(HONG KONG STOCK CODE: 1913)

2 0 19 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TAB L E O F C O N T E N T S

LETTER TO STAKEHOLDERS

3

1 . THE PRADA GROUP

History
Value chain
Creativity and excellence
Customer centricity
2019 Highlights

4
5
8
11
12
13

2 . RESPONSIBLE MANAGEMENT

16

1.1
1.2
1.3
1.4
1.5

2.1 Governance model and institutional
		 compliance
2.2 The Group’s ethical values
2.3 Risk management
2.4 Trademark protection
2.5 Collaborations and cooperations
2.6 Ties with the community

3. ENVIRONMENT

3.1 Preservation of the territory
3.2 Environmental impact mitigation
3.3 Responsible sourcing and use of		 resources

17
19
22
24
28
31
33
34
35
38

4 . H U M A N CA P I TA L
4.1
4.2
4.3
4.4
4.5
4.6
4.7

42
Workforce
43
Diversity and equal opportunity
45
Diversity and Inclusion Advisory Council 46
Prada Academy and skills development 46
Talent attraction and retention
49
Worker safety
51
Group’s qualified vendor list procedure 52

5 . CULTURAL INITIATIVES

54
5.1 Shaping a Sustainable Future Society 55
5.2 Fondazione Prada56
5.3 Prada Mode and “Conversations”
		 projects
60

6 . NOTES ON THE METHODOLOGY

6.1 The material aspects identification
6.2 The reporting process

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

62
62
66

68

L E T T E R T O S TA K E H O L D E R S

Nowadays sustainability topics, par ticularly environmental and social ones,
are shared at ever y level, ranging from individuals to institutions. Even moresignificant, they represent sound values that transcend all cultures.
Corporations, a basic component of civil society, as well as families and public
institutions must share full responsibility for the profound change underway
and must contribute to an improvement in the living conditions of the future
generations.
The Prada Group took on this commitment long ago with projects that have been
well received both by the local communities, where our manufacturing facilities
are located, and by a wider public that has par ticipated in our cultural initiatives,
sharing with us the fundamental values of our civilization: in essence, the beautyof nature and the grandeur of the human spirit.
Never theless, we believe that it is necessar y to continue to dedicate growing
effor ts to the pursuit of each of the challenging objectives in which the United
Nations has ar ticulated the project for a sustainable world where, as suggested by
one of the founding fathers of our culture, relationships among people and withnature are inspired by the principle of “frui” (enjoyment) and not “uti” (use).

Carlo Mazzi
Chairman of Prada S.p.A.
M i l a n , M a rc h 1 8, 2 0 2 0

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 ec i f i c l i ce n s i n g agreement s s t i pulated wi th i ndustr y le ade rs, and withth e a cqu 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 e re i t i s p o s i t i oned at th e h i gh es t l evel s of qu alit y.
At D ecem b er 31, 2 019, th e G roup’s product s were sol d i n 7 0 countr ie s wor ldwide
th rough 6 4 1 Di re c tl y O per ated Stores (DOS) and a sel ecte d ne t wor k of luxur yd e p a r tm en t s to re s , i n d ependent 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
acquired wide popularity across Europe.
In 1919, Prada became an official supplier to the ItalianRoyal Family. Since then, Prada has been able to display
the House of Savoy coat of arms and knotted rope design
on its trademark logo.
The Group saw a turning point in the development of
its activities at the end of the Seventies, when Miuccia
Prada,

Mario

Prada’s

granddaughter,launchedapar tnership with Tuscan businessman Patrizio Ber telli.
This par tnership combined creativity and business ideas
laying the foundations of the international expansionthat was to come. Patrizio Ber telli broke new ground in
the luxury goods sector, introducing a business model inwhich he kept direct control over all processes, applying
excellent quality criteria across the entire production
cycle. Miuccia Prada's creative talent and avant-garde
approach attracted the attention of the global fashion

In 1977, Patrizio Ber telli consolidated the productionindustry, while her ability to look at the world from an

resources that he had built up over the previous ten

unconventional vantage point allowed her not only toyears in the leather goods segment and obtained an

anticipate but, quite often, to set new trends.

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 toinclude the first footwear collection in 1979 and the first
womenswear apparel collection as presented in Milan

1. THE PRADA GROUP

5

in 1988. At the same time, a process of internalizationa worldwide recognized symbol of top quality British

begins with the openings in New York and Madrid,tradition and sophisticated elegance.

followed by London, Paris and Tokyo.
In 2001, the Prada “Epicenter ” store, designed in
In 1993 Prada made its debut in the men’s segment withcollaboration with Rem Koolhaas, opened on Broadway,

its first men’s apparel and footwear collection. That

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

same year, Miuccia Prada’s creative inspiration led to theproject whose purpose was to rethink the shopping

establishment of a new brand ― Miu Miu ― designed forconcept with a new approach and to try out innovative

women who are trendy, sophisticated and par ticularlyinteractions with customers. A second “Epicenter ” store

fashion-forward and aware of avant-garde. Miu Miu

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

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

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

footwear, eyewear and fragrances.

Prada acquired control of Car Shoe, a historic Italianbrand renowned for its exclusive car-driving moccasins.

Also in 1993, alongside their entrepreneurial activity,
Miuccia Prada and Patrizio Ber telli created “Milano

In 2003 Prada entered into a licensing agreement with

Prada Ar te”, then become “Fondazione Ar te”, to develop

the Italian eyewear manufacturer Luxottica, a global

their interests in ar t and culture in general.

leader in the eyewear industry which currently produces
and distributes eyewear under the Prada and Miu Miu

In 1997, inspired by his passion for spor ts, Patrizio

brands. Also in 2003 a new par tnership was established

Ber telli created the “Prada Challenge for the America’s

for the production of fragrances, which first release,

Cup 2000” sailing team. Prada’s leisure products, with

Amber, was launched in 2004.

the distinctive “Linea Rossa” (“red line”) logo, were also
launched in 1997.

In 2006, Miu Miu organized its first fashion show in
Paris to better characterize its own identity.

In 1999, the prestigious Church’s brand, established in
1873 in Nor thampton, became par t of the Prada Group;

The first Prada Phone by LG was launched in March

the investment was initially shared with a private equity

2007; it was the world’s first touch screen cell phone.

firm, and then Prada completed the acquisition in 2007.

The successful par tnership was renewed in 2008 and in

The brand, specialized in high-end leather footwear, is2011 with two fur ther releases.

1. THE PRADA GROUP

6

On June 24, 2011, Prada spa was successfully listed on
the Main Board of the Hong Kong Stock Exchange.
In March 2014, Prada spa announced the acquisition ofcontrol of the company Angelo Marchesi srl, owner ofthe historical Milanese patisserie founded in 1824, thus
marking the entry 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 brand began to take shapein September with the opening of the first patisserie in
via Montenapoleone, Milan.
2016 featured extensive manufacturing investments
leading to the completion of a new leather production site
and to the renovation of five factories between Tuscany
and Umbria, in Italy. The first construction phase of the
new logistics hub for finished products was completed
in Tuscany.
In 2017 a restyling plan of the Prada and Miu Miu stores
was coupled with a broad program of pop-up events to
fur ther suppor t retail activities. Also in 2017, the PradaGroup was admitted to the cooperative compliance

In October of 2019, Prada obtained full control of theregime with the Italian Revenue Agency introduced withretail network through the acquisition of Fratelli Prada

Italian Law Decree 128 of 2015.

spa, the company responsible for operating the Prada
monobrand stores in Milan under a franchising agreement

In 2018, besides the usual Milan and Paris fashioneffective for more than ten years. In December, Prada

shows, the Group launched two major events for the

spa and L’Oréal announced the stipulation of a long-termpresentation of pre-collections: Miu Miu Croisière atlicensing agreement for the creation, development andthe Hotel Regina in Paris and the Prada Resor t at the

distribution of Prada brand luxury cosmetic products. The

Piano Factory, where the Group's offices are located inagreement, effective from January 1, 2021, will enable

Manhattan; the latter was also broadcast live on Times

to connect with a more extensive clientele worldwide

Square's big screens. The same year, Prada officiallyand to maximize the brand potential and its alreadystar ted its adventure as Title and Presenting Sponsor ofstrong identity in the fragrance industry. Finally, during

the 36th edition of the America's Cup, as well as Mainthe year, the Prada Group announced the adoption of aSponsor of the sailing team of Luna Rossa, Challenger

fur-free policy.

of Records of the prestigious competition. Miuccia
Prada received, in the same year, the Outstanding
Achievement Award from the British Fashion Council
for her extraordinary contribution to creativity and theglobal fashion industry.
1. THE PRADA GROUP

7

1.2 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

Worker Safety

DISTRIBUTION

PRODUCTION

The Group's business model is based on a value

tradition and quality standards continue to attract

creation process that combines ar tisanal skills with thetalented people from all over the world who want to shareindustrialization of production processes. Thanks to thisthe creative experience. This results in teams involved at

integration the Group, leveraging on its stylistic skills,

all stages of the creative process: from fashion design tois able to translate avant-garde concepts into innovative

manufacture, from architecture to communication andexclusive products, combining production capacity withphotography, from store interior design to all unique andrigorous control over qualitative standards, also placing

special projects in which the Prada Group is involved.

par ticular emphasis on the continuous development ofknow-how and the protection of ethical values along

1.2.2 FASHION SHOWS AND COLLECTIONS

the entire supply chain.

The collections are inspired by the fashion shows, which
are always rich in content and impeccably executed,

1.2.1 CREATIVITY

transforming innovative fashion concepts into commercial

Creativity is the first step of the value creation process.

products.

Miuccia Prada, together with a qualified team ofdesigners, has the ability to combine intellectual

1.2.3 ORDER COLLECTION

curiosity, the pursuit of new and unconventional ideas,

New collections are unveiled at the Group's brand-

and cultural and social interests with a strong sense of

specific showrooms, where a number of presentations

style. This has made it possible to establish in Prada a

and analyses are held with in-house and independent

genuine “in house” design culture, also based on methodmerchandisers and buyers from all over the world.

and discipline, which guides everyone in the creative

By sharing the process that led to their creation andprocess.

producing variations through the lens of local markets,
each end consumer is given access to the innovation,

This unique approach enables Prada to anticipate andexclusivity and quality that are the hallmarks of theoften influence trends, continually experimenting withGroup’s merchandise.

new designs, fabrics, leathers and production techniques.
This experimentation and exchange of ideas are the1.2.4 SOURCING

essential components of the design content found in

Selecting the right suppliers is fundamental for achieving

each of the Group’s products. The time spent at thethe highest quality standards. Historically, the Group has“drawing board” and in the “fitting room” on researchalways worked with the best suppliers of raw materials,

and stylistic development for the brands is fundamental

in their own right leaders and reference points in their

to defining each collection in which apparel, footwear

sectors. In most cases, these are long-term relationships,

and accessories complement one another, defining a

initiated following a rigorous selection process, whose

consistent and representative image of the brands.

strict parameters are intended to ensure the highest
standards of technical and economical, as well as ethical

Prada’s flair and the strong appeal of the Company’s
1. THE PRADA GROUP

reliability. The Prada Group has always valued long8

term relationships built on steady interactions: these

consumers. Each industrial division employs technicians

par tnerships are crucial not only for the mutual growth

whose responsibility is to ensure the achievement ofand improvement but also for sharing a single, strategicthese goals through strict controls over incoming andobjective hinging on quality, excellence and the creation

outgoing materials and daily visits to external productionof value over the medium to long-term.

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

1.2.5 PRODUCTION

improvement.

The Prada Group’s products are manufactured in the 22
directly owned production sites (19 in Italy, 1 in England,

Prada has set up an Industrial Compliance Committee

1 in France and 1 in Romania), in addition to a wide

to ensure that the production and distribution of its

network of suppliers. Most of the Group’s par tners areproducts worldwide always comply with applicable

craft ar tisan workshops with extensive experience and alaws. The Committee’s objective is compliance with allstrong sense of tradition. They are provided with carefully

current legislation, and the development of standards

selected materials and with all technical specifications —and procedures that are often more stringent than thosefrom patterns to data sheets realized in-house — needed

required by law. The ultimate goal is to be proactive withto produce first the samples and then the merchandise.

respect to the entire system, made up of employees,

The Group’s experienced technicians provide constantclients, manufacturers and the outside environment as

suppor t to external manufacturers during all production

a whole.

phases.
1.2.7 DISTRIBUTION
The production sites represent the best expression of the

The retail network is regularly revised and improved in

manufacturing tradition of the Prada Group, harmonizingorder to offer a better customer experience.

the ability of combining traditional ar tisanal skills with

Over the years, the Group has expanded its distribution

state-of-the-ar t

designed

network to 641 Directly Operated Stores (DOS) in theto achieve and maintain uncompromised standards ofmost prestigious locations of the major international

excellence, quality and workmanship.

shopping destinations, consistent with the image,technologicalprocesses,

heritage and exclusivity of each brand. This extensive
WithintheframeworkoftheGroup's

industrial

network is a true asset for the Group as it showcases

development and integration strategy, in 2019 two

the new collections and represents a contact point withbuildings dedicated to carrying out quality control on

the customer. The stores serve as more than a primaryfinished leather goods and footwear products have beensales function as they are also an impor tant means ofcompleted and opened in the new Logistics Hub, incommunication; they are the true ambassadors of the

Tuscany (Italy). These new spaces are par t of a broader

brand, conveying its image consistently and categorically.

industrial development project aimed at the progressive

The DOS allow the Group to monitor in real time theinternalization of the most delicate production phases

sales per formance of the various markets for each brandin order to improve efficiency, strengthening process

and product category.

control, while preserving the quality and excellence
typical of Prada products. These sites stand out for the

The wholesale channel (depar tment stores, multi-brandquality of the spaces and for the high technology used

stores, franchisees and e-tailers) provides additionalby every single function.

venues selected for their prestige of location and enables
direct, immediate comparison with the market. In recent

1.2.6 CONTROL

years, the overhaul of this channel has gradually reduced

The Group employs considerable resources to ensure

the number of wholesalers, in keeping with the Group’s

excellence in the quality of its raw materials andretail strategies and brand positioning. In addition, theprocessing of its products, and in such manner alsoGroup's developments in the digital world have led toprotects the health and safety of the employees end

new par tnerships with top on-line retailers ("e-tailers").

1. THE PRADA GROUP

9

“Close observation and curiosity
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 — the only constant is change.
The transformation and innovationof conventions, underlying all
evolution, have led us to interact
with different cultural spheres bothnear and apparently far, helping us
capture and anticipate the spirit of
the times.
Today this is no longer enough:we must be the agents of change,
with the flexibility to translate thedemands of the market and society
into tangible actions that guide us
every day in our business.”

Miuccia Prada and Patrizio Bertelli101.3 C R E A T I V I T Y A N D E X C E L L E N C E

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

Retracing the history of the company, it becomes very

and balance between creativity and discipline, tradition

clear how incursions into seemingly distant worlds, suchand technological progress, craftsmanship and industrial

as cinema, architecture, literature, spor t and ar t, find a

production.

common ground in the creative processes. Creativity is
inexhaustibly linked to those special projects that over

Guided by the style inspiration of Miuccia Prada,time not only define images, fashion shows and store

universally recognized as a reference for the entire

settings, but also outline the collections that are joined

fashion industry, the team of designers and craftspeople

together by an extremely fluid relationship.

keep the Group’s values and brand identities alive, yetconstantly re-interpret them in a contemporary light

The strong integration of design, product development

without forsaking their unique concept.

and direct and outsourced production allows Prada tomaintain strong control over its know-how and quality

Fashion, fast and increasingly difficult to interpret,

standards throughout the supply chain.

requires a quick response to the prevailing cultural
trends. Therefore, each collection is like a snapshot that

The vast majority of the prototypes and samples, as

captures a specific moment of our time, but looking

well as a par t of the finished products and the mostcarefully at the aesthetics represented in the different

delicate phases of production, such as the controls overseasons, it is possible to perceive a superior continuity,

all raw materials and the product accessories (also fora leitmotiv that drives the style.

suppliers), and the cutting of hides, are produced at theGroup's own facilities.

