Climate Change Data

OVS S.p.A.

Climate Impact & Sustainability Data (2020, 2023)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:8,490 tCO2e/year (Scope 1)
Scope 1 Emissions:8,451 tCO2e/year
Scope 2 Emissions:5,066 tCO2e/year (market-based)
Scope 3 Emissions:289,086 tCO2e/year
Renewable Energy Share:78.8%
Total Energy Consumption:596,651 GJ/year
Water Consumption:728,938 m3/year
Waste Generated:10,042 tons/year

ESG Focus Areas

  • Sustainable products
  • Sustainable supply chain and respect for human rights
  • Circular design
  • Attention to diversity and inclusion
  • Caring for people and developing potential
  • Community support
  • Fighting the climate crisis and managing the environmental footprint
  • Listening to the customer
  • Transparency and sustainable communication
  • Innovation orientation
  • Sustainable stores
  • Industrial and institutional relations

Environmental Achievements

  • More than 1,400 tons of paper saved thanks to the recycling of cardboard
  • More than 58% of the total order is made from an OEKO-TEX 100 certified supply chain
  • Achieving 85% cotton from certified more sustainable sources, over 11,000 tons of cotton purchased from certified organic crops
  • 309 tons of recycled polyester prevented more than 20 million plastic bottles from being scattered into the environment
  • 100% denim processing without the use of potassium permanganate
  • 30% of denim products made with waterless treatments
  • 100% of products tested according to high quality and safety standards
  • Assessment of product footprint for 100% of OVS items through Eco Valore
  • 18% reduction in overall energy consumption compared to 2019
  • 100% electricity from renewable sources purchased directly from OVS S.p.A.
  • Reduction of Scope 3 emissions by 22%
  • Reduction of Scope 1 emissions by 27%

Social Achievements

  • 100% of the suppliers have subscribed to the Code of Conduct
  • 80% of the 2020 collections were made by suppliers monitored through HIGG index platform
  • Publication of the list of 100% of product suppliers on the corporate website
  • Adoption of a Labour and Human Rights Policy
  • Increase in the percentage of female store managers in Italy (50.4% from 46% in 2018)
  • Award for best advertising campaign at the Diversity Media Awards
  • Renewed the BullisNo campaign
  • Supporting the Healthy Seas program
  • Adoption of an Environmental and Local Community Policy
  • Implementation of surveys dedicated to sustainability

Governance Achievements

  • 1,385 hours of training on the Code of Ethics and Model 231
  • 55% of the Board of Directors consists of independent members
  • 44% of the Board of Directors made up of women
  • Defined a sustainability strategy and a program to improve corporate sustainability performance
  • Approval of two policies in the field of sustainability
  • Obtaining ISO 14001:2015 certification for the head office and for all the stores
  • Approval of a Sustainability Plan

Climate Goals & Targets

Long-term Goals:
  • Scope 3 emission reduction plan aligned with Science Based Targets (SBTs)
  • Definition of a plan to reduce water consumption and waste production at the headquarters
  • 30% increase in used clothing collection
Medium-term Goals:
  • 100% production volume from suppliers active in improvement programs through HIGG by 2022
  • Plan to reduce Scope 1 and Scope 2 CO2 emissions, aligned with SBTs
  • Definition of a plan to reduce water consumption and waste production in stores
Short-term Goals:
  • By 2025, more than 90% of the collection assortment will be made from materials from certified low-impact supply chains
  • Eliminating virgin plastics used in packaging by 2025
  • 100% wastewater tested against mRSL by 2025
  • Sourcing 100% cotton from certified more sustainable sources
  • Extension of product impacts assessment for 100% of UPIM items through Eco Valore
  • 100% of stores assessed with the sustainability index by 2021

Environmental Challenges

  • Getting customers to understand the value of sustainability choices
  • Accelerating the transition to a circular fashion system
  • Economic and social risks throughout the value chain accentuated by the pandemic
  • Potential risks to company reputation due to violations of human rights or environmental regulations
  • Risks related to operational continuity of partnerships with strategic suppliers
  • Risks for the health and safety of workers
  • Risks of negative impacts on labour relations arising from gender discrimination
  • Risks of ineffective communication of circular economy processes
  • Risks of footprint on climate conditions and on the ecosystem
  • Risks of interruption of business processes due to weather events
  • Company reputation risk and lack of customer satisfaction due to lack of comprehensive management of relations with stakeholders
  • Risks of environmental damage due to production of high-impact raw materials
  • Risk of increased operating costs caused by unsustainable stores management
  • Risk of loss of revenue due to inability to offer products in line with consumer preferences
  • Risk of losing market opportunities related to new sales channels
Mitigation Strategies
  • Launch of Eco Valore indicators
  • Joined the Circular Fashion Partnership
  • Minimising economic and social impact on suppliers during the pandemic
  • Adherence to Code of Conduct and internal/external audits
  • Active participation in industry collaboration initiatives
  • Implementation of health and safety protection plans
  • Adoption and development of wellness programs
  • Adoption of an action plan for the development of strategies aimed at implementing virtuous Circular Economy models and processes
  • Plan for rational consumption of energy resources
  • Exclusive use of certified renewable energy
  • Adoption of Codes that regulate the Group’s relations regarding the standards of conduct with the stakeholders
  • Implementation of appropriate management and monitoring systems
  • Adoption of a design protocol for the points of sale
  • Adoption of in-store safety measures
  • Customer satisfaction evaluation programs
  • Proximity e-commerce program
  • Digitisation of business processes

Supply Chain Management

Supplier Audits: 580/year

Responsible Procurement
  • Code of Conduct
  • Higg Index
  • Responsible cotton sourcing strategy
  • Product certifications

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 14001:2015, OEKO-TEX 100

UN Sustainable Development Goals

  • 5 (Gender Equality)
  • 6 (Clean Water and Sanitation)
  • 8 (Decent Work and Economic Growth)
  • 11 (Sustainable Cities and Communities)
  • 12 (Responsible Consumption and Production)

OVS's strategy aligns with these SDGs through various initiatives detailed in the report.

