SUSTAINABILITY REPORT

2022

Fiscal Year:
1 April 2021
31 March 2022

13th edition

A message from our Chairman

Photo: Giovanni Gastel

Dear Stakeholders,

this year, with the release of the 13th edition of our Sustainability Report - synthesized in this pocket edition - we felt important to emphasize a peculiar aspect of our pioneering role in the field of sustainability: the awareness that every single action generates a trace, a mark, which can have a significant impact on our stakeholders and spread its effects over time.

With our traces we wish to highlight the rigorous path that we have methodologically taken in the past, certifying each our steps towards sustainability, seeking maximum transparency, staying away from any possible false declarations. The clear evidence of this is our fact-based approach, supported by scientific evidence and certifications, and not on controversial “greenwashing” practices without truthful, scientifically proven and understandable bases.

Our sustainability journey is very serious and we believe that our path can still be considered a valid point of reference even today.

In fact, we have given, and we are continuing to give an extreme attention to the best practices in the field of sustainability taking the latter as an important starting point and not as an arrival point.

The key steps of our commitment to sustainability may be summed up as follows:

  • the Certified Carbon Neutrality, with the ‘cradle-to-grave’ approach that defines and summarizes the action we designed to manage the fight against climate change;
  • the Certified and Verified Offsetting Projects we participate in, to neutralize our residual emissions after the reduction process;
  • the new product line deriving from certified post-consumer recycled polyester;
  • the activities of Stakeholder Engagement such as the International Symposium on Sustainability, which has reached its 6th edition.

We also wish to underline that sustainability is the most critical issues of our times: that’s why it is a core value deeply rooted in our corporate culture, an important growth driver and a spur to developing our business strategy.
Sustainability is a purpose that should be embraced on a global scale: there is no other way. Our invitation to follow us on this journey and to continue the dialogue on all sustainability issues conveys a promise: we will keep on evolving our next traces with an ever-increasing sense of responsibility and a broader point of view.

Thank you.

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

Alcantara®
is an innovative material

Alcantara S.p.A.
is the only Italian Company
that manufactures and sells
the material of the same name worldwide

Alcantara®
is a registered trademark
of Alcantara S.p.A.,
the result of a unique proprietary technology


Our sectors of application

Automotive

Interiors, Contract, Marine & Aviation

Consumer Electronics

Fashion & Accessories

We’re seeking maximum transparency, staying away from false declarations, through tangible, fact-based and measurable activities that reflect the core values of our Company.

Company operational for
50 years

Carbon Neutral
since 2009

13th
Sustainability Report

We adopt a fact-based approach

Over the years, we have made and continue to make best sustainability practice a central focus, a commitment demonstrated by our distinct and unique approach, based on facts and scientific evidence.
From the start of our journey, our Sustainability Reports and our Carbon Neutral status have been certified by dependable third-party bodies.


We have been Carbon Neutral since 2009

We were the first Italian industrial Company, and one of the first in the world, to achieve Carbon Neutral status, certified by TÜV SÜD each year since 2009. This means having net-zero CO2 emissions, after offsetting, including not only the production process, but also the product's use and disposal stages.

We deliver a disclosure of value

Our Sustainability Report, now in its 13th year, is prepared on a voluntary basis and is a 'track' record of fundamental importance as well as an indispensable part of our engagement with, above all, our people, suppliers and business partners.
It is also a valid self-assessment tool and an act of certified transparency, being a full disclosure of what we do and of what our future plans are.


We are a member of the Global Compact

In Fiscal Year 2022, we reconfirmed for the 5th year running our membership of the United Nations Global Compact (UNGC) and of the Global Compact Network Italy Foundation (GCNI), continuing our commitment to respect and promote the 10 principles of the UNGC and, in parallel, to contribute to advancing 16 of the 17 Sustainable UN Development Goals (SDGs).

Looking to the future

The 2022-2025 Sustainability Report comprises 4 pillars and 23 specific targets that, together, define our very identity and are the tool we use to set our sustainability goals and the means of achieving them.

