THE FIRST CUVÉE 2021 SUSTAINABILITY REPORT
2021 Sustainability Report GUIDO BERLUCCHI & C. SPA Piazza Duranti, 4 25040 Borgonato (BS) Italy
LETTER TO STAKEHOLDERS
2021 was once again a “founding” year for Guido Ber- lucchi: a year full of milestones and achievements, but indelibly marked by the demise of our father Franco, who passed away on 26 December at the age of 90. The acknowledged “founding father” of Franciacorta and creator of the first bottle in 1961, Franco Ziliani forever changed the fortunes of the whole area, giving rise - with his spark of visionary brilliance - to what is now recognised in Italy and abroad as one of the world’s most outstanding winegrowing regions. In 2021, we celebrated his 90 th birthday and at the same time the 60 th anniversary of his vision: that first bottle of Franciacorta produced in 1961 and that still today – in everyone’s memory – rests in our historic cellars in Borgonato (BS). Our father guided the busi- ness through decades of profound changes in Italy, first together with Guido Berlucchi and then accom - panying and supporting us, his children, fostering that spirit of research and renewal that underpins the pres- ent-day success of Guido Berlucchi. Already in the late 1990s, ahead of our time, we exper- imented with new approaches to production - both in the vineyard and in the winemaking cellars - innovat- ing our production and expanding into new markets.
But we have continued to hold fast to our goal of pro- ducing quality Franciacorta, respecting the territory and looking after our people, who every day live and breathe the values that the organisation embodies and are our frontline ambassadors. This commitment to care is most naturally expressed in sustainability, and it is the underlying reason for preparing this 2021 Sustainability Report - the third one - where we describe, explain and publish our actions. We began charting the organisation’s course in 2007, focusing heavily on the management of the environ- mental and social impact generated by our operations, in 2013, we started converting to organic, which was completed and certified in 2016. In 2019, we com - menced systematically gathering the data necessary to prepare our first Sustainability Report, in 2020. In 2021, we continued to consolidate the hallmarks of our modus operandi, turning them into our strate- gic guidelines: adopting a people-centred approach, promoting the local territory and protecting natural resources. At the same time, we worked to strengthen our sustainability governance. The ongoing pandemic has forced us to keep the robust safeguards in place
for our employees, both through training, and by re- viewing procedures and continuously monitoring their application. The health and safety of our workers is a priority for us, not only during this emergency, and we have proceeded to improve our day-to-day oper- ations by commissioning a leading consulting firm to conduct an audit of our Occupational Health & Safety and Environment procedures. After the audit, which revealed sound management of those topics, we es- tablished the position of HSE supervisor to coordinate everyone in our organisation involved in this area. 2021 also marked the in-person return of Academia Berlucchi, the project - now in its 3 rd year - we set up to foster and share ideas and proposals on themes con- nected with Sustainability, Care for the Territory and Innovation, for a vision of a more sensitive and resilient future. This culminated in a concert by Stefano Bollard at Brescia's Teatro Grande - the proceeds of which were donated to the “Food for Soul” charity founded by Lara Gilmore and Massimo Bottura. An occasion when all of our team members were invited to share our joy for the milestones achieved during the year, or more simply to celebrate the 60 th anniversary of the first bottle of Franciacorta and the 90 th birthday of its creator. In 2021 we also continued our commitment
to sharing our Sustainable Viticulture Protocol with our suppliers, with whom we worked hand in hand. Thanks to this continuous, overarching commitment, we proudly achieved one of the most coveted goals for our industry: at the end of 2021 we were named Win- ery of the Year 2022 by the prestigious Gambero Rosso “for making history in the Italian classic method”. This award celebrates the care that everyone, in every field and department, puts into their work: together, WE ARE the Winery of the Year! And – for the very first time – we made it into the ranks of the great international wines, earning ourselves a place as one of Wine Spectator ’s Top 100 wines of 2021. We were recognised at the heights of excellence not only for our wines, but for the concerted nature of our work; we therefore wanted to dedicate this impor- tant milestone to our father, Franco Ziliani, who, as a tenacious Brescian, taught us never to give up. So many other things were accomplished this year, a notewor- thy one for us, and you will find them described in this document.
Happy reading!
The Ziliani Family
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3. STEWARDS OF THE LAND Our approach to the environment Sustainable agricultural practices Managing environmental impact
Letter to the stakeholders
2 6
The first cuvée - How to read this Report
47 48 56
1. OUR STORY IN THE MAKING About us
10 26 28 30
4. TREASURE TROVE OF TALENTS High-quality jobs
The value chain
Economic sustainability The governance model
67 70
Health and safety
2. ACCOUNTABLE BY NATURE Sustainability, a global need Our sustainability strategy
5. BUILDING RELATIONSHIPS Our suppliers
34 40 41
75 76 79
Our customers
The most relevant SDGs for our business
Relations with communities
Report drafting process
82 84
Appendix
CONTENTS
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THE FIRST CUVÉE HOW TO READ THIS REPORT
The first sustainability report, covering the 2019 fi - nancial year, was symbolically called “The First Har- vest”, an opportunity to reap the rewards of a year’s work. We decided to call the second one “The First Pressing”, the next stage of the Franciacorta Method. In fact, we have described the part we play in cre- ating and developing a winegrowing region globally recognised for its excellence, as well as everything we continue to do to be increasingly sustainable in each and every aspect of our work.
