Design Holding S.p.A.
Climate Impact & Sustainability Data (2021, 2022)
Reporting Period: 2021
Environmental Metrics
Total Carbon Emissions:148,506.8 tCO2e
Scope 1 Emissions:5,063.63 tCO2e
Scope 2 Emissions:3,922 tCO2e (location-based), 3,845.4 tCO2e (market-based)
Scope 3 Emissions:139,520 tCO2e
Renewable Energy Share:37%
Total Energy Consumption:144,830 GJ
Waste Generated:2,873.7 tons
ESG Focus Areas
- Diversity, Inclusion & Empowerment
- Business Ethics & Responsibility
- Eco-Design & Circular Economy
- Energy & Climate Change
- Responsible Sourcing & Sustainable Supply Chain Management
- Employee’s Wellbeing
- Innovation & Product Quality
- Heritage & Design culture
Environmental Achievements
- Flos, B&B Italia and Louis Poulsen were carbon neutral since 2020
- 86% share of renewable electricity in 2021
- 62% decrease in the use of polyurethane foams in 2021 compared to 2013 (Flos)
- 100% of Arclinea’s wood supply and products are FSC® Mix certified
Social Achievements
- 27% increase in hiring in 2021 from 2020
- 53% increase in training hours delivered in 2021 vs 2020
- YDG logged 250 team and individual volunteer hours in 2022
- B&B Italia offers transport and assistance service for employees’ disabled relatives
Governance Achievements
- Design Holding has received 13 Compasso d’Oro prizes
Climate Goals & Targets
Long-term Goals:
- Net zero emissions target (aligned with SBTi and Paris Agreement)
Medium-term Goals:
- 100% of relevant suppliers mapped and assessed by 2025
- At least 50% employees attending specific training to manage their biases by 2024
- Reach 42% women in senior positions by 2026
Short-term Goals:
- Define a Science-Based Target by 2023
- Define an eco-design framework by 2023
- Define a global framework for supplier ESG evaluation by 2024
Environmental Challenges
- Supply chain disruptions due to Covid-19
- Increasing GHG emissions due to business recovery and acquisition of YDG
- Managing ESG risks across a complex global supply chain
Mitigation Strategies
- Purchase of carbon credits to compensate for GHG emissions
- Definition of a Group Science-Based Target by 2023
- Implementation of a Group-wide ESG suppliers’ assessment and risk management system
- Energy efficiency initiatives across the Group (e.g., more efficient heating plant at B&B Italia’s Misinto site)
Supply Chain Management
Responsible Procurement
- Supplier Code of Conduct (to be approved in 2022)
- ESG risk assessment and oversight
- FSC® certification for wood sourcing (Arclinea)
Climate-Related Risks & Opportunities
Physical Risks
- Physical risks correlated with climate change on owned assets and facilities
Transition Risks
- Transitional risks correlated with climate change and energy transition
Opportunities
- Producing long-lasting solutions and investing in R&D to further expand products life-cycle and progressively reduce carbon footprint
Reporting Standards
Frameworks Used: GRI Standards: Core option, SASB Building Products & Furnishings industry guidelines
Certifications: ISO 45001 (Arclinea), FSC® Mix (Arclinea)
Sustainable Products & Innovation
- Camaleonda sofa (redesigned with sustainable materials)
- Borea collection (B&B Italia)
- Almendra and Oplight lamps (Flos)
- PH5 Retake (Louis Poulsen)
Awards & Recognition
- 13 Compasso d’Oro prizes (Design Holding)
- Wallpaper* Design Awards (B&B Italia, Flos)
- IDEAT Design Award (B&B Italia)
- Robb Report ‘Best of the Best’ award (B&B Italia)
- German Stylepark Selected Awards (Flos)
- Interior Design Best of Year’s Awards (Flos)
- NYCxDESIGN Awards (Flos)
- Copenhagen Light Festival (Louis Poulsen)
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:603,597 tCO2e
Scope 1 Emissions:4,939 tCO2e
Scope 2 Emissions:1,606 tCO2e
Scope 3 Emissions:597,052 tCO2e
Renewable Energy Share:78%
Total Energy Consumption:139,093.5 GJ
Waste Generated:2,973 tons
ESG Focus Areas
- Energy & Climate Change
