85
from thermoforming scraps or wastes from other productions,
80.000
allows us to make less use of virgin plastic raw material and
In 2015 the packaging had a lower consequently reduces the impact tied with its procurement.
0,82 0,80
overall environmental impact

60.000
[t CO2e/t]
0,23 0,75
[t CO2]
0,22
0,76 0,19
0,75
linked to a re-modelling of the 40.000

0,7
design 20.000
0,65
0 0,6
2013 2014 2015
GHG Packaging emissions GHG Packaging emission index
116 117
Lavazza Sustainability Report 2015 Ch. 5 | Human resources development
Human resources
development
118 119
5.1 Lavazzas approach to people

For a company to grow means training and refresher courses. training a key medium for workers
to help people and their skills These courses are planned by to integrate within the Company
grow with it. Lavazza transfers accurately assessing our staffs and supports the processes of
knowledge from its more training needs with the direct change under way.
experienced staff to new involvement of managers and
employees through a structured people from the early stages of
process by organising frequent preparation. This approach makes
Workforce in Italy divided by category16
Manual Worker Office employee

Senior management Manual Worker Supervisor
Others
Senior management
Middle management Senior management
Office employee Middle
management
2013
Total women: 498 Total men: 1.091
Grand total 2013: 1.589
2014
1.554
2015
people employed in 2015
Women Men
16
Please note that in this chapter (unlike what done in Sustainability Report 2014), the figures for temps have been grouped together under the workers given category (e.g.
office employees).
120 121
effective communication. Training

programmes were organised
in parallel on specific areas
such as retail sales, for which
Lavazza introduced a course on
merchandising techniques and
64.456 hours of training in 2015
which will continue into 2016.

+182%
compared to 2014
Hours of training by category and gender

5.1.1 Training and Development:
a structured and shared process Grand total 2013: 19.150
Total women: 7.445 Total men: 11.705
2013
In September 2015, in line the online platform is also a tool to In 2015, Lavazzas training
with the goals employed in foster education and learning. The programme primarily focused
the Sustainability Report 2014, platform allows us to manage and on a selection of core business
Lavazza launched an online deliver educational content in a skill-sets: knowledge of the Grand total 2014: 22.892
training platform accessible to combined format (a mix of lessons product and its method of Total women: 7.393 Total men: 15.449
almost all of its employees. in the classroom and e-learning). preparation, project management
This also includes a number of (with a core course curriculum 2014
In addition to the management, community tools for managing and an advanced one based
database recording, reporting and the exchange of content and on international certification
evaluation of all training sessions, information among colleagues. standards for SMEs), as well as Grand total 2015: 64.456,4
Total women: 16.842,55 Total men: 47.613,85
2015
Office employee Office employee
Middle mgmt. Middle management
Senior mgmt. Senior management
Manual Others
Temp worker Manual worker
Supervisor Supervisor
Temp
Women Men
122 123
Induction process
In 2015, around 150 people at Lavazza were involved in the

induction programme.
More specifically, the programme focused on three types of
activities with different targets and duration:
A one-day visit to the Training Centre, the factory in Settimo

Torinese and in some cases, the factory in Gattinara. Overall, 55
people took part in the programme and had the opportunity
during their visits to receive training on the coffee chain (from
plant to production), taste the individual varieties (to help them
understand the difference between the Arabica and Robusta
blends), followed by a presentation of Lavazzas product range
An ad hoc induction, which consists of a structured schedule

of meetings and interviews of varying length (from 2/3 days to a
week), targeting new employees at the Lavazza headquarters and
at some subsidiaries (approx. 35 persons)
Specific induction on coffee and tastings, varying from a day to

a day and a half. These are specific programmes aimed at newly
hired staff in the relevant corporate divisions (e.g. R&D, Marketing)
and focusing on knowledge of the coffee production chain, the
systems of preparation and tastings of individual varieties and
blends (approx. 60 people).
124 125
Organisational changes and training in the manufacturing plant

Leading Change
In 2015, the manufacturing plant pack per year which will need to be The restructuring plan at Settimo Leading Change, a project that Orientation to fostering individual for the professional role (skills and
in Settimo Torinese underwent processed at the plant. Torinese, with the agreement began in late 2013 and aimed at and corporate growth. capabilities);
reorganisation and modernisation. The plants redevelopment plan reached with trade unions on defining the strategy to enhance The pillars of Leadership:
The Group invested 20 million also includes intensive staff renewal of the supplementary the skills of the companys human This process takes place at least Accountability, Innovation,
euros in an extensive renovation training, in particular with regard contract for plant workers in capital, in 2015 saw the definition once a year and consists of three Integration, Leading people;
plan to make the plant a to the use of the new line for 2014, is a further step towards of a standard model to measure the steps: assignment of objectives, Performance.
multiproduct hub of excellence, capsules, as well as activities defining a functional layout for performance of all employees. performance assessment and
fully engaged in its industrial aimed at boosting the expertise the production lines of the Group, feedback interview. All these assessment factors are
system. and independence of our technical which has opted to remain in In Lavazza, performance communicated as a management
services, incorporating Lean Italy and Torino, in spite of and incorporates three elements: the The evaluation process relies on tool for managers, promoting a
This process, which will be Manufacturing principles in the nonetheless consistently with its results contribution achieved and a software application (PLUS) culture based on the sharing of
completed in 2016, also plans to production processes. aim to expand and globalise its the workers professional role. integrated into the Lavazza Learning feedback for improvement.
transfer the production of the business. The Performance Management Portal, which allows users to define With the completion of the
popular Danish brand Merrild, The training and skills development system is based on certain key and assess the objectives and to evaluation processes, the company
recently acquired by Lavazza, programme unfolded in a detailed principles: suggest training courses for the can create a talent management
to the manufacturing plant in schedule of training sessions and development of Lavazza employees. model that in future years will help
Settimo Torinese. Given Merrilds test drills on the production line. Assessment objectivity; define structured development
widespread presence on the The process continued for most of Clarity and transparency of PLUS was developed by integrating paths, career planning and reward
Scandinavian markets, the 2015, owing also to a production communication; all the elements normally factored policies, in line with the strategic
production is quantifiable to an halt when overhauling and Ongoing dialogue between the when assessing employee objectives of the business.
additional 6,000 tonnes of soft restructuring the equipment. actors involved; performance. For example:
Respect for the individual and
recognition of the role; The level of expertise required
126 127
Percentage of fixed
and permanent contracts
2015
5.1.2 Loyalty and transparency
The percentage of employees with a are 28% higher than the minimum these percentages displayed a
98%
permanent contract - around 98% in wages based on the CCNL (33% for growing trend in the three-year
the three-year period - is consistent male employees). period). In the case of manual
with Lavazzas desire to establish The relationship between the workers, the ratio sees women
lasting relationships. The average gross annual salaries paid on earning 2.3% more
Permanent annual salary is roughly 31% average to female workers and the than men.
employees
higher than the minimum wage average RAL for men is about 94% This ratio was calculated by dividing
of the National Collective Labour for executives, 98% in the case of the sum total of RAL paid to women
Agreement (CCNL). The average middle-management employees by the RAL paid to men for each
2013: 98% 2014: 98% annual wages for female employees and 96% for office employees (all employment category17.
Total turnover 2015
Hires and exits by position
Manual worker
Women Men Supervisor Manual worker
Other Supervisor
Senior management Others
Senior management
11,4% 8,2% Total 2013: 9,3% Middle management
Office employee
Office employee
9,0% 6,5% Total 2014: 7,3% Hires

