SUSTAINABILITYREPORT

Fiscal Year:
1 April 2020
31 March 2021

12th edition

The Chairman’s Letter to Stakeholders included in the
Alcantara S.p.A.'s Sustainability Report 2021

Photo Credits: Giovanni Gastel

Dear Stakeholders,

in the occasion of the issuing of the 12th edition of our Sustainability Report, we feel important to underline that transparency is the principal assumption on which we build our fact-based approach to sustainability.

Our commitment is proven also by the importance Alcantara gives to the opposition to the widespread of ‘greenwashing’, identified as the worst enemy of sustainability causing deception and damage to the consumer, generating situations of unfair competition and addressing investments, otherwise devoted to sustainability projects, to activities opposite to the goal.

In fact, Alcantara has had and continues to have an extreme attention to the best practices in the field of sustainability demonstrated by its pioneering role having been the first Italian company, and among the very first in the world, to reach the status of Carbon Neutrality certified by TÜV SÜD in 2009.

This year we want to underline as key elements that distinguish Alcantara’s approach to sustainability the following:

  • Alcantara adopts a fact-based approach, i.e. based on scientific evidence and certifications, and not controversial ‘greenwashing’ practices without foundation. Our sustainability journey is very serious: we have certified our Sustainability Report and our Carbon Neutrality by TÜV SÜD since 2009.
  • As a clear, self-determined and direct action to fight climate change, every metre of material produced and marketed by Alcantara has a net CO2 emissions balance of zero, with a cradle to grave approach, including not only the production process, but also the use and disposal phases of the product itself, therefore the overall lifecycle of the product.
  • After the reduction process, Alcantara’s residual emissions are offset through Certified and Verified Offsetting Projects, validated and proved by an accredited third party, following the application of rigorous verification processes to which all offsetting projects are subjected. Offsetting is an option that is regulated at an international level and also demanded by the Kyoto Protocol.
    Our Sustainability Report includes a description of the offsetting projects, aimed at expanding the use of renewable energy resources and improving the health and social conditions of people in the poorest and most disadvantaged areas of the world, while offsetting all CO2 emissions produced. In the past 12 years, Alcantara supported over 40 projects (i.e. hydroelectric, biomass, wind power, photovoltaic, cogeneration etc.) which involved more than 20 different countries (India, China, Eritrea, Taiwan, Uganda, Ghana, etc.).
  • Methodologically we followed a rigorous strategy, certifying every step of our path towards sustainability, seeking maximum transparency, staying away from false declarations. Every year with the Sustainability Report we give an overview of what we do and what our future plans are. It’s a fact that our pioneering method has been followed after several years by large multinationals both in terms of Carbon Neutrality and analyses of the entire life cycle of the product.
  • Alcantara is carrying on strong stakeholder engagement activities to raise awareness and encourage dialogue among international experts in different business sectors and crossfertilization in issues of sustainability. Through organizing and promoting these events, we want to create engagement from stakeholders by increasing the awareness on sustainability and creating a shared culture.

On proceeding with Alcantara’s long-term decarbonization plan, we have accelerated our serious path towards special versions of our material mated with increasing amounts of bio-based polymers and recycled polyester. To this regard, we pay extreme attention to utilize recycled polyester produced in Europe by post consumers scraps, recycled through a mechanical process, being traceable and certified. Due to the rapid growth of false statements on the use of recycled materials, for Alcantara these are the fundamental elements to distinguish recycled polyester. With this 12th edition of the Sustainability Report Alcantara wants to highlight how much sustainability remains a core value in its corporate culture, an important growth driver and a spur to developing its business strategy. Now, more than ever, we are convinced that sustainability is a value beyond cost: a value for our Company, our brand, our people and our stakeholders. A value for the future.

Andrea Boragno
Chairman and CEO of Alcantara S.p.A.

SUSTAINABILITY
MANAGEMENT

Certified Transparency

Alcantara S.p.A. has had and continues to have an extreme attention to the best practices in the field of sustainability demonstrated by its pioneering role having been the first Italian Industrial company, and among the very first in the world, to reach the status of Carbon Neutrality certified by TÜV SÜD in 2009. Alcantara S.p.A. adopts a fact-based approach, i.e. based on scientific evidence and certifications, and its sustainability journey is very serious: the Company has certified its Sustainability Report and its Carbon Neutrality.

