(HONG KONG STOCK CODE: 1913)

2 0 20 S O C I A L R E S P O N S I B I L I T Y R E P O R T

TA B L E O F C O N T E N T S
LETTER TO STAKEHOLDERS

3

1. THE PRADA GROUP

5

1.1
1.2
1.3
1.4
1.5

History
Creativity and excellence
Value chain
Customer centricity
2020 Highlights

6
9
11
12
14

2. INTEGRITY ANDRESPONSIBLE MANAGEMENT

18

2.1
		
2.2
2.3
2.4
2.5
2.6
2.7
2.8

19
22
23
25
27
28
29
31

Governance model and institutional
compliance
Risk management
Group’s ethical values
Trademark protection
Product responsibility
Ties with the community
Cooperative compliance
Sustainable finance

3. E N V I R O N M E N T

32

3.1
3.2
		
3.3
3.4

33

Fashion Pact
Optimization of processes andconsumption of raw materials
Climate action
Preservation of the territory

35
42
46

4. H U M A N C A P I T A L

48

4.1
4.2
4.3
4.4
4.5
4.6
4.7
		

49
51
54
55
57
60

Workforce
Diversity and equal opportunity
Diversity and Inclusion Advisory Council
Prada Academy and skills development
Talent attraction and retention
Workers’ Health and Safety
Group’s Qualified Vendor List Procedureand Supply Chain Management

5. CULTURAL INITIATIVES
5.1
5.2
5.3
5.4

Fondazione Prada
Shaping a Sustainable Multilateralism
UNESCO
Prada Mode

6. NOTES ON THE METHODOLOGY
6.1
6.2

63

66
67
70
71
74

76

The material aspects identification
Reporting process

7780

7. GRI CONTENT INDEX FOR"IN ACCORDANCE" CORE OPTION

82

Basically, sustainability is a matter of ethics:
therefore we have to face it with humility, while
always reminding ourselves that it is an end, and nota means to enter tain our illusor y image.
In other words, we cer tainly need to evaluate what
has been achieved, but we need above all to study
what has not been done yet and how to accomplish
that.
Nowadays this task has been made easier by aheightened awareness of the significance andpurpose of a sustainable world, with the false
conflict between sustainability and economic
efficiency no longer relevant.
Economic efficiency is the ar t of being able tointerpret the demands of the young generations,which now require new ideas for striking a balance
between the necessities and rights of a rapidly
growing world population and natural resources thatcan no longer be wasted.

Many years ago, when we inPrada began to talk aboutsustainability, it was still an
uncommon word even as many
people were talking about
and dedicating themselves tonumerous related issues.
Indeed, in "Meditations",
Marcus Aurelius clearly

The Repor t on the activities of the past year
is fundamental for evaluating our work in theenvironmental, social, humanitarian areas,essentially on justice, and it does not end with itself
but rather represents the basis of a project that willcontinue to develop in the future.
I conclude my thoughts by recalling the teachings ofConfucius, which begin with self-evaluation, evoke
moral teachings instilled by tradition and tend tosatisf y collective needs instead of individual ones,
to achieve a harmonious relationship with Nature.
They are the response to disorientating doubts
because they dissolve the discord, the confusedcomplexity of this era in which we are too of ten
incapable of connecting with others, with reality,with Nature; in a frank, sensible, humane, sincere,
firm and courageous manner, as Confucius taught
his disciples, recommending always to preserve
coherence through study.

expresses the moral
obligation to treat O thers andNature with respect, as othergreat men had before him.

Carlo Mazzi
Chairman of Prada S.p.A.
Milan, April 16, 2021

We focused on the development of initiatives
capable of best representing Prada's values andthose with which I can personally relate in my desire
to accompany Prada into a decade decisive for its
sustainable growth.
The recent events have given cause for deepreflection, benefiting the pursuit of solutions that
demonstrate our continuous engagement and theintention to respond actively to external stimuli,
while remaining consistent with our identity.

The year 2020, undoubtedly
full of challenges,
coincided with my firstyear as the Prada Group's
Head of Corporate Social
Responsibility, at a historicaltime in which sustainability
is increasingly assuming
strategic relevance for us andfor business in general.
I have lived these months
with the sense of having animpor tant oppor tunity,
which I seized by moving
forward with the projects
already underway and star tingup new ones.

This has led, among other things, to theidentification of a key officer in Nor th America
dedicated to diversity and inclusion, to assist
the Diversity and Inclusion Advisor y Council, forthe planning of strategies and programs to help
ensure the representation of diverse cultures andperspectives at all company levels. More and morecompanies are par ticipating in the debate overinclusion, and Prada intends to contribute with therole of activism that has always distinguished it. In
this spirit, we joined The Valuable 500, whose value
lies in the effor ts of a wide range of sectors involvedin changing the perception of disability in society
and in the workplace.
As par t of the promotion of culture, which has always
played a significant role in Prada's investments,
we have consolidated par tnerships with various
academic institutions and with UNESCO throughout
2020, sharing stimuli, ideas and new instrumentswith the young generations.
The Group's sustainability strategy also hinges
on the work we are carr ying out with the Fashion
Pact. Af ter years of investing in the construction,
refurbishment and efficiency of the industrial
facilities, as well as in photovoltaics and renewableenergy, we have ambitiously reaffirmed our
objectives and have star ted a process to measure ourcarbon footprint, necessar y for determining ways tomitigate and reduce our environmental impact.
Finally, we continue to explore materials derivingfrom alternative processes and sources.
The Prada Re-Nylon project is a prime example;
with its challenging goal to completely conver t
to regenerated nylon by the end of 2021, it
has accelerated the paradigm shif t needed forsustainable growth and that looks to the future withnew solutions.
Lorenzo Ber telli
G ro u p H e a d o f Co r p o r a t e So c i a l Re s p o n s i b i l i t y

1. THE PRADA GROUP
T h e Pr a da Grou p i s one of th e wor l d l eaders i n th e luxur y goods se ctor whe rei t op e r ate s w i th th e Pr a da, Mi u Mi u , Chu rc h’s and Car Sh oe br ands in the de sign,
p roduc t i o n a n d d i s tr i but i on of lu xur y h andbags , l eath er go ods, foot we ar, appare la nd a cce s so r i es . Th e Group al so oper ates i n th e eyewear and fr agr ance industr ie su nd e r s p e c i f i c l i cen s i n g agreement s s t i pulated wi th i ndustr y le ade rs, and withthe a cq u i s i t i o n o f Pa s t i ccer i a Marc h es i 1824, i t h as made it s e ntr y into the foodi ndu str y, w h ere i t i s p o si t i oned at th e h i gh es t l evel s of qualit y. Pr ada S.p.A. (the“Compa ny ” o r “ Pa ren t Company ” ), togeth er wi th i t s su bs i diar ie s (colle ct ive ly the“G rou p” ) , i s l i s te d o n the Hong Kong Stock Exc h ange (HKSE code : 1 91 3 ).
At D ecem b er 31, 2 0 2 0, th e G roup’s produc t s were sol d i n 7 0 countr ie s wor ldwide
throug h 633 Di rec tl y Oper ated Stores (DOS) and a sel ecte d ne t wor k of luxur yd e p a r tme n t s to res , i n d e pendent ret ai l ers and fr anc h i se s tore s.

1.1 H I S T O R Y
The Prada brand dates back to the beginning of the lastcentury. In 1913, Mario Prada opened a luxury store
in the Galleria Vittorio Emanuele II in Milan, selling
leather handbags, travelling trunks, beauty cases, luxury
accessories, jewels and ar ticles of value. Thanks to
its exclusively designed goods, handcrafted using finematerials and sophisticated techniques, Prada rapidly
acquires wide popularity across Europe to the point
that, in 1919, Prada became an official supplier to the
Italian Royal Family. Since then, Prada has been able
to display the House of Savoy coat of arms and knottedrope design on its trademark logo.
The Group saw a turning point in the developmentof its activities at the end of the Seventies, when
Miuccia Prada, Mario Prada’s granddaughter, launched apartnership with Tuscan businessman Patrizio Bertelli. Thispartnership combined creativity and business ideas laying
the foundations of the international expansion that wasto come. Patrizio Bertelli broke new ground in the luxury
goods sector, introducing a business model in which he kept
direct control over all processes, applying excellent quality
criteria across the entire production cycle.

Miuccia

Prada'screativetalentandavant-garde

approach attracted the attention of the global fashionindustry, while her ability to look at the world from an
unconventional vantage point allowed her not only toanticipate but, quite often, to set new trends.
In 1977, Patrizio Ber telli consolidated the production
resources that he had built up over the previous ten
years in the leather goods segment and obtained an
exclusive license from Miuccia Prada to produce anddistribute leather goods bearing the Prada brand name.
In the following years, the activities of the two families
were gradually brought together within a single Group.
In 1983, the Prada family opened a second store in theprestigious Via della Spiga in Milan, one of Europe’s
key shopping destinations. The new store showcased
the new brand image as it blended traditional elementswith a modern architectural setting: a revolution and atrue benchmark for luxury retail.
In response to the growing appreciation for Prada
designs, the women’s range was extended from leather
goods to include the first footwear collection in
1. THE PRADA GROUP

6

1979 and the first womenswear apparel collection as

firm, and then Prada completed the acquisition in 2007.

presented in Milan in 1988. At the same time, a process

The brand, specialized in high-end leather footwear, isof internationalization begins with the openings in New

a worldwide recognized symbol of top quality British

York and Madrid, followed by London, Paris and Tokyo.

tradition and sophisticated elegance.

In 1993, Prada made its debut in the men’s segment

In 2001, the Prada “Epicenter ” store, designed inwith its first men’s apparel and footwear collection. That

collaboration with Rem Koolhaas, opened on Broadway,same year, Miuccia Prada’s creative inspiration led to the

New York. This was the first store of the “Epicenters”

establishment of a new brand ― Miu Miu ― designed for

project whose purpose was to rethink the shopping

women who are trendy, sophisticated and par ticularly

concept with a new approach and to try out innovative

fashion-forward and aware of avant-garde. Miu Miuinteractions with customers. A second “Epicenter ” store

now offers women’s ready-to-wear, bags, accessories,

was opened in Aoyama, Tokyo, followed by a third, on

footwear, eyewear and fragrances.

Rodeo Drive, Beverly Hills in 2004. During the same year,

Also in 1993, alongside their entrepreneurial activity,
Miuccia Prada and Patrizio Ber telli created “Milano
Prada Ar te”, then become “Fondazione Ar te”, to develop
their interests in ar t and culture in general.
In 1997, inspired by his passion for spor ts, Patrizio
Ber telli created the “Prada Challenge for the America’s
Cup 2000” sailing team. Prada’s leisure products, withthe distinctive “Linea Rossa” (“red line”) logo, were also
launched in 1997.
In 1999, the prestigious Church’s brand, established in
1873 in Nor thampton, became par t of the Prada Group;
the investment was initially shared with a private equity
1. THE PRADA GROUP

Prada acquired control of Car Shoe, a historic Italianbrand renowned for its exclusive car-driving moccasins.
In 2003, Prada entered into a licensing agreement with
the Italian eyewear manufacturer Luxottica, a global
leader in the eyewear industry which currently produces
and distributes eyewear under the Prada and Miu Miu
brands. Also in 2003 a new par tnership was established
for the production of fragrances, which first release,
Amber, was launched in 2004.
In 2006, Miu Miu organized its first fashion show in
Paris to better characterize its own identity.
The first Prada Phone by LG was launched in March
2007, the world’s first touch screen cell phone.
7

The successful par tnership was renewed in 2008 and in2011 with two fur ther releases.
On June 24, 2011, Prada S.p.A. was successfully listedon the Main Board of the Hong Kong Stock Exchange.
Before any mandatory requirement, in 2013 the PradaGroup published its first Social Responsibility Repor t
to collect the initiatives under taken in the field ofenvironmental, social and governance sustainability ina single document.
In March 2014, Prada S.p.A. announced the acquisitionof control of the company Angelo Marchesi srl, historical
Milanese patisserie founded in 1824, thus marking theentry into the food segment.
In 2015, the Prada Group completed the acquisitionof the French Tannerie Mégisserie Hervy to fur therstrengthen its know-how along the entire production
chain. That same year, the Prada Group and Coty Inc.
launched the first Miu Miu fragrance.
The commercial development of the Marchesi brandb egan to t ake s h ape w ith th e openi n g o f th e f i rs t
patisserie in via Montenapoleone, Milan.
Also in 2015, the Group’s Social Responsibility Repor t
was prepared for the first time following the GRI (Global
Repor ting

Initiative)

standards,

considered

a

best

practice at an international level.

In 2018, besides the usual Milan and Paris fashionshows, the Group launched two major events for thepresentation of pre-collections: Miu Miu Croisière at
the Hotel Regina in Paris and the Prada Resor t in New

2016 featured impor tant manufacturing investments

York (in Shanghai in 2019).

all made following a sustainable industrial development

The same year, Miuccia Prada received the Outstanding

and respectful of the environment, leading to the

Achievement Award from the British Fashion Council

completion of a new leather production site and to thefor her extraordinary contribution to creativity and therenovation of various factories between Tuscany andglobal fashion industry.

Umbria, in Italy. The first construction phase of the
new logistics hub for finished products was completed
in Tuscany to end its second phase two years after.

In 2 0 1 9 , th e Di ve rs it y & I n c lu s io n Adv iso r y Cou n cil isestablished;assistedbyauthoritativeinternational

leading

personalities

academic

andofculturalIn 2017, a restyling plan of the Prada and Miu Miu stores

institutions, it will guide the Group on matters of social

was coupled with a broad program of pop-up events tosustainability. In October of the same year, the Prada

fur ther suppor t retail activities. Also in 2017, the PradaGroup obtained full control of the retail network throughGroup was admitted to the cooperative compliancethe acquisition of Fratelli Prada S.p.A., the long-standing

regime with the Italian Revenue Agency introduced withfranchisee of Prada monobrand stores in Milan.

Italian Law Decree 128 of 2015.

In December, Prada S.p.A. and L’Oréal announced theAlways in 2017, the Group organized in Milan the first

stipulation of a long-term licensing agreement, effective

event of the “Shaping a Future” cycle of conferences withfrom January 1, 2021, for the creation, development andthe aim of stimulating a debate on the most significant

distribution of Prada brand luxury cosmetic products.

changes taking place in contemporary society.
1. THE PRADA GROUP

8

In 2020, a year disrupted by the COVID-19 pandemic,

fashion industry, the team of designers and craftspeople

Raf Simons became the Creative Co-Director of Prada

keep the Group’s values and brand identities alive, yet

and other impor tant managers joined the team, withconstantly re-interpret them in a contemporary lighta view to fostering long-term growth regardless of the

without forsaking their unique concept.

uncer tainties arising from the public health emergency.

Retracing the history of the company, it becomes very

Lorenzo Ber telli also took on the role of Group Head ofclear how incursions into seemingly distant worlds, such

Corporate Social Responsibility to give fur ther impetus

as cinema, architecture, literature, spor t and ar t, find ato the integration of sustainability into the long-term

common ground in the creative processes. Creativity is

corporate strategy.

inexhaustibly linked to those special projects that over

In July Prada S.p.A. obtained “AEO Full” (Authorized
Economic Operator) certification from the Italian Customs
Agency, becoming one of very few taxpayers in Italy tohold simultaneously this qualification and par ticipate
in the Cooperative Compliance regime with the Italian
tax authority. It is wor th mentioning the sponsorship ofLuna Rossa and Prada Cup. In December, the preliminary
races of the 36 th America’s Cup - presented by Prada - got
underway and the challengers included the Luna Rossa
sailing team sponsored by Prada, which in February
2021 won the Prada Cup (i.e. the selection among thechallengers), and therefore the right to compete withthe defender of the prestigious sailing race.

time not only define images, fashion shows and store
settings, but also outline the collections that are joined
together by an extremely fluid relationship.
Fashion, fast and increasingly difficult to interpret,
requires a quick response to the prevailing cultural
trends. As times change, so should creativity that is areaction to the era in which we live.
In 2020, Raf Simons joined the Prada brand as co-creative
director, working in par tnership with Miuccia Prada withequal responsibilities for creative input and decisionmaking. This par tnership opened a new dialogue, a new
approach to the very definition of creative direction,and can be interpreted as a reaction to an epoch withfresh possibilities, permitting a different point of view

1.2 CREATIVIT Y AND EXCELLENCE

and approach to established methodologies.

Prada's defining asset, know-how, creates continuity

a willingness to push boundaries, to experiment, to takeand balance between creativity and discipline, tradition

oppor tunities to advance. If the notion of a par tnershipand technological progress, craftsmanship and industrial

is to work jointly, the result of that conversation may not

production. Guided by the style inspiration of Miuccia

only be product but also the propagation of a thought

Prada, universally recognized as a reference for the entire

and a culture. A pure vision of creativity, in which theInnovation is an inherent facet of the identity of Prada:

product is a vehicle of these concepts.
1. THE PRADA GROUP

9

Closeobservationandcuriosity about the world
are at the very origin of the
Prada Group's creativity
and modern outlook. In
society — and therefore
in fashion, which in many
ways reflects it — theonly constant is change.
The transformation andinnovation of conventions,
underlying all evolution,
have led us to interact withdifferent cultural spheres
both near and apparently
far, helping us capture
and anticipate the spirit of
the times. Today this is nolonger enough: we must be
the agents of change, withthe flexibility to translate
the demands of the market
and society into tangible
actions that guide us every
day in our business.

Miuccia Prada and Patrizio Ber telli101.3 V A L U E C H A I N
FashionShows

STYLE & DESIGNAND PRODUCT DEVELOPMENT

Buying Session(Retail)

COLLECTION
OF ORDERS
Showroom
Presentation

Sales Campaign(Wholesale)

SOURCING

Quality Control

DISTRIBUTION

Worker Safety

PRODUCTION

The success of the Group’s brands is based on the originalfrom architecture to communication and photography,

business model, which combines skilled craftsmanshipfrom store interior design to all the unique and special

with industrial manufacturing processes.

projects in which the Prada Group is involved.

This integration enables the Group to translate its
innovative fashion concepts into viable commercial

In 2020 the British Fashion Council selected Miuccia

products while retaining flexible capacity and technical

Prada as an Honoree at “Fashion Awards 2020” in thecontrol over know-how, quality standards and production

Creativity

costs.

Prada and Raf Simons were honored for promoting

category.

Creative

Co-Directors

Miuccia

positive change within the fashion industry, and for1.3.1 CREATIVITY

demonstrating the power of creativity and the impor tance

Creativity is at the hear t of the manufacturing process.

of communication with the first fashion show designed

Miuccia Prada has the talent to combine intellectual

together in September of the same year.

curiosity, the pursuit of new and unconventional ideas,
and cultural and social interests with a strong sense of

1.3.2 RAW MATERIAL PROCUREMENT AND INDUSTRIAL

fashion. This has made it possible to establish a genuine

PRODUCTION

design culture, based on method and discipline, which

Prada’s approach to manufacturing is based on two key

guides everyone who works in the creative process.

principles: the constant quest for innovation, ensuring
the continuous evolution of skills and exper tise, and aWith this unique approach Prada anticipates trends andvocation for craftsmanship, which is an essential asset

often influences them, while continually experimenting

for production and a unique distinction for every brand.

with new designs, fabrics and production techniques.
Experimentation and idea-sharing are the essential

Raw materials are an essential par t of product quality

components of the design process throughout theand are of primary impor tance for all the Prada Group’sGroup. The time spent at the drawing board and in thebrands. In many cases the fabrics and leather are madetesting room on design research and development is

especially for Prada, according to stringent technicalfundamental to formulating each collection so that theand style specifications that guarantee excellence andclothing, footwear and accessories complement eachhighlight the exclusive nature of the products. Rawother and create a well-defined image reflecting thematerials undergo strict quality controls by internalbrands.

inspectors and exper ts.

Prada’s flair and the strong appeal of its tradition and

The Prada Group’s products are manufactured in thequality standards continue to attract talented people

23 directly owned production sites (20 in Italy, 1 infrom all over the world who want to share the creative

England, 1 in France and 1 in Romania), in addition to aexperience. This results in teams involved at all stages ofwide network of contract manufacturers which undergo

the creative process: from fashion design to manufacture,strict controls and are supplied with internally maderaw materials, patterns and prototypes.

1. THE PRADA GROUP

11

This system, which enables close oversight of each steprenovation, is a true asset for the Group as it showcasesof the process and ensures high-quality workmanship,

the new collections and is the fulcrum of the omnichannelemphasizes the manufacturing excellence of each facility

strategy. The DOS serve as more than a primary sales

and guarantees significant flexibility in the organization

function as they are also an impor tant means ofof production.

communication: they are the true ambassadors of theMoreover, the signing of the Code of Ethics of Pradabrand, conveying the image of each brand consistently

represents the essential prerequisite for collaborating

and categorically. The DOS are integrated with thewith the Group, both for raw materials and manufacturing

E-commerce strategy and allow the Group to monitor in

suppliers.

real time the sales per formance of the various markets
for each brand and product category.

