Giorgio Armani S.p.A.
Climate Impact & Sustainability Data (2021, 2022)
Reporting Period: 2021
Environmental Metrics
Total Carbon Emissions:460,429 tCO2e/year (Scope 1, 2 Market-Based, and 3)
Scope 1 Emissions:4,263 tCO2e/year
Scope 2 Emissions:15,306 tCO2e/year (Market-based)
Scope 3 Emissions:440,860 tCO2e/year
Renewable Energy Share:26.81% of total energy use
Total Energy Consumption:301,686 GJ/year
Water Consumption:288,896 m3/year
Waste Generated:3227.5 tons/year
Carbon Intensity:Not disclosed
ESG Focus Areas
- People
- Planet
- Prosperity
Environmental Achievements
- -34% in Scope 1 and 2 market-based emissions, as compared to 2019
- -10% in Scope 3 emissions, as compared to 2019
- Reached 100% electric energy from renewable sources in Italy (two years ahead of schedule)
- B2C packaging 90% plastic-free, 8% of remaining 10% is recycled or bio-based plastic
Social Achievements
- Launched Armani/Global Inclusion project
- Collaboration with Fondazione Umberto Veronesi for diversity and prevention webinars
- Collaboration with Milan Polytechnic Institute for diversity training
- Renewed ‘Armani People Care’ welfare plan
- Ranked 1st in Italy and 2nd in Europe in the Financial Times Diversity Leaders ranking
Governance Achievements
- Strengthened sustainability governance structure with a Sustainability Managing Director appointed within the Board of Directors and a Group Sustainability Director
- Established a Strategic Sustainability Committee
- Developed a Sustainability Code for Suppliers
- No instances of discrimination or corruption in 2021
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Reduce absolute GHG emissions from scope 3 by 42% compared to 2019 by 2029
- Achieve 25% of low-impact raw materials by 2025
- Achieve 100% traceability of key raw materials by 2025
Short-term Goals:
- Reduce absolute GHG emissions of scope 1 and 2 by 50% compared to 2019 by 2030
- Use 100% electricity from renewable sources for the Group’s Italian offices and shops by 2023
- Use 100% electricity from renewable sources for the Group’s European offices and shops by 2025
- Achieve 100% FSC/PEFC certified paper: B2C by 2025 and B2B by 2030
- Disposal of single-use plastic from packaging: B2C by 2025 and B2B by 2030
- Buy 50% recycled plastic for packaging: B2C by 2025 and B2B by 2030
Environmental Challenges
- Supply chain disruptions
- Climate change impacts (extreme weather events, etc.)
- Maintaining sustainability across global operations
- Data collection and processing challenges
Mitigation Strategies
- Developed alternative sourcing strategies
- Implemented a climate change mitigation plan
- Strengthened sustainability governance
- Refined data collection and processing methods
Supply Chain Management
Supplier Audits: ~70% of new suppliers evaluated on social and environmental criteria in 2021
Responsible Procurement
- Sustainability Code for Suppliers
- Product Restricted Substances List (PRSL)
- Manufacturing Restricted Substances List (MRSL)
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
- Natural disasters
Transition Risks
- Disruptive legislative and regulatory changes
- Unavailability of raw materials
Opportunities
- Reduced energy costs through renewable energy
- Development of eco-friendly products
Reporting Standards
Frameworks Used: GRI Standards: Core option
Certifications: ISO 20121 (sustainable events)
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- SDG 12 (Responsible Consumption and Production)
- SDG 7 (Affordable and Clean Energy)
- SDG 13 (Climate Action)
- SDG 6 (Clean Water and Sanitation)
- SDG 8 (Decent Work and Economic Growth)
- SDG 15 (Life on Land)
Initiatives contribute to these goals through various actions described in the report
Sustainable Products & Innovation
- Eyewear with bio-based acetate frames
- Clothing with organic cotton and recycled materials
- Watches with recycled plastic straps
- Packaging with recycled and bio-based materials
Awards & Recognition
- PETA Fashion Award (Fur Free Policy)
- CA-RI-FE Award (reintroduction of textile hemp)
- Special recognition of responsible innovation for MY WAY fragrance
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:539,415 tCO2eq
Scope 1 Emissions:4,173 tCO2eq
Scope 2 Emissions:7,716 tCO2eq (Market-based)
Scope 3 Emissions:527,526 tCO2eq
Renewable Energy Share:68%
Total Energy Consumption:298,292 GJ
