SUSTAINABILITY REPORT 2023

SUSTAINABILITY REPORT 2023

TA BLE OF CONTEN TS
LETTER TO THE STAKEHOLDERS

4HIGHLIGHTS

6

1 THE OTB GROUP

9

1.1 BE BRAVE: MISSION AND VALUES

16

1.2 THE OTB GROUP VALUE CHAIN

18

1.3 MARKET PRESENCE

20

1.4 FINANCIAL INFORMATION

21

1.5 FISCAL RESPONSIBILITY

26

2 BE RESPONSIBLE. BE BRAVE.

29

2.1 THE OTB SUSTAINABILITY VISION30

2.2 THE MATERIALITY ANALYSIS PROCESS

34

2.3 STAKEHOLDER ENGAGEMENT

36

2.4 COLLABORATIONS AND MEMBERSHIPS

38

3 GOVERNANCE AND RISK MANAGEMENT

43

3.1 OTB GOVERNANCE

44

3.2 SUSTAINABILITY GOVERNANCE

46

3.3 ETHICAL COMMITMENT AND TRANSPARENCY

48

3.4 RISK MANAGEMENT SYSTEM

53

4 THE NEW FASHION SYSTEM

57

4.1 SUSTAINABLE PRODUCT DESIGN AND CIRCULARITY

58

4.2 PRODUCT QUALITY AND SAFETY74

4.3 THE SUPPLY CHAIN

75

4.4 RESPONSIBLE SOURCING AND TRACEABILITY

77

4.5 FAIR WAGES AND WELL-BEING ALONG THE VALUE CHAIN

79

5 CUSTOMER EXPERIENCE, AUTHENTICITY AND TRANSPARENT COMMUNICATION

83

5.1 CUSTOMER EXPERIENCE

84

5.2 CUSTOMER RELATIONSHIP AND TRANSPARENT COMMUNICATION

88

5.3 ANTI-COUNTERFEITING

92

6 PROTECTING OUR PLANET

97

6.1 ACTING ON CLIMATE CHANGE

98

6.2 OTB LOGISTICS SYSTEM

107

6.3 PROTECTION OF THE OCEANS AND WASTE MANAGEMENT

109

6.4 WATER STEWARDSHIP AND CHEMICALS MANAGEMENT

112

6.5 PROTECTING BIODIVERSITY

114

2023 Sustainability Report7 BRAVE TOGETHER

117

7.1 BRAVE ENGAGEMENT & RESOURCE DEVELOPMENT

119

7.2 BRAVE LEADERS & TALENTS

126

7.3 PEOPLE CARE

132

7.4 EMPLOYEES HEALTH AND SAFETY

134

8 OTB FOUNDATION

139

8.1 CHILDREN AND YOUNG PEOPLE

143

8.2 WOMEN

144

8.3 INTEGRATION

146

8.4 EMERGENCIES

147

9 APPENDIX

151

9.1 METHODOLOGICAL NOTE

152

9.2 PERFORMANCE DATA AND INDICATORS

154

9.3 LETTER FROM THE AUDITORS

160

9.4 GRI CONTENT INDEX

164

2023 Sustainability ReportL E T TER TO THE STAK EHOL DERS
Sustainability must be, first and foremost, a state of mind. This is the vision I believe in, and it stems
from the values passed on by my family, which I share every day with the 7,000 people who workwith me at the OTB Group. Together we have embarked on a path that reflects our solid commitment, included in the Be Responsible. Be Brave. strategy, which involves all the Group brands andcompanies and guides us towards the same goal.
Each Group company, with its own distinctive characteristics, contributes to the achievement of
concrete results, in which I take great pride and which you can read about in this third Sustainability
Report. Our achievements drive us towards ever more ambitious goals, to make an active contribution to the transition to a more responsible industry.
On the environmental front, in 2023 we obtained an additional decrease in the Group’s emissions
from direct operations and increased the share of energy procured from renewable sources ininternal operations to 56% globally, rising to over 99% within Europe. In addition, purchases of
low-impact materials by all Group brands rose to more than 17% in 2023, and we have alreadymapped out a strategic path for further growth in the coming years.
We continued close cooperation with our supply chain, which is crucial for the development of anincreasingly responsible and inclusive fashion industry. Ever since it was established, the Grouphas invested in building trust-based relationships with its suppliers, sharing its sustainability values
and moving along a common path. We give our partners concrete support, both from a financial
point of view, thanks to the C.A.S.H. project, now in its tenth year, which provides our suppliers withaccess to subsidised credit conditions, and in terms of visibility, through the M.A.D.E. campaign set
up to showcase the craftsmanship of our supply chain and help promote Made in Italy.
We believe that only through collaboration with the entire industry and the other players in the
fashion business we will be able to achieve results faster and more effectively. This is why OTB ispart of The Fashion Pact, and one of the founding members of the AURA Blockchain Consortium,
which uses blockchain technology to promote socially responsible business practices, and of theRe.Crea Consortium, an initiative set up under the Italian National Chamber of Fashion to manage
the end-of-life of textile products and encourage research into innovative recycling solutions.
None of this would be possible without the dedicated commitment of the people who work in
the Group and contribute to our continuous improvement. This is why OTB optimises the talent,
uniqueness and diversity of all its employees through initiatives to support the work-life balance.
In 2023, OTB and Diesel obtained National Gender Equality Certification, an important recognition
that encourages us to make further progress in this area.
I am also very proud of what, through the OTB Foundation, we continue to do on a daily basis forpeople experiencing difficult times, such as women who are victims of violence, children, people
with financial problems or involved in humanitarian emergencies and wars around the world. I
believe in a circular business model, where a company that makes a profit has a duty to give backsome of that value to the community, which is why we have been trying to make a difference with
our Foundation since 2006. In the last 18 years we have helped over 350,000 people through morethan 350 social projects, but we know there is still a lot more to do. We will never tire of working inthis area.
Sustainability is a state of mind, but it is also a path. And ours has solid roots and a well thought-out
roadmap for the future.
Be Responsible. Be Brave.
Renzo Rosso

42023 Sustainability Report5THE OTB GROUP IN 2023

7

100+

610

1.9

348

140

Group Brands andProduction Hubs

Billion €Turnover as at 31.12.2023

1.8

Billion €Revenues from the sale ofgoods and services(excluding royalties)

Countries in which theGroup sells goods andservices

Mono-brand stores directly
managed by OTB

Million €EBITDA

Million €
EBIT

201

25

Million €Net investments

1

Countries in which theGroup is directly present

HIGHL
E N H A N C I N G L O C A L S U P P L I E R S A N D M A D E I N I TA LY

78%

64%

65

90%

Suppliers based in Italy (+7percentage points compared
to 2022)

Suppliers active in the C.A.S.H.
Project to support the supply
chain

Local suppliers 2(+7 percentage points
compared to 2022)

Percentage of credit
assigned by suppliers throughthe C.A.S.H. project.

1. This number refers to countries where the Group is present with its legal entities or local branches, mono-brand retail stores, outlets
or logistics hubs. The countries where the Group's legal entities are under liquidation have not been considered. Including Franchising,
the number of countries rises to 138.
6

2. “Local suppliers” refers to suppliers located near the main OTB Brand sites. Including the Group's luxury segment suppliers based in
Italy, the percentage rises to 85%.

CONSUMPTION AND EMISSIONS IN 2023

56.3%

-2.3%

99.4%

-19.2%

Electricity in internal operations
from renewable sources, global
perimeter (+4 percentage points
compared to 2022)

Electricity in internal operations
from renewable sources, European
perimeter, directly operated sites

Reduction in Scope 1, Scope 2
market-based and Scope 3
emissions compared to 2022

Reduction in direct emissions(Scope 1 and Scope 2
market-based) compared to 2019

IGHTS
PEOPLE

Gender equality certification

OTB and Diesel obtain certification under Italy’s National Recovery and Resilience Plan.

6,751

Employees

54%

+350

Social projects supported by
the OTB Foundation

350,000
People helped with the support of
the OTB Foundation

2023 Sustainability Report

Women in managerial positions

7

8
8

2023 Sustainability Report
2023 Sustainability Report﻿

The OTB Group

THE OTB
GROUP
1THE OTB GROUP

1OTB, an acronym for “Only The Brave”, is a diversified international fashion group
comprising the iconic brands Diesel, Jil Sander, Maison Margiela, Marni and Viktor&Rolf(hereinafter also “the Brands”), a minority shareholding in the American brand Amiri andtwo important production companies: Staff International and Brave Kid (hereinafter also“the Production Hubs”). The Group also promotes non-profit activities through the OTBFoundation.
OTB believes in pushing beyond the frontiers of fashion and style by fostering the creativity of international talents and expressing the innovative spirit and uncompromisingbravery of its founder and Chair Renzo Rosso. With approximately 7,000 employees
worldwide, the Group is distinguished by its digital approach centred on the consumer,
its concrete long-term commitment to the creation of a responsible business, and its
close attention to social issues, which it also follows through the OTB Foundation.
The Group's internationally recognised Brands embrace the expertise of tradition while
integrating innovation and responding to the needs of new generations of consumers.

102023 Sustainability Report

The OTB GroupThe OTB Brands

OTB’s innovation centre

The OTB Foundation
The OTB Production Hubs

2023 Sustainability Report

The OTB Group11

Since its creation in 1978, DIESEL
has positioned itself as a real
alternative to traditional luxury.
Diesel injects its creative energy
into everything it makes: a rangeof products that includes denim,
ready-to-wear clothing, accessories, fragrances, interior design,
automotive and beyond. An
extremely high level of innovation,
especially in denim, is a fundamental value for Diesel, together
with its respectful vision of people
and the environment. Diesel is thecreative engine of new generations, translating the world’s social
cultures into unique products andexperiences: For Successful Living.
Despite its growth, Diesel has
retained its original philosophy: abrand standing for passion, individuality and self-expression, incentivising inclusivity and sociality andpromoting a lifestyle of optimism,
imagination, innovation, provocation and, above all else, fun.

122023 Sustainability Report

MAISON MARGIELA is a Parisian haute couture house founded
in 1988 by Belgian design Martin
Margiela on the principles of
non-conformity and subversion ofnorms. Under the creative directionof John Galliano, traditional dress
codes are inverted and redefined in
an analytical wardrobe for the digital age. Driven by instinct, Maison
Margiela is devoted to uncompromising creativity invigorated
by values of authenticity, radicality and self-expression. Maison
Margiela’s distinguishing elements,
notably its blank, white label withfour stitches, its numerical codeand the use of brush-stroked whitepaint, continue to represent the
Maison’s signature today.

Innovative and multifaceted, Marnicelebrates individuality through arigorous yet disruptive language.
Founded in 1994, Marni is recognised for its unique approach tothe use of materials and colours,
expressed through collections thatenhance the authenticity of craftsmanship. The Brand’s aesthetic
approach reflects the vision ofcreative director Francesco Risso:Marni’s eccentric elegance offersa range of possibilities, an exploration of ideals, a forward-looking
lifestyle in constant contact withthe world of art and a community of talents from many different
background, achieving its highest
expression in special collaborations
and capsule collections.

JIL SANDER is the essence ofmodernity and sophistication. Its
unconditional dedication to design
combines elegance and purity with
innovative materials and exceptional quality. The refinement of
the cuts, the play of contrasts andthe perfection of the details create
an approach to style characterisedby the utmost care, precision andcraftsmanship. Under the creative
direction of Lucie and Luke Meier
since 2017, the Milanese brandembraces the modern conceptof luxury, integrating essentiality
with sensuality and artisanal techniques.

VIKTOR&ROLF is an avant-garde luxury fashion house founded
in 1993 by fashion artists Viktor
Horsting and Rolf Snoeren. Widely recognised and respected forits provocative haute couture andconceptual glamour, Viktor&Rolf
aspires to create spectacular
beauty and unexpected elegancethroughanunconventional
approach to fashion.

BRAVE KID is a company that
researches, develops, produces and distributes ready-towear collections and accessories for children. Its portfolio oflicensed brands currently includes
Diesel, Marni, Dsquared2, N°21,
MM6 - Maison Margiela , MYAR
and Max&Co. The bravekid.com
website is the online reference forluxury clothing with a truly uniquestyle for kids, children and babies.

STAFF INTERNATIONAL specialises in research, product development, production and global distribution of ready-to-wearcollections, bags, footwear andaccessories. Most of its products bear the Made in Italy logo,
the symbol of quality and excellence. Currently, Staff International
acts as an industrial platform forsome of the OTB Brands, including Maison Margiela and its MM6
contemporary line, and the Marni
and Jil Sander ready-to-wear andbags, footwear and accessories
collections. At the same time, thecompany works on an exclusive
worldwide basis with Dsquared2
on research, product development,
production and omni-channel
distribution of its clothing collections. Its footwear, bags and smallleather goods division also handles
product development for theDiesel Brand.

BVX, Brave Virtual Xperience, is
OTB's centre of excellence, led by
Stefano Rosso, dedicated to thedevelopment of products, projects
and experiences for the virtualworld or metaverse. BVX's mission
is to develop new forms of interaction with end customers to enhancetheir engagement through digitalproduct offerings, with a particularfocus on NFT and gaming.

OTB FOUNDATION was established in 2006 as the OTB Group’s non-profit
organisation. Its mission is to take swift and constructive action in emergency situations, guaranteeing equal opportunities and inclusion. The Foundation’s projects are selected according to specific criteria: innovation, direct
social impact and long-term sustainability.
To date, it has invested in more than 350 social development projects in
Italy and around the world, which have had a direct impact on the lives ofaround 350,000 people. The Foundation guarantees that all the funds itraises go directly to the beneficiaries, without being side-tracked.

2023 Sustainability Report

The OTB Group

13

THE OTB TIMELINE

1978

Renzo Rosso establishes the Diesel Brand, acquiring full ownershipin 1985. He begins working immediately with a team of stylists
to turn Diesel into a global fashion icon. In the early 1990s, Diesel
begins opening stores around the world.

1984

Renzo Rosso establishes Dieselito, later
named Diesel Kid, to produce
children’s clothing. Over time, Diesel
Kid comes to manage licences of otherbrands.

2000

Renzo Rosso acquires Staff International, which, underlicense, creates, produces and distributes the collectionsof international brands with a predominantly Made in Italy
supply chain of excellence.

2002

Renzo Rosso establishes Only The Brave as
the holding for all the fashion companies in his
portfolio, later changing its name to OTB.
That same year Only The Brave acquires
Maison Margiela.

2006

Formation of the Only The Brave Foundation.

2008

Only The Brave acquires Viktor&Rolf.

2012

Diesel Kid becomes Brave Kid and over thefollowing years consolidates its children’s
clothing development and distribution businessthrough a series of agreements and licensing
contracts with brands including Diesel, MM6,
Maison Margiela, Dsquared2, Marni, N 21, Myarand Max&Co.
The Only The Brave Group is renamed OTB.

2013

Staff International launches the C.A.S.H. project (Credito
Agevolato - Suppliers’ Help), which guarantees Italian
suppliers easier, faster and more favourable access to credit.
OTB acquires a majority stake in Marni and becomes its sole
shareholder in 2015.

14

2019

OTB acquires a minority stake in Amiri.

2021

OTB acquires Jil Sander.
OTB establishes Brave Virtual Xperience (BVX), a company
entirely dedicated to the development of projects, content andproducts for the virtual gaming world.
Together with Prada Group, LVMH and Cartier (Richemont Group),
OTB sets up the AURA Blockchain Consortium to develop andconsolidate new standards in innovation, transparency andblockchain technology for the luxury industry.
OTB launches the “Be Responsible. Be Brave.” Group
Sustainability Strategy.
OTB joins the ZDHC (Zero Discharge of Hazardous Chemicals)
programme for the elimination of hazardous chemicals from thefashion industry.
OTB becomes a member of LWG (Leather Working Group), aninternationally recognised reference standard for the leather
manufacturing industry.

2022

OTB obtains a credit line tied
to ESG objectives from Banca Intesa.
OTB promotes the creation of theRe.Crea Consortium with Prada Group,
Dolce&Gabbana, MaxMara Fashion Group,
Moncler Group and Ermenegildo Zegna
Group, and assumes the vice-presidency. The
Consortium aims to respond to the European
Directive on Extended Producer Responsibility
for textile waste and promote research anddevelopment into innovative recycling solutions.
OTB joins The Fashion Pact, the global coalitionof companies working together to share bestpractices and find new solutions to reduce theenvironmental impact of the entire fashionindustry.
OTB publishes the first Group Sustainability
Report. The report covers financial year 2021
and includes the calculation of the 2019, 2020
and 2021 Carbon Footprints.

2023

The C.A.S.H. project marks its 10th anniversary.
OTB acquires a majority stake in Frassineti,
the historic Florentine leather goods atelier, previously a Groupsupplier.
OTB launches the M.A.D.E. Made in Italy, Made Perfectly
project, presenting a campaign to showcase the Italian fashionand luxury supply chain that involves the OTB Group’s top
suppliers.
OTB inaugurates the new Maison Margiela Headquarters inPlace des Etats-Unis in the Chaillott district, located in Paris’16th arrondissement. The new building hosts the Brand’s
offices, atelier and showroom.
OTB and Diesel obtain Gender Equality Certification under
Italy’s National Recovery and Resilience Plan.
OTB receives approval for three ambitious emissionreduction targets from the Science Based Targets
initiative (SBTi).
OTB publishes its second Group Sustainability Reportcovering financial year 2022.
OTB approves the Group’s new impact materiality
analysis.

2023 Sustainability Report

1 .1 B E B R AV E : M I SSI O N AND VALU ES“Building not the biggest, but the most alternative fashion Group”3 is the mission that OTB Chair
Renzo Rosso has given the Group, whose founding values are courage, respect, excellence andevolution.
The OTB Group promotes the sustainable development of successful businesses for all its
member companies and helps its talents turn ideas into distinctive creations for unconventional,
forward-thinking individuals.
This vision is put into practice through the pursuit of the following objectives.
BUILDING BRANDS: OTB helps the Group’s
Brands and Companies develop successful
businesses, enhancing the uniqueness anddistinctive features of each one.
BOOSTING GROWTH: OTB provides theBrands and Companies in its portfolio with expertise, tools and services to facilitate growth.

CHALLENGING THE RULES: by encouraging abold alternative approach to fashion and business, OTB constantly questions establishedrules to deliver unconventional, forward-thinking projects and strategies.
FOSTERING CREATIVITY: creativity is thedriving force and the heart of the Group’s activities. OTB is committed to discovering andsupporting brave, one-of-a-kind talents.

3. Quote from OTB Chair Renzo Rosso.

162023 Sustainability Report

The OTB Group1 .2 T H E OT B G RO U P VALUE CH AIN
The fashion industry’s value chain is highly articulated, with a large number of players and stakeholders operating at various levels and in the different processes involved in the creation anddevelopment of products and services.

Product designand development

Production of
raw materials

Raw material
processing

Product design

Cultivation

Fibre processing

Trend analysis

Breeding

Textile treatments

Design anddevelopmentof the sample
collection

Production ofsynthetic fibres

Packaging processing

Testing
and improvement

Production ofrecycled materials

Including: ginning, spinning,weaving, treatments, dyeing,finishing.

Production
and assembly
Commercialised
products
Industrialised
products

Procurement of raw
materials(Industrialised)

DIRECT PHASEManaged directly by the
Production Hubsand OTB Brands

Product design and development. Productdesign is entrusted to the Creative Directors
and Style Offices of the OTB Brands. In cooperation with the Production Departments,
the R&D Offices then develop prototypes andsamples, which undergo specific quality anddurability tests and inspections before work
can begin on the development of the collections as a whole.
Production of raw materials. This stage comprises the upstream activities in the OTB value
chain: cultivation of natural fibres, animal husbandry, extraction of polymers for the production of synthetic fibres and processes to obtain
recycled materials. The Group commits to purchase low climate impact materials and materials that respect animal welfare.

18

2023 Sustainability Report

UPSTREAM STAGES
Outsourced by
OTB's Production
Hubs and Brands

Outsourced by
OTB's Production
Hubs and Brands

Raw material processing. The raw materials
are transformed into fabrics and accessories
that make up the products of each collection.
This stage involves a range of processes, suchas ginning, spinning, weaving, treatments, dyeing and finishing, where the Group cooperates
with expert suppliers with excellent know-how.
Production and assembly. The semi-finished materials from the previous stages aretransformed during the manufacturing andassembly stages into finished products, withthe possible addition of appliqués, details, embroideries and prints. Production and assembly activities are managed by the Production
functions of the different Brands of the Group.

The OTB GroupIn measuring and managing its economic, environmental and social impact, the OTB Groupconsiders all its business relationships along the value chain and the full life cycle of the products itbrings to market. The stages of the value chain include: product design and development, production, from fibre processing to the finished garment, distribution and after-sales activities, including
end-of-life management of garments and accessories.

Distribution
Main distribution channels:
Direct channels• Retailers• Sales outlets• Online

Use and careof products
End consumer
The Brands interface with end
consumers through the CRM
system, personal assistance instores and their social channels

Indirect channels• Wholesale• Distributors• Travel retail

DIRECT PHASEManaged directly by OTB's
Production Hubs and Brands

Managementof end of life
Recycling Management
Waste disposal
Also through transparent
labelling and communication

DOWNSTREAM STAGES
Partly managed directly by the
OTB Brands

Partly managed
directly by the OTB Brands

Distribution. Distribution is the responsibility of
the OTB Logistics Department, which handles
the receipt and storage of finished products,
the customer order allocation, the picking andtransportation from the suppliers to the warehouses (directly or indirectly depending on
specific agreements). The Logistics Department also organises distribution to the direct
sales channels – retailers, outlets and e-commerce – and the indirect channels – wholesales, distributors and travel retails – as well as
product transportation from retailers and outlets to warehouses.

Use and care of products. This stage includes
activities aimed at extending the product life
cycle. To encourage people to care for theirclothes, the Brands of the OTB Group advise
their customers on practices to ensure prolonged products use. Various communication
channels are used for this purpose, such as
direct assistance at the time of purchase, theCustomer Service Department or the website.

2023 Sustainability Report

The OTB Group

End-of-life management. The Brands of theGroup are becoming more proactive in identifying initiatives for product end-of-life management, including customers involvement. In
this regards, the OTB Group also promotes thereuse and recycling of warehouse inventories
through specific projects and discussions withother players in the fashion industry.

19

1 .3 M A R K E T P RE SE NCE
The OTB Group organisation structure consists of the Parent Company, which acts as the holding
and provides intragroup services, the headquarters of the Brands and Production Hubs, and the
distribution branches located around the world.
OTB’s Brands are present worldwide through direct and indirect channels. The direct channels
consist of mono-brand stores, outlets and e-commerce sites, while indirect distribution is organised through wholesale channels: multi-brand stores, shops-in-shop in department stores, travel
retailers and other physical retailers, and multi-brand online distributors. The Group also generates
royalties revenues from brand licensing agreements with third parties for specific merchandise
categories.
In 2023, the number of OTB Group mono-brand stores rose to 610 directly operated retail stores.
Direct mono-brand distribution network (no.)

20

2021

2022

2023

Italy

49

48

51

EMEA (excluding Italy)

203

182

134

America

54

61

66

APAC (excluding Japan)

76

101

146

Japan

215

215

213

Total

597

607

610

2023 Sustainability Report

The OTB Group

1 .4 FIN A N C I A L I N F O R M AT ION

FINANCIAL HIGHLIGHTS (in millions of Euro)

1,867.7

1,777.9

349.4*

201.0

139.9

60.3

TOTAL REVENUESREVENUES FROM SALES OF GOODS ANDSERVICES

EBITDA (STATUTORY)NET INVESTMENTSEBITNET FINANCIAL POSITION* (Editor's note; differs from the management figure value due to accounting reclassifications)

During 2023, OTB's net sales reached EUR 1,777.9 million, compared to EUR 1,632.9 million in theprevious year. Of the total amount, EUR 923.9 million arose from direct channels (retail, outlets,
online), and EUR 854.0 million from indirect channels. The year-on-year increase of 8.9% was driven by increased sales in direct channels, the positive performance of the luxury brands and theturnaround of Diesel.
2023

2022

variation

1,765,800

1,624,062

141,738

12,082

8,843

3,239

1,777,882

1,632,905

144,977

39,82043,937(4,117)

1,817,702

1,676,842

140,860(in thousands of Euro)
Revenues from sales of goods and services
Revenues from other sales
Revenues from sales
Royalties
Revenues from sales and services

The geographical breakdown of revenues from sales and services, which include net sales andrevenues from royalties, was as follows (amounts in millions of Euro):
Italy

Rest ofEuropeAPAC(excl. India)

Japan

AmericaRestof the world(incl. India)

Total

Revenues

344.1

503.6

251.6

410.7

203.1

104.6

1,817.7% of revenue

18.9%

27.7%

13.8%

22.6%

11.2%

5.8%

100.0%

2023 Sustainability Report

The OTB Group21

All the regions reported steady growth, with particularly strong performance in the APAC (Asia-Pacific) region, which played a significant role in driving the Group's overall growth. The Japanesemarket maintained its key position, accounting for 22.6% of total business.
Direct channel sales accounted for 52% of total sales, compared to 46.6% the previous year. Retailsales showed significant growth of 25.5 % over 2022, due to increased sales in existing stores andnew openings. Online sales consolidated their importance, with a 20.3% improvement from 2022.
Revenues from royalties amounted to EUR 39.8 million.
Group EBITDA was EUR 349.4 million, with an EBITDA margin of 18.7%. EBIT was EUR 139.9 million,
with an EBIT margin of 7.5%. Profit for the year was EUR 90.4 million.
The Group's total investments amounted to EUR 206.0 million, as follows: (amounts in millionsof Euro)11.3

INTANGIBLE FIXED ASSETS

5.0

ENLARGEMENT OF THE REPORTING
SCOPE

189.7

TANGIBLE FIXED ASSETS

In particular, investments in tangible fixed
assets included the purchase of the building
housing the Maison Margiela headquarters inParis, for a total of EUR 120.2 million. Investments in the other categories mainly related tothe development of the retail network, with the
opening of 76 new outlets in key markets suchas China, Korea and the United States, as wellas in Europe.
The Group’s net financial position was positive,
at EUR 60.3 million.

22

2023 Sustainability Report

The OTB GroupThe Group’s attention to responsible conduct is also reflected in the management of resources, through the generation and distribution of wealth among its stakeholders. Economic value
generated by the OTB Group in 2023 amounted to EUR 1,860 million, an increase of 6.5% over theprevious year. In parallel, economic value distributed by OTB rose by 7.9% to more than EUR 1,597
million. Specifically, 85.8% of economic value generated by OTB was distributed to internal andexternal stakeholders; the remaining 14.2% stayed within the Group.

Economic value generated and distributed (in thousands of Euro)
2021

2022

2023

Economic value generated by the Group

1,673,072

1,746,696

1,860,912

Revenues from sales of goods and services

1,449,110

1,621,224

1,765,800

Revenues from other sales

6,871

8,843

12,082Other revenues

42,15569,07550,031

Royalties

31,591

43,93739,820Financial income

1,418

626

5,673

Equity investments

9,645

5,054

-1,712

Exchange-rate gains (losses)

2,050-2,063-10,782

130,23200

Economic value distributed by the Group

1,376,626

1,480,210

1,597,658

Economic value distributed to suppliers

997,856

1,076,024

1,148,986

Economic value distributed to employees

300,300

338,855

363,273

Economic value distributed to shareholders

37,22734,78542,721

Economic value distributed to public authorities

41,087

29,76041,491

Economic value distributed to the community

156

786

1,187

296,446

266,486

263,872

7,229

6,103

4,848

-51

-11,950-19,474

Depreciation and amortisation

167,810

187,313

209,503

Gains

121,458

85,02068,995Business combination

Economic value retained by the Group
Provisions and impairment losses
Total deferred taxes

94.7% of economic value distributed went to employees and suppliers, two stakeholder categories considered essential for the Group's success. Value distributed to the community increased
by 51.0% in 2023 compared to the previous year, thanks to the continued commitment of the OTBFoundation and the financial support the Foundation receives from Group companies and external
stakeholders.

