1. Introduction from the Managing Director of Lavazza UK

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, attention to the environment, respect and promotion of human rights 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 1.87 million Euros (Group Financial Report 2018).

 

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 ltalian and French 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 three factories, 2 located in italy (Settimo Torinese and Gattinara) and 1 in France (Laverune). 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 centra! 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 modem 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 our 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 documents are publicly available at https://www.lavazza.com/en/about-us/company.html. Moreover, we issue the Sustalnability Report on an annual basis and share it with our suppliers. The Sustainability Report is available at https://www.lavazza.com/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, which all Lavazza suppliers are bound to accept and comply with. In addition to that, an important role in the compliance and corporate governance processes is played by the Supervisory Board. The Supervisory Board has independent powers of initiative. It controls and supervises the compliance with Lavazza's Model of organization, management and control, enforcing its provisions and as required by ltalian Legislative Decree n. 231/2001. The recipients of the Lavazza's Model of organization 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, Lavazza 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

  • The Lavazza Group has been undertaking a significant journey towards Corporate Social Responsibility's topics. Lavazza believes in the importance of walking the path with Lavazza's suppliers, in order to reach challenging goals by sharing common values. In this context, Lavazza decided in 2017 to review its Supplier Code of Conduct which has been updated with the December 2017 edition. This Code has been drafted with the fundamental contribution of Lavazza's reputable partners, specialized on topics of Sustainability and Human Rights:
  • ·ITC ILO (International Training Centre of the International Labour Organization);
  • ·Oxfam Italia Onlus;
  • ·Save the Children Italia Onlus;
  • ·OECD (Organisation for Economic Co-operation and Development).

On this basis, the Lavazza group is fully committed to a have zero tolerance policy to slavery and human trafficking (Lavazza Supplier Code of Conduct, section 4.4 - Prevention of Forced Labour). 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 (Lavazza Supplier Code of Conduct, section 6.3 - Remedies).

 

8. Training

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. VVe 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 Anii-bribery.

Moreover, Lavazza has been a partner of the organization "Save the Children" for 15 years. In 2017 a number of Lavazza employees from different Departments (Public Relations, Marketing, Purchasing, Human Resources, Legal) engaged with the organization in a training workshop about "Children Rights and Business Principles” focusing on the importance of integrating human rights issues in the daily business activities. On the basis of this workshop, many different programs have been developed between Save the Children and Lavazza Departments in order to concretely put in practice the Children Rights and Business Principles.

 

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, since 2016 all our green coffee suppliers are asked to acknowledge and confirm that no coffee for Lavazza is sourced neither from plantations included in the "Transparency List on Contemporary

 

Slavery in Brazil” issued by Danwatch, nor from plantations or suppliers that tney know may not fully abide by the law. We clarified that coffee coming from those sources could not be shipped to Lavazza. Moreover, in 2018 Lavazza started a partnership in China with its major coffee machine suppliers and Save the Children in order to develop a child labour prevention program, as well as initiatives to support migrant workers and young workers in our supply chain.

 

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.

In accordance with the principles of Lavazza Supplier Code of Conduct, children's rights and child labour are very important topics for Lavazza. In this respect, in collaboration with Save the Children we wanted to highlight the reasons in a webinar open to all Lavazza's Supplier that was broadcasted in November 2018. Lavazza is planning other webinars on Human Rights related issues.

In order to verify their ability to actually comply with the principles of the Lavazza Supplier Code of Conduct, we are developing a Corporate Social Responsibility questionnaire aimed at evaluating the suppliers in the pre-qualification phase. This activity also includes the definition of an audit program for the next 2 years (including the formalization of audit plans and checklists and the statistical evaluation and reprocessing of the outputs of the questionnaires and audits).

 

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 2018.

 

David Rogers

Managing Director Lavazza (Coffee) UK 

 

Date: 24th April 2019