1. THE PRADA GROUP

11

1.4 C U S T O M E R C E N T R I C I T Y
In 2019, the Retail Innovation depar tment, repor tingthe store visit. The plan involved dozens of the Group's

to the Marketing Direction, was set up to develop andemployees, selected transversally by market, role andinnovate the omnichannel experience of the Prada

experience, and will conclude in 2020 with the adoption

Group's customers, consistently with the organization'sof the necessary changes in strategies, processes andgrowth strategy.

technologies.
Also in 2019, an ar ticulate cross-channel system

With this new structure, the Group merges resources andto measure the customer experience (Net Promoter

skills into a single area to serve the customer 's central

Score) was developed and activated for the purpose

role. The purpose of the Retail Innovation depar tmentof continuously setting and designing strategies andis to foster a culture of innovation in the multi-channel

processes for improving the customer experience.

customer experience while striving to meet the sales
objectives in terms of both numbers and improved

Digital innovation, and more specifically the development

business metrics. The new depar tment is also responsibleof the e-commerce channel, is of prime impor tance forfor conveying to customers an effective understanding

the Retail Innovation depar tment. The Prada Group hasof the brand heritage, the product storytelling and thealready transformed this area, which remains central tosignificance of the buying experience, and ultimately

the implementation of a customer centric omnichannelof increasing the customer engagement and customer

strategy.

loyalty.
Lastly, wor th noting is the strategic redefinition of the role
theof the Customer Service depar tment: a new customer-

implementation of an ambitious plan to innovate theoriented operating model that allows a personalized,

value of the retail experience, considered not only as time

integrated and multi-channel relationship, inclusive ofspent in the store, but also in its spatial – physical andthe oppor tunity to live a shopping experience in line

digital - and temporal senses - before, during and afterwith the Group's values and standards.

One

of

the

1. THE PRADA GROUP

first

projects

under taken

was

12

1.5 2 0 1 9 H I G H L I G H T S€3.2

Billion*2019
Revenues€2,902Million*Economic value
distributed
to stakeholders
in 2019*

13,988

Employees

at December 31,
2019€ 3 0 2 Million
Investments
in 201962%641

at December 31,
2019

at December 31,
2019

Women

22

Industrial sites
at December 31,
2019

DOS

€ 1 3 Million*

Investments in thecommunity in 2019

Economic value distributed to stakeholders in compliance with GRI Standards 201 - 1 (reference at page 15).

2019 featured impor tant commercial decisions which,

The growth of full-price retail sales, namely the positive

relying on the excellence that consumers throughout themarket response, represents an impor tant achievement

world associate with the Group’s brands, led to obtainingof the whole action plan.

impor tant results under a strategy of long-term growth.
This result, which was par ticularly evident in the latter
Markdown sales were eliminated at the directly operated

months of the year, enabled to completely absorb thestores, and a stricter policy was adopted in the wholesale

losses in revenue following the termination of discounted

channel, both in terms of geography and volumes. Thesesales and ensuing from the social unrest in Hong Kong.

decisions, in addition to a product offer able to meettastes across generations, yet remained consistent with

The primary level par tnerships that the prestige of thethe brand identity, enabled to enhance the product value

brands can attract, also in different fields, represent an

and optimize the pricing choices across the channels.

impor tant tool for observing society and its changes.

1. THE PRADA GROUP

13

From a product standpoint, it is wor th mentioning two

Meanwhile, two new editions of “Prada Mode”, thehigh symbolic value capsule collections: “Prada Re-

traveling social club focusing on contemporary culture,

Nylon” and “Prada for adidas Limited Edition”. The firstcame to life, first in Hong Kong and then in London. For

one related to a limited edition of products realized

Miu Miu, two new episodes of the Women’s Tales filmwith re-generated nylon, to highlight the impor tanceseries were released.

of environmental awareness and responsibility and to

Consumer interaction with such an intensive creative

announce the ambitious plan to transition to the newwork was the focus of a communication plan thatsustainable material; the second one which paid tributeinvested considerable financial resources to ensure very

to the heritage of the two brands, and marked theextensive geographical and channel coverage of the

beginning of an impor tant business alliance for the two

communication content regarding products, the brandcompanies.

and the Group’s profile in general.

1. THE PRADA GROUP

14

Investments were made to complete impor tant projects
for bolstering the Group’s image and its store network. A
prestigious building was purchased in Madrid, strategic
for expanding the Spanish market, and the company
Fratelli Prada spa was purchased, thanks to which theGroup now fully controls the retail network. Impor tant
par tnerships with leading technology suppliers were
established to assist the marketing and merchandisingprocesses.
In 2019 the Patent Box Agreement was signed with the
Italian Revenue Agency, under which the Group obtained
an income tax benefit for the tax periods from 2015 to2019, based on the recognition of intellectual proper ties
as the result of investments similar to R&D.

20171

GRI-201 DISCLOSURE
DIRECT ECONOMIC VALUEGENERATED AND DISTRIBUTED

1
2
3

20182

20193

Amounts thousands of Euro

Economic Value Generated

3,062,866

3,152,185

3,232,054

Economic Value Distributed

2,885,678

2,901,378

2,901,673

Operating costs

1,753,276

1,839,685

1,968,912

Value distributed to Employees

696,759

725,230

752,049

Value distributed to Banks and Bond Holders

16,876

17,60812,044

Value distributed to Government Authorities

85,156

95,184

951

Value distributed to Investors

308,073

197,641

154,642

Value distributed to the Community

25,53826,03013,075

Economic Value Retained

177,188

250,807

330,381

12 months pro-forma from Jan. 1 to Dec. 31, 201712 months from Jan. 1 to Dec. 31, 2018
12 months from Jan. 1 to Dec. 31, 2019

The consolidated income statement for 2019, presented

operating costs for communication activities and by theaccording to the model of economic value generated

increase in labor costs following the increase of theand distributed defined by the GRI-201 disclosure (GRI

workforce in the sales area; the extraordinary income

Standards), shows a retained economic value of Euroalmost offset the value distributed to the Government

330.4 million, up by Euro 79.6 million compared to the

Authorities.

twelve-month period of 2018.
The difference is mainly attributable to a higher economic
value generated in 2019.
The economic value distributed remains unchanged
as the registration of the extraordinary income due tothe Patent Box (Euro 102 million) was offset by higher
1. THE PRADA GROUP

15

2 . RESPONSIBLE MANAGEMENTThe Group combines the distinctive elements of its know-how with principles inspiredby the enhancement of people, the protection of the environment, the respect of ethicalvalues and the promotion of culture, believing that in this way it can pursue economic
development for its own benefit and the interests of the communities and places where
it operates.

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 thea supervisory body, the Board of Statutory Auditors, andCompany consists of a set of rules, regulations, practices

an auditing and accounting control body, the audit firm.

and procedures structured to govern the Company

The Company has also adopted a system of proxies andestablishing efficient and transparent operations withinpowers based on criteria of responsibility and aimed at

the Group, with the aim of protecting the stakeholder

ensuring an efficient and regular per formance of therights and creating value for the communities. The

activity in accordance with the procedures adopted bycorporate governance model adopted by the Company

the Company itself.

is also in compliance with the applicable regulations,and in par ticular with the principles of the Corporate

With a view to achieving sustainable and balanced

Governance Code contained in Appendix 14 of the Listingdevelopment, the Company views diversity at the Board

Rules of the Hong Kong Stock Exchange.

level as an essential element to allow a constructive
dialogue to improve corporate governance. All Board

The Company has adopted a "traditional" governanceappointments are based on meritocracy and candidates

system, in compliance with the Italian Civil Code,are selected based on objective criteria and theconsisting of a management body, the Board of Directors,

professional contribution that each of them can make2. R E S P O N S I B L E M A N A G E M E N T

17to the operation of the Board of Directors itself. The
Board diversity policy has been considered and adopted
by the Board and encompasses a wide range of factors,

BOARD OF DIRECTORS
Executive Directors

Role

GenderAgeChairmanM> 50

including but not limited to gender, age, cultural andCarlo Mazzi

educational background, professional experience, skills,

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

knowledge and nationality.
The Board of Directors is made up of nine members andwas appointed at the Shareholders' Meeting held on April
27, 2018 for a term of three financial years (2018 -2020),
namely until the approval of the financial statements
for the year ending December 31, 2020. The Boardof Directors is composed of four executive Directors,

Non-Executive Directors
Stefano Simontacchi
Independent Non-Executive Directors

one non-executive Director and four independent non-

Gian Franco Oliviero Mattei

M

> 50

executive Directors. All Directors have distinguished

Giancarlo Forestieri

M

> 50

Sing Cheong Liu

M

> 50

Maurizio Cereda

M

> 50

themselves in their respective areas of exper tise andprovides valid suppor t to the Board of Directors in theirrespective functions.
The Board of Directors is responsible for the ordinary and

The Board of Directors is suppor ted by the mainly

extraordinary management of the Company. The Board

preliminary and advisory activity conducted by thehas the power to carry out all acts it deems advisable tocommittees it sets up, namely the Audit Committee,

implement and attain the Company’s corporate purpose,

the Remuneration Committee and the Nomination

except for those acts reserved by laws or by the By-

Committee. Each Committee is constituted for thelaws for the competence of the Shareholders' General

majority

Meeting.

including the role of Chairman.

In par ticular, the Board of Directors is responsible

The primary duties of the Audit Committee are to provide

for defining the overall strategy of the Group and for

the Board with an independent view of the effectivenessapproving annual budgets, extraordinary transactions,of the Company’s financial repor ting process and its

transactions with related par ties and all other initiatives

internal control and risk management systems.

byIndependent

Non-Executive

Directors,

with a strategic impact. The Board is also responsible forreviewing the operational and financial per formances of

AUDIT COMMITTEE

the Company and the Group, and it examines in detail

Role

GenderAgeChairmanM> 50

Giancarlo Forestieri

M

> 50

Maurizio Cereda

M

> 50

the economic per formances at each quar ter, updating,if necessary, the annual budget.
The Chairman of the Board of Directors is the Company’s
legal

representative,

andguarantees

theGian Franco Oliviero Mattei

properapplication of corporate governance practices andprocedures and supervises their application; he also
convenes the meetings and presides over the activitiesof the Board of Directors. The Chief Executive Officers
are responsible for managing the Company’s businessthrough the implementation of the strategies outlinedby the Board.
2. R E S P O N S I B L E M A N A G E M E N T

18

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

body whose primary duty is to ensure the functioning,

Maurizio Cereda

effectiveness and enforcement of the Company’s Model
The Nomination Committee is primarily responsible fordetermining and revising the policy for the nominationof Directors, assessing the independence of Independent
Non-Executive Directors on an annual basis, and makingof 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.
David Terracina

NOMINATION COMMIT TEE

Role

GenderAgeChairman

M

> 50

Role

GenderAge

Gianluca Andriani

M

30-50

ChairmanM> 50

Gian Franco Oliviero Mattei

M

> 50

Sing Cheong Liu

M

> 50

Carlo Mazzi

M

> 50

Gian Franco Oliviero Mattei

More detailed information on corporate governance isprovided in the Corporate Governance section contained

The recommendations made by the advisory committees
are regularly submitted to the Board of Directors fordiscussion and adoption.
The Board of Statutory Auditors is the supervisory bodyin charge of verifying compliance with applicable laws,
regulations and the By-laws, as well as compliance withthe principles of sound management and, in par ticular,
the adequacy of the organizational, administrative andaccounting structure adopted by the Company and theproper operation thereof.
The Shareholders' Meeting held on April 27, 2018
appointed the current Board of Statutory Auditors,
consisting of three statutory auditors and two alternate
statutory auditors for a term of three fiscal years(2018-2020), namely until the approval of the financial
statements for the year ended December 31, 2020.

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

in the 2019 Annual Repor t.

2.2 T H E G R O U P ’ S E T H I C A L V A L U E S
The Prada Group is committed to operating with fullrespect for the value of the individual and for the humanand workers' rights enshrined in Italian and internationalcovenants and declarations, such as the United Nations
Universal Declaration of Human Rights, the International
Labor Organization (ILO) Declaration on Fundamental
Principles and Rights at Work, and the Organization
for Economic Co-operation and Development (OECD)
Guidelines for Multinational Enterprises.
The Prada Group is committed to creating, developing
and strengthening cooperative ties with the communities
where it does business, in social and environmental
terms, as they are deemed necessary for inclusive growth.

19

2.2.1 CODE OF ETHICS

Sustainability is a founding element of the Group’s

The Prada Group considers respect for ethical principles

identity and is deeply rooted in the Company’s strategy,

to be a basic pillar of its values and success. The Groupeven from a communication point of view. During thebelieves in and operates with:year, the key management of the Company – the co-• 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 thedevelopment of the economic system;

CEOs Miuccia Prada and Patrizio Ber telli, the Chairman
Carlo Mazzi and two Directors, Alessandra Cozzani (CFO)and Lorenzo Ber telli (Head of Marketing and Head ofCorporate Social Responsibility) – deepened the mostdistinctive features of sustainability in Prada through ananalysis referring to the 17 United Nations Sustainable
Development Goals (SDGs).

• 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
for shareholders, employees, customers and for thecommunity as a whole.
The Group promotes knowledge of the Code throughvarious means such as online publications, directcommunications and, by procedure, as par t of the supply
or commercial agreement with most of the par tners, as
it is considered a prerequisite for the establishment of
all contractual relationships.
2.2.2 SUSTAINABILITY TARGETS
At the beginning of 2019, the Prada Group decided toformally commit to sustainable goals towards the entire
social community where it operates. To this end, theGroup drafted its Sustainability Policy, which has been
published and shared also through a series of videointerviews featuring the top management. These videos
describe the company’s commitment to sustainability

The commitment to numerous aspects of social andbased on the three priorities for action – people,

environmental development, such as the investment inenvironment and culture - where it believes it can provide

culture as an opportunity for aggregation, the cooperation

the greatest contribution in terms of returning value towith stakeholders, the impor tance of diversity andits own industry and to benefit society as a whole.

equal oppor tunities, the investment in new sustainable

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

20materials and the quality of working environments, andtheir harmonious integration with the local community,
has enabled Prada representatives to offer concrete
examples of the Group’s sustainability strategy.
The Sustainability Policy was approved by the Board of
Directors of Prada spa on March 15, 2019 and may beconsulted on the pradagroup.com website.

THE FASHION PACT
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, held at
the end of August 2019, 32 world leaders of the fashionindustry, including the Prada Group, signed the Fashion
Pact. This coalition, which sees luxury, fast-fashion,
spor tswear companies, suppliers and retailers working
side by side, aims to define concrete targets in three key
areas that are crucial for the preservation of the planet:“Our par ticipation to the
Fashion Pact initiative
is a natural progression of the
Prada Group commitment insustainability, a path madeof various projects in theenvironmental, cultural andsocial sphere.

the fight against climate change, the conservation of
biodiversity and the protection of the oceans.
The set of goals, which all the signatories are committed
to achieving over the next few years, are not only
declarations but represent a commitment that will be
pursued through action plans with solid scientific bases,
such as by joining the Science-Based Target 1(SBT)

initiative.
In October 2019, 24 new companies signed theagreement, bringing the total number of signatories to56, collectively representing 250 brands.

