SUSTAINABILITYREPORT

Fiscal Year:
1 April 2019
31 March 2020

11th edition

Abstract from the Chairman’s Letter to Stakeholders
included in Alcantara S.p.A.’s Sustainability Report 2020

Photo Credits: Giovanni Gastel

Dear Stakeholders,

on the occasion of the 11th edition of our Sustainability Report, we wish to underline that this document and all the certifications we achieve each year represent evidence to the market of our commitment to transparency in opposition to the widespread of ‘greenwashing’ by unscrupulous companies, that take advantage of the lack of information on sustainability.

Alcantara has been the first Italian company - and among the very first in the world - to be certified Carbon Neutral continuously for the past eleven years by TÜV SÜD, playing a pioneering role in sustainability since 2009.

Among many key elements of Alcantara’s commitment to all stakeholders, that you can find in this pocket version of the Sustainability Report, we would like to highlight the following:

  • Fiscal Year 2020 marks the 11th Anniversary of our Carbon Neutrality Status and the publishing of the 11th edition of our Sustainability Report;
  • we are maximizing progressively the use of bio-based raw materials (that are not food-chain antagonists) in our production process. The Company portfolio also includes special version of material made with increasing amounts of recycled raw materials;
  • we updated our 2021-2024 Sustainability Plan with the aim to renew and reconfirm the main sustainability goals of Alcantara;
  • we are further strengthening our responsible procurement policies throughout our supply chain, getting additional suppliers involved in the measurement and neutralization of CO2 emissions, through offset projects supported by the United Nations;
  • we joined additional UN - patronized offset projects to spread the use of renewable energy sources in the poorest and most disadvantaged areas of the world;
  • we joined once again the Carbon Disclosure Project (CDP), with the aim of continuing to measure and report our CO2 emissions;
  • we are carrying on strong stakeholder engagement activity, which is clearly testified by the organization of five editions of the International Symposia on Sustainability, which represent an important occasion to raise awareness, encourage dialogue among experts in different business sectors and cross-fertilization in issues of decarbonization and climate change.

Firmly believing sustainability is a necessary factor that is consistent with our long-term objective of increasing the economic and financial value of the Company, this 11th Sustainability Report underlines what we do and what our future plans are, and highlights how much sustainability remains a core value in our corporate culture, an important growth driver and a spur to developing our business strategy.

As a goal for the future, in accordance with the EU climate and energy policy framework, Alcantara activated a long-term decarbonization plan which aims to reduce CO2 unitary emissions by over 50% within 2030 and by over 90% within 2050, reducing the Company’s offsetting shares. This decarbonization pathway will be possible through four lines of intervention: circular economy - that will lead us to recycle and reuse end-of-lifecycle products, increase of energy efficiency, use of renewable energy and renewable fuels, and sustainable transportation for our raw materials, our product and our employees.

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

SUSTAINABLE MANUFACTURING

Alcantara S.p.A. has been continuously fighting against climate change for the past eleven years. In fact, it was the first Italian Company, and among the few in the world to achieve Carbon Neutrality status in 2009.
Alcantara S.p.A. also continues to pursue its path of sustainability with one of its priority objectives being the use of sustainable raw materials. The Company portfolio includes special versions of its material mated with increasing amounts of recycled raw materials and bio-based polymers. As a goal for the future Alcantara S.p.A. is also involved in research projects that will lead the Company to maximize the recycling and reuse of end-of-lifecycle products.

UNITED NATIONS GLOBAL COMPACT

In FY 2020, 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 third 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.

2021 - 2024 SUSTAINABILITY PLAN

In FY 2020, the Sustainability Plan of Alcantara S.p.A. has been updated with the the aim to renew and reconfirm the main sustainability goals of the Company in line with the 17 Sustainable Development Goals (SDGs). The purpose of this document is to illustrate the strategic guidelines, actions and 24 specific objectives in the four areas of sustainability to be achieved in the medium term (2021-2024) and it is included in the Sustainability Report of Alcantara S.p.A.

Planet
Environmental
Sustainability
Reduction of Envirornmental Impact of Product Reduction of Environmental Impact of Process
CARBON NEUTRALITY
Water Footprint Reduction of Energy Consumption
Circular Economic Development
People
Social
Sustainability
Occupational Health and Safety Corporate Citizenship
Promotion of Art and Culture
Training of suppliers
Alcantara® as a Sustainable Brand Increase in Sustainability Training
Increase in Youth Employment
International Projects with Social Impact
Prosperity
Economic
Sustainability
Improved Sustainability in the Supply Chain Increased Carbon Neutrality of Suppliers
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

In addition to this, Alcantara S.p.A. activated a long-term decarbonization plan which aims to reduce CO2 unitary emissions, before compensation, by over 50% within 2030 and by over 90% within 2050, reducing the Company’s offsetting shares. This decarbonization pathway will be possible through four lines of intervention: circular economy, increase of energy efficiency, use of renewable energy and renewable fuels, sustainable transportation.