This Report for the 2021 financial year is the final part of the first three-year period documenting our commitment to sustainability: an ongoing commit- ment that, just like in a cuvée, is built on the work that has gone before and needs many things to come together for a perfect result; in the case of the Report, the work of multiple people with the con- tribution of every department, able to collaborate thanks, in part, to the governance structure that we built up over the preceding years.
The third edition of the Guido Berlucchi & C. Spa Sustainability Report was also prepared in accordance with the “GRI Standards” defined by the Global Reporting Initiative (GRI), and reports the results obtained between 1 January and 31 December 2021.
SUBSIDIARIES
99% Agricola della Franciacorta Società Agricola srl
100% Caccia al Piano 1868 Società Agricola srl
77% Antica Cantina Fratta Spa
Guido Berlucchi & C. Spa holds equity stakes in three other companies: Agricola della Franciacorta Società Agricola srl (99%, from 1 July 2021), Caccia al Piano 1868 Società Agricola srl (100%), and Antica Cantina Fratta Spa (77%), which operate in accord- ance with the same sustainability principles and are included in the sustainability development plan with targeted actions suited to the individual con- text. The first is engaged in winegrowing and grape processing and Guido Berlucchi has been the main purchaser of its products since it was established
(some figures in the report are actually shown in ag - gregate form).
The other two operate with their own specific pro - duction organisation, distributing products under their respective brands. We preferred not to con- solidate the facts and figures, leaving it up to the companies to independently communicate specific information on how they manage sustainability is- sues internally.
Additional information on the preparation of this report can be found in the “Report Drafting Process” section on page 82.
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OUR STORY IN THE MAKING Everything exuded refinement without pretention. The count closed the instrument, greeted me warmly, and began to question me, a young winemaker, about how to improve his unstable white wine. I answered his questions without hesitation, and as I was leaving, I dared to suggest: “What if we were also to make a sparkling wine in the French style?” Franco Ziliani, President of Guido Berlucchi 1 The butler escorted me into the living room of Palazzo Lana Berlucchi. The notes of “Georgia on my mind” resonated in the air: Guido Berlucchi was at the piano. (...)
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ABOUT US
Overview
Guido Berlucchi & Co is the founder and linchpin of Franciacorta ; this is where the expert hands of Franco Ziliani and Guido Berlucchi crafted the territory’s first Metodo Classico in 1961 : the first Franciacorta. In 2021, we celebrated our 60 th anni- versary , under the guidance of the founder’s three children: Cristina, Arturo and Paolo , who have led it into the new millennium, perpetuating their father's mission and adding value to a brand that is now rec- ognised worldwide . Firmly rooted in its terroir, it has played a key role in kick-starting the rebirth of the area known as Franciacorta, protecting it from overbuilding, and helping to create a prestigious image of Franciacorta in Italy and around the world, combining innovation and respect for tradition, and embodying the very essence of sustainability. It is one of the very few winegrowing estates that has been measuring its carbon footprint for more than ten years, with ISO 14064 certification. It is also one of the few Italian estates to define and implement its own Sustainable Vineyard Management Protocol, which it applies directly and shares with its wine- growing partners. Additionally, for the past three years it has been leading the cultural debate in Franciacorta with Academia Berlucchi , an initiative that links Knowl- edge, Business Cultures and Visions and each year brings together individuals from different fields of knowledge to discuss key issues.
PEOPLE
WINERY
ENVIRONMENT
6,568 metric tons of CO 2 equivalent (tCO 2 e) emitted
1680 construction of the Historic Cellar
107 permanent employees
1961 the Berlucchi Winery produces the first bottle of classic method wine in the area: the first Franciacorta
1,081 training hours 37% in classroom
20% of electricity from owned solar PV system
115 hectares of directly managed vineyards 1
42% women
100% Lombardy suppliers for hospitality (96% in the province of Brescia)
30 countries of distribution
85% Lombardy suppliers of packaging and hospitality
15,000 square metres of underground cellar
60% Lombardy suppliers
47.5 million euro in revenues
of packaging for finished products
4 million bottles produced 2
35 seasonal workers
20,000 visitors a year 3
60 years of history of the Berlucchi Metodo Classico
450 hectares of vineyards cultivated by partners
1. Including the vineyards of Agricola Della Franciacorta sa srl 2. Average for the last three-year period 3. Refers to the period before 2020, prior to the Covid-19 pandemic
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Our certifications
Awards
GREENHOUSE GAS EMISSIONS (Carbon Footprint) - ISO 14064-1:2019, through the Italian Wine Carbon Calculator (Ita.Ca ® ). Certificate issued by CSQA on 22/10/2021, with Ver - ification Statement 76606, number 166830/2/0/ VIC-21-06-2018.
ORGANIC PRODUCTION Certification Organic Management of estate vine - yards (Operator code 1730, Control Body code IT- BIO-015, Supporting document S07-21/099).
SUSTAINABILITY AWARD In 2021, Berlucchi was named one of the top 100 companies in the Sustainability Award (https://sus - tainabilityaward.it), for excelling in the launch and implementation of sustainable and inclusive devel- opment processes, with the aim of generating value for stakeholders and the community.