From now on, the possibility
to target these goals together
with other impor tant fashioncompanies represents
a concrete hope for asustainable development that
nobody could reach all alone.”
Carlo Mazzi,
Chairman of Prada S.p.A.

On this occasion, impor tant decisions were taken such as
the determination of the Fashion Pact’s governance andthe choice of priorities that each company is committed
to promoting within the overall coalition program.
During 2019, the Prada Group assessed the actions neededto achieve these objectives and star ted to implement an
action plan to meet the top-priority targets.

The purpose of the SBT initiative is to align the corporations’ objectives
relating to the reduction of greenhouse gas emissions with the data provided
by climatology.
1

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

21

“This transaction
demonstrates thatsustainability is a key element
for the development of the
Prada Group, increasingly
integrated into our strategy.
We are confident that thiscollaboration with Crédit
Agricole, a leader in its sector,
will help to extend the benefitsof a responsible business tothe financial world.”

This new facility is a 50 million Euro five-year termloan which interest rate can be reduced following theachievement of 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) for the
production of goods.
Independent third-par ty bodies will annually review theachievement of these objectives.

2.3 RISK MANAGEMENT
Given the complex regulatory environment, the PradaGroup assigns various depar tments and hires external

Alessandra Cozzani,

specialists to keep abreast of changing laws and regulations

Chief Financial Officer of Prada S.p.A.

so that it can adapt its procedures in a timely mannerand reduce non-compliance risks to a minimum levels.
The Group has structured the internal control system as aprocess carried out by the governing bodies of the Group’s

SUSTAINABLE FINANCE
asubsidiaries, by management and by the corporation in

Sustainability Linked Term Loan with Crédit Agricole

general, with a view to providing reasonable cer tainty

Group, becoming the first Italian company in the luxury

that control objectives will be met.

On

November

2019,

the

Prada

Group

signedsector to under take such initiative. The operation,
while representing a small share of the Group’s total

More specifically, the Board of Directors of Prada spa,indebtedness, fits per fectly into a much wider framework

referring to internationally recognized models such as theof sustainability integration into the corporate strategy.

CoSO Repor t (Committee of Sponsoring Organizations of
the Treadway Commission - international best practices),is engaged in the continuous refinement of the Internal
Control and Risk Management systems by checking theoperation of its main components consisting of:• control environment;• risk assessment;• control activities;• information and communication;• control system.
The internal control system helps ensure protection of
the Company's assets, the efficiency and effectiveness of
its processes, the reliability of the information provided
to its governing bodies and the market, and compliancewith laws and regulations as well as by-laws and internal

Prada Scandicci, LEED Cer tified plant

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

procedures.
22

The bodies involved in internal control and risk

communications of behavior that could constitute amanagement are the Board of Directors, the Audit

violation of the Organizational Model, for instance inCommittee, the Supervisory Body and the Board ofcontrast with the principles set out in the Code of Ethics

Statutory Auditors, as well as the entire management,

or with applicable laws and regulations.

which has the primary task of implementing all thenecessary processes and procedures to achieve theDuring the financial period, the Company did not also

Company’s goals minimizing the risks for the organization

record any material instances of non-compliance withthrough an appropriate system of controls.

the applicable laws and regulations regarding bribery,
extortion, fraud and money laundering in the performance

Moreover, the Internal Auditing depar tment works inof the activities of the Prada Group.

close collaboration with the aforementioned bodies,
which, in addition to the typical assurance activities,

Risk assessment consists of identifying and analyzing

assists the Board of Directors and the Audit Committee

factors that could compromise the proper conduct ofin risk management activities among others.

company activities and must also extend to the analysisof the process that determines how those risks should beWith par ticular reference to production and logistics

avoided or mitigated. The fact that economic, regulatory

issues, the Industrial Compliance Committee sets

and operating environments are in constant flux raises

guidelines for implementing laws and regulations thatthe need for mechanisms that help identify and deal

affect the impor ting and expor ting of raw materials

with the risks posed by such changes.

and finished goods, while providing various forms ofindustrial compliance assistance to the manufacturing

For the Prada Group, risks can be broken down as follows:

divisions.

1. risks relating to the international luxury goods market
or related to the general state of the economy, theIn 2019, with the aim of increasing the integration

protection of intellectual proper ty rights, image andof the control activities carried out along the supply

brand recognition, and the ability to anticipate trends

chain, a multi-function working group has been set

and respond to the changing tastes of consumers.

up to strengthen the on-site inspections of the GroupThe management of this type of risks, that can besuppliers in order to ensure human rights protection

defined typical in the sector, falls within the sphere ofand fair working conditions.

sustainability according to its broader meaning, which
also includes economic issues related to the company's

In compliance with the provisions of Legislative Decree

ability to create long-term value, in addition to social

n. 231 of June 8, 2001, the Company has established aor environmental ones. Fur ther description of theseSupervisory Body whose primary attribution is to ensure

issues is provided in the description of the most relevant

the functioning, effectiveness and implementation of

topics according to the Global Repor ting Initiative (GRI)

the organizational, management and control model

standards which, for the Prada Group, basically mean:

adopted by the Company pursuant to the aforementioned

economic per formance (chapter 1, paragraph 5),

legislative decree for the control of risks and thetrademark protection (chapter 2, paragraph 4),

prevention of crimes in different areas and of different

the search of excellence (chapter 1, paragraph 3)

nature - including but not limited to bribery and moneyand digital transformation (chapter 1, paragraph 4);

laundering - by Directors, employees and third par ties
involved in the Company’s activities.
All the employees can repor t anonymously to theSupervisory Body through an e-mail address available
on the Company’s Intranet events or behaviors that
do not meet Group’s standards. In 2019 there were no
2. R E S P O N S I B L E M A N A G E M E N T

2. risks specific to the Prada Group relating to theimportance of key personnel, strategy implementation,
outsourcing, legal and regulatory compliance andprocessing of data and information. Within thiscontext, the risks related to sustainability are mainly
associated with customer satisfaction and healthand safety (chapter 3, paragraph 3.3) and respect of23human and labor rights both within the organization

the competent authorities and adopts preventative andand along the supply chain (chapter 4);

defensive measures worldwide to protect its IP rights on

3. financial risks specific to the Prada Group relating to
exchange rate fluctuations, interest rate fluctuations,credit risk and liquidity risk.

all on-line and off-line channels.
The Prada Group regularly monitors registrations by third
par ties and any possible misappropriation of trademarks,

Fur ther information is provided in the financial review

designs and domain names identical to or that could be

and corporate governance sections of the 2019 Annual

confused with its own distinctive marks and products.

Repor t.

Any violation is tackled through appropriate action withthe competent authorities.

More information is to be found in the 2019 Annual
Repor t - Note 27 "Provisions for risks and charges" -The Group cooperates on a daily basis with the Italian

specifically for updates on investigations and disputes

and international customs agencies to assist the blocking

with third par ties or authorities that involved the Pradaof market entries of unauthentic products, and with theGroup in the period.

police and tax authorities in order to have counter feit
products existing in the market confiscated, distribution

2.4 T R A D E M A R K P R O T E C T I O N

and production processes rebuilt, and the individuals
and organizations responsible brought to justice. In

The Prada Group is actively committed to protecting its

pursuing such objectives, the Group shares relevant

intangible assets. With a specialized internal depar tment

information with the authorities and par ticipates in

dedicated to Intellectual Property (IP), the Group registers

training events on the Company's brands and products,

its trademarks, designs, patents and domain names withso that the authorities may have everything at their

Prada adver tising campaign - Fall Winter 2019
2. R E S P O N S I B L E M A N A G E M E N T

24

Prada adver tising campaign - Fall Winter 2019

Miu Miu adver tising campaign - Fall Winter 2019
2. R E S P O N S I B L E M A N A G E M E N T

25

Church's adver tising campaign - Fall Winter 2019

disposal 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, the Union des Fabriquants, and the
Quality Brands Protection Committee (QBPC), to bringsuch issues to the attention of the institutions, the publicand consumers.
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 that illegally
adver tise the sale of counter feit products.
Car Shoe adver tising campaign - Fall Winter 2019
2. R E S P O N S I B L E M A N A G E M E N T

26

Pasticceria Marchesi 1824 - London, 117 Mount Street
2. R E S P O N S I B L E M A N A G E M E N T

27

Thanks to close collaboration with the authorities, thethe latter, CNMI is suppor ting a study, carried out infight against counter feiting under taken by the Prada

collaboration with a Fair Wage NGO, whose purpose isGroup led to, in 2019 alone on a global level, theto assess and describe the working conditions generally

seizure of more than 250,000 counter feit products in

adopted along the Italian manufacturing supply chain.

off-line markets, the deletion of 130,000 unauthorized
adver tisements, the deactivation of more than 8,000

The study will provide a faithful representation of

websites with illegal content, and the removal of more

the Italian luxury sector ’s supply chain, and offer anthan 58,000 social media posts.

impor tant business tool for any improvements.

2.5 C O L L A B O R A T I O N S A N D

2.5.2 COOPERATIVE COMPLIANCEC O O P E R AT I O N S

The Prada Group believes that responsible corporate
governance calls for adopting collaborative approaches

Par tnerships represents a form of strategic collaborationthat can improve the common value creation process whilefor value creation with stakeholders who are aligned

maintaining the balance between business objectives andwith the Group's principles and values.

stakeholders’ expectations. Accordingly, the Group’s tax
strategy for risk prevention uses an open and continuous

The Group's cooperation with stakeholders such as tradedialogue with tax authorities of all the jurisdictions

unions and tax authorities, and with par tners outside

in which it is present, built on full transparency andits specific scope of business such as universities andcooperation. In 2017, aiming to preventively manage

large international institutions, is considered key to thepotential tax risks and in accordance with the Italianestablishment of common values based on a balancetax authorities, the Prada spa Directors approved

between business objectives and societal demands.

par ticipation in the cooperative tax compliance program(Ar t. 3 et seq. under Italian Legislative Decree 128 ofHere as follows, some of the most significant par tnerships

2015), to which a limited number of Italian companies

in place at December 31, 2019.

have been admitted.

2.5.1 NATIONAL CHAMBER FOR ITALIAN FASHION (CNMI)

Moreover, following the admission to such program,

The Prada Group actively par ticipates in the initiatives

the Italian tax authorities invited Prada spa to joinadvanced by the National Chamber for Italian Fashion,

the international “cooperative compliance” program

which promotes the development of the industry in Italy

launched in 2017 and coordinated by the Organization

and abroad. Since 2010, this institution has untaken

for Economic Cooperation and Development (OECD)a strong commitment towards sustainability, seeking

for the management of potential tax risks (International

to suppor t its members in the transition toward more

Compliance Assurance Program - ICAP).

responsible management of their businesses and supply
chains, firmly believing that sustainability is a key

As par t of the first ICAP project star ted in 2018 andcompetitive lever for consolidating the leadership ofsuccessfully

Italian fashion in the global industry.

subsidiaries shared extensive information with the tax

concludedin

mid-2019,

theGroup’sauthorities of their respective countries, namely Italy,
The Prada Group is involved in many of CNMI’s initiatives,

the United States, the United Kingdom, Canada andwhich consist of par ticipation in numerous round tables

Australia.

to create tools and shared standards for the benefit of
the entire system.

At the end of 2019, two other companies of the Group,
based in Germany and the Netherlands, joined the second

The initiatives relating to the use of chemicals in

ICAP project, which formally star ted in December 2019

production processes (chapter 3, paragraph 3.3) and social

and will presumably conclude by the end of 2020.

sustainability are par ticularly significant. Concerning

Long-term cooperation with the tax authorities of the

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

28

Opening address of Chairman C. Mazzi
to IMLux master 's students, Politecnico Di Milano

countries in which the Group operates is also the basis

process that collected more than a thousand star tups,of several existing unilateral and bilateral tax rulings,

Star tupbootcamp andwhich are systematically renewed.

identified thir ty of them with strong technologicalits

corporate

par tners

haveinnovation and sustainable content in the fashion sector.
In addition to these activities designed to avoid tax

Star tupbootcamp will suppor t the chosen star tups withdisputes, the Group’s subsidiaries always prefer tomentoring activities in order to accelerate their growth.

resolve any disputes involving tax assessments throughamicable proceedings (Mutual Agreement Procedures or

2.5.4 UNIVERSITIES AND RESEARCH ORGANIZATIONS“MAP”), which can settle international double taxation
disputes.

School Of Management Of Politecnico Di Milano
Within the scope of its close par tnership with the

2.5.3 STARTUPBOOTCAMP FASHIONTECH

Politecnico di Milano, rooted in the cultural activities

In June 2019, the Prada Group announced the star tshared during the “Shaping a Future” conference cycleof a three-year par tnership with Star tupbootcamp, the(chapter 5, paragraph 1), in the 2019/2020 academic

leading European star tup accelerator with international

year the Prada Group became a main sponsor of the

programs, regarding the launch of a global innovation

International Master ’s degree in Luxury Management

center in Milan dedicated to the fashion sector.

(IMLux) together with the French Champagne Taittinger
Group. This combination of Italy and France, the mostThe

par tnershipstar ted“FashionTech”

impor tant countries in the world for high-end products,

initiative, where Prada par ticipated as a Suppor tingis also reflected in the structure of the master ’s degree

Par tner.

- taught in English - which allows its students to accessWith this initiative, and following a global selection

a double degree.

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

withinthe29During the first semester, the students attend the Master

continuity to the scientific legacy of Gianni Bonadonna,of Science program at the Neoma Business School in

the great oncologist who innovated every aspect ofReims, while in the second semester they follow the firstcancer research and treatment, enabling enormous

Level Master ’s Degree courses at Politecnico di Milano.

progress and impor tant clinical success to be achieved

The whole context is highly international consideringin the treatment of neoplasia.

the origin of the students, universities and corporate
par tners.

During 2019, the Foundation created the “Istituto
Diffuso” for innovative cancer treatment research and

The two companies sponsoring the master ’s degree will

promoted the “Gianni Bonadonna fellowship”.

contribute to the educational program and, from the

The purpose of the “Istituto Diffuso” is to foster

perspective of cooperation, will ask for the contribution

coordination dedicated to the planning and conductingof students to solve problems and challenges of realof innovative clinical studies regarding cancer treatment,interest for the sponsors themselves. The Prada Groupand thus academic research on new drugs or treatments.

will also interact with the students and will bring its
managers to the classrooms of Politecnico.
The two sponsoring companies of the master willintervene along the educational path and, with a view tocooperation, will use the contribution of the students
to face problems and challenges of real interest for thesponsors themselves. The Prada Group will also interact
with students through direct classroom testimonials
from its managers.
School of Management of Yale University
In 2019, Prada continued to collaborate with the Yale
School of Management. During the third edition of the“Shaping a Future” conference cycle (chapter 5, paragraph1), and thanks to close collaboration between the par ties
before the event, the Yale Center for Customer Insights(YCCI) and the Prada Group presented the results ofan intergenerational survey dedicated to understanding
the impact of sustainability on consumer behavior.
More in detail, the research aimed to assess the sensitivityof consumers of premium products to some of the main
dimensions of corporate social responsibility, such as
the respect for human rights, the promotion of diversity
and inclusion, and the fair treatment of stakeholders.
Gianni Bonadonna Foundation
The Gianni Bonadonna Foundation star ted operating in2019 following the official presentation of an agreementwith the Prada Group – the suppor ting par tner – in
October 2018.
With this commitment, the Group intends to provide
2. R E S P O N S I B L E M A N A G E M E N T

Hackathon Yale University 201830

To this end, a number of agreements with various

par tners: slightly over 52% of them have been working

pharmaceutical companies were at an advanced stage

with the Group for more than 10 years, and around 16%of preparation at the end of 2019.

for a period of time between 5 to 10 years.