2013
13,2% 13,2% Total 2012: 11,5%
Exits
Total Hires: 78 Total Exits:69
Middle management
2014
People involved in the MBO Programme
2013-2015 Total Hires: 57 Total Exits: 59
Middle management
Gender Category 2013 2014 2015 2015
Women Senior management 20 18 16 Total Hires: 86 Total Exits: 119

Middle management 12 15 17
Supervisor 33 32 27
Total 65 65 60
17
In accordance with standard GRI-G4, below is a brief introduction to the indicators required by the guidelines:
Men Senior management 52 52 54
In the three-year period, 100 employees (81 female and 19 male) benefited of parental leave. The rate of return to work and reintegration is 100%;
Middle management 32 37 43 100% of the employees of Luigi Lavazza S.p.A. benefit of the terms of their National Collective Labour Agreements: Lavazza does not resort to forms of collective bargaining
Supervisor 51 50 46 when defining the notice period, with the exception of changes in work shifts within its manufacturing plants. In these cases, the notice period established by the contract
Total 135 139 143 (CCNL) is two weeks;
In the three-year period, Luigi Lavazza S.p.A. did not receive any reports of violations of workers rights, regarding proper regulation of the working hours, trade union rights
and the procedures for managing the employment relationship, except for one case in 2013 that was dealt with a labour-related lawsuit that ended with the Court
Total 200 204 203 acquitting Lavazza.
128 129
5.1.3 Internal communication

In 2015, Lavazza introduced that relied on storytelling to tell A member of the Lavazza family
Coffee Telling, a project that stories of leadership and of the made a closing statement
involved 843 people. conduct expected of all Lavazza during each event, revisiting the
The project aimed to spread employees to sustain growth. highlights of the companys history
Lavazzas model of Leadership, and renewing the companys focus
giving everyone the opportunity to As a result of these cross- on people and the promotion of
apply it to their daily tasks and to functional focus groups, projects for their development.
actively contribute to change. 11 training events were organised
in which all participants recounted
With Coffee Telling, in fact, their own experience and took part
everyone becomes an agent for in identifying the type of conduct
change and is responsible for his/ expected of them.
her own growth. Coffee Telling also offered the
The project was developed by opportunity to celebrate the
forming a number of focus groups companys 120 years of history.
843
people involved in the
CoffeeTelling Programme
130 131
Welfare
2015 was an important year for Part-time: option for workers who In addition, all employees are now
Welfare in Lavazza. Over the course are fathers or mothers to work part- eligible for scholarships for their
of the year, the company introduced time for three years, with full-time children, from school age to college.
the new Welfare Plan under the reinstatement at the end of the
supplementary agreement signed period.
at the end of 2014. The plan,
which targeted 650 Corporate Access to Welfare Portal where
Management employees, covered employees can benefit from special
the following aspects: deals and discounts at a network of
shops and services nationwide.
Productivity bonus: option
of choosing different forms to In 2015, Lavazza also extended the
reward productivity, such as added integrated healthcare programme
corporate welfare services and to all Corporate Management
programmes. employees.
132 133
5.1.4 Nuvola: a work in progress

Over the course of 2015, the new helmets and high-visibility vests in previous months had
Lavazza headquarters was a and experienced what it is like to helped achieve.
work in progress for everyone: be a construction worker, all within
employees, citizens and councillors walking distance from their school. In 2015, Lavazza also worked hard
of District 7, PA officers, students, They saw the construction site not only on the continuing work
professionals in the design up close and were introduced to on site, but also in furthering an
industry, security and construction building materials and machines. urbanisation and redevelopment
workers and foreign delegations project at largo Brescia, which
of experts interested in urban In addition, an event was was transformed from a busy
transformation projects. organised for town hall employees intersection into an entirely
who participated/contributed to renovated space. The project, for
Specific events were organised, the permit application process which urbanisation18 costs were
such as a one-day field trip to (construction site paperwork), deducted, cost an approximate
visit the construction site for the with the ability to spend a day 1.7 million euros19, and involved
children of a nursery next to the at the construction site. During the reconstruction of the entire
site. The 25 children who took the event, the employees had the perimeter of the block around the
part in the field trip wore safety opportunity to see what their work new headquarters, giving citizens a
Over the course of 2015, the new Lavazza headquarters was

a work in progress for everyone: employees, citizens and
councillors of District 7, PA officers, students, professionals
18
The Italian legislator ruled for a discount on the share of contribution to the urbanisation costs of the project if the company granted the building permit takes full charge
of the projects completion.
19
The total amount invested in the construction of the new headquarters in 2015 inclusive of urbanisation costs exceeds 51 million euros.
134 135
quality urban space with less areas, a fountain, plants and green 1.200 m2
car parking lots. areas and a large car park for Restaurant
2
The sidewalks were widened to
public use with their own separate
entrance.
18.500 m
Total surface 1.600 m2 4.000 m2
for 280 people
create new pedestrian areas, Museum and Historical Archive Former Electric Plant 540 m2
equipped for car parking with new Gourmet Restaurant
for 50 people
urban furniture and a new LED
lighting system. Traffic was helped
2 1.500 m2
to run smoother by rearranging
the timed settings of the new 2
1.600 m 180 Events Area
traffic lights, while the tram tracks 15.000 m