PLANET
ENVIRONMENTAL
SUSTAINABILITY
Climate Change Carbon Neutrality
Circular Economy
Energy Efficiency Water Footprint
Renewable Fuels
Environmental Impact
PEOPLE
SOCIAL
SUSTAINABILITY
Worker health and safety Corporate Citizenship
Promotion of Art and Culture
Training
Alcantara® as a brand committed
to Sustainability
Social Impact International Projects
Increase in youth employment
WEALTH
ECONOMIC
SUSTAINABILITY
Involvement in the Supply Chain
Sustainable Innovation
Sustainability Investments Tax Transparency
SUSTAINABLE MANAGEMENT
SUSTAINABILITY
MANAGEMENT
Drafting of Sustainability Report Non-financial reporting
Dialogue with stakeholders and Reputation
Sustainability Committees Transparency and Risk Assessment

We play our pioneering role in the industry with strictness and accountability, especially encouraging and supporting our supply chain to respect and embrace the same long-term vision.

€40m
in investments

€59m
added and distributed value

46%
of suppliers are local

We operate within a context that is complex

The unforeseeable and extraordinary events of the last two years have had an appreciable economic and social impact.
At an industrial level, the increase in raw material and energy prices has greatly influenced all businesses worldwide.
Despite this, we continue to generate wealth in a
cost-effective way for the benefit of certain key stakeholders.


We invest in health, safety and the environment

We take great care in managing the supply chain

We consider the supply chain to be of strategic importance to ensure our product meets the high standards of compliance: in selecting and managing suppliers, we thus apply measures and procedures aimed at ensuring respect for the sustainability, quality and safety policies we have adopted.

1,399

Total
suppliers

128

Priority
suppliers
+3 vs. FY 2021

86

core

42

super
core

In Fiscal Year 2022, we continued awareness-raising among our suppliers regarding our environmental sustainability model, expanding the categories of suppliers involved in calculating CO2 emissions and associated offsetting, through the
well-established practice of purchasing shares in offsetting projects.

Between 2020 and 2022

46 Audit

39%

with external auditors

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We feel a great responsibility towards our people, putting Safety First through the involvement of all our employees in accident monitoring and prevention initiatives.

+5.7%
growth in Company population

85.8%
employees with a permanent contract

+34.4%
hours of training provided vs. Fiscal Year 2021

We know the value of our human resources

People are the key to our success: it is only thanks to the commitment, professionalism and skills of our employees that we are able to create economic, social and environmental value for the business and its stakeholders.

FY 2021

616

FY 2022

651

FY 2022 vs. FY 2021

+ 5.7%

We have an ambitious target

Guaranteeing the safety of our employees is one of our main priorities. To reach the objective of zero accidents, we have implemented various preventive measures, monitoring procedures and training courses, aimed at improving safety conditions in the work environment and protecting worker well-being.

This commitment has enabled us to obtain the certification of our health and safety management system with the ISO 45001 standard, issued in September 2021 upon completion of our Migration Project from OHSAS 18001 certification.

We promote inclusion and equal opportunities

The UN Guiding Principles on Business and Human Rights (UNGPs) and the International Conventions of the UN and ILO (International Labour Organization) are key benchmarks for orientating our operations and governance towards the respect and promotion of human rights.

The predominant presence of male personnel reflects the general trend in our sector, but there is a consistent commitment to ensuring equal opportunities for all and maximum inclusivity within the Company.

FY 2021 FY 2022 TOTAL
Women employees 63 116 + 84%

28,703

hours of training provided


72%

of which to new hires

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We carry on strong Stakeholder Engagement activities to raise awareness on sustainability and create a shared culture among all our stakeholders.

6
International Sustainability Symposia

€124,000
Donations and contributions

36
Scholarships awarded

We promote awareness

Since 2014, we have promoted and fostered robust stakeholder engagement activities aimed at raising awareness and encouraging dialogue and cross-fertilisation on sustainability topics among international experts from various business sectors. The organisation and the promotion of such events facilitate engagement from stakeholders, creating awareness of sustainability and paving the way for a common culture.

International Symposia

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 Decarbonisation.
Venice, March 2018

5th edition

Climate HOW: How to Engage Society and Deploy Decarbonisation.
Venice, February 2019

6th edition

Greenwashing and Sustainability: A growing trend that needs to be addressed.
Venice, October 2021

We give to the community

We support local initiatives

We participate in the Urban Re-Generation Project, promoted by Confindustria Umbria with financial support from the Fondazione Cassa di Risparmio di Terni e Narni. The project involves numerous companies from the Terni region and its aim is to enhance the local region.

We have awarded 36 scholarships:
- 15 to the most deserving students residing in the municipality of Narni,
- 21 to the children of employees.