WINERY OF THE YEAR In 2022, we were named Winery of the Year 2022 by Gambero Rosso - a leading Italian editorial group recognised worldwide for wine, gastronomy, and food culture - for “ Making history in the Italian clas - sic method ”. A particularly significant award because we have been recognised at the pinnacle of excel- lence not only for our wines – whose undisputed quality was confirmed again in 2021 by the 3 Bicchie- ri (3 glasses) awarded by Gambero Rosso to '61 Fran- ciacorta Nature 2014 – but for all of our hard work.
GLOBAL WINE POWER INDEX 2021 Our winery was named one of the 3 TOP Brands of Italian wine , according to the international survey rankings by Wine Intelligence: “Global Wine Brand Power Index 2021”.
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A year full of accomplishments
The awards our wines received in 2021
2021 was a particularly successful year, with the quality of Berlucchi Franciacorta wines being reconfirmed by Italian and international critics. In particular, Wine Spectator , the industry's most prestigious international wine magazine, awarded 93 points to Berlucchi Palazzo Lana Extreme 2009 , the highest score given to an Italian classic method sparkling wine in 2021, and included Berlucchi ’61 Rosé in its 2021 ranking of TOP100 Italian Wines .
61 Nature Blanc de Blancs 2014 5 grappoli Bibenda (FIS)
61 Nature 2014 3 bicchieri Gambero Rosso 95 points Wine Enthusiast (USA)
WINE SPECTATOR
93 points Berlucchi Palazzo Lana Extreme 2009
Berlucchi ’61 Rosé TOP100 Italian Wines 2021
Palazzo Lana Extreme 2010 Faccino by Doctor Wine, Tre stelle d’Oro by Veronelli, 5 grappoli Bibenda (FIS) & Quattro Viti Vitae (AIS)
61 Nature Rosé 2014 95 points Wine Enthusiast (USA) and 93 points Falstaff (Germany)
Palazzo Lana Extreme 2009 93 points James Suckling and 96 points (Gold Medal) at the Decanter World Wine Awards 2021
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A land, a vision, a history
Our family-run business was founded in 1955 by Guido Berlucchi, Franco Ziliani and Giorgio Lan - ciani. Their encounter changed the fate of an en- tire region, making it the most prestigious area for Metodo Classico production . As far back as the 13 th century, several monasteries in Franciacorta, who were landowners here, pushed for land reclamation and agricultural redevelop- ment. In spite of this, the agricultural yield in Franci- acorta continued to be poor until after World War II, and its renaissance began in 1961 with the first bottle of Guido Berlucchi’s Classic Method wine. Berlucchi introduced and shared expertise that had not exist- ed in Franciacorta until then, inspiring many oth- er passionate, far-sighted producers to follow suit.
Together, they have turned this region into a crown jewel of Italian winemaking. Our estate is located in the small hamlet of Borgonato di Corte Franca and continues to be a driver of growth for the local area, protecting the countryside from the onslaught of industrial development. The founder, Franco Ziliani, was a dedicated leader of the organisation for 60 years and has now hand- ed the baton over to the new generation. His chil- dren Cristina, Arturo and Paolo, already members of the Board of Directors for 20 years, run the business jointly, sharing their father’s passion for quality and the desire to preserve the land and its resources for future generations, who are already making their mark in the organisation.
• We celebrate the 60 th anniversary of the first bottle of Franciacorta • Guido Berlucchi becomes one of Wine Spectator’s Top100 • We’re named Winery of the Year 2022 by Gambero Rosso
The ancestor to today’s Franciacorta, Pinot di Franciacorta (then known as méthode Champenoise), is born in the Guido Berlucchi Winery
The Berlucchi family’s
Berlucchi adopts sustainable winegrowing practices
Berlucchi obtains organic certification for all our own vineyards
winegrowing record book dates back to 1879
Franciacorta becomes a DOC wine
Franciacorta obtains the DOCG mark
Death of Guido Berlucchi
1999
2009
2020
2021
2004
1955
1962
1990
2000
2007
2016
2021
1879
1961
1967
1995
Guido Berlucchi and Franco Ziliani meet
Year of the first Classic Method Rosé: Berlucchi Max Rosé
Replanting of the Berlucchi vineyards
Berlucchi publishes its first Sustainability Report, for 2019
26/12/2021 death of the father of Franciacorta Franco Ziliani
Founding of the Franciacorta Consortium
First harvest of Riserva Palazzo Lana
First harvest of the Millesimato ‘61 Nature
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THE BIRTHPLACE OF BERLUCCHI
FRANCIACORTA — SNAPSHOT 2021*
Franciacorta is a hilly territory of about 259 square kilometres , consisting of 19 municipalities in Lom- bardy, in the province of Brescia, south of Lake Iseo. Doge Francesco Foscari first determined its borders in 1429. The same borders still mark the areas subject to the 1967 Production Regulations (which became DOCG in 1990). The Regulations lay down strict rules and are essen- tial for ensuring the uniqueness of our products. We are members of the Consortium for the Protection of Franciacorta , established on 5 March 1990 to guaran- tee and monitor compliance with the Production Reg- ulations for Franciacorta - the classic method wine
- and Curtefranca - the still wine - both produced in Franciacorta -, in addition to calling attention to the wines themselves and the production region. In 1968, Franciacorta obtained the Denominazione di Origine Controllata (DOC) mark of controlled ori- gin, then in 1995 Franciacorta became the first Classic Method wine to be recognised with the Denomi- nazione di Origine Controllata e Garantita (DOCG) mark of controlled and warranted designation of ori- gin: a winemaking phenomenon, in part thanks to its Production Regulations, some of the strictest in the world in terms of yield requirements and length of the ageing time.
