SALVATORE FERRAGAMO GROUP SUSTAINABILITY REPORT 2017
CONSOLIDATED NON-FINANCIAL STATEMENT PURSUANT TO ITALIAN LEGISLATIVE DECREE 254/2016 LETTER FROM THE CHAIRMAN
Our Group has been on the path to corporate social responsibility for years now, believing that sustainability is not ancillary, but rather a commitment that must be part of growth strategies and acted on by taking a long-term approach.
In 2017, we strengthened our commitment to sustainability by adopting a three-year plan centered on sustainability goals and formalizing a policy that establishes conduct guidelines with the aim of promoting a culture of sustainability.
The purpose of this document, which applies to the entire Salvatore Fer- ragamo Group, is to share what we have achieved so far as well as fu- ture challenges and objectives, maintaining a transparent relationship with stakeholders.
Thanks to our people and their positive attitude, the value of sustainability has spread throughout the organization and is now at the center of our growth strategies. Our employees represent the essence of our Brand, and this is why we seek to maximize their professional and individual po- tential by offering them opportunities for growing, achieving well-being, and building respect. As evidence of our commitment to the health and safety of our people, in 2017 we obtained the OHSAS 18001 certifi cation for the Osmannoro site and the Italian stores. We plan to expand the scope of the certifi cation over the next few years.
We believe in our local community, a byword for history and culture, and its young talents, who are capable of devising solutions to modern problems and rejuvenating Italy's creative heritage. Staying true to Ferragamo's DNA, we want to celebrate the past and future of Italy's tradition by fund- ing the restoration of major artworks such as the Fountain of Neptune in Florence's Piazza della Signoria as well as promoting experiments with sustainable materials, constantly upholding the quality standards of Made in Italy products and in keeping with the innovative spirit of our Founder.
For us, also protecting the environment is a priority when setting our goals. In 2017, we invested in limiting consumption and obtaining important envi- ronmental certifi cations for our facilities, in order to minimize the environ- mental impact of our operations. The new Logistics Center currently being built at the Osmannoro site testifi es to this commitment: designed to the highest effi ciency standards, it will receive the LEED Platinum certifi cation
“There is always something more beautiful, more perfect, still to be created”. This quote from my father drives us to constantly improve ourselves and raise the standards, promoting a responsible business approach based on the respect for people, the community, and the environment every day.
Ferruccio Ferragamo
This Sustainability Report is dedicated to Settimio, who embraced the world of the Salvatore Ferragamo with his quiet smile. He has always been a point of reference and a byword of commitment, dedication, and reliability.
Sustainability Report 2017 3 TABLE OF CONTENTS
1 4
RESPONSIBLE PASSION 6 A SHARED HISTORY 44
Commitment Diversity and equal opportunity Sustainability Plan and SDGs Attracting and developing talent Stakeholders and materiality Wellbeing of people
2 5
SALVATORE FERRAGAMO GROUP 16 CULTURE AND PARTICIPATION 56
Numbers Link with the community and the local territory History and market Salvatore Ferragamo Museum Responsible management Ferragamo Foundation 3 6
MADE IN ITALY QUALITY 26 PROTECTING THE ENVIRONMENT 72
Tradition and innovation Responsible consumption Suppliers and contract manufacturers Emissions monitoring Customer focus Certifi cations and green initiatives
METHODOLOGY ANNEXES BOUNDARIES OF THE GROUP'S MATERIAL ASPECTS GRI CONTENT INDEX AUDITOR'S REPORT
Sustainability Report 2017 5 RESPONSIBLE PASSION
Commitment Sustainability Plan and SDGs Stakeholders and materiality
7 RESPONSIBLE PASSION
COMMITMENT
‘Creativity, innovation and excellent craftsmanship have been the core values of the Salvatore Ferragamo brand since it began, and are tangi- ble elements in the design and production of each and every one of its creations. The Brand’s deep ties to the local area, its culture and commu- nity have instilled in the Salvatore Ferragamo an ever greater awareness of the need for a sincere and significant commitment to protecting the places where it operates and the people who work for it, a commitment that goes beyond mere compliance with the provisions of national and international laws, standards and regulations’.
The inspiration driving the business of the Salvatore Ferragamo Group is founded on passion for excellent craftsmanship, creativity and innova- tion, while respecting the values that are part of the Brand's DNA. Among these values has always been sustainability in the sense of a model for how to act without compromise. Understanding and respecting these values translate into ethically correct behaviors, both inside and outside the Group, supporting it in terms of economic growth and credibility. The Salvatore Ferragamo Group decided to embark on its journey towards corporate responsibility by committing to adopt a strategy that puts this concept at the center of the decision-making progress, seeking to grow the business while considering also the positive and negative impact of its operations on society and the environment.
THE SALVATORE FERRAGAMO GROUP IN 2017
Sustainability Sustainability Policy 6 Plan
OF THE GROUP SDGs ADOPTED OF THE GROUP
Business International ‘Identity and more than Finance Award 81,000 Vision’
FOR THE GROUP SUSTAINABILITY PAGES VIEWED ON THE GROUP SPECIAL MENTION AWARD RECEIVED REPORT 2016 WEBSITE CSR SECTION FROM BBS FOR THE GROUP SUSTAINABILITY REPORT 2016
8 THE SUSTAINABILITY PATH OF THE SALVATORE FERRAGAMO GROUP In order to take an integrated ap- Responsibility Report Award in the based on the principles of sharing, proach to managing sustainability- “large companies” category and, extending the useful life of prod- related topics, since 2014 a cross- as a further step on the journey ucts, recycling and using renewable functional working group called towards corporate social respon- energy sources. Green Team has been set up, dedi- sibility, the Sustainability Report of 2014 2015 2016 2017 cated to designing and promoting the Salvatore Ferragamo Group Moreover, since 2011 the Salva- corporate responsibility initiatives. was published and subjected to tore Ferragamo has been a mem- The team consists of people from limited assurance. The Salvatore ber of the Working Group on Sus- several corporate departments, Ferragamo Group Sustainability tainability sponsored by the Ital- Creation of a cross- Drafting of the fi rst Preparation and publication Preparation and Preparation and publication allowing to bring together cross- Report 2016 won the 2017 Busi- ian Chamber of Fashion (CNMI), functional working group Sustainability Report of the Sustainability publication of the of the Sustainability Report functional skills in order to pro- ness International Finance Award which aims to fi nd an Italian way called Green Team, 2014 for Salvatore Report 2015 for Salvatore Sustainability Report 2016 2017 for the Salvatore mote all-around sustainability. The in the category “Financial State- to making fashion responsible and dedicated to designing Ferragamo S.p.A. (year Ferragamo S.p.A., subject relating, for the fi rst time, Ferragamo Group, subject to main responsibility of the Green ments, Integrated Reporting, and sustainable as well as promote the and promoting corporate zero). to limited assurance. to the Salvatore Ferragamo limited assurance. Team is improving the quality of Financial Communication” as well adoption of responsible business responsibility initiatives. Group, subject to limited the workplace and the internal and as the “Identity and Vision” Special models throughout the fashion in- Creation of an e-mail Creation on the Salvatore assurance. Preparation and publication external impact of the Company's Mention from Biblioteca Bilancio dustry's value chain. Identifi cation of address specifi cally Ferragamo Group website of the Salvatore Ferragamo operations, as well as facilitating Sociale. stakeholders. dedicated to Corporate of a section dedicated to Achievement of the 2017 Group Sustainability Policy, a direct relationship with the local To help people connect with the Social Responsibility. sustainability, available in Business International available in English and community in all its environmental In 2017, to consistently implement Ferragamo world and strengthen Initial defi nition of English and Italian. Finance Award in the Italian in the CSR section of and human facets. The particular sustainability initiatives across all the bond between stakeholders economic, social and Addition of a section category “Financial the Group's website. structure of the Green Team ena- Salvatore Ferragamo Group com- and the Brand, the Group has environmental topics dedicated to Corporate Update of mapping of Statements, Integrated bles the development of sustaina- panies, a Sustainability Policy was adopted a strategy that connects which are most important Social Responsibility on stakeholders. Reporting, and Financial Preparation of the bility initiatives as part of materials drafted and published, in order to the online and offl ine worlds also for the Salvatore the Company's intranet. Communication” as well as Salvatore Ferragamo research and development, com- establish a corporate culture ori- for the purposes of sustainability- Ferragamo (materiality Update of materiality the “Identity and Vision” Group Sustainability Plan, munication, packaging, informa- ented to equity and professional related topics. In 2016, the Salva- analysis). analysis. Special Mention from outlining the sustainability tion systems, logistics, operations, expertise, promote honesty, integ- tore Ferragamo Group launched a Biblioteca Bilancio Sociale goals to be achieved within environment and safety, commu- rity and transparency, encourage section entirely dedicated to cor- for the Group Sustainability the next three years. nity & charity, purchasing of raw sustainable growth, stimulate a porate responsibility on its web- Report 2016. materials, human resources, mo- conversation on business ethics, site, highlighting the most impor- bility and store planning. In 2017, and make stakeholders more ac- tant social responsibility projects Consideration of the the Merchandising Function joined countable. Prepared in accord- the Group has promoted over the Sustainable Development the Green Team, strengthening ance with the principles and rules years. In 2017, new content was Goals (SDGs) as part of the projects focusing on innova- of the Group's Code of Ethics added to the website to further the Group sustainability tive and sustainable materials in as well as the framework of the engage stakeholders: an interac- strategy. accordance with the Brand's crea- United Nations Sustainable Devel- tive digital version of the Group tive spirit. In addition, since 2016 opment Goals (SDGs), the Policy Sustainability Report 2016 was the Control and Risk Committee seeks to encourage the Group's published, offering a user-friendly has been supervising sustainabili- governance bodies, employees, experience optimized for mobile ty-related issues with the goal of and collaborators to share ideas devices, later joined by the newly monitoring the inclusion of respon- and recommendations to imple- adopted Sustainability Policy. In sible practices into the Group's ment sustainability in day-to-day addition, the Brand's sustainability business strategies. To be trans- operations. initiatives were able to drive en- parent about its operations, the gagement through social channels: Group has committed to reporting In addition, as evidence of its com- in April 2017, the announcement on its corporate social responsibil- mitment to sustainable growth, of the publication of the Salvatore ity initiatives. in November 2017 the Group Ferragamo Group Sustainability signed the Manifesto for Circu- Report on the Brand's LinkedIn Since 2014, Salvatore Ferragamo lar Economy, which establishes profi le was viewed over 130,000 has been preparing the Group Sus- an Alliance to promote innovative times in the fi rst week. tainability Report in accordance and sustainable projects. The Al- with the international guidelines of liance, spearheaded by Enel and the Global Reporting Initiative GRI– Intesa San Paolo, includes inter- G4. Salvatore Ferragamo S.p.A. nationally recognized companies fi rst Corporate Sustainability Re- from several Italian industries and port won the Aretè Corporate Social seeks to develop business models
10 Sustainability Report 2017 11 SUSTAINABILITY PLAN AND SDGs
In 2017, in order to create a vision corporate social responsibility values part of production and consump- shared by the whole Group, the into the Group's growth strategies. tion processes; fi rst Sustainability Plan was draft- The Group's Sustainability Plan • Monitoring chemical substances ed identifying the main goals to be identifi es specifi c initiatives to be inside raw materials and fi nished pursued concerning strategy and implemented over three years in or- products; governance, people and principles, der to achieve the following goals: • Promoting and using sustainable protection of the environment, and • Embedding sustainability into materials and by-products; culture and participation. The Sus- business strategies and making • Planning and implementing chari- tainability Plan is updated annually the relationships with internal and table initiatives to protect the and prepared on the basis of the external stakeholders more trans- health of women and children as Group's sustainable development parent; well as promote Italy's culture goals: in 2016, building on the 17 • Increasing the frequency of in- around the world; Sustainable Development Goals ternal communication on sustaina- • Leveraging the company's (SDGs) of the United Nations to bility-related topics and promoting know-how and heritage in the con- promote sustainable growth and initiatives to engage stakeholders; text of craftsmanship and Made in minimize negative impacts on the • Maximizing human capital at the Italy products as well as promot- planet, the Company identifi ed the Group level; ing relevant training opportunities 6 main objectives that will drive • Continuously improving occupa- (initiatives promoted by the Salva- its operations. The Sustainabil- tional health; tore Ferragamo Museum and the ity Plan was born from the need • Promoting Company Welfare ini- Ferragamo Foundation). to formalize the commitment to tiatives and strengthening internal achieving these goals, in keeping communication; with the values that have always • Monitoring the supply chain and driven the Group's business. The collaborating with suppliers on Plan was shared with top manage- shared projects; ment and the Control and Risk • Constantly improving energy and Committee, which supervises sus- environmental effi ciency; tainability-related issues, to embed • Reducing the use of resources as
Good health and wellbeing In line with its own Charity Policy, the Salvatore Ferragamo Group is committed to promoting and supporting initiatives aimed at protecting the health of women and children.
Quality education The Salvatore Ferragamo Group, in collaboration with the Ferragamo Foundation, is committed to investing in the education and training of those who intend to work in the fashion and design world and in the highest and most artistic forms of Italian craftsmanship, in line with the stylistic values and canons expressed in the work of its Founder.
Affordable and clean energy The Salvatore Ferragamo Group is committed to protecting and safeguarding the environment through continuous improvement in energy effi ciency in its consumption and by promoting the use of renewable sources.
Decent work and economic growth The Salvatore Ferragamo Group focuses its commitment on facilitating and valorizing the professional development of its peo- ple, while respecting the historic community values, in order to incentivize innovation and creativity, thus also guaranteeing the healthiness of its workplaces. Sustainable cities and communities The Salvatore Ferragamo Group is committed to directing signifi cant attention and resources to artistic and cultural initiatives, in order to guarantee more responsible management of cities and promote culture in all its forms and manifestations.
Responsible consumption and production The Salvatore Ferragamo Group is committed to guaranteeing responsible management in its processes to produce and consume resources, raw materials and packaging materials, investing in quality in order to reduce environmental impact and extend the life cycle of its products, and reporting on its business on the basis of the principle of transparency.
12 13 STAKEHOLDERS AND MATERIALITY SALVATORE FERRAGAMO GROUP'S MATERIALITY ANALYSIS
The numerous elements to the Salvatore Ferragamo has identi- schools and universities, regula- sustainability path undertaken by fi ed and selected its stakeholders tory and governmental bodies the Salvatore Ferragamo Group based on the awareness of its so- and the public administration, lo- are based on an approach fo- cial role and deep connection with cal communities, non-governmental cused on transparency, integrity the local community, which is nec- organizations (NGOs), media and and seriousness, with the aim of essarily related to the conduction infl uencers and trade associations. involving stakeholders in the eco- of its operations, for the purposes nomic, social and environmental of understanding their expecta- objectives of its own business. tions and translating them into ac- The Group does not simply pro- tionable objectives. mote social responsibility initia- The following have been identi- tives, but recognizes the value of fi ed as internal stakeholders: em- sustainability as part of its corpo- ployees, shareholders, investors, rate strategy and puts forward distributors, suppliers, and work- innovative proposals for its stake- shops. External stakeholders have holders. been identifi ed in fi nal customers,
SALVATORE FERRAGAMO GROUP'S STAKEHOLDERS' MAP
TRADE ASSOCIATIONS The Salvatore Ferragamo Group's and prioritize material topics. Spe- years, future materiality analysis materiality analysis refl ects the cifi cally, the update process took updates will provide increasingly topics material to the Group as into account the opinions of stu- engaging stakeholders, in accord- well as the concerns and expec- dents from major universities as ance with the Sustainability Plan. MEDIA AND INFLUENCERS FINAL CUSTOMERS tations of its stakeholders. After part of an initiative led by SDA To this end, in order to maintain a SHAREHOLDERS conducting it for the fi rst time in Bocconi School of Management, constant dialog with its stakehold- 2014 with the participation of the Store Managers and Assistant ers and to promote a culture of SUPPLIERS AND CONTRACT the Green Team and top man- Store Managers of European bou- sustainability, the Group recently MANUFACTURERS agement, the Group updated the tiques, and the Group's youngest developed a digital platform allow- INVESTORS materiality analysis in late 2016. employees through a web-based ing employees to access several Since the fi rst edition, it has been survey. All categories of stakehold- videos on sustainability-related ers involved contributed to prioritiz- NGOs performing this analysis in accord- topics as well as express their ance with the Global Reporting ing the material topics and provided ideas and opinions on the Group's Initiatives (GRI-G4) Guidelines as insights on potential sustainability progress in this area. Launched in well as the AA1000 Stakeholder projects the Group could focus on early February 2018 in Italy and EMPLOYEES DISTRIBUTORS Engagement Standard Guidelines in the short, medium and long term. Europe, the platform will be rolled on identifying, mapping and de- The Group sees these opportuni- out to employees of the other fi ning stakeholders’ expectations, ties for discussion with its stake- areas in which the Group operates. holders as crucial, since they allow SCHOOLS AND UNIVERSITIES processing the results of their LOCAL COMMUNITIES engagement and prioritizing them. to steer the sustainability decision- The materiality analysis was up- making process in the direction of dated with the input of the Group's the actual expectations of stake- Green Team and top management holders. The Group assessed the REGULATORY AND GOVERNMENTAL as well as by engaging different feasibility of all the ideas gath- BODIES AND PUBLIC ADMINISTRATION categories of stakeholders both ered as part of stakeholder en- within and without the Group, ask- gagement initiatives, and some of ing them for their opinion as part them became part of the Group of the process to defi ne, assess Sustainability Plan. As in previous
14 Sustainability Report 2017 15 SALVATORE FERRAGAMO GROUP
Numbers History and market Responsible management
16 17 SALVATORE FERRAGAMO GROUP
NUMBERS
The Salvatore Ferragamo Group, which has always been a byword of the highest Made in Italy quality, is one of the main players in the lux- ury sector and its origins go back to 1927. The Group mainly creates, produces and sells footwear, leather goods, apparel, silk products and other accessories, as well as perfumes for men and women. The range of products is completed with eyewear and watches which are made under license by third parties in Italy and abroad, with the aim of drawing on local excellences.