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

INVESTMENTS & INVESTMENT PLAN

In FY 2020, Alcantara S.p.A. made investments for the total amount of almost €103 million, of which about €5 million was devoted to an environmental improvement project, and almost €3 million towards the protection of health, safety and the environment.

FY 2020

Total investments

Almost €103 M

3 M

Health, safety
and environment

78%

devoted to
HEALTH &
SAFETY

22%

devoted to
ENVIRONMENT

5 M

New environment
improvement project

For FY 2021, Alcantara S.p.A. forecasts investments of €33 million.
Of these, 71.2% is allocated to processes on sustainable innovation, and 23% to health, safety and environmental activities.

33 M

FY 2021 TOTAL
INVESTMENTS
(FORECAST)

71.2%

PROCESSES on
sustainable
innovation

23%

HEALvH, SAFETY
& ENVIRONMENT

5.5%

OTHERS

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 2020 suppliers' classification

1,683

total
suppliers

123

priority
suppliers

82

core

41

super
core

Specifically, in the fight against climate change, selected suppliers are involved in the carbon footprint neutralization towards zero CO2 emissions balance, for products and services offered to Alcantara S.p.A.
During FY 2020, the Company continued to raise the supply chain’s awareness of its environmental sustainability model, achieving the expansion of the categories of suppliers involved in the calculation of CO2 emissions and related offsetting, through the consolidated practice of acquiring offsetting projects.

GROWTH IN INTERNATIONAL MARKETS

automotive

consumer
electronics

fashion &
accessories

interiors,
contract,
marine & aviation

fy 2020 total sales

more about economic sustainability

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SOCIAL
SUSTAINABILITY

MEASURES TO PREVENT AND COPE WITH COVID-19

Alcantara S.p.A. has adopted numerous precautionary and organisational measures to fight the spread of the Covid-19 outbreak, equipping itself with tools and practices in compliance with the protocols and guidelines of national, regional and health authorities, in accordance with the application of the National Protocol, signed by the Government and Social Partners, both at the HQ and the production plant.

Strict security measures, such as PPE - personnel protective equipment, body temperature measurement with thermal scanners, and the use of the serological tests, have been adopted in order to guarantee the security and health of Alcantara S.p.A.’s employees.

HEALTH & SAFETY

Five years of relevant certification for the health and safety management system
in compliance with OHSAS 18001 (2015 to 2020).

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

INTERNATIONAL OFFSET PROJECTS

In FY 2020, Alcantara S.p.A., in order to offset residual generated emissions amounting to the equivalent of 35,683 tons of CO2, which were not possible to eliminate in any other way based on current state of the art technology, underpinned an additional three international offset projects, all supported by the United Nations and with a strong social meaning.

2,000

tons of CO2 eq.

stoves in
BANGLADESH

2,000

tons of CO2 eq.

wind in
MAURITANIA

31,683

tons of CO2 eq.

cogeneration in
SOUTH KOREA

Total 35,683

tons of CO2 eq.

more about social sustainability

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ENVIRONMENTAL
SUSTAINABILITY

CARBON NEUTRALITY

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

=

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

measuring

reducing

offsetting

11th anniversary of carbon neutrality*

*Certified each year by TÜV SÜD.

WASTE MANAGEMENT

More than 55% of waste is allocated for recovery through recycling and reuse.
The production scraps and by-products, which cannot be reused in the process, are recovered and marketed for reuse in other industrial processes, replacing virgin raw materials to achieve a circular economy.

More than 55%

recovery

recycling

reuse

ENERGY CERTIFICATION ISO 50001

In FY 2020, Alcantara S.p.A. obtained for the fourth year in a row the ISO 50001 Energy Management Systems certification.

At the Alcantara S.p.A. production plant, the Cogeneration plant, that operates the supply of electricity and steam, has increased the volume of self generated electricity.
Futhermore, the Trigeneration plant has started operating and achieved the following energy and environmental results:

PHYTO-TREATMENT SYSTEM

In 2011 Alcantara S.p.A. installed inside its production plant a phyto-treatment plant, which is a natural waste water purification system that reproduces the self-purification principle typical of aquatic environments, using plants as a biological filters.
The operation of the phyto-treatment plant allows for better management of the water treatment plant and the possibility of recovering the sludge from the treatment itself, which is no longer sent to landfill, but intended for use in other industrial processes.

The leachate, or mixture of liquids from the discharge, no longer flows into the water treatment system as in an ordinary factory but acts as fertilizer for a plantation of over 2,500 selected shrubs.

2,500 selected shrubs

Leachate

The leachate is then consumed through this special plant system’s natural property of evapotranspiration. Fed solely by the waste water from the industrial process, the water treatment system then in return provides a sludge that can be reused in other industrial processes.

Discharge Leachate

Phyto-Treatment

Reusable Sludge

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