Production employees have been working for the PradaGroup for an average of more than 10 years; this ensures

The wholesale channel (depar tment stores, multi-brandan extremely high level of specialization, in-depth

stores and franchisees) provides additional venues

knowledge, harmony with the Group’s unique concept,

selected on the basis of their prestigious locationand the seamless transmission of production techniquesand enables direct, immediate comparison with theand core values to younger generations.

competition.
The Group’s recent significant developments in the

The Group employs considerable resources to ensure

digital world have allowed to consolidate impor tantexcellence in the quality of its raw materials andpar tnerships, including top online retailers (“e-tailers”).

processing of its products, and in such manner also
protects the health and safety of the employees and

The retail channel generates 89% of the Prada Group’s

consumers. Each industrial division employs techniciansconsolidated sales while the wholesale channel accounts

whose responsibility is to ensure the achievement offor the remaining 11%.

these goals through strict controls over incoming andoutgoing materials and daily visits to external production

1.4 C U S T O M E R C E N T R I C I T Y

sites. Product and process controls not only ensure thatstandards are being met, but also contribute to ongoing

Consistently with the Prada Group's growth strategy,

improvement.

the Retail Innovation & E-commerce Depar tment, set up
in 2019 and repor ting to the Marketing management,

The Industrial Compliance Office ensures that thehas as its primary objectives to implement the overall

production and distribution of its products worldwide

customer strategy, to develop the experience and thealways comply with applicable laws. The Office also has

omnichannel approach, to give a new value to the retailto grant the compliance with all current legislation, andexperience and, finally, to accelerate the Group’s digitalthe development of standards and procedures that aretransformation.

often more stringent than those required by law. The
ultimate goal is to be proactive with respect to the entire

Digitalsystem, made up of employees, clients, manufacturers

development of the E-commerce channel, accelerated

and the outside environment as a whole.

fur ther in 2020, in par t because of the changed

innovation

and,

more

specifically,theconsumer purchasing behavior due to the COVID-19
1.3.3 DISTRIBUTION

healthOver the years, the Group has expanded its distribution

therefore

network to 633 Directly Operated Stores (“DOS”) in theimplementation of the Group's omnichannel strategy,

most prestigious locations of the major international

requiring an additional transformative and investment

shopping

image,

boost: the consequent expansion of the Group's digital

heritage and exclusivity of each brand. This extensive

footprint was possible both through the opening up

network,of new E-commerce markets of strategic interest anddestinations,thesubject

consistent
of

with

continuous

theresearchandemergency.
becomeThe

E-commerce

even

more

channelrelevant

for

has
the

through the optimization of other digital channels.
1. THE PRADA GROUP

12

At the same time, the global re-styling of the prada.

introduced in 2019, which has become an integrated part ofcom site, aligned with the Brand’s visual identity, thethe company metric, with a view to constant improvement inaddition of new features and services to the customer,

the customer experience. The already extensive narrative

the refinement of the technological architecture, and thehas been fur ther enriched especially in terms of the value

implementation of an integrated digital communication

proposal of the brands, moving towards a storytelling

strategy - including full use of social media channels –aimed at a higher understanding of the heritage of thehave all contributed to significantly improving the digitalbrands themselves and not just limited to the product.

experience and, consequently, the business result.
Finally, the Retail Innovation & E-Commerce Depar tment
The global pandemic has fur ther enhanced the centrality

launched a global reorganization of the work teams,of the customer, with whom it was essential to maintainboth central and local, which during the year led to thean active dialogue. In this regard, the role of the retailacquisition of new skills essential for the development

staff was crucial; through both traditional and new

and implementation of the identified strategic guidelines.

digital tools, they worked tirelessly to maintain a highlevel of engagement with their customers during a year
heavily impacted by the physical distancing of people
from stores and new purchasing dynamics.
Furthermore, during 2020, the continuous attention given
to the value of the retail experience included the adoption
on a global scale of the Net Promoter Score (NPS) system,
1. THE PRADA GROUP

13

1.5 2 0 2 0 H I G H L I G H T S€2.4
Billion12,858
Employees

62%
Women

633
DOS

2020
Revenues

at December 31,
2020

at December 31,
2020

at December 31,
2020€2,256
Million*€122 Million
Investments

23
Industrial sites€17 Million
Investments

Economic value
distributed
to stakeholders
in 2020

in 2020

at December 31,
2020

in the community
in 2020* Economic value distributed to stakeholders in compliance with GRI Standards 201 - 1 (reference at page 17).

The year 2020 was disrupted by the COVID-19 pandemic,(27% in the first half and 9% in the second), which peakedwhich

at 70% in April 2020. At December 31, 2020, 22% ofhad

dramatic

health,socialandeconomicconsequences on a global scale, still enduring in thethe stores were still closed due to the pandemic.

initial months of 2021. The restrictions on individuals’

The Group’s reaction to the emergency was immediate,

free movement imposed by governments and the generaldecisive and far-reaching. Each business function

distress caused by the spread of the pandemic had arevisedsignificant impact on luxury spending. The elimination ofprioritizing employee safety and customer centrality.

its

activities

andadaptedtheworkforce,

tourism flows resulted in a considerable drop in physicalsales, but at the same time fostered local consumptions.

Prada’s business model, which is deeply rooted in Italy

In addition, changes previously underway accelerated,

and features strict controls over all the productive

like for example the growth of digital communication

processes, along with full collaboration with governmentand sales channels along with the expansion of the shareauthorities and the flexibility of the Group’s craftof young consumers.

workers, enabled limiting the production shutdown tomerely five weeks. This ensured some supply continuity

The pandemic had the greatest effect on the Group’s

to the stores, although at below-normal volumes.

business in the first half of the year, although withdifferent trends across countries. Sales picked up

The ability to readily reallocate finished products within

gradually towards the end of the first half of the year,

the retail network helped sustain the growth of the directwhere it was possible to reopen activities, to the point of

E-commerce channel and the assor tment in stores thatfull retail recovery in October and December comparedstayed open, thus preventing excessive inventories.

to the same months of 2019 (November again suffered

The retail personnel kept contacts with customers alivefrom the lockdowns, mainly in Europe).

during the various closure periods, whereas all the otherfunctions ensured operational continuity in a context ofOverall, the Prada Group operated in the twelve months

severe cost containment, especially in the first half ofof 2020 with an average of 18% of stores closed

the year.

1. THE PRADA GROUP

14

Operating expenses were reduced thanks in par t to rent
discounts obtained and wage supplements used in the
countries where they were available. In addition, theinvestment program was revised during the year as somerenovation and relocation projects for the retail network
were

postponed.

Some

marketinginitiatives

werecanceled or postponed too and discretionary expenses
were trimmed. At the same time, at the reopening of
the stores in the various countries, an impor tant plan of
pop-ups and special installations in the retail spaces was
implemented, fully integrating it with the communication
strategy.
The objective of enhancing the value of the Group overthe long-term led to the appointment during the year of
Raf Simons as Prada’s new Creative Co-Director and the
addition of impor tant top positions in the Industrial,
Marketing and Communication areas.
The pandemic spurred the digital evolution reinforcing
the Prada Group’s vision of expanding the omnichannel
strategy, which during the year made additional progress:
an impor tant plan to update the back-end technologicaland organizational structures was established, theprada.com and miumiu.com customer experiences wereredesigned on an international scale, new E-commercemarkets were opened, content was localized andcustomized, and the digital communication strategy wasstrengthened through full use of social media channels,
in various areas of the world. Sales from the E-commercechannel tripled from 2019 levels and the Group’s brandrelevance in the digital world showed considerable
improvements.

the conversion of the Torgiano plant in Umbria, Italy,
for the production of personal protective equipment

The 2021 Spring/Summer Prada and Miu Miu fashionand scrubs to be donated to hospitals and employees,

shows were presented digitally, and gained visibility forto suppor t scientific research on the novel coronavirus,

their originality and impeccable per formance, even in

not to mention the numerous donations.

the new format. Miuccia Prada’s and Raf Simons’ comanagement of the creative work made its debut at the

One of these led to allocating the proceeds from thePrada Womenswear show in September, paving the way

Tools of Memory auction to suppor t UNESCO’s “Keeping

for an impor tant par tnership between the two designers

Girls in the Picture” campaign, to contrast social abuses

and representing an example of change in creativity

relating to the public health emergency.

leadership models for the entire fashion industry.
In the year of the pandemic, the focus on sustainability

On the environmental front, the campaign to transitionin the Group’s business led to numerous initiatives aimed

from the use of virgin nylon to regenerated nylon

at offering wide-ranging suppor t in the society: from(“Prada Re-Nylon”) proceeded according to plan thanks

1. THE PRADA GROUP

15

to the use of the new version of the iconic fabric for

Last, but not least, in order to optimize the retail presence

the production of various ar ticles in the clothing andin Milan and to profitably realize no longer useful real

footwear collections.

estate assets, in December 2020 the Prada Group soldits commercial proper ty in Via della Spiga, occupied until

The agenda of the Fashion Pact, a coalition of 60+ leading

March by a Prada store that closed during the pandemic

international fashion companies of which Prada wasand never reopened.

one of the first par ticipants, made large steps forward
in taking concrete action to contrast climate change,

On the financial front, the Group stipulated new loans

restore biodiversity and protect the oceans.

and opened new credit lines for the purpose of having
greater flexibility. At the same time, the Board of

In December 2020, the adventure officially began in

Directors withdrew the proposal to distribute dividends

Auckland for the Luna Rossa sailing team, sponsoredand a disciplined cost containment plan, enabled to keepby the Group and one of the protagonists of the Prada

the debt under strict control.

Cup and 36th America’s Cup presented by Prada, where
Prada is the Title and Presenting Sponsor.

The year-end net financial deficit stood at Euro 311.4

The prestigious competition, the oldest still played,

million, Euro 94 million less than Euro 405.5 million

has – thanks in par t to Prada’s contribution – a strong

repor ted at December 31, 2019, providing the basis

technological component and captivating broadcastingfor the applications needed to relaunch the business

and webcast formats that have ensured extraordinary

activities.

media exposure to the brand and global coverage with195 territories involved.
1. THE PRADA GROUP

16

2018

GRI-201 DISCLOSURE
DIRECT ECONOMIC VALUEGENERATED AND DISTRIBUTED

2019

2020

Amounts thousands of Euro

The difference is mainly attributable to a smaller
economic value generated in 2020 following the global
health and economic emergency.

Economic Value Generated

3,152,185

3,232,054

2,424,970

Economic Value Distributed

2,901,378

2,901,673

2,255,583

Operating costs

1,839,685

1,968,912

1,546,032

Value distributed to Employees

725,230

752,049

657,175

a containment of discretionary expense - in addition to

Value distributed to Banks and Bond Holders

17,60812,044

12,613the decision not to distribute dividends.

Value distributed to Government Authorities

95,184951

22,636

Value distributed to Investors

197,641

154,642-

Value distributed to the Community

26,03013,075

17,127the recognition of the extraordinary income due to the

Economic Value Retained

250,807

330,381

169,387

Patent Box (Euro 102 million), which almost zeroed the

The pandemic also had an effect on the distributed value
due to the lower volume of transactions - in par ticular,
operating costs recorded a lower cost of goods sold andThe

differencecompared

to

2019

in

the

value

distributed to government authorities is attributable tovalue in the previous year.
The consolidated income statement for 2020, presented
according to the model of economic value generated
and distributed defined by the GRI-201 disclosure (GRI
Standards), shows a retained economic value of Euro
169.4 million, down by Euro 161 million compared tothe twelve-month period of 2019.
1. THE PRADA GROUP

17

2.INTEGRIT Y AND RESPONSIBLE MANAGEMENTOver the years it has become increasingly evident how the integration of sustainability
into the business and an open and transparent dialogue with stakeholders were
fundamental. The Prada Group is aware that sustainability is a way of thinking, not justof operating, and defines its strategies and operational processes to withstand overtime; in increasingly complex and uncertain social and market contexts, Prada faces
challenges and seizes opportunities in the constant search to meet its stakeholders’expectations, pursuing long-term economic development for its own benefit and forthe interests of the community.
With a view to lasting success, and since sustainability is seen as a lever to improvethe company's competitive edge and face changes, at the beginning of 2020 Lorenzo
Bertelli also took on the role of Group Head of Corporate Social Responsibility; thestrengthening and acceleration of the Group's commitment on ESG (Environmental,
Social and Governance) issues are among his targets.

2.1 GOVERNANCE MODEL AND INSTITUTIONAL COMPLIANCESHAREHOLDER’S
MEETING
BOARD OFS TAT U T O R Y A U D I T O R S

EXTERNAL AUDITORS

AUDIT COMMITEECOMMIT TEESCORPORATEAFFAIRSINTERNAL AUDIT

INSTITUTIONAL AREAREMUNERATIONCOMMITEE

BOARD OFDIRECTORSINVESTORRELATIONSNOMINATIONCOMMITEE

SUPERVISORY BODY
CHIEF EXECUTIVE OFFICERSMANAGEMENT

The corporate governance model adopted by the

The Company has adopted a "traditional" governance

Company consists of a comprehensive set of rules,

system, in compliance with the Italian Civil Code,regulations, practices and procedures structured toconsisting of a management body, the Board of Directors,

govern the Company by establishing efficient anda supervisory body, the Board of Statutory Auditors, andtransparent operations within the Group, with the aim of

an auditing and accounting control body, the audit firm.

promoting and safeguarding the shareholder rights andcreating value for the whole stakeholders. The Company

The Board of Directors is the Company’s highest

is seamlessly committed to maintain a high standard ofgovernance body, which actively promotes the successcorporate governance to uphold the Group’s reputationof the Group by directing and supervising all its

and credibility.

activities and affairs. Some of the Board of Directors
responsibilities are discharged through delegation; to

The corporate governance model adopted by thethis respect, the Company has adopted a system ofCompany complies with the applicable regulations,proxies and powers aimed at ensuring an efficient andin par ticular with the principles of the Corporate

regular per formance of the activities in accordance with

Governance Code contained in Appendix 14 of the Listing

the procedures adopted by the Company itself.

Rules of the Hong Kong Stock Exchange.
2. I N T E G R I T Y A N D R E S P O N S I B L E M A N A G E M E N T

19

With a view to achieving sustainable and balanced

has the overall responsibility for setting up the Group’s

development, the Company views diversity at the Board

sustainability strategy and for ensuring that appropriate

level as an essential element to allow a constructive

and effective related risk management and internal

dialogue to enhance corporate governance. All Board

control systems are in place.

appointments are based on meritocracy and candidates
are selected based on objective criteria and the

The Chairman of the Board of Directors is the Company’s

professional contribution that each of them can makelegal

to the operation of the Board of Directors itself. The

application of corporate governance practices andBoard diversity policy has been considered and adopted

procedures, supervises their application; the Chairman

by the Board and encompasses a wide range of factors,

also convenes the meetings and presides over the

including but not limited to gender, age, cultural andactivities of the Board of Directors.

representative,

whoguarantees

thepropereducational background, professional experience, skills,
Theknowledge and nationality.

Chiefmanaging
The current Board of Directors was appointed at the

Executive
the

Officers

Company’sareresponsible

businessthroughfortheimplementation of the strategies outlined by the Board.

Shareholders' Meeting of the Company held on April
BOARD OF DIRECTORS

27, 2018 for a term of three financial years (20182020), which is going to expire with the for thcoming

Executive Directors

approval of the financial statements for the year ended

Carlo Mazzi

Role

GenderAgeChairmanM> 50

Miuccia Prada Bianchi

Chief Executive Officer

W

> 50

Patrizio Ber telli

Chief Executive Officer

M

> 50

Alessandra Cozzani

Chief Financial Officer

W

> 50

M

30 - 50

December 31, 2020. It is currently made up of nine
members, comprising four executive Directors, one nonexecutive Director and four independent non-executive
Directors. All Directors have distinguished themselvesin their respective areas of exper tise and provided valid
suppor t to the Board of Directors in their respectivefunctions.

Non-Executive Directors
Stefano Simontacchi

The Board of Directors is responsible for the ordinary

Independent Non-Executive Directors

and extraordinary management of the Company andGian Franco Oliviero Mattei

M

> 50

Giancarlo Forestieri

M

> 50

corporate purpose, except for those acts reserved

Sing Cheong Liu

M

> 50

by laws or by the By-laws for the competence of theMaurizio Cereda

M

> 50

discharges its duties by carrying out all acts it deems
advisable to implement and attain the Company’s

Shareholders' General Meeting.
In par ticular, the Board of Directors is responsible forsetting up the overall strategy of the Group and forapproving annual budgets, extraordinary transactions,transactions with related par ties and all other initiatives
with a strategic impact.
The

Board

is

also

responsible

The Board of Directors’ discharge of duties is suppor ted
by the preliminary and advisory activity carried out by
the committees it sets up, namely the Audit Committee,
the Remuneration Committee and the Nomination
Committee. Each Committee comprises a majority of
Independent Non-Executive Directors, including theforreviewingtheoperational and financial per formances of the Company
and the Group, and it examines in detail the economic
per formances at each quar ter, updating, if necessary,
the annual budget. In addition, the Board of Directors
2. I N T E G R I T Y A N D R E S P O N S I B L E M A N A G E M E N T

role of Chairman.
The primary duties of the Audit Committee are to provide
the Board with an independent view of the effectivenessof the Company’s financial repor ting process and its
internal control and risk management systems.
20

The Shareholders' Meeting held on April 27, 2018

AUDIT COMMITTEE
Role

GenderAgeChairmanM> 50

Giancarlo Forestieri

M

> 50

Maurizio Cereda

M

> 50

Gian Franco Oliviero Mattei

appointed the current Board of Statutory Auditors,
consisting of three statutory auditors and two alternate
statutory auditors for a term of three financial years(2018-2020), which is going to expire with the forthcoming
approval of the financial statements for the year ended
December 31, 2020.

The primary duties of the Remuneration Committee are

BOARD OF STATUTORY AUDITORS

to make recommendations to the Board on the policy
for the remuneration of the Company’s Directors andtop management.
REMUNERATION COMMIT TEE

Role

GenderAgeChairmanM> 50

Rober to Spada

M

> 50

David Terracina

M

> 50

Antonino Parisi

Role

GenderAgeChairmanM> 50

In compliance with Italian Legislative Decree no. 231 of

Gian Franco Oliviero Mattei

M

> 50

June 8, 2001, the Company has established a supervisory

Carlo Mazzi

M

> 50

Maurizio Cereda

The Nomination Committee is primarily responsible fordetermining and revising the policy for the nomination of
Directors, assessing the independence of Independent
Non-Executive Directors on an annual basis, and making

body whose primary duty is to ensure the functioning,
effectiveness and enforcement of the Company’s Modelof Organization, adopted by the Company pursuant to
the Decree. The Supervisory Body consists of threemembers selected among qualified and experienced
people and nominated by the Board of Directors.

recommendations to the Board regarding the structure,

SUPERVISORY BODY

size and composition of the Board itself.

Role

GenderAgeChairman

M> 50

Sing Cheong Liu

M

> 50

Carlo Mazzi

M

> 50

The recommendations made by the Board of Directors
committees are regularly put forward to the Board itself
for discussion and approval.
The Board of Statutory Auditors is the supervisory bodyin charge of checking the compliance with applicablelaws, regulations and the By-laws, as well as with theprinciples of sound management and, in par ticular,
the adequacy of the organizational, administrative andaccounting structure adopted by the Company and theproper operation thereof.

2. I N T E G R I T Y A N D R E S P O N S I B L E M A N A G E M E N T

GenderAgeChairmanM> 50

Gianluca Andriani

M

30-50

Gian Franco Oliviero Mattei

M

> 50

David Terracina

NOMINATION COMMIT TEEGian Franco Oliviero Mattei

Role

The Company is devoted to developing an effective
two-way communication with shareholders, investors
and equity analysts to enhance the transparency of theCompany. During the financial year ended December 31,
2020, the Company continued to facilitate an effective
communications through multiple channels including
investor conferences, one-on-one and group meetings,
teleconferences, the Company’s corporate website (www.
pradagroup.com), social media, and press releases.
More detailed information on corporate governance isprovided in the Corporate Governance section containedin the 2020 Annual Repor t.

21

2.2 RISK MANAGEMENT
Moreover, the Internal Auditing depar tment works in
Given the complex regulatory environment, the Prada

close collaboration with the aforementioned bodies,Group, thanks to the coordination provided by thewhich, in addition to the typical assurance activities,

Corporate Affairs Direction, assigns various departments

assists the Board of Directors and the Audit Committee

and hires external specialists to keep abreast of changing

in risk management activities among others.

laws and regulations so that it can adapt its proceduresin a timely manner and reduce non-compliance risks toWith par ticular reference to production and logistics

a minimum levels.

issues, the Industrial Compliance Office sets guidelines
for implementing laws and regulations that affect the

The Group has structured the internal control system

impor ting and expor ting of raw materials and finished

as a process carried out by the governing bodies of thegoods, while providing various forms of industrial

Group’s subsidiaries, by management and by thecompliance assistance to the manufacturing divisions.

corporation in general, with a view to providing
reasonable cer tainty that control objectives will be met.