Headquarters
Archaeological area Parking for 1500 people
and wires were rationalised and 240 m2

made more functional and safer. Auditorium
When the new headquarters are *1600 m2 for 220 peoplee
Terrace on 3 floor
rd
completed, citizens will have new
pedestrian spaces, safer roads, a
large square garden with paved
**800 m2 2.600 m2
IAAD; 450 students
3.500 m2
Public Garden
400 m2
Exhibition area
Hall
Sustainable headquarters the environmental parameters (such Via Bologna), we achieve it thanks to Employees were actively involved in
as temperature and lighting) so as to our strong commitment to providing a developing the project in several ways: The new headquarters will also
The new headquarters will also be a centre
guarantee the highest level of efficiency
and comfort. Respect for the environment
healthy work environment that is in line
with the best practices available today. Workshops to co-design the spaces
be a centre of excellence in
of excellence in terms of Sustainability. is also reflected in Lavazzas commitment The interiors of the corporate offices, as were organised for managers to help terms of Sustainability. Lavazza
Lavazza decided to file an application
for the new building that will host the
to reduce the use of paper by at least 50%,
by installing a system for the electronic
well as all other offices in the building,
will be designed to ensure comfort,
them better identify the working groups
and their needs. This also served as an decided to file an application for
Companys administrative offices to obtain
LEED Gold certification (Leadership in
archiving of corporate documents. Lavazza,
in fact, has implemented a programme for
cut down on energy consumption and
maximise the efficient management of
opportunity to map peoples work habits in
order to organise work spaces that adapt
the new building that will host
Energy and Environmental Design), the the digitalisation/scanning of documents the spaces thanks to the use of advanced to different types of job tasks; the Companys administrative
most widespread building energy and
environmental performance standard in
that will help minimise the need for office
cabinets in the new headquarters. It is
control systems. Most offices will be open
space (without compromising however
Visits on site were organised in July for
all employees and were attended by 203 offices to obtain LEED Gold
the world and that few buildings in Italy
have obtained so far.
with this aim in mind that in 2015 the
company conducted an analysis jointly
the clear designation of the several
divisions) and at least 50% of the offices
of them. During the visit, employees were
introduced to the nature of the project, the
certification (Leadership in
with Administration, Finance and Control for employees will focus on encouraging articulation of the functional areas and the Energy and Environmental
The rating system involves five main aimed at understanding what types of
documents can be scanned and which
formal and informal interaction and
collaboration: barrier-free environments
organisation of interior spaces.
Design)
*
categories: sustainability, water supply
management, energy and atmosphere, ones must be filed in printed format, taking that are conducive to collaboration and Moreover, a communication plan was
materials and resources and indoor into account the applicable laws. interaction, according to an evolved open defined in 2015 for all employees that will
environmental quality. A sophisticated space concept. be implemented in 2016 both in Italy and
digital system in the new headquarters As for the companys customary care at foreign subsidiaries.
will ensure integrated monitoring of for employees, who in the beginning For more details on the construction site
the space and the equipment, as well of 2017 will be transferred to the new and on LEED Gold certification, the new
as providing data in real time. This will headquarters (roughly 600 from the Nuvola website is now available online at
allow us to independently configure offices in Corso Novara, Via Tollegno and nuvola.lavazza.it.
136 137
138 139
The Nuvola numbers

More than
2000 people
directly involved in meetings,
100 hours of exchange
and involvement of local actors who
30 metres of palisades
dedicated to information
10 visits on site for a total
of 300 participants between
guided tours or contacted live and work in the neighbourhood university students, professionals
with regard to the Nuvola of the construction industry and
construction site in 2015 safety experts, citizens, children
from the school in via Ancona
16 testimonials actively
6 additional metres of palisades
dedicated to information about
and experts in environmental
sustainability
involved in the advertising and work on the urbanisation project in

communication campaign about largo Brescia
1000
the Nuvola construction site
About citizens
Street art on the palisades of of the Aurora neighbourhood
365
the Nuvola construction site involved directly and indirectly as
part of communication campaigns
days a year info-mail
service: info.nuvola@lavazza.it 20 meters of empty
palisades assigned to two
on the territory
associations of writers in the
60 neighbourhood
250
500
children, parents
and grandparents involved in letters hand-
the inauguration unveiling the persons involved in 8 delivered to residents, workers and
public presentations of the project merchants affected by construction
50
banners on the urban decoration
drawn by kindergarten children and the construction site site work carried out between July
and installed in via Pisa citizens and town 2015 and January 2016
councillors of the Town-planning
20
and Environment Committee of
District 7 involved in a visit to the
children of the construction site
kindergarten in via Ancona
involved in an educational
workshop on site
140 141
5.1.5 Occupational Health and Safety

Injury frequency rate 2013-2015 Injury severity rate 2013-2015
Lavazza invests an incredible effort The company does its best to ensure system, management discusses
into making sure that each worker that work equipment always meets the results of the analyses, the
is informed about the corporate 2013 2014 2015 2013 2014 2015
the regulatory requirements and enforcement of corrective actions
policies on occupational health that the best available operating and the level of implementation 12
10,7
0.6
0,51
and safety and that all employees methods are adopted, consistently of projects and activities for 10 0.5
are appropriately trained on how 9,2
upgrading the equipment on improvement. 8 0.4
they are to perform their job tasks a par with the latest developments 0,27
6 0.3
in total safety. in technology. The trend in industrial accidents 5,9
monitored thanks to a set of 4 0.2
0,20
The tasks and responsibilities, in Starting from 2014, Lavazza has frequency and severity indices 2 0.1
terms of occupational health and introduced a standard procedure helps to define the objectives of the 0 0
safety, are clearly defined for all to analyse accidents (injuries and management, its staff and in turn at
corporate business units through a near misses) aimed at identifying all organisational levels.
system of delegate functions from their cause. The results of this
corporate management down to the analysis are made known to all When calculating the accident The data is referred to employees working in the four Italian production plants (Settimo Torinese, Gattinara, Verrs, Pozzilli), in the
commercial branches and in the Torino headquarters.
manufacturing plant. employees through an internal indices, the company factored
communication system that allows accidents involving internal staff
Luigi Lavazza S.p.A., in accordance each manufacturing plant to check that resulted in an absence from The graph shows the trend of the Frequency Index (FI) for The graph shows the trend of the Severity Index (SI) for accidents
accidents that occurred in the three-year period at manufacturing that occurred in the three-year period at manufacturing plants
with the applicable laws, has an whether there are any similar work of more than 1 day, with the plants in Italy, Corporate Management, the Innovation Centre and in Italy, Corporate Management, the Innovation Center and the
Occupational Health and Safety conditions or problems and thus to exception of accidents in progress the Companys Italian sales branches. Companys Italian sales branches.
Service headed by managers and avoid or at least lower the likelihood and comparable to traffic accidents The accident frequency index represents the number of injuries The accident severity index represents the number of days of
employees at its headquarters, that an accident that already or injuries involving outsourced per 1,000,000 hours of labour. absence from work due an injury every 1,000 hours of labour.
manufacturing plants and branch occurred elsewhere will occur on workers.
offices that assists to lower-line their premises.
managers and delegates for all Accidents, days of absence due to an If we take a look at performance We are firmly convinced have led to improvements aimed
corporate divisions. The results of the analysis and the injury and working hours (regular in 2015 compared to the previous that the improvement in the at increasing:
progression of industrial accidents, and overtime) used to calculate the year, there has been a marked accident indices displayed in
Lavazzas employees are supplied which are monitored through a set accident indices refer to Lavazzas improvement both in terms of the 2015 substantially benefited of The safety of machinery,
with a broad range of personal of accident indices based on the manufacturing plants and sales frequency index (-45% compared the restructuring works at the equipment and systems,
protective equipment (PPE) injurys frequency and seriousness, branches in Italy, the Innovation to 2014) and severity index ( -26% manufacturing plant in Settimo The healthiness and house-
appropriate for the specific risks are discussed during routine reviews Centre and Corporate Management. compared to 2014). Torinese and directly and indirectly keeping in workplaces,
involved in their job tasks. This with Corporate Management and from activities linked with the The number of campaigns to
equipment helps minimise risks its staff. During these meetings, Performance was especially positive introduction and progressive inform, train and raise awareness
whenever the technical and which Lavazza views as crucial in at the manufacturing plants in implementation of the Companys among corporate staff,
organisational safety precautions do monitoring the efficient application Verrs (AO), which in 2015 reported Occupational Health, Safety, Energy The number of internal audits, etc.
not ensure sufficient safety based on of the Occupational Health and no injuries, and in Pozzilli (IS), which and Environment system. These
the applicable laws and standards. Safety, Energy and Environment has no reports of injuries since 2014. activities are still in progress and
142 143
Training Center Lavazza.