The Salvatore Ferragamo Group includes Salvatore Ferragamo S.p.A. as the Parent Company and the subsidiaries1 which are consolidated on a line by line basis in which the Parent Company holds, directly or indirectly, the majority of voting rights and over which it exercises control. The subsidiar- ies are grouped into fi ve geographic areas: Europe, North America, Central and South America, Asia Pacifi c and Japan.
The Group works constantly to consolidate and increase over time the value of the brand and maintains high quality standards for the products and for the distribution processes through investment in research, product innovation, IT and business support.
THE SALVATORE FERRAGAMO GROUP IN 2017
685 248.5 more than 90
STORES IN THE WORLD MILLION EURO IN EBITDA COUNTRIES OF PRESENCE more than 4,100 118.6 1,393.5 EMPLOYEES IN THE WORLD MILLION EURO GROUP NET PROFIT MILLION EURO IN REVENUES
1 For more information on the Group companies, see the Salvatore Ferragamo Group's Annual Report at 31 December 2017.
18 19 HISTORY AND MARKET
18981923 1927 1936 1938 1947
Salvatore Ferragamo born in Bonito in After joining his siblings in America, The Salvatore Ferragamo Italia set up, Salvatore Ferragamo transfers the Salvatore Ferragamo makes the famous In Dallas Salvatore Ferragamo receives the province of Avellino. Salvatore Ferragamo opens the producing women’s shoes. Opens the shoe laboratory to Palazzo Spini Rainbow model for Judy Garland, the the Neiman Marcus Prize for his Hollywood Boot Shop marking the fi rst laboratory in Florence. Feroni, which he then bought in 1938 year after inventing the patent for the "Invisibile" sandal. start of his career as "shoemaker to and is still the registered offi ce of the cork wedge heel. the stars". Group. 1950s1960s1970s 1978 1986 1990
The women’s leatherwear and Ready- After the death of the Founder, his widow Launch of the fi rst men’s Ready-to-Wear Creation of Vara, one of the most Opening of the fi rst DOS in Asia (Hong Creation of the bag with the famous to-Wear lines are created. The success Wanda takes charge at the Company. collections, men’s footwear, silk and famous shoes by the Salvatore Kong) and entry into the Asian market. Gancino decorative symbol. is now international and the shop in In 1965 the production of bags starts. accessories. Ferragamo. Florence is visited by celebrities such as Audrey Hepburn and the Dukes of Windsor. 1995 199820032006 2011 2017
Inauguration of the Salvatore Ferragamo Launch of the Salvatore Ferragamo Realization of the fi rst Salvatore Start of the Ferragamo's Creations Salvatore Ferragamo S.p.A. listed on Appointment of Paul Andrew as Creative Museum at Palazzo Spini Feroni, Fragrances and Eyewear lines. Ferragamo watches. collection, a limited production run of the Mercato Telematico Azionario Director of Women’s Collections. dedicated to shoes and the Company’s some of the most famous shoes made (screen-based stock exchange) organized history. by Salvatore. and managed by Borsa Italiana S.p.A.
First collection of jewelry presented.
20 Sustainability Report 2017 21 JAPAN No. OF STORES 74 NORTH AMERICA EUROPE No. OF STORES 106 No. OF STORES 173 ASIA PACIFIC No. OF STORES 268
CENTRAL AND SOUTH AMERICA No. OF STORES 64
Considering the whole distribution 290 sqm of footwear, bags and edition collection of Women's hand- structure, the Ferragamo Group accessories for Men and Women. bags and small leather goods spe- is present in over 90 countries The boutique has been revamped cifi cally designed for the Asian across the world. At 31 Decem- to highlight the Brand's style. In No- market. ber 2017 the Group’s distribution vember, the historic Canton Road network, consisting of a total of Flagship Store in Hong Kong reo- 685 stores, could count on 410 di- pened with an exclusive night fea- rectly operated stores (DOS) and turing celebrities, infl uencers and 275 third points of sale (TPOS) fans of the Brand. The store's new in the Wholesale and Travel Retail gorgeous look is a perfect exam- channel, as well as on its presence ple of Italian style and craftsman- in leading Department Stores and ship, refl ecting Ferragamo's qual- top of the range multi-brand Spe- ity, creativity, and elegance. The cialty Stores. attention to detail guided the reno- In 2017, the Group celebrated the vation since its early stages, allow- reopening of some of the Brand's ing the store to obtain the LEED most representative stores, tes- Gold certifi cation-a recognition of tifying to its constantly evolving energy and water effi ciency, the global presence. The boutique in- excellent choice of materials, con- side the ION Orchard shopping struction work management, inno- mall, the place to go for luxury vation, and environmental quality. shopping in Singapore, reopened The occasion was marked by the in July, offering approximately introduction of a special limited
22 RESPONSIBLE MANAGEMENT
Salvatore Ferragamo S.p.A.'s Cor- Company and its interaction with stakeholders and the market gen- such risks, the Group has put in its guiding principles, the Parent adopted by the Parent Company porate Governance system com- all stakeholders. erally and transparent information place numerous controls linked to Company offers training sessions and is applicable to all subsidiaries, plies with the principles of the in their regard; creating value from the local ter- for all employees. The Salvatore which will amend it based on local Corporate Governance Code for Concerning risks, the Salvatore • Compliance risks connected to ritory, responsible communication Ferragamo decided to formalize legal and organizational require- listed Companies issued by Borsa Ferragamo Group adopts an En- the failure to comply with laws and and marketing, respect of human its care and attention for its own ments. Italiana S.p.A. The main corporate terprise Risk Management (ERM) regulations to which the Salva- rights in the supply chain and the people in the Company Regulation governance body is the Board of model to support top management tore Ferragamo Group is subject. promotion of integrity and ethics that sets out the principles under- It is possible to report any failure Directors, which has the primary in identifying the main business As far as sustainability within this in business. Specifi cally, the Group lying the employment relationship to comply with the Code of Ethics responsibility for determining and risks and how to manage them, as category is concerned, the Group has a specifi c procedure in place as well as the main rights of Fer- and internal procedures, including pursuing the strategic objectives well as organizing the relevant con- has adopted an Organization, Man- for the accreditation, qualifi ca- ragamo employees. the 231 Model and the Anti-Cor- of the Company and of the Group. trol system. The system adopted agement and Control Model pursu- tion and certifi cation of suppliers ruption Policy, as well as applica- The current Board was elected envisages: updating of the map- ant to Italian Legislative Decree and workshops, performs audits The Group's Code of Ethics, which ble laws and regulations, through by the Shareholders’ Meeting on ping of risks, identifi cation and as- 231/2001 and a Code of Ethics on the supply chain, and, in 2017, was updated in 2016, outlines dedicated channels such as the 24 April 2015 according to the sessment of the risks and controls as well as implemented an Anti- set out on a path to preparing and the standards of ethics and con- whistleblowing system, which cov- single list submitted by the major- adopted to contain them before Corruption Policy, and is current- implementing a Supplier Code of duct, including the protection of ers the entire Group. All employ- ity shareholder Ferragamo Finan- defi ning the opportune monitoring ly preparing a Supplier Code of Conduct. In addition, the Parent employees’ health and safety, the ees can use this tool to submit a ziaria S.p.A., except for Eraldo and operating strategies. Specifi - Conduct. Company has adopted an OHSAS environment, Made in Italy prod- report, either anonymously or not, Poletto, who was appointed by cally, below are the macro-catego- 18001 Occupational Health and ucts, the social value of the com- with the utmost confi dentiality and the Shareholders’ Meeting on 27 ries of risks and the main impacts Specifi cally concerning social top- Safety Management System for all pany, and the centrality of human privacy. The Ethics Committee ex- April 2017 after being co-opted by in terms of sustainability: ics, the Group monitors the risks the Company's Italian offi ces and resources. On the one hand, the amines and investigates all com- the Board on 2 August 2016. On • Market and strategic risks, in associated with the supply chain, stores as well as an Organization, Group encourages everyone to plaints received to assess whether 24 April 2015 the Shareholders’ other words risks relating to the the local community and occupa- Management and Control Model spontaneously share, comply with, they are legitimate and take action meeting also nominated Wanda Mi- general and/or specifi c macro- tional health and safety. It con- pursuant to Italian Legislative De- and disseminate the Code of Eth- as it sees fi t. letti Ferragamo as the Honorary economic trends on the markets stantly monitors and regularly cree 231/2001 that governs the ics; on the other hand, it requires President, by way of recognition where the Group operates. As evaluates the adequacy of the administrative liability of legal en- everyone operating on behalf of for the exceptional work she has part of this category, the main im- procurement model and the sup- tities. The latest version of the the Salvatore Ferragamo Group or done for the company over the pacts in terms of sustainability are ply chain as well as compliance Model was approved by the Board making contact with the Group to years. The Board of Directors has connected to internal and external with Made in Italy labeling require- of Directors in March 2017 and abide by and apply the Code, also also set up three advisory board events which could impact on the ments and OSH regulations in adopted by the subsidiary Ferrag- envisaging the application of disci- committees: the Nomination and Re- Brand’s image and reputation; terms of impact and probability amo Parfums SpA, after making plinary and contractual sanctions muneration Committee, the Prod- • Operating risks connected to of occurrence. With reference to the necessary changes. The goal is in the case of violation. uct and Brand Strategy Com- typical processes, which include environmental risks, on the other to prevent managers or the people mittee and the Control and Risk both external risks, such as those hand, the Group constantly com- that either report to or are super- In 2017, the Group adopted an Committee. relating to the abuse of intellec- plies with the environmental law vised by them from committing the Anti-Corruption Policy modeled af- tual property rights, and internal and the risks which stem from offenses set out in the Decree in ter global best practices and com- Following the amendments to the risks related to the organizational the activities, products or services the interest or for the benefi t of pliant with the highest standards. Corporate Governance Code for structure, processes and systems over which the organization has the Company. The Group has set This Policy formalizes the strong Italian listed companies, the Board adopted by the Group. The main the power of direct control, for up a Supervisory Body with inde- commitment to combating corrup- of Directors of Salvatore Ferraga- impacts in terms of sustainability example concerning emissions re- pendent powers of initiative and tion, rejecting it in any context or mo S.p.A. decided to delegate the are connected largely to safety leased into the atmosphere, ener- control, which is responsible for form, setting out the principles, following powers to the Group's and customer satisfaction, includ- gy and water consumption, or over supervising the implementation of, rules of conduct and necessary Control and Risk Committee: ing product quality, health, safety which the organization has only the and compliance with, the Model as control mechanisms to prevent • Support, with suitable inquiries, and the quality of workers’ profes- power of infl uence. In the broader well as constantly updating it. To any possible incident of corrup- the assessments and decisions sional life and the value chain; context of the Group's Compliance raise awareness of the Model and tion. The Policy has already been of the Board of Directors relating • Financial risks, in other words risk, the Group is strongly com- to the management of risks deriv- those risks which impact directly mitted to fi ghting corruption and ing from unfavorable events and on the economic result and the bribery. The same applies to em- facts which the Board has be- value of the Company’s assets ployee-related matters and the re- MEMBERS OF THE BOARD OF DIRECTORS OF THE PARENT COMPANY - 31 DECEMBER 2017 come aware of, including the risks and which are mainly connected spect for human rights: the Group which may be important in terms to external factors. The impacts considers its human capital to be < 30 30 - 50 > 50 TOT of sustainability (e.g. reputational in terms of sustainability are con- crucial, and is committed to maxi- risks) in the medium/long-term for nected to the economic-equity per- mizing people's potential at each MEMBERS OF THE BOARD OF DIRECTORS - 2 11 13 the Company’s business. formance and the systems adopt- step of the production chain while • OF WHICH EXECUTIVE 2 • Supervise sustainability issues ed for the reliability, timeliness and constantly monitoring risk factors. connected to the exercise of completeness of fi nancial report- In order to mitigate the probability • OF WHICH INDEPENDENT 4 the business undertaken by the ing, as well as the involvement of and impact of the occurrence of
24 Sustainability Report 2017 25 MADE IN ITALY QUALITY
Tradition and innovation Suppliers and contract manufacturers Customer focus
26 27 MADE IN ITALY QUALITY
THE SALVATORE FERRAGAMO GROUP IN 2017 more than new Modelleria 94% 268,000 OPENED IN NOVEMBER 2017 OF LEATHER HIDES PURCHASED COUNTERFEIT PRODUCTS SEIZED BY FROM ITALIAN TANNERIES CUSTOMS OFFICIALS IN 2017
+ 32.4% +50.2% more than 350 REGISTRATIONS FOR THE FOLLOWERS ON INSTAGRAM PATENTS AND TRADEMARKS E-COMMERCE NEWSLETTER COMPARED TO 2016
TRADITION AND INNOVATION
Since 1927, Salvatore Ferraga- Relentlessly pursuing innovation is mo has been a byword for Made a key value for the Group, rooted in Italy craftsmanship, creativity in Salvatore Ferragamo's legenda- and innovation. As an essential ry creative talent. The patent Ar- value that underlies every crea- chive of the Founder has over 350 tion, quality has always been part patents and trademarks, which at of the company's DNA, helping the start of the 21st century were the Brand spread and become collected in the Patent Fund of acknowledged all over the world. the State Central Archive, thus Salvatore Ferragamo has been a holding a technical and scientifi c pioneer in exporting Made in Italy know-how of inestimable value. quality and the whole Group has The Founder's restless creativity always been interested in develo- is refl ected in the massive amount ping and passing on the founda- of ideas he patented over the ye- tions of Italian craftsmanship. It is ars, such as the shell-shaped sole, not just a question of manual skills, the wedge, the sculpted heel, the but also of experience, utmost care invisible upper, the cage heel and and attention to detail, while con- the metal sole. stantly researching for new mate- To this day, the Archive represents rials and technologies to be incor- a source of innovation and inspi- porated into a handmade, sophisti- ration for new creations, allowing cated and contemporary product, to pass on Salvatore’s ideas and in line with the Founder's creative technical expertise to new genera- principles. Each product stands tions of creative talents. out for its original design, the atten- tion to the manufacturing process and its strong ties with the world of culture, art and cinema.