In 2020, with the aim of better integrating the control
activities carried out along the supply chain, in addition

More specifically, the Board of Directors of Prada S.p.A.,

to having formalized a dedicated procedure, the supplierreferring to internationally recognized models such as

audits initiated in 2019 were continued and stepped

the CoSO Repor t (Committee of Sponsoring Organizations

up to ensure the protection of human rights, fairof the Treadway Commission - international best

working conditions, and health and safety. The activity

practices), is engaged in the continuous refinement

involves various company functions and has createdof the Internal Control and Risk Management systems

an interdisciplinary team. Being aware that first-tierby checking the operation of its main components

suppliers use subcontracting and of the reputational

consisting of:and legal risks associated with that, during 2020 thecontrols were completed at the suppliers of the Leather•

control environment;

Goods Division, and then continued at those of the•risk assessment;

Footwear Division. Next year, the activity will therefore•

control activities;

be completed on the supply chain of the Footwear•

information and communication;

Division and will be extended to the Clothing Division.

•

control system.
In compliance with Legislative Decree n. 231 of June 8,

The internal control system helps ensure protection of

2001, the Company has established a Supervisory Body,

the Company's assets, the efficiency and effectiveness ofendowed with autonomous powers of initiative andits processes, the reliability of the information provided

control, whose primary task is to ensure the functioning,

to its governing bodies and the market, and complianceeffectiveness, implementation and updating of thewith laws and regulations as well as by-laws and internalorganizational, management and control model adopted

procedures.

by the Company pursuant to the aforementioned
legislative decree for the control of risks and the

The bodies involved in internal control and risk

prevention of predicate crimes of various kinds and inmanagement are the Board of Directors, the Audit

different areas - including bribery and money laundering

Committee, the Supervisory Body and the Board of- by persons who exercise (by law or de facto) functions

Statutory Auditors, as well as the entire management,of representation, administration or management of thewhich has the primary task of implementing all the

Company.

necessary

processes

andprocedures

toachieve

the Company’s goals minimizing the risks for the

All the employees can repor t anonymously to theorganization through an appropriate system of controls.

Supervisory Body through an e-mail address available

2. I N T E G R I T Y A N D R E S P O N S I B L E M A N A G E M E N T

22

on the Company’s Intranet events or behaviors thatcompliance and processing of data and information.

do not meet Group’s standards. In 2020 there were no

Within this context, the risks related to sustainability

communications of behavior that could constitute a

are mainly associated with customer satisfaction

violation of the Organizational Model, for instance inand health and safety (chapter 2, paragraph 5) andcontrast with the principles set out in the Code of Ethics

respect of human and labor rights both within theor with applicable laws and regulations.

organization and along the supply chain (chapter 4,paragraphs 6 and 7);

During the financial period, the Company did not

3. financial risks specific to the Prada Group relating toalso record any material instances of non-complianceexchange rate fluctuations, interest rate fluctuations,with the applicable laws and regulations regarding

credit risk and liquidity risk.

bribery, extor tion, fraud and money laundering in the
Fur ther information is provided in the financial review

per formance of the activities of the Prada Group.

and corporate governance sections of the 2020 Annual
Risk assessment consists of identifying and analyzing

Repor t.

factors that could compromise the proper conduct ofcompany activities and must also extend to the analysis

More information is to be found in the 2020 Annualof the process that determines how those risks should be

Repor t - Note 28 "Provisions for risks and charges" -avoided or mitigated. The fact that economic, regulatory

specifically for updates on investigations and disputes

and operating environments are in constant flux raises

with third par ties or authorities that involved the Prada

the need for mechanisms that help identify and dealGroup in the period.

with the risks posed by such changes.

2 . 3 G R O U P ’ S E T H I CA L VA L U E S
For the Prada Group, risks can be broken down as follows:
The Prada Group is committed to operating with full
1. risks relating to the international luxury goods market

respect for the value of the individual and for the humanor related to the general state of the economy, theand workers' rights enshrined in Italian and international

protection of intellectual proper ty rights, image andcovenants and declarations, such as the United Nations

brand recognition, and the ability to anticipate trends

Universal Declaration of Human Rights, the Internationaland respond to the changing tastes of consumers.

Labor Organization (ILO) Declaration on Fundamental

The management of this type of risks, that can be

Principles and Rights at Work, and the Organization

defined typical in the sector, falls within the spherefor Economic Co-operation and Development (OECD)of sustainability according to its broader meaning,

Guidelines for Multinational Enterprises.

which also includes economic issues related to thecompany's ability to create long-term value, in

The Prada Group is also committed to creating,addition to environmental, social and governancedeveloping and strengthening cooperative ties withones. Fur ther insights of these issues is provided in

the communities where it does business, in social andthe description of the most relevant topics according

environmental terms, as they are deemed necessary forto the Global Repor ting Initiative (GRI) standards

inclusive growth.

which, for the Prada Group, basically mean: economic

Since 2016, the Prada Group has published a statement

per formance (chapter 1, paragraph 5), trademark

describing the measures taken to ensure the absence

protection (chapter 2, paragraph 4), the search ofof any form of modern slavery, forced labor and humanexcellence (chapter 1, paragraph 2) and digitaltrafficking within its organization and along its supply

transformation (chapter 1, paragraph 4);

chain, as required by UK legislation "Modern Slavery

2. risks

specific

to

the

Prada

the

impor tance

of

key

Group

relating

personnel,

toAct 2015".

strategy

implementation, outsourcing, legal and regulatory
2. I N T E G R I T Y A N D R E S P O N S I B L E M A N A G E M E N T

23

2.3.1 CODE OF ETHICS
The Prada Group considers respect for ethical principles
to be a basic pillar of its values and success. The Group
believes in and operates with:• compliance with legislative and regulatory provisions
in all countries in which it operates;• legitimacy, loyalty, correctness and transparency;• respect for privacy;• respect for the value of human beings;• respect for competition, as a crucial instrument in
the development of the economic system;• respect for the environment and awareness about
environmental protection.
Since 2007, these principles have been given formal
expression in the Prada Group’s Code of Ethics. The
Code contains the guiding principles of the Organization,
being one of the main pillars of the Group’s governancemodel and shared with all the employees, collaboratorsand suppliers, and is suppor ted by a set of proceduresin order to turn these values into daily actions.
The adoption and application of the Code of Ethics
is essential for the achievement of the Company’s
primary objective, consisting in the creation of value

in terms of returning value to its own industry and tofor shareholders, employees, customers and for the

benefit society as a whole.

community as a whole.
More in details, the Chairman Carlo Mazzi, the co-CEOs
The Group promotes knowledge of the Code throughMiuccia Prada and Patrizio Ber telli, Alessandra Cozzani

various means such as online publications, direct(CFO) and Lorenzo Ber telli (Group Head of Marketing

communications and, by procedure, as par t of the supply

and Group Head of Corporate Social Responsibility)

or commercial agreement with most of the par tners, as

deepened the most distinctive features of sustainability

it is considered a prerequisite for the establishment ofin Prada through an analysis referring to the 17 United

all contractual relationships.

Nations Sustainable Development Goals (SDGs).

2.3.2 SUSTAINABILITY POLICY

The commitment to numerous aspects of social andAt the beginning of 2019, the Prada Group decided toenvironmental development, such as the investment

formalize its commitment to sustainability and drafted its

in culture as an oppor tunity for aggregation, theSustainability Policy - approved by the Board of Directors

cooperation with stakeholders, the impor tance ofof Prada S.p.A. and available on the pradagroup.com

diversity and equal oppor tunities, the investment in

website, which has been published and shared also

new sustainable materials and the quality of working

through a series of video-interviews featuring the top

environments, and their harmonious integration withmanagement. These videos describe the company’s

the local community, has enabled Prada representatives

commitment to sustainability based on the three

to offer concrete examples of the Group’s sustainability

priorities for action – people, environment and culture -strategy.

where it believes it can provide the greatest contribution
2. I N T E G R I T Y A N D R E S P O N S I B L E M A N A G E M E N T

24

2.4 TRADEMARK PROTECTION
The Prada Group is actively committed to protecting its
intangible assets. With a specialized internal depar tment
dedicated to Intellectual Proper ty (IP), the Groupregisters its trademarks, designs, patents and domainnames with the competent authorities and adopts
preventative and defensive measures worldwide toprotect its IP rights on all on-line and off-line channels.
The

Prada

Group

regularly

monitors

registrations

by third par ties and any possible misappropriationof trademarks, designs and domain names identicalto or that could be confused with its own distinctive
marks and products. Any violation is tackled throughappropriate action with the competent authorities. The
Group cooperates on a daily basis with the Italian andinternational customs agencies to assist the blocking ofmarket entries of unauthentic products, and with thepolice and tax authorities in order to have counter feit
products existing in the market confiscated, distribution
and production processes rebuilt, and the individuals
and organizations responsible brought to justice.

Church's adver tising campaign - Fall Winter 2020

In pursuing such objectives, the Group shares relevant
information with the authorities and par ticipates intraining events on the Company's brands and products,
so that the authorities may have everything at theirdisposal to effectively fight counter feiting and thecriminal organizations responsible for it.
It

also

cooperates

with

major

associations,such

as the Istitute of Centromarca for the fight against
counter feiting (INDICAM), the Union des Fabriquants,
and the Quality Brands Protection Committee (QBPC),
to bring such issues to the attention of the institutions,the public and consumers. The Prada Group monitors
the evolution of intellectual proper ty rights legislation
and actively takes par ts to the consultations addressed
to trademark owners in relation to the creation of newlegal tools aimed at challenging illegal counter feiting
activities. Especially, in 2020 the Group has par ticipatedto the consultation of the European Commission on
the Digital Services Act, underlining the impor tanceto recognize a greater responsibility to the role of thedigital platforms, with the aim to guaranty a more secureenvironment to companies and users.
2. I N T E G R I T Y A N D R E S P O N S I B L E M A N A G E M E N T

25

Car Shoe adver tising campaign - Fall Winter 2020

Prada adver tising campaign - Spring Summer 2020

Miu Miu adver tising campaign - Spring Summer 202026

More accurate surveillance has been implemented
on the Internet to counter the promotion and sale ofcounter feit goods on websites, E-commerce platforms
and social networks. In recent years, the Prada Grouphas contributed to impor tant international operations
coordinated by the Guardia di Finanza, Interpol andEuropol, sharing information on hundreds of websites
and thousands of social media accounts helpful in theidentification of criminal networks and removal of
infringing listings that illegally adver tise the sale ofcounter feit products.
Thanks to a close collaboration with the authorities,
the fight against counter feiting under taken by the
Prada Group led to, in 2020 alone on a global level, theseizure of more than 255,000 counter feit products in
off-line markets, the deletion of 270,670 unauthorized
adver tisements, the deactivation of more than 9,022
websites with illegal content, and the removal of morethan 78,000 social media posts.

2.5 PRODUCT RESPONSIBILITY
Product quality and customer health and safety are
central to the Prada Group's manufacturing processes.

accessories" endorsed by the Camera Nazionale della

The products must meet uniform quality standards andModa Italiana (“CNMI”). These limits are the mostsatisfy all current regulations in more than 70 countries

vir tuous in international practice and aim to ensure

where they are sold.

higher chemical safety standards than those prescribedby the strictest national and international laws. Prada's

To achieve these goals, the Group employs technicians

suppliers of raw materials, packaging and manufacturingwith at least ten years’ experience, who run strict

services, which represent Prada's production chain, havequality controls on every material used in the production

all received the Group's RSL and progressively accepted

process, from sourcing to the finishing touches. Theyand signed it: since 2016, when 72% of the purchasemake periodic visits to the manufacturing sites ofvolumes were carried out according to this procedure,

raw material suppliers and contractors to assess theirin 2020 the "proactive" level of the RSL reached 100%

processes, the quality of their goods and the generalof the purchase volumes relating to Prada’s external

workplace conditions.

industrial suppliers, which must subscribe the Group’s
Code of Ethics, and 100% of the work per formed in theWithin the scope of these control and guidance activities,

Group’s production sites.

since 2014 the Prada Group has drawn up and updateda Restricted Substances List ("RSL"), the procedure that

Extending the reach of the RSL is impor tant for improving

sets limits on the presence of chemicals in its products.

the sustainability of the Group's production cycle, as

In 2016, Prada took the additional step of aligning its

is Prada's ongoing commitment to CNMI programs on

RSL limits with the more stringent, proactive approachchemicals, for which in-depth studies have been initiatedoutlinedon the application of the guidelines to manufacturing

in

the

"Guidelinesoneco-toxicologicalrequirements for clothing, leather goods, footwear and2. I N T E G R I T Y A N D R E S P O N S I B L E M A N A G E M E N T

processes, and on other matters.
27

The

collaboration

with

CNMI

continued

in

2020

The international success of the Prada Group is deeply

despite the COVID-19 emergency, with multiple remoterooted in Italy, star ting right from its supply chain.

meetings aimed at carrying out the "Guidelines on how

In 2020 the Group purchased materials from about 440

to use chemicals in supply chains and related controls"

suppliers 1 , 80% of them located in Italy, around 11% inand updating of the “Guidelines on eco-toxicologicalother European Union countries and the remaining 9%

requirements for clothing, leather goods, footwear andin other Non-EU countries. In many cases the materials

accessories”.

are produced expressly for Prada, according to strict
technical and design specifications, by long-established

To ensure that the RSL is being followed, in addition to

par tners: slightly over 63% of them have been working

requiring cer tification and testing from every supplier,with the Group for more than 10 years, and around 19%

the Prada Group monitors observance of the guidelines

for a period of time between 5 to 10 years.

and the supplier cer tifications through an additional
internal control process by conducting spot checks on
all sourced materials through accredited laboratories.
In 2020 no cases of non-compliance with health andSemi- manufactoring Supply Chain Location
7% rest of the world
11% europe
82% i ta ly

safety regulations were recorded, as none in 2019. At thesame time, no cases of non-compliance with information

Also for outsourcing, the Prada Group stands out for its

and/or labeling requirements were repor ted (only onestrong ties with the ar tisanal craft experience typicalcase recorded in 2019 in China that led to fines for aof the Italian tradition. In 2020 the Group worked withtotal amount of Euro 1,500).

approximately 350 2 manufacturing suppliers in addition
to the aforementioned 440 suppliers of raw materials.

2.6 TIES WITH THE COMMUNITY

Around 82% of these manufacturing suppliers are locatedin Italy, around 11% in the rest of the European Union

Selecting the right suppliers is fundamental for achieving

and the remaining 7% in non- EU countries. Around 47%

the highest quality standards. Historically, the Groupof the manufacturing suppliers have been collaborating

has always worked with the best suppliers, in theirwith the Group for more than 10 years and around 23%

own right leaders and reference points in their sectors.

for 5 to 10 years. These are relationships built on mutual

In most cases, these are long-term relationships,

trust, characterized by working together on a daily basis

initiated following a rigorous selection process, whosewith a view toward constant improvement and learning.

strict parameters are intended to ensure the highest
standards of technical and economical, as well as ethicalOn the whole, approximately 81% of the Group's

reliability. The Prada Group has always valued long-industrial suppliers are located in Italy and about 56% ofterm relationships built on steady interactions: thesethem have been working with the Prada Group for more

par tnerships are crucial not only for the mutual growththan 10 years; from the beginning a strategic choice

and improvement but also for sharing a single, strategic

for Prada which has always considered a competitive

objective hinging on quality, excellence and the creation

leverage to root its supply chain in those territories

of value over the medium to long-term.

where the manufacturing sector represents an excellenceappreciated all over the world.

Raw Material Supply Chain Location

Further information on the quality of working relationships

9% rest of the world

with suppliers and people’s protection along the value

11% europe
80% i ta ly

chain is to be found at chapter 4, paragraphs 6 and 7.

1
For the purposes of this analysis, only raw materials suppliers with which purchases ofmore than Euro 30 thousand were conducted in 2020 have been considered.
2
For the purposes of this analysis, only manufacturing suppliers with which purchases ofmore than Euro 30 thousand were conducted in 2020 have been considered
2. I N T E G R I T Y A N D R E S P O N S I B L E M A N A G E M E N T

28

2 . 7 C O O P E R AT I V E C O M P L I A N C E

risk management system has entitled Prada S.p.A. to
par ticipate in the Cooperative Compliance Tax Regime

The Prada Group believes that responsible corporate

in Italy (under Italian Legislative Decree 128/2015), withgovernance calls for adopting collaborative approaches

effect from 2016. Within the Cooperative Compliancethat can improve the common value creation process while

Tax Regime, the Group has expanded the systematic andmaintaining the balance between business objectives

continuous communication channel with the Italian tax

and stakeholders’ expectations.

authorities based on reciprocal transparency and trust,in order to minimize uncer tainties about potentiallyThis approach is also reflected in the Group's tax strategy

risky situations.

which is based on risk prevention and "tax cer tainty",

After its inclusion in the regime, the Italian tax

both pursued through ongoing dialogue and honest,

authorities invited some Group companies to join thelong-term interaction with the tax authorities in theInternational Compliance Assurance Programme (ICAP)

countries where it operates.

launched by the Organisation for Economic Co-operation
and Development (OECD).

For the correct and effective implementation of this tax
strategy the Group adopted the Tax Control Framework

The program star ted with a pilot in 2018 that was(" TCF"), which also illustrates the tools for identifying,completed in the first half of 2019, followed by a second

assessing, managing and controlling tax risk, according

pilot, “ICAP 2.0”, in which the Group formally confirmed

to international standards shared periodically with theits par ticipation in December 2019. As par t of the first

Italian tax authority. The TCF is par t of the internal

ICAP pilot phase, the Group’s par ticipating companies

control system, capitalizing on the Group's controls

shared extensive information with the tax authorities ofand compliance models. The effectiveness of the tax

the countries where they reside (Italy, the U.S.A., the

2. I N T E G R I T Y A N D R E S P O N S I B L E M A N A G E M E N T

United Kingdom, Canada and Australia).

29

At the end of the assessment, the respective tax

helps to determine and monitor a tax approach that

authorities assigned the status of “low-risk taxpayer ”

complies with current legislation.

to those companies. The companies residing in Italy,
Germany and the Netherlands are currently par ticipating

Annually, the Group sends to the Tax authority the "Country-in ICAP 2.0.

by-Country Report" providing key information about theConstant, preventive dialogue with tax authorities is also

income and activities of resident companies, in compliance

ensured through other means such as Advance Pricing

with the obligations for mandatory automatic exchange ofAgreements ("APA") and Basic Asset Protection Agreements

tax information between the various countries.

("BAPA") with local tax authorities - consisting of sharing

The necessary safeguards have also been put in placeex ante the treatment of intercompany transactions inrecently

relation to transfer pricing legislation - and clarification

obligations of the respective tax authorities regarding

requests addressed to the various tax administrations

any cross-border transactions containing the hallmarks

regarding issues of uncer tain interpretation.

identified in EU Directive 2018/822 ("DAC 6").

The Group’s tax strategy is defined and periodically

Finally, Prada S.p.A. holds the status of Full Authorized

updated by the Parent Company's Board and implemented

Economic Operator (“AEO”), which means with theby the Tax Depar tment. Assurance on fiscally relevanthighest level of reliability. This recognition, issued byprocesses is also guaranteed through the internal control

the Customs Agency, is granted to companies that provesystem (Internal Audit) and through the checks carried

to be competent and vir tuous in the management of theirout by second-level control functions. Fur thermore, thebusiness processes, in compliance with both customs

presence of external consultants assisting the Groupregulations and safety standards for goods.

2. I N T E G R I T Y A N D R E S P O N S I B L E M A N A G E M E N T

toverifycompliance

with

the

repor ting30

2 . 8 S U S TA I N A B L E F I N A N C E
On January 2020, the Prada Group signed a new
Sustainability Linked Term Loan with the leading global
Japanese Bank Mizuho. The operation adds to a previous
one signed in 2019 with Crédit Agricole Group, when
Prada became the first Italian company in the luxury
sector to under take such initiative.
Both operations, while representing only a share of theGroup’s total indebtedness, fit per fectly into a muchwider framework of sustainability integration into thecorporate strategy.
This new facility is also a five-year term loan whichinterest rate can be reduced following the achievementof the following targets related to:• the number of stores assigned of a LEED Gold or
Platinum Cer tification;• the amount of training hours for the employees;• the use of Prada Re-Nylon (regenerated nylon) forthe production of goods.
Independent third-par ty bodies will annually review theachievement of these objectives, as it is for the initiativewith Crédit Agricole.
At the date of this Responsibility Repor t, the PradaGroup entered into a third transaction linked to ESG
objectives with the UniCredit Group.

The capital market isincreasingly calling for
financial instrumentsthat can make a positive
contribution to promoting
the transition to as u s t a i n a b l e e c o n o m y.
We are pleased to be able
to respond promptly tothis demand andto be considered abenchmark partnerin this area.
The decision to introduce
new objectives
compared to the previous
operations underlines
the extension in scopeof our commitment andan increasingly stronglink between finance ands u s t a i n a b i l i t y.