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The OTB Group23

ECONOMIC VALUE DISTRIBUTED BY STAKEHOLDERS

2.7%

Shareholders

2.6%

Public administration

22.7%

0.1%

Community

Employees

71.9%
Suppliers

C.A.S.H. Project
During 2023, OTB continued its commitment
to the C.A.S.H. (Credit Facilitated Suppliers'Help) project, launched in collaboration with
the BNP Paribas Group, which is now in its
tenth year. Thanks to this initiative, OTB's Italian suppliers are guaranteed a facilitated access to credit, with faster lead times and morefavourable conditions.
Suppliers are selected on the basis of the quality and reliability of the services they offer, withthe aim of supporting the entire supply chain
and promoting the Made in Italy.
The programme is also designed to improve
suppliers’ financial position, raise their credit
ratings and reduce net invested capital. Essentially, C.A.S.H. provides competitive factoring
interest rates without recourse terms. In March
2022, the economic conditions were revised,with a 33% reduction in commission fees for
suppliers.

24

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The OTB Groupt

Since the first agreement signed by Staff International in 2013, the number of suppliers involved
has steadily increased. To further extend support to the entire Group supply chain, the programme
was expanded in 2020 to include Diesel and Brave Kid suppliers. In 2023, it was activated for 65
suppliers4, representing 23% of the total cost of sales of Italian strategic suppliers, in line withthe previous year. Through the programme, suppliers covered 90% of their invoices. The project
involves micro enterprises (41%), small companies (37%) and medium-sized companies (22%)5.
Since the C.A.S.H. project was set up, a total of around EUR 550 million has been discounted,
highlighting the growing importance of OTB's support for local craftsmanship and for Made in
Italy, and helping to consolidate a closer and more robust relationship between the Group and its
supply chain.

IMPACT GENERATED BY THE OTB C.A.S.H. PROJECT

Number of suppliers taking part in the C.A.S.H. project1

65

active suppliers
representing

23%of the total
cost of sales based in Italy
from strategic suppliers.
These suppliers discounted

90%of their credits
through theproject.

36

4. Although the overall number of suppliers was unchanged from the previous year, several companies left the programme due totermination of their agreements with the Group or long-term non-use of the service and a number of new suppliers joined.
5. The companies are classified as micro, small, medium and large, based on the revenue criterion established by the European Union.
Supplier turnover refers to 2022.

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25

1 .5 F I SCA L RE SP O N SIBILIT Y
The Group’s fiscal operations guarantee full
conformity to national and international laws
and with the top industry compliance standards. Management of taxes and fiscal risk isaligned with the Group’s strategic and commercial objectives and with the principles ofhonesty, integrity and fairness set out in the
Code of Ethics. The Group also works to build
transparent collaborative relations with the tax
authorities and with third parties.
Transparency in accounting is ensured by theprinciples of truth, accuracy, completenessand reliability in documents, management operations and the related accounting records.
The information in the Group’s accounts must
be correctly reflected in its tax returns to create a proactive relationship with the State Administration and the Tax Authorities.
Due to operational requirements and businessobjectives, the OTB Group has a direct presence with local offices in the main countries
in which it operates. In this context, it should
be noted that tax regulations may differ fromthose applied in the country where the Group
headquarters are located; to mitigate the risks
associated with the interpretation of different
tax regulations, OTB has proactive contacts
with stakeholders, and the support of qualified
tax advisors in each country of operation.

26

Specifically, the Parent Company's Tax Department, headed by the Group Tax Director,
deals with the following areas:• Risk management: in collaboration with the
OTB Corporate Governance & Internal Audit
Department, the Tax Department defines
measures for the implementation of the
Tax Control Framework (TCF). The Groupis taking steps to strengthen its tax risk
control system by providing a consistent anduniform guidance on risk management, andensuring timely risk identification and effective measurement in different countries.
• Compliance management: in collaboration with the Statutory & Tax Reporting A&F
Shared Service Centre Department, the Tax
Department is responsible to ensure compliance with Italian direct and indirect tax regulations, including computation of taxationand preparation of tax returns.
• National taxes: the Tax Department manages and coordinates tax benefits and audits
by the Tax Authorities.

Management of Group tax matters involves
a number of entities and functions: the OTBTax Department, which is responsible for thedevelopment of fiscal strategy for the entire
Group, the Financial Division and the Tax Departments of the subsidiaries in each country
where the Group is present.

• International taxes: the Tax Department
supports the branch financial managers on
fiscal matters and provides central management and coordination of transfer pricing
and other tax issues relating to cross-border transactions, extraordinary transactions
and related audits by local tax authorities.
The Tax Department takes all the necessary
measures to monitor and manage compliance with the BEPS (Base Erosion and Profit Shifting) project and the new OECD tax
regulations.

2023 Sustainability Report

The OTB GroupAll intragroup transactions are based on a transfer pricing policy aligned with the Arm’s Length
Principle, the international standard set out by the Model Tax Convention and referenced by theOECD Guidelines on transfer pricing for multinationals and tax authorities. For correct assessmentof tax risks, if necessary the Group draws up Advance Pricing Agreements (APAs) with local tax
authorities to establish the criteria to be used to determine transfer prices.
OTB has direct operations in 256 countries with 67 subsidiaries and 12 permanent organisations(excluding the OTB Foundation and the minority interests in the MIP Graduate School of Businessand the Atelier Luxury Group LLC). Each country has its own tax laws and tax assessment procedures. This means that tax rules or tax rates could differ for each company within the Group. Grouptaxation is subject to amendments as a result of changes in the regulations in the countries where
the Group operates and in the earnings of the individual companies in their respective countries.

6. This number refers to countries where the Group is present with its legal entities or local branches, mono-brand retail stores, outlets
or logistics hubs. The countries where the Group's legal entities are under liquidation have not been considered.

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27

28

2023 Sustainability Report

Be Responsible. Be Brave.

BE
RESPONSIBLE
BE
BRAVE
2
BE RESPONSIBLE.
B E B R AV E .

2023 Sustainability Report
2023 Sustainability Report2

2 .1 T HE OT B SU STA I NABILIT Y VIS ION
The “Be Responsible. Be Brave.” Strategy defines the OTB Group’s short, medium and long-term
environmental and social sustainability goals, focusing on the impacts generated and experienced
along the entire value chain. It also incorporates the United Nations 2030 Agenda's Sustainable
Development Goals (SDGs).
Specifically, the Sustainability Strategy is based on three pillars: The New Fashion System,
Protecting Our Planet and Brave Together, each of which encompasses specific measurable
targets related to the material topics of the OTB Group. 7

7.

30

Be Responsible. Be Brave.

THE NEW FASHION SYSTEM
This pillar defines the OTB Group's commitment to the development of an increasingly responsible fashion industry, paying attention to both environmental and social impacts along the entire value chain. Innovative product design, the adoptionof circular business models, the search for alternative materials, the use of increasing proportions of recycled and certified fabrics and the improvement of garment
durability are just some of the initiatives taken to contribute to a tangible reduction in the impact generated by the Group. OTB is also committed to promoting therespect of human rights, appropriate working conditions and fair wages along the
supply chain, and to improving traceability.
The activities in this pillar are related to the following SDGs: 5, 8, 9, 12, 13 and 15.

PROTECTING OUR PLANETThis pillar sets out OTB's commitment to the protection of the environment andecosystems by reducing the Group’s greenhouse gas emissions, preserving biodiversity, protecting the oceans and developing a responsible water stewardshipand chemical management system. As part of its fight against climate change, theGroup has set itself ambitious targets, including Net Zero greenhouse gas emissions
by 2050, in line with the Paris Agreement. To fulfil this and other commitments, theGroup companies are working together to implement an effective decarbonisation
strategy.
The activities in this pillar are related to the following SDGs: 13, 14 and 15.

BRAVE TOGETHERThis pillar defines the OTB Group's commitment to building a system of governanceand stakeholder relations based on transparency, ethics and respect for people.
The Group ensures open and inclusive working environments that promote lifelong
learning, respect for diversity, gender equality and employee well-being. Furthermore, through the OTB Foundation activities and partnerships, the Group is active
in creating a positive, concrete and long-term social impact in local communities
and areas of the world in emergency situations.
The activities in this pillar are related to the following SDGs: 1, 2, 3, 4, 5, 8, 10 and 17.

7. See "The materiality analysis process” section for a list of material topic.

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31

SUPPORTING THE SDGS

The table below shows the Sustainable Development Goals (SDGs) referenced by the pillars of the OTBStrategy.

THE NEW F A S H I O N S Y S T E M
Responsible sourcing and traceability
Sustainable design and circularity
Fair wages and welfare in the value chain
Customer experience, brand awareness and reputation

P R OT E C T I N G O U R P L A N E T
Climate strategies
Protection of the oceans
Water stewardship and chemical management
Biodiversity

BRAVE TOGETHER
Responsible governance and ethical businessSocial impact
Diversity, equality and inclusion
Employee well-being, health and safety
Talent attraction and retention

Type of contribution:

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2023 Sustainability Report

Activity related to the
OTB Group Core Business

Be Responsible. Be Brave.

Activities in which the OTB Group
organises internal initiatives or projects

FOR RESPONSIBLE LIVING: THE DIESELSUSTAINABILITY STRATEGY"Sustainability is not just a department, it is a mindset that needs to be implemented by each oneof us. Fortunately, at Diesel we have a natural curiosity and a common approach to finding solutions to environmental and social questions relating to what we do."A. Rosso, Diesel Sustainability Ambassador
Diesel was born to be the alternative: the alternative to luxury, and the alternative toclassic five-pocket jeans. The Brand has always used its marketing campaigns toraise public awareness on environmental and social questions. In 2019, it decided to apply its non-conformist spirit and passion for sweeping change to offer
new solutions to the conventional practices of the fashion industry based on
innovative tools designed to establish a circular business model and low-impact products. The aim is to present a brand and products made not only
For Successful Living, but also For Responsible Living, an invitation that has
become the actual name of the Diesel Sustainability Strategy. The goal is tointegrate sustainability into Diesel’s strategic decisions and daily activities anddraw up a plan of initiatives it intends to carry out in the interest of current and future generations. As part of its For Responsible Living strategy, Diesel has set targets
and planned action to improve its sustainability performance and contribute to a positive
impact in the fashion industry. The Strategy was officially launched in January 2020 and is structured around four pillars:
BE THE ALTERNATIVE: Diesel is committed to creating alternative products and packaging, using low-impact materials and investing in innovation and collaboration at every step in the value chain.
STAND FOR THE PLANET: Diesel is committed to protecting the environment and climate by
reducing its greenhouse gas emissions and water footprint, and improving re-use and recycling
rates in all its operations.
CELEBRATE INDIVIDUALITY: Diesel is committed to developing a sustainability culture inside
the company that respects employees’ rights and enhances their diversities, by treating everyone equally and nurturing them to fulfil their potential and by promoting a safe and inclusive work
environment.
PROMOTE INTEGRITY: Diesel is committed to maintaining the highest social and environmental
standards throughout the value chain by improving product traceability and promoting positive
supplier practices, while guaranteeing transparency.
In the first three years since the launch of the Strategy, Diesel achieved important results foreach one of its four strategic pillars, as detailed in the OTB 2021 and 2022 Sustainability Reports.
During 2023, Diesel continued to work to achieve its sustainability goals in line with the For Responsible Living and Be Responsible. Be Brave. Strategies. Further details are provided later inthis Report.

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2 .2 T HE M AT E R I A L I T Y ANALYS IS PROCES S
In 2023, OTB updated its materiality analysis, in line with the latest 2021 GRI Universal Standards in order to identify the most significant topics for the Group, and the related impact analysis8 focused on the current and potential positive and negative impacts on the economy, society(including human rights aspects) and the environment that the organisation generates, contributes
to, or could be directly linked to, along the entire value chain.
The analysis process was coordinated by the Corporate Sustainability Department, involving top
management, relevant corporate functions and specific external stakeholders. It consisted of fivemain stages:

1

Analysis andunderstandingof the context

2

Identificationof the impacts

3

Evaluationof thematerialityof the impacts

4

Definition ofmaterial topics
based on thesignificanceof the impacts

5

Final approvalby the Board of
Directors

1. Analysis and understanding of the organisation and context.
In order to identify current and potential impacts, an in-depth analysis of the business model andcorporate structure was conducted, including relationships with partners along the value chain. In
addition to the analysis of internal Group documents, external sources such as research papers,
publications, reporting standards (such as SASB, S&P), rating agencies and industry associations,benchmark analyses with reference to peer companies and shared best practices were also analysed, to understand all the possible impacts relating to the fashion system.
2. Identification of the impacts.
In the second stage of the process, 97 current and potential, negative and positive impacts thatOTB Group operations generate or could generate on the external environment and people were
mapped, considering the entire value chain.
3. Evaluation of the materiality of the impacts.
For each identified impact, a preliminary assessment was carried out involving multiple corporate
functions, each for its area of responsibility. The impact assessment criteria were: scale, scope,
irremediability (for negative impacts only) and likelihood. The assessment produced a short list of
the most significant impacts. The 30 identified impacts were then grouped into 13 topics, prioritisedby the top management and external stakeholders through specific questionnaires. The top management evaluation was carried out after a focus group. A number of significant external stakeholder categories were then involved through an online questionnaire, including suppliers, financial
institutions, customers, public authorities, NGOs and various other organisations and bodies.

8. The methodological approach also followed the guidelines defined by the European Sustainability Reporting Standards 2023
published by the European Commission in July 2023.

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2023 Sustainability Report

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4. Definition of material topics.
Finally, the topics were prioritised after integrating the results of the preliminary assessments, thetop management assessments and external stakeholder evaluations, to determine the material
topics for the Group.
5. Final approval by the Board of Directors.
The matrix obtained in this way was presented to the Board of Directors for final approval.
The table below shows the OTB Group’s 13 material topics approved by the Board of Directors in
December 2023, grouped with reference to the pillars of the Sustainability Strategy9:

THE NEW FASHIONSYSTEMPROTECTINGOUR PLANET

Responsible sourcing
and traceability

Climate strategy

Sustainable productdesignand circularity
Fair wages and wellbeing along the Value
Chain

Protecting
oceansCustomer experience,brand awarenessand reputation

Responsible
governanceand ethical businessSocial impact

Water stewardshipand chemical
management
Biodiversity

BRAVE TOGETHER

Diversity, equity andinclusion
Well-being, healthand safety of
employees
Talent attraction
and retention

9. The topics for each pillar are not shown in order of priority

Be Responsible. Be Brave.

35

2 .3 STA K E H O L D E R ENG AG EMENT
Stakeholder relations play a key role in reaching sustainability goals, creating long-term value andachieving adequate economic performance.
Active, open and continuous interaction with stakeholders provides the Group with important
feedback on the most critical priorities and questions to be taken into account in the developmentof OTB's strategy. The Group approach enhances each function, which manages relations withstakeholders individually, both at local and global level. Some stakeholders are engaged by theentire Group, in other cases they are directly involved by individual Brands and Departments.
The table below shows the main stakeholders, communication channels and engagement tools:
Stakeholders

Communication tools and channels

Stakeholder expectations

Customers• Direct relationship with sales staff• Product safety• E-mails and newsletters• Product quality and durability• Online chat and phone• Product traceability• Social media• Diversity, inclusion and respect for all
body sizes• Online questionnaire

Employees• High-level services• Internal channels• Training and career development• Meetings and events• Diversity, equality and inclusion• Corporate TV• Well-being and work-life balance• Newsletters and e-mails• Benefits and welfare initiatives• Continuous feedback• Compliance with policies and codes• Training sessions and digital courses• Safe working environment• Whistleblowing channels• Reduction of environmental
footprint• Activities of the OTB Foundation• Fair wages and working conditions• Whistleblowing channel

Suppliers• Supplier Code of Conduct• Quality and safety• One-to-one meetings• Fair payment terms• Daily activities• Long-term relationship• On-site and institutional visits• Responsible purchasing practices• Surveys
Localcommunity• Activities of the OTB Foundation• Support for local communities• Press releases• Diversity, equality and inclusion• Dialogue with local associations
and NGOs• Reduction of environmental impact• Meetings and round tables with publicauthorities• Ethical, social and environmental
practices• Newsletters and social media

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Stakeholders

Communication tools and channels

Stakeholder expectations

NGOs andorganisations• Institutional events• Community partnerships• Activities of the OTB Foundation• Climate impact• Participation in conferences andround tables• Biodiversity• Responsible procurement• Fair wages and working conditions

Financial
institutions
andshareholders• Institutional meetings

Publicauthorities• Institutional events and Institutional
visits to Group premises• Financial performance and longterm profitability• Annual general meeting• Ethical business and governance• Daily dialogue• Management of risks andopportunities• Full compliance with legislation• Participation in projects ofpublic utility• Round tables and initiatives withinstitutions• Meetings with institutions and publicauthorities• Interaction with industry associations• Activities of the OTB Foundation• Membership of leading national andinternational bodies, organisations
and associations in the sustainability
arena and in innovation in the fashionand luxury industry• Public debates and contributions to
key industry issues• Italian excellence and promotion ofMade in Italy

Media• Press releases and conferences• Responsible communication• Social media and official website• News about the OTB Group, theBrands and the OTB Foundation• Media requests and interviews• Interviews with senior management• Corporate and Brand events, fashionshows• Sustainability and innovation news
relating to the OTB Group strategy• Senior management’s views on theindustry, the economic situation or
related topics• Transparent communication flows:
timely and precise information
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37

2 .4 C O L L A B O R AT I ONS AND MEMBERS H IPSThe OTB Group recognises the importance of multi-sectoral collaboration to develop a more
responsible fashion industry, in order to act together to enable the Fashion System to progressand evolve in this direction.
In this context, the OTB Group confirms its adherence to voluntary initiatives and organisations
to promote a sustainable and coherent development path within each of its companies and units.

AURA BLOCKCHAIN CONSORTIUM
The OTB Group is a founder member of the Aura Blockchain Consortium together with: LVMH
Group, Prada Group, Cartier and Mercedes-Benz, and is represented on the Consortium Board
by Stefano Rosso, CEO of BVX and Chair of Maison Margiela.
The Aura Blockchain Consortium is a non-profit association, exclusive to luxury brands, created for the purpose of promoting socially responsible and customer-oriented business practices throughout the entire life cycle of luxury products. The platform promotes a global blockchain-based solution open to luxury Brands in any sector and region. Its aim is to accelerate
the transition to circular business models, provide consumers with additional information, andimprove transparency and product information.
OTB actively participates in developing projects and defining the strategic initiatives of the Aura
Blockchain Consortium, encouraging participation by each Group Brand.

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LEATHER WORKING GROUP (LWG)

In 2021 the OTB Group joined the Leather Working Group (LWG), a non-profit organisation which
has developed one of the leading environmental certifications in the leather manufacturing industry. The LWG was created to establish a protocol to assess the environmental complianceand performance of leather manufacturers by defining a ratings scale. Since 2005, it
identifies environmental best practices in the industry and provides guidelines forcontinuous improvement. Its activities and tools focus on traceability in the supply
chain, auditing, fight against deforestation and social responsibility. Through its
companies, the OTB Group promotes cooperation with tanneries that are membersof the Leather Working Group.

RE.CREA CONSORTIUM

In August 2022, the Re.Crea Consortium was established by the OTB Group together with
Dolce&Gabbana, Max Mara Fashion Group, Moncler Group, Prada Group, Ermenegildo Zegna
Group with the coordination of the Italian National Chamber of Fashion (CNMI), in
response to the European Directive on “Extended Producer Responsibility for
Textile Waste (EPR)” and to related national legislation. The Re.Crea Consortium is active in managing the end-of-life of textile and fashion products
and promoting the research and development of innovative recycling solutions. Currently chaired by Carlo Capasa, President of the Italian National
Chamber of Fashion, the Consortium is open to new memberships from key
players in the fashion and Made in Italy segment, so as to further strengthen
its impact.

THE FASHION PACT

Established in 2019 to reduce the industry's environmental impact, The Fashion Pact is a global
coalition uniting leading fashion and textile companies, including suppliers, manufacturers, distributors and marketplaces. The companies involved, including Diesel from 2020 and theentire OTB Group since 2022, collaborate to share best practices and jointly identify
innovative solutions to meet common goals, among them: mitigating global warming, restoring biodiversity and protecting the oceans.

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SCIENCE-BASED TARGETS INITIATIVE

The global Science Based Targets initiative (SBTi) was created to address climate change issues
and, specifically, to help companies achieve decarbonisation objectives such as:
limiting global warming to +1.5 degrees Celsius compared to pre-industrial
levels, promoting business innovation for process improvement by adopting low-carbon technologies, reducing business risks by setting sciencebased targets, and improving corporate reputation. In 2023, the OTB Groupobtained approval for its reduction targets (see section on “Acting on Climate
Change”).

ZERO DISCHARGE OF HAZARDOUS CHEMICALS FOUNDATION

In 2021 the OTB Group and its Brands joined the Zero Discharge of Hazardous Chemicals Foundation, an initiative promoted by the ZDHC organisation to reduce and eliminate the use of hazardous chemicals in the
textile, clothing and footwear industries.

FOREST STEWARDSHIP COUNCIL®

The Forest Stewardship Council® is a non-profit international multi-stakeholder organisation set
up in 1993 to promote the responsible management of forests globally throughtimber certification. In 2023, Diesel again confirmed its commitment to using
FSC®-certified paper or cellulose materials for almost all of its B2B and B2C
packaging.

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42
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2023 Sustainability Report
2023 Sustainability Report﻿Governance and risk management

G OV E R N A N C E
AND RISKM A N AG E M E N T

3
GOVERNANCE
AND RISKMANAGEMENT

3

3.1 OT B G OV E R N A N C E
Governance is the system of rules, practices and processes that contribute to the proper, transparent and efficient management of the entire organisation. This is why it comprises many key
elements, such as good business conduct based on the principles of integrity, integrated risk
management, dialogue with Stakeholders, supply-chain management, and the ability to adapt
to change.
The OTB Group has adopted a “traditional” corporate governance model, in compliance with Italian regulations, which is explained in more detail below.
Board of Directors
Governing body
The OTB Board of Directors (BoD) consists of
the Chair, the Chief Executive Officer and four
Directors. The BoD manages the company andoversees strategy, including questions concerning sustainability.
The BoD is responsible for planning Groupstrategy and for its operational and financial
performance. It may delegate its powers to the
Chair for ordinary and extraordinary decisions
and to the CEO for day-to-day business administration. The Chair and the CEO are both
legal representatives of the company. They
preside over the activities of the Board of Directors and supervise the proper applicationof the Group procedures and policies.

The executive Directors are responsible forplanning, directing and controlling the activities of the company. The independent Directors bring their expertise to board meetings,
assisting an in-depth examination of the topics
under discussion from an outside perspective
and contributing to well-considered, informed
decisions in line with the company's interests.
The BoD may delegate its powers to one ormore of its members for the efficient management of economic, social and environmental
questions, with the support of specific Groupfunctions. Empowered directors are monitored
on a continuous basis through regular reports.

The members of the BoD are renewed every
three years according to objective and meritocratic criteria. For the independent Directors, acareful assessment is carried out to guarantee
independence, as required by the Group regulation and by law. The members of the BoD
come from diverse professional backgrounds,presenting a broad range of skills and ensuring a diversified approach to the management
and supervision of business and sustainability
strategies. To ensure the absence of grounds
for incompatibility with appointment to the
BoD, an internal procedure is used to manage
relations with related parties.

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Governance and risk management

Office held

Name and Surname

Age range

In office until

Chair

Renzo Rosso≥50

Approval of 2023
Financial Statements•

Chief Executive
Officer

Ubaldo Minelli≥50

Approval of 2023
Financial Statements•

Director

Stefano Rosso

30-50

Approval of 2023
Financial Statements•

Director

Carlo Purassanta≥50

Approval of 2023
Financial Statements•

Director

Cristina Bombassei≥50

Approval of 2023
Financial Statements•

Director

Arabella Ferrari≥50

Approval of 2023
Financial Statements•

Board of Statutory Auditors
Audit body
The Board of Statutory Auditors consistsof the Chair, two standing statutory auditors and two alternate auditors. The Board’s
main task is to monitor compliance with thelaw and the Statute, the effectiveness of theorganisation structure, the administrative-accounting system and any other proceduresor programmes set up to implement the rules
established by the Group and the auditing of
the accounts.

Executive

Independent

The Group organisation chart follows the principles of prudent management and risk reduction. To this end, the company has establisheda system of delegated powers to ensure theseparation of tasks and regulatory compliancewith Lgs. Decree 231/ 2001. The system assignsroles, tasks and responsibilities in a clear andprecise manner, in order to prevent abuses of power and optimise decision-making
procedures and accountability. The separation of tasks is also guaranteed by IT systems
that enable only authorised roles to perform
specific transactions, where necessary.

Independent auditing firm
Audit body
The independent auditing firm is an independent organisation that does not represent any
majority or minority shareholders; its primary
duty is to oversee the statutory audit of theaccounts. The firm is proposed by the Boardof Statutory Auditors and appointed by the
Shareholders’ Meeting.

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Governance and risk management45

3.2 SU STA I N A B I L I T Y G OVERNANCE
In order to integrate sustainability into its business strategies, the OTB Group has established agovernance system designed to manage and coordinate specific sustainability initiatives ineach business area, both at the Parent Company level and in its subsidiaries. OTB sustainability
governance is led by the Chief Sustainability Officer (CSO), who coordinates the Group Corporate
Sustainability Department and reports directly to the Chief Executive Officer.
The OTB Group's Corporate Sustainability Department is responsible for the definition, update
and implementation of the Group Sustainability Strategy and related development plans. The
Department coordinates and supervises procedures and activities relating to ESG issues that
may affect the Group both at Parent Company level and its subsidiaries. To this end, the Department works closely with the other corporate functions to pursue the achievement of the Sustainability Strategy targets and improve the management of any social and environmental risks, and
ESG performance.

OTB Group Chief Executive
OfficerOTB Group Chief Sustainability
Officer
Corporate Sustainability Department

Sustainability
Professionals

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Sustainability Professionals
and Diesel Sustainability
Ambassador

Sustainability Champions

Governance and risk management

The OTB Group Sustainability function is structured as a “Professional Family10”. In Diesel, Staff
International and Brave Kid, Sustainability Professionals are responsible for the implementation ofsustainability initiatives in their respective companies. They report hierarchically to the Director of
the function in which they are placed, but functionally to the OTB CSO.
In the case of OTB's luxury Brands, namely Jil Sander, Marni, Maison Margiela and Viktor&Rolf,
the Group has appointed Sustainability Champions, who hold different roles in other functions andrepresent the main point of contact on sustainability issues within their respective organisations.
Moreover, at Diesel, in early 2020, together with the launch of the Strategy For Responsible Living,a Diesel Sustainability Ambassador was appointed in the person of Andrea Rosso, as the Brand'sinternal and external spokesperson. The creation of this professional figure contributed to the
spread of a shared sustainability culture in Diesel, which then led to the launch of the For Responsible Living Ambassadors programme in 2022, whose goal is to create a global network of employees who facilitate communication and collaboration between central offices, local offices andstores around the world on sustainability topics.
Since 2021, the members of the OTB Board of Directors include Cristina Bombassei, Executive
Director and Chief Corporate Social Responsibility Officer of the Brembo Group, a listed company
and world leader in the design and production of braking systems. Cristina Bombassei is considered one of the leading authorities on sustainability in Italy and was appointed as an OTB Independent Director to support the Group on decisions concerning sustainability strategies, in linewith market and key stakeholder requirements.