An actual school by all
means that has now
become an international
network with more
than 50 locations
in 5 continents
Lavazza excellence as a powerful training tool
Lavazzas commitment in promoting coffee testing drills. The workshop is can test their skills in preparing
a scientifically based and specialised based on an educational approach the coffee blends and grasping
coffee culture is also achieved with to training that prepares students to the mixing process better, the art
the Companys continued focus on enter the work-world, offering them invented by none other than the
training through an increasingly an opportunity through a series of founder, Luigi Lavazza. These are
synergistic collaboration with the educational sessions and creative coupled with sensory analyses,
academic world. workshops and starting from tasting and roasting exercises, direct
knowledge of the product and of the testimonies of small local roasters,
More specifically, Lavazzas expertise origins of the raw materials, to create and economic insights tied to the
and leadership in the coffee industry new visions and interpretations market, sustainability and coffee
every year interact with two realms that are highly innovative and marketing strategies.
of educational excellence: Politecnico revolutionary in terms of product,
di Torino and the University of consumption and communication. Both events are held at the
Gastronomic Sciences in Pollenzo, Lavazza Training Centre in Torino,
the first University in the world Students of the University of which for more than 30 years
entirely dedicated to food and food Pollenzo, instead, every year get has been committed to training
culture established by Slow Food. a chance to experience a close and furthering the education of
encounter with the coffee industry, professionals in the field, in addition
The 10th edition of Coffee Design, a through an educational journey that to conducting research and
workshop for students of the faculty is now in its 11th Edition in 2015. development of new products in the
of System Design and Design and By making the vast experience of world of coffee. An actual school by
Communication at the Politecnico di its managers available, Lavazza all means that has now become an
Torino (Department of Architecture offers students a full immersion international network with more
and Design), was held in 2015. in the culture of coffee. In this than 50 locations in 5 continents.
Every year, students participating in case, the theoretical parts of the
Coffee Design have the opportunity programme go hand in hand with
to assimilate Lavazzas expertise in several workshops in which students
144 145
Lavazza Sustainability Report 2015 Ch. 6 | Continuous improvement. Lavazza objectives 2016-2018
Continuous improvement
Lavazza objectives 2016-2018
146 147
Lavazza Sustainability Report 2015 Ch. 6 | Continuous improvement. Lavazza objectives 2016-2018
HR
Lavazza objectives 2016-2018 Introduction of the new model for the MBO integrated
with the performance management system and extending the
redefined MBO to all office employees.
Extension of human resource development programmes and

plans (including the performance management system and the
new model MBO) to foreign subsidiaries.
Alignment of all Lavazzas manufacturing plants to current
Quality certifications (including newly purchased factories) based on
a work-plan drawn up in cooperation with Operations, Quality
and Coffee Buying Department.
Completion by 2017 of a standard claims handling system

for claims regarding food products from all countries of the
world and a centralised database.
Continuation in the process of defining and implementing

Health, Safety, Energy Lavazzas Health, Safety, Energy and Environment
and Environment Management System (SG-SSEA), whose development is also one
of the objectives of the Companys strategic plan 2017-2021.
Launch in 2016 of the SG-SEEA online platform.
Dissemination and implementation of the Occupational

Health & Safety, Energy and Environment Group Guidelines.
Monitoring
of suppliers
CSR policy integration within

the preliminary due diligence Miscellaneous
processes whenever new
business units are acquired.
The following objectives have been identified as part of the joint Updating of the methodology used with an eye to rationalising Implementation of this methodology at subsidiaries in relations
Quality-Purchasing project described in Chapter 3: its criteria, so as to highlight more effectively any differences in with their suppliers through direct visits or with the help of
performance among suppliers, including through a mechanism specialised third parties.
Continuation of the audit plan with the goal by 2018 to assess of deducting points from their overall score in proportion to the
and catalogue all suppliers of direct materials and machines, seriousness of the problem encountered. In view of this update, Greater integration of CSR aspects in the supplier monitoring
which account for 80% of the Companys annual purchases Lavazza has already identified a set of critical questions that system, including through specific check-lists and visits on site
in both categories. make the supplier unfit. with the involvement of Institutional Relations & Sustainability.
Finding solutions to problems that surfaced during audits and Planning the frequency of secondary audits once primary audits
implementation of improvement plans, with a particular focus on have been completed on all suppliers. This frequency will have to
critical and/or strategic suppliers. be calibrated on the basis of the level of trustworthiness shown by
the supplier during the audit.
148 149
Lavazza Sustainability Report 2015 GRI Content Index
GRI Content Index

In Accordance - Core Option
The table below lists the indicators established by standard GRI-G4 and used by Lavazza for reporting purposes so as to ensure the level
of adherence in accordance-Core. The page number of this document is written next to each GRI indicator for reference. Identified Material Aspects and Boundaries
The table also includes some indicators of the supplement GRI for the production of foodstuffs (Food Processing Sector Supplement)
duly reported by Lavazza. G4-17 p. 11

G4-18 p. 11

G4-19 pp. 14-15
GENERAL STANDARD DISCLOSURES

G4-20 pp. 14-15
General Page Number (or Link)
standard G4-21 pp. 14-15
disclosures
G4-22 p. 106; p. 110

