Climate Change Data

Environmental Metrics

ESG Focus Areas

• Product Creativity and Excellence
• Product Responsibility
• Know-how Preservation and Skills Development
• Relationship with the Territory
• Attraction and Retention of Talents
• Raw Materials Sourcing
• Trademark Protection
• Business Strategy and Economic Performance
• Human Rights and Employees Wellbeing in the Supply Chain
• Occupational Health and Safety
• Energy and Climate Change
• Traceability and Responsible Supply Chain Management - Social Impacts
• Quality of the Working Environment
• Compliance and Risk Prevention
• Diversity and Equal Opportunity
• Protection and Enhancement of the Artistic and Cultural Heritage
• Customer Experience

Environmental Achievements

• Achieved LEED Gold certification on 7 stores (6 Prada, 1 Miu Miu)
• Reduced packaging consumption by 27% from 2015
• Increased use of FSC-certified and recycled paper in packaging to 82%
• Scandicci plant consumed 1,439 MWh annually, with 1,099 MWh from renewable sources and 340 MWh self-generated.
• Implemented Relamping project, replacing lighting systems with LED technology in 81 stores (2015) and an additional 34 stores (2016), resulting in significant energy savings.

Social Achievements

• Launched Prada Academy, offering training programs in craftsmanship, corporate, and retail areas.
• Provided 44,734 training hours to 5,899 participants.
• Implemented new hire induction program and a program for existing employees to enhance knowledge of Prada's business.
• No labor strikes occurred in 2016.
• Maintained a low injury rate in Italian companies (11.02 in 2016, down 15% from 2014).

Governance Achievements

• Established a Corporate Social Responsibility Committee.
• Renewed the "Group’s qualified vendor list" procedure to enhance ethical, technical, and economic reliability of suppliers.
• Published the first statement in accordance with UK MSA – Modern Slavery Act.

Climate Goals & Targets

Environmental Challenges

• Challenging year due to geopolitical tensions and economic uncertainty.
• Decline in retail sales.
• Non-compliance with health and safety regulations and information/labeling requirements in China (resulting in fines).

Mitigation Strategies

• Launched cost-cutting programs to maintain profitability.
• Focused on new product development and store renovation to enhance the shopping experience.
• Redefined digital strategy to empower brands and reach new generations of consumers.
• Implemented a three-year plan to strengthen control over the production process and improve environmental performance.

Supply Chain Management

Responsible Procurement

• Selection of suppliers based on ethical, technical, and economic reliability; Code of Ethics subscription is a prerequisite for working with Prada; periodic updates and systematic checks to ensure veracity and consistency of supplier information; visits by industrial divisions to suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI-G4 (In accordance - Core), Hong Kong Stock Exchange's ESG Reporting Guide

Certifications: LEED Gold (7 stores)

Awards & Recognition

• Brand&Landscape Award 2016 for Prada Headquarters design

Environmental Metrics

ESG Focus Areas

• Integrity and Responsible Management
• Environment
• Human Capital
• Cultural Initiatives

Environmental Achievements

• Achieved LEED Gold certification for 20 stores (Asia Pacific region).
• Reduced electricity consumption by 10.6% and natural gas consumption by 8.6%.
• 44% of purchased grid electricity originated from renewable sources.
• Prada Re-Nylon project expanded to include clothing and footwear.
• Recycled plastic in packaging almost reached 50%.

Social Achievements

• Established Diversity & Inclusion Advisory Council.
• Appointed Chief Diversity, Equity and Inclusion Officer for Prada North America.
• Joined The Valuable 500.
• Provided 153,462 hours of training to 82,921 participants.
• Implemented Corporate Welfare plan in Italy.

Governance Achievements

• Complied with the principles of the Corporate Governance Code (Hong Kong Stock Exchange).
• Participated in the Cooperative Compliance Tax Regime in Italy.
• Obtained “AEO Full” (Authorized Economic Operator) certification from the Italian Customs Agency.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic significantly impacted business activities, particularly retail.
• Supply chain disruptions due to the pandemic.
• Reduction in sales due to travel restrictions.

Mitigation Strategies

• Immediate and decisive response to the pandemic, prioritizing employee safety and customer centrality.
• Production shutdown limited to five weeks.
• Reallocation of finished products within the retail network.
• Reduction in operating expenses through rent discounts and wage supplements.
• Revised investment program and marketing initiatives.