28 Sustainability Report 2017 29 The attention and passion for ma- Taormina Smart project, as part tation, acknowledging the impor- terials have always characterized of which the innovative textile tance of raising the awareness of Salvatore Ferragamo's heritage: and the pieces of the collection its creative teams about the use many of the Founder's most fa- were presented to the First La- of sustainable, innovative and high- mous creations are products of his dies that attended the G7 summit quality materials. Therefore, in Oc- time and clearly show he was sen- held in Taormina in May. In addi- tober 2017 the Group held an in- sitive to the economic and manu- tion, some pieces were displayed teractive workshop on sustainable facturing changes that swept Italy in the Smart Wardrobe area of the and innovative materials in part- in the 20th century. To strengthen Première Vision Smart Square at nership with Made By for its style, the sole of his shoes during the the Première Vision Paris trade production and material research autarky of the 1930s, Salvatore show held in September, as well as teams, to promote a culture of sus- Ferragamo had the brilliant idea of in the exhibition The Fabric of Cul- tainability and stimulate their inter- using cork and created the wedge, tures: Systems in the Making at est in new materials. In addition, in one of the fashion industry's most New York's Queens College, held December 2017, C.L.A.S.S. held revolutionary and enduring inno- between October and December. the Workshop “From Sustainability vations. This is the same reason The interest and attention gener- to Circular Economy: A brand new why he carefully selected and con- ated by the partnership with Or- dimension for fashion values” for stantly experimented with not only ange Fiber have further strength- the Salvatore Ferragamo's style exclusive types of leather, but also ened the Salvatore Ferragamo team, exploring the wide range of the most humble and unusual kinds Group's commitment to promoting opportunities offered by the circu- such as fi sh skin, used in some of young talents and innovating in lar economy in the textile industry. the Brand's most iconic models. the fi eld of the circular economy. Following the death of his Founder, During 2017, the Company ac- the Group has consolidated the The partnership with Orange Fiber tively participated in several con- tradition of experimenting with sus- was also presented at the Green ferences and academies set up to tainable and alternative materials Carpet Fashion Awards, the event start a conversation about sustain- by setting up a dedicated function, organized by the Italian Chamber of ability with Italian and international to constantly update the materials Fashion (CNMI) and Eco-Age, com- fashion leaders. Among others, the used, placing a special emphasis on bining glamour and sustainability. Salvatore Ferragamo participates environmentally sustainable ones. For the exclusive event, the Sal- in the Sustainable Luxury Acad- vatore Ferragamo developed a emy organized by Milan's Polytech- On 22 April 2017, the Salvatore green look made with GOTS-certi- nic University in partnership with Ferragamo Group celebrated Earth fi ed silk organza and Orange Fiber Mazars International. The Acad- Day by introducing the Women's ap- textiles, which were used also for emy's goal is to discuss and iden- parel capsule collection developed the shoes and the bag. The top tify the next steps required to com- together with Orange Fiber, the in- model Karolina Kurkova wore the pletely embed sustainability into novative startup founded by two look during the event held in Sep- the luxury industry's supply chains. young Sicilian women that creates tember at Milan’s Teatro La Scala, In May 2017, the Salvatore Fer- textiles from citrus juice byprod- which featured several Italian and ragamo participated in the Istituto ucts. Orange Fiber recycles these international fashion and luxury Marangoni Advisory Committee (or byproducts to create a sustainable leaders. IMAC) project, which brought to- material that refl ects the Group's gether public fi gures and experts values of creativity, innovation and As part of its efforts to support from the fashion and academic environmental sustainability. The young talents, in October 2017 world to discuss sustainability in Salvatore Ferragamo Group was the Company was selected as a fashion. the fi rst to introduce a capsule col- best practice for its sustainability lection featuring Orange Fiber's activities in the H&M Foundation's textile, whose products were glam- “The Accelerator” program, also ourized by the work of the Archi- meeting the winners of the Global tect and designer Mario Trimarchi, Change Award 2017, which cel- winner of the 2016 Compasso ebrates the most interesting pro- d'Oro award who created exclusive jects in the fi eld of sustainability Mediterranean-inspired prints. Dur- and circular economy. ing 2017, Ferragamo and Orange The Group has always been Fiber's partnership was on display working with organizations com- on several occasions, including the mitted to research and experimen-
30 Sustainability Report 2017 31 SUPPLIERS AND CONTRACT MANUFACTURERS2
Made in Italy, style and elegance: and Workshops of Raw Materials or these are the qualities that have Finished Product, accept the Code always characterized the Salva- of Ethics, consent to the process- tore Ferragamo Group's products. ing of personal data, submit a cer- Staying true to these values, the tifi cation of compliance with social Group has always been commit- security, welfare and occupational ted to supporting the development safety regulations, a self-certifi ca- of local communities, promoting tion concerning occupational health Italy's world-class manufacturers and safety, the acceptance of the and carefully purchasing products subcontracting policy, the accept- and services almost exclusively ance of the trademark protection from Italian suppliers. The philoso- agreement, and the REACH self- phy of the Founder, who always certifi cation required by the Euro- remained deeply connected to his pean Union to ban the use of haz- roots, still lives on in the strategy of ardous substances in manufactur- the Group, which relies on a wide ing processes. network of carefully selected and qualifi ed workshops known for The Group recognizes the impor- their outstanding craftsmanship. tance of manufacturing and selling Many of them have been working products which conform, in terms with the Salvatore Ferragamo for of chemical security, to the laws in years now. force on global markets, in order to protect the health of workers To deliver a quality product as well and consumers as well as reduce as to make production and distri- the environmental impact from bution more effi cient and fl exible, manufacturing and throughout the the Salvatore Ferragamo Group product's life cycle. The Europe- pays special attention to the key an Chemical Safety framework is stages of the supply chain, limit- based on the REACH Regulation, ing subcontracting to only one tier which bans the use of hazardous in order to better monitor quality substances in manufacturing pro- throughout the supply chain. Simi- cesses. For these purposes, en- larly, the Group directly manages vironmental and toxicity tests are the product development and in- conducted on several components dustrialization stages as well as and fi nished products such as ac- performs quality and safety con- cessories, footwear structures, trols, both at the start and at the leather, textiles, leather goods, end of the manufacturing process, ready to wear, PVC shoes and rub- on the whole production. ber soles, by selecting collaborators exclusively among certifi ed raw When selecting suitable suppliers, materials suppliers. Since 2016, the Group places special empha- the Salvatore Ferragamo Group sis on the technical assessment of has been addressing the topic of raw materials, semi-fi nished and chemical substances by submitting fi nished products as well as the its Restricted Substances Lists acquisition of documents concern- (RSLs). The Group has shared ing manufacturing plants and, in these voluntarily prepared lists with some cases, it follows up with a all its suppliers to eliminate or limit visit to the premises. Furthermore, the use of certain substances in the new potential partners must production processes and will up- fi ll out specifi c forms for the pur- date them in the future. poses of the Register of Suppliers
2 The reported data and information refer exclusively to suppliers related to production process.
32 SUPPLIERS IN FIGURES - 2017 YEARS OF PARTNERSHIP CONTINUITY WITH SUPPLIERS BY SECTOR - 2017
Footwear 21% 40% 26% 13%
99.5% 94% Accessories 25% 21% 25% 29% OF ACCESSORIES PURCHASED OF LEATHER HIDES PURCHASED FROM ITALIAN SUPPLIERS FROM ITALIAN TANNERIES Apparel 25% 50% 17% 8%
Handbags and suitcases 22% 41% 22% 15%
100% 99.4% Non-consecutive 1-3 years 4-10 years ≥11 years
OF OTHER RAW MATERIALS OF TEXTILES PURCHASED PURCHASED FROM ITALIAN SUPPLIERS FROM ITALIAN SUPPLIERS
YEARS OF PARTNERSHIP CONTINUITY WITH CONTRACT MANUFACTURERS BY SECTOR - 2017 In order to guarantee the essen- Virtually all of them are located in reduces the risk that external tial quality of the Brand’s prod- Italy. The selection and retention contract manufacturers might sell ucts, the Salvatore Ferragamo of external contract manufactur- the Brand's products to third par- Footwear 5% 33% 27% 35% Group uses a specifi c selection ers is key to the Brand, mainly for ties. These manufacturers must process for suppliers and con- the purposes of maintaining the disclose if they work with any tract manufacturers, aimed at world-class quality standards of subcontractor, to which they can Accessories 27% 13% 33% 27% assessing whether the potential its products as well as protecting outsource different production new partners have the technical, Ferragamo's extensive know how processes as long as these are Apparel 2% 33% 40% 25% qualitative, economic and fi nancial developed over the years. The performed directly, in accordance prerequisites and all the documen- retention of external manufactur- with the policy limiting subcon- tation and certifi cation required ing facilities has been traditionally tracting to just one tier. In addition, Handbags and suitcases 8% 19% 19% 54% to start collaborating. The Group guaranteed by ongoing partner- the Group constantly monitors man- relies on a procurement structure ships, the frequent exchange of ufacturers as well as subcontrac- with a high level of technical prep- information and skills between the tors through inspections performed Small leather goods 3% 27% 23% 47% aration and works with historic Group and the contract manufac- by technical and production staff. companies, with which it has es- turers and the highly specialized Jewellery 100% tablished an ongoing collaboration. products and production process- In this context, the Group remains es involved. This integration is sup- deeply rooted to the local commu- ported by an IT system that con- Non-consecutive 1-3 years 4-10 years ≥11 years nity: considering the geographical nects the vast majority of contract distribution by company name of manufacturers with the Group. exclusively suppliers related to This allows both parties to track production, Italian entities account the progress of production and for as much as 97.2% of suppliers’ logistic processes, check whether turnover. As for the procurement raw materials are in the contract of raw materials, the Group buys manufacturers’ stock, and, most approximately 113,000,000 dmq importantly, effectively plan the of leather and nearly 1,161,000 m production stages as well as the of textiles. procurement of raw materials and components. The Salvatore Ferragamo Group works exclusively with highly special- In addition to this, by entering into ized manufacturers that meet the trademark protection agreements, most demanding quality standards. the Salvatore Ferragamo Group
34 Sustainability Report 2017 35 GEOGRAPHICAL BREAKDOWN OF ITALIAN CONTRACT MANUFACTURERS BY SECTOR - 2017
Footwear 36% 36% 3% 8% 8% 3% 6% Concerning Footwear production, limited and numbered quantities. nical skills and creativity of the the Group has always relied on a They are made entirely by hand people that research materials, small prototyping and manufac- using the techniques, materials and create the style and make the Accessories 40% 4% 2% 6% 27% 6% 13% 2% turing unit comprising of materials fi nishing details of the Founder. All Ferragamo product. Staying true cutters, stitchers and fi tters: the Ferragamo's Creations shoes fea- to its tradition and craftsmanship, Manovia division. Established in ture the Brand's historic logo, de- the Group wants to celebrate the Apparel 35% 5% 20% 8% 15% 10% 2% 5% 1967, the Manovia mainly creates signed by Lucio Venna in 1930 and “Ferragamo touch” in the world of samples and prototypes as well as provide the opportunity to explore Leather goods, with infi nite possi- Handbags and suitcases 81% 3% 8% 4% 4% fi ne-tunes the structures (stretch- Salvatore Ferragamo's creative bilities for testing innovative types ers, heels, insoles and soles) for tradition, celebrating his pioneering of leather and materials during the new models. It consists of approxi- vision and know-how. processing stages as well as im- Small leather goods 93% 4% 3% mately 20 people, mostly young, proving the quality and effi ciency who produce 30 to 40 pairs of In November 2017, the Group of development processes. shoes a day. launched a renewed Modelleria Jewellery 67% 33% In addition, the Manovia manu- division for Men's and Women's Together, Manovia and Modelle- factures limited edition models Leather goods: this approximate- ria are fundamental for preserv- Tuscany Campania Emilia Romagna that are part of the Ferragamo's ly 1,200 square meter lab where ing the know-how, legacy of its Veneto Marche Lombardy Creations collection. Launched craftsmanship and research meet, Founder, nowadays upheld by the Umbria Piedmont Other Regions in 2006, the Ferragamo's Crea- designed to pass the know-how skilled artisans of the Salvatore tions line consists of new edi- of master leather craftsmen on Ferragamo Group. tions of original shoes included to young talents. With this invest- in the Historical Archive and the ment, the Company has created Salvatore Ferragamo Museum. a state-of-the-art workshop that The models are manufactured in celebrates the world-class tech-
Among the Salvatore Ferragamo Group's suppliers of raw materials, identifying an accountable person Group core values are corporate processing services and fi nished in the supplier organization. Since ethics and the promotion of the goods. 2014, the Group has conducted principles of loyalty, fairness and over 150 audits and more than 70 respect, both within the organiza- To uphold corporate social respon- follow-ups. In November 2017, it tion and when dealing with busi- sibility within the supply chain, launched a new cycle of audits on ness partners. In accordance with since 2014 the Salvatore Ferrag- the following product categories: the Group's Code of Ethics and to amo Group has been performing Women's Footwear, Men's Foot- embed corporate social responsi- audits on subcontractors. These wear, Leather goods, and Ready- bility into day-to-day operations, audits, based on a multi-year plan To-Wear. Also during 2018, the the Group values collaborating and handled by external special- Salvatore Ferragamo Group will be with the supply chain to achieve ists, seek to ensure the respect committed to continuing this moni- the highest ethical and sustainable for human rights and workers as toring, in order to guarantee re- development standards. To this well as compliance with occupa- sponsible management of its sup- end, the Group decided to adopt tional health, safety and hygiene ply chain in compliance with the its own Supplier Code of Conduct, standards. The audit process in- laws in force. Once again in 2018, setting out the standards of ethics volves a number of stages. First, the Group audits will be performed and conduct that, along with legal, the subcontract manufacturers are on the following product categories: regulatory and procedural provi- required to fi ll in a pre-assessment Women's Footwear, Men's Footwear, sions, must govern the Group's survey; then, an on-site audit is Leather goods, and Ready-to-Wear. business relations with its part- carried out by interviewing both ners. The Code includes rules and employees and the management. standards of conduct concerning Based on the audit fi ndings, the business ethics and integrity, la- Group prepares an improvement bor and human rights, the respect plan with the subcontract manu- for the environment and product facturer to prevent, mitigate, or responsibility. The Supplier Code remedy non-compliance. The plan of Conduct was prepared during requires implementing specifi c ac- 2017 and will be shared in 2018 tions in a given timeframe agreed with all the Salvatore Ferragamo to by the parties, as well as clearly
36 Sustainability Report 2017 37 CUSTOMER FOCUS
Customer satisfaction has always driving engagement. The goal is Besides online training sessions, been the main goal for the Salva- to make every employee aware the Group also offers in-class ses- tore Ferragamo when defi ning its of the Company culture, which is sions to client advisor teams with strategies, from the design of the made up of traditions as well as the goal of strengthening not only product to the service offered at strong and distinctive values. Dur- their sales skills and customer ap- the stores. Respect is the foun- ing 2017, the sales staff of the proach, but also expanding their dation of the relationship with Salvatore Ferragamo Group were knowledge of specifi c topics such customers. This is why the Group provided with over 45,000 hours as Chinese culture and the pro- works on several initiatives to de- of training and, in order to transmit cessing and characteristics of liver a satisfactory and delightful inspiration and the themes under- leather hides. In addition, in 2017 purchase experience that meets pinning the collections, seasonal the Group introduced a new cus- the desires of its customers. training sessions were dedicated tomer relationship management to Men’s and Women’s collections, training format for sales teams: A customer-centric strategy has tailored depending on the informa- this highly interactive program ex- been adopted anticipating the tion relating to the purchases of plains the current interaction strat- needs of existing and potential the different stores. Training ses- egy and includes practical exam- customers in order to create long- sions were offered through the ples and exercises to implement it term value. In 2017, the Group new iLearn digital learning plat- as best as possible. As for mana- doubled down on this approach form, available to both retail and gerial training for store managers, by conducting sales and sectors wholesale staff. The platform, the focus is on the skills required analysis and constantly monitoring accessible from PCs, tablets and to manage the store, upgrading market trends to guide the crea- smartphones, is based on an adap- the skills of employees, sales per- tive teams in the development of tive technology allowing it to work formance coaching and the align- “glocal” collections that can better perfectly on any device. The con- ment with the Company's goals. meet the expectations of Ferraga- tents include a general introduc- In 2017, the Group provided more mo customers. In 2017, the Group tion to the history and legacy of than 13,200 hours of in-class also introduced thematic offerings Salvatore Ferragamo, information training to over 940 employees. consistent with a Buy Now/ Wear on product storytelling and the These sessions are crucial to op- Now approach, which consists in selling ceremony, as well as more timizing customer greeting at the allowing customers to buy an item specifi c and professional contents store and conveying the Brand's they can start wearing right away. related to individual product cate- key values. gories. The Group uses the iLearn The partnership with art has al- platform also to distribute expand- ways been fundamental in Ferrag- ed seasonal training programs, amo's world, and conveying this optimizing them in terms of form to customers further strengthens and usability, as well as contents their connection with the Brand. focusing specifi cally on the key During the 2017 holiday season, selling points and storytelling. At the Group asked the Italian artist the end of each training module, Simone Massoni to design limited- employees are given tests whose edition greetings cards for all Sal- results are tracked by the digital vatore Ferragamo customers. In platform; everyone can download addition, a number of European their certifi cate of attendance and stores held an event featuring digital passport, which includes a Mr. Massoni, who customized the record of all digital courses at- cards on the spot with drawings tended. Between April 2017, requested by the customer. when iLearn was launched, and last December, employees across To ensure customer satisfaction, the 30 countries involved in the the Group strives to make its project completed over 73,700 sales personnel capable of con- courses. The platform is available veying the passion for craftsman- in 9 languages and Russian, Thai ship and quality that character- and Arab will be added during ized Salvatore Ferragamo. There- 2018 to promote it in all the coun- fore, retail staff training is key to tries where the Group operates. keeping the Brand exclusive and
38 Sustainability Report 2017 39 Concerning the initiatives for the results for years now: in 2017, benefi t of customers, the Group 35,253 illicit contents and profi les uses the “Authenticity Tag” sys- were removed from the main so- tem, which protects the consumer cial media platforms and 68,784 purchasing a genuine and Made listings of counterfeit products in Italy Ferragamo product, pre- were identifi ed, blocked and re- venting and limiting counterfeiting. moved from online auction sites. Said innovative traceability pro- In addition, during 2017, 111 illicit ject consists in the implementation websites were tracked and taken and adoption of an NFC (Near down, and 47 uses of “Ferraga- Field Communication) solution to mo” as a keyword on digital Mar- uniquely identify any of the Sal- ketplaces were removed. In 2017, vatore Ferragamo products. NFC the Group constantly monitored is a radio-frequency technology physical marketplaces through based on a chip, which stores the several non-judicial and judicial data and an antenna that sends initiatives, focusing its efforts on signals using radio waves. The China, one of the countries most combination of chip and anten- affected by counterfeiting. Dur- na is the so-called Tag. A device ing the year, 62,397 counterfeit known as reader is able to decode goods were seized in China and the radio signals emitted by the 268,029 worldwide. The Group's RFID (Radio Frequency Identifi ca- commitment against counterfeit- tion) Tag. The NFC Tag is embed- ing has delivered remarkable re- ded into the product at the end of sults thanks to the relentless ef- the manufacturing process and forts to safeguard its brands as activated following a quality con- well as the development of new trol check. It cannot be counter- tools to protect its industrial and feited, as it is based on a unique intellectual property rights. The identifi er certifi ed and assigned Group will double down on these by a manufacturer. It allows to efforts in 2018. encrypt or protect the data on it with a password as well as read it from a distance of only a few centimeters using new generation smartphones. Industry insiders can also exclusively access an ap- plication that reads some of the data stored in the Tag, such as the serial number, the manufactur- er number and the collection the product is part of. The Group has gradually expanded the scope of the project in recent years and the Tag is currently embedded into all Ferragamo leather products, with the exception of a few models. In addition, the project has entered production for ties and scarfs starting from the PS2018 collection.
