Chief Executive Officer & Chairman
CAV. Giancarlo DANI
VALERIO MAZZASETTE
Dear readers,
2023 was a year marked by a great achievement, the award of the EcoVadis Platinum Sustainability Rating. EcoVadis is one of the most important international sustainability rating platforms, its aim being to quantify a company’s ability to manage aspects concerning the environment, human rights, ethical principles and sustainable procurement, within the boundaries of its specific sector. Since 2018, EcoVadis has been supporting us in ESG risk management and compliance, to achieve corporate sustainability goals and drive large-scale impact, promoting improvement in our sustainability performance and that of the value chain.
With the Platinum rating of the EcoVadis Sustainability Rating 2023, DANI has improved its rating by 8 points and thus entered the Top 1% of the best companies in the EcoVadis global ranking (out of more than 90,000 companies analysed), which corresponds to the 99th percentile, standing out as the only company in the tanning sector worldwide to have achieved such a result. Sustainability is therefore always central
to DANI’s sategic orientation, in the knowledge that one cannot speak of responsible commitment without transparency and accountability, and above all in a market environment characterised by strong inflationary tensions such as the current one, we believe it is thanks to our concrete commitment to do our part for a better future and product innovations that we are consolidating lasting partnerships with our customers. This sustainability report is also the account of a year-long journey, the photograph of a company that promotes values that have always distinguished it and which is constantly striving to improve, to achieve challenging goals capable of driving it towards a more sustainable future.
We would like to express our gratitude to all DANI’s employees, in thanking the stakeholders in our supply chain, the institutions, the public and civil society, who are inexhaustible sources of contributions and insights. We will treasure them in the years to come, because the exchanging ideas and dialogue are the key to doing one’s best. Always.
CAV. GIANCARLO DANI
CHIEF EXECUTIVE OFFICER & CHAIRMAN
VALERIO MAZZASETTE
MANAGING DIRECTOR
Approach to sustainability
DANI brands
Passion for quality and innovation. And above all: respect, for what we do, for people, animals and the environment. Since 1950, the DANI Group has been acknowledged and has distinguished itself in the world for its way of being, thinking and working.
Since 2017, DANI S.p.A. has adhered to the United Nations Global Compact (UNGC), incorporating the 10 of the principles advocated by the United Nations into its initiatives:
Involvement of stakeholders and materiality matrix
Involving stakeholders in the group’s activities is an essential step in reconciling both sustainable development and the company’s economic performance.
Internal
For DANI, the main and most important internal stakeholders are its employees, who are invited and involved to express their opinion on issues they consider important, by filling in specific formats, listening desks and through their representatives.
EXTERNAL
DANI has involved its external stakeholders in a dialogue aimed at identifying, using a predefined methodology, the issues of greatest interest, in order to define and plan strategies and objectives in the field of sustainability.
THE MOST RELEVANT ISSUES FOR DANI AND ITS STAKEHOLDERS
Attention
towards people
PROTECTION OF BIODIVERSITY
SOIL AND SUBSOIL PROTECTION
CIRCULAR ECONOMY, DURABILITY AND PRODUCT END-OFLIFE
REDUCED USE OF CHEMICAL PRODUCTS
WASTE RECOVERY
SUPPLY CHAIN SUSTAINABILITY
REDUCED AIR POLLUTION
RESPONSIBLE WATER CONSUMPTION AND PROTECTION OF WATER SOURCES
RENEWABLE ENERGIES AND ENERGY EFFICENCY
INNOVATION AND LOW IMPACT PRODUCT
CLIMATIC CHANGE AND CORPORATE DECARBONISATION
Natural
resources
SUPPORT TO LOCAL COMMUNITIES AND SOCIAL COHESION
COLLABORATIONS WITH SCHOOLS, UNIVERSITIES, AND RESEARCH INSTITUTES
CONSUMER AWARENESS AND GOODS HEALTH AND SAFETY
CORPORATE WELFARE PROMOTION
GENDER EQUALITY GUARANTEE
ENSURING ANIMAL WELFARE
PROFESSIONAL DEVELOPMENT OF WORKERS
SAFEGUARDING OF HUMAN RIGHTS
ETHICS, ANTI-CORRUPTION AND UNFAIR COMPETITION
BALANCE BETWEEN WORK AND PRIVATE LIFE
Environmental
impact
CREATION OF ECONOMIC ADDED VALUE
CORPORATE PROFITABILITY
TRACEABILITY OF THE PRODUCT AND RAW MATERIALS
PRODUCT QUALITY
COMPANY AND PRODUCT MANAGEMENT SYSTEMS
We certify our goals because they are proof of our daily commitment to improving the safety of workers, the quality of our products, the reliability of our processes and the environmental compatibility of our production processes.