During the year, there was an increase in interest fromthe financial community in the Group's sustainability
initiatives and practices and the CSR Team was involvedin numerous dedicated interviews with financial analysts,

Alessandra Cozzani,
Chief Financial Officer of Prada S.p.A .

banks and industry operators.

2. I N T E G R I T Y A N D R E S P O N S I B L E M A N A G E M E N T

31

3. ENVIRONMENTThe Prada Group considers environmental protection a very important matter, forwhich it engages in and cultivates virtuous behaviors that contribute to sustainablelong-term growth and are examples of good practice for the entire industry.
This commitment is a key element of the Code of Ethics and is emphasized in theGroup's Sustainability Policy, guidelines applied without distinction both within theorganization, by constantly raising staff awareness, and with third parties working with
the Group.
This commitment was further strengthened through the signing of the Fashion
Pact whose main objectives are stopping global warming, restoring biodiversity andprotecting the oceans.

3 . 1 FA S H I O N PAC T
2019 clearly marked a turning point for the fashion
world in climate change and environmental protection
challenges. On the occasion of the G7 meeting in
Biarrit z, 32 world leaders of the fashion industry,including the Prada Group, signed the Fashion Pact.
This coalition, which sees luxury, fast-fashion, sportswear
companies, suppliers and retailers working side by side,
is born out of the recognition that only collective action
can change the environmentally harmful impact of the
fashion industry. It is an unprecedented initiative, withpeers, competitors, established brands and newcomers,
all coming together to work on the most pressing issues
facing our planet. At the end of 2020 the coalition
reached an exceptional magnitude bringing together
more than 60 fashion companies, which together
represent more than 250 brands and an estimated 1/3of the entire sector.
The Fashion Pact defined concrete targets in three key
areas that are crucial for the preservation of the planet:
the fight against climate change, the conservation of
biodiversity and the protection of the oceans. The set of

ambitions did not stop and focused on acquiring thegoals, which all the signatories are committed to achieving

necessary knowledge to define an action plan for theover the next few years, are not only declarations but

achievement of the objectives considered priority.

represent a tangible commitment that will be pursued

Specifically, the CSR Team par ticipated in all the online

through action plans with solid scientific bases.

meetings with the technical and high-profile par tners
made available by the Fashion Pact for the benefit ofDuring 2020, despite the period being characterized by

the par ticipants for alignment on the main reference

global turbulence, Prada's commitment to the coalition's

standards.

CLIMATE CHANGE

BIODIVERSIT Y

OCEANS

The fight against climate change

The protection of biodiversity

The protection of the oceans

will be pursued through thewill be guaranteed through thewill be ensured through thecommitment to a progressivecommitment to define a strategy

commitment to gradually replace

supply of electricity fromfor the safeguard of the territory,

the plastic used in packaging withrenewable sources, to the search

the promotion of sustainable

sustainable alternative materials.

for alternative raw materials withmanagement of natural forest

a lower environmental impact

and the suppor t of activities toand to the setting of emission

discourage deforestation.

reduction targets aiming for"carbon neutrality".

3. E N V I R O N M E N T

33

Our participation to the
Fashion Pact initiative is anatural progression of the
Prada Group commitment ins u s t a i n a b i l i t y, a p a t h m a d eof various projects in theenvironmental, cultural andsocial sphere.
From now on, thepossibility to target
these goals together withother important fashioncompanies represents
a concrete hope for asustainable developmentthat nobody
could reach all alone.

Carlo Mazzi,
Chairman of Prada S.p.A.

3. E N V I R O N M E N T

34

3 . 2 O P T I M I Z AT I O N O F P R O C E S S E S A N D

suppliers), and the cutting of hides, are produced at the

C O N S U M P T I O N O F R AW M AT E R I A L SGroup's own facilities.

The Prada Group feels a sense of responsibility for

Prada considers sustainable raw materials management

sourcing and managing resources in a manner that takes

to be synonymous with resource use optimization,

into account not just the intrinsic value given by theaccording to an approach that seeks to put an end toquality of the raw materials used, but also their origin

waste and thus minimize the consumption of leather andand the manufacturing processes that they undergo.

fabrics. In recent years, Prada's high sensitivity to thisissue led to the establishment of an effective way to

The clothing, footwear and leather goods divisions

recover and eliminate production waste through the use

directly select the suppliers of all raw materials, alsoof recyclable bags which are then compacted for proper

used by their manufacturing suppliers, coordinating andrecycling by specialized companies.

monitoring in this way the entire production process

Investments made in industrial development in the last

up to the creation of the finished product. This strong

years, and continued also during 2020, have led tointegration of design, product development and direct

insourcing various production phases, with the purposeand outsourced production, a distinctive element thatof maintaining quality at the highest levels of excellence

has characterized the Prada Group's business strategy

while optimizing the use of raw materials.

from the beginning, ensures full control of a crucial
phase of the value chain. It is wor th mentioning that

3.2.1 RAW MATERIALS

the vast majority of the prototypes and samples, as

Protection of the environment and its biodiversity is awell as a par t of the finished products and the mostfundamental element of the Group's growth strategy

delicate phases of production, such as the controls overand the search for new materials, which have always

all raw materials and the product accessories (also forcharacterized Prada's design, is only fur ther proof of

3. E N V I R O N M E N T

35this. In fact, innovative and sustainable materials were

The materials Prada uses in the manufacturing processincluded in the collections showcased in the men's andcan be broken down into primary materials - such as

women's fashion shows in 2020.

leathers, fabrics and yarns - and ancillary materials or
semi-finished products - such as soles, heels, zippers,

The Fashion Pact coalition includes the use of low-buttons, threads, ribbons, buckles, clasps and nameimpact raw materials among its main objectives; thisplates.

focus is shared by the Group's commercial par tners andis in fact speeding up the cultural and technological

The most significant information relating to raw materials

transition necessary to satisfy the growing demand forpurchased from 2018 to 2020 is listed below, including

more sustainable alternatives, which will be increasingly

the related unit of measure.

integrated into production processes to encourage
greater circularity of the supply chain.
The

Group

scrupulouslyinternational

regulations

complies
on

the

with

local

and

procurement,

impor tation, use and expor tation of raw materials, suchas the Convention on International Trade in Endangered

RAW MATERIAL

units

2018

2019

2020

Leather

Feet

29,192,490

29,514,844

11,898,684

Fabrics

Meter

4,015,597

4,141,910

2,911,897

Yarns

Kilo

218,000

154,394

109,788

Shoes' soles

Pair1,385,657

1,388,294

978,927

Species (CITES).
COVID-19 also had an impact on the Prada Group'sMoreover, in 2019, in collaboration with the Fur Free

production activities, with 21 factories shut down for

Alliance (FFA), the Prada Group also announced theapproximately five weeks and then resuming operations

adoption of a fur-free policy for all its brands, thus

beginning in the last week of April. As a consequence,

allowing the research and development of new, morein 2020, the Group was engaged in the proactive andinnovative and responsible materials.

efficientpurchases

3. E N V I R O N M E N T

management
of

raw

of

inventories

materials

with

to
a

align

the

reorganized

36

production to adapt to the new and extraordinary

below with evidence of the incidence of sustainablesituation. Overall, purchases of the aforementioned

alternatives.

raw materials accounted for approximately 86% of thePurchases of Fabrics and Linings (2020)

economic value of all purchases including accessories
and semi-finished materials.

cottonLeather

viscose2%

24%

The focus on Italian origin is demonstrated by the
procurement data regarding leather for footwear and

98%

76%

nylon and other syntetic

49%

accessories. In terms of quantity, in 2020, 88% of the51%

leather came from Italian tannerie s renowned for their
quality and long tradition.

3.2.2 PRADA RE-NYLON

Another 8% has been purchased from suppliers based in

Nylon is emblematic of the Prada brand and is a

the rest of the European Union, while the remaining 4%

distinctive feature of its unconventional approach tocame from outside the European Union.

contemporary fashion. The Re-Nylon project, which for
the Prada Group represents an impor tant initiative interms of sustainability, has emerged from a profound

Leather (quantity)reflection on the growing concern of today's society for

4% rest of the world

environmental protection.

8% europe
88% i ta ly

After a first edition limited to men’s and women’s bags
launched successfully in 2019, in June 2020 Prada
expanded the range by introducing clothing and footwear

100% of the leathers come with a cer tificate of origin,entirely made with regenerated nylon for the first time.

a data sheet guaranteeing quality and compliance withstandards, and cer tification regarding the parameters

The new collection was presented, with a global-

stated on the Group's Restricted Substances List (RSL).

first preview, at the Prada corners in Selfridges for

In addition, the leather is purchased from selected

the launch of Project Ear th, the new initiative of thetanneries following criteria that meet environmental

London depar tment store that in recent years has

and social parameters for production.

brought sustainability to the core of its business.

In 2020, the tanneries employed by the Prada Group that

The accessories and garments in this second capsulehave one or more cer tifications (e.g. UNIC, ICEC, ISOcollection can be identified by the Prada Re-Nylon logo,

and EMAS) represent, in terms of volumes, about 63% of

based on the classic Prada triangular logo and redesigned

the total leather supplies in the year. The tanneries thatto reflect the continual renewal and infinite lifecycle ofare simultaneously par t of the Leather Working Group

this innovative fabric.

(LWG), on the other hand, account for 54%.
The Prada Re-Nylon collection is crafted entirely from
Fabrics and linings

regenerated nylon created through the recycling andIn recent years, to foster higher transparency andpurification of plastic collected from oceans, fishing

traceability standards, the Prada Group has set up a

nets, landfills and textile fiber waste globally. Throughmapping system to track sustainable materials from theapurchase phase to the finished product.

transformation of the new polymers into threads, thisprocessofde-polymerization,

purificationandmaterial can be made into new nylon fabric.
With regard to fabrics and linings, the data relating
to purchases for the period under analysis are shown
3. E N V I R O N M E N T

37

The expansion of the Prada Re-Nylon collection confirms

3.2.3 OTHER CIRCULAR PROJECTSPrada's commitment to sustainable practices and renews

High-end products have always been associated with

the Company’s goal already set in 2019 of conver ting all

quality and therefore with durability. The Prada Groupvirgin nylon into regenerated nylon by the end of 2021.

takes care of its products even after they have reached

Despite the difficulties caused by the health emergency,

the consumer. The salespeople give clear information

the conversion program was regularly in progress as ofon the products and their care, and the stores provide

December 31, 2020.

complete post-sales services, including repairs. The
Church's Group has a distinctive repair service regarding
its Goodyear shoes, offering the possibility to resole ashoe at the Nor thampton plant.

3. E N V I R O N M E N T

38

UPCYCLED BY MIU MIU“Upcycled by Miu Miu” is the first exclusive collectionof vintage pieces recycled and customized by Miu Miu,
created from 80 exquisite unlabeled garments from the
1930s to the 1970s, rediscovered and handpicked in
vintage clothes shops and markets across the world.
The selected items have been restored in trademark Miu
Miu style, cut, joined, lengthened or shor tened, andfinished with embroidery and the brand’s emblematic
decorations, including sequins, crystals, ribbons andbows. The creative process intervenes in the life of thesevintage garments, worn and loved in the past, whose
lifespan is extended, renewed and sustained, enriching
women who will wear them in return.
The “Upcycled by Miu Miu” collection debuted in nineselected Miu Miu boutiques worldwide: Milan, London,
Paris, Moscow, New York, Shanghai, Hong Kong, Tokyoand St. Morit z.

3. E N V I R O N M E N T

39

A + P LUNA ROSSA 21
High-profile spor ts is another source of inspiration for
Prada and it represents an oppor tunity to realize its
commitment to safeguarding the environment.
For over twenty years, Prada has been sponsoring thesailing team Luna Rossa in the America’s Cup, the oldest
spor ts trophy competition in the world, one that allowed
the Group to enter the spor tswear and lifestyle segmentin the early 2000s.
The design of the new AC75 Luna Rossa racing yacht, in
addition to that of the iconic Prada and adidas sneakersof the past, are the primary source of inspiration for
the A + P LUNA ROSSA 21 sneaker, created by adidas in2020 for the Luna Rossa Prada Pirelli team engaged inthe 36th edition of the America’s Cup.
This collaboration combines the essence of the twobrands, not only from a technological point of view, butalso in terms of common interests and objectives: thecelebration of a shared heritage of spor ts excellence
and commitment to innovation and sustainability.
The A + P LUNA ROSSA 21 shoe is indeed a per fect
combination of several elements such as creativity,
high per formance and environmental sustainability,
par ticularly as regards protection of the sea.
The upper is composed of PRIMEGREEN, made fromhigh-per formance recycled materials, which is thencomplemented by a hydrophobic E-TPU outer shell,
providing flexible, breathable suppor t and preventing
water from penetrating the shoe.

3. E N V I R O N M E N T

40

3.2.4 PACKAGING: PAPER AND PLASTIC
In the twelve-month period ended at December 31, 2020

During 2019, the Group also embarked on a program

the Prada Group used 5,621 tons of paper for packaging

within the clothing and leather goods divisions aimed

worldwide, while in 2019 the consumption was 4,583

at conver ting some packaging components made fromtons. The data is not comparable to the volumes of

100% virgin plastic into recycled or regenerated plastic.

previous years due to the different repor ting perimeter
Plastic consumption for packaging (tons)

in terms of the number of suppliers included in the datacollected for the parent company Prada S.p.A. in the

2019
45%

period under analysis.
In 2020, 89% of the total packaging consumption was
represented by paper cer tified by the Forest StewardshipCouncil (FSC) and recycled paper. Out of a total of 33

55%

526

2020
49%

recycled pl astic

51%

356

virgin plastic

suppliers, 18 are located in Italy, 3 are in Europe andthe remaining 12 operate in the Asia Pacific area.

The graph above shows the % of virgin and recycledplastic used in product packaging; in 2020, plastic

Paper consumption for packaging (tons)

with recycled content almost reached half of the total
consumed so out of a total of 356 tons, 49% is in fact

2018
85%

15%

3,960

represented by recycled plastic (45% in 2019).

2019
16%

84%

4,583

3.2.5 WASTE

2020
89%

11%

5,621

Recently the Group conducted a review of the processes
carried out and waste produced in each manufacturingr e cyc l e d o r c e r t i f i e d pa p e r

ot h e r pa p e rphase at the factories, and subsequently set up asystem to manage the internal cycle of waste transpor t,

3. E N V I R O N M E N T

41

collection, temporary storage and disposal. The analysis

All the companies controlled by the Group at December

enabled to optimize the production cycles, thereby

31, 2019 and all its brands, except for Marchesi 1824

reducing waste production and increasing the propor tionsrl, were included in the inventory. Fur thermore, inof waste recycled. The new procedures implemented

2020 the Church’s Group also prepared an inventory

allowed the Prada Group to recycle more paper, plastic,of greenhouse gas emissions as proof of the growing

glass and printer car tridges not just at the factories but

interest in understanding its environmental impact.

also at its offices.
The total GHG (greenhouse gas) emissions produced by
The Prada Group places great emphasis on encouraging

the Prada Group's activities in 2019 were 425,385 tons

its staff to use industrial waste collection methods andof CO 2eq , 83% of which are indirect Scope 3 emissions.

standards that can ensure waste reuse and recycling or
disposal according to the best practices.

GHG Emissions (greenhouse gases) - 2019
2%

The Group's investments in the industrial area, especially15%

those regarding the most delicate phases of the production
process, have made it possible to reduce the productionwaste relating to clothing, leather goods and footwear
products and, at the same time, to effectively manage
the steps of waste collection and disposal.

scope

1

scope

2

lo cat i o n b a s e d

Waste sor ting has been introduced for the main materials,

scope

83%

3

such as selected leather, nylon, cashmere, wool and4 2 5 , 3 8 5 t o n C O 2eq

other fabrics, so that they can be effectively recycled or
put to new uses. For example, regenerated nylon fibers
and fabrics are recycled, and in 2020 selected leather

For the Prada Group, the completion of the inventory was

scraps were conver ted into fer tilizer components.

the first step in a long process under taken to progressively
reduce its direct and indirect GHG emissions.

At the date of publication of this document, this circular
project was taken into consideration within a five-3.3.1 EMMISSONS IMPACTS DIRECTLY RELATED TO

year loan from UniCredit, whose interest rate can be

THE BUSINESS

reduced slightly when a KPI linked to the regenerationand conversion of production waste is achieved.

Energy consumption
The main energy consumption under the direct control

3 . 3 C L I M AT E AC T I O Nof the Prada Group is the consumption of electricity andnatural gas for the operation of the 23 manufacturing

To achieve the commitments assumed when the Fashionsites, logistics centers, offices and stores throughout

Pact was signed, in 2020 the Prada Group concentrated

the world. In addition, the Group's fleet also represents

on measuring its emissions footprint in order to identify

a significant share of the total energy consumption.

the areas having the largest impact along the entire value
chain. Prada prepared the first inventory of the Group's

In 2020 Prada repor ted 125,731 MWh of electricity

greenhouse gas emissions 3 (2019 baseline), measuringconsumption, down by 10.6% from 2019, and including

the emissions directly related to its activities (Scope 1

consumption

and Scope 2) and those caused by the upstream andphotovoltaic plants of 2,080 MWh. In 2020, 44% of thedownstream activities of the value chain (Scope 3).

grid electricity purchased originated from renewable3
The 2019 GHG inventory of the Prada Group was prepared in accordance with the GHG
Protocol Corporate Accounting and Reporting Standard - Revised Edition (also referred to herein
as "GHG Protocol") developed by the World Resources Institute (WRI) and by the World BusinessCouncil on Sustainable Development (WBCSD) and took into account the contents of the Corporate
Value Chain (Scope 3) Accounting and Reporting Standard and UNI EN ISO 14064-1:2019.

sources, in line with 2019. In addition, the electricity

3. E N V I R O N M E N T

ofself-generated

electricity

fromconsumed for production activities is 20% of the total
42

consumption, whereas the remaining share is electricity

In this regard, during 2020 Prada progressively replaced

used for store and office lighting.

gas and diesel powered vehicles with hybrid and electricones.
At December 31, 2020 the hybrid vehicles were 18 andElectricity consumption (GJ)

the electric vehicles were 8, representing respectively 4%

2019and 2% of the total Company’s fleet.

7,251
498,980

At the same time, Prada continued to invest in its
infrastructures and installed 9 charging stations for its

2020

electric vehicles at its headquar ters between Tuscany and7,488
445,145
self-producedp h o t o v o lta i c e l e c t r i c i t yMilan, in addition to the 4 already installed in previous
years.

purchased
electricity

GHG emissions – Scope 1 and Scope 2
The consumption of natural gas 4 , used mainly for

The GHG emissions associated with the consumption ofoperations at production facilities, has fallen by 8.6%

gas, fuel and refrigeration gas refills (Scope 1) amountcompared to previous year due primarily to the production

to 6,388 tons of CO 2eq , a decrease of 29% compared

shutdown in Italy during the lockdown period.

with 2019.
With regard to indirect energy emissions (Scope 2)

Gas consumption (GJ)

deriving from the purchase of electricity, the table below

2019

shows the values calculated using both the "Location-

61,232

based" and "Market-based" methods defined below:

2020
55,950• "Location-based": reflects the average intensity ofFuel consumption by the Company’s fleet fell by 44%
compared to 2019 mainly as a result of the drastic
reduction of travel in 2020 resulting from the restrictions
for containing the spread of COVID-19. Consumption
decreased by 34% for diesel, 25% for gasoline and 58%
for kerosene.
2019

2020

Diesel28,142

18,599Petrol

728

547

LPG

-

5

22,240

9,434

TOTAL

energy is supplied;• "Market-based": shows the emissions from electricity
that the company has decided to purchase intentionally;
it takes into account the share of cer tified electricity
purchased from renewable sources.

COMPANY FLEETCONSUPTION (GJ)

Kerosene

the emissions relating to the grid from which the

51,110C O 2 E m i s s i o n s - S c o p e 2 ( t o n C O 2)
2019
62,08843,037
2020
53,28038,36628,585lo cat i o n b a s e dmarket based

As at December 31, 2020 the Company’s fleet is madeup of 445 vehicles (cars and vans), and represents 67%

In 2020 the indirect emissions from energy, according toof the total consumption due to the movements madethe location-based approach, decreased 14% from thoseby the Group employees.

of 2019, mainly due to the closures that occurred during
the year due to the health emergency from COVID-19.