Over the years, the Salvatore Fer- ragamo Group has implemented a series of offl ine and online anti- counterfeiting measures to pro- tect its customers and the value of its brands. Online monitoring has been delivering remarkable
40 Sustainability Report 2017 41 The Group's strategy is connect- the fi ve European eStores as well Another key focus of Ferragamo's ing the online and offl ine worlds as those in Australia and Mexico digital campaigns in 2017 was the to promote and value the custom- introduced the functionality to re- partnership with young interna- ers’ engagement with Ferragamo. cover abandoned shopping carts. tional infl uencers, which resulted in Integrating digital channels of The launch of the new website in fresh and spontaneous contents communication completes the Europe coincided with the activa- allowing to deliver the Brand's Brand experience of the Salvatore tion of the Stock Enquiry service, message to a younger audience. Ferragamo Group, offering cus- which allows to identify the stores Meanwhile, the FW17 campaign, tomers an hands-on opportunity to where the product selected on the created by the photographer learn more about the Brand. site is in stock. In 2018, European Walter Pfi ffer, was centered on stores will introduce the On Behalf the emotions the product elicits To further strengthen the con- Of service, allowing sales staff to in the customer, emphasizing the nection between customers and buy in store products not currently creativity and elegance of the the Ferragamo world, in 2017 the in stock on behalf of customers Brand's key products while plac- Group updated its eCommerce using an iPad. The improved func- ing special emphasis on shoes platform, launching the US and tionality and services offered by and bags. Bearing witness to the Canadian eStores in May and all the online channel has caused the success of the campaigns under- European ones in November. With number of subscribers to the Fer- taken and the strong commitment the new interface, the website ragamo eCommerce newsletter to which the Group places on digital delivers an innovative and intui- rise by 32.4% in 2017 compared communication, 2017 was marked tive user experience, highlighting to the prior year. by a solid increase in the number the craftsmanship and world- of followers on the main social class quality of Ferragamo prod- The digital evolution of the last few channels. Specifi cally, the number ucts. In 2018, the Group plans to years has signifi cantly changed of followers on the Chinese so- launch the new website in Korea Ferragamo's social strategies. cial media platforms WeChat and and Australia. Since introducing Using social media allows to fur- Weibo increased by a signifi cant the eCommerce platform in 2009, ther engage customers and de- 96.6% and 60.5%, respectively, the Group has been adding more liver a comprehensive experience compared to the previous year. and more functionality to meet the through short Brand stories posted needs of its digital customers: new in a tailored format for each chan- payment methods, customization nel. In 2017, the Group launched options, new product categories, several digital campaigns: High and the introduction of exclusive Tech High Craft marked the start products. Since 2016, US custom- of the creative season of Paul ers can use the Reserve in Store, Andrew, Ferragamo's new crea- Stock Enquiry and Pickup in Store tive director of Women's Collec- services. All this is part of the ini- tions, inspired by cutting-edge tiatives related to the omnichan- technology and the know-how nel project, which aims to steer of Italian master craftsmen. The customers from online channels High Tech Botanical event for the to the physical stores in order to reopening of the historic Canton gather information allowing to cus- Road fl agship store in Hong Kong tomize online offerings and com- was covered on social media us- munication. In addition, in 2017 ing the hashtag #FerragamoHK.
THE SALVATORE FERRAGAMO GROUP ON SOCIAL MEDIA GROWTH IN FOLLOWERS (2016 vs 2017)
INSTAGRAM +50.2% TWITTER +10.2%
FACEBOOK +9.0% TUMBLR +11.6%
PINTEREST +14.2% WECHAT +96.6%
LINKEDIN +22.7% WEIBO +60.5%
42 A SHARED HISTORY
Diversity and equal opportunity Attracting and developing talent Wellbeing of people
44 45 A SHARED HISTORY
Expertise, passion and dedication to work are the characteristics of the people that every day deliver exclusive products and experiences to the Salvatore Ferragamo Group's customers all around the world, based on the heritage and values passed on by the Founder. The Group consid- ers its human capital to be crucial and is committed to maximizing the potential of its people at each step of the production chain, investing in the professional growth of its employees and attracting new talents while complying with occupational health and safety standards. For years now, the Salvatore Ferragamo has been formalizing its care and attention for its people inside the Company Regulation that set out the principles underly- ing the employment relationship as well as the main rights of Ferragamo employees, summarized in the section on employee rules of conduct. The Regulation is available and freely accessible to all employees through the company Intranet.
In December 2017, the Group reaffi rmed its position by publishing the Sustainability Policy, which sets out the principles and values governing the social protection of its people. This document consolidates the Group's commitment to fully respecting human rights and the rights of its employ- ees as recognized by national and international conventions and declara- tions as part of its operations, as well as rejecting any form of child labor, forced labor and discrimination based on personal characteristics irrele- vant to a person’s work. In addition, the Group wants to promote the well- being of its employees and is committed to initiatives aiming to improve their work-life balance.
As of 31 December 2017, the Group had 4,183 employees, up 3.6% from the previous year. There were also other 340 individuals working at the Group in various capacities. The age range between 30 and 50 is that with the highest number of employees (62.1% of the total workforce).
THE SALVATORE FERRAGAMO GROUP IN 2017
4,183 1,278 2,905 EMPLOYEES WORLDWIDE HEADQUARTER EMPLOYEES RETAIL EMPLOYEES
1,163 3,913 ≈ 70% EMPLOYEES UNDER 30 EMPLOYEES ON PERMANENT WOMEN EMPLOYEES CONTRACTS
46 Sustainability Report 2017 47 DIVERSITY AND EQUAL OPPORTUNITY
The Salvatore Ferragamo Group Women play a key role in the Sal- employees in depth and therefore manages and develops its human vatore Ferragamo Group: they ac- ensure gender equality in remuner- capital by integrating and respect- count for 68.3% of its employees ation policies. ing diversity. Employee relation- and hold more than 65.0% of sen- ships are based on the principles ior management positions. In addi- Concerning the employees be- of fairness, integrity and respect, tion, women make up a signifi cant longing to protected categories preventing any discrimination based 30.8% of the Parent Company (74 employees at 31 December on age, race, ethnicity, nationality, Board of Directors, in accordance 2017), the Group complies with political views, trade union mem- with applicable laws. applicable laws in the countries in bership, religious beliefs, sexual which it operates. orientation, gender identity, physi- The Group adopts remuneration cal and mental disabilities and any policies that recognize the per- Finally, as for industrial relations, other personal characteristics, in sonal contribution of each em- 35.9% of the Group's employees line with the Group Code of Ethics. ployee according to the principles are covered by collective bargain- Special emphasis is placed also on of gender equality and merit. For ing agreements, as required by ap- providing equal opportunity, en- several years now, the Group has plicable laws and regulations in the suring the same work conditions been implementing a remuneration countries in which it operates. for male and female employees system differentiated for employ- and promoting initiatives to help ee category, including economic balance family and professional incentives contingent on individual life through different types of em- and company performance goals ployment agreements. aimed at promoting a sense of be- longing and teamwork. Over the As of 31 December 2017, among next few years, the Group will up- the employees on open-ended con- date the existing system through tracts, 51 men and 231 women the Job Grading project, which will had chosen to work part-time. allow to analyze the work of all
EMPLOYEES OF THE SALVATORE FERRAGAMO GROUP - 31 DECEMBER 2017
NO. OF PEOPLE MEN WOMEN TOT
PARENT COMPANY 402 549 951
EUROPE 138 255 393
NORTH AMERICA 309 330 639
CENTRAL AND SOUTH AMERICA 101 100 201
ASIA PACIFIC 295 1,271 1,566
JAPAN 82 351 433
TOTAL 1,327 2,856 4,183
48 Sustainability Report 2017 49 ATTRACTING AND DEVELOPING TALENT
Attracting new talents is key to anniversary of Salvatore Ferraga- Group, as it is a precondition for the relentless innovation that char- mo's return to Italy, the Group held individual growth and the devel- acterizes the Group as well as the an Induction session to convey the opment of the competencies that Brand's success. Confi rming this Archive's importance and moderni- make up the heritage at the core commitment, in 2017 1,637 em- ty to Creative and Product teams. of its success. Specifi cally, in 2017 ployees joined the Salvatore Fer- The event “Our fi rst 90 years. An the Group provided approximately ragamo Group, of whom around archive to be touched” allowed 54,550 hours of training to its em- 54.7% were under 30 and 68.7% participants to view and touch im- ployees, nearly 17% at its head- women, thus recording a staff ages, products, videos and mate- quarters and more than 83% in turnover of 39.1%. These turno- rials of the prestigious Historical the retail segment. Maximizing the ver rates account for the industry Archive, entering into contact with potential of its employees is just the Group operates in and mostly the Founder's modern creativity as important to the Group, which refer to retail staff. that has always been the hallmark in 2017 continued providing train- Offering a stable and long-lasting of Ferragamo's collections. ing and development opportuni- employment relationship as nec- ties to the talents identifi ed at essary to foster the Company's To select and attract top talents, the corporate level in the previ- growth, as well as an important the Parent Company has partner- ous year and launched a project motivational factor. The high pro- ships with several Italian Universi- to design a global Talent Manage- portion of employees on perma- ties, Business Schools and Design ment system. As part of its own nent contracts, accounting for Academies, organizing presenta- Ferragamo Excellence model, the 93.5% of the total in 2017, is evi- tions, career days and fi eld pro- Parent Company identifi es nine dence of the Group's commitment jects. During 2017, 11 Employer essential competencies divided in this sense. During the year, the Branding sessions were held dur- into Core and Managerial Compe- Group improved the process dedi- ing which Salvatore Ferragamo tencies, to be enhanced in each cated to the professional growth met 869 students, 16 of whom employee. Core Competencies are of employees with the Internal started working with the Compa- key for all employees and enable Job Posting project: this allows to ny. In 2018, the Company plans them to achieve high levels of constantly update open positions, to strengthen its partnership with performance and quality as well informing employees in a timely leading Design Schools to offer an as promptly address issues and manner. The Group will continue advanced training program to problems as they arise by working developing the project in the up- young creative talents in the fi eld in teams and exploring new ideas coming years to promote a closer of design and accessories. and solutions. The Group has iden- integration between all the areas The Group pays special attention tifi ed additional competencies for in which the Salvatore Ferragamo to the families of its employees: middle and senior managers fo- Group operates. in 2017, it launched the Store cusing on knowledge that is crucial Internship for Employees’ Sons in order to create value and im- In Italy, the Salvatore Ferragamo and Daughters program, offer- prove competitiveness over time, has an Induction program for all ing the children of its employees inspiring enthusiasm and a passion new recruits aimed at transmitting the opportunity to work at the for work and excellence in other the Brand’s values right from the Brand's stores and live a work ex- people. start and creating a strong sense perience in the Ferragamo world. of belonging. The three-day Clas- In 2018, the program will be ex- Over the next few years, the sic Induction course consists in a tended also to the siblings of the Group will gradually expand the training session to introduce new Group's employees. In addition, Talent Management system to all hires to the Brand, the history of for a few years now Salvatore employees, regardless of the ge- the Founder and the Group's val- Ferragamo has been the offi cial ography in which they operate, ues, as well as guided tours of the partner of SDA Bocconi School of maximizing the potential of key Museum and the Historical Archive Management's Master in Fashion, resources across the entire Salva- in partnership with the Ferragamo Experience & Design Management tore Ferragamo Group. Foundation and the Salvatore Fer- (MAFED), an international pro- ragamo Museum. The Customized gram for those who want a mana- Induction, which is reserved to ex- gerial career in the fashion, luxury ecutives and managers, is instead and design industries. tailored to the role that the incom- ing manager is required to fi ll. In Training its employees is a key pri- addition, to celebrate the 90th ority for the Salvatore Ferragamo
50 Sustainability Report 2017 51 In 2017 the Development Assess- Salvatore Ferragamo the most. trees they planted. All volunteers ment program continued, which Therefore, the Group offered also had the opportunity to put a involved two different types of the 2017 top sales assistants of sign on each tree they planted, workers: High Potential staff and China, Japan and Mexico the op- dedicating it to their team or leav- Senior Leaders. For both groups portunity to participate in a train- ing a short message to thank their training programs were developed ing program aimed at conveying colleagues and strengthen the in order to reinforce specifi c com- the values of the “Made in Italy” sense of being part of a team. In petencies such as emotional intel- tradition through cultural and ed- 2017, the Group also held a team- ligence and the development of ucational initiatives. Specifi cally, building event designed specifi cal- collaborators. Specifi cally, the ses- the top sales assistants from the ly for the members of the Green sions for High-Potential individuals Chinese market received a tour of Team, the cross-functional group focused on the ability to make de- the Uffi zi Gallery and participated that designs and implements sus- cisions and deliver impactful com- in a cooking class dedicated to tainability projects. As part of the munication through individual and traditional Italian cuisine. Green Building event, the Team group coaching. Meanwhile, the participated in training sessions training programs for Senior Lead- To facilitate the development of on the development of the skills ers concerned coaching, leader- their staff, the Group implemented, required to improve their integra- ship, or topics relevant to each in continuity with previous years, tion, as well as brainstorming ses- one's area of expertise. some performance assessment sions in which they discussed and programs, including the Perfor- mapped the sustainability goals The Group also enhances retail mance Appraisal System, in or- for the next few years. employees and the store staff der to identify the strengths and who constantly exceed their sales any areas for improvement of targets by providing an exception- each employee. The system is al service and forging unique rela- conceived not only as a monetary tionships with customers. In this incentive system but also as an sense, in 2017 the Group designed instrument for development: the and launched a specifi c retail staff performance appraisal is connect- development program establishing ed to a position profi le and the structured career paths and for- specifi c technical skills required. malizing the opportunities that the The Salvatore Ferragamo Group Group offers to the employees of regularly reviews the performance its boutiques. These career paths of its employees: in 2017, 100% of clearly and objectively defi ne the Parent Company's managers the opportunities for professional received a performance review, growth within the boutique, moving and so did 81.3% of their peers in through positions with increasing Central and South America, 100% responsibilities and different levels of managers in Europe, 94.1% of of management skills, including the managers in Japan, and 95.9% of possibility of eventually manag- managers in North America. ing a store or the relevant team. The Company has also been pro- A necessary precondition for moting mobility within the Retail the company's development and world by offering opportunities growth is teamwork, and the vari- to hold senior positions in differ- ous organizations of the Ferraga- ent stores in the same country or mo world do their best to allow the abroad, focusing on internal rather development of soft skills such as than external recruiting for vacant trusting other people and having positions. respect for roles. As part of one of these initiatives, Italian employ- Recognizing the top sales per- ees worked together to create formers is key to constantly im- Parco delle Idee (Park of Ideas), proving the in-store customer ex- an urban forest inside the Scien- perience and represents a way to tifi c Hub of Sesto Fiorentino. The show gratitude to the individuals project allowed employees to help that have been able to convey plant 230 native trees, participat- the craftsmanship and passion of ing in brief training sessions on the
52 Sustainability Report 2017 53 WELLBEING OF PEOPLE
The Salvatore Ferragamo Group The wellbeing of employees, col- creating new fi xtures and fi ttings considers the wellbeing of its em- laborators, suppliers, and consult- as well as enhancing spaces and ployees and the internal environ- ants has always been a core part their design. ment to be key drivers of its suc- of the Group's DNA. Over the cess: therefore, it implements sev- years, the Company has made sig- The communication to all the eral company welfare initiatives to nifi cant investments in safeguard- Group’s collaborators of activities, ensure the wellbeing of its workers. ing the wellbeing of its employ- shared values, projects, strate- ees, developing an Occupational gic guidelines, corporate policies, Since 2014, a Flexible Benefi t Health and Safety Management goals achieved and future ambi- Plan has been in force in Italy, the System to reduce or minimize the tions, is considered of primary im- purpose of which is to support risks employees or other parties portance to consolidate a sense of workers and their families in so- may be exposed to for different belonging. cial and cultural activities, in their reasons as part of the Company's development and in school fees operations. In late 2017, this sys- In February 2017, following the and costs for their children. The tem received the coveted OH- Investor Day and in order to pro- plan consists of the possibility to SAS 18001 certifi cation, which mote a relationship with employ- replace or complement part of the is valid for all the Company's Ital- ees based on the principles of variable pay with benefi ts in the ian offi ces and stores. This result sharing and transparency, the form of services, to address per- strengthens the effectiveness of Group organized a specifi c ses- sonal and family needs. Specifi cal- the existing administrative liability sion for the employees of the Os- ly, employees can select their own system pursuant to the 231/2001 mannoro headquarter, during which type of benefi t from a vast selec- Model, ensuring the principles of the CEO recalled the core values tion, including fi ve areas: educa- the relevant policy are properly that have characterized the Brand tion, gym and other sports, culture implemented in all work environ- since 1927 as well as stressed the and leisure, travel and supplemen- ments. In addition, this regulation importance of working together to tary pensions. In 2017, the Group has an international validity, which achieve the goals expressed in the broadened the range of benefi ts will allow to extend the certifi ca- development plan for the Group. it offers by introducing additional tion to the sales offi ces located services for the families of its em- abroad over the next few years, In addition, the internal circulation ployees, such as care for depend- thus consolidating the Group's of the Company magazine Inter- ents and baby-sitting services. reputation. nos allows to keep all functions worldwide up to date with corpo- The Salvatore Ferragamo has The continuous commitment is rate news, thus fostering engage- signed a series of special offers based on the participation, in- ment and stimulating the interest through conventions with compa- volvement in and dissemination of of employees in activities leading nies operating in other sectors, the culture of safety at all levels them to learn more about the such as for example health and of the Company, in order to guar- Group. In May 2017, the maga- wellbeing, banks, insurance, tour- antee for each worker a good level zine dedicated an entire issue to ism and sport. In this context, the of awareness of their role and re- corporate social responsibility in collaboration with Orto del Borro sponsibilities. The Group, through order to raise awareness about continues. The agreement allows involvement, training and prepa- the Group's initiatives and goals employees of the Salvatore Fer- ration activities, aims at continu- related to sustainability. ragamo offi ces in Florence to ous improvement in performance buy at a discounted price boxes in terms of workers’ health and As evidence of its commitment to with certifi ed organic fruit and safety, with particular attention to embed sustainability into its inter- vegetables. preventing accidents and workre- nal communication platforms, the lated illnesses. Group has set up a corporate re- The benefi ts and advantages for sponsibility section on the Compa- full-time employees of the Group's The attention to Ferragamo peo- ny Intranet, as well as a dedicated companies vary according to local ple is refl ected also in the crea- e-mail address through which em- laws and practices: they include, tion of workspaces that are both ployees can directly engage with but are not limited to, health and functional and pleasant. Since sustainability topics and submit life insurance policies, discounts at 2016, the Ferragamo Foundation sustainability-related ideas and the Brand's stores, pension con- has been working together with projects to the Green Team. tributions, and reimbursements of the Company on the renovation, company canteen services or ben- decoration and embellishment of efi ts in lieu thereof. workspaces by researching and
54 Sustainability Report 2017 55 CULTURE AND PARTICIPATION
Link with the community and the local territory Salvatore Ferragamo Museum Ferragamo Foundation
56 57 CULTURE AND PARTICIPATION
Salvatore Ferragamo was one of the fi rst to realize that fashion, art and culture are intimately connected. Since the beginning of his career in America, the Founder of the Brand always looked for inspiration, ideas and collaborations with the leading artists of the day. Over the years, the Group has acted on its Founder's insight, dedicating considerable attention and resources to cultural initiatives in order to promote art in all its forms.