CONSCIOUSLY TAKING THE FIRST STEP MEANS THE JOURNEY HAS STARTED.
MEASURING TO DO BETTER. WHAT YOU DISCOVER CHANGES YOU, AND ALSO CHANGES THE WORLD.
EVERY ARRIVAL IS A NEW STARTING POINT.
MONITORING SUSTAINABILITY PERFORMANCE TO GUARANTEE TRANSPARENCY TOWARDS ALL STAKEHOLDERS.
OFFERING GUARANTEES OF CONFORMITY IN RELATION TO SUPPLY CHAIN TRACEABILITY AT ALL STAGES, ALSO UPSTREAM AND DOWNSTREAM.
EACH STEP OF THE JOURNEY MARKS THE DIFFERENCE BETWEEN WHO WE ARE AND WHO WE WERE.
rating esg
The EcoVadis rating gave us a Platinum score for 2023, placing DANI among the 1% of virtuous companies that manage to achieve the highest level (each year more than 90,000 companies in total are monitored worldwide)
The EcoVadis platform allows companies to monitor their own sustainability performance and that of their suppliers, manage supply chain risks and propose improvement plans to suppliers. Of the four pillars on which the assessment by EcoVadis experts is based, the sections dedicated to Environment and Sustainable Sourcing were decisive for the successful final result, offering further confirmation of the significant joint commitment on these issues by DANI and its partners.
Economic sustainability
2023 proved to be a particularly difficult year for a number of reasons, the war in Ukraine was followed by the Israeli-Palestinian war, which had a major impact on transport, causing procurementproblemsandincreasedcosts.The increase in interest rates, operated by central banks with the aim of containing inflation, has caused two considerable economic impacts: the increase in financial costs and the slowdown in household consumption, which have resulted in a decrease in demand for our product. In spite of these aspects, DANI has continued to invest in new technologies, with the aim of optimising processes and reducing its environmental impact, while always paying the utmost attention to human resources management. Thanks to these investments, the company has been able to cope with the negative dynamics, maintaining its economic results stable over time.
| BALANCE SHEET DATA | 2021 | 2022 | 2023 |
|---|---|---|---|
| TOTAL PRODUCTION VALUE | € 145.872 | € 161.194 | € 138.967 |
| PERSONNEL COST | € 28.573 | € 29.781 | € 29.701 |
| OTHER COST | € 144.967 | € 160.522 | € 138.417 |
| EBT* (EARNING BEFORE TAXES) | € 905 | € 672 |
€ 550 |
* Net of financial charges.
Data source: statutory balance sheet year 2023. Figures are expressed in thousands of euros.
Environmental sustainability
WATER AND WASTE WATER
Leather processing requires the use of water at different stages of the production process. This is why DANI holds specific environmental authorisations, issued by control bodies, which impose strict restrictions and controls on both the quantity and quality of the water taken and discharged.
BY-PRODUCTS AND WASTE
DANI is a circular company that makes valuable finished articles from a by-product. In turn, during the production process it produces other waste and by-products that are recycled into raw materials by other industrial sectors. To date, more than 98% of waste is processed and ennobled. Despite this high recovery performance, efforts to streamline processes and reduce waste quantities continued during 2023, such as the project aimed at reusing and reducing packaging.
