Sustainability
Report 2024
15TH EDITION

To shape a
better future

NEEDS
IN
BALANCE

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Promoting a balance between social, economic, and environmental needs is essential today to guarantee everyone's future.

A message from
our CEO

Dear stakeholders,

It has been 15 years since Alcantara published its first Sustainability Report.
For Alcantara, sustainability is not a trend or a temporary need but, an absolute necessity. We have a responsibility to safeguard future generations by limiting climate change and preserving non-renewable resources.

Read more

Eugenio Lolli
CEO and General Manager
of Alcantara S.p.A.
  • Alcantara®
    is an innovative
    material
  • Alcantara®, a
    registered trademark
    of Alcantara S.p.A.,
    is the result of a
    unique proprietary
    technology
  • Alcantara S.p.A.
    is the only Italian Company
    that manufactures and
    sells the homonymous
    material worldwide

Milan

Headquarters

90 employees

Nera
Montoro
(Terni)

Production Site and Research and Development Centre

560 employees

Our sectors of
application

Automotive

Interiors, Contract,
Marine and Aviation

Fashion and
Accessories

Consumer
Electronics

1st
need

Identity and
Governance

Need for
balance

To address the global challenges related to sustainability, it is essential to consider and promote a balance among social, economic, and environmental needs to secure a future for everyone.

HIGHLIGHTS

Carbon Neutral

since 2009

15

certified Sustainability Reports
prepared on voluntary basis

Our distinctive approach
to sustainability

Our Sustainability Reports and our Carbon Neutral status are certified each year by independent third-party bodies. While acknowledging that offsetting is not the definitive solution, we will maintain our Carbon Neutrality status,
as we’re convinced that offsetting is an unavoidable tool to accelerate the fight against climate change beyond our value chain.

15 years of Carbon Neutrality

We have been pioneers in the Sustainability field, having been certified Carbon Neutral(1) by TÜV SÜD back in 2009.

Support for the UN Global Compact confirmed for the 7 th year in a row(2)

We continue our long-standing commitment to sustainability by providing an annual disclosure of our activities and practices in relation with the 10 Principles of the UNGC, and by contributing to the advancement of 16 of the 17 UN Sustainable Development Goals (SDGs).

(1)Carbon Neutrality certification is also based on offsetting of greenhouse gas emissions through carbon credits deriving from certified and verified offsetting projects.
(2)At the time the Fiscal Year 2024 Report was written, Alcantara adhered to the UN Global Compact Network Italia’s Manifesto ‘Imprese per le Persone e la Società’ (Businesses for People and Society).

An overview of our
2022 – 2025
Sustainability Plan

4 pillars and 23 specific targets to set our sustainability goals and define how we are going to achieve them.

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
committed to
sustainability
International projects
with social impact
Increase in youth
employment
Prosperity
Economic
sustainability
Supply chain
involvement
Sustainable
innovation
Investments
for
sustainability
Tax
transparency
Sustainability
Management
Sustainability
governance
Preparation
of a
sustainability
plan
Non-financial
reporting
Stakeholder
engagement
and reputation
Sustainability
guidance
committee
Transparency
and risk
assessment

2nd
need

Economic
Sustainability

Need for
resilience

We continue to run our business despite the complex scenario, relying on the strict accountability and establishing a strong cooperation with our supply chain.

HIGHLIGHTS

€66 million

added and distributed value

47%

local suppliers

€22 million

investments

Persistence of a tough
global context

The persistence of geopolitical tensions and the consequent rise of inflation deeply impacted the prices of raw materials and utilities. This context also affected the Company’s outlet markets, which saw a significant slowdown starting from the end of the calendar year, to be accentuated in the last quarter of the Fiscal Year 2024. Despite this complex scenario, we managed to run our Company in an economically sustainable way, providing stability to our clients and suppliers.

