Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility
• Health, Safety, and Environment
• Research and Development (with focus on sustainability)

Environmental Achievements

• Created almost all collections in recycled fabrics, including a line in 100% ecological polyester from recycled PET bottles with Viral-Off technology.
• Used ECONYL® regenerated nylon thread (from recycled fishing nets and textile fibers) in PQ-BIOS collection.
• Used 100% RPET and Global Recycled Standard certified recycled plastic in PQ-BIOS collection.
• Recyclable packaging and merchandising (FSC certified paper, soy-based inks, recycled cotton).

Social Achievements

• Continued solidarity initiative "Happy Box" project in cooperation with the Palmieri Family Foundation.
• Implemented measures for distancing and sanitization at offices and stores to protect employee health during the COVID-19 pandemic.
• Organized remote work for office staff to ensure business continuity during the pandemic.
• Reached an agreement with management staff who waived 20% of their remuneration for Q1 FY2020-2021.

Governance Achievements

• Adopted a new procedure concerning related-party transactions in June 2021, aligned with CONSOB Resolution no. 21624 of 10 December 2020.
• Established a single-member Supervisory Board and appointed Mario Panzeri as single member with powers under Legislative Decree no. 231/2001.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and related government restrictions (lockdowns, store closures) leading to a 25.5% decrease in Group revenues.
• Significant reduction in sales across all brands (Piquadro, The Bridge, Lancel) and distribution channels (DOS, Wholesale).
• Negative impact on profitability and operating results.

Mitigation Strategies

• Cost reduction plan implemented, including redundancy schemes (33.8% of hours worked at Group level), resulting in approximately €6,631 thousand reduction in personnel costs.
• Negotiated rent reductions with landlords and lessors of DOSs.
• Applied for tax credits relating to shop rents in Italy.
• Strengthened online sales channels, with significant growth in e-commerce sales for all brands.

Supply Chain Management

Responsible Procurement

• Outsourcing production to external suppliers of proven competence and quality, mainly located in China, Hong Kong, Italy, India, the Czech Republic and Bulgaria.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Third-party Assurance: Deloitte & Touche S.p.A.

Sustainable Products & Innovation

• PQ-BIOS collection using recycled materials.
• Line in 100% ecological polyester from recycled PET bottles.

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility
• Social Responsibility
• Governance and Compliance

Environmental Achievements

• Increased use of recycled materials in product design (PQ Circle Index used as a project target).
• Extended product warranties from 2 to 5 years on some products to increase product lifecycle.
• Initiated a project to declare CO2 emissions for some products and propose compensation actions (to be implemented in 2023-2024).

Social Achievements

• Significant contribution to the continued operation of the Corno alle Scale ski resort, preserving approximately 150 jobs.
• Continued support for people with disabilities and those in need through selective aid distribution.
• Initiated a process for obtaining an ethical rating (expected by 2022-2023).

Governance Achievements

• Updated Group Code of Ethics approved by the Board of Directors on June 13, 2022.
• Implemented two personnel management procedures, one for administrative resource management and another within the organizational and management model pursuant to Legislative Decree 231/01.
• Defined a Group environmental policy (to be approved by the Board of Directors).

Climate Goals & Targets

Environmental Challenges

• Geopolitical and economic volatility impacting business operations.
• Supply chain disruptions and increased costs of raw materials due to the Russia-Ukraine conflict.
• Potential risks related to climate change.

Mitigation Strategies

• Implemented a policy of continuous improvement in sustainability.
• Diversified investments and presence in Europe and Asia.
• Expanded retail presence to increase control over sales channels.
• Adopted a strategy to mitigate currency exchange risks (hedge accounting policy).
• Implemented a waste management procedure.
• Developed a Group environmental policy and a supplier code of conduct.
• Increased prices in Russia to offset currency fluctuations (later reduced).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Focus on quality and efficiency.
• Supplier Code of Conduct (to be approved).