10. A set of specialised roles operating from different locations and organisational levels (Parent Company, Brand, Production Hub,individual legal entity, etc.), who share the same mission, specialist know-how, business processes, rules of conduct and the Group's
professional values.

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3.3 ETHICAL COMMITMENT
AND TRANSPARENCY
The Group is committed to conducting its
business operations with integrity, requiring all
parties to observe the highest ethical standards and to operate in strict compliance withnational and international legislation, regulations and guidelines.
OTB has adopted policies and programmes,in order to equip the Group with guidelines
and corporate procedures and ensure thecompliance by all its entities. Specifically, it
has introduced a Group-wide Code of Ethics,
a Suppliers Code of Conduct, a 231 Model,
a Related Parties Procedure and a Global Compliance Programme. These regulations and programmes comply with the moststringent standards and take into account oflocal laws.

CODE OF ETHICSThe OTB Group Code of Ethics sets out the values, principles and rules of conduct adopted by
the Group to direct its business operations and manage relations with its internal and external
Stakeholders.
The Code is uniformly applied in every country where the Group operates. It consists of three
sections:•

general principles, which illustrate the fundamental values and regulations of the OTB Group
corporate culture;•

standards of conduct, which highlight the rules of conduct to be followed and the ethics tobe applied in business activities;•

rules for implementing and monitoring the Code of Ethics, which describe the control system for compliance with and continuous improvement of the Code.

The Code of Ethics is illustrated to Group employees at the time of recruitment and is available
for consultation on the Group website.

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SUPPLIERS CODE OF CONDUCTOTB is committed to improving its social and environmental performance by involving suppliers
and subcontractors through the Suppliers Code of Conduct.
The Suppliers Code of Conduct is based on internationally recognised social and environmental standards, such as the eight fundamental ILO conventions and the Universal Declaration of
Human Rights. It sets out the conditions that each supplier is required to observe and describes
the company’s expectations with regard to the main areas of risk in the supply chain.
The Code covers the basic principles monitored by the Group, such as regular employment,child labour, forced labour, coercion and harassment, discrimination, freedom of association,
corruption, health and safety, working hours, wages, the environment and animal welfare.

231 MODELAll the Italian companies in the Group have adopted an Organisational Model pursuant to Legislative Decree 231/01.
In line with the Model, a Supervisory Board consisting of two external members has been formed.
The Supervisory Board is responsible for overseeing the proper implementation of the company's Organisational Model through audit activities and by cooperating with the Group Internal
Audit Function.
The Supervisory Board submits an annual report to the Board of Directors on its activities andpoints out any problems encountered. The Supervisory Board meets quarterly and, once a year,
also reports to the Board of Statutory Auditors.

RELATED PARTIES PROCEDURE
The Related Parties Procedure governs the management of transactions with related entities
by OTB Group companies. The aim is to ensure that all relationships are conducted according to
the principles of transparency and fairness, both procedurally and substantively.
The Procedure provides that, depending on its nature, the transaction must be approved locallyby the individual companies, who are required to inform the Group governance committee andensure procedural fairness. If requirements are met, the governance committee approves thetransaction or report.
Substantial fairness requires the transaction to be economically appropriate, with the transfer
price of goods or services aligned with market prices.

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The Global Compliance Programme
OTB has adopted a Global Compliance Programme (GCP) to harmonise Group procedures for the purpose of preventing corporate
criminal liability and unlawful behaviour andestablishing a consistent and global compliance culture.
The GCP applies to all OTB Group Companies in accordance with the legal and corporate governance adopted. Where local laws or
regulations or company policies and procedures adopted by the individual companies arestricter than the GCP, the former shall prevail.

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The GCP defines standards of conduct designed to prevent the commission of a number
of offences, and general standards of control,
including the segregation of roles, the assignment of signatory powers, the traceability andtransparency of the processes, and appropriate management of relations with third parties.
In addition, the GCP is complemented andintegrated with policies relating to Anti-Corruption, Anti-Money Laundering, Preventionof the Financing of Terrorism, and Fair Competition.

Governance and risk management

THE GLOBAL COMPLIANCE PROGRAMME

AREAS AT RISK AREAS AND
STANDARDS OF BEHAVIOUR DESCRIBED
Corruption offences
Tax fraud and other offences against public authorities
Criminal conspiracy, financing of terrorism and money laundering
Crimes against the person and crimes of violence and harassmentin general
Health and safety offences
Environmental offences
Computer crimes relating to privacy, intellectual property,
counterfeiting and consumer fraud
Antitrust violations

ATTACHED POLICIES

Anti-Corruption Policy
Establishes the fundamental
principles and ethicalguidelines for the activities
and decisions of theorganisation's members,in order to preserve theorganisation's integrity,
promote a cultureof transparency andaccountability, andensure compliance with
anti-corruption laws.

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Anti-Money Laundering andTerrorism Financing Policy
Consists of a set of rules
and procedures adopted toprevent illegal activities suchas money laundering andfinancing of terrorism.
The policy is designed toprotect the financial system,
prevent the misuse of funds
for criminal activities, andensure compliance withfinancial laws.

Antitrust Policy
Ratified in 2023, thisdocument sets out guidelines
and practices aimed atensuring compliance withapplicable antitrust laws
and regulations. Training
courses are provided for all
Group employees, to ensure
a thorough understanding ofand compliance with antitrust
laws.

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Specifically, the Anti-Bribery Policy prescribes compliance with the principle of transparency in the
management of financial resources by means of an appropriate information system and a paper
trail. The risk of corruption is also managed in relations to third parties through a due diligencebased on integrity requirements and proportionality to the actual perceived risk. Where necessary,
the Policy also provides for periodic monitoring to guarantee compliance with requirements andapply appropriate corrective measures.
To ensure the dissemination, understanding and compliance with the Code of Ethics, the GCP and
the policies described above, the Group organises mandatory training sessions for all employees.
The OTB Human Resources Department (HR) is responsible for planning and organising specifictraining sessions and ensuring regular attendance by all recipients.

WHISTLEBLOWINGThe OTB Group is committed to conducting its business activities in an ethical and responsible
manner. The Group Code of Ethics is a fundamental guide to guarantee high standards in termsof integrity, conduct and accountability. The Code describes our values – courage, respect, excellence, evolution – and the principles the Group adopts in conducting its business and managing relations with all stakeholders.
The culture of integrity is fundamental to conducting business activities in compliance with theGroup Code of Ethics, laws and regulations, the 231/01 model, where applicable, and Group policies and procedures.
The Group has set up a dedicated Whistleblowing channel for potential/suspected breaches
pursuant to Directive (EU) 2019/1937 of the European Parliament and the Council of 23 October
2019 on the protection of persons who report breaches of Union law (the "Whistleblowing Directive") and the related implementing laws in the EU countries, as well as breaches of the Group
Code of Ethics and/or, more generally, internal procedures and applicable laws.
The Group encourages all its stakeholders to report unlawful conduct, behaviour, acts or omissions that damage the company, violations of the Organisation, Management and Control Models, where applicable, as well as any conduct or situation contrary to the Group Code of Ethics,
and unlawful conduct in breach of national or European Union provisions. Reports can be submitted using the digital reporting platform available at the following link https://otb.integrityline.
com. The channel is designed to ensure the confidentiality of sources and information coming
into its possession, and to guarantee the anonymity of the report.
In 2023, as in the previous three years, there were no cases of unethical conduct, corruption orbreaches of anti-trust and fair competition laws nor episodes of discrimination by OTB and its
subsidiaries. Should critical situations arise, the Chair and the BoD receive prompt notificationfrom the relevant function and the Supervisory Board (SB), and the events that occurred are thennoted in the annual report on the activities carried out.

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3 .4 R IS K M A N AG E M E N T SYST EM
OTB constantly monitors risks that could
impact the Group's economic performancethrough the Corporate Governance and Internal Audit functions and regularly updates the
Global Compliance Programme accordingly.
Financial and non-financial risks are taken
into account, for example, risks relating toregulatory non-compliance, the environment,
corporate reputation, crimes of corruption andcounterfeiting. The identified risks may derivefrom internal or external factors mainly related
to the industrial and market context or to the
dynamics of the countries in which the Groupand its companies operate. Once risks havebeen identified, the Corporate Governanceand Internal Audit functions conduct checks
and audits based on the level of urgency, starting with intrinsic company risks.

In the presence of possible negative impacts
on the environment or people, reports arepromptly forwarded to the top management
so that mitigation measures and corrective plans can be promptly drawn up andimplementation timelines are set.
Given the Group’s dimensions and worldwide
presence, OTB is exposed to environmental,social and compliance risks.
Environmental risks
The main areas of environmental risk involving OTB and the fashion industry refer tocompliance with environmental regulations
along the entire supply chain, impacts fromclimate change and biodiversity loss, as wellas materials sourcing and water and waste
management.

COMPLIANCE WITH ENVIRONMENTAL REGULATIONSAs required by environmental laws and regulations, OTB ensures compliance with the industry standards incorporated into the Global Compliance Programme. For what concerns theGroup’s exposure to the risk of breaches of international and local environmental laws by contractors and subcontractors, specific clauses are included in the contracts drawn up with them.

PREVENTION OF THE EFFECTS OF CLIMATE CHANGE
IN THE SUPPLY CHAIN
Recent years have seen an increase in the significance of both the physical risks associated withclimate change (extreme events, rising temperatures, etc.) and the transition risks (taxation ofcarbon-intensive products, etc.), which can have a direct and indirect influence on OTB operations and negative effects throughout the value chain. Consequently, the Group is committed to
conducting environmental assessments, which will be incorporated in its Decarbonisation Strategy, in order to identify possible ways to reduce the emissions it generates.

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Social risks
The Group is exposed to social risks concerning its human resources, workers in the supply chain
and customer management, given its extensive global presence and complex value chain.

OTB WORKERSOTB manages human resources risks, including but not limited to health and safety, discrimination, employment management and the loss of key resources, through continuous improvement of its organisational model and strategic resource planning. The company also organises
regular employer branding activities through technical, professional and managerial training.

WORKERS IN THE SUPPLY CHAIN
Among the potentially most significant social risks are those related to working conditions andrespect for workers' rights in the supply chain. The Group mitigates these risks not only by requiring continuous improvement in the traceability and control of suppliers, but also by updatingrisk assessment procedures in order to better identify critical suppliers that do not comply with
the Group's principles and evaluate their ESG performance.

CUSTOMERS
Social risks include customer satisfaction and engagement and brand reputational risks. OTB
uses innovative tools to monitor the customer experience on a continuous basis and guarantee a
prompt and efficient response. At the heart of its strategy lies close attention to product quality
and safety, and management of complaints.

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OTB guarantees the respect of human rights of its employees and along the supply chain. In addition to complying with the Code of Ethics and the Code of Conduct, each Group company must
adhere to the standards and conventions included in the Global Compliance Programme andcomply with applicable laws, such as the Conventions of the International Labour Organisation(ILO). The Group's suppliers and subcontractors are also required to comply.
Privacy risk and data security
OTB priorities the protection of personal dataof customers, employees and all Stakeholders
who come into contact with the Group. Aftera period of adjustment to the General Data
Protection Regulation (GDPR), the OTB Groupestablished a series of privacy protection
procedures covering the various areas andactivities, such as protection of employees,
partners and customers data stored in each
Brand’s sales channels.
Regular data protection impact assessments(DPIA) are performed when new systems orprocesses with potential impacts on personal
data confidentiality are introduced. The Data
Protection Officer (DPO) conducts audits tocheck that regulations and corporate procedures are correctly applied, and works with
the Legal Office and the Compliance Office toprovide training and information for the corporate functions most closely involved in personal data processing.
The Group applies a stringent privacy assessment protocol for all suppliers processing
personal data, who are required to sign a
Data Processing Agreement after assessing
the suitability of their security measures for
safeguarding personal and corporate information. OTB constantly carries out the activity of appointing the managers and conducts
the Transfer Impact Assessment (TIA) forcompanies based outside the EU or whichhave subsidiaries, sub-processors or parent
company outside of the European Union.

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Agreements have been signed between Group
companies to guarantee application of thesame standards among subsidiaries, companies that are not based in the EU and the European parent. Privacy appointments in theGroup companies are regularly updated in theevent of turnover, with written authorisation ofeach processing manager at the time of their
appointment.
During 2023, the Group also launched an Information Security Management System (ISMS)
programme based on ISO 27001 principles,for the purpose of implementing a systematic approach to manage the organisation's
information security through the adoption ofpolicies, procedures and controls designed toensure information confidentiality, integrity
and availability.
The Group applies a stringent privacy evaluation protocol for all suppliers processing
personal data, who are required to sign a Data
Processing Agreement after assessing thesuitability of their security measures.
Consistently with the path taken in recent
years, the Group has continued to implement security measures to protect its technological infrastructure and prevent cyberattacks, in part with the support of the
Security Operating Centre service activated throughout the Group. Security training
for OTB employees includes specific training
courses and regular anti-phishing prevention
campaigns.

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The New Fashion System

THE NEWFASHIONSYSTEM
4

4

T H E N E W FA S H I O NSYSTEM

The New Fashion System is the pillar of OTB's Sustainability Strategy that defines the Group's
commitments with reference to the material topics detailed below:• Sustainable product design & circularity: the OTB Group is committed to researching, devel-

oping and applying innovative solutions to reduce the environmental impact of its products, andto promoting the use of alternative materials and treatments and the application of circular
economy principles to its business model.

• Responsible sourcing and traceability: the OTB Group is committed to transparent and traceable sourcing practices.

• Fair wages and well-being along the value chain: the OTB Group is committed to promoting

the respect of human rights, and the application of the principles of fair wages, job security andanti-discrimination throughout the value chain.

• Customer Experience, Brand Awareness and Reputation: the OTB Group promotes transparent communication with customers and the development of services able to make the customer experience unique (see chapter 5 for more details).

4 .1 SU STA I N A B L E P RODU CT DES IG N AND
C IRC U L A R I T Y
As part of the strategic priority of Sustainableproduct design & circularity, the Group companies are committed to use materials with alower environmental impact compared to theones traditionally used, such as for example
organic cotton and recycled materials, andchoose production processes such as treatments, dyes and trims that reduce the use ofchemicals and water consumption. The various departments are also focusing on designing finished products that can be more easily
recycled and recovered, and developing initiatives to extend product life cycle, such as the
adoption of circular business models (examples include use of the second-hand items orspecial garment repair services).

The diagram below shows the initiatives related to each phase:

STAGE

DEVELOPMENT
AND DESIGNOF PRODUCTS•C ertified alternative
materials (e.g., organicand recycled)
INITIATIVES•P rocesses andtreatments with alower environmental
impact• Upcycling

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USE AND CARE
OF PRODUCTS• Testing of productquality and increased
durability• Advice to customers
on caring for andextending the lifecycleof products

The New Fashion System

MANAGEMENTOF PRODUCTS
END-OF-LIFE• Second hand
• Partnerships for
products end-of-life
management• Recycling and reuseof materials• Upcycling

RE.CREA CONSORTIUM AND EPR (EXTENDED PRODUCER RESPONSIBILITY)LEGISLATIONThe OTB Group, together with other luxury groups and brands and with the coordination of the Italian National Chamber of Fashion (CNMI), was involved
in setting up the Re.Crea Consortium. The consortium promotes sustainability in the fashion and textile industry and aims to manage the end-of-lifestage of textiles and fashion products and to promote research and development of innovative recycling solutions. The Re.Crea Consortium will
help the Brands respond promptly to the provisions on Extended Producer
Responsibility for Textile Waste (EPR) now being enacted at national and European level.

RAW MATERIALS, CERTIFICATIONS AND GUIDELINES
In 2023, the OTB Group purchased a variety of raw materials, as illustrated in the graphic below.
Cotton accounted for the largest share of raw materials, at 58.2%, followed by synthetic polymers
at 17.7%. Among “Other materials”, leather and wool represented 10.5%, 7.6% and 3.0% respectively, while organochemicals were 3.0% of the total.

RAW MATERIALS PURCHASED IN 2023

3.0%

7.6%

Leather

10.5% Other materials

11

Wool

3.0%

Organochemicals 12

17.7% Polymers

58.2% Cotton
11. Other materials includes lesser-used materials such as rubber, resins, metals, waxes, zinc, zircons, etc.
12. Organochemicals are fibers derived from cellulose and chemically processed to obtain fibers. They are also known as manmade
cellulosic fibers.

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60

In 2023, there was a significant rise in thesourcing of certified materials that respectwith environmental and animal welfare standards to approximately 17% of total purchases (an increase of 4 percentage points from2022). Among the various categories, there
was a rise in the sourcing of different types ofcotton alternatives, such as organic, recycled
and cotton from regenerative agriclture, together with other fibres like Lyocell and Modal sourced from responsibly managed forests
and recycled synthetic fibres. Organic cotton
accounts for about 7.7% of total purchases.
In this context, the Group companies work
to promote the use of lower-impact materials and processes through specific guidelines
shared with the procurement and product development departments.

Specifically, in 2020 Diesel drew up guidelines, updated on an annual basis, that define
the criteria for producing items with a lower
environmental impact, in accordance with theBrand's For Responsible Living Strategy. The
guidelines also consider the objectives of theGroup Sustainability Strategy, the demandsof the main markets and industry best practices, with the aim of expanding the offer of“responsible” products, while guaranteeing
quality standards and respecting the Brand
identity. They indicate the preferred alternatives for creating a “responsible” product forDiesel, taking a three-pronged approach thattakes into account not only the fabrics used,with the focus on low-impact options, but also
treatments, finishing processes and accessories (buttons, rivets, zips, etc.).

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Subsequently, Brave Kid introduced the Brave Kid Sustainable Product Guidelines, which are followed by the teams in developing products with a lower environmental impact.
Both Diesel and Brave Kid have also drawn up seasonal roadmaps to guide the transition towards
lower-impact collections and integrate ESG considerations into their operational and decision-making processes.
In line with these commitments, during 2023, after a specific audit, Diesel and Brave Kid were certified by Intertek, a globally accredited independent third-party certification body, with regard to
the following standards for finished products with reference to organic and recycled raw materials:

Recycled Claim Standard (RCS 100 and RCS
Blended), which ensures a minimum content ofrecycled material in every garment (from 5 to95% for RCS Blended, more than 95% for RCS100) and maintenance of traceability throughout the production process.

Global Organic Textile Standard (GOTS), which
ensures the content of natural fibres from organic farming (at least 70%), the maintenanceof traceability throughout the production process, restrictions on the use of chemicals, andcompliance with environmental and social criteria at all stages of the supply chain.

Global Recycled Standard (GRS), which ensures the content of recycled materials (atleast 20%), traceability throughout the production process, restrictions on the use ofchemicals and compliance with environmental
and social criteria at all stages of the supply
chain, from the recycling of materials throughthe subsequent production stages to labellingof the finished product.

Organic Content Standard (OCS 100 and OCS
Blended), which ensures the content of natural fibres from organic farming (from 5 to 95%
for OCS Blended, more than 95% for OCS 100)and traceability throughout the production
process.

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Demonstrating its concrete commitment to promoting animal welfare and protecting ecosystems
at global level, Diesel also obtained other important certifications, shown below.

Responsible Wool Standard (RWS), whichguarantees that wool is sourced from farms
managed in accordance with stringent animal
welfare and quality of life requirements.

Responsible Mohair Standard (RMS), whichguarantees that mohair is sourced from farms
that use a responsible approach to the management of their land and livestock.

Responsible Alpaca Standard (RAS), which
certifies the use of alpaca fibres from responsibly managed farms with regard to land impacts and animal welfare.

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Responsible Down Standard (RDS) which ensures that down and feathers used as filling are
obtained from aquatic or land birds that havenot been subjected to treatment that causes
pain, suffering or stress and that traceability is maintained throughout the production
process.

regenagri® is an international certification programme for regenerative agriculture, open to
all farms and agribusinesses that adopt regenerative agriculture techniques. These techniques are designed to increase organic matterin the soil, promote biodiversity, reduce greenhouse gas emissions and capture CO2. Certification confirms that the cultivation methods
comply with regenagri® standards and ensuresthat the regenagri content is compliant fromthe field to the finished products. It is issued
by the Control Union certification company.

The New Fashion System

Adherence to international standards and certifications is an important factor in consumers’purchasing decisions in the adult and children's fashion industry. From a communication andcommercial viewpoint, the use of the logos associated with globally recognised standards andcertifications13 facilitates divulgation of products’ sustainability characteristics, assisting theprocess of transition and awareness raising of customers.
Also Staff International supports the luxury Brands of the Group for which it operates, in thetransition towards a more responsible fashion system and it is working to obtain some of theabove-mentioned certifications.
Finally, Viktor&Rolf, which manages the production of its collections independently, takes a similar
approach by choosing certified materials and suppliers.

13. Reference should be made to the standards and certifications on pages 61 and 62

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ECODESIGN AND CIRCULARITY
During 2023, Diesel continued its internal training activities for the Style and Product offices witha specific course on Ecodesign and the principles of circular design, to ensure their integrationfrom the earliest design stages.
Two full days were organised for training on these topics. The first, in Milan, was intended mainly
for the Style team; the second, in Breganze, involved the Product and R&D teams.
The training focused on an analysis of the principles and methods underlying circular design, citing a number of industry case studies and best practices. The theory was translated into practicethrough workshops during which participants were asked to re-invent some of the Brand's iconic
products to make them more “circular”.
Finally, an upcycling contest was organised, with Diesel-branded textiles, accessories and finished products from the defective or destined for disposal stream to be transformed into new
garments.

OTB GROUP BRAND INITIAT IVESDIESEL

Just three years after adopting the For Responsible Living Strategy, with the launch of
the 2024 Spring/Summer collection, Diesel
presented more than half of its combined
Ready-To-Wear and Denim collection in linewith the internal product sustainability guidelines, demonstrating the significant results of
its growing commitment.
During 2023, Diesel expanded the use of
low-impact cotton to 23.9% of its total cottonpurchases, up from 22% in 2022, further increasing the percentages of certified organicand recycled cotton in its collections.

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In addition, starting with the 2024 Spring/Summer season, Diesel has introduced the useof RegenAgri-certified regenerative cotton
sourced in Spain for its denim garments. For
the 2024 Autumn/Winter season, Diesel confirmed its decision and also expanded its offerby purchasing regenerative cotton from othercountries and entering into partnerships withadditional suppliers.

The New Fashion System

During 2023, Diesel also continued to expand
its range of products with a lower environmental impact in both the Ready-To-Wearand Accessories categories. Starting with the2024 Spring/Summer season, the Brand's entire Beachwear offer has been labelled For
Responsible Living, exclusively including garments made with more than 50% recycledmaterials or other lower impact alternatives. In
the bags category, Diesel increased the number of variants produced with recycled materials and leather from tanneries certified by
the Leather Working Group (LWG), notably its
iconic “1DR” model.
In February 2023, Diesel launched its first lineof solar-powered wristwatches producedwith low-impact materials such as #tide
ocean material® for the strap. This is a recycled material made 100% from plastic recovered from coastal areas. The case is madefrom a bio-based material obtained from thecastor oil plant.

In collaboration with Lodes, Diesel Living presented REGLOBE, a pendant lamp made froma compound incorporating recycled plastic
from production off-cuts.

Diesel Living also continued its commitment toresearch low-impact alternatives, as demonstrated at the recent Salone del Mobile 2023.
In cooperation with one of its partners, theBrand presented innovative new textiles, suchas Getis, a fabric made entirely from recycled
polyester, Hyle (with 20% recycled cotton),
Wild Linen (with 60% linen and 30% recycled
cotton) and Pepe (with 75% recycled cotton),
and also presented more responsible solutionsin the furnishings category.

During the manufacturing process, fragmentsof melted plastic of different colours are deposited on each piece, creating a variable colour effect that makes each lamp unique.

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During 2023, Diesel also started an initiative forpre-consumer downcycling of single shoes(without the right or left pair) with rubber soles,
from prototypes or sample collections. About
3,000 kg of samples were collected and sent
to a partner specialized in shoe disassembly.
The material obtained from the soles was thenused by third-party companies who produce
flooring for athletics tracks or playgrounds andshock-absorbing panels, restoring new value
to materials otherwise destined for disposal.

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DIESEL AND DENIM INNOVATIONS
Since the launch of For Responsible Living, Diesel has been working to reduce the impact of its
key category: Denim.
In addition to applying its guidelines to the entire category in the collection, with a year-on-yearincrease in garments with alternative and more responsible fabrics, treatments and accessories,
the Brand is carrying out numerous pre- and post-consumer sustainability projects, combining
the experience gained in over forty years as a pioneer in treated denim, innovation and collaboration with its suppliers.
Specifically, in 2023 Diesel continued its project to reuse production off-cuts launched in 2022 incooperation with the United Nations Industrial Development Organisation (UNIDO) and a Tunisian supplier. The project envisages the creation of a virtuous circle of fabric-cutting scraps, withthe aim of strengthening the management and recycling of denim off-cuts in the mechanicalrecycling process. Once recycled and re-woven, the new recycled cotton fabrics are reused by
Diesel and included in its collection.
Beginning with the 2024 Spring/Summer season, the fabrics have also been included in the “Diesel Library” permanent collection of denim garments characterised by a careful approach toenvironmental impacts during the various product creation and processing stages.
The Brand also offers an exclusive free after-sales service on the Diesel Library collection formembers of House of Diesel, the loyalty programme open to all customers. In the event of damage of Diesel Library garments, loyal customers can access the free repair service to extend thelife of the garment.

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In 2023, the Brand also expanded the “Diesel Rehab Denim” line for the 2023 Spring/Summer
season, created in collaboration with supplier Tejidos Royo and launched with the 2022 Fall/Winter show. The line is Diesel’s most important achievement to date in terms of product sustainability. Each garment is made from fully recycled cotton and elastane, mixed with TENCEL™xREFIBRA™ technology. Fabric dying uses the Dry Indigo® technology, which allows the fabric tobe dyed without water, hugely reducing the quantity of chemicals (up to 89%) and energy (up to65%) used in the denim dyeing process.
In addition, the company continued working on the “Diesel Second Hand” project for the recovery and resale of the Brand's used denim products. Currently, garment collection is available atall Diesel mono-brand stores in Italy, while Diesel second-hand products are available for salethroughout Europe on the diesel.com e-commerce website.
Finally, in December 2023, Diesel launched “Diesel Loves”, an initiative inviting other brands tocollaborate with Diesel to share resources and creative ideas in order to foster a responsible
transition. In each edition of the “DIESEL♥VES” collection, Diesel proposes and reinvents unsold
goods or surplus materials with those of a partner brand, creating a limited series of products
made entirely from existing materials. The profit arising from the project, which involves the twobrands on an equal footing, go to UNHCR humanitarian projects, with the support of the OTBFoundation. The first collaboration, launched in December 2023, was “DIESEL♥VES LEE”, withthe production of some 1,700 unique pieces. The garments were created by reusing unsold Diesel and Lee denim, with the intention of reducing waste through upcycling and celebrating theuniqueness of each piece.

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BRAVE KID
Brave Kid is constantly seeking innovation to guarantee the durability and quality of the garments
and accessories that make up the children's collections of the brands it works for. Its commitment
to using fibres and materials with a lower environmental impact goes hand in hand with careful andresponsible design.
After the “Brave Kid Durability Test Package”, in 2023 Brave Kid launched another test package
to evaluate the durability of its products even more thoroughly in order to increase their service
life; the test packages are part of the “Brave Kid Durability Project”. With the project, the Production Hub is committed to monitoring the durability and safety performance of garments, not only
during production, but also during the use phase, by simulating the entire life cycle.
With the help of an internationally recognised laboratory, Brave Kid tested 18 products representing
the main categories of its collections. The results demonstrated the quality of the Brave Kid products, both in terms of fabric strength and the durability of prints and dyes, and indicated possible
areas for improvement, especially in the baby category (0-36 months). As a result of the tests,
the Hub made a series of improvements, such as the use of new types of buttons to ensure highstrength and durability, aligning Brave Kid's quality standards to the market’s best benchmarks.
In addition, during 2023, Brave Kid minimised the risk of overproduction and waste through careful
production planning based on sales campaign data, moving towards a make-to-order approachand increasingly efficient management of dead stock.
Lastly, Brave Kid is a licensee of the MYAR children's line, the brand owned by Andrea Rosso, who
has always been committed to raising public awareness on environmental protection matters.
MYAR products are made with materials sourced from dead stock and warehouse remnants of theOTB Group and other external suppliers. The MYAR collections adopt a reduce, re-use and upcycle
approach to give fabrics a second life as part of the circular economy.