259 Km 2 total area
3,093 hectares of vineyards
19 municipalities
FRANCIACORTA
GRAPE VARIETIES
Doge Francesco Foscari first determined its borders in 1429.
3% Pinot Bianco
0.3% Erbamat
16.7% Pinot Nero
80% Chardonnay
*From the official figures released by the Franciacorta Consortium
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STEWARDS OF THE LAND
TREASURE TROVE OF TALENTS
BUILDING RELATIONSHIPS
Our values
Our mission
Rooted in the past, with an eye to the future: this is the cornerstone of our work, which translates into caring for the environment, protecting people, producing fine quality wines, and nurturing our land.
LOVING FRANCIACORTA AND THE PEOPLE WHO LIVE THERE
TRADITION AND INNOVATION We proudly uphold the pioneering spirit of our founder, Franco Ziliani, who is considered the fa - ther of Franciacorta. At the same time, we embrace innovation to improve our grape growing and win- emaking processes, while respecting the environ- ment and tradition.
COMMITMENT TO EXCELLENCE We strive to achieve excellence in every harvest, to meet the growing consumer demand for quality, by carefully selecting our grapes and using them as the basis for products with different organoleptic prop- erties.
We are proud to be able to share with all the fami- lies in Franciacorta a sustainable development pro- ject that preserves the local beauty and history.
1 Guarantee the highest quality
in the production of Franciacorta wines while respecting the territory and tradition with a sustainably created product that makes every moment and every pairing special for our customers.
2 Respond to the challenges of the millennium with a continuous quest for innovation to make our wine growing and wine production increasingly respectful of the environment and people.
SUSTAINABILITY We constantly seek to adopt agricultural practices to avoid waste, respect the environment and limit our impact. Right now, all of our directly operated vineyards have been certified as organic since 2016, and most of those of our partners are managed us- ing environmentally responsible practices, with 60% of them certified as organic.
FOCUS ON PEOPLE We care about the people who work with us: we are committed to providing an inclusive, safe and healthy workplace, and providing them with a path towards personal development.
ADVOCATES FOR THE LAND We pass on our knowledge about our products and the Franciacorta wine production method to ed- ucate consumers, engaging them in our efforts to showcase our heritage and our land.
3 Spread the word in Italy and abroad about our region, our history and the value of Italian culture.
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Franciacorta in a bottle: Berlucchi icons
THE RESERVE WINES PALAZZO LANA EXTRÊME
CUVÉE IMPERIALE The Cuvée Imperiale line represents the best-known Franciacorta, embodying the Italian way of life for over half a century. The line is an entry-point to the Franciacor- ta universe, and is extremely versatile, meeting the tastes and needs of all consumers. BERLUCCHI ’61 The name of the Berlucchi ’61 line honours the original Franciacorta vintage. No less than 24 months of sur lie age- ing in bottle provides a complexity that meets the demands of increasingly educated consumers in their search for high quality Franciacorta, gradually reducing the expedition li- queur to reflect more closely the essence of the territory. BERLUCCHI ‘61 NATURE Berlucchi ‘61 Nature, the most recently introduced line, is made from the finest-quality grapes grown on the Berluc - chi estate and is aged in bottle for at least five years. It aims to satisfy the most demanding palates, those capable of appreciating the pure nuances of this Franciacorta with- out the addition of expedition liqueur. The Franciacorta Franco Ziliani Riserva 2008 was created to celebrate the 90 th birthday of the visionary winemaker who in 1961 was the first to successfully master the chal - lenge of producing a “sparkling wine” in Franciacorta. Since Franco Ziliani’s passing on 26/12/2021, this precious Franciacorta Riserva takes on a whole new meaning: an everlasting tribute to the memory of the great founder. As Berlucchi’s iconic, flagship wine, Palazzo Lana Extrême represents the synthesis of 60 years of history and exper- tise in producing Franciacorta. This reserve wine is made exclusively from selected grapes cultivated on the estate and using free-run must, ageing sur lie for at least ten years. Only found in high-end establishments and gourmet res- taurants, where haute-cuisine is the order of the day. FRANCO ZILIANI - FZ90
Palazzo Lana Extrême
Franco Ziliani FZ90
‘61 Nature Rosé
‘61 Nature Blanc de Blancs
‘61 Nature Brut
‘61 Nature Satèn
‘61 Nature Rosé
‘61 Nature Brut
Cuvée Imperiale Max Rosé
Cuvée Imperiale Demi Sec
Cuvée Imperiale Dosaggio Zero
Cuvée Imperiale Vintage
Cuvée Imperiale Brut
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Places that say something about us
THE HISTORIC CELLAR: THE ITALIAN AGEING “HALL” WITH A UNIQUE STYLE
PALAZZO LANA: HISTORIC RESIDENCE AND MEETING PLACE
THE HISTORIC VINEYARDS
THE CASTLE OF BORGONATO
Brolo Vineyard. Brolo vineyard is particularly important to the or- ganisation: situated opposite Palazzo Lana Ber- lucchi, it symbolises Franciacorta’s historic rural architecture. The most prized crops were planted in the stone-walled broli , or traditional orchards. The soil here is particularly suitable for producing Pinot Noir with good acidity levels. Its vines are densely planted – 10,000 per hectare – and produce very low yields to ensure the highest quality grapes.
