THE ARMANI GROUP AND SUSTAINABILITY
2019
THE ARMANI GROUP AND SUSTAINABILITY
2019
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Undertaking self-examination about the sustainability of one’s enterprise, measuring the progress made and setting new goals and objectives have become all the more important today, when events urgently call for changes and a new vision of and for the future. The following pages document numerous initiatives that are oriented towards ever more ambitious goals and thus demonstrate our unflinching commitment to continuing on this path. The Armani Group can rely on a system of solid values, complemented by the strong conviction that sustainability is evident above all in the company’s capacity to create products that stand the test of time This results from a model that is respectful of all the people involved and all the elements of which it is composed.
The Chairman
9,064
155
EMPLOYEES WORLDWIDE
7INDUSTRIAL SITES
1,850MILLION EUROS IN ECONOMIC VALUE DISTRIBUTED
CHEMICAL TESTS PERFORMED ON PRODUCTS
598COMPANY-OWNED SALES OUTLETS
2,144MILLION EUROS IN ECONOMIC VALUE GENERATED
100,000HOURS OF TRAINING-EDUCATION PROVIDED DURING THE YEAR
AUDITS PERFORMED AT SUPPLIERS’ FACTORIES
OVER
8,400OVER
2019 IN FIGURES
7
PEOPLE IN THE ARMANI GROUP
AS OF 31 DECEMBER 2019,THE ARMANI GROUP EMPLOYED
9,064PEOPLE
WOMEN
MAN
5,651
3,413
AMERICAS
2,4931,309
1,184
ITALY
3,055
EUROPE
1,022
ASIA - PACIFIC
2,494
2,048
1,661
633
1,007
833
389
98
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THE ARMANI GROUP AND SUSTAINABILITY
The Armani Group’s concept of sustainability has been articulated in
five priority areas, i.e. the “Pillars of Sustainability”, which effectively
inspire and direct the company’s decisions and activities.
In order to guide corporate commitments and activities in the
medium term the Group has drawn up a Sustainability Plan which
identifies, for each pillar, areas for improvement and the objectives
to be achieved.
The Group’s sustainability commitments are aligned with
and actively support some of the United Nations Sustainable
Development Goals (SDGs).
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THE PILLARS OF SUSTAINABILITY
FOCUS ON THE CUSTOMER
ENVIRONMENTAL PROTECTION AND EFFICIENT
USE OF RESOURCES
WELLBEING OF EMPLOYEES AND
TALENT DEVELOPMENT
RESPONSIBLE MANAGEMENT OF THE
SUPPLY CHAIN
SUPPORT AND INVOLVEMENT OF
COMMUNITIES
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A COMMON CAUSE
The Group has decided to involve its stakeholders in the process for
determining and defining the themes deemed of greatest relevance
to be addressed in the Sustainability Report, thus making it a veritable
tool for undertaking active dialogue.
This has made it possible to achieve a major goal: making the
Sustainability Report a real tool for dialogue between the Group
and its stakeholders, thereby further strengthening the already
established relationship of trust and transparency.
EMPLOYEES
NGOs
LICENSEES
MEDIACLIENTS
SUPPLIERS
TRADE ASSOCIATIONS
STAKEHOLDERS OF THE GROUP
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THE GLOBAL COMMITMENT
In 2019 the Armani Group signed on to the Fashion Pact, one of
the most important international initiatives launched to promote
sustainability in fashion.
The Pact brings together more than 250 leading brands and
companies in the fashion and textile industries, all united in the
desire to promote the virtuous development of the sector.
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COMBATTING CLIMATE CHANGEdefining goals and objectives, programmes and actions for the reduction of greenhouse gas emissions
RESTORING BIODIVERSITYadopting strategies and actions for the maintenance and restoration of natural ecosystems and species
PROTECTING THE OCEANSreducing the impacts caused by chemical and microplastic pollution on aquatic environments
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RESPONSIBLE MANAGEMENT OF THE SUPPLY CHAIN
In order to obtain an excellent product, from the standpoint of
quality and sustainability, it is necessary to collaborate closely
with the entire production chain.
The Group’s suppliers are required to comply with precise
environmental, ethical and safety standards, as set out in three
fundamental documents:
• The Environmental Code of Conduct
• The Code of Social Conduct
• The Restricted Substances List (RSL)
In order to continuously monitor and verify compliance by
suppliers with the relevant standards, the Group has implemented
a programme of audits in respect of social and environmental
issues, which provide the means to identify any critical issues
and guide suppliers on a path of continuous improvement.
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RATING
A-B EC-D
Compliant with
standards
Corrective action plan
(CAP)
Immediate corrective
actions
SUPPLIER EVALUATION
On the basis of any non-compliance reported, the suppliers are ranked on a rating scale from A to E. The suppliers whose overall rating is below B, are provided guidance to undertake a process of achieving
improvement through a CORRECTIVE ACTION PLAN (CAP). However, where there appears to be no possibility of implementing the corrective actions requested so as to comply with the standards,
an exit plan is defined.
