1. Introduction from the Managing Director of Lavazza UK
We are proud of the steps we have taken to combat slavery and human trafficking.
The Lavazza group is committed to develop its business in a sustainable way. Lavazza adopts a holistic approach to sustainability based on the values that have guided the group’s development for more than 120 years.
Transparency, quality, innovation, respect and promotion of human rights, attention to the environment, are the pillars on which we base our approach to sustainability.
We are therefore committed to combat slavery and human trafficking.
2. Organisation's structure
Lavazza Coffee (UK) Ltd is a distributor in the coffee and hot beverages sector.
We are a part of the Lavazza Group, and our ultimate parent company is Luigi Lavazza S.p.A., an Italian coffee roasting company owned by the Lavazza Family having its head office in Turin, Italy. The Group has over 3,000 employees worldwide and operates in more than 90 countries either with local affiliated companies or with a wide network of commercial partners.
The Group global annual turnover is 1.473 million Euros (Group Financial Report 2015).
3. Our business
Our business in UK is organised into one business unit covering three business channels across Retail, Foodservice and Office Coffee Services.
4. Our supply chains
Lavazza Coffee (UK) supply chain is for the vast majority based on the coffee supplied by the Parent company Luigi Lavazza S.p.A.
Luigi Lavazza purchases the 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 to the manufacturing plants for production. The other raw materials come from different suppliers, mainly based in Italy. The finished product is manufactured in two factories located in Piedmont (in Settimo Torinese and Gattinara). The coffee is decaffeinated in a factory located in Pozzilli (Italy). The Other products sold by the group come from a variety of sources, with a significant component of coffee machines produced in Italy, Poland and China.
The distribution is organised with 3 major logistics centres in Italy and a central warehouse for each local subsidiary. All transfers between warehouses are performed with saturated means of transport and relying on intermodal transport whenever possible. Secondary distribution is entrusted to specialised logistics operators.
5. Our policies on slavery and human trafficking
We are committed to ensuring that there is no modern slavery or human trafficking in our supply chains or in any part of our business. Our policies (both internal and towards suppliers) reflects our commitment to acting ethically and with integrity in all our business relationships and to implementing and enforcing effective systems and controls to ensure slavery and human trafficking is not taking place anywhere in out supply chains.
We ensure that all our suppliers receive and accept the provisions of the Lavazza Code of Ethics and the Lavazza Supplier Code of Conduct, both publicly available at https://www.lavazza.co.uk/en/about-us/company/code-of-ethics.html.
Moreover, we issue the Sustainability Report on an annual basis and share it with our suppliers. The Sustainability Report is drafted according to the GRI standard in its latest version, G-4. Lavazza’s 2017 Sustainability Report is available at https://www.lavazza.co.uk/en/sustainability/the-report.html.
6. Due diligence processes for slavery and human trafficking
As part of our initiatives to identify, assess and mitigate risk areas in our supply chains (including the risk of slavery and human trafficking) we perform periodic audits on our suppliers. The audits are performed on suppliers of materials, machinery and subcontracted works. The audits involve both new and old suppliers, within the framework of a joint initiative between the Lavazza Purchasing and Quality Departments. The audits are conducted according to the principles of the Lavazza Supplier Standard Requirements.
In addition to that, a key role in corporate governance processes is played by the Supervisory Board and the Internal Audit Department.
The Supervisory Board has independent powers of initiative. It controls and supervises the compliance with Lavazza’s Model of organisation, management and control, enforcing its provisions and as required by Italian Legislative Decree n. 231/2001.
The Internal Audit Department, reporting directly to the Board of Directors, is responsible for implementing an effective auditing system within the Company.
The recipients of the Lavazza’s Model of organisation must inform the Supervisory Board of any conduct that would result in a violation of the provisions of the Decree, the Model and/or the Code of Ethics, as well as any specific offences they come to know. To ensure they do, the Company has established a communication channel for employees to report to the Supervisory Board i.e. a dedicated e-mail address. The Supervisory Board ensures that anyone submitting a report is protected against any form of retaliation, discrimination or detriment.
7. Supplier adherence to our values and ethics
We have zero tolerance to slavery and human trafficking. To ensure all those in our supply chain and contractors comply with our values we require our suppliers to acknowledge and comply with the provisions of the Lavazza Code of Ethics and the Lavazza Supplier Code of Conduct.
In the event additional or corrective actions are required, Lavazza directly engages with its suppliers requesting the implementation of effective improvement plans.
To ensure a high level of understanding of the risks of modern slavery and human trafficking in our supply chains and our business, we provide training to our staff. We also require our business partners to provide training to their staff and suppliers and providers.
A training session on Corporate Social Responsibility is part of the Lavazza training curriculum for all employees as well as training on the Legislative Decree No. 231/2001 focusing on anti- corruption and anti-bribery.
Moreover, Lavazza has been a partner of the organisation “Save the Children” for 15 years. In 2017 we will further engage with the organisation through a training workshop about “Children Rights and Business Principles” involving representatives of all the company’s Departments.
9. Our effectiveness in combating slavery and human trafficking
Lavazza is a company committed to fully respect internationally recognized human rights, international and national labour laws and environmental principles. We engage in a continuous dialogue with our suppliers to share the ethical values characterizing our way of doing business along the entire supply chain and to ensure that no slavery or human rights violation of any kind is perpetrated along our supply chain.
On the basis of these principles and those expressed in the Lavazza Supplier Code of Conduct, in 2016 we asked our suppliers to acknowledge and confirm that no coffee for Lavazza was sourced neither from plantations included in the “Transparency List on Contemporary Slavery in Brazil” issued by Danwatch, nor from plantations or suppliers that they know may not fully abide by the law. We clarified that coffee coming from those sources could not be shipped to Lavazza.
10. Further steps
Following a review of the effectiveness of the steps we have taken to ensure that here is no slavery or human trafficking in our supply chains we intend to take the following further steps to combat slavery and human trafficking:
The above-mentioned workshop on “Children’s rights and Business Principles” by Save the Children will produce recommendations and suggestions on how to ensure that no human rights are violated along our value chain. Following those recommendations, we will furtherly engage to ensure that no slavery or human trafficking is perpetrated in our supply chain.
This statement is made pursuant to section 54(1) of the Modern Slavery Act 2015 and constitutes our Group's slavery and human trafficking statement for the financial year ending on 31 December 2016.
Managing Director Lavazza (Coffee) UK
Date: 8th February 2017