Sustainability Report

Continuity of Commitment

14th edition
Fiscal Year

1 April 2022
31 March 2023

Sustainability is a purpose that should be embraced on a global scale: there is no other way.

A message
from our
Chairman

Dear Stakeholders,

14 years have passed since Alcantara published its first Sustainability Report. Precisely in 2009, the company obtained the Carbon Neutrality certification for the very first time, compensating for the entire impact in terms of equivalent CO2 emissions through carbon credits deriving from certified and verified offsetting projects.

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Andrea Boragno
Chairman and CEO 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

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

  • 95 employees
Nera Montoro (Terni)

Production Site and Research & Development Centre

  • 554 employees
Milan

Headquarters

  • 95 employees
Nera Montoro (Terni)

Production Site and Research & Development Centre

  • 554 employees

Our sectors of
application

Automotive
Interiors,
Contract, Marine
& Aviation
Fashion &
Accessories
Consumer
Electronics
Carbon Neutral
since 2009
14
certified Sustainability Reports
prepared on voluntary basis

Our Distinctive
Approach to
Sustainability

It has been all about facts and scientific evidence, since day one: our Sustainability Reports and our Carbon Neutral status are certified each year by independent third-party bodies.

14 YEARS OF CARBON NEUTRALITY

We have been pioneering in the Sustainability field, achieving Carbon Neutral status, certified by TÜV SÜD back in 2009*.

*Carbon Neutrality certification is based on offsetting of greenhouse gas emissions through carbon credits deriving from certified and verified offsetting projects.

SUPPORT FOR THE UN GLOBAL COMPACT CONFIRMED FOR THE 6th YEAR IN A ROW

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).

An overview of
our 2022/2025
Sustainability Plan

4 pillars and 23 specific targets to set our sustainability goals and 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
Corporation
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
Management
Sustainability
Governance
Preparation
of a
Sustainability
Plan
Non-Financial
Reporting
Stakeholder
Engagement
& Reputation
Sustainability
Guidance
Committee
Transparency
and Risk
Assessment

Looking
Forward to ...

Optimising and improving
presence in sustainability
indices (ESG) and KPI
monitoring

Adopting the new GRI standards
for reporting on non-financial
information

Continuing the reporting
for the Global Compact

Promoting an institutional
communication campaign
focused on sustainability

Involving our external
stakeholders to create
a shared culture and
increase awareness on
sustainability topics

Assessing the ESG impact
risks on medium- to
long-term business and
integrate various analyses
into the Enterprise Risk
Management process

Optimising and improving
presence in sustainability
indices (ESG) and KPI
monitoring

Adopting the new GRI standards
for reporting on non-financial
information

Continuing the reporting
for the Global Compact

Promoting an institutional
communication campaign
focused on sustainability

Involving our external
stakeholders to create
a shared culture and
increase awareness on
sustainability topics

Assessing the ESG impact
risks on medium- to
long-term business and
integrate various analyses
into the Enterprise Risk
Management process

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€59 million
distributed added value
49%
local suppliers
€23 million
investments

Coping with a tough
Global Context

The ongoing geopolitical tensions and the consequent rise of inflation deeply impacted the costs of energy and raw materials, which are essential to run our business. Despite having to face an overall decrease in our ability to create added value and invest, 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 a series of measures and procedures, in order to ensure compliance with our own sustainability, quality and safety policies.

CSR SUPPLIER ASSESSMENT

56 audits in the last 3 fiscal years
(34% of which with third-party auditors)

Accredited suppliers: 53
Super-core suppliers: 32
Core suppliers: 21

6 new suppliers assessed in the Fiscal Year 2023
(raw materials/packaging area)

Total Priority Suppliers: 127
Super-core suppliers: 42
Core suppliers: 85

Turnover breakdown

BY GEOGRAPHIC
AREA
12% Others
18% China
11% USA
59% EU

Investment breakdown

Environment: €3.6 mln
Health & Safety: €2.4 mln

€6.0 mln
for HEALTH,
SAFETY &
ENVIRONMENT
40% Health
& Safety
6% Soil
Pollution
37% Water
Pollution
17% Air
Pollution

In the Fiscal Year 2023, a €40,000,000 sustainability loan was provided by Intesa Sanpaolo, following the introduction of procurement policies integrating environmental criteria and the development of employee welfare programs.

