Shaping a sustainable future together.
SUSTAINABILITY REPORT 2022
CAV. Giancarlo DANI
It gives me great pleasure to share with you, once again this year, the document that summarises the milestones reached and the projects implemented by DANI over the past year within the programme of action for sustainable development aimed at respect for people, for the planet and at prosperity. We are all called upon to face a challenge that is more and more strongly felt and global and our report, which once again allows us to reflect, represents a good starting point from which to ask ourselves if we are doing our best and continue to do our part to build a different world and give everyone the chance to live sustainably from an environmental, social and economic point of view. For years we have been committed to pursuing a circular economy model, with low CO2 emissions, aimed at recovering by-products, at an efficient consumption of resources, resilient to climate changes, attentive to the phenomenon of inequality and that promotes initiatives in favour of young people and developing societies.
We are all called upon to adopt a multidimensional approach to overcome economic, environmental and social inequalities and thereby pursue a truly sustainable, balanced and inclusive development. This approach implies the use of a wide range of instruments, including budgetary policies and a numerous structural investments.
I wish to thank the people of DANI, guided by the Managing Director, Valerio Mazzasette, for the work performed in 2022 and offer my encouragement for future challenges. To all others who are about to browse through this report, best wishes for a good read.
Cav. Giancarlo DANI
DANI S.p.A. Chief Executive Officer & Chairman
Transparency with stakeholders is a principle that guides our group in all its activities and which also translates into the decision to draw up annually, on a voluntary basis, the Sustainability Report, first published in 2015: each year the document reports on the milestones of the company’s sustainability journey, reflecting its deliberate and concrete commitment.
From the very first edition, it has been drafted in accordance with the Global Reporting Initiative Standards, the main international reference criteria for reporting sustainability performance.
By analysing the impacts of our activities, we have pinpointed the primary pillars of sustainability, which we must work towards in the coming years:
Goal 8 – Decent work and economic growth
Goal 12 – Responsible consumption and production
Goal 13 – Climate action
Goal 17 – Partnerships for the goals
These goals are supported by the strategic project “2050 IS NOW”, to tackle climate change, quantifying and reporting on the impact of its activities associated with emissions of climate- changing gases (primarily CO2) and drawing up a “Carbon Reduction Strategy” that sets down all the steps aimed at a decarbonisation pathway, with the goal of being carbon neutral, compensating the residual emissions through certified carbon credits. In this way, DANI has been able to already assert that it is CARBON NEUTRAL, anticipating the European target of 2050.
DANI S.p.A. Managing Director
Approach to sustainability
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
Involving stakeholders in the group’s activities is an essential step in reconciling both sustainable development and the company’s economic performance.
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.
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
ETHICS, ANTI-CORRUPTION AND FAIR COMPETITION
PROTECTION OF HUMAN RIGHTS
PROFESSIONAL DEVELOPMENT OF WORKERS
BALANCE BETWEEN FAMILY LIFE AND WORKING LIFE
PROMOTION OF CORPORATE WELFARE
GUARANTEE OF GENDER EQUALITY
COLLABORATION WITH SCHOOLS, UNIVERSITIES AND RESEARCH CENTRES
SUPPORT TO LOCAL COMMUNITIES AND SOCIAL COHESION
- Human resources
- Local communities
RENEWABLE ENERGIES AND ENERGY EFFICIENCY
RESPONSIBLE WATER CONSUMPTION AND PROTECTION OF WATER RESOURCES
REDUCED USE OF CHEMICALS
- Natural resources
REDUCED ATMOSPHERIC POLLUTION
CLIMATE CHANGE AND COMPANY DECARBONISATION
PROTECTION OF THE SOIL AND SUBSOIL
PROTECTION OF BIODIVERSITY
- Environmental impact
CIRCULAR ECONOMY, PRODUCT DURABILITY AND END OF LIFE
INNOVATION AND LOW IMPACT PRODUCT
CONSUMER AWARENESS AND HEALTH AND SAFETY OF ASSETS
CREATION OF ADDED ECONOMIC VALUE
GUARANTEE OF ANIMAL WELFARE
KNOWLEDGE AND TRACEABILITY OF THE SUPPLY CHAIN
SUSTAINABILITY OF THE SUPPLY CHAIN
- Products and services
- Supply chain
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.