The strategic
importance of the
supply chain

Selection and management of suppliers are carried out through the implementation of various measures and procedures to ensure compliance with our sustainability, quality, and safety policies.

CSR SUPPLIER
ASSESSMENT

70 audits in the last 3 years
(31% of which with second-party auditors)
Total Priority Suppliers: 126
Super-core suppliers: 46
Core suppliers: 80
Total accredited suppliers: 61
Accredited super-core suppliers: 34
Accredited core suppliers: 27

Turnover
Breakdown

BY
GEOGRAPHIC
AREA
17% Others
65% EU
6% USA
12% China

Investments
Breakdown

Health and Safety: €3.8 mln
Environment: €2.1 mln

€5.9 mln
for HEALTH,
SAFETY and
ENVIRONMENT
15.06% Soil Pollution
64.15% Health and Safety
6.27% Air Pollution
14.52% Water Pollution

During the Fiscal Year 2024, the Company carried on procurement policies integrating environmental criteria and the development of employee welfare programs as required by the €40,000,000 sustainability loan provided by Intesa Sanpaolo in the Fiscal Year 2023.

In fact, Alcantara introduced an internal policy among its procurement procedures with the aim to integrate environmental considerations, encompassing purchases, transport, and energy supplies, and allocated 1% of its annual turnover, i.e. €1,952,000, for employee welfare.

3rd
need

People
Sustainability

Need for
people

It is only thanks to the commitment, professionalism and skills of its employees
that Alcantara is able to create economic, social and environmental value for the business and its stakeholders. Our people are the foundation of our success, driving innovation and ensuring that we meet our sustainability goals.

HIGHLIGHTS

Zero

recordable work-related injuries in the Fiscal Year 2024

+41.3%

growth in Company population vs.
Fiscal Year 2014

25%

of the variable remuneration of the senior management was connected with the achievement of sustainability related target

People are the key
to our success

This is the core assumption that lies at the heart of our personnel management policy, which aims at promoting accountability at all levels, making sure to maintain respect for roles, foster positive relationships between manager and employees, and work with cross-funcional teams.

5 elements for the growth and motivation of personnel
  • Communication and sharing of corporate individual and team objectives
  • Development of training plans aimed at professional growth at all levels
  • Control and feedback on the results obtained
  • Implementation of remuneration policies that ensure internal fairness, competitiveness within the market and recognition of achievements
  • Teamwork and understanding of business processes

Health
and
Safety

Our Health and Safety Management System has been certified with the ISO 45001 Standard, the pinnacle of our journey. Over the years, we have implemented several preventive measures, monitoring procedures and training courses, aimed at improving safety conditions in the work environment and protecting the workers’ well-being.

The Zero Accident
Project

The Zero Accident Project, in particular, was created with the goal to establish a set of measures capable of identifying possible actions for improving safety management beyond the requirements laid down by the current standards, and to reach the ‘zero accident’ target.

WORKER’S
BENEFITS

All personnel are granted additional benefits beyond what is established in the collective labour agreement, in order to promote and increase the well-being of employees.
1% of revenues devoted to worker’s benefit in the Fiscal Year 2024

THE VALUE OF
TRAINING

We believe that personnel training is fundamental to promote growth and personal fulfilment of employees.
32,066 trading hours provided in the Fiscal Year 2024 (74.46% of which for new hires)

Carpooling

Alcantara activated a project which involves the provision of a specialised digital platform, UP2GO, that enables employees to plan their trips, offering or asking for a lift to colleagues through an app that can be used on any smartphone. The platform allows to monitor the number of trips agreed, the kilometres travelled, the CO2 saved, assigning credits to individual users, also in order to activate a reward system with the recognition of an economic incentive, on a quarterly basis. The 25,302 km travelled by project participants in the period 1 December 2023 - 31 March 2024, resulted in emission savings estimated by UP2GO at 7,689 kg CO2e.

