Introduction to Illy

Founded in 1933, Illy is an Italian premium brand specializing in the sale of high-quality coffee pods. The brand was created to offer high-quality coffee, in Italy and around the world. But over time, they had to deal with sustainability challenges. They then started their sustainability program with direct sourcing and support to producers, with specific projects in their territories.

Illy makes you skilly

Criteria

Carbon Footprint, High

Illycaffè has set an ambitious goal to achieve carbon neutrality by 2033, on the occasion of the company’s 100th anniversary. To achieve this goal, Illycaffè has developed a comprehensive decarbonization roadmap in partnership with Quantis, a consulting firm specialized in assessing, planning, and transforming the environmental impacts of businesses.

Ecological Impact, Medium

Illy may prioritize using biodegradable materials for their pods or packaging, minimizing their ecological impact. Furthermore, the company is working on initiatives aimed at reducing its impact on the planet, such as preserving biodiversity through the “Viveiro de Atitude” program, which aims to develop environmental education in Brazil to protect coffee culture in Colombia.

Energy Consumption, Medium

Illy has developed and continues to develop initiatives to reduce its energy consumption. Key initiatives include improving energy efficiency, transitioning to renewable energy sources, optimizing logistics and transportation, and increasing the use of recycled materials.

Freight Density, No information

We couldn’t find reliable information about this topic.

Recycling Rates, High

Illy has implemented programs to encourage consumers to recycle their coffee pods, aiming to reduce pollution and waste. Additionally, the company has introduced two types of recycling bags, one for recycling plastic pods and the other for recycling aluminum pods. Unfortunately, the current recycling bags cannot be recycled due to their contact with liquids, labels, and other complex materials, but they are recovered from waste and used to create energy.

Saving Levels, Medium

Illy is striving to eliminate approximately 175 tons of plastic per year through its #ONEMAKESTHEDIFFERENCE initiative, which aims to develop more environmentally friendly products.

Specific Product Monitoring, High

Illy has taken several measures to improve the sustainability of its pod coffee offerings as well as its machines.

Example:

The brand has launched a new X1 ESE & Ground coffee machine compatible with compostable paper pods. This machine features energy-saving technologies such as an “eco mode” for fast heating and an automatic standby mode to reduce energy consumption. Additionally, Illy’s compostable ESE paper pods are designed to preserve the quality of Illy’s 100% Arabica coffee blend while reducing waste.

Supply Chain Waste, Medium

Illy aims to assess and address waste and sustainability issues throughout its supply chain by working with suppliers to minimize environmental impact, developing recyclable coffee pods, using aluminum to make new products, and transforming coffee grounds into compost.

Sustainability Scorecards, Medium

Illy has taken steps to integrate sustainability and reduce its environmental impact. In 2021, it became a Benefit Corporation and obtained B Corp certification in 2021.

Water Management, Low

Starting in 2013, illycaffè has improved its water management. The total volume of water withdrawn amounted to 48,909 cubic meters (up 35.8% from 2016), while the quantity of wastewater discharged into the sewer in 2017, estimated based on the quantity withdrawn, was 32,215 cubic meters. Unfortunately, a lack of transparency is to be reported as no information has been shared in recent years.

Illy

Conclusion

Overall, Illy has implemented various sustainability measures to minimize their environmental footprint and promote sustainable practices within their industry, but there are areas where further improvements and transparency could enhance its environmental performance.

Illy achieved a score of 2.75/5 for the criteria analyzed, making it an average sustainable pod coffee industry. Nevertheless, it maintains a roadmap to follow in the years ahead.

Related to other brands

Number of criteria met by each brand:

ESCP Business School Team

Research developed by five curious international ESCP Business School students who have worked together to successfully complete their consulting project. They analysed four brands in four different categories -20 brands: sneakers, pod coffee, jeans, makeup, and chocolate, according to 10 environmental criteria.

Sources