Supply Chain Management

Responsible Procurement

• Code of Ethics
• Qualified Vendor List procedure
• Supplier Inspectorate

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core Option

Certifications: LEED

Sustainable Products & Innovation

• Prada Re-Nylon collection
• Upcycled by Miu Miu collection
• A + P Luna Rossa 21 sneaker

Environmental Metrics

ESG Focus Areas

• Planet
• People
• Culture

Environmental Achievements

• Achieved full conversion to Re-Nylon in 2021.
• 53% of the energy purchased at a global scale is renewable.
• Reduced production waste relating to clothing, leather goods, and footwear products.
• 61% of waste generated was diverted from disposal in 2021.

Social Achievements

• Launched internship and mentorship programs.
• Partnered with the Fashion Institute of Technology (FIT) to develop scholarships.
• Working with the United Nations Population Fund (UNFPA) to develop an educational fashion module to promote gender equality in Africa.
• Joined The Valuable 500, a global community dedicated to radically transforming the business system to make it more inclusive of people with disabilities.

Governance Achievements

• Appointment of two new Board members, both independent with track records in structuring and implementing ESG policies.
• Establishment of a Sustainability Committee within the Board.

Climate Goals & Targets

Environmental Challenges

• Pressures from stakeholders and investors regarding climate change.
• Shift in consumer choices towards more sustainable products.
• Noncompliance with emerging laws and/or regulations related to climate change and circular economy.
• Scarce availability of sustainable raw materials.
• Risks associated with extreme weather events.
• Noncompliance with local environmental regulations.
• Greenwashing connected to the use of sustainable raw materials.
• Noncompliance with environmental practices and standards along the supply chain.
• Noncompliance with social practices and standards along the supply chain and possible violations of human rights.
• Misalignment of suppliers with Prada’s sustainability strategy.
• Noncompliance with Human Rights standards.
• Difficulty in attracting and retaining qualified employees.
• Loss of corporate know-how.
• Noncompliance with health and safety legislation.
• Occurrence of incidents of discrimination.
• External macroeconomic risks.
• Noncompliance with laws and regulations relating to socioeconomic, corruption or tax issues.
• Risks related to cybersecurity.

Mitigation Strategies

• Sustainability Strategy
• Climate Strategy
• Responsible use of natural resources
• Preservation of the territory
• Investment in photovoltaic systems
• Waste management
• Circular thinking
• Sustainable water management
• Supply chain responsible management
• Prada Academy and skills development
• Champion diversity and equal opportunities
• Risk management
• Code of ethics
• Tax strategy and compliance
• Supplier audits
• Implementation of a customer-centric approach
• Acceleration of the digital transformation process
• Investing in “Human Touch” principles
• Re-styling of Prada Group websites
• Addition of new features and services to the customer
• Implementation of an integrated digital communication strategy
• Strong vertical integrated business model
• Strict control of the value chain
• Progressive insourcing of sensitive phases of the production process
• Adoption of a “Qualified Vendor List” procedure
• Internal task force dedicated to tightening controls over the supply chain
• Implementation of inspecting activity with a dedicated procedure
• Ongoing dialogue and honest, long-term interaction with the main Italian and foreign tax authorities
• Sustainability-linked loans

Supply Chain Management

Supplier Audits: 175 suppliers audited in 2019-2021

Responsible Procurement

• Qualified Vendor List procedure
• Code of Ethics
• Restricted Substances List (RSL)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding

Transition Risks

• Regulatory changes
• Market shifts
• Shift in consumer choices

Opportunities

• Development of energy-efficient products
• Replacement of existing products and services with low-carbon options

Reporting Standards

Frameworks Used: GRI Standards: Core Option

Certifications: LEED

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)
• Goal 14 (Life below water)

Initiatives contribute to these goals through renewable energy use, GHG emission reduction, and ocean preservation.

