Shaping together a sustainable future.
SUSTAINABILITY REPORT 2021
CAV. GIANCARLO DANI
Dear readers,
it is with pride that I present to you the latest edition of DANI S.p.A.’s Sustainability Report, drawn up with the aim of sharing the environmental, social and governance performance achieved by the company.
This document is an invitation to discover the most recent milestones reached in our pioneering journey, which began in 2011, with the aim of doing our part and winning a challenge, that of taking care of our Earth, its resources and future generations.
Since then, our commitment has been to transform the need for change into real sustainable leather, concrete behaviour and strategic supply chain partnerships, and continues, year after year, to do better and better, through responsible choices and actions certified by independent third parties, in a context where everyone talks about sustainability, but few act in a dimension with real impact.
In fact, the term sustainability is now used so frequently and in such diverse contexts that we have almost lost the sense of its original meaning. From being a “revolutionary” word that should involve serious investment in innovation and change for a strong positive impact on the environment and society, it risks becoming a background noise or a mere communication strategy.
So, our report is a journey to discover how we can translate sustainability into concrete actions and continuous improvement, not just telling stories.
The global pandemic and social crisis that has marked these past two years has undoubtedly stimulated reflections on the priorities humanity must pursue and has accelerated changes in the lifestyles of all of us.
We had to face many difficulties, but the responsiveness of my staff was exceptional and it is them I wish to thank first.
DANI S.p.A is a big family and we have witnessed our spirit of belonging, the sacrifices and the resilience that have allowed us to carry on, facing the very heavy effects that the crisis has had at a social and economic level.
Together with the employees, I feel I also want to thank our local community, the public authorities and our supply chain partners with whom we have discussed and built a structured dialogue on the actions to be taken so that pursuing a better future is a common goal.
It only remains for me to wish you good reading, trusting that our contribution will be a further incentive to approach the leather market with respect, humanity, foresight and love for the Earth and all its creatures.
Cav. Giancarlo DANI
Chairman and Chief Executive Officer, DANI Group
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 principles advocated by the United Nations into its initiatives:
Involvement of stakeholders
Involving stakeholders in the group’s activities is an essential step in reconciling both sustainable development and the company’s economic performance.
Internal Stakeholders
For DANI, the main and most important internal stakeholders are its employees, who are involved and invited to express their opinion on issues they consider important, by filling in specific formats, listening desks and through their representatives.
External Stakeholders
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
HEALTH AND SAFETY ON THE WORKPLACE
BALANCE BETWEEN WORK AND PRIVATE LIFE
HUMAN RESOURCES SKILLS
GENDER EQUALITY
COLLABORATION WITH AND SUPPORT TO LOCAL COMMUNITIES AND INSTITUTIONS
COLLABORATION FOR AND SUPPORT FOR SCHOOLS AND UNIVERSITIES
- Human resources
- Local communities
Natural
resources
USE OF RENEWABLE ENERGIES
RESPONSIBLE WATER CONSUMPTION
ENERGY EFFICIENCY
REDUCING THE CONSUMPTION OFCHEMICAL PRODUCTS
- Natural resources
Environmental
impact
REDUCTION/RECOVERY OF WASTE
EMISSIONS INTO THE ATMOSPHERE
INDUSTRIAL WATER TREATMENT
REUSE/RECYCLING OF TANNING BY-PRODUCTS
CO2 COMPENSATION
REUSE OF SCRAPS/TRIMMINGS FROM FINISHED LEATHER
- Environmental impact
Production
chain
ENVIRONMENT AND SAFETY ON THE WORKPLACE OF THE SUPPLY CHAIN
ANIMAL WELFARE
TRACEABILITY OF THE RAW HIDE SUPPLY CHAIN OF THE RAW HIDESUPPLY CHAIN
LEATHERS WITH ENVIRONMENTAL AND SOCIAL CERTIFICATIONS
QUALITY CONSISTENCY OF DANI LEATHERS
CO-DESIGN OF PRODUCTS IN COLLABORATION WITH SUPPLIERS
- Supply chain
- Products and services
Company and product management systems
The company has implemented various management systems to define and achieve improvement objectives aimed at meeting the expectations and needs of the various stakeholders.
Furthermore, it has obtained several product certifications that attest, through laboratory tests carried out by authorised third parties, the absence of harmful substances, compliance with quality standards and the environmental impact of the entire life cycle of the leather.
research and innovation
The most beautiful love story between nature and leather.
Patented by DANI, Zero Impact® is the innovative and responsible design, the result of more than 10 years of investment in Research & Development. The 100% Made in Italy tanning process has made it possible to produce leather that is increasingly high-performing from a technical and quality point of view and at the same time has a low environmental impact, with total traceability of the raw material employed.
Over the past year, the dedicated commitment to the Zero Impact® project has resulted in the ZeroUno collection.
Economic sustainability
As in previous years, 2021 was also a year of huge technological investment for the company, which allocated significant resources to push its plants towards the new technological frontier. The company maintains its equity and financial solidity unaltered, exploiting this as always to support the supply chain. In spite of economic, social and geo-political uncertainty, the trend is proceeding steadily, thanks also to increased production.
| BALANCE SHEET DATA | 2019 | 2020 | 2021 |
|---|---|---|---|
| TOTAL VALUE OF PRODUCTION | € 144.385 | € 122.277 | € 145.872 |
| PRODUCTION COSTS | € 112.233 | € 90.775 | € 116.573 |
| PERSONNEL COSTS | € 27.896 | € 25.611 | € 28.573 |
| DIFFERENCE BETWEEN VALUE AND COSTS | € 4.256 | € 5.891 |
€ 725 |
Data source: balance sheet year 2022, the figures are expressed in thousands of euros.