The fellowship program, which benefits from an agreement

The focus on Italian origin is demonstrated by theconcluded with the Italian Cancer Research Association

procurement data regarding leather for footwear and(AIRC), will award scholarships to oncologists after

accessories. In terms of quantity, in 2019, 78% of

they have obtained their specialized qualifications or to

the leather came from Italian tanneries renowned foryoung doctors who have star ted their final year of thetheir quality and long tradition. Another 4% has been

postgraduate school of oncology. Agreements have alsopurchased from suppliers based in the rest of the

been stipulated with various international institutions

European Union, while the remaining 18% came from

where candidates will be able to carry out the program

outside the European Union.

agreed with the host institutions.
Leather (quantity)

2.5.5 TRADE ASSOCIATIONS

4 % europe

The Prada Group is a member of trade associations,
including

Assonime,

Confindustria

Toscana

1 8 % rest of the world

and

7 8 % i ta ly

Altagamma, so that its interests for the areas andcommunities where it operates may converge efficiently
Leather Italy (quantity)

with those of other stakeholders. The constant exchange
of knowledge, information and contacts guaranteed by

6 % i ta ly - o t h e rthese associations constitutes an impor tant information

1 2 % i ta ly - s o lo f r a

and relational asset.

4 0 % i ta ly - a r z i g n a n o

Most recently the Group joined the Altagamma Foundation

4 2 % i ta ly - s a n ta c r o c e

as a Par tner.
The clusters of Santa Croce (Tuscany) and Arzignano
Altagamma brings together 110 high-end Italian cultural(Veneto) accounted, respectively, for 42% and 40% of

and creative companies, promoting Italian excellence,

all leather purchased by the Prada Group in Italy. These

uniqueness and lifestyle throughout the world. Its mission

are specialized leather districts that set the standards

is to contribute to the growth and competitiveness offor the high-quality productions around the world.

the Italian cultural and creative industry. Altagamma’s
members are active in the fashion, design, jewelry, food,Also for outsourcing, the Prada Group stands out for its

hospitality, automotive and wellness sectors.

strong ties with the ar tisanal craft experience typical of

2.6 TIES WITH THE COMMUNIT Y

the Italian tradition.
In
370

The international success of the Prada Group is deeply

2019

the

Group

manufacturing

workedsuppliers 3

with
in

approximately

additiontotheaforementioned 670 suppliers of raw materials.

rooted in Italy, star ting from its supply chain. In 2019 theGroup purchased materials from about 670 suppliers 2 ,Around 85% of these manufacturing suppliers are locatedaround 80% of them located in Italy, around 12% in

in Italy, around 8% in the rest of the European Union

other European Union countries and the remaining 8%

and the remaining 7% in non- EU countries. Around 42%

in other Non-EU countries. In many cases the materialsof the manufacturing suppliers have been collaborating

are produced expressly for Prada, according to strict

with the Group for more than 10 years and around 25%

technical and design specifications, by long-establishedfor 5 to 10 years.

For the purposes of this analysis, only raw materials suppliers with whichpurchases of more than Euro 30 thousand were conducted in 2019 have been
considered.
2

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

For the purposes of this analysis, only manufacturing suppliers with whichpurchases of more than Euro 30 thousand were conducted in 2019 have been
considered.
3

31

Tannerie Limoges

These are relationships built on mutual trust, characterized

regulates the rights, guarantees and obligations of all

by working together on a daily basis with a view toward

workers belonging to a specific sector, in terms of pay

constant improvement and learning.

and regulatory provisions, such as guaranteed minimum
wages, working hours, holidays, seniority treatment,

On the whole, approximately 82% of the Group's

treatment of over time, holiday and night-time work

industrial suppliers are located in Italy and about 51% of(with the related pay increases), the duration of the trial

them have been working with the Prada Group for more

period and notice period, sick leave, maternity leave,than 10 years; from the beginning a strategic choiceaccident leave and the disciplinary code. The CCNL isfor Prada which has always considered a competitive

negotiated and renewed every three years, thus allowing

leverage to root its supply chain in those territories

for wage and regulatory adjustments in line with thewhere the manufacturing sector represents an excellence

Italian economic and legislative changes.

appreciated all over the world.
Further information on the quality of working relationships
A supply chain localized in Italy also constitutes an asset

with suppliers and people’s protection along the value

from a social responsibility perspective. The working

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

conditions of the employees are regulated by the collective
labor agreements in force in Italy. The National Collective
Labor Contracts (CCNL) supplements the law and is
stipulated at a national level, for commodity sectors(Trade, Metalworking and Mechanical Engineering,
Footwear and Leather Goods, etc.) between trade unions
and associations representing companies. The CCNL
2. R E S P O N S I B L E M A N A G E M E N T

32

3 . ENVIRONMENTThe Prada Group considers environmental protection a very important matter, forwhich it engages in and cultivates virtuous behaviors that contribute to sustainablegrowth and are examples of good practice for the entire industry. This commitment isa key element of the Code of Ethics and is emphasized in the Group's Sustainability
Policy, guidelines applied without distinction both within the organization, by constantly
raising staff awareness, and with third parties working with the Group.
The principles also appear in the intents of the Fashion Pact (Chapter 2, paragraph2.2), whose main objectives are stopping global warming, restoring biodiversity andprotecting the oceans.
The Prada Group did not receive any significant fines or non-monetary penalties
concerning the environment during the year.

3 . 1 P R E S E R VAT I O N O F T H E T E R R I T O R Y

Respect for places has been a guiding principle forar tisanal know-how, foster the technical development

the Prada Group from the star t. Reducing land take,of production processes and improve the quality ofrenovating existing structures and working toward

the work environments. Many renovations and verybuilding requalification have inspired the decisions madeimpor tant works were carried out to refurbish the spaces.

in more than thir ty years of industrial development.

The projects are described in the Social Responsibility

With the belief that new construction can impact an

Repor ts from 2015 on.

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

When the Prada Group is unable to restore existingpurchase and salvage existing buildings. Indeed, the few

buildings, it hires masters of architecture such as Guido

newly constructed buildings fit in harmoniously with theCanali, known for his sustainable architecture, to ensure

local areas, without causing disruption.

results that have a low impact on the territory and thatcreate a new landscape that fits harmoniously with the

The Prada Group has more than 200,000 m 2 of production

surrounding area.

facilities and warehouse spaces, located almost entirely
in Italy. Among these, six are new buildings - four of the

Facilities are designed and conceived as workplaces ofmost impor tant were designed by Guido Canali - andpeople and for people, and to respect nature faithfully.

many are cases of renovations of industrial buildings

Those in Montevarchi and Valvigna, Tuscany, and inand degraded sites that had been abandoned for many

Montegranaro, in the Marche region, were designed

years.

specifically with the environment in mind; the volumes

In 2015 a long-term investment plan was launchedhave a contained visual impact also thanks to the

aimed at re-qualifying and reorganizing the Group's

vegetation and well inser ted in the landscape. This

manufacturingfeature makes them fully fledged “garden factories”.

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

facilities

in

order

to

preserve

the34The factories, with their wide, bright spaces enclosed by

The green areas occupy more than 50% of the entire

hanging gardens, are intended to have a discreet external

sur face of the structure, maintaining intact the vegetation

image, but also distinctive interiors experienced by thetypical of the Mediterranean scrub to preserve the variety

employees.

of local flora and insulate the buildings.

Among the projects designed by Guido Canali, theIn terms of energy efficiency, the logistics hub is alogistics hub in Levanella (Tuscany) is the focal pointreference point for the Group's cutting-edge industrialof a major restructuring project regarding outboundstructure since it was built with a photovoltaic system,

logistics. The hub was designed to be responsibly

LED lighting, an energy-saving smar t home system, andintegrated into the territory thanks to border plantings,

a geothermal plant.

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

3.2 ENVIRONMENTAL IMPACT MITIGATION
The main direct impact of the Prada Group's businessbusiness on climate change. More specifically, theoriginates from the use of energy for offices, factories,

Group carries out energy efficiency actions to cut its

logistics centers and stores in the various par ts ofenergy consumption and uses green energy to reduce

the world. Prada is committed to reducing its energy

the related emissions.

consumption so that it can limit the impact of its

In 2019, the Prada Group achieved LEED - Leadership in Energy and Environmental Design - Goldcer tification for 18 stores located in the Asia Pacific region, in China and one in Thailand.
As of December 31, 2019 the Group had 36 LEED-cer tified stores and one
LEED-cer tified factor y in Scandicci (Tuscany, Italy), a total of 37 cer tifications andexpects to obtain additional ones in 2020.

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

35

3.2.1 ENERGY EFFICIENCY

Relamping project
From December 31, 2018, thanks to an impor tant projectHeating and air conditioning systems

underway since 2014, all Group’s directly operated stores

During 2019 investments continued to be made to improveused exclusively LED lamps in all the store lighting.

the energy efficiency of the Prada Group's historicfactories, such as the one in Levanella (Montevarchi),The direct and indirect energy savings obtained are

Tuscany. A new supervision system was installed thatsignificant compared with the previous technologies

has led to less methane gas and electricity consumption;used (fluorescent and halogen lamps). The process of

it will result in regular savings of more than 502.68 tons

conver ting to LED also led to less waste disposal becauseof CO 2 . In addition, work done on the central heating

LED lamps last much longer.

system of the store in Via Condotti, Rome, enabled to

The Prada Group constantly updates this project in order

reduce both the heating and the electricity consumption.

to keep pace with technological advances.

Alongside such initiatives, corrective actions continue

3.2.2 GREEN ENERGY

to be carried out on all systems to optimize the power

In 2019 the Prada Group ensured that 100% of the

on/power off timing, and to raise staff awareness about

electricity for all its Italian offices was supplied

proper and rational electricity use.

by sustainable sources with Guarantees of Origin.
Moreover, renewable energy supply agreements were

Energy Box projectsigned for some foreign subsidiaries, where permitted

In 2017 the Group launched the "Energy Box" project,

by the markets. During the year, these sourcing policies

which is a long-term plan for factories, offices andeliminated the emission of 20,000 tons of CO 2 .

stores aimed at optimizing energy consumption. The
project is based on the installation of multi-meters thatAt December 31, 2019 the Group had 10 photovoltaic

allow for constant monitoring and for understanding

systems, most of which were installed on factory

consumption information through accurate comparisonsrooftops. The systems, which produce 3,066,534 kWh,between periods. The data obtained from these tools

enabled to save 1,101 tons of CO 2 emissions and toenables to reduce waste, identify discrepancies between

cover 5.9% of the Italian factories' industrial demands.

actual consumption and billed consumption, improve

The Group consumed internally 2,014,207 kWh of themaintenance and simplify budget forecasts. During theenergy produced by the photovoltaic systems, thereby

year more monitoring systems were installed, and by

preventing the emission of 723 tons of CO 2 that would

December 31, 2019, there were 481 installed multi-

have occurred if electricity supplied by the Italian gridmeters.

had been used.

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

36

3.2.3 ENERGY CONSUMPTION AND CO 2 EMISSIONS

it takes into account the share of cer tified electricity

In 2019 the Prada Group repor ted electricity consumption

purchased from renewable sources.

of 143,000 MWh, down by 3.9% over the three-year
period, and with a consumed share of self-produced

C O 2 E M I S S I O N S - S C O P E 2 ( t o n C O 2)

electricity from photovoltaics equal to about 2,000 MWh.

63,973

2017

55,889
Electricity consumption (MWh)
2017

773

148,108 (99.5%)

2018

1,413

142,154 (99%)

2019

148,881 M Wh

self-producedp h o t o v o lta i c e l e c t r i c i t y

201842,580143,567 M Wh
143,056 M Wh

141,042 (98.6%)

2,014

60,164

60,121

2019

40,409purchased
electricity

lo cat i o n b a s e dmarket based

With regard to fuel consumption (diesel and kerosene)

In 2019, indirect energy emissions, according to theand natural gas, mainly used for means of transpor t"market-based" method, decreased compared to both(owned and leased) and for heating, there is a decrease2017 (-27.7%) and to 2018 (-5.1%), while the amount ofcompared to 2017 of the kerosene consumption (-19.7%)

energy purchased from renewable sources increased forand gas consumption (-5%).

the foreign subsidiaries. The other indirect emissions(scope 3), relating to the fuel consumption of the company
fleet, amounted to 1,960 tons of CO 2 , down compared

Energy Consumption

to 2017 (-17.6%).
2,367,905 m 3

2017

1,203,669 L
2,281,135 m

2018

3

989,924 L
2,248,425 m 3

2019

9 67,212 Lgas( m 3)

diesel and kerosene(l)

The CO 2 emissions corresponding to the consumptionof gas and fuel (scope 1) amount to 5,000 tons of CO 2 ,down by 7.6% compared to 2017.

CO 2 EMISSIONS (ton CO 2 )

2017

2018

2019

Direct emissions (Scope 1)

5,456

5,035

5,040

Buildings

4,651

4,498

4,441

Means of transpor t (owned)

806

537

600

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

63,97360,164

60,121

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

55,88942,58040,409O ther indirect emissions
Means of transpor t (leasing)(Scope 3)

2,381

2,090

1,961

With regard to indirect energy emissions (scope 2)
deriving from the purchase of electricity, the table below
shows the values calculated using both the "Locationbased" and "Market-based" methods defined below:• "Location-based": reflects the average intensity of theemissions relating to the grid from which the energy is
supplied;• "Market-based": shows the emissions from electricity
that the company has decided to purchase intentionally;
3. E N V I R O N M E N T

37

3.3 RESPONSIBLE SOURCING AND USE OF

In 2019, in collaboration with the Fur Free Alliance (FFA),RESOURCES

the Prada Group announced the adoption of a fur-freepolicy, thus allowing the research and development of

The Prada Group feels a sense of responsibility for

new, more innovative and responsible materials.

sourcing and managing resources in a manner that takes
into account not just the intrinsic value given by thequality of the raw materials used, but also their origin
and the manufacturing processes that they undergo.
The clothing, footwear and leather goods divisions
directly select the suppliers of all raw materials, also
used by their manufacturing suppliers, coordinating andmonitoring in this way the entire production process up
to the creation of the finished product. This approach,a distinctive element that has characterized the PradaGroup's business strategy from the beginning, ensures
full control of a crucial phase of the value chain.
Prada considers sustainable raw materials management
to be synonymous with resource use optimization,according to an approach that seeks to put an end to

The materials Prada uses in the manufacturing processwaste and thus minimize the consumption of leather andcan be broken down into primary materials such as

fabrics.

leathers, fabrics and yarns, and ancillary materials orPrada's high sensitivity to this issue led it to establish insemi-finished products such as soles, heels, zippers,

2019 an effective way to recover and eliminate production

buttons, threads, ribbons, buckles, clasps and namewaste through the use of recyclable bags which areplates.

then compacted for proper recycling by specialized
The most significant information relating to raw materials

companies.

purchased from 2017 to 2019 is listed below, including
Recent investments made in industrial development

the related unit of measure.

have led to insourcing various production phases, withthe purpose of maintaining quality at the highest levels

RAW MATERIAL

units

2017*
(12 months)

2018(12 months)

2019(12 months)of excellence while optimizing the use of raw materials.