United Nations

Global Compact

In FY 2021, Alcantara S.p.A. confirms its participation in the United Nations Global Compact (UNGC) and the Global Compact Network Italy Foundation (GCNI) - the world’s largest corporate sustainability initiatives operating at both international and local level - and presented its fourth Communication on Progress (CoP) describing its actions and policies relating to human rights, labour, environment and anti-corruption policies. As a result, Alcantara S.p.A. confirms its long-lasting commitment to sustainability by respecting and promoting the 10 Principles of the UNGC.

2022-2025

Sustainability Plan

In FY 2021, the Sustainability Plan of Alcantara S.p.A. has been updated with the aim to renew and reconfirm the main sustainability goals of the Company in line with the 17 Sustainable Development Goals (SDGs).
In line with the most advanced international practices in sustainability, Alcantara S.p.A. has developed a total of 23 specific objectives, for the four areas, to be achieved in the medium term (2022-2025). These tangible commitments are represented as follows:

Planet
Environmental
Sustainability
Climate Change Carbon Neutrality
Circular Economy
Energy Efficiency Water Footprint
Renewable Fuels
Environmental Impact
People
Social
Sustainability
Occupational Health and Safety Corporate Citizenship
Promotion of Art and Culture
Training
Alcantara® as a Brand Devoted to Sustainability
International Projects with Social Impact
Increase in Youth Employment
Prosperity
Economic
Sustainability
Supply
Chain
Involvement
Sustainable Innovation
Investments for Sustainability Tax trasparency
SUSTAINABILITY Management
Sustainability
Governance
Preparation of a Sustainability Plan Non-financial Reporting
Stakeholder Engagement & Reputation
Sustainability Guidance Committee Sustainability Risk Assessment

Stakeholder Engagement

Alcantara S.p.A. is also committed to a strong focus on stakeholder engagement, carrying out an organic group of actions and initiatives aimed at involving its principal partners from different business sectors in its sustainability program.

International Symposia on:

1st edition

“Sustainability and the New Automotive Value Chain”
Venice, October 2014

2nd edition

“The Automotive Ecosystem on the Global Road to Sustainability. The Asian Perspective”
Venice, October 2015

3rd edition

“Sustainability and Corporate Value”
Tokyo, October 2016

4th edition

“Coping with Change: Global Warming and Decarbonization”
Venice, March 2018

5th edition

“Climate HOW:
How to Engage the Society and Deploy Decarbonization”

Venice, February 2019

Exhibition:

“Alcantara Sustainability Renaissance”
G7 Environment,
Bologna, June 2017

Through organizing and promoting these events, Alcantara S.p.A. wants to create engagement from stakeholders by increasing the awareness on sustainability and creating a shared culture.

ECONOMIC
SUSTAINABILITY

Distribution

of Added Value FY 2021

In FY 2021, the direct economic value generated and distributed (Gross Global Added)
of Alcantara S.p.A. amounted to over €62 million.

Responsible Procurement

Alcantara S.p.A. has been monitoring its own supply chain since 2007, with the aim to increase its awareness and commitment to sustainability, asking its partners and suppliers to respect the universal principles of human rights, labour standards, environmental standards, and fight against corruption. This promotes the improvement of
Alcantara S.p.A.’s suppliers’ credibility within the environmental and social responsibility spheres.

FY 2021 SUPPLIERS’ CLASSIFICATION

1,182

total
suppliers

124

priority
suppliers

85

core

39

super
core

Specifically, in terms of commitment to sustainability, selected suppliers are encouraged to in turn undertake a path of Carbon Neutrality, for products and services offered to Alcantara S.p.A.
During FY 2021, the Company continued to raise the supply chain’s awareness of its environmental sustainability model, successfully expanding the categories of suppliers involved in the calculation of CO2 emissions and related offset.