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STAFF INTERNATIONAL AND THE LUXURY BRANDS

Staff International, which serves as Production
Hub for some of OTB's Brands, implements
strategies and partnerships for the development of projects with a focus on environmental and social sustainability.
Collaboration with MAEBA
During 2023, Staff International continued its
collaboration with Maeba, a leading company in Italy in the upcycling and marketing of
surplus Italian manufacturing. Together with
Maeba, Staff International contributes to therecirculation of materials that would otherwise
end up as dead stock.
Collaboration with CAUTO
In autumn 2023, Staff International assisted
Marni on the launch of a pilot collaboration
scheme with the CAUTO social cooperative,
which specialises in job placement for fragile
individuals.

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About 20 pallets of various materials were delivered to the CAUTO cooperative, and manually separated for reuse or recycling in cooperation with partner Berbrand. Where possible,
the metals were remelted and organic waste
was sent to a waste-to-energy plant. Specifically, 1,800kg of materials were recovered andsent to Berbrand for reuse. The non-recoverable materials, totalling 8,000kg, were sent forrecycling.
Staff International intends to propose also
to the other companies for which it acts as a
Production Hub to join the project, in order tocreate a protected laboratory that promotes
integrated sustainability and environmental
education.

The New Fashion System

MARNI
Marni is increasing the share of low-impact materials in its collections. This is demonstrated in the2024 High Summer Capsule Collection, with its distinctive choice of materials. Organic cotton is
the main raw material of the Capsule, presented in a variety of different forms: super-light cotton
muslin, cotton toile, stretch cotton poplin, cotton jersey in different weights, cotton gabardine andstretch denim. The denim items were dyed using a vegetable dyeing process and avoiding synthetic
chemicals. Linen sourced from non-irrigated, GMO-free European crops is the main feature of theknitwear offer. The colours are inspired by Earth colours, emphasising the environmental focus of
the collection. The collection's accessories and trims also demonstrate Marni's interest in promoting innovative and lower impact materials over traditional ones.
Marni is also committed to using leftover materials in creative ways. During the year under review,
part of its stock was used to make uniforms for store employees, and part was donated to the OTBFoundation for the creation of Christmas gifts for employees and sales accessories, the proceedsfrom which go to support the Foundation's initiatives.
In 2023, Marni's Creative Director, Francesco Risso, was appointed as a member of the jury of
the International Woolmark Prize, hosted at the Petit Palais in Paris. The award, an initiative of
The Woolmark Company – an organisation founded in 1937 by sheep farmers from Australia, New
Zealand, South Africa and Uruguay to promote the use of pure virgin wool – honours international
talents who exemplify the beauty and versatility of Australian Merino wool.

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MAISON MARGIELA
In 2023, Maison Margiela confirmed the “Recicla” line launched in 2020. A number of items
such as accessories, bags and shoes were selected by Creative Director John Galliano andreinterpreted using leftover materials to create
a limited edition, identified by the white “Recicla” label.
The Brand has also introduced a new form ofcreative expression that merges the Maison’s
DNA with a strong innovative vision based on
fabric upcycling. In 2023, the Maison implemented a project for the transformation ofshirting fabrics and silk strips into new garments and the reinterpretation of vintage
garments and one-off pieces, modifying theirform and function. By using materials intended for different purposes, such as jute sacks or
military blankets, to create unique pieces likecabanas and jackets, the Maison takes its creativity beyond the traditional reuse concept.

JIL SANDER
Jil Sander is committed to using materials witha lower environmental impact and extending
selection of these alternative materials to all
its collections. The “Jil Sander+” collection isbased on a philosophy whose goal is to create
products combining aesthetics and comfort,
refinement and resistance to atmospheric elements. The addition of the + symbol to the
Jil Sander logo indicates the Brand's focus on
selecting high-performance, organic and/or
recycled fibres. For its duvets, the Brand committed to only use recycled down, wheneverpossible.

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VIKTOR&ROLF
Viktor&Rolf is committed to seeking innovative partnerships and collaborations withcompanies or start-ups focused on sustainable development in order to promote the transition to a more responsible fashion industry.
In 2023, the Brand continued to experiment with the limited-edition Lost & Found collection, which transforms vintage pieces into extravagant tulle icons, completed withappliqués and details. Similarly, the “Viktor&Rolf Tulle” collection , featuring a variety ofironic and provocative tulle garments inspired by the Viktor&Rolf Haute Couture shows, isemblematic of the Brand's desire to explore a new creative drive.
For the Everywear collection, fur made with synthetic materials was introduced to achievea vintage winter look, but in a modern, fur-free version. Specifically, certified polymer
fibres produced from maize seeds were used, while the lining was made with Tencel™ fibreand organic cotton.
Also in 2023, Viktor&Rolf confirmed its collaboration with the company that produces
Tencel™ Luxe fibre, an innovative Lyocell filament made from wood pulp sourced fromsustainably managed forests, for the Mariage collection.

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4 .2 P RO D U CT Q UA LIT Y AND S AF ET Y
Product quality and safety have always been
central considerations for the OTB Group,
where testing for physical and chemical conformity is a priority. Tests are carried out atdifferent stages in the production process,both on raw materials and on finished products. Diesel and Brave Kid also require at least
one chemical and physical conformity test foreach style14, to be conducted at an accredited
laboratory.

Specifically, in 2023 Diesel conducted productsafety tests covering 97.0% of its “styles”, whileat Brave Kid the percentage of products covered by at least one successful test reached
99% for the second consecutive year. At Staff
International, chemical tests were performedon 70% of products in the Ready-To-Wear andJewels collections and on 20% of products in
the Shoes & Leather Goods collections.

BRAVE KID: SAFE PRODUCTS FOR YOUNG CUSTOMERSThe importance of safety for children’s products combined with the company’s determination toguarantee high quality standards have led Brave Kid to adopt a rigid testing and compliance system to ensure the chemical and physical safety of its products. In particular, it conducts special
tests on detachable and/or pointed parts, sharp edges and garment inflammability. The number
and types of tests depend on the complexity of the final product and its applications, allowing
Brave Kid to maximise coverage and ensure product safety on a broader scale. The Production
Hub is committed to covering almost all products with at least one valid test. In order to ensurecompliance standards are met, Brave Kid places great emphasis on collaboration with suppliers.
Its technical team makes regular visits to suppliers' production sites to monitor production andidentify any critical safety-related issues. In the case of products with complex constructions,
Brave Kid takes advice from internationally recognised laboratories to assess specific risks.
In addition, constant communication between the Quality & Control Department and the Customer Service Department ensures continuous support for customers and follow-up to reports
received on product quality. Critical issues are shared with the Style and R&D team, as well as with
suppliers, promoting continuous improvement of the Production Hub's product testing process.

14. The term "style" signifies each combination of fabric and wash/treatment.

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4 .3 TH E SU P PLY C H A I N
The OTB Group believes that a supply chain based on cooperation, trust and respect is crucial forthe production of quality products. For this reason, the Group companies work to maintain a solid
supply chain with a high level of know-how.
OTB's production models can be divided into Cut, Make and Trim (CMT or Industrialised) and Full
Production Package (FPP or Commercialised).
For the industrialised production model, the Purchasing Department buys the fabric and mostof the components (accessories), which are then sent to suppliers for cutting, assembling, washing and ironing. Group technical personnel monitors and manages production progress for the
Production Department, sometimes at the supplier sites. Manufacturers are primarily located in
Italy, Eastern Europe and the Mediterranean Basin, and in most cases have long-time partnerships
with the OTB Group companies.
For the commercialised production model, the Product and Production Departments provide thefinished product supplier with all the necessary information, ensuring constant alignment during
the selection of materials and accessories, to guarantee a result in line with the expectations of the
Style Offices of the various Brands.
In both cases, service suppliers assist the OTB Group companies with pattern making, prototyping,and quality and safety control processes.

NUMBER OF SUPPLIERS BY TYPE
OTB's suppliers are divided into four categories: raw materials, manufacturing, services andfinished products.

1.3%

Service providers

20.5%

Finished product suppliers

20.8%

57.4%

Manufacturer suppliers

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OTB cooperates with around 1,47015 first-tier suppliers16 located in 35 countries. The Group's sourcing policy is designed to mitigate dependence on a limited number of suppliers, in order to effectively address any risks associated with interruptions in the supply chain. In 2023, more than 80%
of orders placed by the Group companies were in EMEA countries, with over 60% in Italy.

VALUE OF ORDERS BY GEOGRAPHICAL AREA

16.7%

APAC (excluding Japan)

1.2%

Japan

0.2%

America

18.1%

EMEA (excluding Italy)

63.8%
Italy

Many suppliers from whom raw materials are purchased are located close to the headquartersof the Group companies, with 78.2% of suppliers based in Italy17. This is part of a broader strategy
to foster the creation of job opportunities and distribute wealth in the territories where the OTB
Brands operate.

15. Excluding suppliers with annual sales orders of less than EUR 1,000.
16. Tier 1 suppliers are suppliers with whom the Production Hubs have direct collaboration relationships. They are directly responsible forthe supply of materials and components (regardless of the type of industrialised or commercialised product).
17. Percentages calculated on the total number of OTB Group suppliers. For manufacturers and finished product suppliers, thegeographical location is the country where the product is made; for service and raw material suppliers, it is the country where thesupplier is registered.

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SUPPLIERS BY GEOGRAPHICAL AREA

7.1%

APAC (excluding Japan)

11.8%

2.6%
Japan

0.3%

America

EMEA (excluding Italy)

78.2%
Italy

4 .4 R E S P O N SI B L E SO U RCING AND T RACEABILIT Y
Responsible sourcing and traceability wasclassified as a material topic in the Group's
2023 impact analysis, confirming the importance of traceability as an essential factor inmanaging actual and potential environmental
and social impacts along the value chain.
With this in mind, the Group is working on
improving the materials sourcing process.
The traceability of raw materials and supplier monitoring contribute to this and also
strengthen the risk management system.

The OTB Group is implementing a productand process information traceability platform in order to pursue the goal of the Sustainability Strategy and comply with the increasingly stringent regulations with regards
to this matter. The initiative aims to manage
suppliers information and data for all productcategories in a consistent and coordinatedmanner. The project included a scouting phasefor suitable systems and tools, which led to theidentification of potential solutions which are
now being tested.

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All OTB Group companies are in continuous contact with suppliers to constantly review the environmental and social aspects of the supply chain, in addition to business-related questions(such as quality, costs, production time). Suppliers are required to comply with the Group's Codeof Ethics, Suppliers Code of Conduct and Restricted Substances List (RSL). Compliance withthese documents is a basic requirement for companies wishing to work with the Group. Suppliers
are also invited to share any other documentation and certification that could be relevant for their
ESG evaluation.
During 2023, the Production and Compliance Departments of the Group Companies responsible
for evaluating suppliers also reviewed their ratings taking into account the attainment from suppliers of new certifications. Details about due diligence activities on the supply chain are provided in
the next section.

ANIMAL WELFARE
The OTB Group companies have drawn up an Animal Welfare Declaration that suppliers are
required to sign with regard to animal sourcing.
The Declaration, adopted years ago by Diesel and Staff International suppliers, will also be adopted in 2024 by Brave Kid, whose production in any case present a low level of animal fibres. The
Brand Viktor&Rolf, which directly manages the production of its collections, will also follow thesame direction.
Specifically, the Animal Welfare Declaration places the following requirements on suppliers of raw
materials and finished products:• that leather and skins are sourced only from food industry by-products;• that down and/or feathers are not sourced from force-fed or live animals;• that raw materials do not come from vulnerable, endangered or protected species as listed in

the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES)
and the International Union for Conservation of Nature's Red List of Threatened Species (IUCN);• that raw materials do not come from breeders who practice mulesing;• that compliance with all locally applicable regulations is guaranteed.

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For each Brand, the OTB Group guarantees the possibility to adopt more stringent measures,compatibly with its distinctive identity. In line with this principle, Diesel has been Fur Free since2010, which means that the products and accessories it sells must not contain animal skin or any
part thereof with attached pelt or fur fibres, in the raw or processed state, of any animal bred andslaughtered exclusively for the use of its fur. Starting with the FW23 season, Diesel also requiresthat if mohair fibres are used in its products, they must be certified according to the Responsible
Mohair Standard.

4 .5 FAIR WAG E S A N D WELL- BEING ALONG T H E
VALU E CH A I N
The OTB Group promotes respect of humanrights, workers' rights and the well-being ofworkers along the entire value chain, organising its processes to prevent potential violations, occupational injuries and inadequate
working conditions.
In accordance with these principles, Groupsuppliers are required to comply with theGroup Code of Ethics and Suppliers Code of
Conduct in order to guarantee high occupational health and safety standards.
In 2023, the Group companies continued toanalyse their supply chain, assessing suppliers’ social and environmental performance,
either through the evaluation of audit reportsthat were already available or through the organisation of on-site third-party audits. In
the case of easily resolved non-conformities,
a follow-up audit is scheduled to ensure thatbreaches are quickly resolved. For more serious, but not critical, non-conformities, suppliers are required to prepare an action planfor their resolution, to be implemented withina period of time that varies depending on theirregularity in question. Lastly, in the event ofcritical non-conformities or inaction and/or inability on the part of the supplier to guarantee
their resolution as planned, the Group companies contractually reserve the right to terminate the supply agreement.

In 2023, Brave Kid expanded its monitoring ofsustainability performance to include approximately 92% of significant suppliers18, throughaudits it commissioned directly or through thecollection and analysis of audits already heldby suppliers. In order to achieve an increasingly
comprehensive overview of the supply chain,it also started to map and collect available audit reports of direct suppliers’ subcontractors.
Furthermore, Brave Kid adopted an additional
checklist, especially with regard to some of themost critical countries, to verify compliancewith wage practices.

18. Key suppliers are those with whom the company has acontinuous relationship and makes purchases superior or equal
to 10,000 Euros per year.

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80

During 2023, Staff International commissioned a total of 130 third-party audits mainly
aimed at examining labour and tax law compliance as well as workplace safety of suppliers
and subcontractors of the Ready-To-Wear,
Shoes, Bags & Accessories divisions. Specifically, 75 audits were completed on direct suppliers and 55 on subcontractors.
In 2023, Diesel commissioned more than 72
audits on suppliers and subcontractors froman external company, following recognised international standards (e.g., BSCI and SMETA).
The audits also collected information on workers’ minimum wages and average salaries, including details on basic salary, remunerationof overtime, and overtime hours worked in theyear preceding the audit. The Brand also evaluated 12 additional audits made available bysuppliers and carried out by third party entities
to be compared with the Diesel social audit
standards.
Furthermore, Diesel commissioned an updated analysis of the social risks potentially present in its supply chain. This survey particularly
took into account the main social risk levers, aswell as those identified by the ILO (International Labour Organisation) with respect to the riskof forced labour and child labour. The objective of the analysis is to improve managementof the social risks potentially linked to the supply chain.
In connection with these issues, on the initiative of a number of Canadian non-profit organisations, the Canadian Ombudsperson
for Responsible Enterprise (CORE) launchedinvestigations into several companies in the
fashion and mining sectors with regard to theimport of products made in the People's Republic of China, for alleged human rights violations related to the Uyghur minority.
In this context, the non-profit associations and
CORE alleged that since 2019 Diesel Canada
had procured materials from a supplier citedin a report published in 2020 by the AustralianStrategic Policy Institute (ASPI).

Diesel Canada indicated that Diesel had reviewed its supply chain and denied the allegations. CORE decided nevertheless to proceedwith an independent investigation to verify thepresumed link between Diesel Canada and the
supplier.
In addition, during 2023, two suppliers who also
work for Diesel were involved in a Transparentem NGO investigation in Mauritius concerning
alleged commissions connected with the recruitment of migrant workers and other forced
labour risks, as defined by the ILO.
Diesel promptly responded and, together withsome of the 18 brands involved in the investigation, carried out a specific third-party audit
on both plants through a company specialisedin this field.
The audits confirmed some non-compliances highlighted by Transparentem, for whichcorrective measures are already underway,
while the alleged high commissions relating to
the recruitment of migrant workers were notconfirmed.
To underline its commitment to promoting thefair treatment of workers in the supply chain,in 2023 Diesel signed the commitment with regard to responsible hiring promoted by the Fair
Labour Association (FLA) and the American
Apparel & Footwear Association (AAFA).

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CUSTOMEREXPERIENCE,
AUTHENTICITY AND
TRANSPARENTCOMMUNICATION
5CUSTOMER
EXPERIENCE,
AUTHENTICITYA N D T R A N S PA R E N T
C O M M U N I C AT I O N

5With customers’ needs at the centre of its activities, OTB focuses on product quality, the promotion of services that make the customer experience unique, and the protection of customers frombuying counterfeit products.
The Brands also promote a transparent communication with their customers with regards to theirsustainability initiatives and the lower impact credentials for their products.

5 .1 CU STO M E R E XP ERIENCE
For maximum efficiency in the delivery of products to its direct and indirect channels, OTB has set
up a series of agreements, most notably with the Neteven “Marketplace Integrator” for the optimisation and management of its online marketplaces. This strategic partnership aims at more effective penetration of international markets, and in parallel at an improvement in the management ofexisting channels, through process simplification and automation.

STAGE

PROCUREMENT
AND DISTRIBUTION

USE AND CARE
OF PRODUCTS

DIRECT CHANNELS (B2C)• Retails• Outlets• Online

FINAL CUSTOMERINDIRECT CHANNELS (B2B)• Distributors• Travel retail

INDIRECT CHANNELS(B2B)• Anti-counterfeiting• Customer relations and responsible communication• Omnichannel services• Clienteling App

B2B Client Portal

To offer its Brands new growth opportunities, as well as an improved shopping experience for its
customers, in 2023 OTB extended its online presence to new marketplaces, including 24 Sèvres
and Yoox.

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Specifically, in order to expand its international online presence, in July 2023 Diesel establisheda collaboration with Global-e to manage international sales. The integration of the Global-e platform into the Moon ecosystem19 has given Diesel access to 24 new countries in the EMEA and
APAC regions, including Australia and South Korea, enabling customers to make purchases directly from the diesel.com website.
Services for B2C direct channels
The OTB Group Brands are dedicated to offering customers unique personalised experiences, anticipating and satisfying their needs witha proactive approach. Through a wide range of
in-store and online services, the Group places
increasing emphasis on omni-channel management, which is essential to adapt to thevarious sales channels and customer profiles.
Its omni-channel services include Buy Online
and Pick Up In Store, Click and Reserve, Click
From Store, Return In Store, Book an Appointment and Ship from Store.
Diesel was the first OTB Group Brand to adopt
an omni-channel CRM strategy for unified
management of online and offline customer data and improved customer analysis andsegmentation. This was followed in 2020 by thelaunch of the “Moon” omni-channel operating
model, which integrates online and retail sales
and inventory management to ensure seamless customer service. Diesel also monitors thecustomer experience and satisfaction throughits “Voice of the Customers” programme (VoC),
which collects feedback in stores, online andafter purchase. Engagement and dialogue withcustomers, also on sustainability topics, are offundamental importance for Diesel with a viewto continuous improvement.

19. Moon is a new omnichannel operating model designed to facilitate and simplify digital retail operations, while offering customers
around the world a totally seamless experience.

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In this regard, the Brand not only rewards customers with additional points on its “House of
Diesel” loyalty programme for more responsible behaviour, such as the use of reusable bags
made of recycled material, previously provided by the Brand, or in-store returns, or the purchase of “For Responsible Living” items, it has
also decided to raise awareness of ESG issues
through dedicated customer newsletters.
Vert Watch and Metaverse Experience
by Diesel
In September 2023, on the occasion of thelaunch of the Vert watch collection, Diesel
launched the innovative Metamorph project incollaboration with Fossil Group and Brave Virtual Xperience, which combines the physicaland digital worlds by redefining conventional
design in the category. The Metamorph experience is developed through an online gaming
platform, developed with Artificial Rome, which
consolidates the brand's position as a Web3
pioneer. Participants have the opportunity to
immerse themselves in a virtual world inspiredby the design of the Vert watch, with breathtaking scenarios and challenges to reactivate
time. Vert purchasers receive an exclusive NFT
in the form of a digital animated image, which
undergoes three transformations before assuming the likeness of the avatar that plays
an active part in the online game, allowing for
personalisation and access to unique gaming
abilities. Diesel has made it possible to participate in the online experience with a basic avatar, even for people who have not purchased
the watch.

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Among the OTB Group’s luxury Brands, Jil
Sander and Marni elevate the customer experience with distinctive services such as Try
at Home and Private Shopping Experiences.
These services make it possible to try products at home or enjoy private shopping sessions, offering a higher level of customisationand care.
In addition, Marni offers each customer aunique personalised experience through the“Millions of one-to-one interactions” initiative designed to create a personalised dialogue with each customer by promoting a
tailor-made, interactive real-time experience.
This omni-channel approach is a pillar of Retail
Excellence.
In 2023, Jil Sander devoted significant efforts
to training retail staff and implementing theMoon omni-channel project to offer customers an efficient, flexible and convenient shopping experience with delivery options. The
focus on the customer experience and CRM
also includes performance monitoring, loyalty activities and implementation of the Digital
Retail Tool (DRT) in 10 European stores. Special
events, such as invitations to fashion shows for
VIP customers, were organised to strengthenties with the Brand.

Customer experience, authenticity
and transparent communication

In 2023, Maison Margiela introduced an innovative initiative called “endless lanes”, with a pilot testin London. This service extends the customer experience from the store to the online channel,
providing access to the entire Brand assortment and information on the availability of items instores, and offering solutions for products that are not physically available.
The importance of the physical store as the primary point of contact to convey Brand values andemotionally engage customers is fundamental to the Group. Through exclusive events in physical stores and regional installations, the Brands promote interaction to strengthen ties with theircustomers. In 2023, Maison Margiela offered a VIC (Very Important Customer) experience centredon the Maison Margiela Co-Ed fashion show, creating exclusive experiences and consolidating theconnection with its customers.
The Group Clienteling App project, launched in 2022 with a pilot project, was a turning point in thedigitisation of the client experience in 2023, offering a digital interactive Selling Ceremony. The
app facilitates new forms of customer relationship and schedules activities and appointments toimprove the performance of the boutiques. During 2023, it moved from the experimental phasein 19 pilot stores to a more extensive development involving every store in Europe. An extension
outside Europe is being considered.

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87Services for indirect B2B channels: B2B Client Portal
In response to the growing need for digitisation, in 2020 OTB launched Hyperoom, a digital sales
platform and virtual showroom designed to generate emotional engagement between buyers
and sellers. Through Hyperoom, customers embark on a sensory journey in virtual environments,
assisted by salespeople on a live connection. Initially adopted by Diesel and Marni for the 2021
Spring/Summer season, the platform was later extended to the other Group companies.
Hyperoom also acts as a Virtual Showrooming platform to support seasonal order taking for all theGroup Brands, becoming a de facto B2B Client Portal that enables registered customers to accessthe services offered by the Brands, including Self Service Replenishment, where they can consult
a catalogue of products available for replenishment and place orders independently. Diesel B2B
customers can also use the platform to find information about lower impact products during sales
campaigns.
Ensuring a consistent and flawless customer experience is crucial for the OTB Group Brands, which
strive to strengthen relations with their wholesale customers both through face-to-face meetingsand innovative digital platforms. A prime example is Virtual Walkthrough, which uses virtual reality to offer remote immersive experiences, allowing wholesale customers to book virtual appointments, watch fashion shows in live streaming and view digital presentations of new collections.

5 .2 C U STO M E R RE L AT IONS H IP AND T RANS PARENTC OM M U N I CAT I O N
One of OTB's main strengths is its commitment to inclusive and authentic communication, inline with its core values. The Group communication strategy aims to foster true cultural change,for example by raising stakeholder awareness about the product life cycle. Each Brand, throughdifferent tools, shares information on product care and packaging recycling.
OTB transparently publishes its progress on environmental, social and governance (ESG) performance and its achievements in this area. This is facilitated by a dedicated section on the Group
official website, which provides an overview of the Sustainability Strategy and related Reports.
Communication channels
The OTB Group Brands optimise interaction with customers through various communication channels, from social media, e-mail, newsletters and websites to dedicated support systems designed
to provide an effective and efficient response to every request.

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OTB has an active and strategic presence in social media, using platforms like Instagram, Facebook, LinkedIn and Twitter to connect directly with its community. The Group Brands also use
specific platforms for the Asian market such as Weibo, WeChat, Kakao, Line and RedM, adapting
to their global customer base.

SOCIAL MEDIA PRESENCE OF OTB AND THE BRANDS (number of followers)20
Facebook

5,851K

Instagram

11,301K

838K

Twitter

524K

TikTok

259K

Kakao

140K

Weibo

WeChat

RED

821K

312K

LinkedIn

213K

20. The social media data include the OTB Brands and the Production Hubs.

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These channels build customer loyalty through regular, frequent and meaningful interactions. The aim is to strengthen customer relations through a broad and intimate formof storytelling that stimulates people's curiosity and emphasises exclusivity. Compared
to 2022, the number of followers on the social networks of the OTB Group Brands
increased by 8.3%.
In the OTB Group, each Brand deploys a tailor-made digital strategy to interact with its
social media communities, reflecting the cultural and behavioural diversity of consumers of all regions and ages.
Diesel, for example, optimises user-generated content on dynamic platforms suchas TikTok and Instagram, encouraging active participation through collaboration with
influencers and streaming events and fashion shows in real time.
Maison Margiela focuses on Instagram as the main vehicle for its visual storytelling,enhanced with content that blends the informative and the commercial. Under thevisionary leadership of John Galliano, the Maison has successfully attracted a young
audience, amplifying brand recognition.
Viktor&Rolf uses social media to offer an authentic look at the Brand backstage, fromthe creation of the collections to insights into the biennial fashion shows and othersignificant moments. This open dialogue aims to establish close ties with the public, who
are invited to immerse themselves in a narrative that celebrates the uniqueness andexclusivity of the Brand.
Marni’s social media strategy transposes the Brand’s creative vision through detailed,intimate and distinctive international projects, reflecting a clear commercial approachto markets in which the Brand operates. Photographers involved in the storytelling of
the collections are highly recognized in the Fashion Industry, and encompass an open
and dynamic dialogue with creative director Francesco Risso.

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THE DIESEL MESSAGE
Diesel is an emblem of inclusiveness and openness,characteristics that reflect its bold and unconventional communication. Through campaigns that challenge thestatus quo, Diesel has always stimulated debate on issues ofsocial injustice, diversity and politics. The brand advocates individualism and freedom of expression, celebrating diversity in all its forms and supporting the LGBTQIA+ community, inspired by the underground and avant-garde web3culture.
In 2023, Diesel renewed its partnership with NTS x Diesel TRACKS, presenting a series of monthly mixes and playlists highlighting the global rave scene and engaging innovative artists to promote cultural diversity. The project combines the digital and the physical, together with global
events and discussions.
For several seasons, Diesel has also transformed its fashion shows into open events, transcending the boundaries of traditional catwalk exclusivity. An example of this was the 2024 Spring
Summer fashion show held in Milan in September 2023, which turned into an open-air rave party and then a free film festival, embodying Glenn Martens' vision of the brand as an open andevolving community.
The Diesel x Durex partnership and the XXXMAS Holiday Campaign reflect the Brand's commitment to personal freedom and sexual positivity.
As part of its transparent customer communication, Diesel highlights its sustainability efforts
through specific labelling. Its garments come with the “This garment is made For Responsible
Living” label, which signals adherence to the Brand's sustainability criteria. To learn more about
the responsible features of the products, customers can scan a QR code on the garment's innerlabel. This redirects them to a digital “ID” platform detailing the preferred materials used, theinnovative low-impact treatment techniques, as well as selected accessories.