LeatherFeet

28,301,004

29,192,490

29,514,844

Fabrics

Meter

3,673,886

4,015,597

4,141,910

Yarns

Kilo

179,221

218,000

154,394

Shoes' soles

Pair1,098,684

1,385,657

1,388,294

3.3.1 RAW MATERIALSThe main raw materials used are leathers, fabrics andyarns. 100% of the leathers come with a cer tificate oforigin, a data sheet guaranteeing quality and compliancewith standards, and certification regarding the parametersstated on the Group's Restricted Substances List (RSL).
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
Species (CITES).
3. E N V I R O N M E N T* The 2017 purchases have been updated and re-proportioned over the 12-month
period which goes from January 1 to December 31, 2017.

Purchases for 2019 were substantially in line withprevious period and with the planned product range at
the stores. Overall, purchases of the aforementioned
raw materials accounted for approximately 59% of theeconomic value of all purchases including accessories
and semi-finished materials.

38

3.3.2 PRADA RE-NYLON

will be donated to a project par tnered with UNESCO to

Nylon is emblematic of the Prada brand and is a

develop educational activities for students all over the

distinctive feature of its unconventional approach toworld on crucial topics such as the pollution caused bycontemporary fashion. The Re-Nylon project, which forplastic, the circular economy and the protection of thethe Prada Group represents an impor tant initiative inoceans.

terms of sustainability, has emerged from a profoundreflection on the growing concern of today's society for

To showcase the cutting-edge processes behind theenvironmental protection.

Re-Nylon

initiative,

National

Geographic,

Prada’s

storytelling par tner, has produced a shor t firm series
The product – a series of iconic Prada handbags launched

entitled "What We Carry". Each of the five shor t films

in 2019 – is the result of a par tnership between Prada

explores a source of recycled materials composing theand Acquafil, which produces nylon with plastic waste

regenerated nylon, unveiling the factories technologies

collected from oceans, such as fishing nets, and sent

and production facilities of this innovative fabric, as

to landfills, such as textile fiber waste and old carpets.

well as the ideals that gave life to the initiative.

The nylon, which is regenerated through a process ofdepolymerization and re-polymerization, can be recycled

3.3.3 PRODUCT RESPONSIBILITY

indefinitely, with no loss of quality.

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

Underscoring the impor tance of the sustainability

The products must meet uniform quality standards andcontent of the initiative, in 2020 a percentage ofsatisfy all current regulations in more than 70 countries

proceeds from the sale of regenerated nylon products

where they are sold.

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

39

To achieve these goals, the Group employs some 310

In 2019 no cases of non-compliance with health andtechnicians (308 in 2018, 291 in 2017 and 290 in 2016),

safety regulations were recorded (as none in 2018). Thereeach with at least ten years’ experience, who run strict

was only one case of non-compliance with information

quality controls on every material used in the production

and/or labeling requirements in China that led to fines

process, from sourcing to the finishing touches. They

for a total amount of Euro 1,500.

make periodic visits to the manufacturing sites of raw
material suppliers and subcontractors to assess their

3.3.4 PACKAGING: PAPER AND PLASTIC

processes, the quality of their goods and the generalIn the twelve-month period ended at December 31, 2019

workplace conditions.

the Prada Group used 4,583 tons of paper for packaging
worldwide, while in 2018 the consumption was 3,960

Within the scope of these control and guidance

tons. The increase is temporary and is connected to theactivities, since 2014 the Prada Group has drawn up

production trend. In 2019, 85% of the total packaging

and updated a Restricted Substances List ("RSL"), theconsumption was represented by paper cer tified by theprocedure that sets limits on the presence of chemicals

Forest Stewardship Council (FSC) and recycled paper.

in its products. In 2016, Prada took the additional
step of aligning its RSL limits with the more stringent,

Paper consumption for packaging (tons)

proactive approach outlined in the "Guidelines on ecotoxicological requirements for clothing, leather goods,
footwear and accessories" endorsed by the Camera

2017

82%

2018

84%

Nazionale della Moda Italiana (“CNMI”). These limits
are the most vir tuous in international practice and aim
to ensure higher chemical safety standards than thoseprescribed by the strictest national and international

18%

2019

3,437
16%

15%

85%

r e cyc l e d o r c e r t i f i e d pa p e r

3,9 604,583

ot h e r pa p e rlaws. Prada's suppliers of raw materials, packaging
and manufacturing services, which represent Prada's

During 2019, the Group also embarked on a program

production chain, have all received the Group's RSL andwithin the clothing and leather goods divisions aimed

are progressively accepting and signing it: since 2016,at conver ting some packaging components made fromwhen 72% of the purchase volumes were carried out

100% virgin plastic into recycled or regenerated plastic.

according to this procedure, in 2019 the "proactive"
level of the RSL reached 97% of the purchase volumes

3.3.5 WASTE

relating to Prada’s external industrial suppliers, andRecently the Group conducted a review of the processes

100% of the work per formed in the Group’s production

carried out and waste produced in each manufacturing

sites.

phase at the factories, and subsequently set up asystem to manage the internal cycle of waste transpor t,

Extending the reach of the RSL is impor tant for improving

collection, temporary storage and disposal. The analysis

the sustainability of the Group's production cycle, as

enabled to optimize the production cycles, thereby

is Prada's ongoing commitment to CNMI programs on

reducing waste production and increasing the propor tion

chemicals, for which in-depth studies have been initiatedof waste recycled. The new procedures implemented

on the application of the guidelines to manufacturing

allowed the Prada Group to recycle more paper, plastic,

processes, and on other matters.

glass and printer car tridges not just at the factories but

To ensure that the RSL is being followed, in addition toalso at its offices.

requiring cer tification and testing from every supplier,the Prada Group monitors observance of the guidelines

The Prada Group places great emphasis on encouraging

and the supplier cer tifications through an additional

its staff to use industrial waste collection methods andinternal control process by conducting spot checks onstandards that can ensure waste reuse and recycling or

all sourced materials through accredited laboratories.

disposal according to the best practices.

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

40

3.3.6 LUNA ROSSA, THE PRADA CUP AND ATTITUDE

impor tance of the protection of the oceans and marine

OCEAN

biodiversity, while reducing the impact of the America’s

High-profile spor ts is another source of inspiration for

Cup events on the environment.

Prada and it represents an oppor tunity to realize its
commitment to safeguarding the environment.

In details, commencing with the America’s Cup World
series events, “Attitude Ocean” includes the following

Luna Rossa team, sponsored by the Prada Group, wasinitiatives:

an America’s Cup challenger in 2000, 2003, 2007 and• no single-use plastics in favor of recyclable or2013, winning the challenger selection regattas in 2000

compostable materials, waste reduction, creation ofand reaching the finals in 2007 and 2013.

restaurants areas, with reusable supplies or 100%
compostable solutions, which should prefer the use of

Having benefited from these experiences, Prada has

local food supplies;

again secured the role of main sponsor of the Luna Rossa• definition of rigorous procedures for the optimization ofsailing team for the 36 th America’s Cup and, for the firstenergy demand, waste disposal and for the integration

time, also the “ Title and Presenting Sponsor ” of bothof sustainability also in the technical aspects related toPrada Cup and the America’s Cup presented by Prada,

competition (e.g. non-toxic detergent for washing thegaining fur ther prestigious exposure through the oldest

boats, re-purposing plans for materials used during

spor ts trophy competition in the world. Within this new

the event, etc.).

role as organizer of the preliminary regattas (the Prada
Cup), Prada has also set an ambitious goal of building a

The “Attitude Ocean” project also includes local andlasting legacy in terms of sustainability.

international par tnerships to drive awareness among
Generation Ocean.

Challenger of Record 36 srl, the company responsible
for organizing the Prada Cup and par tner of the PradaGroup, has set a plan of action, namely “Attitude Ocean”,
with the final purpose of raising awareness regarding the
3. E N V I R O N M E N T

41

4 . H U M A N CA P I TA L
The Prada Group’s business approach is based on the respect for human rights,
workers and people in general, as well as the promotion of diversity. This approach 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 professional skills, teamwork and the improvement of the efficiency. The
employees’ enthusiasm, craftsmanship and intellectual curiosity are the elements that
underpin the innovation and quality of the Group’s products.

4.1 W O R K F O R C E
As of December 31, 2019, the Group has 13,988
employees, of whom 38% work in Italy. Compared tothe previous year, a 3.2% growth was recorded mainly
due to the strengthening of the retail in Asia Pacific, andto a lesser extent in Nor th America, in addition to theacquisition of full control of the Prada stores in Milan,
following the acquisition of the company Fratelli Pradaspa, the Group's historic franchisee.
Number of Employees

12,8442017

13,5562018

13,9882019

Employees per Geographical Area

2% m i d d l e e a s t
8% j a p a n
9% a m e r i c a
20% e u r o p e
23% a s i a p a c i f i c
38% i t a l y

Employees per age range

Outside Italy, the most sizable par t of the workforce
is in Asia-Pacific (23%) followed by the rest of Europe

2017

25%

56%

19%

2018

26%

55%

19%

2019

24%

56%

20%

<30

30-50

(20%).
In Italy, where 19 of the 22 production facilities arelocated, most employees (62%) work in the industrial
division, while in other countries, where 578 out of 634
directly operated stores are located, 85% of employees
are in retail.
Employees by Gender

62%

2017

>50

A breakdown of the workforce by age shows that at
38%

2018

62%

38%

2019

62%

38%

December 31, 2019 24% of Prada employees were under
30 years old and 56% were aged 30 to 50. Fur ther analysis
shows that 31% of the retail workforce were under 30
years old, while in the industrial division, where at leastten years of experience in production and craftsmanshipfemalemale

is par ticularly impor tant, 50% of the workforce belonged
to the 30 - 50 year old range and 37% to the over 50

Women permanently represent the majority of theyear old range.

workforce, counting for 62% of the corporate population.
4. H U M A N C A P I T A L

43

year

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

2017

1.2%

5.7%

4.7%

2.1%

4.4%

2.6%

13.7%

23.3%

6.1%

7.4%

12.7%

3.5%

0.3%

5.5%

1.1%

0.3%

4.1%

1.3%

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%

In the periods under comparison, the breakdown of

In terms of contract type, 88% of international employees

employees by age and gender remained quite stable, evenare permanent hires, proving the Group's commitment to

if in all categories, a shift in the corporate population

stability and long-term investment in human resources.

towards the higher age group (> 50) was noted.
In the “Staff ” and “Executive and Managers” categories,

Most of the fixed-term contracts concern staff in thefemales accounted for 23.8% (vs. 12.9% of males) andretail area and, mainly younger employees (under 35).

5.4% (vs. 4% of males) of the total workforce respectively

67% of the contracts are for females.

in the category 30 – 50 year old.

The employees working full time represent the 97% of
the total workforce. In 2019 there were no differencesin benefits between full-time and par t-time contracts.

Permanent Employees
2017

61%

39%

2018

62%

38%

2019

62%

38%

female4. H U M A N C A P I T A L

tota l12,367male

44

4.2 D I V E R S I T Y A N D E Q U A L O P P O R T U N I T Y

Even at a geographical level females represent more thanhalf of workers in all areas, with peaks in Japan and the

The vast global presence of the Prada Group reflects

Asia Pacific, where females account for 74% and 68% of

a multitude of different cultures, nationalities andemployees respectively.

religions. The communities and areas in which it operates
are a constant source of inspiration and growth.

Employees per Gender and Geographical Area

In fact, the Group ensures equal employment conditions
by promoting diversity and equal oppor tunities, and in
2019 there were no registered cases of discrimination
within the Group.
The statistics on employees’ origin prove the various
backgrounds of the workforce. In fact, people with 105
different nationalities (107 in 2018) work for the Group.

i ta ly

59%

41%

america

56%

44%

europe61%39%

a s i a pac i f i c

68%

32%

ja pa n74 %26%

middle east

55%

45%

femaleThe strong female presence is demonstrated by themaleratio between males and females for each job category:
women not only represent the majority of Labor (58%)

Respect for equal oppor tunities is also reflected inand Staff (65%), but they are also the largest component

the Compensation & Benefit system, based on the(56%) of Executives and Managers.

enhancement of skills and merit, which ensures equal
treatment by gender, seniority and role, as also confirmed

year

LABOR

EXECUTIVES AND
MANAGERS

STAFF

FemaleMale

FemaleMale

Female

Male

2017

56%

44%

65%

35%

55%

45%

2018

57%

43%

65%

35%

56%

44%

2019

year

58%

42%

65%

35%

56%

44%

by the substantial equality in the remuneration treatment
as showed in the table below.

PAY GAP (with the median as 100%)
year

LABOR

EXECUTIVES AND
MANAGERS

STAFF

FemaleMale

FemaleMale

Female

Male

2017

97%

102%

91%

104%

98%

103%

Another distinctive characteristic is the prevalence of

2018

99%

102%

98%

104%

99%

104%

females in all divisions.

2019

99%

102%

98%

103%

97%

102%

INDUSTRIALCORPORATERETAIL

FemaleMale

FemaleMale

Female

Male

2017

59%

41%

55%

45%

64%

36%

2018

59%

41%

57%

43%

64%

36%

2019

60%

40%

57%

43%

64%

36%

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

45

4.3 D I V E R S I T Y A N D I N C L U S I O N A D V I S O R Y

the issues of diversity and inclusion of Afro-American

COUNCIL

culture in the United States and par ticipating to theorganization of “Shaping a Sustainable Future Society”

The Group firmly believes in the value of diversity as aconference (chapter 5, paragraph 1). During the threesource of inspiration for its activities and, more generally,meetings, the Council also submitted various proposals

as a form of cultural heritage, wellbeing and creativity,

for activities, currently under consideration by thewhich allows to establish a bond of affinity with a global

company leaders, including par tnerships, scholarshipsbase of diversified stakeholders.

and other initiatives to bridge the gap of inclusion in
the sector.

In 2019, the Group, in order to promote the issues ofdiversity and inclusion within the company and in the

4.4 PRADA ACADEMY AND SKILLS DEVELOPMENT

society, established the Diversity & Inclusion Advisory
Skills development is fundamental for the Prada Group,Council (hereinafter “D&I Council”).

as is Prada’s commitment to the intra-generational
The D&I Council, as a consultative body fully independenttransmission of skills.

from any form of governance of the Group, has the taskof sensitizing the management on the social aspects

Back in the 1990s, the Group began to codify all itsof sustainability, in par ticular with regard to diversity

industrial and handcrafting processes in manuals and(gender, cultural identity, religion, personal orientation,

written procedures so that they would be accessibleetc.). The Council fulfils its role through the proposal ofwithin the Group. Even now, details and updates areprojects, corporate policies and initiatives considered

constantly added to these documents, which ensure thesocially effective to spread a culture of inclusion in thecontinuity and consistency of the know-how and servefashion sector.

as inspiration for the corporate activities.

The work of the D&I Council focuses on the above-

The Prada Academy is the physical and digital place

mentioned issues especially for what concerns the Nor thwhere knowledge, skills, techniques, practices andAmerican society.

innovative ideas are shared and developed to foster
talent and assure the Group’s future growth.