Strategy and Analysis G4-23 p. 11

G4-1 pp. 8-9 Stakeholder Engagement

Organizational Profile G4-24 pp. 12-13
G4-3 p. 11 G4-25 p. 11

G4-4 p. 40-41 G4-26 pp. 12-13
G4-5 p. 11 G4-27 pp. 12-15

G4-6 p. 11 Report Profile

G4-7 p. 39 G4-28 p. 11

G4-8 p. 11 G4-29 p. 10

G4-9 p. 11; p. 44; p. 121 G4-30 p. 10

G4-10 p. 11; p. 121; p. 128 G4-31 p. 10

G4-11 p. 129 G4-32 p. 10; p. 15; pp. 150-155

G4-12 p. 68; p. 82 G4-33 p. 15

G4-13 p. 26; pp. 44-45 Governance

G4-14 p. 108 G4-34 p. 39

G4-15 p. 38 Ethics And Integrity

G4-16 p. 42; p. 55 G4-56 p. 38
150 151
GRI Content Index


SPECIFIC STANDARD DISCLOSURES Material Aspect: Water

Disclosure on Page Number (or Link) G4-EN8 p. 112

Management
Approach G4-EN10 p. 113

(DMA)
Material Aspect: Emissions
CATEGORY: ECONOMIC
G4-EN15 p. 107

DMA p. 43; p. 90 G4-EN16 p. 107

Material Aspect: Economic Performance G4-EN17 p. 107

G4-EC1 pp. 44-45 G4-EN18 p. 107

Material Aspect: Market Presence G4-EN19 p. 107

G4-EN20 p. 115
G4-EC5 p. 129

Material Aspect: Effluents And Waste
Material Aspect: Indirect Economic Impacts
G4-EN22 p. 113
G4-EC7 p. 134
G4-EN23 p. 114-115
Material Aspect: Procurement Practices
G4-EN24 p. 115

G4-EC9 p. 90
Material Aspect: Products And Services
CATEGORY: ENVIRONMENTAL
G4-EN27 p. 107; p. 111; p. 114; p. 117

DMA p. 63; p. 97; pp. 102-104; p. 108; p. 134-136
Material Aspect: Compliance
Material Aspect: Materials
G4-EN29 p. 115

G4-EN1 p. 117
Material Aspect: Transport

Material Aspect: Energy G4-EN30 p. 82

G4-EN3 p. 111-112 Material Aspect: Overall

G4-EN4 p. 107 G4-EN31 p. 97

G4-EN5 p. 112 Material Aspect: Supplier Environmental Assessment

G4-EN6 p. 108; p. 111 G4-EN32 p. 38

152 153
GRI Content Index

SUG4-HR1 p. 38

Material Aspect: Environmental Grievance Mechanisms Supplier Human Rights Assessment
G4-EN34 p. 115 G4-HR10 p. 38

CATEGORY: SOCIAL Material Aspect: Human Rights Grievance Mechanisms
DMA p. 49; p. 84; p. 121; pp. 134-136; pp. 142-143 G4-HR12 p. 129

SUB-CATEGORY: SOCIETY
SUB-CATEGORY: LABOR PRACTICES AND DECENT WORK
Local Communities
Material Aspect: Employment
G4-SO1 p. 56
G4-LA1 p. 128-129

Anti-Corruption
G4-LA3 p. 129

G4-SO4 p. 39
Labor/Management Relations
Compliance
G4-LA4 p. 129

G4-SO8 p. 38
Occupational Health And Safety
SUB-CATEGORY: PRODUCT RESPONSIBILITY
G4-LA6 p. 142-143
Customer Health And Safety
Material Aspect: Training And Education
G4-PR2 p. 67
G4-LA9 p. 123
Product And Service Labeling
G4-LA11 p. 128
G4-PR5 p. 87-89
Material Aspect: Equal Remuneration For Women And Men
Customer Privacy
G4-LA13 p. 129
G4-PR8 p. 86
Material Aspect: Supplier Assessment For Labor Practices
FOOD PROCESSING G4 - SECTOR DISCLOSURE
G4-LA14 p. 38
CATEGORY: ECONOMIC
Material Aspect: Labor Practices Grievance Mechanisms Procurement/Sourcing Practices
G4-LA16 p. 129 G4-FP1 38

SUB-CATEGORY: HUMAN RIGHTS
Investment
G4-HR1 p. 38
154 155
INDEPENDENT REPORT ON THE LIMITED ASSURANCE ENGAGEMENT OF THE
SUSTAINABILITY REPORT 2015
To the Board of Directors of

We have carried out a limited assurance engagement of the Sustainability Report as of 31 December
2015 (hereinafter the Report) of Luigi Lavazza S.p.A. (hereafter the Company).
Responsibility of the Directors for the Report
The Directors are responsible for preparing the Report in compliance with the G4 Sustainability
Reporting Guidelines defined in 2013 by the GRI - Global Reporting Initiative (the G4 Sustainability
Reporting Guidelines), as indicated in the paragraph Note on methodology of the Report, and for
that part of internal control that they consider necessary to prepare a sustainability report that is free
from material misstatement, whether due to fraud or unintentional behaviours or events. The
Directors are also responsible for defining the sustainability performance targets the Company, for
reporting the sustainability results, as well as for identifying the stakeholders and the significant
aspects to be reported.
Auditors responsibility
We are responsible for the preparation of this report on the basis of the work performed. We
conducted our engagement in accordance with International Standard on Assurance Engagements
3000 (Revised) Assurance Engagements other than Audits or Reviews of Historical Financial
Information (ISAE 3000), issued by the International Auditing and Assurance Standards Board for
limited assurance engagements. The standard requires that we comply with applicable ethical
requirements, including professional independence, and that we plan and perform our work to obtain
limited assurance that the Report is free from material misstatement. The procedures consisted in
interviews, primarily of Companys personnel responsible for the preparation of the information
presented in the Report, analysis of documents, recalculations and other verification procedures.
The procedures we performed on the Report consisted in verifying its compliance with the principles
for defining the content and the quality of a sustainability report set out in the G4 Sustainability
Reporting Guidelines, and are summarised as follows:
PricewaterhouseCoopers Advisory SpA

Sede legale: Milano 20149 Via Monte Rosa 91 Tel. 02667201 Fax 0266720501 Cap. Soc. Euro 3.700.000,00 i.v. - C.F. e P.IVA e Iscrizione al Reg.
Imp.Milano n 03230150967 Altri Uffici: Bari 70122 Via Abate Gimma 72 Tel. 0805640311 Fax 0805640349 - Bologna 40126 Via Angelo
Finelli 8 Tel. 0516186211 - Firenze 50121 Viale Gramsci 15 Tel. 0552482811 Fax 0552482899 - Genova 16121 Piazza Piccapietra 9 Tel.
01029041 - Napoli 80121 Via dei Mille 16 Tel. 08136181 - Padova 35138 Via Vicenza 4 Tel. 049873431 Fax 0498734399 - Palermo 90141 Via
Marchese Ugo 60 Tel. 0916256313 Fax 0917829221 - Roma 00154 Largo Fochetti 28 Tel. 06570831 Fax 06570832536 - Torino 10122 Corso
Palestro 10 Tel. 0115773211 Fax 0115773299- Treviso 31100 Viale Felissent 90 Tel. 0422315711 Fax 0422315798 Trieste 34125 Via Cesare
Battisti 18 Tel. 0403480781 Fax 040364737 Verona 37135 Via Francia 21/C Tel. 0458263001
Societ soggetta allattivit di direzione e coordinamento della PricewaterhouseCoopers Italia Srl