EMISSIONS: GREENHOUSE GAS INVENTORY
For several years now, DANI has been working to combat climate change by reducing climate-changing gas emissions, with the aim of achieving carbon neutrality, i.e. a balance between sources of emissions and the removal of greenhouse gases by 2030 (compared to the European target of 2050).
Since 2022, its carbon footprint as an organisation has been calculated according to the ISO 14064:2019 standard. To accomplish this, it is necessary to prepare a GHG emission inventory, which must then be validated.
CARBON REDUCTION STRATEGY
The United Nations Convention on Climate Change (UNFCCC) concluded an agreement in 2016 aimed at combating change and limiting the temperature increase to 1.5 °C.
The European Union has decided to reduce emissions by at least 55% within 2030 and achieve climate neutrality within 2050. To achieve this, individual countries and therefore individual organisations must implement concrete projects to reduce greenhouse gas emissions.
Calculation of product carbon footprint
Defining reduction targets and actions
Implementing reductions
Identifying climate projects to offset, avoid or remove
Transparent communication
Management of energy aspects
Energy consumption is directly influenced by the volumes of raw material being processed. Investments related to energy efficiency continued in 2023, above all with regard to reducing the consumption of natural gas by modernising some plants.
| BALANCE SHEET DATA | 2021 | 2022 | 2023 |
|---|---|---|---|
| Natural gas (m3) | 3.416.551 | 3.120.109 | 3.065.281 |
| Diesel (kg) | 67.150 | 61.200 | 46.750 |
| Electricity (kWh) | 13.691.580 | 13.344.800 | 12.421.651 |
| Consumption (TOE/kg processed leather) | 0,00017 | 0,000163 |
0,000179 |
Traceability
Ensuring reliable, transparent and verifiable information has become crucial if we are to talk about sustainability in the appropriate manner. In this respect, the traceability of the entire supply chain that transforms the raw hide, i.e. a by-product of the food industry, into a finished product of excellence, is a strategic issue to guarantee the final consumer the quality and sustainability of the purchased product. For several years now, DANI has guaranteed the origin of the raw hide purchased, which is almost entirely of European origin. This, besides guaranteeing the highest quality performance, effectively rules out the possibility that the raw material may come from areas at risk of deforestation or from countries where the issue of animal welfare is not sufficiently legislated or subject to strict controls by supervisory bodies. Both the systems guaranteeing the traceability of the raw hide and the respect for animal welfare during all phases of the animal’s life are certified and verified by independent third parties.
*Source: internal revision on the value purchase of the total raw material for year 2023
*Source: internal revision on the value purchase of the total raw material for year 2023
Social sustainability
Initiatives aimed at employees
Enhancing and developing people’s potential is one of DANI’s core values. In fact, the company has chosen to certify its code of conduct and founding principles by means of the ICEC “Social Accountability” certification.
Cesare Pozzo Found and DANI Welfare Project
In 2023, subsidies paid through the supplementary health fund grew by 30% compared to the previous year; the number of beneficiaries grew by 27% over the same period. Encouraging signs confirm the soundness of the company’s decision to equip itself with a “tailor-made” tool, which relies on the presence of an internal help desk for employees and individual information provided by the partner and the HR department. Furthermore, the reinvestment of part of the profits, provided for in agreement with the partner, enabled additional benefits to be provided in the year 2023 at no cost for employees and, in particular: - Child Bonus, for 30 new children of employees worth €250 each; - Free LTC coverage for all employees (Long Term Care: care coverage guaranteeing a monthly life annuity for 3 years to those who are not self-sufficient).