The D&I Council is composed of academics, activists,
representatives of the world of ar t and culture fromThe Prada Academy aims to develop human capital andinstitutions worldwide renowned. The Council has twoconvey professional exper tise with projects, contents

Co-Chairs, Theaster Gates and Ava DuVernay, and avails

and training modalities diversified for three macro

itself of the contribution of three other members, Joyce

areas: manufacturing with the Industrial Academy, theBrown, Mariarosa Cutillo and Sarah Lewis.

Learning and Development area, and retail with theStores Academy.

DIVERSIT Y & INCLUSION ADVISORY COUNCIL
Role

GenderAva DuVernay

ChairmanF

Theaster Gates

ChairmanM

Joyce Brown

F

Mariarosa Cutillo

F

Sarah Lewis

F

During the year, the D&I Council gathered three times
approving a major training and development project on
4. H U M A N C A P I T A L

46

INDUSTRIAL
ACADEMYLEARNING AND
DEVELOPMENTACADEMYSTORES
ACADEMY

Industrial academy

and professionals who transmit their extensive know-

Since 2017, at its manufacturing facilities in Italy,

how, each process is understood in detail so that thethe Prada Group has safeguarded and passed on the

par ticipants can learn how to work according to thetechnical skills of the fashion professions by way of thishighest quality standards.

school intended for youths aged 18 to 25 who are eager
to learn the technics of the manufacturing world andIn 2019, the project was fur ther developed and the hours

to embark upon a career in the leather, footwear andof training increased by 30%. The courses covered all

luxury clothing sectors.

the production divisions, par ticularly:• knitwear, with in-depth study of the types of yarns,

The peculiarity of the courses lies in the right mix oftheory and practice. Studying the production processes
and methods is the first step of intensive practical training:learning is done on the job, where par ticipants star t
in on the creation of handbags, accessories, footwear

stitches, darning and embroidery;• leather goods, with in-depth study of some processes
typically used for handbags and small items;• footwear, with the manufacture and assembly techniques
used for footwear and sneakers.

and clothing. Under the guidance of internal instructors

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

47

In the Prada world, the Industrial Academy is awere provided in 2019 compared with just 2,000 in 2018.

strong, growing reality that fully suppor ts the Group's

This tool also facilitates the creation of real communities

production strategy, whose final goal is the protection andinterested in specific subjects; it means being able

conservation of the wealth of knowledge and exper tise

to work transversely on a global level, par ticipatingthat characterize the industry, and their transmission to

vir tually in groups present on a digital platform where

new generations of ar tisans.

they can exchange information, processes, objectives
and deadlines. In 2019, a pilot project was experimented

By December 31, 2019, 141 youths had been trained

within the HR division, with the purpose of making it

through a process geared to prepare them for entering

become a new interactive tool for all company divisions.

the professions of leather cutters, shoemakers andtailors, and more than 80% of them were hired by theThis digital platform provides free access (“free learning”)

Company.

to various managerial and business topics. The incentive
to spontaneously analyze and search new content isLearning and development academy

a strategic asset in terms of personal motivation and

The professional training dedicated to the Group's

improvement in individual per formance.

employees focuses on effective management of thecomplexities present in the various business environments.
Courses are formulated by first analyzing demands inorder to build the content according to the specificpersonal and professional growth needs, in behavioral,
specialized and managerial areas. In the past few years,
courses have been developed on self-efficacy, leadership,team management, and the strengthening of technical,
digital, linguistic, and other types of professional skills.
The training is divided into classroom and e-learning
courses.
Employees are trained from the time they join the
Company though an onboarding process, during which
the managers meet their new employees and introduce
them to the Prada world and to the respective businessStores academy

areas.

In addition to the daily suppor t of experienced personnel,
the activities contemplated for the store staff include

In 2019, special “ Theory to Practice” programs werecourses designed to consolidate professional skills,

created for some employees categories. The selected

product knowledge and customer service.

candidates have the oppor tunity to attend internationallyrenowned universities and post-graduate institutions,

In 2019, the catalog of e-learning courses regarding

and then return to Prada and share the exper tise gained

products was expanded with more information on thewhile working in groups, according to the purposes andforms, materials and colors of the latest collections,timing determined by the respective managers.

thus improving the capacity to offer an increasingly
exclusive customer experience in line with the brand

The Learning Management System (LMS) digital training

identity.

platform, implemented on a global scale more than two
years ago, enhanced the value creation for the human

In addition to the usual plans to reinforce managerial andresources, to whom 17,000 hours of e-learning courses

selling skills, during the year new, impor tant training and4. H U M A N C A P I T A L

48

development projects were launched. Two of the mostsignificant ones regarded aligning the organizational
goals of Prada Store Managers and recasting the customer
experience, as a key business strategy. The latter project,conducted on a global scale, involved managers frommany countries under the guidance of an external team,whose task was essential for enriching the experienceand training the Group's professionals.
Training hours
In 2019, 171,789 hours of training 4 were provided to55,507 par ticipants. Below is a summary of the average
hours of training broken down by gender.

Training Worldwide

2017

2018

2019

Average number ofhours per employee

6.80

6.88

12.28

Average number ofhours per employee
by gender

FemaleMale

FemaleMale

Female

Male

7.34

5.95

7.46

5.94

12.98

11.13

4.5 TALENT AT TRACTION AND RETENTION
Career Day, Bocconi University

Recruiting the most talented and skilled employees for
its organization is a fundamental element of the PradaGroup’s growth strategy. The channels used for attracting,In the last years, Prada and some schools have jointly

finding and selecting candidates are diversified andorganized student visits to its headquar ters to make its

closely related to the type of the role.

workplace and working methods better known. Pradaconsiders this open approach strategic to its image as an

The internal selection process, which is characterized by

employer of excellence. A strong interest in the qualitytransparent procedures that ensure equal oppor tunity,of its work organization has always emerged from thehas been standardized globally over the years, thanks

visits to the factories in Italy, which are located in uniquein par t to a digital platform shared by HR managers forarchitectural settings and landscapes.

the analysis and filing of the applications received.
Moreover, the Prada Group believes it is essential to
The Company regularly par ticipates in events thatcreate synergies with the technical schools of the region

connect businesses to the world of schools, universities

where it operates (Tuscany, Italy) to ensure the educationand master 's degrees. Careers days, during which theand the skills refinement needed for the technical

Prada Group delivers presentations and holds workshops,

qualifications considered vital by the company for giving

are just an example of the tools used to acquire talented

continuity to the ar tisanal know-how.

staff.
The Prada Group's remuneration and retention policy isSome of these initiatives have been communicated anddesigned to reward and retain highly professional staff

promoted through the Group's LinkedIn page.

and skilled managers, new graduates and workers, withthe cer tainty that the creation of value is achieved in the

The hours of training exclude those on health & safety and those of theIndustrial Academy.
4

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

medium and long term through constant organizational
49

learning and the consolidation of employees’ experiences

entitlements(healthcare,insurance,etc.),

andand skills.

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

The policy features a balanced combination of components

subsistence allowances, etc.).

that are fixed and variable, direct and deferred, tailoredto the position and professional qualifications, and

The Group promotes freedom of association andconsistent with the needs of the various geographicalrecognizes the right to collective bargaining. In fact,

areas.

the Prada Group engages with trade unions to improve
the working conditions of its employees and to foster

More in details, the Group's remuneration policy is

the medium/long-term well-being of its employees andbased on:thus its surrounding communities. Over the years the― a periodic salary review that takes into consideration

Group has stipulated many supplementary agreements

the overall market competitiveness with respect toespecially in Italy, the United Kingdom and France,company positions and internal remuneration fairness;whereby it offers better benefits than those established in― an annual incentive plan linking remuneration to thethe local collective bargaining agreements. For instance,

Company's earnings and to individual per formance;

80% of the employees in Italy and 100% in France can― long-term incentive plans, for key managers, linked

benefit from the supplementary agreements. Employees

to the three-year profit growth, aligning individualin the UK’s manufacturing division also benefit fromtargets to those of the shareholders;

supplementary agreements.

― 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
4. H U M A N C A P I T A L

50

The

most

significant

theseCommittee, is actively involved in determining the top

supplementary or company agreements for 2019 weremanagement remuneration taking into account thethe following:roles and responsibilities assigned, and considering the• per formance

benefits

bonus:

variable

provided

bonus

by

linkedto

production, sales and profit targets;businesses of comparable size and complexity to the• vacation bonus: fixed amount equivalent to one
month's pay as defined in the collective bargaining
agreement;• easy access to severance pay advances;• flexible working hours enabling employees to achievea more productive work-life balance;• supplementary

Healthcare

Fund:supplementary

health insurance with an option to include immediatefamily at a special rate;• special leaves of absence for illnesses of employee's
children (up to 12 years of age) in France;• regulations,employment

market compensation applicable to similar positions inprotection

andbetterconditions in terms of Sunday premium pay in thestores in France;• improvement in sick leave for the employees of the
Church's plant in Nor thampton, Great Britain.

Prada Group.

4.6 WORKER SAFET Y
Personal protection is of key significance to the Group:internal policies safeguard the health and safety of
employees at all Company locations according to thehighest standards and in full compliance with local andinternational regulations.
In most locations (offices, warehouses and stores),occupational health and safety risks associated with theGroup's operations are considered limited, also thanks
to training activities and updated safety measures,
especially in the industrial areas.
I N J U R Y/ L O S T D A Y R A T E

2017

2018

2019

As par t of the supplementary agreements in Italy, in

INJURY RATE
(number of accidents/hours worked) x 1,000,000

11.34

10.47

10.28

2018 a corporate welfare plan was launched with the aim

LOST DAY RATE
(days lost for accidents/workable hours) x 1,000

0.29

0.22

0.17

of allowing employees access to an extensive packageof services such as reimbursements for healthcare,education and welfare expenses, leisure activities (travel,vacations, cultural and spor ts events), vouchers for fuel,Data related to 2017 only refers to the Italian industrial sites.
Data related to 2018 is related to the industrial sites that the Group owns
in Italy, France and United Kingdom.
Finally, data related to 2019 is related to all industrial sites owned by the
Prada Group (in Italy, France, United Kingdom and Romania).

food, payments to supplementary pension funds, andmuch more. The welfare plan can be activated under the

In Italy, where 19 industrial sites owned by the Group are

employees request in view of the per formance bonus;

located, there were 87 incidents, 55% of which involved

the company adds an additional 25% to the amounts

females and 42% of which occurred during commuting.

conver ted. During 2019, over 65% of the employees

This result is reflected by the injury rate at Italy level

covered by the plan chose to conver t their per formancethat was equal to 10.25, while for women it was equal tobonus into welfare shares, directing them mainly to

13.75. Generally, in Italy, injuries inside the organization

reimbursements of medical and education expenses andwere mainly related to tripping and slipping, therefore

travel, a response considered extremely positive.

of minor gravity (the gravity rate was equal to 0.18).
In Italy, during the year, three cases of occupational

The Group complies with the applicable international

disease occurred, involving only female employees,

and national laws and regulations for working hours,

representing an overall occupational disease rate equal

minimum guaranteed breaks and rest periods. Thanks

to 0.35.

to the respect, dialogue and cooperation in place with
Italian trade unions, there were no labor strikes during

In order to promote widespread safety awareness, thanks

the year, just as none had occurred in the previous threein par t to regulatory developments on this matter, theyears.

Company uses on-line safety courses with specific IT

The Board of Directors, together with the Remuneration

platforms that are easy and simple to use.

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

51

non-existent, while it considers the same risk to be very
low along its industrial supply chain. The geographic
location of the suppliers selected by the Group, as wellas their profound knowledge in terms of duration andquality of the established par tnerships, reduces the riskof conditions or pre-conditions such as to constitutecircumstances of modern slavery, forced labor andhuman trafficking.
The Group's business par tners are encouraged to go
beyond the minimum regulatory requirements and foster
dialogue among all par ties involved to facilitate theimplementation of and compliance with the standards
in order to create positive work relationships. In
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.
In 2019 training was provided to 2,656 people in Italy

Factories and external suppliers are also required to(around 1,813 people in 2018).

ensure 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

is provided with all the permits requested by law andfor creating and monitoring occupational health andcomplies with the Code of Ethics.

safety programs, whereas the positions and internalorganization structures required by the local legislationof the various countries in which Prada is present do

4.7

GROUP’SQUALIFIED

VENDOR

LIST

PROCEDURE

exist.
The Prada Group has adopted the "Group’s qualified
The Group makes effor ts to guarantee that its products

vendor list" procedure to define the responsibilities

are created in conditions reflecting its commitment forand operational criteria required to evaluate ethical,

the respect of human rights in the workplace and its

technical and economical reliability. Additional controls

compliance with international rules for the safety andneeded to initiate and continue with supply relationships

well-being of workers.

are set out in the procurement policy, which calls for
mitigating risks of non-compliance through additional
all

forms

of

controls and accountability.

labor

insidetheSpecifically for ethical issues, the accreditation andorganization and promotes the same respect along its

maintenance of a supplier 's qualification are based

supply chain. Prada believes that the risk of modern

on the request of documents, attestations and self-slavery and child labor within its own organization iscer tifications that ensure compliance with the law on

Moreover,

the

Group

fightsdiscrimination,

forcedand4. H U M A N C A P I T A L

againstchild

52

remuneration, social security, taxation, health andSuch controls were entrusted to an internal function set

safety, the environment, privacy and the governanceup specifically for such purpose with personnel from themodel. Finally, the signing of the Code of Ethics is amost competent business areas for the various types offundamental prerequisite for working with Prada.

controls, such as the administration, human resources,
safety and industrial depar tments.

This information is subject to periodic updates andsystematic checks, also intra-year to ensure veracity and

The role of this professional team, working in close

consistency. Such controls, of a documental nature andcollaboration with the Industrial Divisions, is to provide

conducted by purchasing structures or business areas

technical and specialized suppor t to verify the labor,

focused on several topics, are carried out on a sample

tax, health and safety and environmental regulatory

basis or when a problem is encountered. The procedurecompliance of the supply chain through visits to suppliers,

may include fur ther inquiries in case of potential non-planned in a systematic and organized manner.

compliance in the documentation. This type of control
is coupled with visits by industrial divisions to suppliers

In 2019 the team star ted to conduct its monitoring visits(almost daily for the most impor tant ones) which, apar t

to all suppliers of the Leather Goods Division, with thefrom ensuring compliance with technical and commercial

aim of finalizing them by January 2020. A similar activity

agreements, provide additional confirmation regardingis planned for all suppliers of the Clothing and Footwear

working conditions. In case of a non-compliance that

Divisions.

can be remedied, the supplier may be temporarilysuspended, while for more serious cases, the contract
may be terminated immediately.
This procedure, implemented in early 2017 to suppliers
operating in the industrial area, has been graduallyextended to businesses not strictly involved in the
production cycle, reaching full coverage of all industrial,
engineering and logistics suppliers 5 at December 31,
2019. Fur thermore, during the year, internal controls
were regularly carried out, both on first and second level,
to ensure the periodic updating of the information anddocumentation required by the procedure, and aimed at
mitigating risks of non-compliance.
The Prada Group considers the risk of non-compliancethroughout its direct supply chain to be low thanks to thegeographical location of the suppliers and the in-depth
knowledge of such suppliers obtained as a result of theduration and quality of the relationships established.
However, during 2019 controls over the observance of
the Group’s “Qualified Vendor List" (QVL) procedure
were intensified with more in-depth checks on thecompliance of documentation produced, made available
by the supply chain and entered in the QVL.