Looking
Forward to ...

Promoting good sustainability and engagement practices along the supply chain

Continuing sustainable innovation of the product and the production process

Expanding the cogeneration plant with a target to reduce environmental impact

Continuing investments for production capacity increase, coherently with sustainability targets

Preparing a transparent disclosure on Alcantara’s approach to taxation for communication in the Sustainability Report

Promoting good sustainability and engagement practices along the supply chain

Continuing sustainable innovation of the product and the production process

Expanding the cogeneration plant with a target to reduce environmental impact

Continuing investments for production capacity increase, coherently with sustainability targets

Preparing a transparent disclosure on Alcantara’s approach to taxation for communication in the Sustainability Report

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649
average employees in the Fiscal Year 2023
+67%
growth in Company population vs. Fiscal Year 2013
94.6%
are permanent employees +1.8% vs. Fiscal Year 2022

People are the
Key to our Success

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

THE 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 result obtained
  • Implementation of remuneration policies that ensure internal fairness, competitiveness with the market and recognition of achievements
  • Teamwork and understanding of business processes

Zero episodes of discrimination or violations of human rights

across all areas of operation: this is the outcome of our commitment to personnel, and our respect of human rights and sustainability issues.

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, 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 colllective labour agreement, in order to promote and increase the well-being of employees.

1.08% of revenues devoted to worker’s benefit in the Fiscal Year 2023

THE VALUE OF TRAINING

We believe that personnel training is fundamental to promote growth and personal fulfilment of employees.

28,438 training hours provided in the Fiscal Year 2023 (79% of which for new hires)

Looking
Forward to ...

Training workers on ESG topics

Training new hires on the corporate commitment to sustainability

Creating new jobs

Identifying and selecting suitable channels for collecting innovative sustainability ideas from employees

Training workers on ESG topics

Training new hires on the corporate commitment to sustainability

Creating new jobs

Identifying and selecting suitable channels for collecting innovative sustainability ideas from employees

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13
events & co-branding initiatives
36
scholarships awarded in the Fiscal Year 2023
€114,000
in donations and contributions
to local communities

Events and
Co-branding Activities

In line with our 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.
Furthermore, ever since the beginning of its history, Alcantara has collaborated positively in co-branding activities with leading global luxury brands 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 9 years, the most deserving students in Narni have been awarded 122 scholarships (15 in the Fiscal Year 2023), while children of employees have received 207 scholarships (21 in the Fiscal Year 2023).

‘Premio senza barriere’

in the Fiscal Year 2023, 8 awards were disbursed to parents of children with disabilities, totalling nearly €23,000 (57 families have received the award since 2015).

Training for schools

5 curricular internships were activated at the I.T.S. Umbria and 4 school-to-work programmes at the Istituto Tecnico Tecnologico in Terni, totalling 9 internships, while 1 was activated in the Fiscal Year 2022 and ended in the Fiscal Year 2023.

Sharing events

having returned to a 'new normal' , we celebrated Christmas with our Chairman. 43 employees who have reached 25 years of service in the Fiscal Year 2023 were awarded a loyalty bonus (€1,050 worth of fuel vouchers).

Corporate nursery

since 2012, 35 children of employees have been enrolled (3 in the Fiscal Year 2023), and nearly €30,000 have been devoted for 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.

Looking
Forward to ...

Continuing to develop activities on a global scale to raise awareness on Alcantara as a brand committed to sustainability

Organising events related to culture, art and beauty

Joining national and international sustainability initiatives

Continuing to develop activities on a global scale to raise awareness on Alcantara as a brand committed to sustainability

Organising events related to culture, art and beauty

Joining national and international sustainability initiatives

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58,083 t CO2
compensated in the Fiscal Year 2023
6,657 TOE*
avoided in the Calendar Year 2022 thanks to the cogeneration and trigeneration plants
*Ton of Oil Equivalent.
45%
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 mitigate and reduce the impact of our production processes on the environment through:

  • improvement of environmental efficiency
  • trainings and briefings on the most urgent environmental issues
  • raising awareness outside the Company

CARBON NEUTRALITY

Since 2009, we 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 three initiatives from which we acquired carbon credits in the Fiscal Year 2023 were related to the production of electricity from wind power and hydroelectric sources, offsetting a total of 58,083 tons* of CO2 equivalent.
*Ton = metric ton.