- Eco-Design & Circular Economy
- Responsible Sourcing & Sustainable Supply Chain Management
- Inclusion & Empowerment
- Employee Well-being
- Business Ethics & Responsibility
- Heritage & Design Culture
Environmental Achievements
- Carbon neutral on Design Holding’s own operations for 2020, 2021 and 2022
- 78% share of renewable electricity in 2022
- 7.7 emission intensity Scope 1 + Scope 2 Market-based in 2022 (vs 13.2 in 2021)
- Defined a Group eco-design framework
- Implemented a Take-Back Scheme for Louis Poulsen products
- 64% decrease in the use of polyurethane foams at Flos since 2013
Social Achievements
- Improved employees’ wellbeing by promoting a diverse workforce and maintaining a positive work culture
- 45% women employees
- 97% permanent contracts
- 9.32 average training hours per employee
- Launched Lumens’ Innovators Council
- Partnerships with schools, universities, and non-governmental institutions
Governance Achievements
- Created a Group Sustainability Governance, including a Sustainability Steering Committee
- Adhered to the UNGC
- Approved Sustainability Policy, Code of Ethics and Supplier Code of Conduct
Climate Goals & Targets
Long-term Goals:
- Reduce Scope 1 and 2 GHG emissions by 27.5% by 2030 (Flos, B&B Italia)
Medium-term Goals:
- Define a global framework for supplier ESG evaluation by 2024
- Map and assess 100% of relevant suppliers by 2025
- At least 50% employees attending specific training to manage their biases by 2024
- Reach 42% women in senior positions by 2026
Short-term Goals:
- Define a Science-Based Target by 2023
- Complete a Group survey on Net Promoter Score (NPS) by 2023
- 20% of Top Performers and High Potential employees involved in career development initiatives by 2023
Environmental Challenges
- Supply chain disruptions due to geopolitical factors and raw material scarcity
- Climate change impacts on operations and supply chain
- Attracting and retaining talent with adequate skills
- Ensuring high health and safety standards across the supply chain
- Managing ESG risks across the global value chain
Mitigation Strategies
- Developing alternative sourcing strategies
- Implementing climate change mitigation strategies
- Investing in employee training and development
- Implementing comprehensive health and safety management systems
- Establishing a global framework for supplier ESG evaluation
Supply Chain Management
Supplier Audits: Top six Asian suppliers audited for Audo in 2022
Responsible Procurement
- Supplier Code of Conduct
- FSC® certification for wood products (B&B Italia, Arclinea)
- Declare label for product transparency (Audo)
Climate-Related Risks & Opportunities
Physical Risks
- Physical risks correlated with climate change on owned assets and facilities
- Physical risks correlated with raw material depletion and waste related impacts
Transition Risks
- Transitional risks correlated with climate change and energy transition
- Potential interruption of procurement and distribution channels due to direct and indirect effects of climate change
Opportunities
- Producing long-lasting solutions and investing in R&D to further expand products lifecycle and progressively reduce carbon footprint
Reporting Standards
Frameworks Used: GRI Standards 2021, SASB Building Products & Furnishings
Certifications: ISO 45001 (Arclinea), FSC® (B&B Italia, Arclinea)
UN Sustainable Development Goals
- Goal 7 (Affordable and clean energy)
- Goal 12 (Responsible consumption and production)
- Goal 13 (Climate action)
Initiatives contribute to these goals through emission reduction, renewable energy use, eco-design, circular economy practices, and responsible sourcing
Sustainable Products & Innovation
- Le Bambole (B&B Italia)
- PH 5 Retake (Louis Poulsen)
- Almendra (Flos)
- Arco K (Flos)
- Skynest (Flos)
Awards & Recognition
- 15 Design awards won by Design Holding Brands in 2022 (including 2 Compasso d’Oro ADI)