For the purposes of this analysis, only suppliers with which purchases ofmore than Euro 50 thousand were conducted in 2019 have been considered.
5

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

53

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.

5.1 S H A P I N G A S U S T A I N A B L E F U T U R E S O C I E T Y

Shaping a Sustainable Future Society Conference, New York

Since 2017, the Prada Group has organized a cycle ofAt the New York conference, the Yale Center for Customer

cultural events entitled “Shaping a Future” with theInsights of Yale University presented research, conducted

intention of stimulating a debate on the most significant

in collaboration with Prada during the previous months,

changes taking place in contemporary society and morewhich investigated U.S.-based consumers' opinions,specifically to analyze sustainability issues.

thoughts and evaluations on how sustainability affects
their purchasing decisions. Politecnico di Milano joined

On November 8, 2019, the third edition of this conference

instead researcher Kate Crawford in the complex debate

cycle was held at the Prada Group’s New York headquartersof the often-ignored ethical implications regarding theand addressed the issue of social sustainability. It brought

development of Ar tificial Intelligence (AI), emphasizing

together universities, institutions, large internationalthat decision-making processes, of both citizens andorganizations, and representatives of the world of ar t,

corporations, are increasingly permeated by the digitalarchitecture, international journalism and spor ts on

evolution without adequate regulation or supervision at

subjects such as freedom, equality and social justice.

international level.

Social inclusion, respect for identities, disability, diversity

Both of the two previous conferences took place in Milan:

and care for others in general, all of which are aspects

the first one, held in March 2017, focused on possibleof social sustainability, found great resonance amonglinks between creativity and sustainability, while thethe speakers at the conference, who outlined different

second event, held in November 2018, explored theand stimulating points of view on a very complex andconnections between sustainability and digital innovation

stratified topic.
For the 2019 edition, as well as for the previous two ones,
Prada benefited from the scientific contribution of the
Schools of Management of Yale and Politecnico di Milano.
5. C U L T U R A L I N I T I A T I V E S

55

Exhibition view of “Whether Line”
Lizzie Fitch and Ryan Trecar tin

5.2 FONDAZIONE PRADA
The interests and the passions of Miuccia Prada andand curated by Germano Celant was presented in thisPatrizio Ber telli have inspired the Prada Group to suppor t

space. A selection of more than sixty works from 1959

Fondazione Prada’s activities in the fields of ar t andto 2015 on loan from impor tant museums and private

culture since 1993.

collections in Italy and abroad explored the ar tistic andexhibition history of Kounellis.

Fondazione Prada was created as a platform to conceiveand develop ar t exhibitions along with architecture,

The program of Fondazione Prada’s headquar ters incinema and philosophy projects. Since 2010 it has

Milan, unveiled in 2015 and designed by the architecturalpresented twenty-four exhibitions in Milan dedicated tofirm OMA, included in 2019 two exhibitions, a newimpor tant international ar tists, or to ar t issues.

permanent project, an extensive film program, a music
project and a dance event.

Since 2011, Fondazione has also been operating from its
venetian venue, Ca’ Corner della Regina, an eighteenth-

American ar tists Lizzie Fitch and Ryan Trecar tin havecentury building that has hosted eight ar t exhibitions

created the multimedia installation "Whether Line" andand an experimental platform dedicated to cinema. In

a series of new movies on the theme of borders, territory

2019, a large retrospective devoted to Jannis Kounellis

and the back-to-the-land utopia. A comprehensive

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

56

Exhibition view of “Il sarcofago di Spit zmaus e altri tesori”
Wes Anderson and Juman Malouf

retrospective of Ryan Trecar tin's filmic production

a television monitor usually employed by Godard as aentitled " The Movies" completed the exhibition project.

working tool.

Film director Wes Anderson and illustrator and writer
Juman Malouf conceived the exhibition "Il sarcofago

In 2019 Fondazione Prada’s “Cinema” has continued its

di Spit zmaus e altri tesori", a collaboration between

activity every weekend with a program that includes a

Fondazione Prada and the Kunsthistorisches Museum inwide variety of formats, visual languages and a series

Vienna. The project, which included 538 works of ar tof special events and public meetings. For "Soggettiva"

and rare objects, was a reflection on the motivations

section,behind the act of collecting and the ways in which a

directors Nicolas Winding Refn and Pedro Almodóvar

collection is preserved, presented and experienced.

and ar tist John Baldessari, who shared the films that

three

film

selections

were

presented

bycontributed to their cultural and intellectual education.
Film

director

Jean-Luc

Godardconceivedanew"Indagine" section offered international films in thepermanent project for the first floor of the Sud gallery.

original language including both first releases and works“Le Studio d’Orphée” (Orpheus’ studio) is an atelier, afrom the past redistributed in previously unreleased

recording and editing studio, a living and working place.

versions. "Origine" section presented "Screen-Core"

The director decided to transfer the technical material,

program, curated by Luigi Alber to Cippini and dedicatedused in his latest films’ shooting from 2010, as wellto contemporary independent cinema.

as furniture, books, paintings and other personal items
from his studio-house in Rolle in Swit zerland.

The second edition of the musical project "I WANT

The title expressly mentions the myth of Orpheus and

TO LIKE YOU BUT I FIND IT DIFFICULT ", curated by

Eurydice, establishing a parallel between Godard andCraig Richards, was presented in the external spaces

the Greek poet-musician. Within “Le Studio d’Orphée”

of Fondazione Prada in Milan. The three events of thisthe feature film Le Livre d’image (The Image Book), 2018

program explored a plurality of musical genres andand nine shor t movies by the director are screened on

languages hosting international ar tists such as Andrea

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

57Exhibition view of “Le Studio d’Orphée”
Jean-Luc Godard

Presentation Event of “Soggettiva Nicolas Winding Refn”
at Fondazione Prada’s Cinema.

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

58Exhibition view of “ Training Humans”
Kate Crawford and Trevor Paglen

Belfi, Biosphere, Colleen, Floating Points, Helena Hauff,to photography, continued with two new exhibitions.

Maarja Nuut & Ruum, object blue, Pole, Ben UFO and"Surrogati. Un amore ideale", a show curated by Melissa

Craig Richards. Belgian choreographer Elie Tass created

Harris presented a selection of photographic works by

the dance project "Emergency Entrance". Conceived for

Jamie Diamond and Elena Dor fman exploring the notions

the spaces of the “Deposito” (a big industrial space),of family, romantic and erotic love. " Training Humans",

occupied by the temporary set of Prada Woman Spring/

conceived by scholar Kate Crawford and ar tist Trevor

Summer 2020 fashion show, the choreography involved

Paglen, was the first major photographic exhibition

15 dancers from Civica Scuola di Teatro Paolo Grassi indedicated to training images: reper toires of photographs

Milan.

used by scientists to teach ar tificial intelligence systems
how to "see" and classify the world.

In addition to the cultural activities, the educational
program of Accademia dei bambini continued with newcycles of workshops conceived and curated by exper ts
from different disciplines.
The program of “Osservatorio”, the additional exhibition
space of Fondazione in Milan inaugurated in December
2016 in Galleria Vittorio Emanuele II, and dedicated
5. C U L T U R A L I N I T I A T I V E S

59Prada Mode Hong Kong

5.3 P R A D A M O D E A N D “ C O N V E R S A T I O N S ”
PROJECTS
Two initiatives can be mentioned in the cultural program

For its second edition, Prada Mode moved to Hong Kong

under taken by the Prada Group during 2019: the "Pradain March 2019 for the Ar t Basel Hong Kong. Scheduled

Mode" and "Conversations" projects.

events included a special setup of the “Prada Invites”
project — par tnered with three outstanding architects,

Launched for the first time in Miami in 2018 during Ar t

Cini Boeri, Elizabeth Diller and Kazuyo Sejima, to create

Basel Miami Beach, the Prada Mode touring project aims

a limited collection of new ar ticles in nylon - and Dolls’

to enrich and broaden the horizons of major cultural

House, a photographic installation by American ar tist

events with a global reach. The project is conceived as

Jamie Diamond, curated by Germano Celant and Melissa

a Club that offers its members access to a clubhouse

Harris.

hosting meetings and cultural debates every day oncontemporary issues.

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

60

The third edition of Prada Mode arrived in November

In

New

York,

photographer

Cristina

Mittermeier

2019 in London. Events included the new chapter of The

illustrated her "conversation photography" with Tina

Black Image Corporation presented by ar tist Theaster

Brown, an award-winning journalist and founder of theGates, a project that explores the visual and cultural"Women in the World" association.

representation of the Black identity. This edition of
Prada Mode also launched "Collective Intimacy", a

At a second event in New York, Susan Goldberg, editor-

live program of per formances and debates about the

in-chief of National Geographic Magazine, and Robinconcepts of community and unity to develop a vision

Rober ts, journalist and anchorwoman of ABC's "Goodof the cosmopolitan world. This exclusive program

Morning America" program, took up the subject ofincludedar tists,

women and led the debate during the presentation of themusicians, cultural producers, collectives and members

National Geographic book, "WOMEN", which explores,of the public, which alter the notions of unity andthrough images of famous women, what it means to be

individuality with the intention of creating a temporary

a woman in the contemporary world.

interdisciplinary

contributions

by

global community.
In Shanghai the focus of the conversation shifted to the****environment with a debate entitled "Imagining a CircularWorld", moderated by journalist, environmentalist andDuring 2019 some cultural conversations also took place

opinion leader Shaway Yeh. The theme was chosen toat the Prada Epicenter on Broadway, in New York, andraise awareness about sustainability among companies

at the Rong Zhai residence in Shanghai.

and designers.

Prada Mode London

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

61

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 I D E N T I F I C A T I O N
THE PRADA GROUP'S STAKEHOLDERS
In conducting its business the Prada Group interacts

most impor tant on the basis of their:with many stakeholders, all of which can directly or• influenceindirectly influence or be influenced by the achievement

Company'sonPrada:

strategic

abilityortooperational

affectthedecisions;of business objectives.
• dependence on Prada: extent to which the stakeholder
After mapping stakeholders from the beginning to thedepends on the Company's decisions, products andend of the value chain, the Group determined which areactivities.

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

A comprehensive list of the sustainability issues for

For 2019, the Prada Group has drawn up its Social

the Prada Group was identified by the following steps:

Responsibility Repor t according to the GRI (Global
Repor ting Initiative) Sustainability Repor ting Standards(hereafter "GRI Standards") and in line with the "ESG
Repor ting Guide" of the Hong Kong Stock Exchange.

• mapping the key stakeholders and analyzing theirconcerns;• per forming a benchmark analysis against Italian andinternational fashion and luxury firms, producing a

The depth and detail given to the various topics

list of the most common sustainability issues in thereflect the outcome of a materiality analysis which isindustry;

the process of identifying, evaluating and ranking the• per forming a media analysis relating to the Group,

sustainability aspects that are relevant to stakeholders

which enabled to present the perception of public

and that influence the ability of Prada to create value inopinion;the shor t, medium and long-term.

• analyzing the main sustainability documents relating
to the Textile and Clothing sector (such as the GRI,In this regard, during 2019, the Prada Group updated
its materiality analysis by carrying out two main phases:

RobecoSam, SASB) to identify industry trends;• analyzing the main sustainability trends at a global
level, identified by major international organizations

1. Identifying sustainability issues: determining whichsuch as the Dow Jones Sustainability Indexes, the World

issues are key to understanding Prada's businessEconomic Forum and the Global Repor ting Initiative.

and strategic context and to describing its main
environmental, economic and social impacts;
2. Ranking: putting these aspects in order based on
their relevance for achieving business goals (internal

Once the sustainability issues were defined, they wereranked in order to define their materiality and include
the most significant ones in this repor t.

significance) and concern to stakeholders (externalsignificance).

6. N O T E S O N T H E M E T H O D O L O G Y

63

In accordance with the GRI Standards, the aspects were

The material aspects for the Prada Group were definedranked in terms of their impact both within and outside

as the intersection of significance for the Company

the organization, i.e. by extending the analysis to theand significance for its stakeholders, as shown in theentire value chain.

following matrix.

more relevant

E N E R G Y A N D C L I M AT E C H A N G E
E VA L U AT I O N O F S U P P L I E R S ― S O C I A L
ASPECTSRESPECT OF HUMAN AND WORKERSRIGHTSsignificance for the stakeholders

O C C U PAT I O N A L H E A LT H A N D S A F E T Y

P R O D U C T C R E AT I V I T Y A N D
E XCELLENCEAT 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
K N O W - H O W P R E S E R VAT I O N A N DSKILLS DEVELOPMENT

DIVERSIT Y AND EQUAL OPPORTUNIT Y
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
WA S T E M A N AG E M E N T

R E L AT I O N S H I P W I T H T H E T E R R I T O R Y

TRADEMARK PROTECTIONCUSTOMER EXPERIENCE

TRACEABILIT 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
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 R A D E
UNIONSS U S TA I N A B L E W AT E R
MANAGEMENTE 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

S U S TA I N A B L E PA C K A G I N GC 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

significance for prada group

B U S I N E S S S T R AT E G Y A N DECONOMIC PERFORMANCEI N T E G R I T Y, T R A N S PA R E N C Y A N D
C O O P E R AT I O N

more relevant

The following results emerged:

Group, demonstrating its commitment to operating• again, the most significant aspect proved to be productin full compliance with current laws and regulations

creativity and excellence, which demonstrates theand to building trust-based relationships with its

fundamental impor tance — for the Group and its

stakeholders.

stakeholders alike — of the high standards of quality
and style that accompany Prada merchandise along

Compared to the results of the 2018 materiality analysis,

the entire value chain;issues related to climate change and sustainable packaging• equally relevant for the Group and its stakeholders are

assume greater importance for the company, testifying thethe issues related to the management and development

Group's increasing commitment to environmental issues.

of human capital (know-how preservation, skills

In compliance with Standard GRI 101: Foundation,

development and attraction and retention of talents);

paragraph 3, this document has been prepared in line

• aspects associated with the production processes andwith “GRI Standards: Core Option”. References to thetheir impact throughout the supply chain (respect forHong Kong Stock Exchange's ESG Repor ting Guide

human and workers’ rights, evaluation of suppliers(Main Board Listing Rules - Appendix 27) are listed inaccording to social criteria, occupational health andthe Content Index 6 .

safety and energy consumption and climate change)
resulted among the most relevant for stakeholders;• customer experience and integrity, transparency andcooperation are the issues most impor tant to the

6. N O T E S O N T H E M E T H O D O L O G Y

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
management of water resources) and to Comply or Explain provisions A1.3,
A1.4 and A1.6 (related to waste management) of the ESG Reporting Guideof the Hong Kong Stock Exchange as, currently, these topics have not beenclassified as material for the Organization according to the GRI Standards.
664The following table analyzes the repor ting of material
aspects according to GRI Standards: it repor ts theboundaries and the eventual internal or external
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 Department stores, multi-brand stores and Franchisees.

6. N O T E S O N T H E M E T H O D O L O G Y

65

6.2 T H E R E P O R T I N G P R O C E S S
SCOPEThe per formance indicators were collected on an

This document is the Prada Group's seventh - second

annual basis for 2019 and 2018 years, while for 2017

according to the GRI principles published in 2016 -the repor ting is for eleven months (February 2017

Social Responsibility Repor t and contains a description- December 2017), if not differently indicated in theof the main initiatives under taken in fiscal year 2019,text; the repor ting cycle is set according to an annual

i.e. from January 1, 2019, to December 31, 2019, andfrequency. The repor ting boundary is the same as thethe per formance trends for the three-year period 2017-

information repor ted in the 2019 Annual Repor t, or2019 where available; par ticularly significant initiatives

Prada spa and its subsidiaries, with the exception ofand events of fiscal year 2020 already known at thesome data expressly indicated in the text. The Repor trepor ting date are also included.

includes non-financial data referring to Fratelli Pradaspa, acquired on October 30, 2019.