Sustainable Products & Innovation

• Prada Re-Nylon
• Upcycled by Miu Miu

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity & Animal Welfare
• Water Resources
• Waste Management
• Product End-of-life
• Human Rights
• Diversity & Inclusion
• Occupational Health & Safety
• Business & Ethics
• Marketing & Labeling
• Consumer Health & Safety
• Sustainability Education
• Artistic & Cultural Heritage
• Scientific Evolution
• Craftsmanship & Savoir-faire

Environmental Achievements

• Achieved Carbon Neutrality for Scope 1 and 2 emissions from 2021.
• Reduced Scope 1 and 2 emissions by 34% compared to the 2019 baseline.
• 66% of total electricity purchased came from certified renewable sources (2022).
• 97% of packaging paper was FSC certified or recycled (2022).
• 65% of plastic packaging was recycled content (2022).
• Full conversion to Re-Nylon (regenerated nylon) in 2021.
• Reduced industrial waste by 46% compared to 2019.

Social Achievements

• Launched an ambitious Diversity, Equity and Inclusion (DE&I) project.
• Continued investment in Prada Group Academy, training 62 young professionals in 2022.
• Improved employee wellbeing initiatives, including an extraordinary welfare payment of €1,300.
• Launched the “Fashion Expressions: The Stories She Wears” program with UNFPA.
• Partnered with Dorchester Industries for the Experimental Design Lab.

Governance Achievements

• Appointed two new board members with significant ESG experience.
• Updated Code of Ethics and introduced a new Human Rights Policy.
• Established a new global whistleblowing platform.
• Established a Sustainability Committee to oversee ESG strategy.

Climate Goals & Targets

Environmental Challenges

• Rising energy prices.
• Supply chain disruptions.
• Lack of readily available sustainable raw materials.
• Climate change impacts (extreme weather events).
• Maintaining high standards across a global supply chain.
• Attracting and retaining qualified employees.

Mitigation Strategies

• Investing in renewable energy (CVPPA project).
• Acquiring a stake in Conceria Superior S.p.A. for greater supply chain oversight.
• Implementing a new Product Lifecycle Management (PLM) system.
• Developing alternative sourcing strategies.
• Strengthening supplier audits and implementing a new Code of Conduct.
• Investing in employee training and development programs.

Supply Chain Management

Supplier Audits: Approximately 340 first and second-tier suppliers audited (2019-2022), covering 80% of turnover.

Responsible Procurement

• Qualified Vendor List procedure.
• Supplier Code of Conduct.
• Code of Ethics.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, flooding

Transition Risks

• Regulatory changes, market shifts, lack of low-carbon alternatives.

Opportunities

• Development of energy-efficient products and processes.

Reporting Standards

Frameworks Used: GRI Standards 2021

Certifications: LEED

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 14 (Life Below Water)
• Goal 8 (Decent Work and Economic Growth)
• Goal 5 (Gender Equality)
• Goal 17 (Partnerships for the Goals)

Various initiatives contribute to these goals through emissions reduction, sustainable material use, employee wellbeing, community engagement, and partnerships.

Sustainable Products & Innovation

• Prada Re-Nylon collection
• Eternal Gold sustainable fine jewelry collection
• Upcycled by Miu Miu collection
• Prada Paradoxe refillable fragrance bottle

Awards & Recognition

• Oceans Award for Sea Beyond (2022)

Environmental Metrics

ESG Focus Areas

• Planet
• People
• Culture

Environmental Achievements

• Scope 1&2 GHG emissions reduced by 58% over the year compared to the 2019 baseline.

Social Achievements

• 44% representation of women in its leadership team.
• Increased funding to support the SEA BEYOND education program.

Governance Achievements

• A new Group-wide Code of Ethics and Human Rights Policy was implemented.
• Established a Sustainability Committee in early 2022.

Climate Goals & Targets

Environmental Challenges

• Geopolitical tensions, especially in the Middle East.
• Uncertainty in terms of economic outlook.
• Supply chain disruptions (implied)
• Climate change related risks (implied)

Mitigation Strategies

• Investing in strong and structured style and design teams.
• Cutting edge communication strategies.
• Regular store renovations.
• Training and professional qualification programs for employees.
• Sustainability policy with targets for reducing greenhouse gas emissions, using low-impact materials, and a circular approach to materials.
• Strengthened ESG governance.
• Investment in renewable energy procurement (CVPPA).
• Investment in Sustainable Aviation Fuel (SAF) credits.

Supply Chain Management

Responsible Procurement

• Code of Ethics, which must be signed by business partners.
• Monitoring compliance by manufacturers with applicable regulations concerning labor law, social security and occupational health and safety.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Sustainable Products & Innovation

• Prada Re-Nylon
• Eternal Gold