4
The consumption of natural gas for heating stores was not included in the calculation because such data was unavailable. However, most stores do not use natural gas, so the exclusionof the data is not significant.
3. E N V I R O N M E N T

43

timing, and to raise staff awareness about proper and

GHG EMISSIONS
Scope 1 and Scope 2 (Ton CO2eq)

2019

2020

Direct emissions (Scope 1)

9,041

6,388

Means of transport (owned)

3,698

2,042

Natural Gas

3,477

3,165

F-Gas

1,866

1,182

62,08853,280interventions have in fact contributed to a drastic

43,03738,366decrease in the consumption of air conditioning in indoor

Energy – indirect emissions (Scope 2)
Location-based
Energy – indirect emissions (Scope 2)
Market-based

rational electricity use.
Fur thermore, interventions were carried out on theroofs of 3 Italian plants (Montegranaro, Buresta andPiancastagnaio) which led to significant improvements
in terms of energy per formance of the buildings; theseenvironments during the summer.
In keeping with past years, Prada is constantly engaged
in reducing the Scope 1 and Scope 2 GHG emissions so
as to limit the impact of its business on climate change.
More specifically, the Group carries out energy efficiency
actions and uses electricity from cer tified renewablesources in order to reduce the associated emissions.
LEED Cer tification
In 2020, the Prada Group achieved LEED - Leadershipin Energy and Environmental Design - Gold cer tificationfor 20 stores mainly located in the Asia Pacific region. As
of December 31, 2020 the Group had 57 LEED-cer tified
stores and one LEED-cer tified factory in Scandicci(Tuscany, Italy), a total of 58 cer tifications and expects
to obtain additional ones in 2021.
Heating and air conditioning systems

Energy box projectIn 2017 the Group launched the "Energy Box" project,which is a long-term plan for factories, offices and storesaimed at optimizing energy consumption. The project isbased on the installation of multi-meters that allow for
constant monitoring and for understanding consumption
information through accurate comparisons between
periods.
The data obtained from these tools enables to reduce
waste,

identify

consumption

anddiscrepancies
billedbetweenconsumption,

actualimprovemaintenance and simplify budget forecasts.
During the year more monitoring systems were installed,
and by December 31, 2020, there were 584 installed
multi-meters.

During 2020, corrective actions continue to be carriedout on all systems to optimize the power on/power off
3. E N V I R O N M E N T

44Relamping projectAt December 31, 2020 the Group had 10 photovoltaic

The process of conver ting to LED, star ted thanks to ansystems, most of which were installed on factory rooftops

impor tant project underway since 2014, led all Group’s

in Italy. The systems, which produce 3,450,555 kWh,directly operated stores to use exclusively LED lamps inout of which 2,080,054 kWh consumed internally, cover

all the store lighting already in 2018.

around 24% of the Group Italian factories' industrial
demands, preventing the emission in 2020 of 699 tons

The direct and indirect energy savings obtained areof CO 2 6 that would have occurred if electricity supplied

significant compared with the previous technologies

by the Italian grid had been used.

used (fluorescent and halogen lamps); moreover, thisalso led to less waste disposal because LED lamps last

3.3.2 INDIRECT EMISSIONS IMPACTS

much longer.

For the first time, Prada measured in 2019 the greenhouse

The Prada Group constantly updates this project ingas emissions produced indirectly by its businessorder to keep pace with technological advances, bothactivities. On the basis of an analysis of the Group's

in its retail spaces and within its industrial sites andvalue chain, the following Scope 3 categories were

corporate offices. In fact, during 2020, a major upgrade

included in the GHG inventory: emissions associatedplan involved a site of over 5,500 m 3 , headquar ters ofwith the purchase of goods and services, the Group's

the Group's Engineering division in Tuscany, Italy.

transpor tation and distribution of raw materials andfinished products, waste disposal, employee businessGreen energy

travel and employee commuting to and from work.

In 2020 the Prada Group ensured that 100% of the
GHG EMISSIONS
Scope 3 (Ton CO2eq)

electricity for all its Italian offices was supplied bysustainable sources with Guarantees of Origin.

2019

From purchase of Goods and Services

299,423

85%

From Transport and Distribution

33,3529%by the markets such as USA, United Kingdom, France,

From Commuting

14,442

4%

Germany, Spain, Austria, Holland and Swit zerland.

From Waste Disposal

2,316

1%

During the year, these sourcing policies allowed to avoid

From Business Travels

4,722

1%

Moreover, renewable energy supply agreements weresigned for some foreign subsidiaries, where permitted

over 20,000 tons of CO 2 5 .
5The emissions avoided were calculated using the market-based calculation method

3. E N V I R O N M E N T

6The emissions avoided were calculated using the location-based calculation method.
45

The indirect emissions deriving from the purchase of

The GHG emissions from the disposal of the waste

goods and services, approximately 300,000 tons of CO 2eq

produced by the Group's production activity at the(85%), include the GHG emissions from the production

manufacturing sites (20 in Italy and 3 abroad) amountof the raw materials purchased by the Group -for bothto approximately 2,300 tons of CO 2eq , including someproducts and packaging - and those associated with the

2,000 tons of CO 2eq associated with Italian productionenergy consumption of the contract manufacturers andand 238 tons of CO 2eq abroad.

suppliers of finished products.
Lastly, the calculations of emissions from employee

GHG Emissions from the purchases ofgoods and ser vices by type of source
2%

4%

travel are broken down into the impacts produced byr aw m at e r i a l s

employee business travel (4,722 tons of CO 2eq ) 8 and thosepac k ag i n g

associated with commuting to and from work (14,442

processing

tons of CO 2eq ) 9.
Concerning business travel, air travel accounts for thegreatest emissions impact (93%); the remaining sharerefers to car and train travel.
The Prada Group has introduced initiatives regarding

94%

commuting to and from work that can cut GHG emissionsin Italy, through a shuttle service in Tuscany anddiscounts on Milan public transpor tation passes, which

The raw material that most contributes to the result istogether resulted in savings of 836 tons of CO 2eq in 2019.

leather (93%) which, in addition to being very impor tantfor Prada's production, has a very high emission factor

3 . 4 P R E S E R VAT I O N O F T H E T E R R I T O R Y

compared with other materials. The next materials withthe greatest emissions impact are wool (2%), nylon

Respect for places has been a guiding principle for(0.9%) and cotton (0.8%).

the Prada Group from the star t. Reducing land take,renovating existing structures and working toward

The

GHG

emissionsfromtranspor tation

directlybuilding requalification have inspired the decisions

handled 7 by Prada to move raw materials and finishedmade in more than thir ty years of industrial development.

products amount to slightly above 33,000 tons of CO 2eq

With the belief that new construction can impact an(9%), 90% of which is from air transpor tation.

area considerably, and that such a decision must be
taken only when inevitable, the Prada Group prefers to

GHG Emissions from the transpor t by type of source

1%9%purchase and salvage existing buildings. Indeed, the few

plane

newly constructed buildings fit in harmoniously with theroadlocal areas, without causing disruption.

ship

The Prada Group has more than 200,000 m 2 of production
facilities and warehouse spaces, located almost entirely
in Italy. Among these, 6 are new buildings and many arecases of renovations of industrial buildings and degradedsites that had been abandoned for many years.
90%

When the Prada Group is unable to restore existingbuildings, it hires masters of architecture such as Guido
Canali, known for his sustainable architecture, to ensure
7
The data was gathered directly from the carriers managed by Prada S.p.A.; the calculation
does not include the transportation handled by the foreign companies due to the unavailabilityof such data.

89

The GHG emissions include 85% of the Prada Group's employees.
The GHG emissions include 70% of the Prada Group's employees.
46

results that have a low impact on the territory and thatlogistics. The hub was designed to be responsibly

create a new landscape that fits harmoniously with the

integrated into the territory thanks to border plantings,

surrounding area.

ar tificial dunes, roof gardens, glass walls, walkways,
and outdoor relaxation areas.

Facilities are designed and conceived as workplaces ofpeople and for people, and to respect nature faithfully.

The green areas occupy more than 50% of the entire

Those in Montevarchi and Valvigna, Tuscany, and in

sur face

Montegranaro, in the Marche region, were designed

vegetation typical of the Mediterranean scrub to preserve

specifically with the environment in mind; the volumes

the variety of local flora and insulate the buildings.

of

the

structure,

maintaining

intactthehave a contained visual impact also thanks to thevegetation and well inser ted in the landscape.

In terms of energy efficiency, the logistics hub is aThis feature makes them fully fledged “garden factories”.

reference point for the Group's cutting-edge industrial

The factories, with their wide, bright spaces enclosed bystructure since it was built with a photovoltaic system,

hanging gardens, are intended to have a discreet external image,

LED lighting, an energy-saving smar t home system, andbut also distinctive interiors experienced by the employees.

a geothermal plant.

Among the projects designed by Guido Canali, thelogistics hub in Levanella (Tuscany) is the focal pointof a major restructuring project regarding outbound3. E N V I R O N M E N T

47

4 . H U M A N CA P I TA L
Respect for human rights, for workers and for the people in general, as well as
the promotion of diversity, equity and inclusion, are elements that characterize thePrada Group and its way of operating in a global and constantly evolving context. Thisapproach also extends to people working along the Group's supply chain. Prada has
always considered human capital to be key to its competitive edge and makes every effort
to promote and reward personal and professional skills, teamwork and improvement.
The employees’ enthusiasm, craftsmanship and intellectual curiosity are the elementsthat underpin the innovation and quality of the Group’s products.

4.1 WORKFORCE

international level, confirming the Group's commitment
to stability in employment relationships and long-term

2020 sees the entry of very impor tant managerial figures

investment in human resources (88% in 2019).

who are par t of the Group's long-term development
vision regardless of the uncer tainties related to thehealth and economic emergency.
However, during a year upset by the COVID-19 pandemic,
which significantly affected all the Prada Group's

Number of Emplyees
2018
13,5562019
13,9882020

business activities in all markets and mainly in the

12,858

retail area, staff depar tures very often have not been
integrated with new hires as it was not possible to carryout the normal workforce rebalancing operations thatwould have been implemented under normal businessconditions. As of December 31, 2020 the headcount of
the Group stands at 12,858, recording an 8% decrease
compared to the previous year for the first time in morethan 10 years.

Employees per Geographical Area
2% Middle East
8 % J a pa n
9% America
20% Europe
22% Asia Pacific
3 9 % I ta ly

Outside Italy, the most sizable part of the workforce is in
Despite the global health emergency, the percentage of

Asia-Pacific (22%) followed by the rest of Europe (20%).

permanent contracts rises to 92% of the workforce at an

In Italy, where 20 of the 23 production facilities are

4. H U M A N C A P I T A L

49

located, most employees (63%) work in the industrial

A breakdown of the workforce by age shows that at

division, while in other countries, where 574 out of 633

December 31, 2020, 20% of Prada employees were

Directly Operated Stores are located, 84% of employees

under 30 years old and 59% were aged 30 to 50. Fur ther

are in retail.

analysis shows that 25% of the retail workforce were
under 30 years old, while in the industrial division,

Employees by Genderwhere at least ten years of experience in production

2018
62%

and craftsmanship is par ticularly impor tant, 51% of the

38%

2019

workforce belonged to the 30 - 50 year old range and
62%

38%

62%

38%

38% to the over 50 year old range.

2020

femaleIn the periods under comparison, the breakdown of
employees by age and gender remained quite stable, evenmale

if in all categories, a shift in the corporate population
towards the higher age group (> 50) was noted.

Women permanently represent the majority of theworkforce, counting for 62% of the corporate population.

In the “Staff ” and “Executive and Managers” categories,

Employees per age range

females accounted for 24.7% (vs. 13.8% of males)

2018
26%

55%

and 5.9% (vs. 4.3% of males) of the total workforce

19%

respectively in the category 30 – 50 year old.

2019
24%

56%

20%

Finally, most of the fixed-term contracts concern staff

2020
20%

59%

<30

30-50

year

in the retail area and, mainly employees between 30 to21%

50 years old age. 68% of the contracts are for females.

>50

LABOR
FemaleSTAFF
Male

FemaleEXECUTIVES AND MANAGERS
Male

FemaleMale< 30

30 - 50

> 50

< 30

30 - 50

> 50

< 30

30 - 50

> 50

< 30

30 - 50

> 50

< 30

30 - 50

> 50

< 30

30 - 50

> 50

2018

1.4%

5.5%

4.9%

2.2%

4.4%

2.4%

14.0%

23.4%

6.1%

7.6%

12.7%

3.3%

0.4%

5.4%

1.1%

0.2%

4.0%

1.1%

2019

1.4%

5.5%

5.0%

1.8%

4.3%

2.5%

13.1%

23.8%

6.5%

7.4%

12.9%

3.5%

0.3%

5.4%

1.3%

0.2%

4.0%

1.3%

2020

1.4%

5.6%

5.4%

1.7%

4.6%

2.6%

10.2%

24.7%

7.1%

5.9%

13.8%

3.5%

0.2%

5.9%

1.5%

0.1%

4.3%

1.4%

4. H U M A N C A P I T A L

50

The employees working full time represent the 97% of
the total workforce. In 2020 there were no differencesin benefits between full-time and par t-time contracts.

4.2 DIVERSIT Y AND EQUAL OPPORTUNIT Y
Diversity, an essential element of social sustainability,
is a value for the Prada Group; the enhancement ofdifferences is to be meant as a premise for creating the
ground of an inclusive work environment that allows
people to express their potential, to be used as a strategic
lever for achieving organizational objectives. Freedomof expression is the founding factor of a creative industry
like Prada, which must understand and anticipate socialchanges, surrounding all generations in the diversityof their aspirations, especially today in an increasingly
integrated and globalized society.
The vast international presence of the Prada Group
reflects a multitude of different cultures, nationalities
and religions. The communities and areas in which it
operates are a constant source of inspiration and growth.
The statistics on employees’ origin prove the various
backgrounds of the workforce. In fact, people with 104

Even at a geographical level females represent moredifferent nationalities (105 in 2019) work for the Group.

than half of workers in all areas, with peaks in JapanThe strong female presence is demonstrated by theratio between males and females for each job category:
women not only represent the majority of Labor (58%)

and the Asia Pacific, where females account for 74%
and 69% of employees respectively.

and Staff (64%), but they are also the largest component(57%) of Executives and Managers.
year

LABOR
FemaleMale

FemaleI ta ly
EXECUTIVES AND
MANAGERS

STAFF
Male

Employees per gender and geographical area

Female

57%

43%

65%

35%

56%

44%

2019

58%

42%

65%

35%

56%

44%

2020

58%

42%

64%

36%

57%

43%

41%

57%

43%

60%

40%

69%

31%

74%

26%

51%

49%

America

Male

2018

59%

EuropeAsia PacificJ a pa n

Another distinctive characteristic is the prevalence offemales in all divisions.
year

INDUSTRIALCORPORATERETAIL

Middle East

femaleFemaleMale

FemaleMale

Female

Male

2018

59%

41%

57%

43%

64%

36%

2019

60%

40%

57%

43%

64%

36%

2020

60%

40%

57%

43%

64%

36%

male

Respect for equal oppor tunities is also reflected in
the Compensation & Benefit system, based on theenhancementofskillsandmerit,

which

ensuresequal treatment by gender, seniority and role, as also
confirmed by the substantial equality in the remuneration
treatment as showed in the following table.

4. H U M A N C A P I T A L

51

PAY GAP (with the median as 100%)
year

LABOR

EXECUTIVES AND
MANAGERS

STAFF

FemaleMale

FemaleMale

Female

Male

2018

99%

102%

98%

104%

99%

104%

2019

99%

102%

98%

103%

97%

102%

2020

98%

102%

98%

104%

96%

103%

In October 2020, the Prada Group announced theappointment of a Chief Diversity, Equity and Inclusion
Officer for Prada Nor th America to be responsiblefor developing policies, strategies and programs tohelp ensure diverse representation of cultures andperspectives at all levels of the company. She will be incharge of working with the Group’s global leadership tostrengthen the inclusive culture and advancement forthe company’s talents.
At the end of 2020, the Prada Group is the first
luxurythefashionglobaltransforming

playertocommunity
the

join

the

dedicatedbusiness

Valuabletosystem500,

radicallyforthebenefit of people with disabilities.

T h e Va l u a b l e 5 0 0
c o m m u n i t y, w h i c hembraces a wide range ofindustries worldwide, isbecoming stronger ever y
d a y. I a c t i v e l y s u p p o r t
the decision to join thecoalition as I believe
strongly in the value ofd i v e r s i t y. T h e d i f f e r e n t
backgrounds of thecompanies adhering to
the alliance is a crucial
starting point to build acomprehensive global action
plan, which will enrich allof us

Prada strongly recognizes the intrinsic value of people
who are disabled and commits to suppor ting all within
its inclusion and sustainability agenda.
The company is exploring different opportunities todefine a long-term program of activities, which will startwith a commitment to hire individuals affected by trisomy

Lorenzo Ber telli,Group Head ofCorporate Social Responsibility

21 (Down’s syndrome) into its Italian retail network.
4. H U M A N C A P I T A L

52

F o r o v e r a c e n t u r y, P r a d a ' svisionary work has shaped
the course of the fashionindustry and continues toconnect individuals andcreatives worldwide througha shared appreciation of
innovation, style, andq u a l i t y.
Malika is a dynamic,
impact driven leader
and I am excited towelcome her to Prada.
She brings a wealth of
exceptional skills andexperiences to Prada andI, and the entire executive
team, look for ward toworking alongside her tostrengthen our culture anddiversity and inclusion
efforts within the company
and throughout thef a s h i o n i n d u s t r y.

I'm honored to be par t ofa strong leadership teamthat supports our talented
employees by enhancing thecompany culture and global
influence to ensure that the
Prada Group continues toreflect the diverse world welive in.

Malika Savell,
Chief Diversity, Equity and Inclusion Officer
for Prada Nor th America

Lorenzo Ber telli,Group Head ofCorporate Social Responsibility
53

Photo Credit: Kour y Angelo

4.3

DIVERSIT Y AND INCLUSION ADVISORYCOUNCIL

Photo Credit: Sarah Pooley

sustainability, in particular with regard to diversity (gender,
cultural identity, religion, personal orientation, etc.).
The Council fulfils its role through the proposal of

As anticipated, the Group firmly believes in the value of

projects, corporate policies and initiatives considereddiversity as a source of inspiration for its activities and,socially effective to spread a culture of inclusion in the

more generally, as a form of cultural heritage, wellbeing

fashion sector.

and creativity, which allows to establish a bond of affinity
with a global base of diversified stakeholders.

The D&I Council is composed of academics, activists,
representatives of the world of ar t and culture fromAt the beginning of 2019, in the United States, theinstitutions worldwide renowned.

Group established the Diversity & Inclusion Advisory

The Council has two Co-Chairs, Theaster Gates and Ava

Council (hereinafter “D&I Council”) in order to promote

DuVernay, and avails itself of the contribution of three otherthe issues of diversity and inclusion within the company

members: Joyce Brown, President of the Fashion Instituteand in the society.

of Technology (FIT), Mariarosa Cutillo, Humanitarian andChief of Strategic Partnerships at The United Nations

The D&I Council, as a consultative body fully independent

Population Fund (UNFPA), and Sarah Lewis, Associatefrom any form of governance of the Group, has the task

Professor of History of Art and Architecture and Africanof sensitizing the management on the social aspects ofand African American Studies at Harvard University.

4. H U M A N C A P I T A L

54

talent and hand down the diverse exper tise essential for

DIVERSIT Y & INCLUSION ADVISORY COUNCIL

the Group.

Role

GenderAva DuVernay

ChairmanF

Theaster Gates

ChairmanM

growth with projects, separating the content and training

Joyce Brown

F

modalities into three macro areas: industrial, retail andMariarosa CutilloFdevelopment of the technical and soft skills needed toSarah Lewis

F

The Prada Academy cultivates individual professional

best realize one's potential within the company.

During 2020, the D&I Council gathered to keep thecompany abreast of global social awareness around race,
culture and politics and for the definition of a long-termplan of initiatives that the Group has already under taken
during the year and that will continue in 2021. Based on
the major training and development project on the issuesof diversity and inclusion of Afro-American culture in
the United States between 2019 and 2020, the Group iscompleting an ambitious training program on D&I issues
that will be extended to all Group employees, whatever
their role, all over the world; internship programs andscholarship projects will also be inaugurated which will
see Prada collaborate with internationally renowned
institutes for the benefit of young students

work closely with the D&I Council to continue providing
for

young

talents

andinvestinginscholarship, internship and apprenticeship programs.