4th
need

SOCIAL
Sustainability

NEED FOR
ENGAGEMENT

By engaging all our stakeholders in our mission, we aim to foster collaboration and ensure that our efforts toward sustainability are embraced and supported across all levels of our organisation and beyond.

HIGHLIGHTS

22

events and co-branding initiatives

50

scholarships awarded in the
Fiscal Year 2024

€105,000

in donations and contributions
to local communities

Events and
co-branding
activities

In line with Alcantara’s positioning as a global lifestyle brand, every year we organise events aimed at spreading and reinforcing our key messages and values in all our main markets. In the Fiscal Year 2024, we continued to intensify our use of digital communication as a channel for dialogue with clients and stakeholders, as well as with the design community and the end consumer.

Furthermore, ever since the beginning of its history, Alcantara has collaborated positively with leading global luxury brands through co-branding activities in various sectors.

Our material often acts as a source of inspiration for important artists and designers, becoming the centrepiece of creations exhibited at prestigious museums and international institutions.

Supporting
local
community
initiatives

We sustain and finance various charitable organisations and cultural initiatives that help to improve local well-being, thus creating shared value for the entire community.

Scholarships

over the course of 10 years, the most deserving students in Narni have been awarded 137 scholarships (15 in the Fiscal Year 2024), while children of employees have received 240
scholarships (35 in the Fiscal Year 2024).

‘Premio senza barriere’

in the Fiscal Year 2024, 9 awards were disbursed to parents of children with disabilities, totalling nearly €4,000 (66 families in total have received the award since 2015).

Training for schools

6 curricular internships were activated at the I.T.S. Umbria and 3 school-to-work programmes at the Istituto Tecnico Tecnologico in Terni, totalling 9 internships.
From 2013 to date, 24 people have been hired after serving an internship.

Loyalty bonus

21 employees who have reached 25 years of service in the Fiscal Year 2024 were awarded a loyalty bonus consisting of fuel vouchers worth €1,050 overall.

Corporate nursery

since 2012, 40 children of employees have been enrolled (5 in the Fiscal Year 2024), and nearly €35,000 have been devoted to these enrollments.

Urban Re-Generation Project

sponsored by Confindustria Umbria with the financial support of the Fondazione Cassa di Risparmio di Terni e Narni, its goal is to promote sustainable development, urban manufacturing and social regeneration within the local area. In January 2024, the TURN Urban
Re-Generation Terni-Narni business network was the first in Italy to achieve the ISO 37101 certification for ‘Sustainable management of communities’.

5th
need

Environmental
Sustainability

Need for
Climate Action

We organise all future activities by building an action plan focused on energy efficiency, circular economy, and supply chain efficiency. In the meantime, we will maintain our Carbon Neutrality status, as we are convinced that offsetting too is an unavoidable tool for the acceleration of the fight against climate change beyond our value chain.

HIGHLIGHTS

42,886 t CO2

compensated in the
Fiscal Year 2024

6.5%

reduction in Category 1 and Category 2
since the Fiscal Year 2022

68%

of waste allocated for recovery

Our approach to
climate change

The environmental impact of our production process mainly concerns the emissions released into the atmosphere, water discharges and waste.
We are constantly committed to mitigating and reducing the impact of our production processes on the environement through:
  • improving environmental efficiency
  • training and briefing employees on the most urgent environmental issues
  • raising awareness outside the Company

Carbon
Neutrality

Since 2009, we have obtained the Carbon Neutrality certification, compensating for the entire impact in terms of equivalent CO2 emissions through carbon credits deriving from certified and verified offsetting projects.

We believe that carbon credits are a useful tool to accelerate the fight against climate change beyond our value chain, and to measurably reduce global emissions.

Besides, the projects supported by Alcantara every year bring tangible social benefits to the impacted territories.

The two initiatives from which we acquired carbon credits in the Fiscal Year 2024 were related to the production of electricity from landfill gas and hydroelectric sources, offsetting a total of 42,886 ton(3) of CO2 equivalent.