www.pwc.com/it
156 157
comparing the economic and financial information and data reported in paragraph Lavazza Group
- financial-economic trend of the Report with those included in the Groups consolidated financial Conclusion
statements as of 31 December 2015 on which other auditors issued an audit opinion, in accordance
with article 14 of legislative decree n 39 of 27 January 2010, on 12 April 2016; Based on the work performed, nothing has come to our attention that causes us to believe that the
Sustainability Report of Luigi Lavazza S.p.A. as of 31 December 2015 has not been prepared, in all
analysing, through inquiries, the governance system and the process for managing the
material respects, in compliance with the G4 Sustainability Reporting Guidelines defined in 2013 by
sustainability issues relating to the Companys strategy and operations;
the GRI - Global Reporting Initiative as disclosed in the paragraph Note on methodology of the
analysing the process aimed at defining the significant reporting areas to be disclosed in the Report, Report.
with regard to the methods for their identification, in terms of priority for the various stakeholders,
as well as the internal validation of the process findings;
analysing the processes underlying the generation, recording and management of quantitative data
included in the Report. In detail, we carried out: Turin, 21 September 2016
meetings and interviews with management of Lavazza to achieve a general understanding of
the information, accounting and reporting systems in use to prepare the Report, as well as of
the internal control processes and procedures supporting the collection, aggregation, PricewaterhouseCoopers Advisory SpA
processing and submission of the information to the function responsible for the Report
preparation;
a sample-based analysis of the documents supporting the preparation of the Report, in order Signed by
to obtain evidence of the reliability of processes in place and of the internal control system
underlying the treatment of the information relating to the objectives disclosed in the Report; Paolo Bersani
(Partner)
analysing the internal consistency of the qualitative information described in the Report and its
compliance with the guidelines identified in the preceding paragraph Responsibility of the
Directors for the Report;
analysing the stakeholders engagement process with regard to the methods used and the analysis of This report has been translated from the original, which was issued in Italian, solely for the
the existing documentation concerning the significant matters arisen during the Companys convenience of international readers.
dialogue initiatives;
obtaining a representation letter, signed by the Chief Executive Officer of Luigi Lavazza S.p.A., on
the compliance of the Report with the guidelines identified in the paragraph Responsibility of the
Directors for the Report, as well as the reliability and completeness of the disclosed information.
Our limited assurance work was less in scope than a reasonable assurance engagement performed in
accordance with ISAE 3000 and, consequently, it does not provide us with a sufficient level of
assurance necessary to became aware of all significant facts and circumstances that might be identified
in a reasonable assurance engagement.
158 159
Lavazza Sustainability Report 2015 Glossary
Glossary Accountability
An organisation is accountable
called first-party audits, are
conducted by the organisation
Maintain the quality and
reproducibility of natural
if it is organised in such a way directly or on its behalf, for review resources;
as to provide its stakeholders by the top management and Guarantee well-being and
(see stakeholder) with periodic for other internal purposes, and opportunities for growth in
reports and communications on its can form the basis for a self- accordance with human and
approach, objectives and results. declaration of conformity. In many workers rights;
The level of accountability of an cases, particularly in smaller Generate income, profit, and
organisation and the content organisations, independence can stable and lasting jobs.
of its reports have a significant be demonstrated by the absence The Sustainability Report is a
impact on stakeholders perception of liability for the activities audited. voluntary document, so it is not
of the organisation, which in External audits include those that subject to any legal obligation.
turn affects its reputation. As are generically called second- There is, however, a standard
such, accountability provides party and third-party audits. that sets out its structure and
a foundation for building and Second-party audits are conducted contents, to ensure it provides the
strengthening trust between a by stakeholders, such as clients, or information in which stakeholders
company and its stakeholders. by other persons on their behalf. (see stakeholder) are interested.
Third-party audits are conducted The GRI standard (see Global
Environment (taken from by independent external auditing Reporting Initiative - GRI) is
UNI EN ISO 14001:2004) committees such as those that recognised on an international
The context in which an issue certificates of conformity level and used by leading
organization conducts business, to ISO 9001 and/or ISO 14001 organisations around the world for
including air, water, soil, natural standards, for instance. sustainability reporting20.
resources, plant and wildlife,
human beings and their Environmental aspect (taken Biodiversity
interactions. from UNI EN ISO 14001:2004) The variability between living
Any element of an organisations organisms within a single species
Audit (taken from UNI EN ISO business or products/services that (genetic diversity), between
19011:2012) can interact with the environment. different species and between
Systematic, independent and ecosystems. The Convention on
documented process for obtaining Sustainability Report biological diversity, approved by
audit evidence and to objectively A document drawn up periodically the European Community, affirms
assess the data, in order to in which an organisation analyses the need to anticipate, prevent
determine the extent to which the its social, environmental and and combat at the source the
audit criteria have been met. economic performance, describing causes of any significant reduction
Internal audits, sometimes its ability to: or loss of biological diversity, in
20
The EU Directive published on 6 December 2014 on disclosure of non-financial and diversity information by certain large companies and groups calls for listed and unlisted
European companies with more than 500 employees to publish a declaration annexed to the management report, no later than 2017, containing key information relating to at
least environmental, social and employee matters, respect for human rights and the fight against corruption. The directive is currently being transposed into national law by the
EU member states.
160 161
consideration of its intrinsic value methane (CH4), nitrous oxide through specific plants, and at for Corporate Social Responsibility, Greenhouse effect development.
as well as its ecological, genetic, (N2O), hydrofluorocarbons (HFCs), a limited scale, through house according to which CSR is a A natural effect, amplified by the Since its foundation in 1997,
social, economic, scientific, sulphur hexafluoride (SF6) and composters. process to integrate social, results of human activities, which the GRI has issued a series of
educational, cultural, recreational perfluorocarbons (PFCs). The tCO2e environmental, ethical, human regulates the ability of the Earths editions of its reporting standards,
and aesthetic values. (metric tonnes of equivalent CO2) COP21 rights and consumer concerns in atmosphere to withhold energy each representing an evolution
makes it possible to quantify the Paris Conference on climate to their business operations and from the sun through a semi- of the previous one to adapt
Organic greenhouse effect of these gases change held in Paris, France, from core strategy in close collaboration transparent layer consisting of to changing scenarios and to
Organic farming is a method with reference to the greenhouse 30 November to 12 December with their stakeholders, with the greenhouse gases that trap meet stakeholders expectations
of growing raw materials in effect produced by CO2, considered 2015 and organised by the United aim of: the suns rays. more effectively in terms of
compliance with a set of coded equal to 1 (e.g. methane has a Nations Framework Convention Maximising the creation of shared the information provided (see
principles, like the one forbidding greenhouse potential 25 times on climate change (UNFCCC). value for partners/ shareholders Energy saving stakeholder). The new edition
the use of chemicals in all stages higher than CO2, and therefore one The Conference has negotiated and for their other stakeholders A set of actions to programme, of the standard, the G4, which
of agricultural production. The tonne of methane is accounted for a global agreement in Paris to and society at large, through a plan and adopt energy-reducing focuses on the concept of
term organic is also used to as 25 tonnes of equivalent CO2). reduce climate change, which long-term strategic approach mechanisms, technologies and materiality, was released in
indicate a certification standard for The measurement of the carbon will become legally binding, if to CSR and the development of practices, without reducing output mid-2013 (see materiality).
agricultural raw materials, which footprint of a product or process ratified by at least 55 countries innovative products, services and or services offered.
guarantees that they come from requires in particular the that together represent at least business models; Green Procurement
supply chains that comply with the detection and quantification of the 55 percent of the global emissions Identifying, preventing and Non-renewable energy sources Incorporation of environmental
principles of organic farming. consumption of raw materials and of greenhouse gases. The parties mitigating their possible adverse Natural resources that tend to policies in the purchasing of
For companies operating in Europe, energy during select stages of the shall sign the agreement in New impacts. be depleted over a humanly products and services, while
the technical rules establishing the life cycle. York from 22 April 2016 to 21 April quantifiable time and from which factoring the environmental
characteristics of organic farming 2017, and even adopt it within Eco-design heat or electricity can be obtained. impact during their life cycle, from
are laid down in EU legislation. Code of Ethics their own legal systems (through Product design that has the Examples of non-renewable energy extraction of the raw material to
Moreover, supervisory bodies http://www.lavazza.it/it/mondo_ ratification, acceptance, approval lowest possible impact on sources include fossil fuels (carbon waste disposal.
authorised by the Italian Ministry lavazza/ethics.html or endorsement). the environment during and oil) and the minerals used to
of Agricultural and Forestry Policy manufacturing, use and disposal. produce nuclear energy (uranium). Environmental impact
also exist to carry out inspections Compostability CSR (taken from UNI EN ISO
on the farms and certify organic Property of biodegradable organic Corporate Social Responsibility Circular economy Renewable energy sources 14001:2004)
production processes. materials (food and grass shoots, Set of policies adopted voluntarily An economy in which the waste Natural sources capable of Any disruption of the environment,