4.4

PRADA

ACADEMYAND

SKILLSDEVELOPMENT
Skills development is fundamental for the Prada Group,
as is Prada's commitment to the transmission of skills
from one generation to the next.
Since the beginning of the 2000s, the Prada Group has
designed learning paths for its employees, creatingover time a true internal Academy structured withconventional courses, on-the-job training and online
training.
Prada Academy is a training project that encompasses
all Prada's depar tments and positions; it is a physicaland digital place where knowledge, skills, techniques
and innovative ideas are shared and developed to foster

4. H U M A N C A P I T A L

have been suspended or overlooked for the sake ofother urgent matters and priorities, but this did not
happen. Prada decided to turn a tough situation into
an oppor tunity for growth, acting with resilience andcreativity to reconfigure the learning experiences in acomplex scenario that was constantly evolving due tothe public health emergency.
Courses were redesigned and offered internally thanks to
the use of digital tools, ensuring continuous, stimulating
learning to employees.
Industrial Academy
The learning paths for the industrial area are geared

The Chief Diversity, Equity and Inclusion Officer will
oppor tunities

In a difficult year such as the past one, training could

toward the acquisition of production know-how in theluxury leather goods, footwear and clothing sectors. The
training takes place mostly on the job, in designated areasof the Group's factories or at the excellent technicalschools located throughout Italy.
In this case, the main objective of the Academy is toconstantly enhance the technical and craft skills of
the employees, enabling them to become increasingly
exper t at their jobs and move freely within their scope
while experimenting with new tasks, in order to gain
a comprehensive overview of the operating processes
and thus improve their efficiency. The courses for thetechnical staff include training on the use of cuttingedge software, in which Prada has increasingly invested
over the past few years.
The Industrial Academy holds dear the safeguarding of
fashion exper tise, considered a national heritage to behanded down to the new generations. For this purpose,
the Prada Group creates training courses for recent
graduates and/or unemployed youths eager to learn thetechniques of the manufacturing world.
55

LEARNING AND
DEVELOPMENTACADEMYINDUSTRIAL
ACADEMYdigitalSTORES
ACADEMY

These courses, conceived as an introduction to fashionThetransformation

process

accelerated

trades, are a mix of theory and practice.

considerably in the past year due to the pandemic and theconsequential reorganization of training into a remote

Studying the production processes is the first step ofactivity. In addition to its Learning Management System,

intensive practical training: it is under taken immediately

the Prada Group is opening up to integration with otherin tackling the creation of handbags, accessories,

platforms that can provide an online, flexible and multi-

footwear and clothing. Under the guidance of internal

device learning experience: in the spring of 2020 a pilot

instructors and professionals who transmit their extensive

study was begun with a major industry provider thatknow-how, each process is included in detail so that the

involved all employees globally in a structured digital

par ticipants can learn how to work at the highest quality

linguistics training process full of engaging tools andstandards.

content.

Learning and Development Academy

Stores Academy

Employees are trained from the time they join PradaIn addition to the daily suppor t of experienced personnel,

through an onboarding process, during which thethe activities contemplated for store staff include courses

managers meet the new staff members and introduce

intended to strengthen professional skills, product andthem to the Prada world and the respective businessbrand knowledge, and customer orientation and service.

areas.
The professional training dedicated to the Group's

The social distancing imposed by the public health crisis

employeesofrequired overhauling the digital training modalities:business

webinars, online sessions and videos enabled to reachenvironments. Courses are formulated by first analyzing

systematically the entire store staff worldwide despite

the demands in order to build the content according to

the complicated scenario.

the specific personal and professional growth needs, in

In light of consumers' growing interest in knowing the

behavioral, specialized and managerial areas. In recent

brand purpose, as well as the usual content having toyears, courses have been developed on self-efficacy,

do with product knowledge, which remains central, in

leadership, team management, and the strengthening

2020 an impor tant course was introduced for areasof technical, digital, linguistic, and many other skills.

relating more closely to the brand values (“Storytellingthefocuses

complexitiesonpresent

effectiveinthemanagement
various

Project”). Within such process, the “Retail Storytelling
In 2017 the Prada Group implemented its digital

Lexicon” project, a journey into Prada's vocabulary,training platform, enabling all employees worldwide to

was formulated through the iconic concepts, forms andbenefit from E-Learning content and enroll in courses

materials of the brand.

autonomously. The number of online training hours hasgrown steadily from the time the system was launched,

The overall training approach was also redefined withdemonstrating the Company's focus on the integration

the production of engaging multi-channel narrativesof traditional classroom training with new, diversified(E-Learning, gaming apps, workshops). The harnessing ofdigital learning methods.

this recreational approach ("gamification") represented
fur ther significant progress in the supply of store

4. H U M A N C A P I T A L

56

training content: the intuitive and digital aspects of theorder to connect with students, get to know themgame maximized the learning of the content, creating

during the career days, meet them in training seminars

and building engagement and a sense of belonging topresenting Prada and its processes, and enlist them in

the Group.

projects initiated and coordinated by Prada managers
in a combined effor t that creates challenging, mutual
growth.

Training hours
In 2020, 153,462 hours of training 10 were provided
to 82,921 par ticipants. Online training consisted of

The recent experience with the School of Management56,227 hours of training redesigned into webinars andof Politecnico di Milano (MIP) is a clear example ofinteractive online classes.

interaction

Below is a summary of the average hours of training

management.

betweenstudents

andtheCompany’s

broken down by gender.
The consolidated par tnership within the "Shaping a
Training Worldwide

2018

2019

2020

Future" cycle of conferences (chapter 5, paragraph 2)

Average number ofhours per employee

6.88

12.28

11.94

opened the way for fur ther collaboration with the faculty:

Average number ofhours per employee
by gender

FemaleMale

FemaleMale

Female

Male

7.46

5.94

12.98

11.13

13.51

9.35

4 . 5 TA L E N T AT T R AC T I O N
AND RETENTION
Recruiting the best professionals in the job market,
people capable of adding value while fully understanding
complex business processes, is a fundamental strategy
for the Prada Group’s organization. Finding talented
youths and continuously reaching out among the new
constantly evolving academic courses and disciplines
are essential for keeping abreast of the times.
For this reason, the Prada Group par ticipates regularly
in events organized by schools and universities in10

in the 2019/2020 academic year, the Prada Group
became a main sponsor of the International Master ’s
degree in Luxury Management (IMLux) together with the
French Champagne Taittinger Group.
The post-graduate program is highly international
as it welcomes students from all over the world andconcentrates on Italy and France – the most impor tantcountries in the world for high-end products – where its
classes are conducted. Half of the lessons are held at
the NEOMA Business School in Reims, France, and half
at the School of Management of Politecnico di Milano(MIP), allowing its students to access a double degree.
During the year top managers interacted with theprofessors and the students on several occasions.

The hours of training exclude those on health & safety.

4. H U M A N C A P I T A L

57

The meetings, from the classroom testimonies to the

Duringthese

sessions,

the

Group

illustrated

its

various sessions planned for project work, were organizedexperience,

while

students

offeredadigitally to give continuity to the teaching, since

contributionbyaddressing

current

issuesthe COVID-19 emergency precluded any in-person

challenges with the perspective of young professionals

instruction.

and consumers. With this commitment to the classroom,

concreteandPrada emphasizes its interest in training and attracting
The academic year was inaugurated with the words oftalent, both strategic elements essential for ensuring

Prada S.p.A. Chairman Carlo Mazzi, who reiterated thelong-term growth.

Group’s interest in opening the minds of students througha study program structured not only with traditional

Moreover, in recent years, the Prada Group jointly withtraining, but also with experiences designed to explore

some academic institutions has been organizing visits

solutions to market challenges.

of students to its premises in order to introduce themto its work environment and methods, as it considers
opening up in this way to be crucial for its image as an

I b e l i e ve t h a t s h a r i n g o n e’s
own opinions with openminded and clever people,
such as young university
students, is a true
opportunity and always agood method for overcoming
boundaries and improving
o n e’s t a r g e t s

employer of excellence.
The visits to the factories in Italy have always been met
with enthusiasm for the organizational quality of theareas visited, which are located in unique architecturaland scenic settings. Some of these initiatives havebeen communicated and promoted through the Group's
LinkedIn page.
Another

peculiarity

of

the

educational

effor ts

under taken by the Group is the creation of synergies
with technical schools in Tuscany, as par t of a strategy toorient teaching to the professions required by businesses
in the industry and include the training needed togive continuity to technical and craft know-how. Thisapproach is also shared by the Church's Group, which

Carlo Mazzi,
Chairman of Prada S.p.A.

has been conducting meetings at local schools in Englandsince 2019 to come into direct contact with students
and present the company and its heritage.
The

Following the moments of interactions between students
and top management:• The Physical Space in luxury goods industry: Business,
Architecture, Experience, Communication & Culture,
Identity;• The Prada Group’s approach to marketing strategies;• The luxury market in Japan - cultural heritage andsocial roles;• Students’ Sustainability project works;• Students’ Prada Finance Challenge project works.

4. H U M A N C A P I T A L

recruiting

processuses

transparent

policies

intended to ensure equal oppor tunity to the applicants.
In fact, it is possible to collect and process candidates'
profiles in a global universe with the suppor t of anadvanced digital platform, which assists and simplifies
the synergistic, integrated operation of the Human
Resources Depar tment globally.
The Prada Group's remuneration and retention policy isdesigned to reward and retain highly professional staff
and skilled managers, new graduates and workers, withthe cer tainty that the creation of value is achieved in themedium and long-term through constant organizational

58

learning and the consolidation of employees’ experiences
and skills.
The policy features a balanced combination of componentsthat are fixed and variable, direct and deferred, tailoredto the position and professional qualifications, andconsistent with the needs of the various geographicalareas.
More in details, the Group's remuneration policy isbased on:• a periodic salary review that takes into consideration
the overall market competitiveness with respect tocompany positions and internal remuneration fairness;• an annual incentive plan linking remuneration to theCompany's earnings and to individual per formance;• long-term incentive plans, for key managers, linked
to the three-year profit growth, aligning individual
targets to those of the shareholders;• specific incentive plans for the sales team and fortechnical personnel specialized in the creation ofseasonal collections;• specificbenefit

plans

for

each

country,which

supplement in whole or in par t the mandatory
entitlements(healthcare,insurance,etc.),

andbenefits including social services and assistance tofamilies (public transpor tation, cars, school subsidies,

For instance, more than 75% of the employees in Italy

subsistence allowances, etc.).

and 100% in France can benefit from the supplementaryagreements. Employees in the UK’s manufacturing

The Board of Directors, together with the Remuneration

division also benefit from supplementary agreements.

Committee, is actively involved in determining the top
management remuneration taking into account the roles

The

most

significant

benefits

provided

by

these

and responsibilities assigned, and considering the market

supplementary or company agreements for 2020 werecompensation applicable to similar positions in businesses

the following:of comparable size and complexity to the Prada Group.
• per formance
The Group promotes freedom of association andbonus:

variablebonus

linkedto

production, sales and profit targets;recognizes the right to collective bargaining. In fact,• vacation bonus: fixed amount equivalent to one

the Prada Group engages with trade unions to improvemonth's pay as defined in the collective bargaining

the working conditions of its employees and to foster

agreement;

the medium/long-term well-being of its employees and• easy access to severance pay advances;thus its surrounding communities. Over the years the• flexible working hours enabling employees to achieveGroup has stipulated many supplementary agreements
especially in Italy, the United Kingdom and France,a more productive work-life balance;• supplementary

Healthcare

Fund:supplementary

whereby it offers better benefits than those establishedhealth insurance with an option to include immediatein the local collective bargaining agreements.

family at a special rate;

4. H U M A N C A P I T A L

59• special leaves of absence for illnesses of employee's

and travel, a response considered extremely positiveand demonstrating the effectiveness of the plan for thechildren (up to 12 years of age) in France;
betterneeds of the employees and their families especiallyconditions in terms of Sunday premium pay in thein a year like 2020, which was heavily affected by thestores in France;

COVID-19 crisis. In view of the exceptional situation,• regulations,employment

protection

and• improvement in sick leave for the employees of the
Church's plant in Northampton, United Kingdom.

to facilitate the use of the welfare resources, expense
reimbursements were authorized also for 2019 - notjust the current year as per the rules - and the limit for

As par t of the supplementary agreements in Italy, in 2018

obtaining food and fuel vouchers was doubled.

a Corporate Welfare plan was launched with the aimof allowing employees access to an extensive package

The Group complies with the applicable internationalof services such as reimbursements for healthcare,and national laws and regulations for working hours,

education and welfare expenses, leisure activities (travel,minimum guaranteed breaks and rest periods.

vacations, cultural and spor ts events), vouchers for fuel,Thanks to the respect, dialogue and cooperation infood, payments to supplementary pension funds, andplace with Italian trade unions, there were no labormuch more. The welfare plan can be activated under the

strikes during the year, just as none had occurred in theemployees request in view of the per formance bonus;

previous three years.

the company adds an additional 25% to the amounts
conver ted.

4 . 6 W O R K E R S ’ H E A LT H A N D S A F E T Y

During 2020, over 60% of the employees covered by

2020 will always be remembered as the year of thethe plan chose to conver t their per formance bonus into

COVID-19 pandemic, when in March Italy became thewelfare shares, using them mainly for reimbursements offirst European country to face a public health emergency

medical and education expenses, E-commerce purchasesof an unprecedented global scale. The Prada Group

4. H U M A N C A P I T A L

60

reacted immediately, focusing on the health and safetyof its employees, and extended the strict measures
adopted in Italy to all the regions in the world where
it operates, along with implementing the various
emergency measures across all geographical areas,
where

lockdowns

were

imposedbythenational

governments at different times.
In these exceptional circumstances, timely action was
taken. Right from the star t, a working group dedicatedto monitoring and managing the crisis was organized;
it developed a protocol to contrast and contain the riskof infection and had it implemented at all the Group's
locations in Italy and abroad.
Constant collaboration with local health authorities,
company

doctors,

representatives

andworkerand

trade

ensuredpromptresponses

union
to

a

continuously evolving situation. The Prada Group also
felt a responsibility to contribute as best as possible tothose affected by the national health emergency; forexample, the industrial sites in Montone and Città diCastello (Perugia, Italy) were conver ted and remained
open exclusively to produce 110,000 surgical masks
and 80,000 sets of scrubs respectively for the healthprofessionals of the Region of Tuscany, and customized
pediatric surgical masks were supplied to the Italianpediatric oncology branch in Milan, which experienced

premises more than once per day and making sanitizingshor tages during the shutdown imposed by the Italiangels and soaps available to all employees, to moregovernment.

demanding ones, like installing infrared thermometers
to take individuals' temperature at the main entrances

After weeks, many activities could resume, and theof the workplaces, distributing surgical masks daily togradual reopening was accompanied by strict anti-

all the employees throughout the world, and setting up

contagion measures and the application of scrupulous

COVID testing centers taking blood and swab samples

precautions to protect the health of the employees in allat the two main Italian premises in collaboration withworkplaces in accordance with the guidelines imposed

qualified hospital personnel.

by the government health protocols and Prada's even

Personal protection is of key significance to the Group:

more stringent ones. The prevention measures wereinternal policies safeguard the health and safety ofdifferentiated according to the type of activity andemployees at all Company locations according to thedegree of exposure to the risk of infection.

highest standards and in full compliance with local andinternational regulations.

Over the months, the Prada Group decided to expand the

In most locations (offices, warehouses and stores),prevention measures available to its employees and go

occupational health and safety risks associated with thebeyond what was required by law. Numerous initiatives

Group's operations are considered limited, also thanks

were implemented, from simple ones like preparing

to training activities and updated safety measures,informational material, sanitizing and deep-cleaning theespecially in the industrial areas.

4. H U M A N C A P I T A L

61

The following table shows the data relating to injuries atorganization is non-existent, while it considers the same

work in Italy, in addition to those relating to employees

risk to be very low along its industrial supply chain

in the production sites located in France, the United
The geographic location of the suppliers selected by theKingdom and Romania.

Group, as well as their profound knowledge in terms ofduration and quality of the established par tnerships,
I N J U R I E S AT W O R K
Hours worked

2018

2019

2020

reduces the risk of conditions or pre-conditions such as

9,130,298

9,475,823

7,586,654

to constitute circumstances of modern slavery, forcedlabor and human trafficking.

Numbers of injuries at work (*)

56

53

42

of which serious Injuries

-

-

-

The Group's business par tners are encouraged to goof which fatal injuries

-

-

-

beyond the minimum regulatory requirements and foster

6.17

5.64

5.54

Injur y Rate

*I njur ies with at le a s t o n e day l o s t were co n s i d ere ddialogue among all par ties involved to facilitate theimplementation of and compliance with the standards
in order to create positive work relationships. In

For years, the Prada Group has added digital platforms
for on-line training to traditional forms of classroom
training, platforms that in 2020 were of fundamental
use to reach the largest number of employees and also
promote widespread safety awareness. In 2020 H&S
training was provided to 780 people in Italy – out of
which 451 have been the people trained online (around
2,656 people overall in 2019). In 2020 training was
heavily affected by the restrictions imposed by thehealth emergency, and while training could continue
online for some categories of employees, for others,
for which training can only be provided in person, it
was not possible.

the relationships with suppliers, social awareness is
encouraged and regulatory knowledge and the adoptionof environmental, social and quality cer tifications arepromoted.
Prada's commitment is contained in the Sustainability
Policy and realized in par t by the promotion, distribution
and underwriting of the Group's Code of Ethics, whichis included, as required by company policies, within
business agreements with all suppliers.
Factories and external suppliers are also required toensure that any third par ty that provides them withmaterials and/or labor for making the Group’s products

There are no committees within the Group responsible forcreating and monitoring occupational health and safety

is provided with all the permits requested by law andcomplies with the Code of Ethics.

programs, whereas the positions and internal organization
structures required by the local legislation of the various
countries in which Prada is present do exist.
The Group makes effor ts to guarantee that its products
are created in conditions reflecting its commitment for
the respect of human rights in the workplace and its
compliance with international rules for the safety andwell-being of workers.
Moreover, the Group fights against all forms of
discrimination,

forced

and

child

labor

insidetheorganization and promotes the same respect along
its supply chain. Prada believes that the risk ofmodern slavery, forced and child labor within its own

4. H U M A N C A P I T A L

62

4.7

GROUP’SQUALIFIED

VENDOR

In the past few years Prada has directed effor ts toward

L I S T P R O C E D U R E A N D S U P P LY C H A I N

raising awareness in the purchasing structures of more

MANAGEMENT

responsible management of the industrial supply chain.
To this end, in early 2017 the Group adopted a "Qualified

For the Prada Group, the selection of its suppliers is

Vendor List" procedure to define the responsibilities

fundamental not only for reaching the highest standards

and operational criteria required to evaluate the ethical,

of product excellence but also for creating long-term

technical and economical reliability of its suppliers.

value.

The list is par t of the controls needed to initiate andcontinue with the supply relationship, as set out in the

The Group has always worked with the best suppliers inprocurement policy, which calls for mitigating risks

the industry and provides suppor t to its supply chain inof non-compliance through additional checks andimplementing work, health, safety and environmental

accountability.

standards in the workplace and thus in transmitting
its high ethical standards through a collaborative andWith respect to ethical issues, the accreditation andtransparent approach.

maintenance of a supplier 's qualification are confirmed
through requested documents, attestations and self-

This collaboration favors long-term relationships andcer tifications that ensure compliance with the laws on

is based on regular dealings, in order to share mutual

remuneration, social security, taxes, occupational healthgrowth and a common strategic objective, reducing theand safety, the environment, privacy and the governancerisk of non-compliance with the Group's Code of Ethics

model. Finally, the Code of Ethics must be signed inand the current regulations.

order to work with Prada.

Another fundamental factor is the proximity of the supply

This information asset undergoes systematic first-

chain to the Prada Group: approximately 81% of its raw

level and second-level controls, including interim ones,

material and manufacturing suppliers are located in

to ensure that the information is updated, true and

Italy. The vicinity enables Prada to per form a constantconsistent. Such controls, which involve documents

monitoring activity, even daily for the main suppliers,

and are per formed by the procurement structures orfor the purpose of control and risk management.

business areas specialized in the various topics, are also
conducted upon notification of potential situations of

The location of the supply chain in Italy is also impor tantcrisis, breaches or anomalies; in these circumstances,

for the working conditions of the employees, as they

the procedure involves additional analysis, targeted

are governed by the collective bargaining agreements

controls or an immediate encounter with the par ties

currently in force. The Italian Collective Bargaining

involved.

Agreement (CCNL) supplements the law and is stipulated
at a national level between trade unions and associations

The procedure, initially applied to suppliers in the

representing companies. The CCNL regulates the rights,

manufacturing area, has now been implemented withguarantees and obligations of all workers in terms of

the engineering and logistics suppliers and is gradually

pay and regulatory provisions, such as guaranteed

being extended to the other business areas. In 2020,

minimum wages, working hours, vacation time, seniority

due to the COVID-19 public health emergency, which led

treatment, treatment of over time, holiday and night-timeto the temporary shutdown of industrial activities, thework (with the related pay increases), the duration of

updating of the information suffered delays that were

the trial period and notice period, sick leave, maternity

gradually recovered when the activities resumed.

leave, accident leave and the disciplinary code.
The CCNL is negotiated and renewed every three years,

Although the Prada Group considers the risk of non-thus allowing for wage and regulatory adjustments incompliance throughout its direct supply chain to be low,line with economic and legislative changes in Italy.

thanks to its geographical location and the duration

4. H U M A N C A P I T A L

63and quality of the relationships established, it is aware

responsible for the second-level controls during thethat first-tier suppliers use subcontracting, and of

periodic inspections required by the Qualified Vendor

the reputational and legal risks associated with that,

List procedure.

including in terms of human rights. For this reason,

The analysis per formed during the inspections, whichin 2019 the Group set up a “Supplier Inspectorate” tofollow a six-month schedule, completes other controls

tighten the controls over the supply chain and respond tocarried out in previous phases and those foreseen by

the growing demand for transparency and accountability

the Qualified Vendor List procedure, thus strengthening

in the production and sourcing practices. The Groupthe control over the industrial supply chain, ensuringformalized the inspecting activity in July 2020 with acompliance with the Code of Ethics and current

dedicated procedure.

regulations.