Built in 1680, the first historic bottle produced in 1961 is conserved here. The Lana de’ Terzi family – Guido Berlucchi’s ances- tors – built the historic cellar in 1680 to age their still wines. It is now a symbolic place for all of Francia- corta: the first bottle of the 1961 vintage still rests in a niche in the ancient stone walls. In subsequent dec- ades, the cellar was enlarged and today this 12,000 square metre underground area is dedicated to age- ing Berlucchi Franciacorta wines.
Prestigious headquarters, symbol of the Francia- corta entrepreneurial vision. Palazzo Lana Berlucchi was purchased in the late 1400s and enlarged over the centuries by the Lana de’ Terzi family and Guido Berlucchi resided here until his passing. Today it is the symbol of Francia- corta entrepreneurship: its two halls witnessed the birth of the first bottles of Franciacorta. The palazzo now hosts cultural activities and is a destination for aficionados of the history of this land and its wine.
Treasured testimony of bygone eras. The Castle of Borgonato, built on the hill, is locat- ed right in the middle of Franciacorta and is a dis- tinctive feature of the landscape, bearing witness to the far-off Lombard and medieval eras (8 th -11 th centuries). The distinctive horizontal bands reflect the colours of the Lana family lineage and date back to the 19 th century. These decorations were recently restored by Guido Berlucchi. This was not a castle in the modern sense of the word, but rather a walled complex to protect the village and its inhabitants. The Castle and adjoining Church make the Borgona- to hill unique in the Franciacorta landscape. Our organisation protects and preserves this landscape on a daily basis, making whatever work, repairs and restorations are necessary for the upkeep of this cultural heritage.
THE LOGISTICS HUB: EFFICIENCY AND PRESERVATION OF THE MEDIEVAL VILLAGE
THE WINEMAKING CELLAR: THE HEART OF PRODUCTION
Castello Vineyard. The Castello Vineyard made Franco Ziliani and Guido Berlucchi’s dream come true. This is where the grapes used in the first Pinot di Franciacorta in 1961 were grown. This vineyard, of some 2 hec- tares, stands on a gently sloping hill terraced over the centuries. Together with the castle and church buildings of Borgonato, it is a unique, distinguishing feature of Franciacorta. In 2018, Erbamat, a recent- ly recovered ancient native grape variety, was field grafted onto the existing vines to counteract climate change. This extremely vigorous grape is now flour - ishing here thanks to the terrain’s morainic soils and favourable, sunny exposure.
Just a few kilometres from our headquarters, Berluc- chi Franciacorta begins its journey in the Provaglio warehouse. The finished bottles are brought here to be sorted by order and shipped to customers all over the world. The warehouse is located away from the residential area, so traffic is diverted away from Borgonato, a small medieval village, thus preserving its beauty and historic homes.
Thanks to continuous experimentation and innovation, these cellars represent the winery’s future-oriented outlook. We use cutting-edge technology to research and experiment with approaches that make our wine- making process more sustainable, respectful of the environment and geared towards reducing waste. This is where our grapes become Franciacorta, fol- lowing very strict protocols.
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THE VALUE CHAIN
From harvest to bottle, to hospitality
and the long ageing period in the cellar. In cellar ageing involves the traditional steps of the classic method (such as remuage and disgorgement). This is when the experience gained through years of work is put into practice and the process culminates in the labelling and final packaging of the bottle , ready for distribution. The last step is marketing to all the places that Guido Berlucchi reaches through a network of sales represent- atives with whom we have built up strong relationships of trust over the years.
We do not only operate a winery, we also work in the hospitality industry, managing the Historic Cellar and the an- cestral Palazzo Lana in Borgonato. The different stages of the value chain of these two businesses, which we describe below, generate impacts that we have measured and which you will find in the second part of the report (page 86).
PRODUCTION AND MARKETING OF FRANCIACORTA
HOSPITALITY
tainable Viticulture Protocol (in Italian Protocollo Berlucchi di Viticoltura Sostenibile - PBVS) , which lays down the rules for working with the vines and which is also shared with the grape-growing estates. The harvest is the most delicate aspect of produc- tion. Grape harvesting really depends on the weath- er conditions and is one of the keys to achieving high product quality. To preserve the quality of the grapes, they are harvested in a tight timeframe, and is very labour-intensive. The harvest is followed by the classic method wine- making process : a few months later, the wine is bot- tled to begin the secondary fermentation in bottle
The visitor hospitality business at the historical head- quarters is complementary, as it plays an important part in promoting our business values. Guests are introduced to the Guido Berlucchi operations and history , as well as to the winemaking processes and the whole world of Franciacorta. This first-hand ex - perience raises awareness and makes them choose more carefully and consume more consciously. This activity takes place in the Historic Cellar, built in 1680 and used continuously since then, in the ageing cellars built from 1964 onwards to house the bottles being aged, and in the winery facilities, where our staff give guests the best possible visitor experience. Palazzo Lana Berlucchi, purchased in the late
1400s by Guido Berlucchi’s ancestors and preserved with great care and respect by the Ziliani family, is opened only for special occasions. Today, the Palazzo is a fully-fledged estate museum and is listed in the ADSI register of Historic Resi- dences. In addition to carefully preparing the tour itinerar- ies and putting together the information provid- ed during the tours , we make this special location available to the world of food and wine and culture.