Training
During 2023, training hours decreased in absolute terms compared to the previous year, which had marked the company’s all-time high. Training focused, in particular, on strategic sectors: Quality (+ 40%), Sustainability (health and safety, environment, social issues, etc.) (+424%) and IT (+204%). The hours of training provided via the internal e-learning platform are in line with the previous year. The company has also set up an in-house platform to deliver original training content, e.g. in the field of sustainability and Italian courses for foreigners, which will be released in year 2024.
| BALANCE SHEET DATA | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total hours worked | 1.159.480 | 1.172.970 | 1.173.764 |
| Total training hours | 11.651 | 13.535 | 8.651 |
| Ratio of training hours to hours worked | 1,00% | 2,25% | 0,74% |
| Average training hours per capita | 18,1 | 19,9 |
12,67 |
External activities: events and communication
Trade Fairs
For DANI, participation in trade fairs offers a very effective tool for promoting products and services, as well as a unique opportunity for networking.
Summer Party
The evening, dedicated to the employees of the Arzignano production plants, allowed them to renew their loyalty to the company and enjoy an evening together with their colleagues and their families.
Moby Dick Collaboration
The general aim of the social cooperative Moby Dick of Arzignano is to offer society a place for reception and assistance, which, by putting people at the centre, promotes wellbeing and fosters global assistance to sick people and families.
“Green Leather Manager” scholar-ships
DANI has decided to offer “scholarships for deserving students” enrolled in the academic training year 2022/2023, with the aim of supporting continuity in the studies of the new generations and promoting a high quality training course.
Academy: IFM
Ten years in the name of leather. DANI celebrated something more than just an anniversary in Paris, at Palais Brongniart. It presented the fruits of an educational collaboration project that it has been managing together with IFM, aka Institut Français de la Mode, for a decade. An opportunity to look back on what has been achieved and created so far, opening the door to a future of renewed collaboration.
Academy: University of Northampton
DANI was host to the Institute of Creative Leather Technologies of the University of Northampton, who visited its offices and production plant.
Casa San’Angela
“We speak out against all forms of violence and have been committed for years to supporting the Casa Sant’Angela Foundation, a nonprofit organisation that is at the forefront in providing support, shelter and protection to women and children who are victims of violence or abuse.
Sponsorship FC Arzignano Calcio
Heart, energy, common goals, intense passion and that sense of belonging only an authentic team game can create: DANI has joined FC Arzignano Valchiampo again for the 2022/23 season.
Objectives achieved and next steps
GOALS OF THE PREVIOUS SUSTAINABILITY REPORT
IMPROVING PERORMANCE + 5 POINTS IN ECOVADIS RATING BY 2024
+ 8 POINTS
78/100 Platinum
DIGITISATION OF INTERNAL PROCESSES
achieved
RESEARCH AND DEVELOPMENT OF NEW COLLECTIONS WITH HIGH SUSTAINABILITY PERFORMANCE
+ 227
New Articles Produced
- 5% ORGANISATION CARBON FOOTPRINT COMPARED TO THE 2021 BASELINE (-25% COMPARED TO 2021)
-5%
Carbon Footprint
GOALS OF THE PREVIOUS SUSTAINABILITY REPORT
ESG ECOVADIS PERFORMANCE:MAINTAINING THE ESG ECOVADIS PLATINUM RATING BY IN- CREASING THE OVERALL SCORE BY AN ADDITIONAL 3 POINTS
CARBON FOOTPRINT REDUCTION:CONTINUING THE REDUCTION OF ENVIRONMENTAL IMPACTS IN TERMS OF CO2 BY A FURTHER 5%
SOCIAL:INCREASINGLY VALUE-BASED COMMUNICATION, COMMUNITY-ORIENTED AND CUSTOMER-FRIENDLY WITH AN INCREASING FOCUS AND AWARENESS ON CHOOSING PRODUCTS THAT ARE THE RESULT OF ETHICAL AND ENVIRONMENTALLY AND ECOSYSTEM-FRIENDLY PRODUCTION PROCESSES. IMPROVING OUR EDITORIAL PLAN TO REACH MORE TARGETED USERS
SOCIAL:TRAINING SERVICE AND PROGRAMME ON LEARNING THE ITALIAN LANGUAGE PROVIDED VOLUNTARILY BY THE ORGANISATION TO ITS FOREIGN EMPLOYEES. IMPROVING INTEGRATION, SKILLS AND LANGUAGE ABILITY BY AT LEAST 35%