Environmental sustainability
Water and water discharges
DANI has two processing water discharge outlets at its facilities in Arzignano. Controls are carried out regularly by Acque del Chiampo S.p.A. During 2021, controls showed that the average concentration values at the waste water outlets were well below the regulatory limits. In particular, the average concentration of discharged chromium was very low at around 20-30% of the maximum limit.
Raw materials, by-products and waste
In the course of its activities, DANI carries out true upcycling operations, as it refines a waste material (hides) from the food production chain. In turn, the tanning process gives rise to various by-products, more than 98.5% of which are recovered in a circular economy perspective, becoming in turn raw materials for other industries.
During the various production stages, waste is also generated, more than 90% of which DANI recovers by means of recycling for direct re-use or subsequent processing into new raw materials. In the three-year period 2019-2021, total waste generation tends to remain more or less constant, despite a growth of almost 15 per cent in the volume of raw material being processed
Emissions
DANI monitors its emissions by means of checks carried out by an accredited external laboratory. In the last two years, a project to reduce solvents in use has been implemented through a joint activity between the Sustainability and the Research and Development areas. The goal for 2022 is to certify the calculation of CO2 emissions according to ISO 14064.
Energy consumption management
In 2022, DANI became the first Italian tannery to have implemented an energy management system certified according to UNI CEI EN ISO 50001.
The electricity supply is 100% from renewable sources, which has resulted in an overall reduction of 18,000 tonnes of CO2 over the three-year period.
Animal welfare
The decision to source raw hides and skins from traceable areas allows DANI to guarantee animal welfare during all life stages from which the hides and skins originate. Leather tanning is a true recycling activity of a by-product of the food chain, thus naturally fitting into the concept of circular economy. For this reason, DANI has chosen to certify, by means of the international standard UNI ISO/TS 17033:2020, the ethical claim “We recover our hides and skins from the food chain”.
Traceability
In the course of 2021, DANI obtained an important certification based on the TS_410 certification scheme developed by ICEC (the national institute for the certification of the tanning industry), which consists in the total mapping of all raw materials purchased by verifying the degree of traceability obtained and which is then summarised in a rating. DANI achieved an “excellent” rating, as it is able to provide and guarantee the identification of the abattoirs and farms from which it obtains its supplies.
*Source: internal revision on the purchase value of hides and skins for the year 2021
*Source: internal revision on the purchase value of hides and skins for the year 2021
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 Fund
The company chose to set up a partnership with the oldest national Mutual Aid Society. The collaboration between Cesare Pozzo and DANI made it possible to set up a tailor-made supplementary health plan that was extended to employees’ family members and also made available to all member companies of the UNIC trade association.
DANI Welfare Project
This project stems from the desire to set up an evolved corporate welfare system in order to:
→ increase the spending power of employees;
→ attract and retain talent;
→ counter unfair competition;
→ reward the most deserving;
→ support social security and welfare needs;
→ foster social services to support families.
Training
During 2021, there was a substantial increase in training in almost all sectors, particularly for occupational health and safety and environmental issues. In addition, an internal e-learning training platform was set up to cover various across-the-board topics, which was particularly popular in terms of usability and straightforwardness.
| BALANCE SHEET DATA | 2019 | 2020 | 2021 |
|---|---|---|---|
| TOTAL HOURS WORKED | 1.205.644 | 1.049.061 | 1.159.480 |
| TOTAL TRAINING HOURS | 7.424 | 6.579 | 11.651 |
| RATIO OF TRAINING HOURS TO HOURS WORKED | 0,62% | 0,63% | 1,00% |
| AVERAGE TRAINING HOURS PER CAPITA | 11,6 | 10,1 |
18,1 |
External activities: events and communication
“Knowing to Choose” is the slogan of the 2021 campaign aimed at DANI stakeholders, who are seen as potential promoters of a more inclusive, environmentally friendly and people-friendly economic system.
Among the various initiatives promoted by the awareness campaign, the most relevant are listed below:
The calendar
From functional tool to educational and cultural lever to dispel the false myths and prejudices surrounding leather production.
beLeafing
DANI has chosen to donate 500 trees to its territory by joining beLeafing, a project that unites companies, citizens and administrations in a planting process to contribute to the environmental well-being of the surrounding area.
Visualase San Bortolo
The DANI group purchased and donated a state-of-the-art device worth 320,000 euros, which is capable of intervening on lesioned areas of the brain.
Dani Academy
A workshop of ideas where the brightest talents from design schools come together to build a research path on sustainable leather innovation.
Green Week 2021
DANI took part in the Italian event addressing green economy issues, hosting groups of young academics from all over Italy at its premises.
Cop26 - reducing dependence on fossil fuels
DANI, together with 30 other international leather industry organisations, called on the 2021 UN Climate Change Conference (COP26) to prioritise natural materials as a means to reduce climate impact.
Create to Change
DANI has found in Montblanc an exceptional partner for the Create to Change project, designed to offset CO2 emissions through the purchase of credits to finance sustainable growth projects in developing countries.
Goals 2022-2023
Every day DANI chooses for our benefit, combining its production processes with sustainable solutions, to do its part and pursue the goal of sustainability: taking care of the planet, its resources and future generations.
Reduction in wood and plastic packaging per unit produced by 2022 (-15% compared to 2021)
Reduction of supplementary water consumption per unit produced by 2023 (-15% compared to 2021)
Improvement of waste water quality (COD improvement) By 2023 (-5% compared to 2021)
“Less Paper” Project By 2022 (-25% compared to 2021)
Implementation of an organisational carbon footprint calculation system according to ISO 14064 by 2023