Documentary verification
of CAP
CAP complete
= Upgrade
CAP incomplete
= Re-audit
CAP incomplete
=Exit plan
CAP complete =
Upgrade
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SUPPLIERS AUDITS
During 2019, 155 social and environmental audits were carried out,
covering 37% of the Armani Group’s suppliers,
in terms of 2019 turnover.
201720182019
220
155 147200
100
0
Number of social and environmental audits
SUPPLIERS OF RAW MATERIALS
<1%
SUPPLIERS OF SUBCONTRACT
MANUFACTURING
Geographical distribution of audited suppliers, based on turnover
99%
1%AMERICASASIA PACIFIC
SUPPLIERS OF MARKETED ITEMS
EUROPE
1%
3%96%
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2120
ENVIRONMENTAL PROTECTION
The Group effectively honours its commitment to sustainability by
being actively committed to reducing environmental impacts along
its entire value chain.
Particular attention is paid to the activities over which the Group
can exercise direct control, namely:
the management of operational offices, company-owned
stores and production sites, where initiatives are undertaken
to reduce consumption, encourage and promote recycling,
and raise awareness among employees;
the selection of raw materials, which is undertaken so as to
give priority to innovative materials having low environmental
impact;
the conception and design of packaging, aimed at ensuring
continuous improvement and in particular, at eliminating
single-use plastics, and promoting the use of recycled and
recyclable materials.
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THE OPERATIONAL OFFICES
MANAGEMENTDuring 2019 the scope of reporting was extended to all
of the consolidated companies of the Armani Group.
TOTAL ENERGY CONSUMPTION
11 thousand TOE
GREENHOUSE GAS EMISSIONS
41 thousand tonnes di CO2eq
WASTE PRODUCED
17 thousand tonnes
WATER CONSUMPTION
242 thousand cubic metres
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PUFFER JACKET MADE FROM RECYCLED PLASTICThe EA7 line was enhanced with a puffer jacket model, which is filled using Ecodown® fibres produced from PET bottles, thus avoiding the use of animal feathers.
The filling for a single puffer jacket corresponds to the recycling of about 10 bottles.
SWIMWEAR MADE FROM RECYCLED NYLONEmporio Armani Underwear has launched a capsule collection that includes swimwear/beachwear made with recycled nylon fibre.
The capsule collection was sold on the occasion of the itinerant initiative Eagle Arcade Beach Tour, which was conceived with the purpose of raising public awareness about environmental protection issues.
INNOVATIVE RAW MATERIALS
OLIMPIA TEAM UNIFORM MADE FROM RECYCLED POLYESTERFor official championship and Euroleague matches, the Olimpia Milano players have definitively adopted the team uniform made from recycled plastic (PET) bottles.
ACCESSORIES MADE FROM REGENERATED LEATHER FIBREEmporio Armani introduced a series of accessories made from regenerated leather fibre, obtained through an innovative method that recover the waste from processing natural leather. The entire process occurs without involving water use, thus avoiding the production of toxic substances that are detrimental to the environment.
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CORPORATE PACKAGING
GIORGIO ARMANIIntroduction of shopping bags made entirely out of FSC paper and with handles made of woven paper tubes.
EMPORIO ARMANI• Shopping bags made entirely
of paper for the EA7 line
• Boxes made from 50% recycled plastic for the Underwear line
• Single-material sock hangers made from cardboard
ARMANI EXCHANGE• Adoption of hang tags made
of Soporset paper, derived from responsibly managed forests
• Boxes made from 50% recycled plastic for the Underwear line
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WELLBEING OF THE EMPLOYEES AND TALENT DEVELOPMENT
Being attentive to the well-being and to the personal and
professional growth of employees is one of the Group’s priorities.
The various initiatives adopted include, for example, the
welfare measures featured under the Armani People Care plan,
the special agreements with commercial establishments or
providers of health and related services whereby employees can
avail of discounted rates and free health check-up programmes.
Furthermore, as of its June 2019 opening, the company gym
Armani/Fitness became available for employee use.
Also deemed to be of fundamental importance, professional
development and training programmes are delivered via specific
courses aimed at various functional positions and roles, and on a
range of different topics including: introductory courses for new
hires; health and safety related training dedicated to all staff;
and training for managers and those responsible for managing
complex work teams.
11AVERAGE
HOURS OF TRAINING PER
EMPLOYEEIN 2019
WOMEN
SENIOR EXECS/TOP
MGT
SUPERVISORYMANAGERIAL EMPLOYEES SALESFORCE WORKERS
MEN
11
12
16 17 8 12 6
PROFESSIONAL DEVELOPMENT AND TRAINING
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ARMANI DEVELOPMENT
PROGRAM
Launched in 2018 with the scope and objective of stimulating innovation
and personal proactiveness, this is a professional development program
dedicated to the company’s young talents.