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5 .3 A N T I - C O U N T E RF EIT ING
The fight against counterfeiting is a key pillar in
OTB's strategy to ensure consumer safety andprotect the integrity of its Brands. Counterfeit
products may not only damage health, but also finance illegal activities, compromising theimage and reputation of the Group and its official partners. In response to these challenges, OTB devotes significant resources to thedevelopment of advanced methods and tools
to combat counterfeiting, thereby protecting
the results of the research and development
efforts of its creative teams.
The Group’s approach is based on protectionof its Intellectual Property (IP), through theregistration and management of its trademarks and designs. Meanwhile, it deploys
corporate strategies to optimise resources
and costs for monitoring activities. Prevention strategies are customised for each brand,
through cooperation with national authorities
in cases of suspicious goods, plus a monitoring service to identify third-party registration
applications and reject them if the filed trademark is identical or similar to that of the brand.

The Group has also introduced product traceability and identification technologies basedon microchips and tags, in part using blockchain technology. Many OTB products are also equipped with Near Field Communication
technology (NFC), which enables customers
to verify authenticity. Starting in 2022, authenticity certificates are registered on the
Aura Blockchain Consortium's blockchain
platform, allowing consumers to follow the entire product life cycle. In 2023, OTB encrypted more than 580,000 products from Marni,
Maison Margiela and Jil Sander on the blockchain platform in a secure, time-immutable
and incorruptible manner, an increase of about
200% compared to the number of products
encrypted the previous year, for an overall total of over 800,000 products.
Authentication is also assisted by coupling serialised UHF labels with QR codes that guarantee product originality. The work of logistics
personnel at OTB and third-party logistics
sites is facilitated by the use of tunnels, pivoting readers and packaging stations. Handlingof samples in the showrooms and HQ offices
is tracked too, using RFID technology21. These
technologies also offer support to increase theefficiency of operators in stores and improvecustomer relations.

21. RFID technology facilitates product tracking, movement control and retail operations management, as well as facilitating Brand
protection.

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and transparent communication

Each OTB companies Legal Departments receive updates on how to manage IP protection
and work with their Production Departments
and Style Offices to implement strategies andforward instructions to external vendors. The
legal departments also work with trade associations and take part in national and international projects for deployment of more targeted action in collaboration with public authorities. The OTB Group is actively involved inseveral initiatives promoted by INDICAM, participating in training activities, round tables andprojects for trademark protection both in Italy
and abroad. It is also involved in training activities on recognition of counterfeit goods for
the Italian customs authority, the Guardia diFinanza law enforcement agency and Municipal Police. Similar activities are regularly organised with the Legal Affairs Commission ofConfindustria Moda, the Chamber of Fashionand the Italian Ministry for the Economy, andabroad with the Fédération de la Haute Couture et de la Mode. Together, these preventive and reactive initiatives have enabled theGroup to establish a zero-tolerance approachto counterfeiting. In 2023, 457 customs seizures were made, for a total of almost 83,700
seized items.
Garments confiscated during seizures arehandled in a way that favours recycling andupcycling wherever possible and avoids destruction. At the same time, the re-entry ofcounterfeit products into sales channels is prevented with the complete removal of brandedlabels and accessories during product reconditioning.

All the Group companies have invested in online counterfeit monitoring to intercept andblock illegal online distribution channels. Each
Brand has implemented a programme tocheck and remove online content and close
pirate websites, including cloned websites andsocial media accounts, and remove advertising from various online platforms and themetaverse. In 2023, approximately 860 sites
selling counterfeit goods were monitored andalmost 113,000 advertisements were reported on web platforms, of which approximately
90,000 were removed. In addition, 10,280 content items on social media were reported andmore than 7,000 were removed. As far as domains are concerned, more than 20 were reported, with approximately 80 removals, andmore than 4,500 notifications were sent for
the removal of web pages on Google22.
The case of Diesel
The Diesel Brand demonstrates the OTBGroup's strong commitment to the fightagainst counterfeiting. Since the beginning of2023, 27,000 listings of fake products on online
platforms have been removed and 500 illegal
websites have been shut down.
To protect consumers, all products areequipped with a QR code and a 12-digit numerical code that create a unique digital identity. Customers can scan the QR code with
their smartphone or use www.certilogo.com toconfirm the authenticity of their purchase.
The result, in the specific case of Diesel, hasbeen a substantial decrease in the number ofcounterfeit products on the market.

22. The data refer to the results of the “online brand protection”activity. The data from January to June are estimates, as the OTB Groupchanged providers during the year and it was not possible to reach exact figures.

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Customer experience, authenticity
and transparent communication

95

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Protecting Our Planet

PROTECTINGOUR PLANET
6
P R O T E C T I N GOUR PLANET

6

Fashion is one of the world's most polluting industries due to its significant greenhouse gas emissions, consumption of resources such as water and soil, and the potential release of chemicals into
groundwater. To help counter and prevent potential negative impacts from its activities, the OTBGroup has focused the Protecting our Planet pillar of its Sustainability Strategy on topics related
to environmental management. The specific material topics it has identified are:

• Climate Strategies• Protecting oceans• Water stewardship and chemical
management• Biodiversity

6 .1 ACT I N G O N C L I MAT E CH ANG E
As regards strategic activities to be implemented to fight climate change, OTB has drawn up a
Climate Plan setting specific targets to reduce greenhouse gas emissions to zero by 2050 (Net
Zero) and is working on its own decarbonisation strategy.
The Group also responded to the Science Based Targets Initiative’s (SBTi) call to action: it sent acommitment letter in 2021 to set targets in line with the “1.5°C scenario”23 and in 2023 it obtained
validation of its reduction targets, which are outlined below:

2019

Baseline year

2025

Increase in annual renewable electricity supply
from 0% in 2019 to 80% by 2025.

2030
2050

Net Zero by 2050

98

51% reduction in absolute Scope 1 and 2 GHG
emissions compared to the 2019 baseline.
55% reduction in Scope 3 GHG emission intensityfrom purchased goods and services and upstream/
downstream transportation and distribution per tonneof purchased raw material, compared to the 2019baseline.

23. The “1.5°C Scenario” is a commitment to limit the rise in temperature to 1.5°C above pre-industrial levels, in line withthe 2015 Paris Agreement. The objective aims to mitigate the negative effects that could occur if the limit is exceeded.

To achieve these targets, the Group has undertaken a coordinated re-organisation in Europe, within which it has strengthened the Energy Management Function in the Safety & Facility Department.
As a result, operating guidelines and collaboration with specific local players have been enhanced.
To monitor consumption and emission trends and map supply points in detail, in 2021 OTB developed a monitoring dashboard, which collects technical information on energy usage, including
energy from renewable sources, as well as cost and consumption data obtained directly fromenergy suppliers via an interface with their information systems or, where this is not possible, fromenergy bills.
The introduction of this Energy Management System enables OTB to conduct targeted analyses and checks and draw up progress reports. The data collected through the system is usefulin improving building energy efficiency, with simple practical indications that can be adopted by
all Group sites. For example, as indicated in the guidelines, the winter and summer switch-on
times and temperature settings of heating/conditioning systems at the sites with highest energy
consumption are kept under control. The Group has also planned investments in new LED lighting
systems.
During 2023, it introduced the “OPÉRA Energie” platform for continuous improvements in
consumption control, in this specific case in its French operations.

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Protecting Our Planet99

ENERGY CONSUMPTIONOTB's energy procurement strategy is based on a diversified combination of energy sources. In
environments such as stores, offices and warehouses, electrical energy is used mainly to power
lighting, air-conditioning and electronic devices. For heating, both natural gas and electricity areused, the latter used with heat pump systems. Two high-efficiency cogeneration plants operate
at the Diesel and OTB headquarters in Breganze, to which 17% of the natural gas purchased fromthe grid is allocated.
Direct and indirect energy consumption (GJ)24

2021

2022

2023

Direct energy consumption*

135,307

112,512

113,755

Natural gas

113,91289,66991,267

Diesel19,837

20,792

19,637Gasoline

1,457

1,792

2,610

Methane

101

260

219

-

-

22

Indirect energy consumption

101,468

117,248

116,485

Electricity from non-renewable sources

59,53055,98550,876

Electricity from certified green energy (GO)40,32359,60963,920Electricity from own solar panels

1,615

1,654

1,689

% Renewable energy

41%

52%

56%

236,774

229,761

230,241

LPG

Total* Not including the helicopter

In order to optimize consumption management, the Group has invested in plants powered byrenewable sources25 with the aim of increasing the energy self-sufficiency of the sites. Specifically, two new photovoltaic plants were installed in 2023: one at the headquarters of Diesel and
OTB in Breganze and the other at the Staff International headquarters in Noventa Vicentina. An
additional photovoltaic system was integrated with the acquisition of Pelletteria Frassineti, which
resulted in a 24% increase in installed power compared to 2022.

24. The calculations are based on primary mapped consumption data. When precise figures were not available, consumption was
estimated considering the type of factory, the floor area, the country and the number of months open/closed. The consumption
estimate was calculated using the CURB database.
25. Renewable sources are natural resources such as wind, tides, sunlight and the earth's heat. These inexhaustible and clean resources
can be used for the production of electricity and heating.

1002023 Sustainability Report

Protecting Our PlanetIn 2023, the Group's share of energy from renewable sources, which includes self-produced
energy from proprietary photovoltaic plants and energy purchased from the grid from renewablesources certified with Guarantees of Origin (GO), reached 56% of total electricity consumed(about 4 percentage points higher than in 2022).
Furthermore, considering the sites directly controlled by the Group in Europe, the percentage ofenergy from renewable sources reached 99%.
To increase energy from renewable sources, OTB's Indirect Procurement Department, in cooperation with the Energy Function, has activated a Due Diligence activity to verify electricity supply
contracts and, if necessary, convert them to contracts with energy from renewable sources
guaranteed by GO certificates. Wherever possible, the energy supply of sites directly controlled
by the Group (offices, stores, warehouses) is covered by framework agreements signed by theparent company or contracts signed by the individual Group company with the local supplier.
In cases where the energy supplier does not directly supply energy from renewable sources, theGroup companies purchase GO certificates directly from intermediaries selected by the Indirect
Procurement Department.

LEED® ENVIRONMENTAL CERTIFICATIONS
The commitment for a more responsible fashion industry also extends to the OTB Brands’ stores.
The LEED® protocol (Leadership in Energy and Environmental Design) is the world's most widespread voluntary building certification. Its goal is to increase the level of energy and water savings in buildings, while decreasing carbon dioxide equivalent emissions. It also considers the ecological quality of the indoor environment and other factors such as site selection.
Diesel was the first Brand of the Group to obtain certification for compliance with the LEED®
Design and Construction Gold standard, for the following sites:•••

Diesel London Offices
Diesel New York Soho Retail
Diesel Milano Showroom.

Meanwhile, OTB has begun a feasibility analysis to certify its stores to the LEED® standard in order to reduce its own CO2 equivalent emissions and thus the Group’s carbon footprint. A roadmap has been drawn up for stores that will follow the LEED® certification path from 2024.

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101

EMISSIONSThe OTB Group's Scope 1 emissions for 2023 are in line with those of the previous year. The minimal
increase of 1.1% resulted from the acquisition of a new production site and greater use of company
cars for business travels compared to 2022.
As in 2021, the Scope 1 calculation also includes emissions relating to the OTB helicopter poweredby aviation kerosene, which fell by 5.0% from 2022.
For Scope 2 emissions, which refer to electricity used by the Group's facilities, the location-based
approach found a marginal increase, while the market-based approach showed a decrease ofabout 4%. The distinction between the two reporting methods is that the market-based approach
excludes emissions offset by the use of renewable electricity certified with guarantees of origin(GO). The emissions decrease estimated with the market-based method reflects the increase inpurchases of GO-certified green energy, highlighting the Group's efforts to reduce its environmental impact in line with the goals of the Sustainability Strategy. Compared to the 2019 baseline,
market-based emissions have decreased by about 40%.
In line with previous years, in 2023 the Group's Scope 3 emissions accounted for 97.1% of total
emissions, highlighting the significant impact of emissions generated along the value chain.

OTB GHG EMISSIONS BY SCOPE

1.5%

Scope 2

1.4%

Scope 1

97.1%
Scope 31022023 Sustainability Report

Protecting Our Planet

Scope 1 and 2 greenhouse gas emissions (tonnes of CO2eq)26

2021

2022

2023

Scope 1

7,678

6,065

6,131

Natural gas

6,257

4,547

4,638

Diesel

1,305

1,393

1,304

Gasoline

93

113

161

Methane

5

13

11

LPG

-

-

1

Helicopter

17

17

16

Scope 2 – Market-Based

6,581

6,476

6,247

Scope 2 – Location-Based

9,747

11,092

11,163

2021

2022

2023

g CO2eq/kWh Market

233

199

193

g CO2eq/kWh Location

346

341

345

g CO2eq/sqm Market

30

19

18

g CO2eq/sqm Location

45

32

32

Scope 2

Scope 2 emission intensity indicators
Scope 2

CAR PARK AND CHARGING POINTSAs part of the transition to low-emission vehicles, in 2023 the Group increased the number ofelectric and hybrid vehicles in its corporate fleet by 21% compared to 2022. In addition, 10 new
charging points were installed at the OTB, Diesel and Staff International sites. With the newly
installed stations, the total number of charging points in Italy rose to 28. To facilitate the transition, agreements have also been reached for the corporate electric vehicles to be recharged at
public charging stations throughout Europe.

26. The CO2eq calculation (which includes CH4, NO2, HFC, PFC, SF6 and NF3 emissions when present) was executed following the GHG
Protocol. CO2eq emissions were calculated using emission factors sourced from: AIB (Association of Issuing Bodies), UK Department forEnvironment Food & Rural Affairs and Department for Business, Energy & Industrial Strategy, Eurostat database, CURB database, Pcaf
database, Ecoinvent database, international Life Cycle Assessment (LCA) studies and documents, environmental product declarations(EPD) and the IEA 2023 database (International Energy Agency).
It was not possible to include the emissions generated by the restocking of Refrigerant Gases in the Scope 1 calculation, as no precise
data have been made available to date.

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103

The results of the Scope 3 categories calculated and reported for the OTB Group for the threeyears 2021-2023 are shown below. Categories 8 (Upstream leased assets), 10 (Processing of soldproducts) and 13 (Downstream leased assets) were not included in the calculations, because they
are not significant for the Group.
Scope 3 greenhouse gas emissions27 (tonnes of CO2eq)
Scope 3 (tonnes of CO2eq)

2021

2022

2023

252,109

273,953

240,696

2. Capital goods

8,789

13,87644,258

3. Fuel and energy-related activities

2,188

2,242

2,585

4. – 9. Upstream and downstream transportation and distribution29

17,13423,86023,783

5. Waste generated in operations

611

1,128

308

6. Business Travel

390

928

1,583

7. Employee Commuting

12,345

16,35718,081

11. Use of sold products

58,40962,00456,351

12. End-of-life treatment of sold products

8,065

9,092

7,046

14. Franchises

2,374

2,285

2,610

15. Investments

10,203

16,326

14,979

Total

372,619422,052

412,278

1. Purchased Goods and Services28

27. When data were not available, estimates agreed with the relevant functions were used.
28. Scope 3 emissions were recalculated with respect to 2022, to unify the method used to collect data among the Group Production
Hubs. Specifically, the calculation of emissions from the assembly of products (Category 1 - Purchased goods and services), fromthe use of products issued by the Group (Category 11 - Use of sold products) and from product end-of-life (Category 12 - End-of-life
treatment of sold products) was updated. Within Scope 3, the calculation of Franchise emissions (Category 14) included emissions fromthe use of both natural gas and electricity. Finally, the data of categories 4 and 9 from the previous years (2022, 2021) were aligned withthe methodology applied for 2023. For further information, see footnote 29.
29. As in previous years, Category 4 emissions. Upstream transportation and distribution and Category 9. emissions. Downstream
transportation and distribution are shown together, given that until 2023 the OTB Group mapped all transportation without immediately
distinguishing between upstream and downstream. Furthermore, in 2023 transportation directly managed by OTB was calculated using
the TMS and Greenrouter, applying the Glec emission factors. To ensure a basis for comparison, the emissions of the two previous years
were recalculated using the Glec emission factors.

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Within Scope 3, the categories “Purchased goods and services” and “Use of sold products” arethe most significant. “Purchased goods and services” accounted for 56.7% of emissions. Specifically, category 1 groups together emissions from the purchase of raw materials, finished products,
packaging and services. The purchase of raw materials had the greatest impact, despite a 17.9%
decrease in emissions compared to 2022.

COMPOSITION OF CAT. 1 EMISSIONS PURCHASED GOODS AND SERVICES

26.8% Services
14.0% Assembly
1.3% Packaging

57.9%

Raw materials

62.7% Cotton
2.2% Organochemicals
3.5% Wool
4.6% Other

Focus emissions cat. 1 Raw
materials

11.5% Leather

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15.5% Polymers

Protecting Our Planet

105

Specific attention was given to calculating theimpact arising from the regular care of products (washing, ironing, drying), consideringvarious use scenarios. Other significant categories include “Capital goods” and “Upstream
and downstream transportation and distribution”, which accounted respectively for 10.4%
and 5.6% of total Scope 3 emissions. The data highlight the impact of the Group's business infrastructure and logistics on the overall emissions profile. Specifically, emissions in
category 2 “Capital goods” more than doubled
as a result of extraordinary investments suchas those made for the Maison Margiela's new
headquarters in Paris.

Of purchased materials, cotton accounted for
58.2% of total raw materials, followed by polymers and leather, making cotton the mostimpactful material in terms of emissions produced (62.7% of total emissions from raw material purchases).

Finally, in 2023 there was an increase in business travels and employee commuting due tothe normal resumption of representation activities and the reduction of smart working.
2023 also saw a decrease in Category 5 emissions, due to an increase in waste sent for recycling and recovery and greater detail in theinformation collected.

The emission intensity of Category 1, calculated on the basis of raw materials purchased (including packaging), shows a 3.4% decrease inemissions per kg of product compared to 2022.

During 2023, total emissions, including Scope
1, Scope 2 and Scope 3, decreased by 2.3%,
marking a reversal of the upward trend inemissions generated by the OTB Group in previous years.

The second most impactful category is category 11, “Use of sold products sold”, which
accounted for 13.3% of the total Carbon Footprint, reflecting the carbon footprint associated with the use of products by consumers
throughout their life cycle.

106

Scope 3 emission intensity (SBTi target)

u.m.

2019

2020

2021

2022

2023

Scope 1, 4&9 emissions on tonnes of purchased raw materials and packaging

tCO2e/ton

20.6

22.2

21.3

23.5

23.9

2023 Sustainability Report

Protecting Our Planet6 .2 OTB LO G I ST I C S SYST EM
Logistics flows, managed by OTB's Logistics
Department, are closely linked to the activitiesof the Brands for which they operate.
The main functions of the Department include:• collecting finished products from suppliers
and transferring them to the finished product warehouses;• managing finished products handling at

warehouses, during receipt, storage, allocation to customer orders, picking, packing
and preparation of shipments;• organising distribution to direct channels(Retail, Outlets, E-commerce);• organising distribution to indirect channels(Wholesale, Off price);• managing reverse logistics flows from
Retail and Outlets to the finished productwarehouses.

Depending on the sourcing model used by theindividual Brand, the Logistics Department
handles a variety of inbound flows and a variety of transfers between the primary hubs andthe regional distribution centres.
For Brands whose sourcing is concentrated in
Italy/Europe, finished products are transferredfrom suppliers to the primary hub. After allocation to customer orders, the shipments areprepared to transfer the finished products to
the regional distribution centres. From eachregional distribution centre, distribution is thenorganised to the customers in the region.

2023 Sustainability Report

For finished products allocated to a final customer order, the process involves pre-packaging at the primary hub and a cross-docking
transit, i.e., keeping the packaging made in the
primary hub at the regional distribution centre.
For finished products ordered by branches
and intended for reassortment, the process involves a bulk transfer from the primary hub tothe regional distribution centre. At the regional
distribution centre, these finished products are
shelved ready for subsequent re-orders by direct stores or indirect customers.
For Brands with sourcing distributed in various regions around the world, OTB's Logistics
Department manages transfer flows from the
suppliers to the primary hub or directly to theregional distribution centres, depending on the
final destination of the products.
All the hubs and regional distribution centres
are set up for distribution of finished products
for both the business-to-business and thebusiness-to-consumer channels.
To optimise and reduce the impact of thetransportation system, OTB employs an AI
system that presents operators with the mostcost-effective and consumption-efficientsolutions. The AI assessments are supportedby the Transportation Management System(TMS), a software system for the planning,
execution, monitoring and optimisation of the
movement of goods from suppliers to customers through the different warehouses.

Protecting Our Planet107

In the last few years, the Logistics Department
has also expanded the role of automation in
its warehouses. Brave Kid's new warehouse,
operational from July 2022 and extended in
2023, and Staff International's warehouseon the Isola Vicentina Campus, operationalfrom July 2023, are the first success stories.
Thanks to the innovative automation system,
conditions for picking operators have been
improved through the introduction of standardised ergonomic workstations, the reductionof use of moving equipment such as forklift
trucks, and the elimination of most of the risks
associated with man-machine interaction. The
system has not only improved occupationalsafety, it has also optimised the storage areas given equal volumes of garments, with areduction of about 75% in occupied surfaces,and produced a 14% reduction in the energy
requirement for lighting in the warehouse.
Furthermore, a pilot project was launched in
2023 to reduce the use of disposable cardboard boxes for transporting garments fromsuppliers, and introduce reusable polypropylene boxes that are recycled by the supplier atthe end of their life. The initiative was implemented for the transportation of denim fromsuppliers in Tunisia to the Isola Vicentina warehouse. Also with a view to reducing impact,
the Logistics Department is considering othersolutions to minimise waste and the consumption of materials through the gradual introduction of packaging and certified materials fromforests managed in accordance with strict environmental standards.

1082023 Sustainability Report

In line with the Climate Strategy, OTB's Logistics Department is committed to reducing
emissions through continuous improvement
in warehouse, transportation and packaging
management processes. This includes theintroduction of the first full electric truck, toeliminate CO2 emissions from raw materials
transfers between the OTB Group’s facilities inthe Veneto region.
THE DIESEL LOGISTICS PROJECT“LOCAL HUBS”
The Diesel Local Hubs project, a strategic initiative designed to improve transportation
speed and efficiency for Diesel products andcut transportation costs and emissions on
product returns, continued in 2023. Launchedin August 2021 with a pilot trial in the United
Kingdom, its purpose was to channel all returned orders to a local hub in the region, so
avoiding a return journey to the central warehouse in Italy and making it possible to organise a second delivery for the same item within
the UK on receipt of a new order. By remaining
in the local hub, returns were managed more
efficiently in terms of time, costs and footprint. A preliminary stage of the pilot project
was also launched in Germany and Switzerland, where returns are stored in a local hub forabout seven days, so that they can be collected and returned together in a single shipment
to the central warehouse in Italy.

Protecting Our Planet6 .3 P ROT E CT I O N O F T H E OCEANS
AN D WAST E M A N AG E M ENT
The health of the planet is closely linked to the protection of the oceans and marine species. These
ecosystems play a crucial role: they absorb CO2, generate oxygen and provide food for the global
population. It is therefore essential to consider issues such as acidification of the oceans and thedecline of marine biodiversity, both of which are influenced by plastic and microplastic pollution.
To this end, the Group has identified specific targets as part of its Sustainability Strategy and in linewith “The Fashion Pact”, such as, but not limited to, elimination of superfluous virgin plastic in B2C
packaging by 2025 and B2B packaging by 2030, and use of recycled plastic where virgin plastic
cannot be eliminated.
As part of the transition to a more responsible fashion system and in line with the objectives
mentioned above, the Group has taken important steps to improve the environmental performance of packaging. For example, virgin plastic polybags have been replaced in B2B by polybags
made of recycled plastic and recyclable materials. In addition, all the Group Brands have pledged
to use certified materials from responsibly managed forests for paper and cardboard packaging.
With this in mind, in 2023 Diesel and Marni adopted hangers made from recycled materials forgarment shipments in order to limit the use of virgin resources and contribute to an overall reduction in environmental impact.
In the OTB Group, 44.7% of packaging purchases relates to product packaging, which includes
labels and shopping bags, 39.1% is logistics packaging, while 12.6% is for purchases for the retailchannels, such as clothes hangers. The remaining 3.6% relates to the e-commerce channel.

PACKAGING PURCHASES BY TYPE OF MATERIAL

1.1% Metal

2.2% Textile fibres

0.1% Other

75.5% Paper and cardboard

21.1% Plastic

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109

The purchase of paper and cardboard packaging accounts for 75.5% of the total. Of this percentage, 43.4% comes from recycled materials, while 9.2% is certified as coming from responsibly
managed forests. Plastics account for 21.1%, a decrease of 3 percentage points compared to2022. The remaining 2.2% consists of textile fibres, metals and other materials.
Packaging by type of material (tonnes)30

2021

2022

2023

Textile fibres

27.2

18.4

61.2

Metals

72.5

27.1

30.8

2,488.1

2246.4

2,188.2

-

936

901.3

Paper and cardboardof which recycled paperof which certified recycled paper
Plasticof which recycled plastics
Other (paints and rubber materials)
Total

305.9
148.6

728.2

463.9

0.3

526

272.9

0

9.2

3.5

2,736.4

3,029.3

2,747.6

Waste management
Reducing the generation of waste, from both packaging and processed textile fibres, is a challenge that the OTB Group is committed to addressing.
The objective is to promote a cultural change that extends beyond the organisation and encourages customers to take a responsible approach to products and the product life cycle. In line with
the Global Compliance Programme, OTB closely monitors the risk of environmental crime, working
with authorised transporters to ensure proper recovery of waste. It pays particular attention tohazardous waste, where disposal procedures comply with current legislation. Data monitoring andcollection processes comply with regulations on manufacturer traceability and waste segregation.
The Group Safety & Facility Department, which oversees waste management, coordinates andintegrates environmental legislation. It keeps track of solid waste management and disposal, as
well as water discharges and emissions into the atmosphere. In this regard, in 2023 the Department
launched a program to ensure selection of waste handlers in line with the objectives of the Group
Sustainability Strategy and the related commitment to limit waste sent to landfill.

30. The rise in purchased packaging volumes is due in part to improved mapping of packaging typologies and volumes by the Group
Brands and Production Hubs.

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Most of the waste produced by the OTB Group cannot be classified as hazardous (hazardous
waste accounts for 0.3% of the total). The waste it generates consists 40.6% of paper and cardboard and 25.3% of mixed packaging. Wood accounts for 13.6%, followed by textiles at 4.9%, whilea minimal amount is attributable to construction and demolition (bulky waste), organic liquid waste,
mixed municipal waste and plastics.

BREAKDOWN OF WASTE GENERATED IN 2023

1.4% Other waste

31

2.6% Plastic
3.4% Mixed municipal waste
4.0% Liquid organic waste
4.2% Construction and demolition

40.6 % Paperand cardboard

4.9% Textile fibres
13.6% Wood
25.3% Mixed packaging

In 2023, the volume of waste generated by the Group increased by 37.1% from the previous year
(from 1,670 tonnes in 2022 to 2,290 tonnes in 2023). The increase was largely due to the enlargement of the reporting scope and greater data granularity. The figure also includes estimates32
for sites where detailed data collection was not possible. The increase in waste was also attributable to the inclusion of Pelletteria Frassineti, which was acquired in 2023.