In 2014, after redefi ning the Charity Policy adopted by all Group sub- sidaries, the Group decided to make several donations to charity initia- tives promoting Italy's culture across the world as well as the health of women and children. The purpose of this Policy is to provide a reference framework, for all the Group subsidiaries, to be followed in defi ning dona- tions, gifts and any participation in charitable associations, foundations and non-profi t organizations. This process therefore facilitates stronger governance and a new approval process, in order to coordinate chari- table actions worldwide more effectively. Indeed, in 2017, the Salvatore Ferragamo Group supported communities, charitable bodies and non-prof- it organizations which work for the causes identifi ed by the Charity Policy, making around 80% of its donations for Italian culture around the world.
Since 2017, the Group has doubled down on its commitment to culture and the local community by formalizing the intention to share Italian culture across the world in its Sustainability Policy. The Group is committed to promoting Made in Italy products by enhancing and developing traditional craftsmanship as well as sponsoring initiatives that celebrate art, cinema and music, fundamental values in the Brand's history.
THE SALVATORE FERRAGAMO GROUP IN 2017
more than 9,300 more than 37,000 Art Bonus Award MEALS DONATED TO THE BANCO T-SHIRTS MADE FOR FOR CONTRIBUTING TO THE ALIMENTARE IN ITALY IN 2017 CORRI LA VITA 2017 RESTORATION OF THE FOUNTAIN OF NEPTUNE more than 23,500 ≈ 4,900 more than 351,100 PIECES AND MODELS CATALOGED CHILDREN IN WORKSHOPS WITH VISITORS TO THE FERRAGAMO IN 2017 THE FERRAGAMO FOUNDATION MUSEUM SINCE 2006 SINCE 2013
58 LINK WITH THE COMMUNITY AND THE LOCAL TERRITORY
In line with the commitment which projects including the renovation The Company's support to culture for many years now has closely of the Casa and Torre Campatelli, is also manifested in the historic linked the Company with Florence, a mid-12th century architectural relationship between Salvatore the project to restore the Fountain masterpiece owned by Fondo Am- Ferragamo and the world of cin- of Neptune in Piazza della Signo- biente Italiano (FAI) and located ema. In 2017, the Group worked ria continues, which will allow the in San Gimignano, reopened to together with the 74th Venice In- fountain to return to its original the public in 2016. In memory of ternational Film Festival, the most splendor thanks to the donation of Marchesa Fiamma di San Giuliano appreciated Italian fi lm fest: Fer- 1.5 million euro in the period 2016- Ferragamo, who was the fi rst re- ragamo Parfums sponsored the 2018 from the Salvatore Ferrag- gional president of FAI Tuscany in Kineo Award “Diamonds at Cine- amo. The Fountain of Neptune 1987, the tower was dedicated to ma”, which recognizes the genuine was made by the sculptor Barto- her and called Torre Fiamma. Over beauty, artistic value and elegance lomeo Ammannati under commis- the years, charitable contributions of international cinema and was sion from Cosimo I de’ Medici and from the Salvatore Ferragamo received by the Oscar-winning ac- the subject alludes to the maritime have allowed to reopen 8 rooms tress Susan Sarandon. dominance of Florence during the of the Uffi zi Gallery, containing ap- Renaissance. It was the fi rst pub- proximately fi fty major works of The Group supports Italian culture lic fountain in the city and today art from 15th century, as well as across the world through addition- is one of its best-known symbols. to renovate Florence's Piazza and al projects and donations in all the The project involves restoring the Ponte di Santa Trinità and restore areas in which it operates. In 2017, Fountain's marble and bronze el- Leonardo's Saint Anne painting, the Salvatore Ferragamo Group ements as well as renovating the currently on display at the Louvre supported Hong Kong's Dante water supply system. The Com- Museum in Paris. Alighieri Society and the Italian pany's commitment to protecting Film Festival in Tokyo as well as and restoring the Fountain, which Among other entities in Florence, sponsored events associated with is part of Florence's historical her- the Company has been support- the Italian Chamber of Commerce itage, was recognized also at the ing also the historic Istituto de- in Hong Kong and Mexico. 2017 Corporate Art Awards pro- gli Innocenti, which is a symbol moted by the Italian Ministry for of children's care and houses the Cultural Heritage, where Salvatore UNICEF - Innocenti Research Cen- Ferragamo SpA received the Art tre. The Company has contributed Bonus Award. The contest drew to the restructuring of the proper- 80 businesses and 20 internation- ties used as care homes for moth- al institutions from 18 countries ers and children in distress. The across the world. cooperation with the Institute in- cludes several support projects in In 2017, the Company also helped collaboration with the Ferragamo preserve Florence's cultural herit- Foundation. During 2017, the Com- age by participating in the British pany donated unbranded textiles Institute of Florence's fundraising to the Institute's tailoring shop, and campaign for the renovation of the mothers and volunteers used the Harold Acton Library, located them to create a line of shopping in Lungarno Guicciardini. The do- bags: the proceeds of the sales nation was made as part of the went to support current and ex- celebration of the upcoming 100- pecting mothers at the residential year anniversary of the founda- care homes. In addition, the Foun- tion and announced at an event dation invited a group of third-year that featured the head of the Brit- Fashion Technology students from ish Institute as well as the new UK Polimoda to participate in a project Ambassador to Italy, who is also dedicated to rediscovering and re- the Institute's Honorary President. producing the original clothes worn by the Istituto degli Innocenti's wet The Florence-based Brand has nurses in the late 19th century, so always been actively supporting as to display them in the Innocenti countless cultural initiatives and Museum.
60 Sustainability Report 2017 61 In 2017, the Salvatore Ferragamo 21 Onlus. As in previous years, in source of livelihood destroyed by was once again one of the main 2017 the Company supported the the earthquakes that struck the sponsors of the charity sports participation of 15 employee-ath- Mexican region of Chiapas in Sep- event Corri la Vita, which is held letes in the charity sports event tember 2017. every September in Florence. Pro- Rovigo Half Marathon organized ceeds of Corri la Vita go to non- by Onlus Fàedèsfa, an association To combine the attention to the profi t projects for national health that helps children with rare ge- environment with its charitable facilities specializing in the treat- netic disorder. Onlus Fàedèsfa is initiatives, in December 2017 Fer- ment of breast cancer through one of the several entities that the ragamo Retail Hong Kong held up- psychological support, physical Salvatore Ferragamo has hosted cycling workshops for its employ- and social rehabilitation, preven- in its offi ces for fundraising ini- ees. Using watercolor paint made tion, training and palliative care. tiatives: in 2017, these included, from food by-products, the em- To give visibility to the event, the among others, AISM (the Italian ployees decorated canvas shop- Salvatore Ferragamo printed over Multiple Sclerosis Society), AIRC ping bags, fi lled them with food 37,000 t-shirts for the partici- (the Italian Association for Cancer and other consumer staples, and pants, created a special window Research) and ATT (the Tuscany donated them to the Hong Kong display at the store in Florence, Cancer Association). Sheng Kung Hui Western District installed mini-panels at all the Elderly Community Centre. Brand's stores across Italy and of- To help the needy while also reduc- fered free entry to the Salvatore ing waste, starting from 2014 the Moreover, in accordance with the Ferragamo Museum during the Salvatore Ferragamo has chosen Group's Charity Policy, the Fer- day, recording more than 1,700 to donate through Associazione ragamo Fashion Trading Shanghai visitors. In addition, to support the Banco Alimentare ONLUS the ex- supported the China Children and LILT, Lega Italiana per la Lotta cess food from the company caf- Teenagers’ Fund, which has been contro i Tumori, which helps or- eteria to “CEIS - Centro di Solidari- caring for, fostering and educating ganize Corri la Vita, the Group do- età”, in Florence, where a canteen young children since 1981. Addi- nated 10% of the revenues gen- serves both lunch and dinner. The tional donations went to local en- erated by the Women's and Men's Banco Alimentare ONLUS Asso- tities such as Taiwan's Harmony stores in Milan on a day in March ciation (Italy's Food Bank), which Home Association, The Pearl S. 2017 to the Association. collects food and checks its integ- Buck Foundation, the Noordhoff rity, received approximately 2,800 Craniofacial Foundation, Girls Sup- In line with its Charity Policy to fi rst courses, more than 2,700 porting Girls and the American - Ital- ensure the health of women and second courses, over 3,800 side ian Cancer Foundation. children, during the year the Sal- dishes and approximately 300 kg vatore Ferragamo worked togeth- of bread from the Company. er on multiple occasions with Tri- somia 21 Onlus, the non-profi t as- The commitment to social respon- sociation born to improve the so- sibility is not limited to Italy, but ex- cial and personal skills of children tends also to all the areas in which with Down syndrome. The Group the Salvatore Ferragamo Group donated some furniture disposed operates. In Mexico, to celebrate of during the restructuring of the the 20-year anniversary of the Osmannoro offi ces to the Pic Eo Brand's arrival in the country, the workshop, in which children make Group entered into a special part- scarfs and other textile products. nership with Fundación Origen, In addition, the Association could which supports the emancipation count on the support offered by of Mexican women: Ferragamo the Salvatore Ferragamo Group's Mexico donated most of the pro- employees through a fundraising ceeds from the sale of 100 limit- initiative. Finally, the savings on the ed-edition Sofi a bags with a silver printing costs for the 2017 Christ- decoration made by a Mexican mas greeting cards went to cog- craftsman to 5 women, allowing nitive enhancement projects for them to rebuild their own tailoring the children organized by Trisomia workshop, which were their only
62 Sustainability Report 2017 63 SALVATORE FERRAGAMO MUSEUM
THE SALVATORE FERRAGAMO MUSEUM IN FIGURES
266 more than 40,500 EXHIBITIONS AND PROJECTS MADE VISITORS TO THE FERRAGAMO MUSEUM IN 2017
≈ 220 ≈ 230 CONTACTS WITH SCHOOLS AND UNIVERSITIES CONTACTS WITH MUSEUMS AND INSTITUTIONS
The clearest testimony of the that has become one of Florence's participate in the 16th edition of commitment to culture is repre- most important cultural events and the Settimana della Cultura di Im- sented by the establishment of celebrated its 9th edition in 2017. presa, during which special guided the Salvatore Ferragamo Museum, The actors Louis Garrel and Sve- visits to the exhibition “1927 Il Ri- which was created in 1995 at the va Alviti received the “Essence of torno in Italia” and two workshops Group’s historic headquarters at Talent” Award sponsored by Fer- on sustainability were organized; the behest of Wanda Miletti Fer- ragamo Parfums, which was the • partnership with the Strings City ragamo and her six children. The event's main sponsor. The attend- festival, a music marathon featur- activities of the Museum do not ees at the festival were offered ing 80 string music events for a to- only include temporary exhibitions discounted tickets to and special tal of 50 hours across more than and workshops for children, the tours of the Salvatore Ferragamo 50 locations. For the fi rst time, latter in collaboration with the Fer- Museum; the Salvatore Ferragamo Museum ragamo Foundation, but also ex- • renewed partnership with the hosted three nights during which tend well beyond the site of the River to River Florence Indian Film the master violinist Luigi Papagni Museum itself. In particular, the Festival, which celebrated its 17th played classics from 1920s Italy Salvatore Ferragamo Museum in- edition in December 2017 at Tea- and America, same period fea- tends to represent the Group by tro della Compagnia. Sponsored tured in the exhibition at the Mu- exhibiting its most important sig- by the Indian Embassy, River to seum; nifi cant items, to pass on culture River is the world's fi rst festival • partnership with SACI College within the Group in compliance entirely dedicated to Indian cinema of Art & Design Florence through with the Brand’s identity, to create and movies about India; the “Fashioning Spaces” project, a sense of belonging to the Com- • partnership with the 10th edi- a fashion design program that in- pany, to shape and input business tion of the Schermo dell’Arte Film volved the Museum as well as the culture into the local territory and Festival. This one-of-a-kind pro- Ferragamo Foundation. Fashion community where the Group op- ject in Italy dedicated to the mul- design and interior design students erates and fi nally to interact with tiple interactions between cinema worked on proposals for a pop-up other institutions. In 2017, the Mu- and contemporary art featured 26 installation as part of the restyling seum worked together with insti- avant-garde fi lms and documenta- of a fl agship Ferragamo store. tutions, schools and universities ries, including several Italian and 3 across Italy. Here below are the world premieres, as well as an ex- main initiatives in this area: hibition featuring works of more • renewed partnership with France than 20 international artists; Odeon, the French fi lm festival • partnership with Museimpresa to
64 65 In 2017, the Group continued work- Albert Museum, the Musée des 29,600 visitors from May to De- ing together with leading Italian cul- Arts Décoratifs in Paris, and the cember 2017. During the exhibi- tural institutions such as Museim- Kyoto Costume Institute to pre- tion, the Ferragamo Foundation, presa, the Italian association of sent an iconic garment using a in collaboration with the Salvatore company museums and archives, ground-breaking digital interface Ferragamo Museum, realized an the Portal of the 20th Century that allows for a 360-degree im- education program which includes Fashion Archives at State Archive mersive experience. Among the guided visits and activities differ- in Rome and Europeana Fash- models ideated by Salvatore Fer- entiated between primary and mid- ion, the European digital library to ragamo, the selected item was the dle school, following the specifi c which Salvatore Ferragamo sub- famous stiletto heel created in the didactic route entitled “1927-2017 mitted more than 1,000 records 1950s for the movie star Marylin Il Ritorno in Italia”. The Municipal- of historic footwear. Moreover, the Monroe. ity of Florence made the exhibi- Salvatore Ferragamo Museum is tion part of the “Chiavi della Cit- part of ICOM (International Coun- Ended on 7 April 2017, the “Between tà” project, started in September cil of Museums), the most impor- Art and Fashion” exhibition explored 2017 which took young students tant and prestigious international the relationship between these on a journey through the chang- organization for museums and mu- two parallel worlds from the per- es that swept Florence in the seum professionals. spective of Salvatore Ferragamo 19th and 20th century. The initia- who, fascinated with the avant- tive featured a visit to Museo del In 2017, the Group continued the garde movements of the 20th Novecento and the Salvatore Fer- partnership started in the previ- century, drew inspiration from the ragamo Museum, and it was also ous year with Domus Academy, a art world by working together with selected for FAMU, the National Design academy in Milan. The stu- several artists of his time. The ex- Day of Families at the Museum. dents of the Master's Program in hibition featured works and testi- Luxury Brand Management were monies spanning major Italian art invited to participate in the “Art movements from Pre-Raphaelite Foundation: The Power of Herit- Art to Futurism, drawing more than age” challenge: after analyzing 40,700 visitors since its opening in the positioning, history, corporate May 2016. The Ferragamo Foun- identity and mission of both the dation and the Museum created Salvatore Ferragamo Museum and and developed an educational pro- the Ferragamo Foundation, the ject for children, the “Roleplaying students submitted feasible and games between Art and Fashion” innovative proposals to maintain program, which involved guided the Brand's positioning while deliv- tours of the exhibition and other ering new experiences to visitors creative activities for kids. through contemporary and smart communication initiatives. The exhibition “1927 The Return to Italy” opened on 19 May 2017 On 8 June 2017, the digital platform to celebrate the 90-year anniver- Google Arts&Culture launched “We sary of Salvatore Ferragamo's Wear Culture”, a project that cel- return to his home country after ebrates three thousand years of 12 years in the United States. For fashion history and is an invaluable the occasion, the Salvatore Fer- tool for anyone interested in un- ragamo Museum held an exhibition derstanding where today's fash- on Italy in the 1920s, a period rife ion trends come from. More than with returns, the return to order, to 180 cultural and fashion institu- craft trade and to the great Ital- tions, schools, archives and other ian tradition. The thread running organizations across the globe through the exhibition curated by participated in the project, bring- Carlo Sisi is Salvatore Ferraga- ing a massive digital archive to mo's transatlantic crossing, taken life. The Salvatore Ferragamo Mu- as a metaphor of his mental jour- seum was selected alongside four ney through the visual culture of other world-class institutions such 1920s Italy by putting the topics as New York's Metropolitan Art and works that infl uenced him on Museum, London's Victoria and display. The exhibition had over
66 Sustainability Report 2017 67 FERRAGAMO FOUNDATION
THE FERRAGAMO FOUNDATION IN FIGURES
more than 1,700 ≈ 15,000 HIGH SCHOOL STUDENTS PARTICIPATING MODELS OF SHOES PRESERVED IN THE IN CONFERENCES (AS FROM 2013) ARCHIVE ≈ 550 ≈ 900 ADULTS PARTICIPATING IN CHILDREN PARTICIPATING IN WORKSHOPS IN 2017 WORKSHOPS IN 2017