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: Null

Third-party Assurance: Deloitte & Touche S.p.A. (limited assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• PQ-BIOS collection (recycled nylon), Brief2 and PQM lines (recycled materials), Corno alle Scale line (recycled Cordura).

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility
• Social Responsibility
• Governance

Environmental Achievements

• Achieved carbon neutrality for Scope 1 and 2 emissions in 2021/2022.
• Gradual compensation of CO2 emissions related to the production of best-selling products (Scope 3) starting in 2022.
• Progressive use of recycled materials and leathers from certified supply chains.

Social Achievements

• Continued commitment to ESG principles and sustainable projects.
• Support for the community in its mountains through sustainable tourism.
• Focus on employee well-being and safety, with initiatives to improve workplace safety and encourage active collaboration.

Governance Achievements

• Adoption of a Group Code of Ethics and an organizational, management, and control model in compliance with Legislative Decree 231/2001.
• Establishment of a Supervisory Body.
• Adherence to the Corporate Governance Code approved by the Corporate Governance Committee promoted by Borsa Italiana S.p.A.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the war in Ukraine and increased costs of raw materials.
• Geopolitical and economic volatility.
• COVID-19 related restrictions in China (partially impacting Lancel sales).

Mitigation Strategies

• Increased selling prices in Russia.
• Continued sales to wholesale customers in Russia while maintaining retail operations.
• Suspension of business development activities in Russia.
• Multi-sourcing strategy to diversify suppliers and mitigate raw material risks.
• Strengthening cybersecurity measures.

Supply Chain Management

Responsible Procurement

• Adoption of a Supplier Code of Conduct.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• PQ-BIOS collection using recycled ECONYL® nylon.

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Risk Management
• Ethics
• Supply Chain Responsibility
• Environmental Protection
• People and Diversity and Inclusion
• Brand Reputation
• Quality Innovation & Customer Experience
• Waste Management
• Emissions

Environmental Achievements

• Achieved carbon neutrality (Scope 1 and 2) by offsetting 1,896 tonnes of CO₂ eq. through a reforestation project.
• Installation of a photovoltaic plant at the Gaggio Montano headquarters.
• Gradual offsetting of CO2 emissions in the manufacture of 13 best-selling products.

Social Achievements

• Continued commitment to the Corno alle Scale ski resort, attracting 80,000 visitors.
• Implementation of employee management procedures.
• More than 3,493 hours of training given to employees.
• Initiatives to improve employee well-being (canteen service, relaxation rooms, transport contributions, vouchers).

Governance Achievements

• Adoption of a Group Environmental Policy.
• Adoption of a Group Occupational Health and Safety Policy.
• Approval of a Group Supplier Code of Conduct.
• Achieved an “EE-” rating from Standard Ethics, indicating satisfactory compliance with sustainability standards.

Climate Goals & Targets

Environmental Challenges

• Risks related to production, supply chain disruptions, international market operations, intellectual property protection, information system integrity, changing customer preferences, increased competition, environmental risks, social risks, personnel risks, and corruption.
• Climate change risks (physical and transition risks).

Mitigation Strategies

• Diversification of investments and presence in Europe and Asia.
• Retail expansion policy.
• Use of a company specializing in intellectual property protection.
• Updated information system security measures.
• Risk management at central level.
• Hedge accounting policy for exchange rate risk.
• Adoption of a Code of Ethics, organization and management model, and waste management procedure.
• Risk assessment analysis and implementation of corrective actions.
• Compliance with REACH regulation.
• Workplace risk analysis and health and safety training.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct (planned), REACH compliance, Sustainability certifications (ICEC, LWG, GRS).

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards

Certifications: Null

Third-party Assurance: Deloitte & Touche S.p.A. (limited assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• PQ-BIOS collection with recycled materials, Urban line backpack with breathable backrest, sneakers in collaboration with ACBC.

Awards & Recognition

• Not disclosed