SUSTAINABILITY REPORT 2023

Canali adopted the Life Cycle Assessment (LCA) approach to assess the environmental impact of its activities, using the Organisation Environmental Footprint (OEF) methodology. Through this analysis, it calculated Scope 1, 2 and 3 emissions, noting that - in line with the fashion and apparel industry scenario - 90 percent of impacts come from supply chain activities and the product life cycle (Scope 3). To contribute to climate change mitigation, Canali engages key suppliers to enhance the traceability of the supply chain and select the most sustainable products then reduce the impact of incoming fabrics. In addition, the group has developed a mitigation plan based on self-generation of renewable energy and optimization of energy consumption. Canali pays great attention to biodiversity, mapping its production sites with a view to transparency and enhancement of its Made in Italy.

Canali has deepened the OEF study through Product Environmental Footprint (PEF) analysis on two garments selected for their relevance in production volumes and their symbolic value in the collection: a jacket and a suit in 100% wool. The cradle-to-grave analysis considered the entire product life cycle, including materials, production processes, water consumption, and logistics. The analysis assessed the excellence of management and traceability of each stage of the production process, highlighting its role in creating durable products. Through PEF Canali has in fact scientifically demonstrated the high durability of its garments-derived from the quality of the materials, repairability and design-thus contributing to the reduction of their environmental impact. In addition, the Group is actively involved in end-of-life management, participating in Retex.Green for the recovery and recycling of textile waste.

By adopting a governance ethic that puts people at the center, the company sets challenging goals that are positive not only for the business but also for people, valuing the uniqueness of each person and promoting a sense of belonging. Attention is paid to internal communication and tools for listening and discussion between manager and employee. Training, a pillar of HR activities, integrates ESG issues, while the Welfare Plan addresses the noneconomic needs of employees, such as well-being and work-life balance. 

Valuing people's uniqueness and sense of belonging are at the heart of the CAre Project's “REspect” principle, formalized in Canali's Code of Ethics, which promotes values such as respect for human rights and individual dignity. In 2023, 59% of Canali's 1337 employees are between the ages of 30 and 50, while those under 30 account for only 5%. The workforce is 22% male and 78% female. Canali is committed to preventing and suppressing all forms of discrimination, ensuring that any violations can be reported and sanctioned. The company promotes an inclusive work environment by prohibiting discriminatory practices in all HR processes to ensure fairness based on factors such as gender identity, sexual orientation, physical or mental disability, ethnicity and nationality, age, socioeconomic status, and pregnancy or maternity.

The Group is committed to ensuring safe working conditions in all its plants and operating locations by responsibly addressing activities to prevent occupational injuries and illnesses. By managing the Group's production activities, the material focus on health and safety is on Canali S.p.A. and its specific risk assessment, management and prevention tools. The other Group companies take appropriate measures to comply with local regulations and prevent specific injuries, using their own internal regulations, which also include guidelines for occupational health and safety management.

Made in Italy is a key value reflected in the also in the short and integrated supply chain, allowing direct control over the quality of raw materials, processing and business relationships. The company applies ethical compliance criteria in the selection of suppliers and, thanks to the 'adoption of the European OEF (Organization Environmental Footprint) and PEF (Product Environmental Footprint) models, collects data along the supply chain to calculate the ecological footprint, actively involving stakeholders and monitoring the environmental impact throughout the product life cycle.  

CAre is also reflected in customer satisfaction, with an unwavering commitment to high quality products and service excellence. Transparency is key to maintaining consumer trust and promoting sustainable choices. The REpair & REstore service offers assistance with garment care and repair, helping to reduce environmental impact and extend product life, thus promoting the value of durability that drives design choices.

Canali's business ethics are reflected in its ESG management, materializing in the implementation of production structures that ensure careful management of the environmental impacts of its activities, and in its continuous attention to the interests of its employees and the local community in which it operates. In compliance with Legislative Decree No. ^231/2001, Canali has voluntarily equipped itself with an Organization, Management and Control Model (“Model 231”) and a Code of Ethics, and monitors the main risk factors related to the occurrence of crimes and offenses. It has also appointed a Supervisory Board to monitor compliance with the principles of the Model and handle reports of wrongdoing.

Italian know-how represents a great wealth and a fundamental asset for the company, guaranteeing excellent offerings through direct control over the quality of goods and processes, as well as the safeguarding of tailoring techniques, the heritage of traditional Italian craftsmanship. Production takes place entirely in Italy, with 70 percent made in Canali's workshops and the remainder from monitored external suppliers, each specializing in their own district. This short, integrated supply chain allows for careful monitoring and embraces a virtuous, logistically streamlined and efficient business model.

Canali integrates values and experience with innovation in production processes: the challenge is to evolve traditions with rigor and creativity. By adopting cutting-edge technologies and sustainable methodologies, the Group aims to transform every stage of production, ensuring efficiency, superior quality and lower environmental impact. This approach makes it possible to respond to the needs of an ever-changing market and anticipate trends while maintaining a commitment to excellence. A significant example of this approach is the innovative fabric cutting management system developed in the Sovico Cutting Room, which uses a unique technique perfected over ten years of research and development.