PROJECTAsahan 1 HydroelectricHuaneng Liaoning FuxinBa Thuoc 2 Hydropower
TYPEHydroWindHydro
STANDARDCDMCDMCDM
COUNTRYIndonesiaChinaVietnam
QUOTAS10,65711,72429,703

Main Environmental
Performances

Energy

6,657 TOE*
saved thanks to our cogeneration and trigeneration plants
*Calendar Year 2022

Emissions

15,662 t CO2*
avoided thanks to our cogeneration and trigeneration plants
*Calendar Year 2022

Industrial Water

264,176 m3
of water recovered

Waste

45% of waste
allocated for recovery

Our Environmental
Certifications

Certification of the Environmental Management System (EMS)
since 2000, in accordance with UNI EN ISO 14001

Certified Carbon Neutrality
to PAS 2060 since 2009

ISO 50001 energy certification
since 2017

In the Fiscal Year 2023, the photovoltaic system at the Milan headquarters produced 105 MWh of electricity (98% for self-consumption and 2% fed into the grid), mainly devoted to power electric and recharging stations, in light of the gradual renewal of the Company’s vehicle fleet.

Looking
Forward to ...

Confirming Carbon Neutral status

Defining absolute and intensity decarbonisation targets

Continuing with the annual water footprint analysis

Identifying areas for improvement in the production process to reduce water consumption

Defining a procedure for assessing the investments made in terms of the impact on energy efficiency and carbon footprint

Renewing ISO 50001 certification

Assessing the possibility of using renewable fuels

Confirming Carbon Neutral status

Defining absolute and intensity decarbonisation targets

Continuing with the annual water footprint analysis

Identifying areas for improvement in the production process to reduce water consumption

Defining a procedure for assessing the investments made in terms of the impact on energy efficiency and carbon footprint

Renewing ISO 50001 certification

Assessing the possibility of using renewable fuels

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Recycled Claim
Standard
certification for specific product categories
94%
fashion products produced with partially bio-based polyester
Over 4%
of turnover invested in R&D

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

Oeko-Tex Standard 100

Recycled Claim Standard

IMO MED

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

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.

Presented each year, this is a collection of complex solutions aimed at diversifying products, at steering the various levels of positioning, and at developing the use of established technologies, either by adopting new and cutting-edge processes or by combining Alcantara with innovative or unique materials.

The 2022 edition is divided into three books – Cosmic, Biomorph and Virtual – showing how different combinations of colours and technologies can generate infinite opportunities to personalise the material.

A Sustainable Circular
Economy Approach

PRODUCTION PROCESS

Our R&D focused on partially replacing raw materials derived from oil, in order to cut more CO2 emissions, enabling us to create new products containing increasing amounts of partially bio-based polymers and recycled polyesters. In the Fiscal Year 2023, the percentage of polymers used in spinning equalled to 17.5% of the total production of partially bio-based PET and 3.6% of mechanically recycled PET, and we aim to further increase such figures in the future.

END OF LIFE

In collaboration with GR3N, an innovative start-up with the mission to eliminate plastic waste issues on a global scale, we have developed a special technology allowing to fully recover the polyester component of Alcantara.

Looking
Forward to ...

Increasing the use of post-consumption recycled polyester and of textile backing containing recycled raw materials

Continuing the development and industrialisation of the water-based process and increasing the associated production volumes

Identifying new technologies for recycling the product at end of life

Expanding our partnerships with Italian and International Universities to develop sustainable projects and train new generations

Increasing the use of post-consumption recycled polyester and of textile backing containing recycled raw materials

Continuing the development and industrialisation of the water-based process and increasing the associated production volumes

Identifying new technologies for recycling the product at end of life

Expanding our partnerships with Italian and International Universities to develop sustainable projects and train new generations

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