The Ferragamo Family set up 4th edition, which supports the and functionality, the cataloging the Ferragamo Foundation on 15 new generations of artisans and system used by the Historical Ar- March 2013 to promote crafts- increases their visibility online and chive was taken as a case history manship and Made in Italy prod- on social media, for a productive for the project of the Portal of the ucts as well as invest in the educa- combination of “knowing how to 20th Century Fashion Archives as tion and training of those seeking do” and “knowing how to commu- well as for the Europeana Fashion a career in the world of fashion, nicate”. In May 2017, a selection portal. design, and the most elegant and of 10 under 35 artisans had the artistic forms of Italian craft, in chance to exhibit for free their In addition, in January 2017 the keeping with the values and style products in a dedicated area in Foundation launched a project to of Salvatore Ferragamo's works. Giardino Corsini in Florence, at manage, dispose of and digitize To achieve these goals, the Foun- the 23rd edition of "Artigianato e press clippings dedicated to Sal- dation intends to protect and Palazzo", an event which for over vatore Ferragamo and the Group. promote Ferragamo's Historical 20 years has been promoting the During the year, it digitized more Archive, sponsor and host fash- value and quality of handmade than 1,800 pages and cataloged ion training courses, and provide production in Italy and worldwide. nearly 800 stories from Italian scholarships and grants, in part- and international publications. The nership with the Salvatore Fer- The Ferragamo Foundation is at Foundation has been regularly do- ragamo Museum. The Foundation the forefront in managing and nating some marked for disposal regularly holds conferences and protecting its Archive, which is publications considered to be of events open to the residents of made up of heterogeneous funds particular interest to the Library Florence and the general public, that are implemented each day. of Polimoda Institute in Florence. learning workshops for children The Archive allows to protect and various kinds of initiatives for and promote the historical-artistic the young as the main benefi ciar- heritage of the Salvatore Fer- ies of an institution that considers ragamo Group, which represents handing down technical expertise the memory of an entire industrial and educating people to experi- and social culture. It is a constant ment one of its main goals. source for inspiration that is con- sistent with the Brand identity, As in previous years, the Founda- as it preserves its history and in- tion collaborated in the competi- fl uences the communication and tion “Blogs & Crafts: young arti- work of the designers and mar- sans and the web”, promoted by keters developing new products. "Artigianato e Palazzo" now in its As a testament to its effi ciency
68 In 2017, following the success of In November 2017, the Foundation the Seminar for Fashion Company presented its educational work- Archivers held by the Foundation, shops for children at the Dream- the A.M. Enriques Agnoletti School ers event in Turin, allowing kids to of Archival Studies, Paleography create the shoe of the future by and Diplomacy of Florence's Na- working with wooden shapes and tional Archive added the Founda- sustainable colors and materials. tion to the group of institutions The event also featured a work- authorized to host an evening ar- shop named “Tiptoeing towards chival inventorying workshop in the future” dedicated to the rela- the 2016-2017 period. The partici- tionship between the past and the pants in the seminar hosted by the future of independent fashion. Ferragamo Foundation had the opportunity to work on organizing The Foundation and the Salvatore and analytically cataloging albums Ferragamo Museum participated from the 19th and 20th century, in the three-day festival “Firenze containing samples of designs and dei Bambini: la città come casa”, decorative patterns used by the which featured special events Salvatore Ferragamo Group over promoted by the Municipality of the years as inspiration to produce Florence and was organized by its ties. MUS.E. Children had the opportu- nity to explore 10 thematic cities It also launched a project named in 10 locations across Florence of- “Memory Archive” to gather and fering workshops, music, art, op- keep testimonies of the Company portunities for meeting new peo- and the people who worked at it. ple and spaces for creating. To this end, audio and video inter- views were conducted with mem- As part of its efforts to support bers of the Ferragamo Family as Florence's schools, the Foundation well as notable employees of the also participated in the Italian min- Group. isterial Dual Training program by offering high-school students an Among other initiatives, the Fer- inside view of how a corporate ar- ragamo Foundation hosts “Work- chive is managed and the chance shops of ideas and creativity” of contributing to its implementa- for children, teenagers and adults tion. In 2017, the Foundation wel- dedicated to artisan skills, fashion, comed students from two high and design. To celebrate holidays schools in Florence: the class from or events concerning children, the Liceo Classico Michelangiolo cata- Museum organizes learning activi- loged the volumes of the Library ties or guided tours for the whole as well as prepared the gallery family to make adults and children text and contents for audio guides work together. In addition, the of the Exhibition at the Salvatore Foundation develops the project Ferragamo Museum, while the one “Musei da favola”, launched in from Liceo Scentifi co Niccolò Ro- 2013 offering tours in Italian and dolico archived the photographic English aimed at families to discover materials of the catalogs and ad- main cultural landmarks in Florence. vertising campaigns from the year 2000 to the present. In 2017, the Foundation hosted an event for the children of Salvatore Ferragamo employees, allowing them to visit their parents’ work- place while learning about the val- ues that characterize the history of the Brand.
70 Sustainability Report 2017 71 PROTECTING THE ENVIRONMENT
Responsible consumption Emissions monitoring Green certifi cations and initiatives
72 73 PROTECTING THE ENVIRONMENT
The Salvatore Ferragamo Group has always put environmental sustain- ability at the heart of its development policies. To protect the environ- ment, the Group aims to positively contribute to safeguarding it through strategies and initiatives aimed at reducing the environmental impact of its operations.
In 2017, the Group adopted a Sustainability Policy including a special sec- tion that formalizes its commitment to protecting the environment and ecosystems. Specifi cally, the Salvatore Ferragamo Group commits to re- duce its use of raw materials such as paper and plastic, using certifi cated and traceable alternative sources instead, and to monitor the effi ciency of energy and water use by measuring and evaluating greenhouse gas emissions, so as to help reducing environmental impacts. In addition, the Group also seeks to constantly improve its environmental effi ciency and use renewable energy sources.
To deliver on its commitment in this area, the Company has adopted mul- tiple Management Systems for monitoring emissions and using energy sources responsibly. To the Salvatore Ferragamo, protecting the environ- ment means also promoting sustainable mobility initiatives for its employ- ees as well as monitoring consumptions and impacts linked to the retail area.
THE SALVATORE FERRAGAMO GROUP IN 2017
396.2 kWp B ≈ 230 trees
CAPACITY OF THE PHOTOVOLTAIC SCORE RECEIVED BY THE PARENT PLANTED AT THE PARCO DELLE IDEE PLANT AT OSMANNORO COMPANY IN THE CARBON IN THE SCIENTIFIC HUB OF SESTO DISCLOSURE PROJECT FIORENTINO
LEED ISO ≈ 1,000 Gold 14064 canteens FOR THE HISTORIC CANTON ROAD FOR THE PALAZZO SPINI FERONI DISTRIBUTED TO EMPLOYEES IN STORE IN HONG KONG HEADQUARTER ITALY TO REDUCE PLASTIC CONSUMPTION
74 Sustainability Report 2017 75 RESPONSIBLE CONSUMPTION3
In 2017, the Salvatore Ferragamo The Group promotes a sensible As for waste management, in Group consumed 11,963 GJ of and responsible use of water for 2017 19.5% of the waste the natural gas, up 14.5% from 2016 production facilities and hygiene- Group generated was recycled, due to adverse weather condi- sanitary purposes. In 2017, the 9.1% was sent to landfi lls, and the tions, and 89,334 GJ of electricity, Group consumed 257,860 m³ of remaining 71.4% was disposed of up slightly from 2016. As for the water (92.3% from the water sup- using other methods. These per- Italian scope, 100% of the energy ply system, 0.3% from groundwa- centages are essentially in line used comes from renewables and ter and 7.4% from surface water), with 2016, when 8% of waste was is certifi ed as "green energy" by compared to 77,194 m³ in 2016 recycled, 15% was sent to land- Enel. The photovoltaic system (77.9% from the water supply sys- fi lls, and 77% was disposed of us- at Osmannoro has a capacity of tem, 0.8% from groundwater and ing other methods. Moreover, con- 396.2 kWp: the power generated 21.3% from surface water)4. cerning specifi cally Italy, in 2017 from solar panels rose by 12.6% the Group improved waste sorting and accounted for 4.5% of total In addition, the Group is commit- to reduce the amount of waste energy consumption in Italy. Salva- ted to reducing the production of sent to landfi lls allowing to recover tore Ferragamo has also promot- waste generated during its opera- 60.1% of the generated waste. ed energy effi ciency by replacing tions. The Group strives to, and approximately 1,000 conventional raises awareness among its em- lighting fi xtures with Smart Light- ployees about, properly managing ing LED systems as well as im- and disposing of garbage, encour- proving the energy performance aging to reuse and recycle ma- and comfort of some areas of the terials as well as minimize waste. Osmannoro site. The structure is In 2017, the Company generated equipped with a computerized 1,159 tons of waste (of which system, the Building Management 99.7% was non-hazardous, and System (BMS), which enables the 0.3% hazardous), up from 1,084 control and monitoring of mechani- tons in 2016 (of which 99.6% cal and electric systems, such as was non-hazardous, and 0.4% for example micro-climate and illu- hazardous). Specifi cally, non-haz- mination, depending on the amount ardous waste generation was up of natural light from outside. approximately 7.0% from 2016.
THE SALVATORE FERRAGAMO GROUP IN FIGURES
2017 2016
NATURAL GAS CONSUMPTION (GJ) 11,963 10,450
ELECTRICITY CONSUMPTION (GJ) 89,334 85,690
WATER CONSUMPTION (m3)4 257,860 77,194
3 Based on the availability and materiality of data, the scope of the analysis, including a headcount of approximately 4,000 in 2016 and nearly 3,000 in 2017, is subject the following limitations: ∙ natural gas consumption covered 84% and 82% of the scope in 2016 and 2017, respectively; ∙ electricity consumption covered 84% and 82% of the scope in 2016 and 2017, respectively; ∙ water consumption covered 67% and 68% of the scope in 2016 and 2017, respectively; ∙ waste generation covered mainly the Group's Italian offices and logistics hub in 2016, and 64% of the scope in 2017. The availability of consumption data reported in this chapter is limited for some of the Group's stores due to the location and the nature of their operations as well as the fact that this type of data is not handled directly. Finally, some data could be based on estimates or calculations. 4 The increase in water consumption registered in 2017 is attributable to the refinement of the data collection process and the relevant calculation methods.
76 Sustainability Report 2017 77 The Salvatore Ferragamo, in keep- that can be recycled. In addition, negatively impact the environ- ing with responsible management the dust bags used to protect ment, integrating this goal in the of its business, is strongly commit- shoes, handbags and accesso- Sustainability Plan. ted to reducing the consumption of ries are made of pure unbleached materials such as paper and plastic. Made in Italy cotton. To sensitively reduce plastic con- sumption, in 2017 the Salvatore As per paper packaging for the The Group's environmental goals, Ferragamo distributed customized retail business, since 2014 the set out in the Sustainability Plan, canteens to its corporate employ- Salvatore Ferragamo has favored include extending the use of FSC- ees in Italy, inviting them not to paper certifi ed by the Forest certifi ed and post-consumer paper buy plastic bottles, but rather to Stewardship Council (FSC) which for packaging purposes to other use the water dispensers located bears witness to correct forest product categories. In selecting its near the offi ces. Besides promot- management and the traceability packaging suppliers, the Salvatore ing a healthy lifestyle, this initiative of the paper products. The FSC Ferragamo ensures that they not is estimated to save more than trademark guarantees that the only are based locally, which is the 37 water bottles per employee a product is made of raw materials main guarantee of Made in Italy year. The participating employees harvested from forests managed quality, but also have certifi cations were enthusiastic about the pro- according to sustainable princi- such as ISO 9001, ISO 14001 and ject and the Group will extend it ples. The shopping bags are Made ISO 18001. into the other areas where it oper- in Italy and postconsumer, i.e. ates over the next few years. consist for up to 45% of recycled In addition, for eCommerce pack- fi bers, and for the rest of virgin aging, the Company uses bubble pulp derived from environmental- wrap made from renewable plant ly-friendly processes. They are sources that can be disposed of 100% recyclable and biodegrada- as organic waste together with ble. This type of paper, developed animal and vegetable food scraps, for all weights, allows to mark since it is compostable and biode- corporate, silver jewellery, outlets gradable. Finally, as for non-pack- and Museum packaging with the aging materials such as catalogs, symbols relating to the aforemen- invitations, leafl ets, stationery and, tioned characteristics. Concerning in general, printed materials, the the packaging of the Ferragamo’s Group is placing increasing at- Creations line, since 2016 the tention on ensuring that they are Group has been using FSC certi- made with FSC certifi ed paper, fi ed paper manufactured in Italy, inks and processes that do not
MATERIALS CONSUMPTION (Kg) 2017 2016
A3 PAPER 3,175 2,780
A4 PAPER 31,988 36,033
PAPER FOR SHOPPING BAGS 392,049 338,980
COTTON BAGS 102,379 124,197
CLOTHES HANGERS 5,476 7,422
78 EMISSIONS MONITORING5
CARBON FOOTPRINT 2017 2016 the Group's sustainability vision. distributing refl ective braces to In Italy, the Salvatore Ferragamo all employees who commute by has appointed a mobility manager bike. Finally, in 2017 the Group SCOPE 1 - Direct emissions (kg CO eq) 1,327,212 1,172,340 2 to optimize employee travel and confi rmed the preferential agree- promote solutions allowing to limit ments for its employees with car environmental impacts. In 2017, and motorcycle manufacturers SCOPE 2 - Energy indirect ghg emissions (kg CO ) 10,403,695 10,219,901 2 the collaboration with JoJob con- that offer hybrid or electric vehi- tinued, an innovative carpooling cles. In order to evaluate potential SCOPE 3 - Indirect emissions not attributable to the product and,specifi cally, related service which makes it possible to solutions to improve and speed 3,132,323 3,340,100 to business travel (kg CO2 eq) share a car with work colleagues up travel times, reducing also the or with employees of companies relevant environmental impact, in nearby. Besides generating eco- 2017 the Group administered a nomic savings, the initiative re- survey on mobility and commut- Reducing greenhouse gas emis- In 2017, the agreement with UPS able achievement for newcomers. duces CO2 emissions caused by ing, and it is currently examining sions and calculating the carbon was confi rmed in order to offset Another environmental protection commuting. In June 2017, always the resulting insights to propose footprint play a crucial role in the all emissions generated by the initiative was fi nancing and build- to promote sustainable mobility, satisfactory solutions that could commitment of the Salvatore Fer- shipments of products ordered ing the Parco delle Idee (Park the Group held a bike to work day, benefi t its employees. ragamo to reducing its environ- via eCommerce in Europe and the of Ideas) on land owned by the showing employees the safest bi- mental impact. In 2017, the Group United States. The offsetting is University of Florence in the Sci- cycle route from downtown Flor- continued defi ning its carbon realized by participating in carbon entifi c Hub of Sesto Fiorentino. ence to the Osmannoro site. In footprint related to all air and sea neutral projects: in 2017, more The project involved planting ap- addition, in October a road safety shipping through the carriers that than 30 tons of CO2 equivalent proximately 230 native trees, also campaign was launched involving work with the Salvatore Ferraga- emissions were offset. with the help of some of the Par- mo, which totaled approximately ent Company's employees, and As evidence of the Group's com- was made possible thanks to the 21,500 tons of Well-to-Wheels CO2 equivalent emissions, down nearly mitment to reducing its environ- partnerships with local institutions 6.7% from 2016. Concerning the mental impacts, in 2017 the Par- and entities such as LifeGate, Group's other entities, the availa- ent Company voluntarily partici- Carbonsink and the Department ble data reveals that the subsidiar- pated for the fi rst time in the Car- of Agri-Food Production and En- ies made over 304,467 shipments bon Disclosure Project (CDP) for vironmental Sciences. The pro- for a total of nearly 2,645 tons of the accounting of CO2 emissions. ject will bring several social and goods transported. In addition, to The goal of CDP is to promote environmental benefi ts: from an reduce the environmental impact transparency about the emissions improved air quality, with positive linked to the supply chain, an initia- generated by businesses, cities, implications for public health, to a tive was launched which promotes states, and regions, allowing any- new green area that will promote the reuse of cardboard boxes by one to obtain information on the local biodiversity and enhance the footwear manufacturers in order environmental impacts of each of urban landscape as well as give lo- these entities. The assessment cal schools the opportunity to con- to limit CO2 emissions from the production of cardboard. The pilot was conducted for the “Climate duct play-based learning activities project, which started in 2016, led Change” section through a com- in the fi eld of biology, ecology, and prehensive survey on emissions and nature preservation. to a saving of over 20 tons of CO2 thanks to emissions avoided for the consumption. The Salvatore Ferrag- The search for sustainable mobil- production of new cardboard boxes. amo obtained a B score, a remark- ity solutions is another key part of
5 Based on the availability and materiality of data, the scope of the analysis, including approximately 4,000 employees in 2016 and nearly 3,000 in 2017, is subject to the following limitations: ∙ fuel emissions from company vehicles (SCOPE 1) covered 84% and 82% of the scope in 2016 and 2017, respectively; ∙ the emissions related to rail business travel (SCOPE 3) covered 78% and 80% of the scope in 2016 and 2017, respectively; ∙ the emissions related to air business travel (SCOPE 3) covered 84% and 80% of the scope in 2016 and 2017, respectively. The emissions from natural gas (SCOPE 1) and electricity (SCOPE 2) consumption covered the same scopes set out in the note on page 76. The factors used to calculate SCOPE 1 and SCOPE 3 emissions are those issued by the Department for Business, Energy & industrial strategy in 2017. The factors used to calculate SCOPE 2 emissions are those issued by Terna for 2016. Only CO2 emissions were considered in the calculation of SCOPE 2. The 2016 data has been restated using the same emissions factors adopted for 2017. Finally, some data could be based on estimates or calculations.
