Climate Change Data

Environmental Metrics

ESG Focus Areas

• Energy
• Human Capital
• Local Communities

Environmental Achievements

• Avoided more than 1000 tons of CO2 thanks to the purchase of certified electricity and our photovoltaic system
• 100% of the leather purchased for the production of the outsoles has been certified by the Leather Working Group
• -43% reduction in electricity and natural gas consumption in 2020 compared to 2017

Social Achievements

• Launched a charity project, "Shoes Make a Difference," donating €100,000 to the Fatebenefratelli Sacco Hospital in Milan and donating online sales proceeds for a week to the same hospital.
• Implemented a new program allowing employees to choose between monetary or welfare service payment for their "Production Bonus"
• Continued investing in talent development by strengthening the partnership with CERCAL, the International Footwear School and Research Centre

Governance Achievements

• No legal breaches or sanctions received during the reporting period
• Adopted an organization, management, and control model in accordance with Italian Legislative Decree no. 231 dated June 8, 2001, to prevent liability for offenses

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic significantly impacted sales due to store closures and lockdowns
• Pandemic affected energy management due to facility closures and safety measures

Mitigation Strategies

• Implemented remote working for offices, activated healthcare insurance and redundancy funds for employees, and implemented safety measures in the factory upon reopening.
• Optimized energy consumption through investments in a metering system, high-efficiency heat pump, and daily oversight of consumption patterns.

Supply Chain Management

Responsible Procurement

• Selection of suppliers based on ethical and environmental clauses, adherence to Restricted Substances List (RSL), Quality/Cost/Effectiveness rankings

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards: Core option, UNGC

Certifications: Leather Working Group (for outsoles)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

Initiatives related to energy efficiency, employee well-being, sustainable sourcing, and emissions reduction

Sustainable Products & Innovation

• Virtual Collection based on 3D sampling

Environmental Metrics

ESG Focus Areas

• Climate Change
• Corporate Governance
• Business Ethics
• Health and Safety
• Employee Well-being
• Responsible Investment
• Sustainable Supply Chain
• Community Investment
• Human Rights

Environmental Achievements

• Total GHG emissions decreased by 0.75% from 2020 to 21.965 million tonnes. GHG emissions intensity decreased by 20.47% from 2020 to 103.9 tonnes/RMB million of revenue.
• Total energy consumption intensity decreased by 15.43% from 2020 to 274.4 MWh/RMB million of revenue.
• 35 green building certifications obtained.
• Significant reduction in energy consumption intensity and GHG emissions at Atlantis Sanya through technological innovation and renewable energy use.
• Atlantis Sanya achieved carbon neutrality of approximately 15,139 tonnes of Scope 1&2 GHG emissions.
• Fosun Pharma reduced carbon emission intensity by 15% compared to 2020.
• Fosun Pharma reduced combined energy intensity by 10% compared to 2020.

Social Achievements

• Customer complaint response rate and resolution rate of 100% and 95% respectively.
• 100% of suppliers received credit investigations.
• Approximately 96,000 employees, with 48.2% female employees.
• 100% of employees received regular performance and career development reviews.
• Accumulative training time of 1,505,959.4 hours.
• Employee training rate of 70.7%.
• Fosun Foundation donated approximately RMB 154 million.
• MSCI ESG Rating upgraded from A to AA.

Governance Achievements

• Established ESG Board Committee, ESG Executive Committee, and ESG Management Committee.
• Established Carbon Neutrality Committee and Working Group.
• Linked Board and senior management’s salary to ESG performance.
• Implemented a comprehensive whistleblowing mechanism, resulting in the investigation and conclusion of 10 corruption and bribery cases and 23 cases of dismissal or disciplinary punishment.

Climate Goals & Targets

Environmental Challenges

• Surging uncertainties in global politics and economy posed challenges to capital markets, supply chain management, and production and operation.
• Climate-related risks, including physical risks (extreme weather) and transition risks (regulatory changes, market shifts).

Mitigation Strategies

• Deployed global resources and leveraged internal ecosystem synergies.
• Integrated climate-related risks into corporate risk management framework.
• Set ambitious carbon reduction target: peak emissions by 2028 and carbon neutrality by 2050.
• Developed effective climate change mitigation and adaptation strategies.
• Implemented energy-saving measures, increased renewable energy use, and invested in carbon-neutral products and services.

Supply Chain Management

Supplier Audits: 411 green supply chain audits at Fosun Pharma, 30 on-site audits at FTG (82% coverage)

Responsible Procurement

• Supplier Code of Conduct
• Supplier ESG Rating Scale (FTG)
• Green supply chain initiatives (Fosun Pharma)
• Local procurement plans (FTG)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, flooding

Transition Risks

• Regulatory changes, market shifts, rising raw material costs

Opportunities

• Development of energy-efficient products and services, participation in carbon transactions, application of clean technologies

Reporting Standards

Frameworks Used: GRI Standards, UNGC, TCFD (partially implemented)

Certifications: ISO 14001, ISO 45001, ISO 9001, ISO 50001, ISO 13485:2016, ISO 10002:2018, LEED, Green Globe, EarthCheck

Third-party Assurance: Ernst & Young

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 11: Sustainable Cities and Communities
• Goal 13: Climate Action
• Goal 17: Partnerships for the Goals

The report details how various initiatives contribute to these SDGs.

Sustainable Products & Innovation

• Green and low-carbon products
• Biosimilars
• Energy-efficient technologies

Awards & Recognition

• MSCI ESG AA rating
• Constituent of MSCI CHINA ESG LEADERS 10-40 and Hang Seng ESG50 Index
• Various other awards and accolades listed in the report

Environmental Metrics

ESG Focus Areas

• Energy
• Human Capital
• Local Communities

Environmental Achievements

• 100% of purchased electricity certified as produced from renewable sources for Italian factory, offices, and stores
• Over 1,260 tons of CO2 avoided thanks to the purchase of certified electricity and our photovoltaic system
• 24% of the entire electrical requirement of the San Mauro Pascoli plant supplied by our photovoltaic system

Social Achievements

• 61% of technicians and artisans have been with the company for more than 10 years
• 63% of employees are women and 37% are men
• 96% of employees hold permanent contracts
• Implemented a comprehensive range of health and safety measures aimed at maximizing employee protection
• Continued to offer a flexible distribution of voluntary maternity and paternity leave

Governance Achievements

• No legal violations during the reporting period, nor did we receive any sanctions or fines regarding laws and regulations
• Updated the Organisational Model in April 2022 to comply with continuous updates of the applicable legal framework

Climate Goals & Targets

Environmental Challenges

• Rising energy and material prices
• Challenging times in the fashion sector
• Increase in operating costs due to rising energy prices and raw materials
• Pandemic restrictions impacting stores in China and Japan

Mitigation Strategies

• Purchase of certified electricity and use of in-house photovoltaic system
• Focus on securing high-quality and reliable production capacity
• Transition to a demand-focused model
• Strengthened omnichannel system
• Implemented energy efficiency and emission reduction initiatives
• Implemented a comprehensive range of health and safety measures

Supply Chain Management

Responsible Procurement

• Ethical and environmental clauses in supply agreements
• Compliance with Restricted Substances List (RSL)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards 2021, UNGC

Sustainable Products & Innovation

• SI ROSSI collection

Awards & Recognition

• Third place for The Craft & Italian Artisanship Award at the 2022 CNMI Sustainable Fashion Awards