manure, organic plastics, etc.) by a company to integrate social produced by a manufacturing generating thermic and electric whether negative or beneficial,
Carbon footprint (source: of being convertible into humus and ecological issues with its process circulates within the energy. These sources include solar caused entirely or partly by an
Ministry for the Environment compost when processed in commercial operations and economy by re-entering it energy, wind energy, biomass, organisations environmental
and Protection of Land and Sea) composting plants. relations with stakeholders. A directly or in another process. tides and ocean currents. aspects.
The carbon footprint is a measure company is socially responsible The following is the definition
that expresses the total emissions Industrial composting if it goes beyond its statutory of a circular economy provided Global Reporting Initiative (GRI) ISO 9001
in equivalent CO2 of greenhouse Controlled biological obligations by investing in human by the Foundation Ellen MacArthur: A non-profit, multi-stakeholder An international standard
gases directly or indirectly linked decomposition using oxygen, capital, the environment and a circular economy is an industrial organisation recognised at setting out the requirements
to a product, an organisation or a of organic waste. This process relations with its stakeholders. economy that is conceptually international level, whose mission of an organisations quality
service. generates a material similar to This is mirrored by the definition of regenerative and that reproduces is to establish guidelines for management system. The
In accordance with the Kyoto humus, named compost. The CSR in the European Commission nature by actively improving and preparing sustainability reports standard provides guidelines for
Protocol, greenhouse gases composting process can be Communication of October 2011 streamlining the systems it uses and to encourage their use as a improving efficacy and efficiency
include: carbon dioxide (CO2), realised at the industrial level A renewed EU strategy 2011-2014 to operate. way of contributing to sustainable in making a product and providing
162 163
services, and for enhancing performance in terms of energy that a given topic (economic, the certification from a third safety, and as expressed formally good working conditions, good
customer satisfaction and loyalty. efficiency and energy use management, social or party, and/or to define a self- by its top management. H&S relations within communities,
and consumption, through a environmental) has for the declaration, or as a guideline in policies provide a reference integrated waste management,
ISO 14001 systematic approach. company and its stakeholders (see order to establish, implement and framework in which to conduct integrated pesticide management,
International standard that stakeholder). Material issues are improve a management system for business and help define the monitoring, and the promotion of
identifies the requirements of an LEED those that reflect the organisations occupational health and safety. companys objectives in terms of peace.
environmental management LEED (Leadership in Energy significant economic, social health and safety.
system capable of identifying and Environmental Design) is a and environmental impacts or Scope Climate change -
and assessing the environmental system for classifying the energy substantially influence stakeholder With reference to sustainability Pollution prevention (taken Global Warming
aspects of an organisations efficiency and ecological footprint assessments and decisions. reporting, scope indicates the from UNI EN ISO 14001:2004) Expression used to indicate
business, products and services, of buildings in the United States, various entities (e.g. subsidiaries, Use of processes, practices, the increase in the average
with the aim of continually developed by the U.S. Green Organisation and Management joint ventures, suppliers) whose techniques, materials, products, temperature of the Earths
improving its environmental Building Council (USGBC). It Model (as per D. Lgs. 231/2001) performance is included in an services or energy sources to avoid, atmosphere and oceans due to
performance and the systems provides voluntary certification organisations sustainability reduce or control (separately or natural causes. It is also used as a
requirements. The standard can for buildings that demonstrate An organisational system, report. As reporting is voluntary, in combination) the generation, synonym for global warming and
be used to apply for certification their environmental sustainability established through an official the company can define its own emission or discharge of any is caused by anthropic contribution
from agencies and/or to issue in terms of energy and the company document, designed to reporting scope; the broader pollutant or waste, in order to occurring over a time-span of 100
a self-certification, or simply as consumption of all resources prevent cases of criminal liability the scope and if all or a large reduce negative environmental years.
a guideline to establish, enforce involved in the production process. established in Italian Legislative proportion of the companys impacts. Pollution prevention may
and improve an environmental Decree 231 of 8 June 2001. Under activities are included in it, the include reducing or eliminating Stakeholder and multi-
management system. Life Cycle Assessment the decree, organisations are more the company is accountable at the source, modifications to stakeholder
(LCA) subject to corporate liability (see accountability). a process, product or service, Stakeholders are groups or
ISO 22000 Methodology defined by the ISO for specific kinds of offences the efficient use of resources, individuals that are expected
A voluntary standard certifying 14040:2006 standard. The LCA is committed by administrators and Environmental policy (taken replacement of materials or energy to be significantly affected by
safety management system in an objective process for assessing employees in the interest or for the from UNI EN ISO 14001:2004) sources, reuse, recovery, recycling, the activities, products and/
the food sector. It is applicable to the environmental effects of a benefit of the organisations. The set of intentions and reclamation and treatment. or services of the organisation
all companies operating directly product, process or activity, carried guidelines of an organisation or whose actions can influence
or indirectly in the food and out by identifying and quantifying OHSAS 18001 (Occupational insofar as concerns its Rainforest Alliance the organisations ability to
agricultural sector, including energy, materials used and waste Health and Safety Assessment environmental performance and Rainforest Alliance is a successfully implement its
packaging manufacturers, and released into the environment in Series) as expressed formally by its top nongovernmental organisation strategies and reach its objectives.
aims to assess and demonstrate order to assess their impact and to International Standard identifying management. Environmental founded in 1986 to preserve In accordance with the AA1000SES
product compliance and food identify and grasp opportunities the criteria for a Management policies provide a framework biodiversity, improve the living standard (developed by the UK-
safety, while also guaranteeing for environmental improvement. System for Occupational Health in which to conduct business conditions of farmers and promote based organisation Accountability
effective control of risk factors. The assessment includes the entire and Safety. This system should and help define the companys sustainable farming practices and recognised as an international
life cycle of the product, process or identify the dangers and risks of environmental objectives and (www.rainforestalliance. org). The benchmark), an organisation may
ISO 50001 activity, including the extraction activities, products and services of goals. certification standard is based on give priority to its stakeholders
International Standard specifying and processing of raw materials, an organisation in order to ensure compliance with the following or groups of stakeholders based
the criteria necessary to create, production, transportation, the continuous improvement Health & Safety policy (taken nine principles: protection of on the relevance of each of
maintain and improve an energy distribution, use and final disposal. of the safety performance as from OHSAS 18001:2007) local flora and fauna, protection them. Relevance is an attribute
management system. This system well as the compliance with the The set of intentions and of ecosystems, protection of the determined by a joint assessment
should enhance an organisation Materiality above-mentioned criteria. This guidelines of an organisation soil, protection of water resources, of the degree of dependency,
to improve continuously its Materiality means the relevance standard can be used to obtain insofar as concerns health and fair treatment of workers and influence, and priority that
164 165
each stakeholder has with the Intermodal transport or services made available to
organisation, or other aspects The use of two or more employees as a way to reconcile
that characterise the relationship transportation methods on a given their job and private life.
between the stakeholder and the route. An example is intermodal
organisation. transport on land, i.e. road-railway,
Through the multi-stakeholder in which a cargo unit (container,
approach, a given topic is mobile crate, and semi-trailer
addressed with the involvement truck) travels a part of the route by
and collaboration of entities railway and another part (or more)
that have different interests in on road.
the topic and therefore different
requirements. Examples of these Staff turnover
stakeholders could be the various Staff turnover is the ratio between
entities in a production chain, staff joining the organisation and
representatives of institutions, those leaving it.
companies and non-profit
organisations, etc. UTZ
UTZ is a non-profit association
Sustainability and Sustainable based in Amsterdam, founded
Development in 2002 to promote sustainable
The most common definition farming. The certification standard
of the concept of sustainable is based on principles such as
development is contained in the transparency of commercial
the Brundtland Report of practices, the traceability of raw
the World Commission on materials and compliance with ILO
Environment and Development conventions (www.ilo.org).
(named after its chairman Gro The name of the association
Harlem Brundtland), produced in derives from Utz kapeh, which
1987. Sustainable development means good coffee in the Mayan
indicates a development model language Quich.
that meets the needs of the
present without compromising Corporate welfare
the ability of future generations System of voluntary services
to meet their own needs. provided by a company in favour
Sustainability is therefore an of its employees, in response to
approach (to society as well as their specific needs and economic/
to business) orientated towards social interests. The term by
guaranteeing a balance between extension includes a very broad
current and future needs, and range of services, such as benefits
balancing economic and financial on social security and insurance
requirements with social and needs (e.g. a contribution to
environmental needs. a healthcare plan) and goods
166 167
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Sustainability