80 Sustainability Report 2017 81 GREEN CERTIFICATIONS AND INITIATIVES
As evidence of its commitment state-of-the-art water systems will certifi cation for the Osmannoro to effi ciency and protecting the allow to reduce total irrigation wa- site, which specifi es the require- environment, in recent years the ter use by 50% and drinking water ments to establish, implement, Group has been working to obtain consumption by 100%. The electri- maintain and improve a more ef- the most important environmental cal and mechanical systems have fi cient and sustainable manage- certifi cations for its offi ces. been designed to minimize light ment of energy. The certifi cation pollution, and the property will fea- will also be extended to some In June 2017, Salvatore Ferragamo ture a BMS (Building Management stores of the retail area over the achieved the ISO 14064 certifi ca- System) allowing to regulate me- next few years. tion for the Brand's historic Flor- chanical systems as well as moni- ence headquarter in Palazzo Spini tor and manage electrical ones. In Finally, in 2017 the Company intro- Feroni, after previously receiving it addition, to optimize the consump- duced a new Modelleria measuring in May 2016 for the Salvatore Fer- tion and comfort of employees, approximately 1,200 sqm at the ragamo Museum, Italy's fi rst green the Group has installed a radiant Osmannoro site. The new facility is corporate museum. The goal of fl oor heating system. The Hub will dedicated to Men's and Women's the certifi cation is to quantify the feature a photovoltaic plant with a Leather goods and equipped with greenhouse gas emissions relat- peak capacity of 863.50 kWh and advanced technology, combining ed to the operations carried out. consisting of approximately 3,200 industrial production and crafts- Achieving the ISO 14064 certifi ca- solar panels, resulting in a net manship to ensure manufacturing tion allows to defi ne the interna- 5,350 sqm installed surface area. processes of the highest possible tional best practices for managing, Finally, when the new Logistics quality and effi ciency. This space counting and verifying data and in- Hub will become operational, the was built with energy saving de- formation on greenhouse gas emis- Group will reduce the number of sign solutions and the entire build- sions, and its extension marked an packages shipped by implement- ing underwent a major renovation important step forward in meeting ing a best-fi tting algorithm, thus to make it safer and better able increasingly higher sustainability reducing shipping emissions. to withstand earthquakes. In addi- standards. tion, it was designed to limit emis- The new certifi cation will follow sions and consumption, optimize At its Osmannoro site, a new the LEED Platinum certifi cation energy use and implement renew- Logistics Hub is being currently obtained in 2016 by the Q build- able energy sources, also thanks built, an approximately 20,000 ing in Osmannoro. In 2017, the to a new photovoltaic system rat- sqm building comprised of a new commitment to achieving these ed at approximately 83 kWh. caretaker's lodge, a new ware- certifi cations was extended to the house, and all outdoor areas, in- retail area: in October, the historic cluding green spaces and new Canton Road store in Hong Kong roads. Since the design stage, received the LEED Gold certifi ca- the project has been realized to tion, and in December the store in achieve the LEED Platinum cer- Troy, Michigan obtained the LEED tifi cation, i.e. the highest possible Silver certifi cation. The Group has level. The project for the Hub, to included in its Sustainability Plan a be fi nalized by the end of 2018, commitment to certifying addition- involves overhauling the existing al stores over the next few years. internal road system in order to streamline and rationalize routes Concerning the retail area, in 2017 as well as renovating outdoor are- the Italian Chamber of Fashion as by creating a nearly 8,000 sqm (CNMI) issued the “CNMI Retail green space designed to improve Sustainability Standards”. These the outdoor comfort and environ- guidelines concern sustainable de- ment for employees. In addition to sign techniques for fashion retail the new 475 parking spaces in the operations, and the Salvatore Fer- garage, the Salvatore Ferragamo ragamo actively contributed to de- has designated 25 spaces for low- veloping them through the CNMI's emission electric vehicles to pro- Working Group on Sustainability. mote the use of alternative means In addition, in 2018 the Company of transportation. Furthermore, the will receive the ISO 50001: 2011
82 Sustainability Report 2017 83 METHODOLOGY
This document represents the the Group's performance and en- This document is to be published 2020. To this end, below are the conducting health and safety au- fi rst Consolidated Non-Financial sure the reliability of data, the use annually in accordance with Italian objectives already achieved and dits on its suppliers. In accordance Statement (hereinafter also re- of estimates has been limited as Legislative Decree 254/2016. For those yet to be reached relating with the ethical standards that ferred to as “NFS” or “Sustain- much as possible. Any estimate in information on the Consolidated to the various topics considered have always characterized it, the ability Report”) pursuant to Italian this document is made using the Non-Financial Statement, please as material: Group also acknowledges the in- Legislative Decree no. 254 of 30 best available methods and is ex- contact [email protected]. This trinsic value of each person and December 2016 transposing Di- pressly noted. Sustainability Report is also avail- Environment constantly strives to ensure re- rective 2014/95/EU of the com- able in the sustainability section of The Group considers protecting spect for human rights both within panies of the Group comprised For the sake of understanding, the Group's website (https://csr. the environment in which it oper- the Group and throughout the sup- of Salvatore Ferragamo S.p.A. the information contained here- ferragamo.com/en). ates to be key: to this end, it is ply chain. These are set out in the and its subsidiaries (hereinafter in, please note that the following committed to implementing initia- Group's Code of Ethics and, as far also referred to as the “Group” or terms are used in the document: This document was submitted to tives to make its offi ces increas- as the supply chain is concerned, “Salvatore Ferragamo Group”) for • “the Group” refers to the Salva- the Control and Risk Committee ingly environmentally sustainable in the Supplier Code of Conduct the period from 1 January through tore Ferragamo Group (“Group” and subsequently approved by and effi cient, as well as optimize that will be adopted during 2018. 31 December 2017. means the Parent Company Sal- the Board of Directors of Salva- production processes throughout vatore Ferragamo S.p.A. and the tore Ferragamo S.p.A. on 8 March the supply chain. In addition, the Employee-Related Matters In this sense, the NFS was pre- companies consolidated on a line- 2018. historic Palazzo Spini Feroni head- The Group has always been com- pared to ensure an understanding by-line basis); quarter is ISO 14064-certifi ed. mitted to promoting and maximiz- of the Group's operations, perfor- • “the Salvatore Ferragamo”, “the The cross-functional work group The Group intends to maintain its ing the potential of its human capi- mance, results, and impact, ad- Company”, “the Parent Company” dedicated to sustainability of Sal- commitment, devoting increasing tal as well as offering a stimulating, dressing the topics considered refer to Salvatore Ferragamo S.p.A.; vatore Ferragamo S.p.A. gathered attention and resources to the healthy and safe work environ- material and set out in Art. 3 of Ital- • “Italy” refers to the main area of and processed data and informa- protection of the environment, by ment, in accordance with corpo- ian Legislative Decree 254/2016. business of Salvatore Ferragamo tion through forms sent to the optimizing and making consump- rate welfare principles. The atten- Specifi cally, the scope of economic S.p.A. and Ferragamo Parfums heads of the Group's functions tion and greenhouse gas emissions tion and care for employees are data is the same as that of the S.p.A., unless otherwise specifi ed; concerned and included in the more effi cient, as well as pursuing expressed not only in the Group's Group's 2017 Consolidated Finan- • “Ferragamo” refers to the Salva- scope. The entity engaged to au- additional certifi cations. Sustainability Policy, but also in the cial Statements, while the scope tore Ferragamo Brand. dit this NFS is Deloitte & Touche Company Regulation. of social and environmental data S.p.A., which certifi es the compli- Social Matters and Respect for and information is limited only to The NFS has been prepared in ance of the information provided Human Rights Anti-Corruption and Bribery Matters the companies consolidated on a accordance with the G4 Sustain- herein with Art. 3, paragraph To provide its customers with To make its operations as trans- line-by-line basis. However, as for ability Reporting Guidelines issued 10 of Italian Legislative Decree products that meet the highest in- parent as possible, in accordance the information and data relating to in 2013 by the GRI - Global Re- 254/2016 in a separate report. ternational safety standards, the with ethical and compliance stand- environmental matters, please note porting Initiative using the «Core» The audit was conducted in accord- Group has adopted Restricted ards, during 2017 the Group fi - that in 2017 the Group conducted option. At the end of the docu- ance with the procedures outlined Substances Lists for different nalized an Anti-Corruption Policy an analysis to identify the stores ment, the Group has included a ta- in the section “Auditor's Report”. product categories and conducts that will be gradually tailored to considered material, anyhow ensur- ble listing the reported GRI indica- ecotoxicological tests on several local regulatory and organizational ing a proper understanding of the tors along with the relevant page Since its inception, the Salvatore components and fi nished prod- needs of the various entities. In Group's operations, performance, numbers. Ferragamo Group has always con- ucts. Concerning culture and the addition, it implemented a whistle- results, and impact. This reporting sidered sustainability as a model local community, the Group directs blowing system. scope represents approximately The performance indicators used of conduct to follow without any signifi cant attention and resources 70% of the Group's headcount. are those set out in the adopted compromise, and it has achieved to developing artistic and cultural For more information on initiatives, reporting standard and are repre- signifi cant results in this area over initiatives in line with the Charity generated or perceived risks and Please note that the chapter sentative of the different areas as the years. In order to reinforce its Policy it has been adopting for goals of the Salvatore Ferragamo “Culture and Participation” in- well as consistent with the opera- commitment, in 2017 the Group several years now. As for health Group in these areas, please see cludes data and information relat- tions carried out and the relevant developed a Sustainability Policy and safety, the Group is placing the relevant sections in this docu- ing to the Ferragamo Foundation, impacts. Specifi cally, when select- as well as a continuous improve- growing emphasis on this topic: ment. which, although not consolidated ing the performance indicators, ment program through a 2020 Sus- Salvatore Ferragamo S.p.A.'s ad- within the Salvatore Ferragamo the Group considered the mate- tainability Plan. Both documents ministrative offi ces and stores in Group, represents an important riality analysis, which accounted were submitted to the Control Italy are OHSAS 18001-certifi ed. way through which the Group gen- for the topics mentioned in Italian and Risk Committee in November This topic is material also through- erates its social impacts. Legislative Decree 254/2016. 2017. Specifi cally, the Sustainabil- out the supply chain: for several ity Plan, includes four macro-areas years now, the Group has been Any method of representing quan- Where possible, the information and multiple objectives, defi nes titative data other than the above contained in the NFS has been the Salvatore Ferragamo Group's is expressly described in specifi c provided along with a comparison strategic vision on sustainability We wish to thank all the Group's functions and the employees involved in the developement and preparation of this Sustai- notes. In addition, to fairly present to the year 2016. and will guide its actions through nability Report.