In 2019 the participants, divided into sub-groups and closely supported
by tutors, worked on the development of projects in three different areas:
The resulting deliverables were evaluated and selected by a committee
and subsequently presented to the Presiding Board.
CORPORATE SOCIAL
RESPONSIBILITY
MARKETING DEDICATED
TO THE MILLENNIALS
DIGITAL COMMUNICATION
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3130
FOCUS ON THE CUSTOMERThe fruit of a delicate and complex operation, ensuring customer
satisfaction results from the ongoing commitment to establishing a
relationship of trust and consistently delivering an overall shopping
experience that is exclusive, personalised and satisfying.
Furthermore, it is essential to adopt the appropriate measures
designed to secure the authenticity of the products placed on the
market, so as to protect the brand values and the customers who
identify with them by purchasing the products.
For this reason, the Group dedicates ample resources each year
towards protecting its creations and combatting infringement and
counterfeiting.
THE CERTILOGO® AUTHENTICATION PLATFORM
Starting from 2017, customers of the Armani Group have the ability to contribute to the process of authentication of the Group’s products, using a common smartphone or any other device connected to the internet.
THE FIGHT AGAINST COUNTERFEITING
In 2019 the customs surveillance service and the on-the-ground raid activity produced the following outcomes:
ABOUT 3,000 SEIZURES WORLDWIDE
SHUT DOWN OF OVER 5,000 WEBSITES DEDICATED TO THE MARKETING OF
COUNTERFEIT PRODUCTS
REMOVAL OF ALMOST 50,000 ADS FOR THE MARKETING OF COUNTERFEIT PRODUCTS ON
DIGITAL PLATFORMS
REPORTING OF VIOLATIONS AGAINST ALMOST 4,500 PAGES ON SOCIAL MEDIA
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ARMANI GREEN OUTLETS
The Group’s boutiques and points of sale play a fundamental role
in representing and communicating to customers the values of the
Group, including those related to sustainability.
In 2019 the first two Armani Green Outlets were inaugurated in
Sanremo and Hong Kong, designed with particular attention to
sustainability.
STRUCTURES AND CEILINGSThe essential supporting structures are constructed from materials a portion thereof being recycled and recyclable at the end of life. The ceiling is made of aluminium battens, assembled in a manner such as to minimise the use of resources for management of the systems.
THERMAL INSULATIONThe insulation system comprising natural materials applied to the internal walls, serve to enable reducing energy consumption both during summer and winter.
FURNISHINGSThe panels are made of natural iron, a completely recyclable material. The finishes are made of natural and/or recycled materials.
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SUPPORT AND INVOLVEMENT OF COMMUNITIESOne of the fundamental aspects that characterise the identity of the
Armani Group is indeed the bond that ties it to the communities and
territories within which it operates.
Thanks to the close collaboration with institutions, cultural and
humanitarian associations, the actions undertaken by the Group are
advanced nationally and internationally in areas ranging from culture
to scientific research.
Similarly, another strong feature is the ethical commitment of the
Olimpia Milano Basketball Team, which through various initiatives
strives to promote the healthy principles of sports.
CULTURE AND ENVIRONMENTAL
PROTECTION
WELLBEING OF THE COMMUNITY
MEDICAL AND SCIENTIFIC RESEARCH
ARMANI/SILOSInaugurated in 2015, the Armani/Silos space undertakes to make available the Group’s artistic heritage and creative assets for the purposes of stimulating innovation in the field of fashion and design, while supporting new generations of creative professionals.
FAI - ITALIAN ENVIRONMENTAL FUNDThe Armani Group is part of “I 200 del FAI”, the group of FAI major donors who support the enhancement of Italy’s national artistic heritage.
OPERA SAN FRANCESCOThe Group supports various organisations that are engaged in combatting poverty and in particular Opera San Francesco, which operates in the Milan area to offer support and services to people in disadvantaged conditions.
ACQUA FOR LIFERenewed for the tenth consecutive year, Acqua for Life is an international initiative aimed at securing improved access to water resources in areas of the world where such access proves to be most difficult.
VERONESI FOUNDATION AND HUMANITAS Aid was consistently provided in 2019, to the Fondazione Veronesi/Veronesi Foundation and Humanitas, two major entities specialising in the field of oncological diseases.
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OLIMPIA MILANO BASKETBALL TEAM
AND THE VALUES OF SPORTS
RESPECTING THE RULES
HEALTHY COMPETITION
SOCIAL INCLUSIONTEAM SPIRIT
RESPECTING DIVERSITY
POSITIVE TEAM CHEERING
Biodegradable and recyclable paper from materials sourced from responsibly managed forests, consisting of pure cellulose with at least 25% recovered fibres
and produced in adherence with sustainability criteria during its processing.
2020