(3)ton = metric ton.

PROJECT
NAME
Chorokhi Hydro
Power Plant
Project
Haicheng
Landfill Gas
Power
TYPE
OF PROJECT
Hydroelectric
Landfill Gas
STANDARD
VCS
VCS
LOCATION
Batumi
Haicheng City
QUOTAS
12,259
30,627

Main environmental
performances

Energy

6,401 TOE(4)
saved thanks to our cogeneration and trigeneration plants

(4)Calendar Year 2023.

Emissions

4,860 t CO2 e
reduction in Category 1(5) and Category 2(6) since the Fiscal Year 2022

(5)Category 1 – Direct emissions.
(6)Category 2 – Indirect GHG
emissions from imported energy.

Industrial water

264,128 m3
of water recovered

Self-produced energy

495.5 GJ
of electricity produced by the photovoltaic plants at Milan headquarters and Nera Montoro production plant

The photovoltaic system installed at the Milan headquarters in the last Fiscal Year produced 114 MWh of electricity in the Fiscal Year 2024, with 94% used for self-consumption and 6% fed back into the grid.

This allowed covering 17.3% of the site’s electricity demand with self-produced renewable energy. Additionally, the installation of a 300 kW photovoltaic system at the Nera Montoro production plant was completed.

The photovoltaic system has been operating since December 2023 and generated 24.2 MWh of self-produced energy.

Our environmental
certifications

1
Certification of the Environmental Management
System (EMS)

since 2000, in
accordance with
UNI EN ISO 14001

2
Certified Carbon Neutrality

to PAS 2060 since
2009

3
ISO 50001 energy
certification

since 2017

6th
need

Product
Sustainability

Need for
Innovation
and Circularity

By developing new technologies and adopting circular business practices, we can preserve resources for future generations.

HIGHLIGHTS

7.7%

of mechanically recycled PET used in spinning

91%

fashion products produced with partially
bio-based polyester

4%

of turnover invested in Research and Development

Alcantara
key features

  • High level of customisation
  • Versatility
  • Lightness and strenght
  • Breathability
  • Resistance to external agents
  • Aesthetic and sensorial features
  • Brand’s standing
  • Italian craftsmanship
  • Carbon Neutrality

Our product
certifications

Valid for single brands/families

1
Oeko-Tex Standard 100

2
Recycled Claim Standard

3
IMO MED

according to European Directives 2002/75/EC and 96/98/EC

4
CPD construction products

according to European Directive 89/106/EC

The Automotive
Concept Book

A key component of the stylistic offering for the automotive market is our Automotive Concept Book. As past collections, the new offering was presented both in-person and remotely to several Design and Colour & Trim Offices, obtaining excellent feedback from customers. Divided into three books, the 2023 Automotive Concept Book is inspired by a journey through styles and tells about three different visions of the future. These were masterfully represented using established technologies, such as electro-welding and laser drilling, and new and more complex ones, such as invisible embroidery and parametrically developed patterns.

A sustainable circular
economy approach

In the Fiscal Year 2024 we increased the percentage of partially bio-based PET and mechanically recycled PET polymers used in spinning, partially replacing fossil-derived raw materials. There has been a significant effort to homologate recycled PET based products with various customers, resulting in increased sales in the automotive sector. Additionally, our Research and Development department continues to develop and diversify water-based products, which now account for 22% of total sales volume. Furthermore, gr3n’s patented technology, Microwave Assisted DEpolymerization (MADE), which allows PET plastic and polyester fiber waste to be upcycled into virgin-quality was recently applied to recover Alcantara material from the Seed Bed exhibition, which introduced the BioGrounds concept to Certosa Island in Venice during the 12th edition of the Alcantara-MAXXI project. The material from the installation was regenerated using the gr3n technology, thus confirming the effectiveness on a pilot scale, as well as the quality of the monomers recovered.