Water Consumption:383,613 m3
Waste Generated:7,313 tons
Carbon Intensity:Not disclosed
ESG Focus Areas
- People
- Planet
- Prosperity
Environmental Achievements
- Reduced Scope 1 and 2 Market-based emissions by 60% vs. 2019
- Reduced Scope 3 emissions (Category 1 and Category 9) by 17% vs. 2019
- Increased electricity from renewable sources to 68% at a global level (+33% vs. 2021)
- 88% plastic-free B2C packaging, 89% of plastic recycled
- 74% plastic-free B2B packaging, 85% of plastic recycled or plant-based
Social Achievements
- 51% women senior executives and managers, 62% women employees
- Increased training hours by 14% vs. 2021
- Launched Armani/Flow project to raise awareness of "invisible" diversity
- Ranked among top five companies in Italy and Europe in the Financial Times Diversity Leaders Index
Climate Goals & Targets
Long-term Goals:
- Achieve 25% lower-impact raw materials by 2025
- Achieve 100% traceable raw materials by 2030
- Provide clean water for 1 million people by 2030 (Acqua for Life)
Medium-term Goals:
- Reduce absolute Scope 1 and 2 atmospheric emissions by 50% compared to 2019 by 2030
- Reduce absolute Scope 3 atmospheric emissions by 42% compared to 2019 by 2029
- Achieve 100% renewable electricity for all Group sites and stores by 2030
- Eliminate disposable plastics in B2B packaging by 2030
- Purchase 100% recycled plastic for at least 50% of plastic packaging by 2030 (B2B)
Short-term Goals:
- Eliminate disposable plastics in B2C packaging by 2025
- Purchase 100% recycled plastic for at least 50% of plastic packaging by 2025 (B2C)
Environmental Challenges
- Climate change, loss of biodiversity, collapse of ecosystems
- Failure to act on climate change
- Extreme weather events
- Environmental damage caused by man
- Natural disasters
- Damage to human health from pollution
- Cyberattacks
- Supply interruptions
- Violations of human rights along the supply chain
- Third-party ESG non-compliance
- Unexpected developments in reference markets
- Unavailability of raw materials
- Fraud and counterfeiting
- Disruptive legislative and regulatory changes
- Debt crisis in major economies
- Continued economic stagnation and inflation
- Business interruption due to external factors
- Macroeconomic developments
- Skilled labour shortage and staff turnover
- Pandemic epidemics and deterioration of mental well-being
- Labour and livelihood crisis
- Erosion of social cohesion and widespread youth disillusionment
Mitigation Strategies
- ESG risk mapping analysis in the supply chain
- Joining the 2025 Sustainable Cotton Challenge
- Joining the Manifesto for regenerative fashion of the Sustainable Markets Initiative (SMI)
- Implementation of a corrective action plan for suppliers with ratings below a desirable threshold
- Joining the International Accord for Health and Safety in the Textile and Garment Industry
- Refinement of the quantification methodology for GHG emissions
- Implementation of a reconditioning service for returned products
- Use of recycled or regenerated secondary raw materials and organically grown materials
- Strengthening IT security and establishing a cybersecurity strategy
- Implementation of policies for data protection and management
Supply Chain Management
Supplier Audits: Approximately 10% of new suppliers audited in 2022
Responsible Procurement
- Sustainability Code for Suppliers
- Product Restricted Substances List (PRSL)
- Manufacturing Restricted Substances List (MRSL)
- Code of Ethics
- Preference for recycled, regenerated, and renewable materials
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
- Natural disasters
Transition Risks
- Disruptive legislative and regulatory changes
- Unavailability of raw materials
Opportunities
- Increased use of renewable energy
- Development of sustainable products
Reporting Standards
Frameworks Used: GRI Standards
Certifications: ISO 20121, ISO 14067, ISO 14021
Third-party Assurance: KPMG S.p.A. (Limited Assurance)
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Emporio Armani Sustainable Capsule Spring Summer 2023 collection
- Giorgio Armani Neve collection
- EA7 uniforms made from recycled down
- A|X Armani Exchange products made from organic and recycled materials
- Armani Beauty refillable perfume bottles
Awards & Recognition
- Financial Times Diversity Leaders Ranking (Top five in Europe and Italy)