84 Sustainability Report 2017 85 ANNEXES
TOTAL WORKFORCE BREAKDOWN OF EMPLOYEES BY EMPLOYMENT CONTRACT AND GENDER
2017 2016 2017 2016
No. of persons Men Women Tot Men Women Tot No. of persons Men Women Tot Men Women Tot
Employees 1,3272,8564,183 1,254 2,782 4,036 Fixed term contract 95175270 63 162 225
Supervised workers 134206340 507 690 1,197 Permanent contract 1,2322,6813,913 1,191 2,620 3,811
Total 1,4613,0624,523 1,761 3,472 5,233 Total 1,3272,8564,183 1,254 2,782 4,036
BREAKDOWN BY EMPLOYMENT TYPE AND GENDER OF EMPLOYEES WITH A PERMANENT BREAKDOWN OF EMPLOYEES BY GEOGRAPHICAL AREA AND GENDER CONTRACT
2017 2016 2017 2016
No. of persons Men Women Tot Men Women Tot No. of persons Men Women Tot Men Women Tot
Parent Company 402549951 387 521 908 Full Time 1,1812,4503,631 1,143 2,438 3,581
Europe 138255393 123 275 398 Part Time 51231282 48 182 230
North America 309330639 284 284 568 Total 1,2322,6813,913 1,191 2,620 3,811
Central and South America 101100201 96 97 193 BREAKDOWN OF EMPLOYEES BY TYPE (HEADQUARTER AND RETAIL) AND GENDER
Asia Pacifi c 2951,2711,566 282 1,271 1,553 2017 2016 Japan 82351433 82 334 416 No. of persons Men Women Tot Men Women Tot Total 1,3272,8564,183 1,254 2,782 4,036 Headquarter 5197591,278 515 778 1,293 BREAKDOWN OF EMPLOYEES BY EMPLOYEE CATEGORY AND AGE GROUP Retail 8082,0972,905 739 2,004 2,743
2017 2016 Total 1,3272,8564,183 1,254 2,782 4,036
No. of persons <30 30-50 >50 <30 30-50 >50 BREAKDOWN OF EMPLOYEES BY TYPE (HEADQUARTER AND RETAIL) AND AGE GROUP
Managers 25598139 24 566 149 2017 White collars 1,0791,836228 1,031 1,751 217 No. of persons <30 30-50 >50 Tot Blue collars 5916455 65 181 52 Headquarter 153910 215 1,278 Total 1,1632,598422 1,120 2,498 418 Retail 1,0101,688 207 2,905
BREAKDOWN OF EMPLOYEES BY EMPLOYEE CATEGORY AND GENDER Total 1,1632,598 422 4,183
2016 2017 2016 No. of persons <30 30-50 >50 Tot No. of persons Men Women Tot Men Women Tot
Headquarter 169918 206 1,293 Managers 267495762 291 448 739 Retail 9511,580 212 2,743 White collars 8842,2593,143 770 2,229 2,999
Total 1,1202,498 418 4,036 Blue collars 176102278 193 105 298
Total 1,3272,8564,183 1,254 2,782 4,036
86 Sustainability Report 2017 87 NEW EMPLOYEE HIRES AND EMPLOYEE TURNOVER BY GEOGRAPHICAL AREA, GENDER AND AGE EMPLOYEES WHO RECEIVED PERFORMANCE APPRAISAL BY EMPLOYEE CATEGORY AND GENDER GROUP Incoming employees - 2017
No. of persons <30 30-50 >50 Tot Turnover 2017 2016 Men Women Men Women Men Women Men Women Men Women Men Women Tot Men Women Tot Parent Company 43 65 29 47 65 78 117 19.4% 21.3%
Europe 33 75 43 53 02 76 130 55.1% 51.0% Managers 89.1% 89.5% 89.2% 94.2% 87.5% 90.1%
North America 70 113 39 60 316 112 189 36.2% 57.3% White collars 68.4% 72.0% 71.1% 66.7% 74.9% 72.8%
Central and South 14 16 17 14 00 31 30 30.7% 30.0% Blue collars 47.2% 19.6% 36.8% 45.6% 18.6% 36.2% America
Asia Pacifi c 125 322 73 257 08 198 587 67.1% 46.2% Total 69.8% 73.2% 72.1% 69.0% 74.7% 72.9%
Japan 613 11 56 12 18 71 22.0% 20.2% HEALTH AND SAFETY INDICATORS6 - 2017 Total 291 604 212 487 10 33 513 1,124 38.7% 39.4%
Outgoing employees - 2017 Parent Company Europe North America
No. of persons <30 30-50 >50 Tot Turnover Rates7 Men Women Tot Men Women Tot Men Women Tot Men Women Men Women Men Women Men Women Men Women Lost day rate 22.2 17.4 19.4 19.3 217.3 147.8 1,1 10.9 6.2 Parent Company 24 44 27 40 12 5 63 89 15.7% 16.2% 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Europe 23 58 34 86 55 62 149 44.9% 58.4% Occupational diseases rate
North America 54 79 44 65 817 106 161 34.3% 48.8% Injury rate 2.3 1.9 2.0 2.4 3.0 2.8 4.7 5.1 4.9
Central and South 79 18 14 14 26 27 25.7% 27.0% America Central and South America Asia Pacifi c Japan
Asia Pacifi c 108 279 76 309 212 186 600 63.1% 47.2% Rates Men Women Tot Men Women Tot Men Women Tot
Japan 210 13 57 313 18 80 22.0% 22.8% Lost day rate 13.9 9.9 11.9 80.7 0.2 15.3 166.3 3.4 34.3 Total 218 479 212 571 31 56 461 1,106 34.7% 38.7% Occupational diseases rate 0.0 0.8 0.4 0.0 0.0 0.0 0.0 0.0 0.0 Incoming employees - 2016 Injury rate 3.3 0.8 2.1 0.6 0.3 0.4 2.7 0.6 1.0 No. of persons <30 30-50 >50 Tot Turnover Men Women Men Women Men Women Men Women Men Women INJURIES Parent Company 37 56 28 26 14 66 86 17.1% 16.ì5% 2017 2016 Europe 25 55 25 75 16 51 136 41.5% 49.1%
North America 34 36 28 37 24 64 77 22.5% 27.1% No. of cases
Central and South 87 22 25 11 31 33 32.3% 34.0% Injuries 66 51 America (30 for men; 36 for women) (26 for men; 25 for women) Asia Pacifi c 124 371 45 178 01 169 550 59.9% 43.3% Occupational diseases 1 3 Japan 220 12 33 21 16 54 19.5% 16.2% (1 for women) (1 for men; 2 for women)
Total 230 545 160 374 717 397 936 31.7% 33.6%
Outgoing employees - 2016
No. of persons <30 30-50 >50 Tot Turnover Men Women Men Women Men Women Men Women Men Women
Parent Company 32 39 24 32 49 60 80 15.5% 15.4%
Europe 23 48 18 63 16 42 117 34.1% 42.5%
6 North America 38 33 38 27 511 81 71 28.5% 25.0% The Salvatore Ferragamo Group made arrangements to collect health and safety data during 2017, therefore a comparison with the year 2016 is not available. Central and South 7 36 27 20 14 31 30 32.3% 30.9% The lost day rate is calculated as the ratio of total days lost for occupational injuries and diseases to total working hours during the same America period, multiplied by 200,000. Asia Pacifi c 112 327 50 245 07 162 579 57.4% 45.6% The occupational diseases rate is calculated as the ratio of total cases of occupational disease to total working hours during the same period, multiplied by 200,000. Japan 06 531 32 839 9.8% 11.7% The injury rate is calculated as the ratio of total injuries to total working hours during the same period, multiplied by 200,000. The absentee rate is currently not reported. Total 208 459 162 418 14 39 384 916 30.6% 32.9%
88 Sustainability Report 2017 89 BOUNDARIES OF THE GRI CONTENT GROUP'S MATERIAL ASPECTS INDEX
The following table presents the aspects set out in the GRI-G4 Guidelines that corresponde to the material aspects Here belove is the GRI table prepared using the "In Accordance-core" option, pursuant to the GRI-G4 Guidelines identifi ed for the Salvatore Ferragamo Group through the materiality analysis, as well as the relevant boundaries, of the Global Reporting Initiative. Any omission is reported as footnote to the individual indicator, if required. referencing to the impacts that each aspects may have within and outside the Group.
G4 MATERIAL ASPECTS BOUNDARIES OF MATERIAL ASPECTS CODE INDICATOR PAGE/NOTES
GENERAL STANDARD DISCLOSURES Categories Internal External
Category: Economic STRATEGY AND ANALYSIS Economic performance Salvatore Ferragamo Group - G4 -1 Statement from the most senior decision-maker about the Market presence Salvatore Ferragamo Group - Pag. 3 relevance of sustainability to the Group and its strategy Procurement practices Salvatore Ferragamo Group Suppliers
Category: Environmental G4 -2 Key impacts, risks and opportunities Pagg. 24-25 Energy Salvatore Ferragamo Group - Water Salvatore Ferragamo Group - ORGANISATIONAL PROFILE Emissions Salvatore Ferragamo Group - Effl uence and Waste Salvatore Ferragamo Group - G4 - 3 Name of the Group Pagg. 3;84-85 Transport Salvatore Ferragamo Group - G4 - 4 Primary Brands, products and/or services Pagg. 18-21
Category: Social G4 - 5 Headqaurter Pagg. 20-21 Sub-categories: Labor practices and decent work G4 - 6 Number of countries where the Group operates Pagg. 18;22 Employment Salvatore Ferragamo Group - G4 - 7 Nature of ownership and legal form Pagg. 24-25 Industrial relations Salvatore Ferragamo Group - Occupational health and safety Salvatore Ferragamo Group - G4 - 8 Markets served Pag. 22 Training and education Salvatore Ferragamo Group - G4 - 9 Scale of the Group Pag. 18 Diversity and equal opportunities Salvatore Ferragamo Group - G4 - 10 Characteristics of the workforce Pagg. 84-87 Sub-category: Human rights G4 -11 Percentage of total employees covered by collective Pag. 49 Non-discrimination Salvatore Ferragamo Group Suppliers bargaining agreements Supplier Human rights assessment Salvatore Ferragamo Group Suppliers G4 - 12 Description of the Group's supply chain Pagg. 32-37 G4 - 13 Signifi cant changes during the reporting period regarding Pag. 84-85 the Group's size, strucure, ownership or supply chain There were no signifi cant Sub-category: Society changes during the Local communities Salvatore Ferragamo Group - reporting period Anti-Corruption Salvatore Ferragamo Group - regarding the Group's size, strucure, ownership Sub-category: Product responsibility or supply chain. Customer health and safety Salvatore Ferragamo Group - Product and services labeling Salvatore Ferragamo Group - Marketing Communications Salvatore Ferragamo Group - G4 - 14 Application of the precautionary approch to risk management Pagg. 24-25 Compliance Salvatore Ferragamo Group - G4 - 15 Externally developed economic, environmental and social Pagg. 25;36;46;82 charters, principles or other initiatives to which the Group subscribes or endorses G4 - 16 Memberships of industry associations Pagg. 10;60;82
90 Sustainability Report 2017 91 CODE INDICATOR PAGE/NOTES CODE INDICATOR PAGE/NOTES
IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES SPECIFIC STANDARD DISCLOSURE
G4 - 17 Entities included in the Group's consolidated fi nancial Pagg. 18;84-85 ECONOMIC INDICATORS statements and indication of any entites non covered by the Sustainability Report MATERIAL ASPECT: ECONOMIC PERFORMANCE
G4 - 18 Process for defi ning the Sustainability Report's content Pagg. 14-15;84-85 G4 - DMA Disclosure on management approach Pagg. 38;50 G4 - 19 Identifi ed material aspects Pagg. 14-15 G4 - EC4 Financial assistance received from government During 2017, the G4 - 20 Material aspects within the Group Pagg. 14-15;90 Salvatore Ferragamo Group received G4 - 21 Material aspects outside the Group Pagg. 14-15;90 approximately 85,000 G4 - 22 Restatements of information provided in the previous Pagg. 80;84-85 Euro in government Sustainability Report grants for training. G4 - 23 Signifi cant changes from the previous Sustainability Report in Pagg. 76;80;84-85 the scope and aspect boundaries MATERIAL ASPECT: MARKET PRESENCE
STAKEHOLDER ENGAGEMENT G4 - DMA Disclosure on management approach Pag. 46 G4 - EC6 Pocedures for hiring people from the local community at Pag. 46 G4 - 24 Categories and groups of stakeholders engaged by the Group Pagg. 14-15 signifi cant locations of operations and proportion of senior Roughly 49.3% of the G4 - 25 Process for identifying stakeholders Pagg. 14-15 management hired from the local community. Salvatore Ferragamo Group managers has G4 - 26 Approach to stakeholder engagement Pagg. 14-15;38;42;52;54; been hired from local 63;70-71 community* in 2017. G4 - 27 Key topics raised during stakeholder engagement Pagg. 14-15 MATERIAL ASPECT: PROCUREMENT PRACTICES
REPORT PROFILE G4 - DMA Disclosure on management approach Pagg. 32-37 G4 - EC9 Proportion of spending on local supplies at signifi cant locations Pag. 34 G4 - 28 Reporting period for the Sustainability Report Pag. 84-85 of operations G4 - 29 Date of publication of previous Sustainability Report Pagg. 11;84-85 G4 - 30 Reporting cycle Pag. 84-85 ENVIRONMENTAL INDICATORS Contacts Pag. 84-85 G4 - 31 MATERIAL ASPECT: ENERGY G4 - 32 GRI content index Pagg. 91-97 G4 - DMA Disclosure on management approach Pagg. 12;74-76 G4 - 33 External assurance Pagg. 84-85;98-100 G4 - EN3 Energy consuption within the Group Pag. 76
GOVERNANCE MATERIAL ASPECT: WATER
G4 - 34 Governance structure of the Group Pagg. 24-25 G4 - DMA Disclosure on management approach Pagg. 12;74-76;82 G4 - EN8 Water withdrawal Pag. 74-76 ETHICS
G4 - 56 Values, principles, standards and norms of behaviour of the Pagg. 3;24-25;36;46 MATERIAL ASPECT: EMISSIONS Group G4 - DMA Disclosure on management approach Pagg. 12;74-76;80-82 G4 - EN15 Direct greenhouse gas emissions (Scope 1) Pag. 80 G4 - EN16 Energy indirect greehouse gas emissions (Scope 2) Pag. 80 G4 - EN20 Emissioni di sostanze nocive per l'ozono in peso Considering the nature of its operations, the Salvatore Ferragamo Group has not identifi ed other signifi cant emissions of ozone- depleting substances
* Omission: for privacy reasons, the indicated values do not include locally hired managers from the four companies consolidated on a line-by-line basis in North America.
92 Sustainability Report 2017 93 CODE INDICATOR PAGE/NOTES CODE INDICATOR PAGE/NOTES
G4 - EN21 NOx, SOx, and other signifi cant air emissions Considering the nature of its operations, the MATERIAL ASPECT: OCCUPATIONAL HEALTH AND SAFETY Salvatore Ferragamo Group has not identifi ed G4 - DMA Disclosure on management approach Pagg. 12;46;54;89 signifi cant emissions of G4 - LA6* Type of injury and rates of injury, occupational diseases, Pag. 89 NO , SO or other gases in x x lost days and absenteeism and total number of work- In 2016 and 2017, there 2016 and 2017. related fatalities were no fatal injuries.
MATERIAL ASPECTS: EFFLUENTES AND WASTE MATERIAL ASPECT: TRAINING AND EDUCATION G4 - DMA Disclosure on management approach Pagg. 74-76 G4 - EN23 Total weight of waste by type and disposal method Pag. 76 G4 - DMA Disclosure on management approach Pagg. 12;46;50-52;89 G4 - LA11 Percentage of employees receiving regular performance Pagg. 52;89 ASPECT: COMPLIANCE and career development reviews, by gender and by employee category G4 - EN29 Monetary value of signifi cant fi nes and total number of non- In 2016 and 2017, there monetary sanctions for non-compliance with environmental were no sanctions for laws and regulations non-compliance with MATERIAL ASPECT: DIVERSITY AND EQUAL OPPORTUNITIES environmental laws and regulations. G4 - DMA Disclosure on management approach Pagg. 12;46-48;86 G4 - LA12 Composition of governance bodies and breakdown of Pagg. 25;49;86 MATERIAL ASPECTS: TRANSPORTS employees per employee category according to gender age group and other indicators of diversity G4 - DMA Disclosure on management approach Pagg. 74;81 G4 - EN30 Signifi cant environmental impacts of transporting products Pagg. 74;81 SUB-CATEGORY: HUMAN RIGHTS and other goods and materials for the Group's operations and transporting members of the workforce MATERIAL ASPECT: NON-DISCRIMINATION
G4 - DMA Disclosure on management approach Pagg. 24-25;36;46 ASPECT: ENVIRONMENTAL GRIEVANCE MECHANISMS G4 - HR3 Total number of incidents of discrimination and corrective In 2016 and 2017, there G4 - EN34 Number of grievances about environmental impacts In 2016 and 2017, there actions taken were no incidents of fi led, addressed, and resolved through formal grievance were no grievances about discrimination. mechanisms environmental impacts.
ASPECT: CHILD LABOR SOCIAL INDICATORS G4 - HR5 Operations identifi ed as having signifi cant risk for incidents Pagg. 24-25;36;46-49 SUB-CATEGORY: LABEL PRACTICES AND DECENT WORK of child labor MATERIAL ASPECT: EMPLOYMENT ASPECT: FORCED OR COMPULSORY LABOR G4 - DMA Disclosure on management approach Pagg. 12;46;50;54;88 G4 - HR6 Operations identifi ed as having signifi cant risk for Pagg. 24-25;36;46-49 G4 - LA1 Total number and rates of new employee hires and Pagg. 50;88 employee turnover by age group, gender and region incidents of forced or compulsory labor
G4 - LA2 Benefi ts provided to full-time employees that are not Pag. 54 provided to temporary or part-time employees MATERIAL ASPECT: SUPPLIER HUMAN RIGHTS ASSESSMENT G4 - DMA Disclosure on management approach Pagg. 24-25;32;36 MATERIAL ASPECT: LABOR/ MANAGEMENT RELATIONS G4 - HR10 Percentage of new suppliers screened using human rights Pagg. 32;36 G4 - DMA Disclosure on management approach Pag. 46 criteria G4 - LA4* Minimum notice periods regarding operational changes Regulatory issues and salary considerations refer to individual national collective labor agreements and laws applied within the Group.
* The Group is making arrangements to improve data and information gathering related to this indicator. * Data on supervised workers are not reported at the moment.
94 Sustainability Report 2017 95 CODE INDICATOR PAGE/NOTES CODE INDICATOR PAGE/NOTES
ASPECT: HUMAN RIGHT GRIEVANCE MECHANISMS MATERIAL ASPECT: MARKETING COMMUNICATIONS
G4 - HR12 Number of grievances about human rights impacts In 2016 and 2017, there G4 - DMA Disclosure on management approach Pag. 42 fi led, addressed, and resolved through formal grievance were no grievances about G4 - PR7 Incidents of non-compliance with regulations concerning In 2016 and 2017, mechanisms human rights. marketing communications there were no incidents of non-compliance with regulations SUB-CATEGORY: SOCIETY concerning marketing communications. MATERIAL ASPECT: LOCAL COMMUNITIES
G4 - DMA Disclosure on management approach Pagg. 12;58-71 MATERIAL ASPECT: COMPLIANCE
G4 - SO1 Operations with implemented local community engagement, Pagg. 58-71 G4 - DMA Disclosure on management approach Pagg. 32;36-38;41 impact assessments and development programs G4 - PR9 Monetary value of signifi cant fi nes for non-compliance In 2016 and 2017, there with laws and regulations concerning the use of products were no sanctions for MATERIAL ASPECT: ANTI-CORRUPTION and services non-compliance with laws and regulations G4 - DMA Disclosure on management approach Pagg. 24-25 concerning the use of G4 - SO5 Confi rmed incidents of corruption and actions taken In 2016 and 2017, products and services. there were no incidents of corruption.
ASPECT: GRIEVANCE MECHANISMS FOR IMPACTS ON SOCIETY
G4 - SO11 Number of grievances about impacts on society fi led, In 2016 and 2017, there addressed and resolved through formal grievances were no grievances mechanisms about impacts on society.
SUB-CATEGORY: PRODUCT RESPONSIBILITY
MATERIAL ASPECT: CUSTOMER HEALTH AND SAFETY
G4 - DMA Disclosure on management approach Pagg. 12;32;36
G4 - PR2 Incidents of non-compliance with regulations concerning In 2016 and 2017, there the health and safety impacts of products and services were no incidents of during their life cycle non-compliance with regulations concerning the health and safety impacts of products and services during their life cycle.
MATERIAL ASPECT: PRODUCT AND SERVICE LABELING
G4 - DMA Disclosure on management approach Pagg. 28-32;36-42 G4 - PR3 Product and service information Pagg. 28-32;36-42 G4 - PR4 Incidents of non-compliance with regulations concerning In 2016 and 2017, there product and service information and labeling were no incidents of non-compliance with regulations concerning product and service information and labeling.
96 Sustainability Report 2017 97 98 Sustainability Report 2017 99 100