31. Other waste includes paint and varnishes containing organic solvents or other hazardous substances, printer toner, batteries
and accumulators, organic waste containing hazardous substances, adhesives, bulky waste, fluorescent tubes and other mercurycontaining waste.
32. The office estimates were made starting from the actual data for the offices in Italy, and then computing proportionate estimates
based on the number of employees at each site. For the stores, actual data was collected for some Italian sites; for stores for which
actual data were not available, waste was estimated on the basis of the sites’ floor area.

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6 .4 WAT E R ST E WA R DS H IP
AN D C HE M I CA L M A NAG EMENT
Water stewardship
The textiles and tanning industries use considerable volumes of water in their operations,e.g., to grow cotton, dye materials, wash andprocess leather and skins, reaching an annual
consumption of approximately 79 billion cubic
metres of water. The sector is also believed tobe responsible for around 20% of water pollution worldwide, in particular from dyeing andfinishing operations.
Therefore, responsible water stewardship andthe careful use of chemicals are two of the key
topics of the OTB “Be Responsible. Be Brave.”strategy, and the Group Brands are actively
engaged in selecting suppliers who adopt production methods that reduce water consumption and pollution.
Specifically, Diesel is moving ahead withmeasures to cut water consumption and useof chemicals in production, particularly forits denim collections. The Brand continues toimplement innovative techniques for garment
treatment and finishing, which deliver sharp
reductions in the overall use not only of water,
but also of chemicals. These innovative processes include the use of synthetic pumicestones, laser finishing technology, nebulisation,ozone treatment and low-impact substitutes
for conventional potassium permanganate.

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Following a similar strategy, Staff International
works with suppliers who use innovative nebulised saturated steam washing systems insteadof the traditional methods that require hot water and conditioner. This technology eliminates
the need to add chemicals and helps preventthe production of wastewater contaminatedwith impurities or sludge.
Responsible management of chemicals
OTB is committed to phasing out hazardous
chemicals from the entire product life cycle
to protect the environment, factory workers
and end consumers, in line with international regulations and the Group's environmental
guidelines. In 2021, the Group joined the ZDHC
(Zero Discharge of Hazardous Chemicals)Foundation's Roadmap to Zero Programme
to develop a water and chemical management
strategy based on the leading industry standards for all suppliers that employ wet processes. As a ZDHC Contributor, the OTB Group has
also undertaken to engage its supply chain by
2030. Suppliers are required to register with
the ZDHC Gateway, the largest global database of “safer” chemical alternatives for the
textile, clothing and footwear value chain. In
addition, suppliers are also encouraged to follow the Supplier To Zero path, aiming to reachthe “Foundational” and then the “Progressive”
level. In this process, the Group companies
support suppliers by monitoring their progressand ensuring compliance with the establishedprotocols.

Protecting Our Planet

Since 2022, OTB has adopted a Restricted
Substances List (RSL) & Product Safety Requirements (PSR) to regulate management ofchemicals for all the companies in the Group.
The document, which is reviewed annually,
supplements the regulatory restrictions for
global markets on chemicals used in manufacturing with more stringent requirements andstandards, such as the latest guidelines of the
ZDHC Manufacturing RSL. All the companies
have integrated the RSL into their contracts
with finished product and raw material suppliers, together with the Code of Conduct andthe raw material procurement standards.
In 2023, the latest version of the document
was released, with important regulatory updates focusing on packaging products andtheir requirements and new targets for reducing potentially hazardous chemicals. The
latest update of OTB's Restricted Substances
List (RSL) was circulated within the Group andto external suppliers, together with guidelines
for achieving the ZDHC targets, with a special
emphasis on the Supplier to Zero process andits progress. Suppliers are required to subscribe to and sign the RSL as part of their onboarding process.
In general, besides complying with the limits
and prohibitions imposed by the Group RSL,the OTB Brands are focused on selecting certified raw materials, which include additional
restrictions and guidelines for chemical management.

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6 .5 PROT E CT I N G B I ODIVERS IT Y
Fashion has a significant impact on biodiversity due to its production practices and intensive useof resources. Protection of biodiversity is an important challenge.
OTB is drawing up an analysis of its biodiversity impacts so that they can be quantified, monitored
and reduced throughout the supply chain. The document will serve as a basis for the formulationof an internal biodiversity policy that will guide all Group brands and partners in the selection of
appropriate measures.
Diesel and the focus on biodiversity
Diesel has long been committed to cutting its impact on biodiversity, opting to purchase organic,
recycled and regenerative cotton (which requires less water and fewer chemicals than conventional cotton) and to use alternative fibres such as certified viscose, which ensure more responsible
sourcing, as well as paper and cellulose materials with FSC® certification.
As an active member of The Fashion Pact, Diesel participates in the coalition's initiatives, such as
training and analyses conducted by their platform and other member bodies. Diesel has also joined
The Fashion Pact's “Unlock Platform” project to set up a collective sourcing platform that helps
farmers make the transition to lower-impact cotton.
During the last quarter of 2023, Diesel began an environmental risk analysis focusing on three
key issues: climate, biodiversity and water. The investigation involves two stages: identification of
hotspots in the Brand's supply chain and analysis of the related environmental risks. The objective of the analysis is to identify the Brand's sourcing areas subject to the greatest environmental
risk related to one of the three key issues. The results obtained will enable the Brand to develop asourcing strategy that also takes these impacts into account and works to mitigate the associated risks.

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BRAVETOGETHER
77

B R AV E T O G E T H E RPeople are at the heart of the OTB Group Strategy and Brave Together is the pillar that defines theGroup's commitments to the material topics detailed below:• Responsible governance and ethical• Employee well-being, health and safetybusiness• Social impact Diversity, equity and inclusion• Attraction and loyalty

Every employee is valued as a unique individual and integral part of the “Only The Brave” family.
In 2023, the OTB Group drew up a new strategy for the management of its human resources – theBraves – whose goal is to create an environment that fosters professional growth by empowering
people’s unique and distinctive capabilities and encouraging talent through inclusion and diversity
policies and recognition of merit.
The new “2023-2025 People Strategy” is based on three macro-areas:
MACRO AREAS

Brave Leaders & Talents

Daring Organisation

The development of leaders
and talents to guide theGroup in achieving its growthambitions and guarantee
the organisation’s long-termsustainability.

The construction of anincreasingly agile and efficientorganisational model tofacilitate decision-making
and guarantee excellent,competitive operation.

• Support for diversity, equity
and inclusion• Leadership and managerial
upskilling• Employee engagement andinternal communication
programmes• Talent management,international mobility and job
rotation• Resource sharing, bestpractices, processes, tools,
initiatives and services, at
global level• Performance
management system• Employee branding andtalent attraction strategy

Brave Engagement &Development
The improvement of theemployee experience towards
a model of excellence that
supports people at all stagesof their professional life,
enhancing their uniqueness andstimulating their growth andpsychophysical well-being.

POLICIESANDPROGRAMMES• Competitive total reward
policies• Processes and testing of
new working models• Change management
programmes

These objectives are set out in a detailed action plan drawn up and launched during 2023. Effectiveness and progress will be regularly monitored through specific KPIs and measurement criteria.
The OTB Group leads and supervises the People Strategy, preserving the distinctive features ofeach Brand and providing ample room for independent decision-making at local level.
Consistently with its philosophy of flexibility and innovation, the Group continually tests new working methods by taking advantage of the possibilities opened up by technology, while ensuring its
people’s well-being.

1187.1 BR AV E E N G AG E M E N T & RES OURCE DEVELOPMENT
Diversity, equity and inclusion
The promotion of inclusivity, diversity and talent in the broadest sense within the organisation
continues to be one of the cornerstones of the OTB Group.
Since 2020, as part of the Diversity, Equity and Inclusion Strategy (DE&I), several projects havebeen launched, both at Corporate level and in the individual Group Companies, to spread a corporate culture that values diversity, fosters equity and inclusion and provides concrete support forthe business, implementing the policies necessary to achieve these goals.

In 2023, the OTB S.p.A. and Diesel S.p.A. companies obtained Gender Equality Certification(UNI/PdR 125:2022) under Italy's National Recovery and Resilience Plan (PNRR), after passing a
six-indicator assessment process conducted by a world-leading company in inspection, compliance verification and certification services. Specifically, the assessment focused on corporate
culture and strategy, governance, human resources processes, growth and inclusion opportunities for women, wage equality, and support for parenthood and the work-life balance. Mention
should be made of the crèche and kindergarten services that have been in operation for several
years, the smart working policies supporting employees’ work-life balance, as well as numerous
training courses and meetings for parents, unconscious bias, inclusive language and preventionof gender harassment in the workplace.

In conjunction with gender equality certification, a DE&I Committee was created at Group level toevaluate and approve initiatives in the Diversity, Equity and Inclusion macro areas. The Committee
members are the Group Chair, the Chief People & Organisation Officer (CP&OO), the Group Chief
Sustainability Officer (CSO) and the CEOs of the companies that head the Brands at central andregional level in the different areas of the world where the Group operates.
In addition, in 2023 the Group adopted a DE&I Policy, which specifies the principles, objectives andguidelines underpinning the Group's commitment to Diversity, Equity and Inclusion, and a Gender
Equality Policy designed to ensure a fair, safe and stimulating working environment for all employees, collaborators and partners. The Gender Equality Policy sets out the Group's principles andguidelines concerning working life in OTB, such as the selection and hiring procedure, the performance and talent management systems, training and development, pay and work-life balance, as
well as parenting issues and the prevention and reporting of harassment in the workplace.
Also during 2023, a 2023-2025 Strategic Plan focused on Gender Equality was drawn up. Besides
establishing objectives for the Group, the Plan sets specific targets for the companies that alreadyhave UNI/PdR125:2022 certification and for those that are starting the certification process. The
objectives and actions contained in the 2023-2025 Strategic Plan cover seven strategic areas:
governance, selection and hiring, professional growth management, wage equality, parenting andcare, work-life balance and abuse prevention activities.

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119Even at the level of the individual Brands, there
is no shortage of initiatives promoting diversity
and inclusion. One example is Diesel's collaboration with “The Community”, a multidisciplinary art institution, and the “Tom of Finland
Foundation”, a non-profit organisation that
promotes inclusiveness and acceptance ofdiversity. The Tom of Finland Foundation wasestablished to conserve and promote the workof Tom of Finland and many other queer artists
in the LGBTQIA+ community who have been
victims of discrimination and often forced towork anonymously. Continuing on from the two
exhibitions held in 2022, one in Venice and one
in Paris, and the special capsule collection, in
2023 Diesel supported “The All Together Clubhouse” exhibition held in New York in March.

Also in 2023, the New York head offices of
the Brands in the OTB North America Region
jointly celebrated Pride with various events,and for International Women's Day organised arange of activities with the Women for WomenInternational association and invited guest
speakers.
Gender parity in OTB
In 2023, the OTB Group recorded an overall
9.5% increase in its workforce, to 6,751 employees.33 The growth of the workforce was
evenly distributed between men and women,
maintaining a 64.4% female presence in thevarious professional categories.

33. The number of employees does not include Diesel Fashion India Reliance Pvt. Ltd. as the precise figure was not available at thereporting date. This limitation also applies to the other HR data indicators in Chapter 7 and the annexes. See the GRI Content Index for
more details.

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Brave TogetherIn line with 2022, women in managerial positions34 remained at 53.9%, while women in the Professionals category accounted for 66.6%.

GENDEREMPLOYEES BY GENDER AND CATEGORY

64.4%

35.6%

31.8%

68.2%

Executive & Director

53.9%Manager

46.1%

66.6%

33.4%

Professional

Women

Men

Women

Men

The employee breakdown reflects the company's strategy of proximity to the customer: 56.7%
work in the Retail sector, as sales personnel, 42.4% handle administrative and strategic functions in
the head offices, while the remaining 0.9% are in charge of showroom management. This distribution ensures effective coordination between communication and business operations, while maintaining direct contact with customers.

EMPLOYEES BY GENDER AND DIVISION

83.1%
16.9%

Showroom

64.0%

36.0%

Head Office

64.5%

35.5%

Store
Women

Men

In this crucial phase of the Group's development, OTB has confirmed its commitment to social
responsibility by entering into open-ended employment contracts with 83.7% of its staff. Only
about 0.4% of employees work on an on-call or hourly basis. Of the total, 85% of employees havefull-time contracts.
Compared to 2022, the number of non-employed workers decreased to 205 in 2023. They include
8 directors of companies based outside Italy and 109 temporary agency workers.

34. OTB’s employees are classified according to the internal job grading system, which adopts the “International Position Evaluation”
system (IPE) developed by Mercer. Employees are divided into three categories: “Executives & Directors”, “Managers” and“Professionals”. “Executives & Directors” includes all the Executive and Senior employees. “Managers” comprise all Master and Expert
collaborators. “Professionals” are tasked with specific operational responsibilities and/or duties assigned by Managers.

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Diversity and uniqueness in OTB
Confirming the close relationship with local communities, Group and Brand employees worldwide
are evenly distributed, even though the head offices of the Group Brands and Hubs are located in
Italy (35.3%).
After Italy, Japan is the second-largest area with 24.4% of total employees, followed by the rest ofEurope with 17.9%. The remaining employees are in the APAC region, America and India.

EMPLOYEES BY GEOGRAPHICAL AREA

7.5 % America
14.9% APAC (excluding Japan)
17.9% Europe (excluding Italy)
24.4% Japan
35.3% Italy
In addition, OTB guarantees ensures equal access to employment by providing opportunities forworkers with disabilities. In 2023, the Group employed 125 people from vulnerable groups, an increase of 23.8% compared to 2022.
Another important dataset refers to the generation-based distribution of personnel. To maintainan optimal balance between innovation and experience, again in 2023, 34.6% of the workforce
were employees under 30, 53.3% belonged to the 31-49 age group, and the remaining 12.1% classified as over 50.

EMPLOYEES BY AGE GROUP

30-39
32.3%

18-29
34.2%

40-49
21.2%

50-59
10.3%
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2.0%

Brave Together

The presence of an appropriate mix of experience and innovation is ensured by a balanced distribution of employees by length of service/employment, an indicator that also applies to internalretention. On one hand, 66.4% of employees joined the Group in the last 5 years, on the other hand
20.6% have been with OTB for more than 10 years.

EMPLOYEES BY LENGTH OF SERVICE

0.7% More than 31 years
5.2% 21 to 30 years
14.7% 11 to 20 years

66.4% Up to 5 years

13.0% 6 to 10 years

Employee engagement and communication
Employee engagement is a fundamental aspect of human resources management, a catalyst for
innovation, courage and effectiveness, contributing positively to the social impact of the company.
In the fourth quarter of 2023, the Group conducted its first engagement survey to assess employee satisfaction and well-being by identifying strengths and areas that require improvement. The
results, which will be shared in the first quarter of 2024, will drive actions to improve employees’
experience and promote a positive work environment. During 2023, Diesel introduced a podcast
of interviews with top management, allowing employees to learn about the activities and commitment of each function in contributing to the success of the Brand. Communication, listening andcontinuous engagement of the employees (the Braves) are equally important factors in achieving
high levels of commitment and satisfaction, together with a detailed understanding of the organisation’s objectives as they relate to each individual’s role. To this end, OTB has developed an internal communication plan of events, initiatives and digital tools such as the “People Hub” intranet tocreate opportunities for global sharing and participation.
Performance management: the importance of developing a feedback culture
The OTB Group attaches great importance to sharing feedback as a way of boosting the value ofhuman capital and increasing transparency in everyday relations and activities. In 2021, it rolled out
a new tool, People Development, which has introduced a Continuous Feedback approach in all
Group companies at global level.

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The Continuous Feedback process takes aholistic approach based on four vital principles– simplification, engagement, observation andcaring – to achieve on-going dynamic alignment on current activities, so providing a flexible means of interaction for people to shareand plan their professional growth.
The system uses a platform to organise structured sessions for employees and managers
to exchange feedback and opinions on a quarterly basis.
In the second half of 2023, the Group began
a review of the performance management system, with the launch scheduled forearly 2024. The new system will incorporate
advanced monitoring and analysis procedures
to mitigate possible gender bias and will introduce an ESG indicator in the performance
scorecards, impacting the annual MBO incentives for all Group beneficiaries.

Pay consists of a fixed salary, and a variable
component based on various types of bonus.
The Group's managerial population at global
level benefits from a Management By Objectives (MBO) system, i.e., an incentive linked tocompany results and specific indicators, identified according to the position and organisational scope of reference. The incentive structure is the same for all Group beneficiaries.
The corporate population that is not coveredby an MBO system benefits from other typesof bonus according to local market practices, while store personnel are involved incommission schemes depending on their rolein the store.
OTB also provides a variable Long-Term
Incentive (LTI) for top management. The LTI
arrangements were reviewed in 2022 to realignthe model criteria and structure with best
market and peer practices.

The remuneration system
OTB adopts a transparent remuneration system, which is designed to provide acompetitive pay structure and incentivise
employees to achieve excellent results, and is
free of gender distinctions or any other potentially discriminatory factor.

124

2023 Sustainability Report

Brave TogetherIn line with the principles of merit and equity, the Group conducts an annual pay review.
Employee pay reviews follow the guidelines of
the People & Organisation Department, taking
account of performance, results achieved,
proven leadership capabilities and market
benchmarks.
The annual pay review process includes gender
pay gap analysis and measures to check forgender bias or discrimination in the planningof pay increases. The ratio between men andwomen’s pay has made positive progress,

reflecting the Group’s work on gender equity,with the goal of achieving further improvements in the indicators in the coming years.
Confirming the virtuous practices introduced by the Group, the gender pay gap has
narrowed along the entire organisational chain,with a particular improvement in the Professionals category (+3 p.p. on both total remuneration compared to 2022 and basic salarycompared to 2022).

95,0%BASIC SALARY RATIO WOMEN/MEN IN 2023
Executive & Directors

93,0%
95,0%

Managers
Executive & Directors

95,7%
93,0%

Professionals
Managers

95,7%

Professionals

REMUNERATION RATIO WOMEN/MEN IN 2023

Executive & Directors

81,9%Managers
Executive & Directors

91,1%
81,9%
94,9%
91,1%

Professionals
Managers

94,9%Professionals

For reasons of confidentiality, the above metrics are not disclosed. Since the Group or its subsidiaries are not publicly traded companies and therefore not required to disclose their remunerationand fee policy for directors and senior managers, no information is published that could indicate
the remuneration of specific individuals.
In any case, the Group continues internal monitoring of the indicators in question, for information
purposes, to analyse internal equity and conduct peer comparisons.

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1257.2 B RAV E L E A D E RS & TALENTS
The training system
The OTB Group recognises the crucial importance of training for the professional development of
employees. These elements are regarded as fundamental pillars to ensure the organisation's longterm growth and success, as well as to foster the achievement of the Group's strategic objectives
and promote a dynamic working environment, capable of adapting to the evolving fashion industry.
The OTB Group's commitment to training is reflected in the rise in investments over the past two
years (with an increase of 21,321 training hours provided compared to 2021), in order to createa more effective and efficient learning system. The system includes a wide range of innovative
courses and communication and leadership tools for all employees, designed to foster flexible andstimulating learning.
The Group's training offer consists of online courses, accessible both on-site and remotely, thanks
to the Group's digital Learning Management System, as well as live, in-person or webinar learningand discussion initiatives, to promote a culture of continuous learning and flexible, inclusive anddiversified forms of training.
During 2023, in addition to the investment in managerial, technical-professional and language
training programmes , the Group paid special attention to raising awareness of Diversity, Equity
and Inclusion (DE&I) issues, providing more than 2,000 hours of training on these topics. Amongthe most innovative initiatives were courses for parents and new parents, as well as modules on“Inclusive Language” , “Unconscious Bias” and the prevention of gender harassment in the workplace to foster a working environment based on respect, a sense of belonging, freedom of expression and psychological safety.
Another highlight was the organisation of training and social awareness events for employees incooperation with the OTB Foundation. Significant events included the “Never Again” initiative, forthe prevention of gender-based violence , and the “Disability and Work: New Perspectives” event,which highlighted the importance and positive impact of disability inclusion in the workplace.
The graph shows training hours by category, for a total of approximately 49,000 hours. Professional and technical training accounted for 67.7% of total hours, followed by management training(16.0%) and health and safety training (7.5%). Language training (5.7%) more than doubled compared to the previous year.

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PERCENTAGE OF TRAINING HOURS BY TOPIC

1.9%
Language training 5.7%
Privacy and security

7.5%

Health and safety training

1.2%

Code of Ethics andcompliance with Lgs.Decree.
231/2001

67.7%

16.0%

Professional and technical training

Management training

Vertical Training: Diesel For Responsible Living & Celebrate Individuality
In 2023, Diesel continued activities associated with the Celebrate Individuality pillar of its Sustainability Strategy, by organising specific training to inform employees about the sustainability content
of its collections and explain how to communicate this content through the different channels.
Training sessions were held during the presentations of the new collections, and meetings wereorganised for all store managers in Europe. Work is underway to extend the initiative to the otherareas of the world where Diesel operates during 2024. The ultimate goal is to raise the awareness ofthe sales force and provide them with the necessary skills to handle sustainability issues effectively, turning them into important product features that they can discuss with confidence. To this end,
Diesel's sustainability department, in collaboration with the HR team, is also working to developinteractive tools and modules for educational and refresher purposes. These will be made accessible to all store employees via D-velop, the new internal communication platform.

Marni, Sustainability time
As part of a wider “Sustainable time” initiative, Marni has introduced an innovative work time
management model to enable people to compress or expand their working day. Sustainable time,in its various forms, helps workers integrate work time into their daily lives, giving Marni a competitive positioning on the jobs market and also helping to reduce gender differences. Personalised
time management tailored to specific routines helps people combine their personal and organisational needs, and also simplifies completion of administrative tasks.

Staff International sustainability
Awareness of the impact of the fashion business supply chain on the environment and workers’
conditions can be an important starting point for the transition to sustainable models.

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127Based on this idea, monthly newsletters on the topic of sustainability were distributed to Staff International employees from March to December 2023. The project, developed by Staff Academy incooperation with the sustainability team, covered topics such as the transition from conventional
products to items with a lower environmental impact, ESG aspects relating to the supply chain andthe environmental and social impacts of the fashion industry.
The purpose was to highlight the impacts behind day-by-day decisions and offer insights for new
development strategies, consistently with the OTB Group's objectives and values.

Talent attraction and retention
The Group’s ability to attract and retain new talents plays a crucial role in its 2023-2025 People
Strategy. Because it constantly strives for excellence, OTB is always looking for individuals with
distinctive qualities and robust technical skills such as critical thinking, customer centricity, experimentation, collaboration, entrepreneurial approach and execution ability.
To ensure effective management of the hiring process at global level, the Group deploys an internal policy that outlines the key stages of the recruitment process and is supported by a global
digital recruiting platform.
The process consists of six steps, from advertising of job vacancies to onboarding of new talents.
Hiring for professional positions is managed at local level, while specific managerial and executive
profiles are selected and discussed with the central team to ensure alignment with OTB’s values
and corporate identity. Given the Group's growth in the last few years, potential candidates aremonitored and assessed according to the needs of the individual professional areas. During theonboarding stage, the values, approach and mission of the Group, as well as policies, processes
and other information useful in daily business life are conveyed to the new employee.

Turnover 35
Given the competitiveness and dynamism of the fashion luxury sector, voluntary negative turnover36 in 2023 was 26.3%, with store employees (36.9%) accounting for a larger proportion than
Head Office employees (12.4%).
The Group hired 2,456 employees, reflecting significant growth mainly due to acquisitions, newbranches and store openings. The total figure consists of 926 men and 1,530 women, who represented 62.1% of the new hires. As a result of this growth, positive turnover37 stood at around 46.8%.
Job vacancies are also publicised internally through a centralised job posting system, as a meansof promoting internal growth, investing in the potential of OTB employees and raising the retention rate.

35. Total contract movement considers all incoming and outgoing contracts for each legal entity, excluding intercompany transfers(which are neutral at Group level) and on-call contracts. The number of incoming contracts includes employees of the Frassineti
company, which was acquired in 2023.
36. Negative turnover is calculated as the ratio of total voluntary resignations (1,413 in stores and 362 in head offices) to the number of
employees at the end of the year (6,751).
37. Positive turnover is calculated as the proportion of employees who joined during 2023 to the total number of employees at 31
December 2023.

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Relations with the academic world and support for young talent
The OTB Group maintains relations with academic and educational institutions, such as universities and professional institutes, and is involved in the organisation of numerous Career Days andjob fairs to make contact with the new generations and new talent.
During 2023, OTB opened the doors of its head office to visits by classes of students, to give themthe opportunity to see for themselves what life is like in the company and its departments. OTB
also took part in Digital Diversity Week: an innovative and entirely digital event created throughthe partnership between Jobmetoo by Seltis Hub and Start Hub Consulting to facilitate meetings
between companies and candidates with disabilities or from protected categories.
OTB also collaborates with universities and vocational institutes in providing courses dedicatedto the fashion textile industry, for the purpose of attracting specialised stylists and technicians.
During 2023, the Group offered 39 internships at its headquarters, bringing the total to 88.
The first edition of the IT Academy was held, to train and attract technology experts to manage
the main application components of the fashion industry's ICT architecture. The training consistedof face-to-face and on-site sessions over a period of six months.
OTB also supports international competitions such as the ANDAM Award, which provides financial support and mentoring to young designers from emerging Brands and start-ups, and the Yu
Prize. The Yu Prize is an award for the most promising and pioneering talents in the Chinese fashion industry, founded by Wendy Yu in 2020 in cooperation with Shanghai Fashion Week and the
Fédération de la Haute Couture et de la Mode (FHCM). In the latest editions, OTB offered mentoring and coaching programmes to selected talents. The Group Chair, Renzo Rosso, and the Diesel
Sustainability Ambassador, Andrea Rosso, were members of the jury.

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In 2023, for the twentieth consecutive year,
OTB was one of the main sponsors of the International Talent Support (ITS) competition in
Trieste, where it presented the OTB Award. The
winner received a cash prize and the opportunity to make contact with the Group Brands toassess possible career opportunities.
The Group is also a jury member of Milano
Moda Graduate, a fashion show organised by
the Italian National Chamber of Fashion, where
young designers fresh out of Italian schools are
given the opportunity to present the collections designed during their school years andbecome acquainted with the industry. Other
events include participation in Fashion Graduate Italia, organised annually to present thebest candidates from fashion schools.

There were also further opportunities to meetand illustrate Diesel's For Responsible Living
strategy, at the Vicenza campus of the University of Verona, the Bocconi University and the
IULM. The Brand Sustainability Ambassador,
Andrea Rosso, described the creation andevolution of the Brand's Sustainability Strategy
and discussed the challenges and opportunities that ESG issues pose to the fashion industry on a daily basis.

The individual Group companies also cultivate
relations with the academic and educational world.
As in previous years, Staff International continued its active collaboration with the ITS
Cosmo institute, specifically with the Fashion
Sustainability course, to promote the placement of young trainees for skills development,
professional growth and cooperation with local
training institutions.

130

Meanwhile, Diesel continued collaboration
with Italian and foreign universities, including
an important training project with the Luigi
Bocconi University as part of the “Innovation
and Design Thinking” course, on which, with
Diesel's support, students developed projectwork relating to sustainability and Web3 &Metaverse issues.

Preserving craftsmanshipThe fashion industry embodies the excellenceof Made in Italy, representing quality, innovation and, above all, craftsmanship. The OTBGroup supports the Italian fashion industry
supply chain and its artisans, and promotes thecreativity of new talents and designers, creating new growth opportunities through support
for training, innovation and technologicaltransformation.