The work team consists of representatives of the

The results of the inspections are repor ted to the various

administrative, occupational safety, compliance andmanagers so that a corrective action plan (Remediation

human

productionPlan) can be drawn up in the event of breaches or par tial

division managers with controls at supplier and/or sub-breaches of the criteria standards, and corrective actions

supplier premises, reviewing documents and checking

are identified that the supplier must implement over a

the observance of the Group's ethical principles andperiod of time that varies according to the irregularity

proper application of labor, tax, occupational safety andfound. In the event of serious breach, or the supplier 'senvironmental regulations.

inability to ensure a positive outcome in the prescribedresourcefunctionsandassists

time, termination of the supply relationship is evaluated.
The

inspectionplanincludesarisk

assessment,

conducted in the first phase by the various managers,

The team limited its activity to Italy; it began at the end

also according to the composition of the industrialof 2019 and in just a few months it covered most of the

supply chain in terms of supply and subcontracting, andmanufacturing suppliers in the Leather Goods Division,

any critical issues detected by them or by the functions

both first-tier and second-tier suppliers.

4. H U M A N C A P I T A L

64

However, in March 2020 the activity was suspended inactions as an essential condition for continuance oforder to deal with the COVID-19 public health emergency

the supply relationship, to be implemented within awhich struck Italy first among the European countries.

set time frame.

The inspections resumed in October, and covered

The breaches identified in the Footwear Division during

approximately half of the Footwear Division supply chain

the inspections are still being evaluated.

by the end of the year.
During 2021, the Supplier Inspectorate will complete
The inspections effectively confirmed what the managers

its inspections of the Footwear Division supply chain,of the production divisions had already perceived;

and will extend them to the Clothing Division. Specificmost issues were found at the sub-contracting level,

controls will be per formed on the suppliers and sub-with the Leather Goods Division experiencing more

contractors inspected in 2019 and 2020 for whichthan the Footwear Division. The controls over first-tierslight breaches were found, in order to check their

suppliers were more encouraging, as they confirmed

effective solution.

the effectiveness of the streamlining decisions of recent
years.
The breaches found in the sub-contracting relationships
regarded primarily social security and tax aspects, theworkplace, occupational safety and the work force
employed in terms of contractual conditions and actual
working hours. These situations led to, in the most serious
cases repor ted in the Leather Goods supply chain, thetermination of some first-tier and second-tier supply
relationships. When the breaches were not deemed
serious, the Leather Goods Division required corrective

4. H U M A N C A P I T A L

65

5 . C U LT U R A L I N I T I AT I V E SSocial changes, deep economic crises, difficulties experienced by the institutions
and the new paradigms introduced by technological progress have caused an everincreasing number of companies to adopt a closer approach to develop greater sensitivity
to the demands of civil society. According to this principle of shared value creation,
the competitiveness of a company and the well-being of the community in which it
operates, and not only that, are strictly related.
Prada interprets this approach adopting a logic of value distribution to society inits business model. The commitment to culture, a fundamental part of the Group's
strategy since its origin, is the tool that the Group considers most natural and closest
to its identity for extending the benefits of its activities to civil society.

Crab tureen with cover and fixed stand.
Qing dynasty, Qianlong period (1736 –1795), China.
RA Collection.

5.1 F O N D A Z I O N E P R A D A

impact of Chinese expor t porcelain. The project brought
together examples of porcelain made between the

The interests and the passions of Miuccia Prada and16 th and 19 th centuries for various markets, social andPatrizio Ber telli have inspired the Prada Group to suppor treligious groups, par ticularly in Europe and the Middle

Fondazione Prada’s activities in the fields of ar t andEast.

culture since 1993.
"Storytelling," the solo exhibition dedicated to Chinese
Fondazione Prada was created in Milan as a platformar tist Liu Ye and conceived by Udo Kittelmann, included

to conceive and develop ar t exhibitions along with

35 paintings realized from 1992 to the present. The

architecture, cinema, philosophy and per forming ar ts

project investigated the intimate and sensual imagery

projects. Since 2010 it has presented twenty-fourof Liu Ye, who describes each of his works as his own

exhibitions in Milan dedicated to impor tant international

self-por trait. His small and medium format paintings arear tists, as well as other activities in the field of cinema,

inspired by literature, ar t history and popular culture ofarchitecture and philosophy in Italy and abroad.

the European and Chinese worlds.

Since 2011, Fondazione has also been operating from its"K" was a project that features three elements in dialogue

venetian venue, Ca’ Corner della Regina, an eighteenth-with each other: German ar tist Mar tin Kippenberger 's

century building that has hosted seven ar t exhibitions,installation The Happy End of Franz Kafka's "Amerika,"an experimental platform dedicated to cinema, as well

the iconic Orson Welles’ movie The Trial, and Tangerine

as a large retrospective devoted to Jannis Kounellis.

Dream's electronic music album The Castle. The project,curated by Udo Kittelmann, refers to three unfinishedThe program of Fondazione Prada’s headquar ters innovels by Franz Kafka, proposing three personal readings

Milan, unveiled in 2015 and designed by the architecturalof Kafka’s subjects and atmospheres of his literary work.

firm OMA, included in 2020 three exhibitions. " The
Porcelain Room," curated by Jorge Welsh and Luísa

In response to the temporary closure of the exhibition

Vinhais, explores the historical context, scope andspaces, due to the health emergency, in 2020 Fondazione

5. C U L T U R A L I N I T I A T I V E S

67Liu Ye, The Goddess, 2018.
Acr ylic on canvas, 60 x 45 cm. Private Collection"K", Mar tin Kippenberger - The Happy End of Franz Kafka’s“Amerika”, 1994

5. C U L T U R A L I N I T I A T I V E S

68Soggettiva Danny Boyle

Prada increased and reimagined its digital presence.

“Accademia

Aper ta”

With the aim of transforming a period of crisis into an

which Accademia dei bambini, the Foundation’s space

oppor tunity for study and analysis, it experimented new

dedicated

ways of communicating. Fondazione Prada’s website

conceived by “masters” (architects, educators, ar tists,(fondazioneprada.org) and its social media channels

scientists, movie directors and musicians) over the last(Instagram, Facebook, Twitter, Vimeo, and Youtube)

5 years. “Readings” is a new editorial initiative involving

turned into a laboratory of ideas, a platform in which tothe creation of podcasts of excerpts from books publishedtest new formats and codes. "Glossary", "Inner Views"

by the foundation since 2012.

to

was

childhood,

a

video

retraces

project
thethroughworkshops

and "Outer Views" projects created thematic paths andideal dialogues between the recent and past activities

In addition, Fondazione Prada presented two digitalof the Foundation and the Collezione Prada.

projects: "Love Stories" and "Finite Rants". In "Love
Stories - A Sentimental Survey by Francesco Vezzoli" on

During the temporary closure of exhibition spaces,

the Foundation's Instagram account, the ar tist explores

the Cinema projects, the workshops of Accademia dei

the emotional, psychological and sentimental status of abambini, and the editorial activities invented new ways ofwide online community through social media language.

fruition of our audience. The cinematographic program“Finite Rants” is a series of visual essays commissioned“Per fect Failures”, conceived by Fondazione Prada andto filmmakers, ar tists, intellectuals and scholars which

MUBI, featured a selection of films that were widely

are visible on the project's YouTube channel.

misunderstood upon their original release, box officeflops, critical disappointments, shocking divergences“Soggettiva Danny Boyle” was scheduled at Fondazione

from a beloved ar tist or films burdened with a difficult

Prada’s Cinema at the beginning of 2020. It was a

production, films ahead of (or ingeniously behind) theirselection of films conceived by the English director,

time, the failures and missteps of prominent directors.

producer and screenwriter and investigated the themesof science fiction and automation.

5. C U L T U R A L I N I T I A T I V E S

69Finally, in September 2020 Fondazione Prada offered its
suppor t in promoting the charity campaign under taken
by Damien Hirst in suppor t of Save The Children's
education program in Italy, “Riscriviamo il Futuro".
Through the sale of four limited edition prints by the
British ar tist, the campaign raised a total of 3.3 million
euros.

5.2 SHAPING AS U S TA I N A B L E M U LT I L AT E R A L I S MWithin the cultural events entitled “Shaping a Future",on September 1, 2020, the Prada Group hosted "Shaping
a Sustainable Multilateralism" at Ca' Corner della Regina- the Venetian headquar ters of the Prada Foundation.
The morning of debates was predominantly around therenewed concept of “soft power ” and new forms ofcollaboration and multilateralism, increasingly strategicand essential elements for achieving global objectives
such as safeguarding the environment and the cultural
heritage in a post-COVID scenario.
The conference also stressed the crucial role of theDamien Hirst, Fruitful, 2020/ Laminated Giclée print on aluminium composite panel
Ph. Prudence Cuming Associates ©Damien Hirst and Science Ltd.
All rights reserved, DACS 2020

creative industry, which has always promoted the identityof Italy at international level and which constitutes a key
element for the rebir th of soft power itself, since thisIn 2020, Fondazione Prada star ted "Human Brains," aindustry founds its growth on culture and on the ability

global project of exhibitions, scientific debates, public

to interpret continuous changes taking place in society.

meetings, and publishing activities dedicated to brain
studies. The project, which will run until 2022, aims

In fact, the morning of debates was par t of a two-day

to attract public interest in neuroscience and create

program of events promoted by the newly established

a forum to facilitate exchanges between scientists,

Soft Power Club, of which the city of Venice, culturalphilosophers and scholars. The first event took place

heritage for humanity and a symbol of meeting andin November 2020: the online conference "Culture

exchange with other cultures for over a thousand years,

and Consciousness" on the topic of consciousness in

was the ideal stage to foster this multilateral dialogue.

neuroscience.
Since 2017, the Prada Group has organized a cycle of
Fondazione Prada kept on suppor ting the realization

cultural events entitled “Shaping a Future” with theof projects presented by Prada in Prada Rong Zhai inintention of stimulating a debate on the most significant

Shanghai: in November 2020 "Rubber Pencil Devil",changes taking place in contemporary society and morea site-specific intervention by Alex Da Cor te, opened

specifically to analyze sustainability issues. Previous

in the historical residence. The work, composed ofconferences were the following:highly stylized videos looped on 19 video cubes, was animmersive experience rich in allusions to avant-garde

2017: “Shaping a Creative Future”, held at the Group’svisual ar tists, experimental writers, pop singers, show-

Milan Headquar ters;

biz personalities and car toon characters.

2018: “Shaping a Sustainable Digital Future”, held at
Fondazione Prada in Milan;

5. C U L T U R A L I N I T I A T I V E S

70

2019: “Shaping a Sustainable Future Society”, held at
the Group’s New York Headquar ters.
Until 2019, Prada made use of the scientific contribution
of

Yale

and

Politecnico

diMilanoSchoolsofManagement, creating synergies with students andhigh-value scientific contents shared during the events.

5.3 UNESCO
Beginning

of

2020,

Prada

and

UNESCO’s

Intergovernmental Oceanographic Commission - theworld’s foremost authority on ocean science – presented
an educational program dedicated to sustainability andcircular economy for a network of secondary schools
worldwide.
Sea Beyond, a project designed for students all aroundthe world, aims to help young generations to understandthe impor tance and the value of the ocean for the futureof our planet and guide their energy and creativity
towards actions for a more sustainable society. The
project underscores the Prada Group’s commitment
to sustainability and specifically toward the ocean,which follows the launch of the PRADA RE-NYLON
capsule collection, and it is per fectly in line with theUnited Nations 2030 Agenda and its 17 Sustainable
Development Goals (SDGs).
Despite the initial postponement due to the healthemergency caused by COVID-19, which has hit hard
all social environments and therefore the learningone, the educational program Sea Beyond resumed its
activities in the second half of 2020, involving about
300 students spread around Berlin, Cape Town, Lisbon,
London, Mexico City, Milan, New York, Paris, Shanghai
and Venice.
All teachers of the schools involved in the project took

The best projects will be awarded by IOC-UNESCO,

par t in webinars conducted by UNESCO-IOC exper ts

Prada and an international jury throughout a dedicatedin which they received training on how to develop an

event.

educational module dedicated to the theme of ocean
sustainability. At the end of the course, students wereDuring the first period of lockdown in Europe, Prada

asked to create a power ful campaign to raise awarenessdebuted a project called “Prada Possible Conversations”,

about the ocean’s preservation and inspire others on

a series of live dialogues between thinkers, cultural

how to be more sustainable.

arbiters and fashion figures across the world streamed

5. C U L T U R A L I N I T I A T I V E S

71

live on Instagram, to offer its audiences an escape as

The online auction “ Tools of Memory”, organized inwell as inspirations.

par tnership with Sotheby’s, saw various original items
from the shows which have gone under the hammer:

Each Prada Possible Conversation resulted in a donation

unique garments worn by the models, photo prints

to UNESCO sustaining their initiatives across the globe tocapturing spontaneous moments from backstage, polaroid

suppor t all the students whose education oppor tunities

pictures, invitations and seat markers, furnishings fromwere compromised during the COVID-19 pandemic.

the set and Frédéric Sanchez’s music, as played at theshows, on vinyl.

In suppor t of UNESCO’s educational initiatives andprograms to safeguard education in response to theLastly, the Prada Group, already committed to the

COVID-19 pandemic, Prada decided to contribute toeducation of future generations, has decided to suppor t

the campaign "Keeping girls in the picture" - promoted

the initiative of the Manifesto of the Decade of the Sea inby the Global Education Coalition for gender equality

Italy, becoming one of the first signatories and confirming

in education - by auctioning 72 lots from Prada’s Fall/

its commitment to create an Ocean Generation aware of

Winter 2020 fashion show and donating the entire

the value of the sea for our future and the future of theproceeds, which outper formed its pre-sale estimate.

planet.

Wor th mentioning that, at the peak of the pandemic,
the education of more than 1.5 billion children andyouth – 90% of the world’s students – was disrupted,
dispropor tionately impacting girls and women, for whom
education is often a lifeline.
5. C U L T U R A L I N I T I A T I V E S

72

5. C U L T U R A L I N I T I A T I V E S73Prada Mode Paris

5.4 PRADA MODE

Making Faces, an ar t project focusing on data gathering,surveillance and facial recognition. For a couple of days,

Within the cultural program under taken by the Pradathe venue hosted a dynamic program of talks, discussions

Group, Prada Mode is conceived as a touring privateand events, featuring exhilarating per formances and live

Club that offers to its members the access to meetingsmusic.

and cultural debates on contemporary issues. Imagined
as a place that augments and extends significant global

The project continued in 2020 by moving to the historiccultural gatherings at diverse locations worldwide, Prada

Prada Rong Zhai residence in Shanghai. The building wasMode offers exclusive access to unique programs andtransformed for the occasion by the director, producer

content that complement the themes and subjects ofand writer Jia Zhangke into a specially created design

the host event. Launched for the first time in 2018 inreflecting the Chinese word ‘MIÀN’, inspired by his

Miami during Ar t Basel Miami Beach, the Prada Modecinematic output. Over two days, guests were invited to

moved in 2019 in Hong Kong and London.

explore some of the multiple meanings of the word atdebates, film screenings and live musical per formances,

In 2020, the four th iteration was held at the legendary

as well as culinary experiences, which were also inspired

restaurant Maxim’s, a symbol of Paris’ Belle Époque.

by the event’s main theme. Prada Mode Shanghai was

The iconic location has been transformed by Ar tificial

also presented in the format of an online club, live fromIntelligence researcher and Professor Kate Crawford

11am to 11pm through Prada Mode mini-program in 3

and ar tist and researcher Trevor Paglen – the duo behinddifferent channels entitled “Chī Miàn/Noodle Eating”,

the Training Humans photo exhibition at Fondazione“Bǐao Miàn/Sur face” and “Huì Miàn/Meeting”.

Prada Osservatorio in 2019 – in an installation entitled
5. C U L T U R A L I N I T I A T I V E S

74Prada Mode Shanghai

5. C U L T U R A L I N I T I A T I V E S

75

6. NOTES ON THE METHODOLOGY6.1 T H E M A T E R I A L A S P E C T S

After mapping stakeholders from the beginning to the

I D E N T I F I CAT I O N

end of the value chain, the Group determined which aremost impor tant on the basis of their:

P R A D A G R O U P ' S S TA K E H O L D E R S•

influence on Prada: ability to affect the Company's

In conducting its business the Prada Group interacts

strategic or operational decisions;with many stakeholders, all of which can directly or•

indirectly influence or be influenced by the achievement

depends on the Company's decisions, products andof business objectives.

activities.

dependence on Prada: extent to which the stakeholder

This process identified many key stakeholders in thefollowing categories:

LICENSEES ANDB U S I N E S S PA R T N E R S
LANDLORDSCUSTOMERSSUPPLIERS

UNIVERSITIESE M P LOY E E S

A S S O C I AT I O N S

LENDERS AND
FINANCIAL COMMUNITYAUTHORITIES ANDR E G U L AT O R Y B O D I E SSHAREHOLDERSTA X A U T H O R I T I E S

TRADE UNIONSCOMMUNITYCOMPETITORSDISTRIBUTORSMEDIA AND
INFLUENCERS

MATERIALITY ANALYSIS

and strategic context and to describing its main

For 2020, the Prada Group has drawn up its Social

environmental, economic and social impacts;

Responsibility Repor t according to the GRI (Global

2. Ranking: putting these aspects in order based on

Repor ting Initiative) Sustainability Repor ting Standards

their relevance for achieving business goals (internal(hereafter "GRI Standards") and in line with the "ESG

significance) and concern to stakeholders (external

Repor ting Guide" of the Hong Kong Stock Exchange.

significance).

The depth and detail given to the various topics

A comprehensive list of the sustainability issues for thereflect the outcome of a materiality analysis which is

Prada Group was identified by the following steps:

the process of identifying, evaluating and ranking thesustainability aspects that are relevant to stakeholders
and that influence the ability of Prada to create value inthe shor t, medium and long-term.

• mapping the key stakeholders and analyzing theirconcerns;• per forming a benchmark analysis against Italian andinternational fashion and luxury firms, producing a

In this regard, during 2020, the Prada Group updated

list of the most common sustainability issues in theits materiality analysis by carrying out two main phases:industry;• per forming a media analysis relating to the Group,

1. Identifying sustainability issues: determining whichissues are key to understanding Prada's business6. N O T E S O N T H E M E T H O D O L O G Y

which enabled to present the perception of public
opinion;77• analyzing the main sustainability documents relating

the most significant ones in this Repor t.

to the Textile and Clothing sector (such as the GRI,
RobecoSam, SASB) to identify industry trends;

In accordance with the GRI Standards, the aspects were• analyzing the main sustainability trends at a global

ranked in terms of their impact both within and outsidelevel, identified by major international organizations

the organization, i.e. by extending the analysis to thesuch as the Dow Jones Sustainability Indexes, theentire value chain.

World Economic Forum and the Global Repor ting
Initiative.

The material aspects for the Prada Group were definedas the intersection of significance for the Company

Once the sustainability issues were defined, they wereand significance for its stakeholders, as shown in theranked in order to define their materiality and include

following matrix.

more relevant

P R O D U C T, C R E AT I V I T Y A N D
E XCELLENCEE VA L U AT I O N O F S U P P L I E R S SOCIAL ASPECTS

significance for the stakeholders

RESPECT OF HUMAN AND WORKERSRIGHTSE N E R G Y A N D C L I M AT E C H A N G E
DIVERSIT Y AND EQUAL OPPORTUNIT Y
K N O W - H O W P R E S E R VAT I O N A N DSKILLS DEVELOPMENTO C C U PAT I O N A L H E A LT H A N D S A F E T Y

WA S T E M A N AG E M E N T

R E L AT I O N S H I P S W I T H T R A D E U N I O N S
S U S TA I N A B L E W AT E R M A N A G E M E N T
E VA L U AT I O N O F S U P P L I E R S E N V I R O N M E N TA L A S P E C T S

less relevant

PROTECTION AND ENHANCEMENTO F T H E A R T I S T I C , C U LT U R A L A N D
N AT U R A L H E R I TA G E

R E TA I L I N N O VAT I O N

R E L AT I O N S H I P S W I T H T H E T E R R I T O R Y

TRADEMARK PROTECTIONTRACEABILIT Y AND RESPONSIBLE
P R O C U R E M E N T O F R A W M AT E R I A L S

AT T R A C T I O N A N D R E T E N T I O N O F
TA L E N T S

S U S TA I N A B L E PA C K A G I N G

B U S I N E S S S T R AT E G Y A N D E C O N O M I C
PERFORMANCEC O R P O R AT E G O V E R N A N C E A N D
P R I VA C Y

I N T E G R I T Y, T R A S PA R E N C Y A N D
C O O P E R AT I O N

CUSTOMER EXPERIENCE

significance for prada group

The following results emerged:

more relevant• aspects associated with the production processes and• again, the most significant aspect proved to be producttheir impact throughout the supply chain (respect for

creativity and excellence, which demonstrates thehuman and workers’ rights and evaluation of suppliers

fundamental impor tance — for the Group and its

according to social criteria) resulted among the moststakeholders alike — of the high standards of quality

relevant for stakeholders;and style that accompany Prada merchandise along
the entire value chain;• customer experience and integrity, transparency andcooperation are the issues most impor tant to the• equally relevant for the Group and its stakeholders areGroup, demonstrating its commitment to operating

the issues related to energy consumption and climate

in full compliance with current laws and regulations

change, the management and development of humanand to building trust-based relationships with its

capital (diversity and equal oppor tunity, know-how

stakeholders.

preservation), as well as occupational health andsafety;6. N O T E S O N T H E M E T H O D O L O G Y

78

Compared to the results of the 2019 materiality analysis,

In compliance with Standard GRI-101: Foundation,issuesgreaterparagraph 3, this document has been prepared in line

impor tance for the company, testifying the Group's

with “GRI Standards: Core Option”. References to theever increasing commitment to environmental issues.

