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Non-Financial Consolidated Statement 2018 #GEOXSUSTAINABILITY

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Non-Financial Consolidated Statement 2018 #GEOXSUSTAINABILITY BREVETTO ITALIANO #GEOXSUSTAINABILITY ELECTRIC RACING CHAMPIONSHIP BREVETTO ITALIANO Non-Financial Consolidated Statement 2018 #GEOXSUSTAINABILITY Formula E and are property of the respective owners #GEOXSUSTAINABILITY GEOX SpA GEOX SpA Via Feltrina Centro, 16 Via Feltrina Centro, 16 31044 Biadene di Montebelluna 31044 Biadene di Montebelluna +39 0423 2822 - Fax +39 0423 284125 +39 0423 2822 - Fax +39 0423 284125 geox.com geox.com Non-Financial Consolidated Statement 2018 pursuant to (Italian) Legislative Decree no. 254/2016 NON-FINANCIAL CONSOLIDATED STATEMENT 2018 INDEX CHAIRMAN'S MESSAGE TO STAKEHOLDERS..........................................................................4 GEOX GROUP .............................................................................................................................6 HISTORY .....................................................................................................................................7 GROUP PROFILE ........................................................................................................................20 INTRODUCTION ..........................................................................................................................20 MISSION, VALUES AND PHILOSOPHY ......................................................................................23 STRATEGY ...................................................................................................................................29 ECONOMIC PERFORMANCE: CREATING VALUE FOR STAKEHOLDERS ................................30 RESPONSIBLE GOVERNANCE ..................................................................................................35 GROUP GOVERNANCE ..............................................................................................................36 INTERNAL AUDIT AND RISK MANAGEMENT SYSTEM .............................................................41 SUSTAINABILITY POLICIES AND COMMITMENTS ...................................................................44 BUSINESS INTEGRITY AND ANTI-CORRUPTION MEASURES .................................................46 THE ROADMAP TOWARDS SUSTAINABILITY ...........................................................................48 GEOX'S SUSTAINABILITY PRIORITIES ......................................................................................49 STAKEHOLDER ENGAGEMENT .................................................................................................52 PRODUCTS .................................................................................................................................56 FOCUS ON TECHNOLOGY AND PRODUCT INNOVATION ........................................................58 PRODUCT QUALITY AND SAFETY .............................................................................................62 THE SUPPLY CHAIN ...................................................................................................................68 SUPPLY CHAIN PROFILE ...........................................................................................................70 DEVELOPING A RESPONSIBLE SUPPLY CHAIN .......................................................................72 INVOLVING AND LISTENING TO SUPPLIERS AND ENSURING STABLE BUSINESS RELATIONSHIPS ...75 PEOPLE .......................................................................................................................................78 HUMAN RESOURCES ................................................................................................................80 DIVERSITY, EQUAL OPPORTUNITIES AND PROTECTING HUMAN RIGHTS AND WORKERS’ RIGHTS .84 REMUNERATION, INCENTIVE SCHEMES AND BENEFITS ........................................................85 WORK-LIFE BALANCE ...............................................................................................................87 STAFF TRAINING AND DEVELOPMENT .....................................................................................87 PROTECTING WORKERS’ HEALTH AND SAFETY .....................................................................89 DIALOGUE AND INTERNAL COMMUNICATIONS ......................................................................93 INDUSTRIAL RELATIONS ...........................................................................................................93 PRODUCTION FACILITIES IN SERBIA ....................................................................................... 95 CUSTOMERS ............................................................................................................................. 98 CUSTOMER FOCUS AND EXCELLENT SERVICE .....................................................................100 DATA SECURITY AND PROTECTION ........................................................................................103 BRAND PROTECTION AND THE FIGHT AGAINST COUNTERFEITING ....................................104 MARKETING, COMMUNICATION AND PRODUCT INFORMATION STRATEGY .......................106 ENVIRONMENT ..........................................................................................................................110 COMMITMENT TO PROTECTING THE ENVIRONMENT ...........................................................112 RESORCE MANAGEMENT ........................................................................................................113 SOURCING MATERIALS ............................................................................................................115 WASTE .......................................................................................................................................116 WATER .......................................................................................................................................118 ECO-DESIGN OF STORES .........................................................................................................123 COMMUNITY .............................................................................................................................126 HELPING THE COMMUNITY TO DEVELOP ..............................................................................128 METHODOLOGICAL NOTE ........................................................................................................132 TABLE LINKING GEOX MATERIAL TOPICS WITH THE GRI STANDARDS ................................135 GRI CONTENT INDEX ................................................................................................................136 THIRD-PARTY CERTIFICATION .................................................................................................141 CONTACTS .................................................................................................................................144 CHAIRMAN’S MESSAGE TO STAKEHOLDER The name GEOX was created with GEA (“GAIA”) - Mother Earth - in mind, thinking also about how to use innovation to make people feel good, hence the “X” in our name. Geox’s objective is to improve the daily lives of its customers through innovative products that guarantee breathability. The “shoe that breathes” is a notion, an idea and a promise that, from the moment it was created, has become the keystone of Geox’s mission, aimed at well-being and total comfort. Here at Geox, we're convinced that it is essential to apply ethical standards and principles focusing on fairness and respect, solidarity, the protection of individuals, sustainability and environmental protection in order for our company, and indeed the world, to achieve long-lasting development. Over the years, our strong belief that even a simple pair of shoes can improve the well-being of the world and the people in it, has led us to continuously search for new and better ways to create our collections, paying more and more attention to quality and the environment. Human activity is undermining environmental harmony and does not always guarantee the best quality of life for people: that's why we believe it is of crucial importance for every company to evolve and put the well-being of the planet and society at the top of their list of priorities. A successful business in the 21st century has a responsibility to use its potential to contribute to solving today’s environmental and social issues. That’s why we've been working on a Sustainable Innovation initiative for many years now, regarding everything that we do. The time has now come to collectively involve all of you, and we want to help transform our industry, also by using our Non-Financial Consolidated Statement to tell the story of the large and small-scale measures that we’ve successfully implemented. Our aim is to guarantee full transparency for all of our stakeholders. Mario Moretti Polegato THE GEOX GROUP HISTORY It was almost 25 years ago when Mario Moretti Polegato, founder and chairman of Geox, came up with the revolutionary idea of piercing the rubber soles of his shoes, allowing his feet to breathe during a trip under the hot sun of Reno, in Nevada. So, why not create a product that’s as flexible and strong as a normal rubber sole, at the same time as guaranteeing extraordinary performance in terms of breathability and water resistance? When he got back to Italy, Moretti Polegato decided to develop his idea in a small footwear company belonging to his family, creating a new technology for rubber soles: that’s how the first “shoe that breathes” was born, which he immediately patented. After pitching his
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