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Sustainability Report 2017 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
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