Growth in International Markets

automotive

consumer
electronics

fashion &
accessories

interiors,
contract,
marine & aviation

FY 2021 TOTAL SALES

more about economic sustainability

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SOCIAL
SUSTAINABILITY

Measures to Prevent

and Cope with Covid-19

The spread of the Covid-19 pandemic made it necessary to implement extraordinary measures aimed at ensuring the safest possible working environments. To this end, Alcantara S.p.A. proceeded to implement a new concept of work spaces and environments that led to the application of numerous precautionary and organisational measures both at the HQ and the production plant. With the primary intention of protecting the health of all employees, Alcantara S.p.A.:

  • carried out periodic serological tests and rapid swabs to employees as well as of third-party companies;
  • placed limits and periodically sanitising all work environments;
  • used PPE (personnel protective equipment) in line with the guidelines of shared protocols;
  • suspended trips, physical meetings and group meetings;
  • renewed the “New Covid-19 employees” insurance policy, at the Company’s expense.

Health & Safety

6 years of relevant certification for the health and safety management system in compliance with
OHSAS 18001 (2015 to 2021).

Products Safety & Sustainability

The sustainability and safety of Alcantara S.p.A.’s offer has the following strength points:

made
in italy

carbon
neutrality

High-efficiency
energy procurement

Oeko-Tex®
Standard 100

Human rights
SA8000®

Compliance
with REACH regulations

Digitalisation

For reasons related to the spread of the global Covid-19 pandemic, Alcantara S.p.A. invested in the digital sphere as the main channel for dialogue with its clients and stakeholders, without forgetting the design community and the end consumer. With this in mind, the Company presented its new website with a new digital identity, and implemented its digital editorial calendar taking advantage of proprietary social media profiles.

Furthermore, Alcantara S.p.A. organized online events, runway shows and collaborations with companies in the automotive and fashion sectors, with artists, designers, art institutions and museums around the world, trying to overcome the restrictions imposed by the pandemic.

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ENVIRONMENTAL
SUSTAINABILITY

Carbon Neutrality

Alcantara S.p.A. has been Carbon Neutral since 2009. Being Carbon Neutral means having a net CO2 emissions balance of zero, from cradle to grave, i.e. including not only the production process,
but also the phases of use and disposal of the product itself.

In fact, Alcantara S.p.A. every year measures and reduces as much as possible the carbon dioxide emissions attributable to Company’s activities and to the product, from the beginning of the production process (raw materials included) to the end of the product’s life, offsetting residual emissions after the reduction process,
offering its customers a Carbon Neutral product.

To emphasize its responsible approach to these matters still further, Alcantara S.p.A. continues its commitment to the Carbon Disclosure Project (CDP), with the aim of continuing to measure and report on its CO2 emissions.

measuring

reducing

offsetting

12th anniversary of carbon neutrality*

*Certified to PAS 2060
by TÜV SÜD.

Energy Certification

ISO 50001

In FY 2021, Alcantara S.p.A. obtained for the fifth year in a row the ISO 50001 Energy Management Systems certification.

Certified and Verified

Offsetting Projects

In FY 2021 Alcantara S.p.A., in order to offset residual generated emissions amounting to the equivalent
of 18,116 tons of CO2, underpinned an additional four Certified and Verified Offsetting Projects, aimed at expanding the use of renewable energy resources and improving the health and social conditions of people in the poorest and most disadvantaged areas of the world, while offsetting all CO2 emissions produced.

PROJECT NAME PROJECT TYPE STANDARD COUNTRY QUOTAS
Dapein - Hydropower project Hydropower CER MYANMAR 10,616
Saipuran Wind Wind VCS INDIA 4,000
Haikou Rural Methane
Digesters Project in Hainan Province
Biogas GOLD STANDARD CHINA 1,500
Microenergy credits Mongolia - Microfinance for Clean Energy Product Lines Cookstoves GOLD STANDARD MONGOLIA 2,000
TOTAL 18,116
TOTAL: 18,116

Research and Development Centre

and New Products

Alcantara S.p.A. has a unique Research and Development Centre in Europe. The structures, technologies and skills of the Customer Innovation Centre and the R&D Centre, developed with the aim of designing new products and production processes, working on the material characteristics and providing ad hoc application solutions, have been completed with an internal Complex Manufacturing department, with the exceptional skills required to develop extreme customizations by combining complex technologies, able to provide the customer with the finished product, ready for assembling.

Also during FY 2021, in line with the objectives on sustainability, the Company has accelerated its serious path towards special versions of its material mated with increasing amounts of bio-based polymers and recycled polyester. Alcantara S.p.A. pays extreme attention to utilize recycled polyester produced in Europe by post consumers scraps, recycled through a mechanical process, being traceable and certificated.

more about environmental sustainability

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