Once again for 2022 EcoVadis has given us a gold rating, placing DANI in the 5% of virtuous companies (each year throughout the world, over 100,000 companies are monitored overall) that manage to achieve the Gold level.
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.
2022 was a very significant year from a geopolitical point of view.
With regard to the Russian situation, the company has never had significant exposures towards that market and there have been no repercussions from a commercial and financial point of view.
The substantial rise in energy prices has instead increased processing costs. This impact was mitigated as much as possible by measures to contain costs and enhance production efficiency. The objective was to maintain use of the production lines high, concentrating productions where there is a greater added value.
Through the introduction of new lines, set up with the industry 4.0 production and management models, it was possible to transfer some previously outsourced processes internally, thereby allowing the volumes produced to remain constant. This policy is still in force.
|BALANCE SHEET DATA
|TOTAL VALUE OF PRODUCTION
|DIFFERENCE BETWEEN VALUE AND COSTS
Data source: statutory balance sheet year 2023. Figures are expressed in thousands of euros.
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
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.
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”.
Our commitment and willingness to be transparent to the market is once again confirmed with the renewal of two important recognitions already obtained in terms of raw material traceability, process reliability, ethical commitment and environmental sustainability.
Last year, we were the first tanning company in the world to have obtained the ethical claim guaranteeing customers that all hides and skins come from food-only cattle farms, which are almost exclusively European and therefore subject to the strictest laws on animal welfare.
This recognition has paved the way for us towards an ethical, transparent and reliable communication model, in tune with the spirit that guides DANI’s entrepreneurial actions, in full respect of ethical values and social-environmental responsibility.
This year, we not only passed the audits, but also obtained an ‘excellent’ score of 92/100, which guarantees the precise and complete mapping of the origin of raw hides and skins by identifying slaughterhouses and farms.
*Source: internal revision on the purchase value of hides and skins for the year 2022
*Source: internal revision on the purchase value of hides and skins for the year 2022
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 and DANI Welfare Project
Developing talents, creating a fair, motivating and innovative working environment is the path we have taken to promote fulfilment and satisfaction at work, stimulating motivation and personal initiative.
In 2022 there was a substantial increase in the users/members of the corporate desk service of the supplementary health plan fund, confirming an increasing use of the service also from an economic point of view. During the year some additional services in favour or members were set up, through reinvestment of part of the profits, according to a
logic of sharing benefits typical of the mutualistic instrument.
The corporate welfare project also grew in 2022, both in number of users and allocated amounts: not only as regards rewards but also as an integral part of proposals for recruitment and recognition linked to the achievement of specific area goals.
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.
During 2022 there was a further increase in training hours, with particular reference to the issues of safety, quality, IT, laboratory and HR. There was also a 22% increase in the training hours delivered through the internal e-learning training platform compared with the previous year.
|BALANCE SHEET DATA
|TOTAL HOURS WORKED
|TOTAL TRAINING HOURS
|RATIO OF TRAINING HOURS TO HOURS WORKED
|AVERAGE TRAINING HOURS PER CAPITA
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:
For many years the start of summer has been celebrated by DANI with “our party”: an evening dedicated to employees of the Arzignano headquarters.
To mark Christmas 2022, DANI decided to consolidate the joys of the festive season with a gesture of solidarity, to support the purchase of a fully equipped ambulance destined for first aid and emergency situations in favour of the association S.O.G.I.T.
Ci sto? Affare fatica
The project promoted by the Municipality of Chiampo involved youths who volunteered to carry out hard work during their summer holidays, and were able to enjoy the benefits of their labour.
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.
Padel for kids
Through collaboration with Hangar84, which conceived and set up a sports project for schools in the district, during 2022 padel courses were organised for around 80 classes of children of different ages.
“Green Leather Manager” Scolarship
The Green Leather Manager is an expert technician in research and development of leather and hide products for the fashion, footwear, furnishing and automotive sectors.
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.
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.
IMPROVING ESG PERFORMANE +5 POINTS IN THE E COVADIS RATING BY THE END OF 2024
Digitalisation OF INTERNAL PROCESSES
Research and Development OF NEW COLLECTIONS WITH HIGH SUSTAINABILITY PERFORMANCE
-5% Carbon Footprint OF ORGANISATION COMPARED TO THE BASELINE 2021