Our winemaking business focuses on the produc- tion of classic method Franciacorta wine. We care- fully weigh up every agronomic decision: we do not use rigidly imposed templates and plans, we ration- ally examine every single aspect, adapting and shap- ing it to best suit the climate and agronomic context. The first important step in Berlucchi’s value chain is procuring the raw material - grapes . We source these from our own vineyards and by buying grapes from partner winegrowers. We support them throughout the entire processing cycle to ensure that they meet the same high quality standards that we require for our own production. To monitor this fundamental process, Berlucchi has prepared a Berlucchi Sus-
VALUE CHAIN OF WINEGROWING PRODUCTION
HOSPITALITY VALUE CHAIN
PRODUCTION
PROCUREMENT
PRODUCTION
PROCUREMENT
MARKETING
SERVICES PROVIDED
Harvest involving more than 400 people, counting direct labour and services companies. Classic method winemaking and bottling. Cellar ageing. Preparing final bottle.
Direct cultivation of 115 hectares. Managing relations with partner winegrowers who farm 450 hectares. Packaging materials.
Hospitality materials. Facilities maintenance services. Services for tours. Approximately 30 suppliers,
Developing tour itineraries. Training guides (8 qualified guides). Dedicated pages on the website and social media.
About 4 million bottles sold. Economic value generated over 47 million euros. 137 sales representatives and 4 area managers in Italy. 30 countries of distribution with 2 area managers.
Tours of the winery. Events organisation. 12,000 people visited the winery in 2021, in a 9-month opening period (compared to some 6,000 in 2020 and 20,000 in the pre-Covid period).
all from Lombardy - 96% of them from the province of Brescia.
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ECONOMIC SUSTAINABILITY
Economic value generated and distributed
ECONOMIC VALUE GENERATED, DISTRIBUTED AND RETAINED
In 2021, we generated EUR 47.5 million in value through our activities, an increase of 2% compared to the previous year. This resulted in more than EUR 41 million being distributed to stakeholders , an increase in distributed value of 4.5% compared to 2020 . In particular, the largest share of the value generated was dis- tributed to suppliers, followed by staff.
OVERALL ADDED VALUE (THOUSANDS OF EURO)
2019
2020
2021
Economic value generated
47,411
46,580
47,567
Value of production
47,136
46,488
47,515
Other revenues
276
92
52
ECONOMIC VALUE DISTRIBUTED
39,461
39,715
41,605
EUR 4 7 .5 million Economic value generated EUR 41 million Value distributed +4.5% Increase in value distributed over 2020
Operating costs
29,742
30,559
32,149
Cost of personnel
6,087
5,976
6,463
Payments to providers of capital
950
856
741
Public Administration payments
1,650
1,412
1,241
Support for the community
59
119
89
Membership Fees
973
794
921
ECONOMIC VALUE RETAINED
7,950
6,856
5,963
The table shows the economic value generated, distributed and retained, provided by the difference in the first two in 2021 and 2020. These values come from the reclassification of the statutory income statement, where the retained economic value is represented by the profit for the year, which was not distributed to shareholders in 2021, and depreciation, amortisation, provisions and write-downs.
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OUR STORY IN THE MAKING ACCOUNTABLE BY NATURE
STEWARDS OF THE LAND TREASURE TROVE OF TALENTS BUILDING RELATIONSHIPS
THE GOVERNANCE MODEL
2 Committees supporting the BoD
7 members of the Strategic Sustainability Committee
2 meetings held in 2021
Sustainable management of the organisation
THE CODE OF ETHICS Complementing governance, we have defined the rules governing the ethical conduct of all employ- ees and partners in their everyday work in the Code of Ethics. Specifically, the Code of Ethics: • Expresses the set of values and principles of conduct guiding the business. • Recommends, advocates or prohibits certain behaviours, requiring compliance by the people in the winery. The Strategic Sustainability Committee (SSC) con- sists of seven members (four of whom are on the Board of Directors), representing all the organisa- tion’s areas of operation. The SSC defines strategic decisions and monitors progress of the strategic plan. The Committee was established in May 2021 and met twice during the year to address a range of issues connected to the sustainability strategy. In particular, it met to approve the sustainability gov- ernance model, set up the sustainability plan and The Sustainability Contacts Committee (SCC) con- sists of representatives drawn from the key business functions. The goal is for the operational persons to discuss and share ideas to encourage them to work together and to draw up a common vision by draw- ing on the experiences of all the people who work with us. The establishment of the SCC also helps raise the awareness of operators and to develop more sustainability-focused individuals within each function . Each committee member is assigned specific respon - sibilities in the field of sustainability and acts as the contact person on this issue for their colleagues in their respective areas of responsibility. The Commit- tee was formally established in the second half of 2021 and did not hold any meetings during the year. Prior to its establishment, we held training and align- ment sessions with representatives of the different business areas, including future Committee members.
approve the materiality matrix.