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Project M.A.D.E.: Made in Italy, Made
Perfectly
In 2023, the Group presented its M.A.D.E.:
Made in Italy, Made Perfectly campaign at the
Ministry of Enterprise and Made in Italy (MIMIT)in Rome.
Rooted in the Group's core values, the M.A.D.E.
campaign, an acronym for Manual Dexterity,
Artisanal Skill, Dedication and Excellence, isan initiative dedicated to promoting and giving
visibility to those who create “Made in Italy”
and make it unique globally. It is a tribute to theskills and stories of people who, often working
behind the scenes, play a fundamental role inthe creation of Italian excellence and quality,and deserve the spotlight. The campaign was
launched to amplify the voice of the Group's
suppliers and honour the strong ties that havebeen built up with them over the years.
Scuola dei Mestieri - Staff Academy
The Staff Academy “Scuola dei Mestieri”, which
held its third edition in 2023, is a Staff International project to preserve and pass down morethan 40 years of savoir-faire culture and tradition, with an innovative approach that takes
account of the new industry 4.0 skills and agileorganisational models.
The programme is intended for recent graduates from technical institutes, specialised
training courses and university courses in the
fashion industry from all over Italy. The mosttalented students are selected as participants
on a practical internship programme, where
they can become “Fashion Makers 4.0” under
the guidance of Staff International experts.
The training course is designed for young
talents who wish to develop specific skills forthe roles of Junior Prototypist, Prototypist
Ironer and Prototypist Cutter.

2023 Sustainability Report

It includes training sessions conducted bylecturers selected from among the key Staff
International business functions. Since 2022,
the programme has included a lecturer in
Sustainability, who deals with circular economy principles and teaches product designusing unsold goods or left-over clothes,presenting projects by Staff International andthe OTB Group.
Since the project began in 2021, almost 80%of the students have gone on to work with thetailoring and prototyping workshops of theOTB Group and Staff International.
In 2023, the School was one of the finalists inthe “Craftsmanship” category of the “Fashion
Sustainable Awards” for its mission, commitment and achievements. The Fashion Sustainable Awards are a prestigious annual event
established by the Italian National Chamber ofFashion (CNMI) to highlight the achievements
and efforts of Italian and international designers and brands in promoting the growth of amore ethical and circular fashion industry.
Staff International x ApritiModa
In 2023, Staff International took part in Apritimoda, the annual national event that introduces the public to the places where Made in Italy
comes to life. On this occasion, the company
opened the doors of its Noventa Vicentina site
to offer a unique opportunity to explore at firsthand some of the product creation stages of
the Group's main Brands, including Maison
Margiela, Marni and Jil Sander. The visit included a guided tour of the premises for a closeup look at the different stages of production,
including modelling and prototyping, the product offices, tailoring and a stop at the garment
sustainability showroom.

Brave Together

1317.3 P E O PL E CA RE
In the OTB Group, employee welfare is a key asset to improve the quality of work and have a positive impact on the lives of OTB's employees, who have access to a wide and expanding range ofservices.
OTB has a Hospitality function that, in addition to providing organisational support, manages anumber of internal key services that contribute to a positive workplace atmosphere, including thecoordination of reception units and all hospitality services for internal and external stakeholders.
The purpose of the Hospitality function is to guarantee a high level of user satisfaction with services such as corporate catering, the gym and wellness centre, the nursery and kindergarten, andother ancillary services such as management of common areas like meeting rooms, break areas
and workplaces in general.
The following services are provided for OTB employees in the main Italian locations:Company Canteens
In Breganze, where Diesel and OTB are based,
and the two Staff International sites in Colceresa and Noventa Vicentina, OTB offers acanteen service with a broad selection of food,as well as the possibility to book a lunch box or
takeaway.
Food Recovery Program
Since 2016 , OTB has run a programme tocollect and donate food surpluses from thecompany canteens in order to reduce foodwaste. Thanks to the OTB Foundation’s close
collaboration with local associations, excess
food is collected from the canteens on a weekly basis and donated to people in need.
Brave Gym and Brave Beauty
Since 2011, employees have been able to use
the Brave Gym at OTB headquarters, which is
run in cooperation with a leading company inthe sector. The gym offers a workout room withfitness equipment and a weekly group exercise
programme with specialist trainers, for activities including tone, balance, yoga and spinbiking. Users also access to indoor basketball, volleyball and squash courts and outdoor
tennis courts and five-a-side football pitches.

1322023 Sustainability Report

These spaces are frequently used to organisecompany tournaments throughout the year,
promoting team-building activities. Thereis also an osteopathy service and a beauty
area (Brave Beauty) offering treatments at
favourable prices.
Brave Garden
In 2010, the Breganze headquarters opened
the Brave Garden nursery and kindergarten
for employees’ children, to help with the worklife balance. The facility is run by an accredited specialist cooperative approved by the
Regional Authority. It was designed and built
following an innovative architectural project
to meet children’s growth and social needs.
The centre welcomes up to 50 children from0 to 6 years old. Amenities include a parkand a small vegetable garden where the kids
immerse themselves in natural surroundings. In
the kindergarten, new technologies are widely used to improve the children's knowledge
through digital and multimedia tools. The Brave
Garden also offers various meeting opportunities for to families to support parenting.

Brave Together

Wash My Car
The Breganze and Noventa Vicentina sites
assist employees by providing a pay-for car
valeting service, with pick-up and return during
the day.
SpesaBio
In 2022, the Staff International location in
Noventa Vicentina launched the SpesaBio service, for online purchases of organic
seasonal products grown by a local social farmthat uses responsible methods and respects
biodiversity.
Laundry Service
Through an agreement with a local laundry, theStaff International location in Noventa Vicentina and the Brave Kid location in Marostica
offer employees a subsidised washing andironing service.
Tax Assistance
Since 2013, a low-cost Tax Assistance service
has been available at OTB Group offices, where
tax returns can be completed.
Assistance fund and pension fund
The Group's Italian companies are membersof Sanimoda, the supplementary healthcare
fund for workers in the fashion industry. The
fund provides healthcare services complementing those of the National Health System,
thus guaranteeing greater protection for its
employees. In addition, the Group's Italiancompanies belong to the Previmoda fashion
sector pension fund, to strengthen the pension
position of its employees.

2023 Sustainability Report

Breast screening
The OTB Group promotes prevention andsupport for its employees by offering, since2022 (although currently not on an annual
basis), free access to check-ups for the early
diagnosis of breast cancer, with ultrasoundand mammography as required.
The examinations take place in a mobile clinic equipped with specialised instruments,
which travels to the Group's Italian sites. The
service is run in collaboration with companies
that specialise in providing integrated homehealthcare services.

Check-ups
In 2023, the OTB Group continued its agreement with the Centro Diagnostico Italiano(CDI) in Milan, a prevention-oriented outpatient healthcare facility that has been in operation for over 35 years. The agreement entitles
employees and their families to have comprehensive check-ups at favourable conditions.
The Group has set up a procedure on the
People Hub corporate portal to help people
start up a prevention plan.

Brave Together

1337.4 E M P LOY E E S HE ALT H AND S AF ET Y
OTB is committed to providing a safe andhealthy working environment conducive to thewell-being of employees, and extends this to
everyone who interacts with the Group.
Its commitment takes the form of a detailed
HSE risk identification and assessment
process in order to formulate a risk management action plan, based on continuous monitoring and improvement of employee andstakeholder health and safety. OTB actively
promotes constructive workplace dialogue
and risk reporting by providing all employeeswith a dedicated network for the proactive
handling of reports and non-conformities,
managed by the HSE Function.
The HSE Function oversees and manages
health and safety activities and constantly monitors compliance with standards, also
defining policies and procedures within theGroup. Starting in 2022, OTB has set up several
activities with key management functions topromote a health and safety culture. Throughorganised workshops, the managers worked
together to create a vision in this direction,
promoting the importance of prevention andactively involving the functions in the definitionof clear and structured policies.

OTB implements a Group Health and Safety
Policy which establishes principles to protect
employees from workplace hazards andpersonal injuries. These standards are set out
in the Global Compliance Programme. All theGroup legal entities are required to consider worker safety at every stage of their business activities and to take the necessary
measures to protect their physical and moral
integrity, including a plan for auditing external
contractors.
To ensure high health and safety standards,
OTB refers to the UNI ISO 45001:2018 standard, adapting the management system tomeet local requirements. In 2023, as part of theGroup restructuring, OTB continued work to
obtain third-party certification for its management system.
During 2023, 100%38 of Group employees in
Europe benefited from a centralised occupational health and safety management system.
Of the total, 65.6% of workers, including all
employees in the Italian area, are coveredby an internally audited health and safety
management system. In addition, dependingon local and country regulations, each company designates employee representatives, who
are usually internal figures.
In order to monitor the state of health andsafety, the HSE Function submits a semi-annual report to the Board of Directors and theSupervisory Board. This transparent approachhighlights shortcomings, enabling corrective
or preventive action to be taken.

38. Coordination and cooperation between the Employer and the Contractor, considering the health and safety costs envisaged bycurrent legislation. The following worker categories are considered: Group employees, interns and workers with on-call contracts.
The figure refers to all companies in the European perimeter, except for the new acquisitions in 2023, whose data were not available atthe reporting date.

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Brave Together

Since 2022, the HSE Function has employedan HSE Compliance Index, which monitors andquantifies the compliance and effectivenessof the actions taken, guiding future activities
and serving as an internal communication tool.
A range of activities are carried out regularly atGroup level, including:• risk assessments and regular audits forevery site in Europe covering various issues,
from understanding of requirements toimplementation of improvement and monitoring plans;• mandatory checks on safety training (e.g.,training plan and activities, status of employee HSE training);• workplace conformity mapping, reviews of

emergency plans, sharing of action plans,
procedures, best practices, and cross-functional support to improve health and safety
performance;• regular medical check-ups in line withhealthcare protocols and monitoring of
deadlines;• support for new openings, site projects,

emergencies (e.g., the Covid-19 pandemic),site audits and implementation of the ISO
45001 management system.

2023 Sustainability Report

The Group promotes a strong occupationalsafety culture, raising employee awareness ofrisks and individual responsibilities.
To ensure adequate training, the Group isenhancing the existing courses in the Group
training plan, including those on managing
job-related risks and emergencies. In addition,
the Group is promoting activities for workers’ physical and mental well-being, including information on work-life balance, stressmanagement, sport, healthy eating and mindfulness courses.
Finally, the Group offers employees life insurance and facilitates access to health services,
including medical conventions, check-ups andlife and accident policies.
On the occasion of the 2023 World Day for
Safety and Health at Work, the Group organised the first Safety Day promoting a positive and preventive occupational health andsafety culture through courses, workshops
and emergency simulations. The initiative
addressed more than 2,100 employees in Italyat the headquarters of OTB, Diesel and Staff
International (and remotely for the rest of Italy)
and promoted first-aid courses, workshops
on tension management and occupational
well-being, and virtual-reality simulations ofemergency situations where employees could
develop their ability to react.

Brave Together

135During 2023, 43 accidents occurred during working hours out of the entire population39, of which
51.2% were commuting accidents. Accidents at work, 48.8%, were mainly due to accidental falls.
In 2023, the global occupational accident rate was 3.040. No accidents were classified as injuries
and no fatal accidents were reported. Furthermore, no work-related occupational diseases werediagnosed among employees during the year.
Industrial relations and trade unions
The Group recognises the importance of workers’ right to representation by trade unions andguarantees full support to enable workers to freely and responsibly exercise this right.
The Group's industrial relations policy is based on a constructive and collaborative approach with
employees and their representatives; regular meetings are held with company and territorial tradeunions to discuss issues delegated by national collective bargaining and explore consensual solutions and opportunities. In recent years, OTB has taken an active part in regular meetings anddebates with union representatives to examine health and safety issues and training. Specifically,
during 2023 the OTB Group organised a meeting with the national secretaries of the main workers' associations that are signatories to the national collective bargaining agreements adopted by
the Group, to discuss policies and initiatives in the areas of Sustainability and Diversity Equity &Inclusion.
Confirming the climate of cooperation, there have been no company strikes or trade union protests
in the last three years, and no cases of violation of freedom of association or impairment of collective bargaining.
In Italy, labour relations concerning OTB Group company employees are governed by national
collective bargaining agreements41, second-level bargaining and company policies. In the othercountries, employees are governed by local regulations, collective bargaining (where applicable) and company policies. Regulations cover contracts, remuneration, welfare and pension
contributions.

39. The companies in the North American Region were not included since their data were not available.
40. The index is obtained by comparing the number of accidents (which includes accidents in Italy, France, the companies in the APAC
Region, North America and Japan) to hours worked/1,000,000. Hours worked were calculated by estimating that employees work an
average of 260 days per year and 8 hours per day. At the moment, data on the number of accidents and hours worked are not available
for the other European companies and companies acquired in 2023.
41. Of the total number of employees, 43.4% are covered by national collective bargaining agreements, an increase of 20.3 percentage
points compared to 2022.

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Brave Together

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138

2023 Sustainability Report
2023 Sustainability Report﻿OTB FoundationOTB
FOUNDATION

8O T B F O U N D AT I O N

2023 Sustainability Report
2023 Sustainability Report8The OTB Foundation was set up in 2006 to fight social injustice and contribute to the sustainable
development of disadvantaged people and regions.
In line with the values of his family of origin and in the belief that it is the duty of every entrepreneur
to generate a positive impact for people, the environment and the territory, Renzo Rosso created the OTB Foundation for the purpose of giving value back to the community. The Foundation
ensures that the funds raised go directly to the final beneficiaries of the projects it supports, keeping administrative costs to a minimum thanks to a very lean structure that makes use of in-house
expertise when needed.
Another distinguishing feature of the OTB Foundation, which has emerged especially since
the arrival of vice-president Arianna Alessi, is the “profit” approach, not often adopted in the“non-profit” world. Besides making funds available to the operating partners on its projects, theorganisation often assists them in drawing up business plans and in implementing projects so thatthey can become self-financing over time, requiring timely and periodic reporting of the sums
received before proceeding with new funding tranches.
In addition to sustainability over time, two other key criteria considered by the OTB Foundation
when selecting initiatives are their direct social impact and the application of innovative solutions
to respond to the needs of people requiring assistance.
The four main areas of intervention are:• initiatives to support children and young people• projects that promote female empowerment and protect women who are victimsof violence, with a focus on prevention andthe promotion of an inclusive culture among
young people• associations that work for the integrationand protection of people whose fundamental rights have been abused• rapid intervention in emergency situations to
respond to urgent needs generated by crisis
situations
The common thread linking all OTB Foundation activities is the will to take prompt andconcrete action in emergency situations andto improve people's lives in a sustainable
manner by guaranteeing equal opportunities:
this sentence represents OTB Foundation’s
mission.

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2023 Sustainability ReportOTB Foundation

Since it began its operations, the OTB Foundation has invested in
more than 350 social development projects around the world andmade a significant contribution to improving the quality of life of
more than 350,000 people.
The OTB Foundation operates all over the world with the supportof small non-profit organisations that are highly specialised in
specific areas, large organisations like the UNHCR and Cesvi, andinternational and institutional bodies, building ties that are often
consolidated over time. In 2023, to support the local community,
the Foundation increased interventions and projects in Italy, which
accounted for 81.3% of total investments.
The graphic below shows the main stakeholder categories coveredby the work of the OTB Foundation.

THE MAIN BENEFICIARIES OF OTB FOUNDATION ACTIVITIES

34%
Women

3%

Other

15%

38%

Emergencies

Children and Young People

10%Integration

2023 Sustainability ReportOTB Foundation

141

ACTION AREAS

3.6%

13.6%

Healthcare

1.8%

Art and culture

Emergency aid

57.8%

Education andyoung people

23.2%

Social welfare

The action areas42 addressed by the projects supported during the year were education and young
people, which accounted for 57.8% of projects, social welfare for 23.2% and emergency aid forabout 13.6%. The remaining 5.4% was devoted to healthcare projects and initiatives to promoteart and culture.
The OTB Foundation operates mainly through donations. During the year, 67.0% of its contributions were disbursed in fundings, while the remaining 33.0% was used for the purchase of goods
and the coordination and payment of services, such as the purchase of kitchens for families in Forlì
in the wake of the Emilia Romagna’s regional emergency, and the payment of bills for work carriedout at the Gabelli School. In 2023, the Foundation increased spending on project funding by 12.1%
compared to previous year.

42. The action areas in the graphic were processed in line with the London Benchmarking Group (LBG) reporting model, which measuresthe value and impact of investments in the community. The LBG is internationally recognised and supported by the main sustainability
indices, such as the Dow Jones Sustainability Index, and it highlights the OTB Foundation's Corporate Social Investments (CSI) in eacharea of intervention.

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8.1 C H IL D RE N A N D
YOU N G P E O P L E
For the OTB Foundation, taking care of tomorrow's adults means investing in the future of
the whole community: this is why in 2023 there
were many new initiatives for children andyoung people, in Italy and abroad.
The first new collaboration project involved
the Agostiniani del Mondo Foundation, which,thanks to the support of the OTB Foundation,
was able to expand the services provided by
the Juvenat Centre in Dungu, in the Democratic Republic of Congo: this is a residential centre for the social and economic reintegrationof vulnerable children, especially former childsoldiers, most of whom are girls. In addition tohospitality, the centre offers the opportunity totake part in training courses in carpentry andIT, to help run a farm by rearing cattle, pigs andfish, and, through its collaboration with local
schools, reintegrating children to education.
The programme was extended to 200 young
people thanks to the contribution of the OTBFoundation, giving priority to former child soldiers and girls who are often excluded from thistype of activity.

In synergy with the Group strategy, the Foundation launched another important projectcalled Children Are Reading. This is a threeyear educational programme promoted by theFoundation in Bangladesh, together with localorganisations, involving the children of the employees of a Diesel supplier. Thanks to this initiative, an after-school service is guaranteedfor 100 children to support their education in acountry where literacy levels are very low. The
service was activated in proximity to the production sites to facilitate families' access tothe support centres.
The OTB Foundation also continued to support the orphanage in Kapisa, Afghanistan, run
by Nove Onlus, where more than 50 children
receive food, shelter, education and protection
from abuse in a country where 97% of the population lives below the poverty line.

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143

In Italy, projects for young people and children
included the renewal of the contribution to theBambino Gesù Hospital in Rome, thanks towhich a daily recreational service is provided
for 77 patients directly in the ward as well access to various workshops using cutting-edge
technology.
The Only The Brave Calls Alice service continued, where, thanks to the contribution of
the OTB Foundation, more than 1,000 hours of
free counselling have been provided to young
people between the ages of 12 and 25 since
the project began. This project will be repeated during 2024 to provide a concrete response
to mental health issues among the very young,a topic to which no proper attention has been
paid so far.
Prevention remains one of the cornerstonesof the Foundation's activities for young people: the prevention campaigns against gender-based violence, bullying, cyberbullying and addiction, carried out in secondary
schools nationwide and supported by the OTBFoundation continued this year. In 2023 alone,
more than 8,000 young people took part inmeetings organised with Fare x Bene ETS andthe San Patrignano community.

8. 2 WOMEN
Female empowerment is the second major pillar of OTB Foundation activities, which in 2023
included the expansion of the Brave WomenAwards, a scholarship programme designed
to facilitate access to faculties with a low female intake for girls with a good academic
record who qualify for financial assistance. After an initial year involving 8 female students
at the Bocconi University, starting with the2023/2024 academic year the target audienceaddressed by Foundation has been expanded
to cover students from all over the country:
thanks to collaborations with the LUISS, theUniversity of Bologna, the University of Padua
and the University of Venice, the project now
provides support for 56 girls.
Support for women who are victims of violence in the Veneto region also continued with
the Mai Più hotline, a 24/7 emergency service
offering legal and psychological counsellingand, in some cases, job placement. More than
178 women have received help since the startof the project.

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Alongside this service, the campaign on prevention of gender violence that the Foundation finances in schools all over Italy continued; the aim is to make the new generations aware of the issue andcreate a culture of respect, with meetings attended by experts and testimonials, such as Valentina
Pitzalis, who bring their experiences to youngsters. Mai Più is the name of the awareness-raising
campaign , which the Foundation finances in schools throughout Italy.
In 2023, the OTB Foundation began a collaboration with Children of Madagascar Tonga Soa, tosupport two family homes, in Maromandia and Ankaramibè, which host girls with limited financial
resources and without a stable family. The two facilities provide safe accommodation for 40 girls
between the ages of 9 and 19, who have the opportunity to attend school, including secondary
school, or to learn crafts, and receive healthcare that would normally be precluded to them.
The girls’ lack of family, financial and social security would expose them to enormous risks, including poverty and prostitution. The ultimate goal of the project is to make women independent, by
providing them with suitable tools and skills. Madagascar is one of the world’s poorest countries,
with more than 80% of the population living in extreme poverty and more than 40% suffering frommalnutrition.

2023 Sustainability ReportOTB Foundation

1458.3 I N T E G RAT I O NAnother focus for the OTB Foundation are integration projects, where the Foundation promotes
activities designed to foster social inclusion and job opportunities.
Job Clinic Online, a platform set up in February 2022 to match job supply and demand for immigrants, has now become fully operational, thanks to the continued support of the OTB Foundation:
currently, it manages more than one thousand active profiles. The service was improved by a new
hiring who is dedicated to developing contacts with companies and training candidates.
The solidarity emporium project was also strengthened in 2023. The network supported by the
OTB Foundation has expanded to cover five centres throughout Italy: the Solidarietà emporium in
Venice with Corte Del Forner, the Il Cedro emporium in Schio and the L'Olmo emporium in Thiene(both in Vicenza) with the Da Spreco a Risorsa voluntary organisation, the I Care emporium in
Viterbo with the Viterbo con Amore voluntary organisation, and the Il Sole emporium of the Reno
Lavino and Samoggia municipal union. More than 1,600 families are currently supported thanks tothese centres, which, besides distributing free food, also run ad hoc help desks to support families in all critical issues that contributed to their economic difficulty or social harship. Job placement, counselling services, distribution of second-hand clothes, after-school care for children andfinancial counselling are just some of the activities managed by the emporiums supported by theFoundation.

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8.4 E MERG E N C I E S
True to its mission to provide a prompt and concrete response in emergency situations, the OTBFoundation took immediate action to help the Turkish and Syrian populations affected by theearthquake in February 2023, through the UN High Commissioner of Refugees, consolidating theirlong-lasting collaboration on a diverse number of initiatives. The earthquake caused more than
50,000 confirmed victims. The UNHCR immediately mobilised its field operations to take humanitarian aid to the refugees and refugee camps in the two countries. In Syria, kits with emergency
goods including thermal blankets, mattresses, kitchen utensils, plastic tarpaulins, water canisters,
winter clothing and other basic necessities were distributed in Aleppo, Homs and Tartous, some of
the worst hit areas.
The Foundation also provided aid for the emergency in Emilia-Romagna, Italy, in May 2023: in linewith its philosophy of intervening in a targeted manner without intermediaries, it organised direct
support for the local residents. The aid focused specifically on the reconstruction of the homes
damaged by the floods, providing families with support to replace their kitchens.
People Care
The OTB Foundation also continues topromote and implement social sustainability
initiatives linked with the OTB Group strategy
and in cooperation with the Group companies.
Every month, used clothing is collected at theGroup locations and distributed by the Foundation to the organisations it supports. In thepast two years, more than 6,000 kg of clothes
have been donated to homes, solidarity emporiums and refugee centres all over Italy.

Computer equipment considered obsolete isrecovered and donated to schools or associations involved in the education of minors, while
cutting waste is donated to tailoring companies that employ migrants or people who aresocially vulnerable.

Another key sustainability initiative is the Food
Recovery Programme, which donates surplus
food produced in the company canteens toorganisations that support people and families
in need in the Veneto region, while combating food waste. Since the initiative began,some 36,000 meals have been recovered andalmost 4 tonnes of food have been donated.

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147

Awards
In 2023, the OTB Foundation received awards
from a number of national and internationalorganisations and associations in recognitionof its work over the years to help people in difficulties, respond to emergencies and organise philanthropic activities. The awards are an
additional confirmation of the importance of
the Foundation’s work and a reflection of its
public recognition.

We Welcome Award
The “ Welcome Award” given annually by the
UNHCR was given in 2023 to the Foundation and the companies involved in recruitment, Staff International, Diesel, OTB Spa andDiesel Farm, recognising their commitment
and success in integrating refugees into theworkplace.

Fashion Dresses PeaceOTB Chair Renzo Rosso and OTB Foundation
Vice President Arianna Alessi were honoured by
the African Fashion Gate for their outstanding
commitment to the Foundation and the valueof its projects, notably for the support of the
Ukrainian population. In giving the award, theassociation wanted to recognise two specificprojects supported by the OTB Foundation:
the assistance for Ukrainian refugees since thebeginning of the Russian-Ukrainian conflict,which has helped 7,000 people and provided
shelter in Italy for 440 refugees; and the Brave
Women Awards initiative, which has disbursed
EUR 550,000 to fund the university fees of 55
young women enrolled at Italian universities.

In addition, the OTB Foundation, which coordinates the job placements, was presented as
the promoting body, together with the companies involved in hiring personnel.

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149

150
150

2023 Sustainability Report
2023 Sustainability Report﻿Appendix

APPENDIX9APPENDIX

2023 Sustainability Report
2023 Sustainability Report99.1 M E T HO D O LO G I CAL NOT E
Reporting standards and reporting scopeThis document is the third Sustainability Report published by the OTB Group (also referred
to as “OTB”, “Group”). It details the initiatives
and projects organised to address challenges
relating to the environment, society, personnel
management, human rights, governance andanti-corruption, in order to provide stakeholders with a transparent and comprehensive
view of OTB’s strategies, operations, performance and results with regard to its economic
growth and business development.
The Sustainability Report has been draftedin accordance with the “In Accordance” option of the Sustainability Reporting Standards
published by the Global Reporting Initiative GRI 2021, the most widely used international
standards for reporting non-financial information. To help the reader, an index of the GRI
contents, indicating the location of the information in the Report, has been included withthe page references.
The issues covered by the Sustainability Report reflect the results of the materiality analysis conducted in 2023 and approved by the
OTB Board of Directors in December 2023.
In particular, the “Impact Materiality” analysis, described in chapter 2.5 “The Materiality
Analysis Process”, was conducted following
the guidelines set out in “GRI 3: Material Topics” and the indications of the European Sustainability Reporting Standards (ESRS).

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The reporting scope includes OTB S.p.A. andits subsidiaries consolidated on a line-by-line
basis in the annual financial statements. It does
not include the companies consolidated using
the equity method. For the list of Legal Entities
included in the reporting scope, see the Consolidated Financial Statements, see the OTBGroup website (www.otb.net). The Report also
includes a chapter on the OTB Foundation, toprovide an accurate overview of the Group's
philanthropic activities. Any scope limitations
are clearly indicated, often with a footnote
and/or in the GRI Content Index.
The Sustainability Report refers to the 2023 financial year and covers the same time period
as the Annual Report, from 1 January 2023 to
31 December 2023. For comparative purposes, data for the financial years 2021 and 2022
have been included where available. Where
prior-year data are restated, this is explicitly
indicated in the Report and also highlighted in
the GRI Content Index. Specifically, the 2022
data on Scope 3 emissions generated differ
from the data published in the previous Sustainability Report. The full implementation of
the reporting system for all the legal entities
has made it possible to fine-tune and optimise
data collection.
The principles used to define the contents inthis Report reflect those indicated by the GRI
Standards and are set out below:

Appendix• significance;• comparability;• inclusivity;• accuracy;• sustainability context;• timeliness;• completeness;• reliability;• balance between positive
and negative aspects;• clarity.

The designated party approved to conduct the limited assurance of this Sustainability Report isPricewaterhouseCoopers Business Services Srl, which, in a specific separate report, has provided an attestation on the conformity of the information provided in accordance with the ISAE
3000 Revised principle. The limited assurance was conducted using the procedures indicated in
the “Report of the Independent Auditor”, which is included in this document.