There were 5 training internships:
- 3 internships involving work-school programmes at the Istituto Tecnico Tecnologico in Terni,
- 1 curricular internship at the ITS Umbria (Technological Innovation and Development),
- 1 internship involving newly graduated staff.

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We want to continue operating with the utmost transparency, certifying every step of our path and possibly enhancing a 13-year long performance of Carbon Neutrality.

42,461 tons of CO2
compensated in Fiscal Year 2022

8,207 TOE of energy
saved thanks to the cogeneration and trigeneration plant

49% of waste allocated for recovery

How we manage
climate-change

Alcantara was one of the first industrial companies in the world, and the first in Italy, to achieve the status of Carbon Neutral (2009), obtaining certification from TÜV SÜD, an authoritative independent international certification body.

Every year, we measure and minimise the carbon dioxide emissions attributable to our business activities and product, from the beginning of the production process (raw materials included) to the end of the product’s useful life, offsetting the residual emissions (which cannot be eliminated using the technology currently available) and offering our clients a Carbon Neutral product, certified to PAS 2060.

Main Environmental Achievements (FY 2022)

ENERGY

8,207 TOE of energy saved thanks to the cogeneration and trigeneration plants

EMISSIONS

15,272 tons of CO2 avoided thanks to our cogeneration and trigeneration plants

WASTE

49% of waste allocated for recovery

WATER CONSUMPTION

419,000 m3 of industrial water recovered

Environmental certifications

Certification of the Environmental Management System (EMS) with the UNI EN ISO 14001 standard
(from 2000)

Certified Carbon Neutral
(since 2009)

Energy certification with ISO 50001
(since 2017)


Solar Energy for electric transport

In March 2022, we completed the installation of a 114-kW photovoltaic plant at the headquarters in Milan, to be used primarily for powering electric car recharging stations, in light of the gradual renewal of the Company’s vehicle fleet, in a shift towards electric and hybrid cars.


How we offset our residual emissions

To offset our residual CO2, we support Certified and Verified Offsetting Projects by a third party, aimed at generating energy from renewable sources in the world's poor, disadvantaged or underdeveloped regions. Within this community, we spread a culture of sustainability awareness, improving social conditions for local people.

PROJECT NAME TYPE STANDARD COUNTRY SHARES
Koru Wind Power Plant Wind power GS VER Turkey 5,000
Charanka in Gujarat Solar Power Plant Solar VCS India 5,481
Xinjiang A’letai Hua’ning Hydropower Hydroelectric CDM China 25,896
Bujagali Hydropower Hydroelectric CDM Uganda 5,900
Ulubat Hydroeletric Hydroelectric VCS Turkey 184

42,461
tons of CO2
offset

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We have accelerated our serious path towards special versions of our material mated with increasing amounts of bio-based polymers and post-consumer, certified, recycled polyester *.

10.5%
of polyester in use is partially biobased PET

Recycled Claim Standard certification
for specific product categories

23% of sales
are of the water-based product

We develop our production processes

We take a responsible approach to production to ensure product quality and consumer safety.

We have successfully adopted various proprietary technologies developed to reduce the environmental impact upstream and downstream of the manufacturing process, without compromising on performance, including:
• the use of innovative raw materials,
advanced dyeing techniques, to cut water consumption and reuse part of the wastewater.

*The actual content of partially bio-based polyester and/or recycled polyester is indicated in the technical specifications of each product and is documented by internal evidences.

Product certifications

valid for individual brands/families

Oeko-Tex Standard 100 (maintained since 1995)

Certified by ICEA
ICEA-TX-2492

IMO MED (marine) as per EU directives 2002/75/CE and 96/98/CE (until 2025)

Certification for CPD construction products as per EU Directive 89/106/EC

We create sustainable innovation

In line with the sustainability and circular economy plans prepared, we are concentrating on new versions of our product, made with an ever greater bio-based and recycled polymer content, with the aim of progressively increasing their use while also reducing the consumption of polymers derived from fossil fuels.

Partially bio-based polymers

We use a polyester polymer made with ethylene glycol derived from biomass.

Recycled post-consumer polymers

We pay extreme attention to use recycled polyester produced in Europe, from post-consumer scraps, recycled through a mechanical process, being traceable and certified.

The development of complex manufacturing

The new Complex Manufacturing department in Nera Montoro is able to develop extreme customisations, combining complex technologies to provide the customer with the upholstery-ready finished product.

The new unit is characterised by:
- the use of advanced technologies,
- an increase in prototyping to provide support to developing or already industrialised projects.

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