• Informs third parties about the ethical principles that the organisation recognises as its own and which it requires its associates to comply with. • Lays down sanctions commensurate with the seriousness of the infringements committed. • Represents a valid code of conduct to boost the employees’ awareness and knowledge of the business policy. • Gathers input from the various stakeholders. • Participates in preparing the sustainability report. • Reviews sustainability communication requirements. • Sets up analyses on specific sustainability issues • to be referred to the SSC. • Proposes training initiatives. • Identifies the strategic sustainability guidelines. • Defines sustainability governance. • Approves the strategic sustainability plan and monitors its progress. • Reviews sustainability risks. • Approves the sustainability report. • Contributes to defining the sustainability strategy. • Identifies quality objectives, targets and necessary resources • to be included in the sustainability plan. • Shares the progress of the various projects • and assesses the revised targets.
SUSTAINABILITY GOVERNANCE MODEL
BoD Board of Directors
SSC Strategic Sustainability Committee
SCC Sustainability Contacts Committee
After 60 years at the helm of the winery, Franco Zil- iani decided to pass the tradition and his expertise onto the next generation. His children Cristina, Ar- turo and Paolo now run the business jointly, sup- ported by the new generation, who are beginning to passionately enter the scene. Sustainability underpins the organisation’s major decisions . With a view to consolidating this vision, in 2020, after we published our first Sustainability Report, we embarked on a path to structure our in- ternal sustainability governance and make it part of our daily operations. The prerequisite for operating sustainably is for all the business functions to agree
on the definition of the strategy and its implementa - tion. Specifically, input from the different functions is important, experiences must be shared, objec- tives jointly identified and results assessed together in order to determine possible improvements. For this reason, we have set up a new internal gov- ernance system, assigning specific responsibilities. The Strategic Sustainability Committee (SSC) and the Sustainability Contacts Committee (SCC) were set up to support the 2021 five-member* Board of Directors , which is responsible for all the strategic business decisions.
*The BoD dropped to 4 members after the death of the President, Franco Ziliani.
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OUR STORY IN THE MAKING ACCOUNTABLE BY NATURE
STEWARDS OF THE LAND TREASURE TROVE OF TALENTS BUILDING RELATIONSHIPS
The excellence of our products is closely tied to a harmonious balance of environment, tradition and technology. We have always reflected deeply on how to ensure maximum sustainability. 2
ACCOUNTABLE BY NATURE
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OUR STORY IN THE MAKING ACCOUNTABLE BY NATURE
STEWARDS OF THE LAND
TREASURE TROVE OF TALENTS
BUILDING RELATIONSHIPS
SUSTAINABILITY, A GLOBAL NEED
Our stakeholders
According to the UN, as early as 2030 average global temperatures could rise by 1.5 degrees Celsius. The goal of the 2015 Paris Agreement was to limit glob- al warming preferably to 1.5 degrees Celsius, due to the possible severe consequences. If temperatures were to rise by 2 degrees by 2050, 56% of current wine production areas could disappear*. The agri- cultural sector both contributes to, and is a victim of, climate change.
To identify stakeholders, the members of the Stra- tegic Sustainability Committee engaged in a process of analysis that explored: • the relations that Guido Berlucchi establishes with the world around it; • the issues relevant to Guido Berlucchi's business. With this in mind, we determined all the persons who influence and/or are influenced by the activities we carry out, by our products and services and by our performance. We try to engage these stakeholders, in different ways and at different rates, to develop and consolidate lasting relationships. In 2021 too, we con- tinued our initiatives for stakeholder engagement, dis- cussion and dialogue commenced in previous years.
56% wine production areas at risk if the global temperature increased by 2°C
THE KEY STAKEHOLDERS IDENTIFIED
BUSINESS PARTNERS
WORKERS
SALES REPRESENTATIVES
CONSUMERS
SUPPLIERS
PUBLIC INSTITUTIONS AND CONSORTIUMS
MEDIA
LOCAL COMMUNITY
UNIVERSITIES
KEY ELEMENTS OF THE RELATIONSHIP
Ensuring the highest quality in sustainable viticulture and winemaking practices, guaranteeing high- quality wine, brand development. Business meetings, winery tours, dedicated events held annually, six- monthly or monthly, depending on the business partner.
Attention to and management of working relationship. Occupational health and safety.
Attention to and management of working relationship and brand development.
Guaranteeing high-quality wine, sustainable viticulture and winemaking practices.
Strength of the collaboration.
Active and continuous participation over time, common purpose.
Business approach, including to sustainability trends in the sector and measuring environmental impacts along the production chain. Periodic opportunities for dialogue, website, social media and press releases where the winery presents its sustainable agricultural solutions and practices, innovative
Contribution to creating economic value for Italy, transparency and
Collaboration regarding
innovation processes.
information on viticulture and winemaking practices, sharing of skills, expertise and know-how.
MAIN INITIATIVES FOR DIALOGUE
Sharing of information on the winery status, regular meetings and consultations between departments by means of a newsletter, an effective information and sharing tool.
Sharing of information on sales trends, regular organisation of dedicated training and institutional events.
Winery tours, events showcasing wine quality and focused on consumer education, dedicated events throughout the year, website, social media.
Continuous support and information sharing with our
Participation in meetings and organisation of dedicated events to share aspects relevant to the development of the territory and local communities in relations with public institutions, or issues common to the various companies operating in the territory in relations with the Consortium.