Sustainable Products & Innovation

  • Eco Valore
  • Recycled polyester fleece
  • ECONYL® yarn swimwear
  • Waterless denim

Awards & Recognition

  • Diversity Media Awards

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:446,976 tCO2e/year (Scope 3)
Scope 1 Emissions:8,455 tCO2e/year (Italy) + 97 tCO2e/year (other)
Scope 2 Emissions:41,754 tCO2e/year (Italy, location-based) + 677 tCO2e/year (other, location-based)
Scope 3 Emissions:446,976 tCO2e/year
Renewable Energy Share:86% (of direct consumption)
Total Energy Consumption:651,733 GJ/year
Water Consumption:539,253 m3/year
Waste Generated:11,824.66 tons/year
Carbon Intensity:173.49 tCO2e/million EUR (2023)

ESG Focus Areas

  • Decarbonization
  • Circularity
  • Workers' rights
  • Transparency

Environmental Achievements

  • Reduced product-related emissions by around 17% compared to 2019.
  • Reached 89% of assortment meeting “Better Products” criteria (target was 90% by 2025).
  • Increased use of recycled polyester to 22% in 2023.
  • Installed more than 50 photovoltaic systems by 2023, aiming for 40% electricity needs covered by photovoltaics.
  • Reduced raw material-related CO2 emissions by 10% compared to 2019.

Social Achievements

  • Achieved 100% of Tier 1 suppliers registered on the Worldly platform (one year ahead of target).
  • 92% of production volume verified on Higg FEM, 70% on Higg FSLM.
  • Launched OVS Per Me welfare program.
  • Co-funded EIS (Employment Injury Scheme) in Bangladesh.
  • Renewed participation in Accord, extending to Pakistan in 2024.
  • Improved worker conditions at Sirajgonj Fashion Ltd. in Bangladesh.

Governance Achievements

  • Ranked 1st in the Fashion Transparency Index for the third consecutive year.
  • Improved overall ESG Risk Rating to 9.1 in the “Negligible” category (Sustainalytics).

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050.
  • 100% of production volume covered by suppliers with democratically elected worker representative bodies by 2030.
Medium-term Goals:
  • Reduce emissions by 46.2% by 2030 compared to the 2019 baseline.
  • Achieve 30% renewable energy by 2030.
  • 100% of polyester and polyamide to be replaced with recycled materials or renewable alternatives by 2030.
  • 50% of production volume covered by suppliers with implemented tools for resolving disputes within factories by 2025.
Short-term Goals:
  • Reduce water consumption by 10% by 2025.
  • Achieve 90% of assortment meeting “Better Products” criteria by 2030.
  • 100% of denim made with water-saving technologies by 2025.
  • 50% of production volume covered by suppliers with democratically elected worker representative bodies by 2025.

Environmental Challenges

  • Supply chain disruptions due to geopolitical factors.
  • Balancing sustainability with affordability for consumers.
  • Achieving carbon neutrality goals.
  • Ensuring responsible consumption.
  • Managing textile waste.
  • Low prevalence of collective agreements and worker representation in some countries.
Mitigation Strategies
  • Developed the “Circular Operating System” program.
  • Investing in the FASHION RETAIL RELOADED project (logistics plant in Apulia).
  • Implementing strategies and guidelines to increase the use of materials with a lower environmental impact.
  • Activating closed-loop production with post-consumer recycled materials.
  • Launching a circularity program and revitalizing the second-hand collection and sorting process.
  • Developing a program and solutions dedicated to extending the life of garments.
  • Activating a support plan aimed at suppliers to define a decarbonisation program.
  • Supporting the adoption of democratically elected worker representation and collective bargaining systems.
  • Continuous training and creation of moments of involvement and empowerment of employees.
  • Identifying the areas of greatest impact in OVS facilities to structure the most significant interventions.
  • Integrating information on the production chain, impact data, garment durability, and end-of-life destination.
  • Making new product traceability available to customers.
  • Reviewing the reporting process with gap analysis activities against ESRS standards.

Supply Chain Management

Supplier Audits: 325 audits/year (out of 506 suppliers)

Responsible Procurement
  • Code of Conduct
  • Supplier sustainability requirements
  • Use of Worldly platform for ESG performance data.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Regulatory changes, market shifts
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards

Certifications: Null

Third-party Assurance: KPMG S.p.A.

UN Sustainable Development Goals

  • Goal 5 (Gender Equality)
  • Goal 6 (Clean Water and Sanitation)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 11 (Sustainable Cities and Communities)
  • Goal 12 (Responsible Consumption and Production)

OVS initiatives contribute to these goals through various programs and policies.

Sustainable Products & Innovation

  • OVS Cotone Italiano
  • RE-UP upcycled collection
  • Altavia ski collection (recycled polyester)
  • Zero Water denim collection

Awards & Recognition

  • First place in the Fashion Transparency Index (three consecutive years)