Sustainability Report CONTENTS

Tradition, evolution and revolution in producing countries

1.3 Business values, value of the business 38

3.3 Monitoring and audits on suppliers 93

development Lavazza objectives 2016-2018

GRI CONTENT INDEX

5.1.5 Occupational Health and Safety 142

Lavazza stakeholders and main

Press&Digital Definition of communication strategies

Human Resources Training programmes

Materiality matrix HIGH

Customer Health and Safety

Quality of Green Profitability and economic value

Occupational Health and Safety

RELEVANCE FOR STAKEHOLDERS

Relationship with suppliers

RELEVANCE FOR THE COMPANY RELEVANCE FOR THE COMPANY

LOW MEDIUM HIGH

Luigi Lavazza S.p.A.

Over the course of 2015, Lavazza continued pursuing

1.1 2015: the year of sustainability

Evolutions and revolutions The futuristic Lavazza Innovation

Luigi Lavazza creates 12.44 p.m. May 3, 2015: Thanks to

opened, at the time the

at the Universal Exhibition in Milan International, Lavazza presents an

30 September - 1 October: The first

In partnership with Argotec, Global Coffee Forum

December: Lavazza participates in

Towards a sustainable Expo

Lavazza Sustainability Hub

Within the Sustainability Hub, in addition to the launch of the

During the Expo, the Sustainability

2015: the internationalisation process at Lavazza

20% Carte Noire, Frances leader in the retail market with

From coffee grounds to edible mushrooms

Since 2008 Lavazza, with partners of following a procedure tested in France by

Espresso conquers space Cappuccino Bite

Because of these special properties ESA,

12.44 p.m. the European Space Agency, chose

May 3 during space missions in Europe, offering

was enjoyed in space

Lavazzas participation in COP21 together with

1.2 Growing economic engagement in sustainability

Luigi Lavazza S.p.A. brands sold in Italy

Single Serve Roast&Ground

+4,2%Energy, packaging and waste reduction

Sustainability as an opportunity to create value

ndus ood chain

sustainable context in which both has continued to invest heavily in

the Company and stakeholders improving the efficiency of

inf TZ a U form ien

Lavazza Group - financial-economic trend k 2015 2014 2013

Direct economic value 2.323.046 1.405.637 1.361.904

2.1 Fondazione Giuseppe e Pericle Lavazza

Fondazione Giuseppe e Pericle Lavazza Onlus was first

2.2 Project overview 2.

The projects focus on two key tools: 6.

2.3 The importance of teamwork 19

The project partners, representing approximately

Slow Food Save the Children

2.4 Performance in 2015

2013-2015 projects India (2)

Peru (1) Brazil (3) Tanzania (2) Uganda (2)