Organisation of annual event to discuss sustainability in various sectors, organisation of and participation in various events in the wine sector, particularly in Franciacorta, website, social media and
Annual, six-monthly or monthly tours of the winery, depending on the university.
agronomists. Sharing and
explanation of our sustainable viticulture protocol.
experiments in the wine sector and the various initiatives carried out with different organisations.
annual, six-monthly or monthly reports depending on the stakeholder.
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OUR STORY IN THE MAKING ACCOUNTABLE BY NATURE
STEWARDS OF THE LAND
TREASURE TROVE OF TALENTS
BUILDING RELATIONSHIPS
Materiality analysis
The materiality analysis is the basis for the preparation of the Sustainability Report. This process is used to iden- tify, prioritise and update material topics, i.e. the relevant topics to be disclosed in the Sustainability Report. We conducted our first materiality analysis in 2020 for the preparation of the first Sustainability Report cov - ering 2019; we then reviewed and updated it in 2021.
PREPARATION PROCESS
We redefined our sustainability strategy, taking into account the increasingly urgent challenges of our time and conducting
a comprehensive analysis of the main megatrends affecting our business.
1 We identified the relevant topics, by analysing benchmarks, global sustainability trends, industry and media pressures, and then updated the potentially relevant sustainability themes in the food and wine sector (the report drafting process contains details of the analyses carried out)
2 We prioritised the topics by assessing their relevance to us and to our stakeholders
We assessed relevance to our stakeholders, i.e. topics that can substantially influence their assessment and decisions, on the basis of internal analyses and interviews with relevant people to identify the views of our key stakeholders. We assessed relevance to us, i.e. the impact we have or could have on sustainability topics by analysing our strategic in-house documentation and mapping our business priorities, focusing in particular on the Sus- tainability Plan we are currently preparing, to be implemented through to 2025. After that, the Strategic Sus- tainability Committee mapped and prioritised the topics that were found to be relevant and approved the materiality matrix.
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OUR STORY IN THE MAKING ACCOUNTABLE BY NATURE
STEWARDS OF THE LAND
TREASURE TROVE OF TALENTS
BUILDING RELATIONSHIPS
Material topics identified
PROMOTING AND DEVELOPING THE REGION
THE MATERIALITY MATRIX
Supporting the social and economic fabric of the region, focusing in particular on grape suppliers, and campaigning for the organisation of events, initiatives and sus- tainability projects to promote and protect the territory (Academia Berlucchi, Fran- ciacorta Consortium). Promoting the management of processed materials, by-products and waste with a view to the circular economy by: • using recycled and recyclable materials in the production process and packaging, and environmentally friendly materials in the vineyard • responsibly managing waste generated by the business operations through proper disposal, giving preference to reuse and recycling Undertaking to create a quality product by limiting the use of sulphites, and to promote initiatives, tests and controls that guarantee consumer health and safety (product quality and safety controls). Promoting responsible wine consumption; Ensuring responsible management of the Group's energy consumption with energy-saving solutions and the use of energy from clean sources, such as re- newable energy from the solar PV system. Reducing climate change impacts by monitoring and reducing our carbon footprint of greenhouse gases emitted into the atmosphere;
combines the priorities assigned by stakeholders and by our business:
CIRCULAR MATERIALS
High
Circular materials
Promoting and developing the region
PRODUCT QUALITY AND SAFETY
FIGHT AGAINST CLIMATE CHANGE AND ENERGY CONSUMPTION
Product quality and safety
Fight against climate change and energy consumption
Innovation and development of sustainable and organic agricultural practices Soil and biodiversity protection
Average
Water consumption and discharge of effluents
Ensuring a safe and healthy workplace for all workers, taking preventive and protec- tive measures to minimise accidents;
OCCUPATIONAL HEALTH & SAFETY
Occupational health & safety
INNOVATION AND DEVELOPMENT OF SUSTAINABLE AND ORGANIC AGRICULTURAL PRACTICES
Innovating agricultural practices and production processes by pursuing sustainability (such as the Biopass project or sustainable agriculture protocols);
Fostering an attractive working environment, while retaining and building staff loyalty by means of an inclusive corporate culture that guarantees gender equality and equal opportunities for the entire workforce, and ensures the wellbeing of the individual. Investing in staff training and professional growth to harness their skills and talents; Guaranteeing the use of agronomic and vineyard management practices that re- spect the environment, biodiversity and the soil (plant protection and integrated pest management, cover cropping, green manure, organic fertilisation, FA.Re.Su.BIO project) and preserving the protected, natural areas near the vineyards; Not using water resources to irrigate the vineyard, in compliance with the Franci- acorta Production Code. Optimising the use of water resources in the winemaking process and improving the quality of wastewater; Promoting the spread of sustainable agricultural and production practices among suppliers in environmental and social terms, particularly with regard to workers during the grape harvest. Providing support to our suppliers, in particular grape growers, in implementing sustainable practices in the vineyard.
HIGH-QUALITY EMPLOYMENT
Development and spread of good practices in the chain
High-quality employment
SOIL AND BIODIVERSITY PROTECTION
Low
Average
High
SIGNIFICANT IMPACTS: ECONOMIC, SOCIAL AND ENVIRONMENTAL
WATER CONSUMPTION AND DISCHARGE OF EFFLUENTS
DEVELOPMENT AND SPREAD OF GOOD PRACTICES IN THE CHAIN
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