During 2017, the Shareholders' Meeting of Prada spa
approved the change of the end of the annual repor ting

Prada spa, together with its subsidiaries collectively theperiod from January 31 to December 31 of each year,“Prada Group”, is a joint-stock company incorporated

thus realigning the fiscal year to the calendar year.

and domiciled in Italy with headquar ters in Via Antonio

Therefore, it should be noted that the repor ting period

Fogazzaro 28, 20135 Milan, whose share capital isfor 2017 consists of eleven months and for this reason,

80%-owned by Prada Holding spa, a company domiciledfor some per formance indicators it was not possible toin Italy, while the remaining shares (20%) are listed on

return a correct interpretation of the three-year trend.

the Main Board of the Hong Kong Stock Exchange.

6. N O T E S O N T H E M E T H O D O L O G Y

66

PRINCIPLESFORENSURINGSUSTAINABILITYREPORTING QUALITY

number of hours worked x 1,000,000;― whereenvironmental

data

were

unavailable,

The attention given to topics such as the environment,

conservative estimates were used that resulted inhuman rights and equal oppor tunities, and how tochoosing assumptions associated with the least positive

preserve

environmental per formance for the Company;

manufacturingknow-how,promotetheculture and protect the ar tistic heritage, are values― greenhouse gas emissions were calculated using thethat have always distinguished the corporate culture.

following emission factors:

The social responsibility repor t aims to represent the• emissions scope 1: emission factors taken from theGroup in view of these values so that its stakeholders

list of Italian standard parameters published by thecan evaluate the impacts of Prada's activities from an

Ministry for the Environment and Protection of Land

environmental, social and governance standpoint. Thisand the Sea, updated to 2019;

document was drawn up with the purpose of repor ting• emissions scope 2 - Location Based: emission

both the successful aspects and the weaknesses of thefactor per country taken from Terna's international

Prada Group, with a view toward constant improvement.

comparisons on Enerdata data - 2017 data;

The information and indicators included aim to provide• emissions scope 2 - Market Based: Country Emission

a balanced por trayal of the Group's sustainability

Factor from the European Residual Mixes of AIB

per formance and initiatives.

(Association of Issuing Bodies) updated to 2017
when available; for the United States and Canada

The process of repor ting, collecting and aggregating

it was considered an average of the Residual Mixes

the data was structured with the ultimate purpose of

published by the Green-E cer tification body; forenabling stakeholders to compare and comprehend fully

the other countries the emission factor taken fromthe information contained herein.

Terna International comparisons on Enerdata data data 2017 was considered;

In this regard, at the beginning of 2019 the Group adopted• emissions scope 3: emission factor taken from thea procedure for the preparation of the Repor t of Social

list of Italian standard parameters published by the

Responsibility ("Guidelines for the preparation of the

Ministry for the Environment and Protection of Landannual Repor t of Social Responsibility") approved byand the Sea, updated to 2019.

the Board of Directors, which indicates the principles
to be followed (materiality, measurability, impar tiality,

Finally, carbon dioxide is the only greenhouse gas

coherence) and the responsibilities for drawing up theconsidered.

document.
The 2017 and 2018 data may differ slightly from the
CALCULATION METHODOLOGY

data published in the 2017/2018 Social Responsibility

The Prada Group involved all corporate functions toRepor ts due to the aggregation of data that became

determine the contents of the 2019 sustainability repor t.

available after such Repor ts were published and due tothe update of the emission conversion factors. For theWith respect to the calculation methodology:

same reason, the 2019 data reflects the best possible― lost day rate: it is the ratio between total number

estimate using the data available when the 2019 Socialof days lost due to injuries and the total number ofResponsibility Repor t was published.

scheduled hours to be worked x 1,000;― injury rate: it is the ratio between the total numberof injuries and the total number of hours worked x
1,000,000;― occupation disease rate: it is the ratio between the
total number of occupational diseases and the total

6. N O T E S O N T H E M E T H O D O L O G Y

67

7. GRI CONTENT INDEX FOR“IN ACCORDANCE” CORE OPTIONINDICATOR

References toHKEx ESG
reporting guide

DESCRIPTIONREFERENCESOMISSIONSGENERAL DISCLOSURES
102-1

Name of the organization

Pag. 66

102-2

Activities, brands, products, and services

Pag. 4-12

102-3

Location of headquarters

Pag. 66

102-4

Location of operations

Pag. 4; 9102-5

Ownership and legal form

Pag. 66

102-6

Markets Served

Pag. 4; 9

102-7

Scale of the organization

Pag. 4; 8-9; 13-15

102-8

KPI B1.1

Information on employees and other workers

Pag. 43-44

102-9

KPI B5.1

Supply chain

Pag. 8-9; 31-32

102-10Significant changes to the organization and its supply chain

Pag. 13-15; 66

102-11

Precautionary Principle or approach

Pag. 22-24; 66-67

102-12External initiatives

Pag. 19-22; 24-31

102-13

Membership of associations

The Group's main partnerships are with: Camera Nazionaledella Moda Italiana, Altagamma, Assonime, and Confindustria
Toscana.

102-14

Statement from senior decision- maker

Pag. 3102-16

Values, principles, standards and norms of behavior

Pag. 19-21; 52-53

102-18Governance structure

Pag. 17-19

102-40

List of stakeholder groups

Pag. 63

102-41

Collective bargaining agreements

Pag. 50-51

102-42

Identifying and selecting stakeholders

Pag. 62-63

102-43

Approach to stakeholder engagement

Pag. 62-63

102-44

Key topics and concerns raised

Pag. 63-65

102-45

Entities included in the consolidated financial statements

Pag. 66

102-46

Defining report content and topic Boundaries

Pag. 63-65

102-47

List of material topics

Pag. 64-65

102-48

Restatements of information

Pag. 66

102-49Changes in reporting

Pag. 66

102-50

Reporting period

Pag. 66

102-51

Date of the most recent report

Pag. 66

102-52

Reporting cycle

Pag. 66

102-53

Contact point for questions regarding the report

Pag. 72

102-54Claims of reporting in accordance with the GRI Standards

Pag. 64

102-55

GRI content index

Pag. 68-72

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

69

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. 63-65

103-2

G.D 8

The management approach and its components

Pag. 13-15

103-3

G.D 8

Evaluation of the management approach

Pag. 13-15

201-1

KPI B8.2

Direct economic value generated and distributed

Pag. 15

GRI 204: Procurement Practices – 2016
103-1

Explanation of the material topic and its Boundary

Pag. 63-65

103-2

The management approach and its components

Pag. 31-32

103-3

Evaluation of the management approach

Pag. 31-32

Proportion of spending on local suppliers

Pag. 31-32

204-1

KPI B5.1

GRI 205: Anti-corruption – 2016
103-1

G.D B7

Explanation of the material topic and its Boundary

Pag. 63-65

103-2

G.D B7The management approach and its components

Pag. 19; 22-24

103-3

G.D B7

Evaluation of the management approach

Pag. 19; 22-24

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. 63-65

103-2

G.D A2The management approach and its components

Pag. 38-40

103-3

G.D A2

Evaluation of the management approach

Pag. 38-40

301-1

KPI A2.5

Materials used by weight or volume

Pag. 38

GRI 302: Energy – 2016
103-1

G.D A2

Explanation of the material topic and its Boundary

Pag. 63-65

103-2

G.D A2The management approach and its components

Pag. 35-37

103-3

G.D A2

Evaluation of the management approach

Pag. 35-37

302-1

KPI A2.1

Energy consumption within the organization

Pag. 37

302-4

KPI A2.3

Reduction of energy consumption

Pag. 37

GRI 305: Emissions - 2016
103-1

G.D A1

Explanation of the material topic and its Boundary

Pag. 63-65

103-2

G.D A1

The management approach and its components

Pag. 35-37

103-3

G.D A1

Evaluation of the management approach

Pag. 35-37

305-1

KPI A1.1
KPI A1.2

Direct (Scope 1) GHG emissions

Pag. 37

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

70

INDICATOR

References toHKEx ESG
reporting guide

DESCRIPTIONREFERENCES

305-2

KPI A1.1
KPI A1.2

Energy indirect (Scope 2) GHG emissions

Pag. 37305-3

KPI A1.1
KPI A1.2

Other indirect (Scope 3) GHG emissions

Pag. 37305-5

KPI A1.5

Reduction of GHG emissions

Pag. 37OMISSIONSGRI 307: Environmental compliance - 2016
103-1

G.D A1

Explanation of the material topic and its Boundary

Pag. 63-65

103-2

G.D A1

The management approach and its components

Pag. 33-35

103-3

G.D A1

Evaluation of the management approach

Pag. 33-35

307-1

G.D. A1

Non-compliance with environmental laws and regulations

Pag. 33

SOCIAL PERFORMANCE INDICATORSGRI 401: Employment - 2016
103-1

G.D. B1

Explanation of the material topic and its Boundary

Pag. 63-65

103-2

G.D. B1

The management approach and its components

Pag. 42-44; 49-51

103-3

G.D. B1

Evaluation of the management approach

Pag. 42-44; 49-51

401-2

KPI B1.2

Benefits provided to full-time employees that are not provided
to temporary or part-time employees

Pag. 44

GRI 403: Occupational health and safety - 2016
103-1

G.D. B2

Explanation of the material topic and its Boundary

Pag. 63-65

103-2

G.D. B2

The management approach and its components

Pag. 51-52

103-3

G.D. B2

Evaluation of the management approach

Pag. 51-52

403-1

KPI B2.3

Workers representation in formal joint management-worker
health and safety committees

Pag. 52403-2

KPI B2.1
KPI B2.2

Types of injury and rates of injury, occupational diseases,
lost days, and absenteeism, and number of work-related
fatalities

Pag. 51

GRI 404: Training and education - 2016
103-1

G.D. B3

Explanation of the material topic and its Boundary

Pag. 63-65

103-2

G.D. B3

The management approach and its components

Pag. 46-49

103-3

G.D. B3

Evaluation of the management approach

Pag. 46-49

404-1

KPI B3.1
KPI B3.2

Average hours of training per year per employee

Pag. 49

GRI 405: Diversity and equal opportunities - 2016
103-1

G.D. B1

Explanation of the material topic and its Boundary

Pag. 63-65

103-2

G.D. B1

The management approach and its components

Pag. 17-19; 45-46

103-3

G.D. B1

Evaluation of the management approach

Pag. 17-19; 45-46

405-1

KPI B1.1

Diversity of governance bodies and employees

Pag. 18405-2

G.D. B1

Ratio of basic salary and remuneration of women to men

Pag. 45

GRI 406: Non-discrimination - 2016
103-1

G.D. B1

Explanation of the material topic and its Boundary

Pag. 63-65

103-2

G.D. B1

The management approach and its components

Pag. 45-46; 52

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

71

INDICATOR

References toHKEx ESG
reporting guide

DESCRIPTIONREFERENCES

103-3

G.D. B1

Evaluation of the management approach

Pag. 45-46; 52

406-1

G.D. B1

Incidents of discrimination and corrective actions taken

Pag. 45OMISSIONSGRI 412: Human rights assessment - 2016
103-1

G.D. B4

Explanation of the material topic and its Boundary

Pag. 63-65

103-2

G.D. B4

The management approach and its components

Pag. 19-20; 22-23; 32;
51-53

103-3

G.D. B4

Evaluation of the management approach

Pag. 19-20; 22-23; 32;
51-53

412-1

G.D. B4

Operations that have been subject to human rights reviews or
impact assessments

Pag. 52

GRI 413: Local communities- 2016
103-1

G.D. B8

Explanation of the material topic and its Boundary

Pag. 63-65

103-2

G.D. B8

The management approach and its components

Pag. 13; 15; 34-35;
54-61

103-3

G.D. B8

Evaluation of the management approach

Pag. 13; 15; 34-35;
54-61

413-1

G.D. B8

Operations with local community engagement, impact
assessment, and development programs

Pag. 13; 15; 34-35;
54-61

GRI 414: Suppliers social assessment - 2016
103-1

G.D. B5

Explanation of the material topic and its Boundary

Pag. 63-65

103-2

G.D. B5

The management approach and its components

Pag. 31-32; 52-53

103-3

G.D. B5

Evaluation of the management approach

Pag. 31-32; 52-53

414-2

KPI B5.2

Negative social impacts in the supply chain and actions taken

Pag. 32; 52-53

GRI 416: Customer health and safety - 2016
103-1

G.D. B6

Explanation of the material topic and its Boundary

Pag. 63-65

103-2

G.D. B6

The management approach and its components

Pag. 12; 39-40

103-3

G.D. B6

Evaluation of the management approach

Pag. 12; 39-40

416-2

G.D B6

Incidents of non-compliance concerning the health and safety
impacts of products and services

Pag. 40

GRI 417: Marketing and labeling - 2016
103-1

G.D. B6

Explanation of the material topic and its Boundary

Pag. 63-65

103-2

G.D. B6

The management approach and its components

Pag. 39-40

103-3

G.D. B6

Evaluation of the management approach

Pag. 39-40

417-2

G.D B6

Incidents of non-compliance concerning product and service
information and labelingPag. 40

GRI 419: Socioeconomic compliance - 2016
103-1

Explanation of the material topic and its Boundary

Pag. 63-65

103-2

The management approach and its components

Pag. 22-24; 28-29;
39-40

103-3

Evaluation of the management approach

Pag. 22-24; 28-29;
39-40

Non-compliance with laws and regulations in the socialand economic area

Pag. 23; 40

419-1

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. Gabriele Croppi

pag. 2

ph. Mario Ciampi

pag. 6

ph. Agostino Osiopag. 10

ph. Brigitte Lacombe

pag. 15-16

ph. Agostino Osiopag. 20

ph. Brigitte Lacombe

pag. 22

ph. Agostino Osiopag. 24-25

ph. Willy Vanderperre (Prada)

pag. 25

ph. Eddie Wrey (MiuMiu)

pag. 26

ph. Laura Jane Coulson (Church's)pag. 26

Cour tesy Car Shoepag. 27

Cour tesy Marchesi 1824

pag. 32

ph. Agostino Osiopag. 33-34

ph. Alessandro Ciampi

pag. 35

ph. Attilio Caprapag. 36

ph. Agostino Osiopag. 39

Cour tesy National Geographic

pag. 41

ph. Carlo Borlenghi

pag. 42-43

ph. Francesco Lastrucci

pag. 44-48-50

ph. Agostino Osiopag. 52

ph. Francesco Lastrucci

pag. 54

ph. Bas Princen - Cour tesy Fondazione Pradapag. 55

Getty Images

pag. 56-57

ph. Andrea Rossetti - Cour tesy Fondazione Pradapag. 58

ph. Agostino Osio-Alto Piano / Ugo Dalla Por ta - Cour tesy Fondazione Pradapag. 59

ph. Marco Cappelletti - Cour tesy Fondazione Pradapag. 62

ph. Agostino Osiopag. 66

ph. Brigitte Lacombe

pag. 68

ph. Francesco Castagna

O ther pictures: Cour tesy Prada
73