Reporting process
The preparation of the Sustainability Report involved all the corporate functions responsible forthe topics covered, coordinated by the Corporate Sustainability Department. As with the previous
Sustainability Reports, once the areas and topics to be covered are been established, the data
owners and the data approvers were designated for each corporate function. Each Group company is responsible for the data and information published in the Group Sustainability Report. The
data and information were collected through quantitative and qualitative forms, taking account of
the requirements of the GRI Standards.
The OTB Group 2023 Sustainability Report has been approved by the Board of Directors and published on the Group corporate website.

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Appendix153

9.2 P E RF O RM A N C E DATA AND INDICATORS
Retail and head office employees (no.)
u.m.

2021

2022

2023

men

women

Total

men

women

Total

men

women

Total

Retail

no.

1,184

2,129

3,313

1,193

2,231

3,424

1,360

2,469

3,829

Head Office

no.

965

1,664

2,629

997

1,743

2,740

1,032

1,831

2,863

Showroom

no.

-

-

-

-

-

-

10

49

59

Total

no.

2,149

3,793

5,942

2,190

3,974

6,164

2,402

4,349

6,751

of which in creative
roles

no.

-

-

-

89

319

408

103

329

432

Employees by area and gender (no.)
u.m.

2021

2022

2023

men

women

Total

men

women

Total

men

women

Total

Italy

no.

761

1,444

2,205

747

1,425

2,172

816

1,565

2,381

Japan

no.

609

995

1,604

543

1,017

1,560

606

1,042

1,648

Europe (excl. Italy) no.

470

740

1,210

470

726

1,196

455

755

1,210

APAC

no.

130

430

560

238

592

830

276

710

986

America

no.

179

184

363

192

214

406

230

275

505

India

no.

-

-

-

19

2

21

Total

no.

2,190

3,974

6,164

2,402

4,349

6,751

2,149

3,793

5,942

Employees by contract and gender (no.)
u.m.

154

2021

2022

2023

men

women

Total

men

women

Total

men

women

Total

Open-ended
contract

no.

2,010

3,488

5,498

1,933

3,379

5,312

2,048

3,605

5,653

Fixed-term
contract

no.

139

305

444

255

570

825

353

717

1,070

On-call
employees

no.

-

2

25

27

1

27

28

Total

no.

5,942

2,190

3,974

6,164

2,402

4,349

6,751

2023 Sustainability Report

2,149

3,793

AppendixEmployees by contract, gender and geographical area (no.)
u.m.

2021

2022

2023

men

women

Total

men

women

Total

men

women

Total

Italy

no.

761

1,444

2,205

747

1,425

2,172

816

1,565

2,381

Fixed-term
contract

no.

725

1,311

2,036

693

1,319

2,012

736

1,402

2,138

Fixed-term
contract

no.

36

133

169

52

81

133

79

136

215

On-call employees

no.

-

-

-

2

25

27

1

27

28

Europe (excluding Italy)

no.

470

740

1,210

470

726

1,196

455

755

1,210

Fixed-term
contract

no.

391

622

1,013

417

617

1,034

386

635

1,021

Fixed-term
contract

no.

79

118

197

53

109

162

69

120

189

On-call employees

no.

-

-

-

-

-

-

-

-

-

America

no.

179

184

363

192

214

406

230

275

505

Fixed-term
contract

no.

179

184

363

191

214

405

224

264

488

Fixed-term
contract

no.

-

-

-

1

-

1

6

11

17

On-call employees

no.

-

-

-

-

-

-

-

-

-

APAC

no.

130

430

560

238

592

830

276

710

986

Fixed-term
contract

no.

119

397

516

90

216

306

77

264

341

Fixed-term
contract

no.

11

33

44

148

376

524

199

446

645

On-call employees

no.

-

-

-

-

-

-

-

-

-

Japan

no.

609

995

1,604

543

1,017

1,560

606

1,042

1,648

Fixed-term
contract

no.

596

974

1,570

542

1,013

1,555

606

1,038

1,644

Fixed-term
contract

no.

13

21

34

1

4

5

-

4

4

On-call employees

no.

-

-

-

-

-

-

-

-

-

India

no.

-

-

-

-

-

-

19

2

21

Fixed-term
contract

no.

-

-

-

-

19

2

21

Fixed-term
contract

no.

-

-

-

-

-

-

-

On-call employees

no.

-

-

-

-

-

-

-

Total

no.

5,942

2,190

3,974

6,164

2,402

4,349

6,751

2023 Sustainability Report

2,149

3,793

Appendix155

Employees by employment type and gender (no.)
2021

u.m.

2022

men

women

Total

men

women

Total

men

women

Total

Full-time

no.

1,889

3,200

5,089

1,932

3,332

5,264

2,103

3,634

5,737

Part-time

no.

267

586

853

258

642

900

299

715

1,014

Total

no.

2,156

3,786

5,942

2,190

3,974

6,164

2,402

4,349

6,751

u.m.

2021

2022

2023

men

women

Total

men

women

Total

men

women

Total

54

26

80

54

25

79

58

27

85

18-29

-

-

-

0

0

0

0

0

0

30-39

22

14

36

22

9

31

3

2

5

19

9

28

26

12

38

10

4

14

Executives &Directors

no.

40-49
50-59

32

12

44

32

16

48

>=60
Managers

431

462

893

422

475

897

416

486

902

18-29

4

17

21

15

23

38

9

18

27

30-39

291

329

620

272

355

627

107

197

304

166

173

339

114

88

202

20

10

30

40-49
50-59

136

116

252

135

97

232

>=60
Professionals

1,664

3,305

4,969

1,714

3,474

5,188

1,928

3,836

5,764

18-29

640

1,139

1,779

741

1,357

2,098

839

1,468

2,307

30-39

865

1,854

2,719

807

1,780

2,587

596

1,272

1,868

325

731

1,056

139

312

451

29

53

82

40-49
50-59

159

312

471

166

337

503

>=60
Total

2,149

3,793

5,942

2,190

3,974

6,164

2,402

4,349

6,751

18-29

644

1,156

1,800

756

1,380

2,136

848

1,486

2,334

30-39

1,178

2,197

3,375

1,101

2,144

3,245

706

1,471

2,177

510

913

1,423

279

412

691

59

67

126

40-49
50-59

327

440

767

333

>=60

156

2023

2023 Sustainability Report

Appendix

450

783

Workers who are not employees (no.)
u.m.

2021
men

women

2022

2023

Total

men

women

Total

men

women

Total

4

9

-

9

7

1

8

Non-employee
directors

no.

4

Temporary agency
workers

no.

59

153

212

77

146

223

39

70

109

Interns and trainees

no.

10

54

64

37

102

139

35

53

88

Total

no.

69

207

276

114

248

362

81

124

205

Terminations and hirings by gender (no.)
u.m.

2021
men

women

2022

Total

men

women

Total

2023
men

women

Total

Terminated

no.

-

1,440

966

2,406

926

1,530

2,456

Hired

no.

-

1,698

1,028

2,726

1,170

1,915

3,085

The data do not include intercompany movements and job on-call contracts*The total number of hires also includes employees of the Frassineti company acquired in 2023, who are considered as new entries.

Average hours of training by gender and category
u.m.

2022

2023

men

women

Total

men

women

Total

Executive & Directors

h

9.96

14.22

11.31

2.91

3.37

3.06

Managers

h

5.44

7.07

6.30

7.52

8.16

7.86

Professionals

h

9.48

8.69

8.95

7.35

7.07

7.16

8.71

8.53

8.60

7.27

7.17

7.21

Total

2023 Sustainability Report

Appendix157

Thousands Countries inof Eurothe scope
EuropeAustria
Belgium
Denmark
FinlandFranceGermany
Ireland
Italy
MonacoNetherlands
NorwaySpain
SwedenSwitzerland
United Kingdom

Americas

APAC

Total
Pre-tax
Revenues43 profits/losses

Tangible assets and Taxes paid
Tax Employees
cash equivalents
provisions44(FTE)45

2,089,514

187,177

123,154

6,913

37,963

3,057

CanadaUSA

168,369

18,741

11,825

5,532

4,540

346

China
Macao
Hong Kong
India
Singapore
South Korea
Japan

560,718-4,33932,943

5,713

8,295

2,326

2,818,601

201,579

167,922

18,15850,798

5,729

Total

Waste generated by type in 2023 (in tonnes)
Type
Non-hazardous waste

Recovered waste (tonnes)

Waste disposed of(tonnes)

Total waste (tonnes)

2,007.33

276.772,284.09

Bulky waste

96.13

-

96.13

Glass

2.82

-

2.82

Iron and steel

7.71

-

7.71

Other waste

16.97

-

16.97

931.50-931.50

Plastic

Paper and cardboard

48.17

11.00

59.17

Wood

310.52-310.52

Textile fibres

111.66-111.66

Mixed packaging

422.57156.68579.25

-

91.30

91.30

59.28

17.78

77.06

Liquid organic waste
Mixed municipal waste
Hazardous waste

6.14

-

6.14

Other waste

5.54

-

5.54

Mixed packaging

0.60

-

0.60

2,013.47

276.772,290.23

Total

43. The amounts shown include net revenues, total other revenues, other interest income, other financial income, bank current accountinterest income.
44. Tax provisions do not include deferred corporate income tax and reserves for uncertain tax positions.
45. The figures shown refer to the total number of employees with a full-time contract (FTE).

158

2023 Sustainability Report

Appendix

Main materials purchased in 2023 showing materials from renewable sources (in tonnes)
Type

Tonnes purchased% materials

Total purchases raw materials

8,334.11

Raw materials from renewable sources (cotton, leather and skins,organochemicals, wool, vegetable fibres and other materials accounting forless than 1% of purchases)

5,815.36

70%

Raw materials from non-renewable sources (polymers, metal fibres, othermaterials accounting for less than 1% of purchases)

2,518.75

30%

Total purchases packaging

2,747.58

Packaging from materials of renewable origin (paper and cardboard, wood,cotton)2,238.91

81%

Packaging from materials of non-renewable origin (plastic, varnishes, othertextile fibres, rubber)508.6719%

Relations with organisations, institutions and associations
To strengthen the competitive position of the Group and its Brands, OTB promotes strategic relations with key stakeholders and institutions. The Group is an active member of various local andinternational organisations and working groups. It takes a leading role in industrial coalitions that
promote sustainability in the fashion industry and defend Italy's manufacturing legacy. Specifically, OTB is a key member of the following associations and entities:
ITALY

FRANCEASCOM Vicenza– Confcommercio

Comité Montaigne

Camera Nazionale della Moda

Fédération de la Haute Couture

Confindustria Vicenza
Federazione Moda Italia Confcommercio
Montenapoleone District

SPAIN
Asociación Distrito 41

Nuova Associazione Babuino

INTERNATIONAL BODIES

Sistema Moda Italia Confindustria

Business for Social Responsibility – BSR

Consorzio Re.Crea

ReLI – Responsible Luxury Initiative

Altagamma

ZDHC Foundation’s Roadmap to Zero
Programme

JAPAN

Science Based Targets initiative (SBTi)

ITA Chamber of Commerce ICCJAURA Blockchain Consortium
The Fashion Pact

2023 Sustainability Report

Appendix159

9.3 L E T T E R F RO M T H E AUDITORS

Independent auditor’s reportin accordance with article 14 of Legislative Decree No. 39 of 27 January 2010

160

2023 Sustainability Report

AppendixIndependent auditor’s reportin accordance with article 14 of Legislative Decree No. 39 of 27 January 2010
To the shareholders of
OTB SpA

Report on the Audit of the Consolidated Financial Statements
OpinionWe have audited the consolidated financial statements of OTB Group (the “Group”), which comprisethe consolidated statement of financial position as of 31 December 2023, the consolidated income
statement, the consolidated statement of other comprehensive income, the consolidated statement ofchanges in equity, the consolidated cash flow statement for the year then ended and the notes to theconsolidated financial statements, including material accounting policy information.
In our opinion, the consolidated financial statements give a true and fair view of the financial positionof the Group as of 31 December 2023, and of the result of its operations and cash flows for the year
then ended in accordance with International Financial Reporting Standards as adopted by theEuropean Union.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISA Italia).
Our responsibilities under those standards are further described in the Auditor’s Responsibilities for
the Audit of the Consolidated Financial Statements section of this report. We are independent of OTB
SpA pursuant to the regulations and standards on ethics and independence applicable to audits offinancial statements under Italian law. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our opinion.
Responsibilities of the Directors and the Board of Statutory Auditors for theConsolidated Financial Statements
The directors are responsible for the preparation of consolidated financial statements that give a trueand fair view in accordance with International Financial Reporting Standards as adopted by theEuropean Union and, in the terms prescribed by law, for such internal control as they determine isnecessary to enable the preparation of consolidated financial statements that are free from material
misstatement, whether due to fraud or error.

2023 Sustainability Report

Appendix

161

The directors are responsible for assessing the Group’s ability to continue as a going concern and, in
preparing the consolidated financial statements, for the appropriate application of the going concern
basis of accounting, and for disclosing matters related to going concern. In preparing theconsolidated financial statements, the directors use the going concern basis of accounting unless theyeither intend to liquidate OTB SpA or to cease operations, or have no realistic alternative but to do so.
The board of statutory auditors is responsible for overseeing, in the terms prescribed by law, theGroup’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error, and toissue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance
but is not a guarantee that an audit conducted in accordance with International Standards on
Auditing (ISA Italia) will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of theconsolidated financial statements.
As part of our audit conducted in accordance with International Standards on Auditing (ISA Italia),
we exercised professional judgement and maintained professional scepticism throughout the audit.
Furthermore:
●

●
●
●

●
●

We identified and assessed the risks of material misstatement of the consolidated financial
statements, whether due to fraud or error; we designed and performed audit procedures
responsive to those risks; we obtained audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion,forgery, intentional omissions, misrepresentations, or the override of internal control;
We obtained an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Group’s internal control;
We evaluated the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the directors;
We concluded on the appropriateness of the directors’ use of the going concern basis ofaccounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Group’s ability tocontinue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related disclosures in the
consolidated financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor’s report. However, future events or conditions may cause the Group to cease tocontinue as a going concern;
We evaluated the overall presentation, structure and content of the consolidated financial
statements, including the disclosures, and whether the consolidated financial statements
represent the underlying transactions and events in a manner that achieves fair presentation;
We obtained sufficient appropriate audit evidence regarding the financial information of theentities or business activities within the Group to express an opinion on the consolidated
financial statements. We are responsible for the direction, supervision and performance of

3 of 4162

2023 Sustainability Report

Appendixthe group audit. We remain solely responsible for our audit opinion on the consolidated
financial statements.
We communicated with those charged with governance, identified at an appropriate level as requiredby ISA Italia regarding, among other matters, the planned scope and timing of the audit andsignificant audit findings, including any significant deficiencies in internal control that we identified
during our audit.

Report on Compliance with other Laws and Regulations
Opinion in accordance with article 14, paragraph 2, letter e), of Legislative Decree
No. 39 of 27 January 2010
The directors of OTB SpA are responsible for preparing a report on operations of the Group as of 31
December 2023, including its consistency with the relevant consolidated financial statements and its
compliance with the law.
We have performed the procedures required under auditing standard (SA Italia) No. 720B in order toexpress an opinion on the consistency of the report on operations with the consolidated financial
statements of the OTB Group as of 31 December 2023 and on its compliance with the law, as well as toissue a statement on material misstatements, if any.
In our opinion, the report on operations is consistent with the consolidated financial statements of
OTB Group as of 31 December 2023 and is prepared in compliance with the law.
With reference to the statement referred to in article 14, paragraph 2, letter e), of Legislative Decree
No. 39/10, issued on the basis of our knowledge and understanding of the Company and its
environment obtained in the course of the audit, we have nothing to report.
Bologna, 3 April 2024
PricewaterhouseCoopers SpA
Signed byRoberto Sollevanti(Partner)
This report has been translated into English from the Italian original solely for the convenience ofinternational readers

4 of 42023 Sustainability Report

Appendix163

9.4 G R I C O N T E N T I NDEXThis index is provided as a guide to the OTB Group 2023 Sustainability Report and to help thereader find content relating to the GRI Standards. For this year no published Sector Standard isapplicable to the OTB Group.

Statement of use

OTB Spa has reported the information cited in this index with reference to the GRI
Standards for the period 1 January 2023 to 31 December 2023

GRI 1 used

GRI 1 – Foundation 2021

GRI STANDARDDISCLOSURE

LOCATION OR DISCLOSURE

2-1 Organisational details

pp. 154 - 155

2-2 Entities included in the organisation’ssustainability reporting

pp. 154 - 155

2-3 Reporting period, frequency and contact
point

pp. 154 - 155

2-4 Restatements of information

pp. 154 - 155, 106

2-5 External assurance

pp. 155

2-6 Activities, value chain and other business
relationships

pp. 20 - 21, 77 - 79

2-7 Employees

pp. 123 - 124, 156 - 157

2-8 Workers who are not employees

pp. 156 - 159

2-9 Governance structure and composition

pp. 46 - 49

2-10 Nomination and selection of the highest
governance body

pp. 46 - 47

2-11 Chair of the highest governance body

pp. 46 - 47

2-12 Role of the highest governance body inoverseeing
the management of impacts

pp. 46 - 47

General disclosures
GRI 2 – General Disclosures
2021

164

2023 Sustainability Report2-13 Delegation of responsibility for managing
impacts

pp. 46 - 49

2-14 Role of the highest governance body insustainability reporting

pp. 46 - 49

2-15 Conflicts of interest

pp. 46

2-16 Communication of critical concerns

pp. 542-17 Collective knowledge of thehighest governance body

pp. 46 - 49

2-18 Evaluation of the performance of thehighest governance body

pp. 46 - 49

AppendixOMISSIONOMITTED REQUIREMENTS

REASONThe Diesel Fashion India ReliancePvt. Ltd. company is not present.

Data not available at the report date.

2023 Sustainability Report

EXPLANATION

Appendix165

GRI STANDARDDISCLOSURE

LOCATION OR DISCLOSURE

2-19 Remuneration policies

pp. 126

2-20 Process to determine
remuneration

pp. 126

2-21 Annual total remuneration
ratio

2-22 Statement on sustainable
development strategy

pp. 6, 32 - 35

2-23 Policy commitments

pp. 32 - 36, 50 - 54

2-24 Embedding policy commitments

pp. 32 - 36, 50 - 54

2-25 Processes to remediate
negative impacts

pp. 36 - 37, 60, 100, 111, 120

2-26 Mechanisms for seeking advice andraising concerns

pp. 542-27 Compliance with laws and regulations

In 2023 there were no significant cases of noncompliance with laws and regulations nor weresignificant penalties or fines imposed on theGroup.

2-28 Membership of associations

pp. 40 - 43, 161

2-29 Approach to stakeholder
engagement

pp. 38 - 39

2-30 Collective bargaining agreements

pp. 138

3-1 Process to determine material
topicspp. 36 - 37

3-2 List of material topics

pp. 37

Material topics
GRI 3 – Material Topics 2021

Responsible governance and ethical business166

GRI 3 – Material Topics 2021

3-3 Management of material topics

pp. 36 - 37, 50 - 54

GRI 205 – Anti-Corruption
2016

205-3 Confirmed incidents of corruption andactions taken

No allegations of corruption in the Group werereported in 2023

2023 Sustainability Report

AppendixOMISSIONOMITTED REQUIREMENTS

REASONEXPLANATIONThe ratio between the annual total
remuneration of the person who
receives the highest remunerationand the average annual total
remuneration of all the employees
The ratio between the percentage
increase in the annual total
remuneration of the person who
receives the highest remunerationand the average percentage
increase in the annual total
remuneration of all the employees

For reasons of confidentiality, themetrics involved are not disclosed

Since the Group and its subsidiaries
are not publicly traded companies
and therefore not required todisclose their remuneration andfee policy for directors and senior
managers, no information is
published that could indicate theremuneration of specific individuals.
The Group continues internalmonitoring of the indicators inquestion, for information purposes,
to analyse internal equity and to
conduct peer comparisons.

The Diesel Fashion India ReliancePvt. Ltd. company is not present.

Data not available at the report date.

2023 Sustainability Report

Appendix

167

GRI STANDARDDISCLOSURE

LOCATION OR DISCLOSURE

GRI 206 – Anti-Competitive
Behaviour 2016

206-1 Legal actions for anti-competitive
behaviour, anti-trust and monopoly practices

No legal actions relating to anti-competitive
behaviour, anti-trust and monopoly practices
were reported in 2023

GRI 418 – Customer Privacy
2016418-1 Substantiated complaints concerning
breaches of customer privacy and losses ofcustomer data

pp. 57

GRI 201 – Economic
Performance 2016

201-1 Direct economic value generated anddistributed

pp. 25 - 26

GRI 207 – Tax 2019

207-1 Approach to tax

pp. 28 - 29

207-2 Tax governance, control and risk
management

pp. 28 - 29

207-3 Stakeholder engagement andmanagement of concerns related to tax

pp. 28 - 29, 38 - 39

207-4 Country-by-country reporting

pp. 160

GRI 3 – Material Topics 2021

3-3 Management of material topics

pp. 36 - 37, 116

GRI 304 – Biodiversity 2016

304-1 Operational sites owned, leased,managed in, or adjacent to, protected areas
and areas of high biodiversity value outside
protected areas

Biodiversity

Climate Strategies

168

GRI 3 – Material Topics 2021

3-3 Management of material topics

pp. 36 - 37, 100 - 101

GRI 302 – Energy 2016

302-1 Energy consumption within theorganisation

pp. 102 - 103

GRI 305 – Emissions 2016305-1 Direct (Scope 1) GHG emissions

pp. 104 - 105

305-2 Energy indirect (Scope 2) GHG
emissionspp. 104 - 105

305-3 Other indirect (Scope 3) GHG
emissionspp. 104 - 108

305-4 GHG emissions intensity

pp. 108

2023 Sustainability Report

AppendixOMISSIONOMITTED REQUIREMENTS

REASONEXPLANATION

Indicators 304-2, 304-3, 304-4 and306-5 are not applicable.

Not pertinent

The OTB Group does not own ormanage structures or operationalsites in or adjacent to protectedareas or areas of high biodiversity
value outside protected areas.

2023 Sustainability Report

Appendix169

GRI STANDARDDISCLOSURE

LOCATION OR DISCLOSURE

Protection of the oceans
GRI 3 – Material Topics 2021

3-3 Management of material topics

pp. 36 - 37, 111 - 112

GRI 301 – Materials 2016

301-1 Materials used by weight or volume

pp. 111 - 112, 160 - 161

301-2 Recycled input materials used

pp. 112Water stewardship and management of chemicals
GRI 3 – Material Topics 2021

3-3 Management of material topics

pp. 36 - 37, 76, 114 - 115

GRI 416 – Customer Healthand Safety 2016416-1 Assessment of the health and safety
impacts of product and service categories

pp. 76416-2 Incidents of non-complianceconcerning the health and safety impacts ofproducts and services

In 2023, there were no incidents of noncompliance concerning the health and safety
impacts of products

Sustainable product design and circularity
GRI 3 – Material Topics 2021

3-3 Management of material topics

pp. 36 - 37

GRI 301 – Materials 2016

301-1 Materials used by weight or volume

pp. 60 - 63, 160 - 161

GRI 306 – Waste 2020306-1 Waste generation and significant
waste-related impacts

pp. 112 - 113

306-2 Management of significant wasterelated impacts

pp. 112 - 113

306-3 Waste generated

pp. 112 - 113, 160 - 161

Responsible sourcing and traceability
GRI 3 – Material Topics 2021

3-3 Management of material topics

pp. 36 - 37, 77 - 79

GRI 204 – Procurement
Practices 2016

204-1 Proportion of spending on local
suppliers

pp. 78

Employee well-being, health and safety
GRI 3 – Material Topics 2021

170

2023 Sustainability Report

3-3 Management of material topics

Appendix

pp. 36 - 37, 126, 134 - 135, 136 - 138

OMISSIONOMITTED REQUIREMENTS

REASONEXPLANATION

The data provided refer topurchased packaging.
The data provided refer topurchased packaging.

All the reported data refer only topurchased raw materials

2023 Sustainability Report

Appendix

171

GRI STANDARDDISCLOSURE

LOCATION OR DISCLOSURE

GRI 403 – Occupational
Health and Safety 2018403-1 Occupational health and safety
management system

pp. 136403-2 Hazard identification, risk assessment
and incident investigation

pp. 136 - 137

403-3 Occupational health services

pp. 137403-4 Worker participation, consultation andcommunication on occupational health andsafetypp. 138403-5 Worker training on occupational healthand safety

pp. 128, 137

403-6 Promotion of worker healthpp. 137403-7 Prevention and mitigation ofoccupational health and safety impacts
directly linked by business relationships

pp. 136 - 137

403-8 Workers covered by an occupational
health and safety management system

pp. 136403-9 Work-related injuries

pp. 138403-10 Work-related ill healthpp. 138

Diversity, equity and inclusion
GRI 3 – Material Topics 2021

3-3 Management of material topics

pp. 36 - 37, 120 - 122

GRI 405 – Diversity and Equal
Opportunity 2016405-1 Diversity of governance bodies andemployees

pp. 47, 123 - 125, 156 - 159

GRI 406 – Non-Discrimination
2016406-1 Incidents of discrimination andcorrective actions taken

No incidents of discrimination occurred
during 2023.

Attraction and loyalty
GRI 3 – Material Topics 2021

3-3 Management of material topics

pp. 36 - 37, 128 - 133

GRI 401 – Employment 2016

401-1 New employee hires and turnover

pp. 130, 159

401-2 Benefits provided to full-time
employees that are not provided to temporary
or part-time employees

pp. 134 - 135

404-1 Average hours of training per year per
employee

pp. 159404-2 Programs for upgrading employee
skills and transition assistance programs

pp. 120, 128

GRI 404 – Education andTraining 2016172

2023 Sustainability Report

AppendixOMISSIONOMITTED REQUIREMENTS

REASONThe employees of the Japan, North
America and APAC regions are notconsidered.

Data not available at the report date.

The Diesel Fashion India ReliancePvt. Ltd. company is not present.

Data not available at the report date.

The Diesel Fashion India ReliancePvt. Ltd. company is not present.

Data not available at the report date.

The Diesel Fashion India ReliancePvt. Ltd. company is not present.

Data not available at the report date.

The Diesel Fashion India ReliancePvt. Ltd. company is not present.

Data not available at the report date.

2023 Sustainability Report

EXPLANATION

Appendix

173

GRI STANDARDDISCLOSURE

LOCATION OR DISCLOSURE

Customer experience, brand awareness and reputation
GRI 3 – Material Topics 2021

3-3 Management of material topics

pp. 36 - 37, 86 - 93

GRI 417 – Marketing andLabelling 2016417-1 Requirements for product and service
information and labellingpp. 94417-2 Incidents of non-complianceconcerning product and service informationand labelling

No episodes of non-compliance withregulations and voluntary codes relating to
product and service information and labelling
occurred in 2023

GRI 3 – Material Topics 2021

3-3 Management of material topics

pp. 36 - 37, 142 - 150

GRI 413 – Local Communities
2016413-1 Operations with local community
engagement, impact assessments anddevelopment programs

pp. 131 - 133, 143 - 150

Social impact

MATERIAL TOPICS NOT COVERED BY GRI INDICATORS
Fair wages and well-being along the value chain
GRI 3 – Material Topics 2021

174

2023 Sustainability Report

3-3 Management of material topics

Appendix

pp. 36 - 37, 81 - 83

OMISSIONOMITTED REQUIREMENTS

REASONEXPLANATION

Share Capital: EUR 25,000,000 fully paid up
Vicenza Companies Register no. 01242510269
Vicenza Economic Administrative Repertory no. 170.761
Tax Code 01242510269
VAT Number 01571110244

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frame by frame spa
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For further information or comments on this Sustainability Report,
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