Hong Kong Stock Exchange's ESG Repor ting Guide

Similarly, aspects related to occupational health and(Main Board Listing Rules - Appendix 27) are listed insafety result to be more impor tant at company level,

the Content Index 11 .

relatedtoclimatechangeassumepar ticularly in light of the emergency situation induced
by COVID-19, a situation that the Group has been able

The following table analyzes the repor ting of material

to cope with by implementing actions to adequately

aspects according to GRI Standards: it repor ts theprotect its employees and to ensure, in the meantime,boundaries and the eventual internal or externalbusiness continuity.

limitations.

ASPECT BOUNDARIESGRI STANDARDS MATERIAL ASPECTSASPECT BOUNDARIES LIMITATIONWITHIN THE
ORGANIZATIONOUTSIDE THE
ORGANIZATIONWITHIN THE
ORGANIZATIONOUTSIDE THE
ORGANIZATION

Economic Per formance

Group

-

-

-

Procurement practices

Group

-

-

-

Anti-corruption

Group

-

-

-

Materials

Group

-

-

-

Group

Independent clients (*)
and Suppliers-

Not extended to
Independent clients (*)
and Suppliers

EmissionsGroup

Independent clients (*)
and Suppliers-

Not extended to
Independent clients (*)
and Suppliers

Environmental compliance

Group

-

-

-

Employment

Group

-

-

-

Occupational health and safety

Group

Independent clients (*)
and Suppliers-

Not extended to
Independent clients (*)
and Suppliers

Training and education

Group

Industrial suppliers-

Not extended to Industrial
suppliers

Diversity and equal oppor tunity

Group

-

-

-

Non-discrimination

Group

Industrial suppliers-

Not extended to Industrial
suppliers

Human rights assessment

Group

-

-

-

Local Communities

Group

-

-

-

Supplier social assessment

Group

-

-

-

Customer health and safety

Group

-

-

-

Marketing and labeling

Group

-

-

-

Socieconomic compliance

Group

-

-

-

Energy*Independent clients mean multi-brand stores and franchisees

11 No reference is made to General Disclosure A3 (Environment and Natural
Resources), to Comply or Explain provisions A2.2 and A2.4 (related to the managementof water resources) and to Comply or Explain provisions A1.3, A1.4 and A1.6 (related
to waste management) of the ESG Repor ting Guide of the Hong Kong Stock Exchangeas, currently, these topics have not been classified as material for the Organizationaccording to the GRI Standards.
6. N O T E S O N T H E M E T H O D O L O G Y

79

6.2 REPORTING PROCESSThe information and indicators included aim to provide
a balanced por trayal of the Group's sustainability

SCOPE

per formance and initiatives.

This document is the Prada Group's eighth - third

The process of repor ting, collecting and aggregating

according to the GRI principles published in 2016 -the data was structured with the ultimate purpose ofSocial Responsibility Repor t and contains a description

enabling stakeholders to compare and comprehend fullyof the main initiatives under taken in fiscal year 2020,

the information contained herein.

i.e. from January 1, 2020, to December 31, 2020,
and the per formance trends for the three-year period

In this regard, at the beginning of 2019 the Group

2018-2020, with the exception of the environmental

adopted a procedure for the preparation of the Repor tdata relating to energy consumption and greenhouseof Social Responsibility ("Guidelines for the preparation

gas emissions for which only the 2019-2020 trend isof the annual Repor t of Social Responsibility") approved

repor ted; par ticularly significant initiatives and eventsby the Board of Directors, which indicates the principles

of fiscal year 2021 already known at the repor ting date

to be followed (materiality, measurability, impar tiality,

are also included.

coherence) and the responsibilities for drawing up the
document.

The per formance indicators were collected on an annual
basis and the repor ting cycle is set according to an

CALCULATION METHODOLOGY

annual frequency. The repor ting boundary is the same

The Prada Group involved all corporate functions toas the information repor ted in the 2020 Annual Repor t,

determine the contents of the 2020 Social Responsibility

or Prada S.p.A. and its subsidiaries, with the exception

Repor t. With respect to the calculation methodology:

of some data expressly indicated in the text.
‣ injury rate: it is the ratio between the total number
Prada S.p.A., together with its subsidiaries collectively

of injuries and the total number of hours worked x

the “Prada Group”, is a joint-stock company with1,000,000;

limited liability incorporated and domiciled in Italy with
headquar ters in Via Antonio Fogazzaro 28, 20135 Milan,‣ whereenvironmental

data

were

unavailable,

whose share capital is 80%-owned by Prada Holding

conservative estimates were used that resulted in

S.p.A., a company domiciled in Italy, while the remaining

choosing assumptions associated with the least

shares (20%) are listed on the Main Board of the Hongpositive environmental per formance for the Company.

Kong Stock Exchange.

The estimates mainly concerned the electricity
consumption of the shops / offices outside Italy and

PRINCIPLESFORENSURINGSUSTAINABILITY

to a lesser extent the consumption of natural gas forsome of the industrial assets;

REPORTING QUALITY
The attention given to topics such as the environment,
human rights and equal oppor tunities, and how topreserve

manufacturingknow-how,promotethe‣ greenhouse gas emissions were calculated using thefollowing emission factors:

culture and protect the ar tistic heritage, are values
that have always distinguished the corporate culture.

•emissions scope 1: emission factors taken fromThe Social Responsibility Repor t aims to represent thethe DEFRA (Depar tment for Environmental, FoodGroup in view of these values so that its stakeholders& Rural Affairs) database, updated to 2019 for thecan evaluate the impacts of Prada's activities from anrepor ting year 2019 and to 2020 for the repor tingenvironmental, social and governance standpoint. This

year 2020;

document was drawn up with the purpose of repor tingboth the successful aspects and the weaknesses of the•

Prada Group, with a view toward constant improvement.

per country taken from Confronti Internazionali Terna

6. N O T E S O N T H E M E T H O D O L O G Yemissions scope 2 - Location Based: emission factor

80

on Enerdata data - 2017 data for the reporting year 2019

Finally, in addition to carbon dioxide (CO 2 ) the otherand from Confronti Internazionali Terna on Enerdata

greenhouse gases (CH 4 , N 2 O, HFCs) were also considered,data - 2018 data for the reporting year 2020;

with the exception of Scope 2 for which the data is in
CO 2 .

emissions scope 2 - Market Based: Country

The 2019 data may differ from the data published in the

Emission Factor from the European Residual Mixes

2019 Social Responsibility Repor t due to the update ofof AIB (Association of Issuing Bodies) updated tothe calculation methodology and the emission factors,

2018 for the repor ting year 2019 and updated toalso following the preparation of a GHG inventory. It

2019 for the repor ting year 2020

when available;

should also be noted that the emissions deriving from thefor the United States and Canada it was consideredcars of the leased company fleet, previously classified

an average of the Residual Mixes published by thein Scope 3, have been included in Scope 1 in complianceGreen-E updated to the most recent version; for thewith the GHG Protocol.

•

other countries the emission factor taken from Terna
was considered.

6. N O T E S O N T H E M E T H O D O L O G Y

81

7. GRI CONTENT INDEX FOR“IN ACCORDANCE” CORE OPTIONINDICATOR

References toHKEx ESG
reporting guide

DESCRIPTIONREFERENCESOMISSIONSGENERAL DISCLOSURES
102-1

Name of the organization

Pag. 80

102-2

Activities, brands, products, and services

Pag. 5-13

102-3

Location of headquarters

Pag. 80

102-4

Location of operations

Pag. 5; 12-13

102-5

Ownership and legal form

Pag. 80102-6Markets Served

Pag. 5; 12-13

102-7

Scale of the organization

Pag. 5; 11-12; 14-17

102-8

KPI B1.1

Information on employees and other workers

Pag. 49-51

102-9

KPI B5.1

Supply chain

Pag. 11-12; 28

102-10Significant changes to the organization and its supply chain

Pag. 14-17; 80

102-11

Precautionary Principle or approach

Pag. 22-23; 80

102-12External initiatives

Pag. 22-23; 25-28

102-13

Membership of associations

The Group's main partnerships are with: Camera Nazionaledella Moda Italiana, Altagamma, Assonime, Confindustria
Toscana and The Fashion Pact.

102-14

Statement from senior decision- maker

Pag. 3-4

102-16

Values, principles, standards and norms of behavior

Pag. 23-24; 63-65

102-18Governance structure

Pag. 19-21

102-40

List of stakeholder groups

Pag. 77

102-41

Collective bargaining agreements

Pag. 59-60

102-42

Identifying and selecting stakeholders

Pag. 77-78

102-43

Approach to stakeholder engagement

Pag. 77

102-44

Key topics and concerns raised

Pag. 77-79

102-45

Entities included in the consolidated financial statements

Pag. 80

102-46

Defining report content and topic Boundaries

Pag. 77-79

102-47

List of material topics

Pag. 78-79

102-48

Restatements of information

Pag. 80

102-49Changes in reporting

Pag. 80

102-50

Reporting period

Pag. 80

102-51

Date of the most recent report

Pag. 80

102-52

Reporting cycle

Pag. 80

102-53

Contact point for questions regarding the report

Pag. 86

102-54Claims of reporting in accordance with the GRI Standards

Pag. 79102-55

GRI content index

Pag. 82-86

External assuranceThis document is not
submitted to external
assurance.

102-56

7. G R I C O N T E N T I N D E X F O R " I N A C C O R D A N C E " C O R E O P T I O N

83

MATERIAL TOPICS
INDICATOR

References toHKEx ESG
reporting guide

DESCRIPTIONREFERENCESOMISSIONSSPECIFIC STANDARD DISCLOSURESECONOMIC PERFORMANCE INDICATORSGRI 201: Economic Performance - 2016
103-1

G.D 8

Explanation of the material topic and its Boundary

Pag. 77-79

103-2

G.D 8

The management approach and its components

Pag. 14-17

103-3

G.D 8

Evaluation of the management approach

Pag. 14-17

201-1

KPI B8.2

Direct economic value generated and distributed

Pag. 17

GRI 204: Procurement Practices – 2016
103-1

Explanation of the material topic and its Boundary

Pag. 77-79

103-2

The management approach and its components

Pag. 28; 35-37

103-3

Evaluation of the management approach

Pag. 28; 35-37

Proportion of spending on local suppliers

Pag. 28; 35-37

204-1

KPI B5.1

GRI 205: Anti-corruption – 2016
103-1

G.D B7

Explanation of the material topic and its Boundary

Pag. 77-79

103-2

G.D B7The management approach and its components

Pag. 22-23

103-3

G.D B7

Evaluation of the management approach

Pag. 22-23

205-3

KPI B7.1

Confirmed incidents of corruption and actions taken

Pag. 23ENVIRONMENTAL PERFORMANCE INDICATORSGRI 301: Materials – 2016
103-1

G.D A2

Explanation of the material topic and its Boundary

Pag. 77-79

103-2

G.D A2The management approach and its components

Pag. 35-38

103-3

G.D A2

Evaluation of the management approach

Pag. 35-38

301-1

KPI A2.5

Materials used by weight or volume

Pag. 36

GRI 302: Energy – 2016
103-1

G.D A2

Explanation of the material topic and its Boundary

Pag. 77-79

103-2

G.D A2The management approach and its components

Pag. 42-47

103-3

G.D A2

Evaluation of the management approach

Pag. 42-47

302-1

KPI A2.1

Energy consumption within the organization

Pag. 42-43

302-4

KPI A2.3

Reduction of energy consumption

Pag. 44-46

GRI 305: Emissions - 2016
103-1

G.D A1

Explanation of the material topic and its Boundary

Pag. 77-79

103-2

G.D A1

The management approach and its components

Pag. 42-46

103-3

G.D A1

Evaluation of the management approach

Pag. 42-46

305-1

KPI A1.1
KPI A1.2

Direct (Scope 1) GHG emissions

Pag. 43-44

305-2

KPI A1.1
KPI A1.2

Energy indirect (Scope 2) GHG emissions

Pag. 43-44

305-3

KPI A1.1
KPI A1.2

Other indirect (Scope 3) GHG emissions

Pag. 45-46

305-5

KPI A1.5

Reduction of GHG emissions

Pag. 44-46

7. G R I C O N T E N T I N D E X F O R " I N A C C O R D A N C E " C O R E O P T I O N

84

INDICATOR

References toHKEx ESG
reporting guide

DESCRIPTIONREFERENCESOMISSIONSGRI 307: Environmental compliance - 2016
103-1

G.D A1

Explanation of the material topic and its Boundary

Pag. 77-79

103-2

G.D A1

The management approach and its components

Pag. 46-47

103-3

G.D A1

Evaluation of the management approach

Pag. 46-47

Non-compliance with environmental laws and regulations

In 2020 no cases of
non-compliance withenvironmental laws
and regulations havebeen recorded.

307-1

G.D. A1

SOCIAL PERFORMANCE INDICATORSGRI 401: Employment - 2016
103-1

G.D. B1

Explanation of the material topic and its Boundary

Pag. 77-79

103-2

G.D. B1

The management approach and its components

Pag. 48-52; 57-60

103-3

G.D. B1

Evaluation of the management approach

Pag. 48-52; 57-60

401-2

KPI B1.2

Benefits provided to full-time employees that are not provided
to temporary or part-time employees

Pag. 51

GRI 403: Occupational health and safety - 2018
403-1

G.D B2

Occupational health and safety management system

Pag. 60-62

403-2

G.D B2

Hazard identification, risk assessment, and incident
investigation

Pag. 60-62

403-3

KPI B2.3

Occupational health services

Pag. 60-62

403-4

KPI B2.3

Worker participation, consultation, and communication on
occupational health and safety

Pag. 60-62

403-5

KPI B2.3

Worker training on occupational health and safety

Pag. 60-62

403-6

KPI B2.3

Promotion of worker healthPag. 60-62

403-7

KPI B2.3

Prevention and mitigation of occupational health and safety
impacts directly linked by business relationships

Pag. 60-62

403-9

KPI B2.1

Work-related injuries

Pag. 62

GRI 404: Training and education - 2016
103-1

G.D. B3

Explanation of the material topic and its Boundary

Pag. 77-79

103-2

G.D. B3

The management approach and its components

Pag. 55-58

103-3

G.D. B3

Evaluation of the management approach

Pag. 55-58

404-1

KPI B3.1
KPI B3.2

Average hours of training per year per employee

Pag. 57

GRI 405: Diversity and equal opportunities - 2016
103-1

G.D. B1

Explanation of the material topic and its Boundary

Pag. 77-79

103-2

G.D. B1

The management approach and its components

Pag. 19-21; 51-55

103-3

G.D. B1

Evaluation of the management approach

Pag. 19-21; 51-55

405-1

KPI B1.1

Diversity of governance bodies and employees

Pag. 20; 50-51

405-2

G.D. B1

Ratio of basic salary and remuneration of women to men

Pag. 51-52

GRI 406: Non-discrimination - 2016
103-1

G.D. B1

Explanation of the material topic and its Boundary

Pag. 77-79

103-2

G.D. B1

The management approach and its components

Pag. 51-52; 61-62

7. G R I C O N T E N T I N D E X F O R " I N A C C O R D A N C E " C O R E O P T I O N

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INDICATOR
103-3
406-1

References toHKEx ESG
reporting guideG.D. B1
G.D. B1DESCRIPTIONREFERENCES

Evaluation of the management approach

Pag. 51-52; 61-62

Incidents of discrimination and corrective actions taken

In 2020 no incidents
of discrimination havebeen recorded.

OMISSIONSGRI 412: Human rights assessment - 2016
103-1

G.D. B4

Explanation of the material topic and its Boundary

Pag. 77-79

103-2

G.D. B4

The management approach and its components

Pag. 20-21; 23-24;
60-62

103-3

G.D. B4

Evaluation of the management approach

Pag. 20-21; 23-24;
60-62

412-1

G.D. B4

Operations that have been subject to human rights reviews or
impact assessments

Pag. 62

GRI 413: Local communities- 2016
103-1

G.D. B8

Explanation of the material topic and its Boundary

Pag. 77-79

103-2

G.D. B8

The management approach and its components

Pag. 14; 17; 46-47;
66-75

103-3

G.D. B8

Evaluation of the management approach

Pag. 14; 17; 46-47;
66-75

413-1

G.D. B8

Operations with local community engagement, impact
assessment, and development programs

Pag. 66-74

GRI 414: Suppliers social assessment - 2016
103-1

G.D. B5

Explanation of the material topic and its Boundary

Pag. 77-79

103-2

G.D. B5

The management approach and its components

Pag. 28; 63-65

103-3

G.D. B5

Evaluation of the management approach

Pag. 28; 63-65

414-2

KPI B5.2

Negative social impacts in the supply chain and actions taken

Pag. 63-65

GRI 416: Customer health and safety - 2016
103-1

G.D. B6

Explanation of the material topic and its Boundary

Pag. 77-79

103-2

G.D. B6

The management approach and its components

Pag. 12-13; 27-28

103-3

G.D. B6

Evaluation of the management approach

Pag. 12-13; 27-28

416-2

G.D B6

Incidents of non-compliance concerning the health and safety
impacts of products and services

Pag. 28

GRI 417: Marketing and labeling - 2016
103-1

G.D. B6

Explanation of the material topic and its Boundary

Pag. 77-79

103-2

G.D. B6

The management approach and its components

Pag. 27-28

103-3

G.D. B6

Evaluation of the management approach

Pag. 27-28

417-2

G.D B6

Incidents of non-compliance concerning product and service
information and labelingPag. 28

GRI 419: Socioeconomic compliance - 2016
103-1

Explanation of the material topic and its Boundary

Pag. 77-79

103-2

The management approach and its components

Pag. 22-23; 27-30

103-3

Evaluation of the management approach

Pag. 22-23; 27-30

Non-compliance with laws and regulations in the socialand economic area

Pag. 23419-1

G.D. B1
G.D. B2
G.D. B4
G.D. B6
G.D. B7

Additional information on this Social Responsibility Report may be requested to:
PRADA S.p.A. - Via Antonio Fogazzaro 28 - 20135 Milan (Italy)
e-mail: csr@pradagroup.com
7. G R I C O N T E N T I N D E X F O R " I N A C C O R D A N C E " C O R E O P T I O N

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PHOTO CREDITS:
pag. 1

ph. Alessandro Ciampi

pag. 3

ph. Brigitte Lacombe

pag. 4

ph. Brigitte Lacombe

pag. 6

ph. Agostino Osiopag. 8

Cour tesy Marchesi 1824

pag. 9ph. Brigitte Lacombe - Willy Vanderperre

pag. 10

ph. Brigitte Lacombe

pag. 15

Cour tesy Miu Miupag. 17

Luna Rossa Prada Pirelli | Studio Borlenghi

pag. 18

ph. Agostino Osiopag. 24

ph. Agostino Osiopag. 25

ph. Brett Lloyd (Church's)pag. 25

ph. Alecio Ferrari (Car Shoe)pag. 26

ph. Jamie Hawkeswor th (Prada)

pag. 26

ph. Call this Number/ Liz Collins (Miu Miu)

pag. 27

Cour tesy Church’s

pag. 29

ph. Agostino Osiopag. 30

ph. Gabriele Croppi

pag. 32

ph. Alessandro Ciampi

pag. 34

ph. Gabriele Croppi

pag. 36

ph. Agostino Osiopag. 39

Cour tesy Miu Miupag. 40

ph. Lerner t Engelber t

pag. 41

ph. Agostino Osiopag. 44

ph. Gabriele Croppi

pag. 45

ph. Gabriele Croppi

pag. 47

ph. Alessandro Ciampi

pag. 48

ph. Agostino Osiopag. 49

Cour tesy Church’s

pag. 52

ph. Attilio Caprapag. 53

ph. Alessandro Fresco Ceredes

pag. 54

ph. Koury Angelo

pag. 54

ph. Sarah Pooley

pag. 59

Cour tesy Car Shoepag. 60

Cour tesy Miu Miupag. 61

ph. Anna Catalanopag. 66

ph. Bas Princen - Cour tesy Fondazione Pradapag. 67

ph. Richard Valencia

pag. 68

ph. Rober to Marossi

pag. 68

ph. Andrea Rossettipag. 69

ph. Niccolò Quaresima

pag. 70

ph. Prudence Cuming Associates

pag. 73

Backstage Photographers: Daniel Arnold, Gigi Hadid, Phil Meech, Kevin Tachman

O ther pictures: Cour tesy Prada

87