Purpose and Values
In 2022 Prada Group’s brands have gained momentum and the business has flourished. We have invested heavily to support growth and profitability, and to strengthen our creative and manufacturing expertise.
Our leadership team has grown. We have added two board members with significant experience in Environmental, Social and Governance (ESG), and the whole Company is becoming more diverse, equitable and inclusive. We have brought more artisanal skills into our business, and we are training and supporting more craftspeople. They are key to our manufacturing process. The Prada Group has a short supply chain. Most of our manufacturing partners are not far from our main factories. This way we maximize quality control and transparency, and we can trace raw materials better.
The Group is determined to implement a sustainable business model. The acquisition of a tannery located in Tuscany is one more step in that direction. By putting sustainability at the heart of our business, we inspire our customers, make our stakeholders happy and deliver value to our shareholders.
When we set out our ESG strategy last year, we said our purpose is to be the Drivers of Change. This is a bold ambition, and it requires action at every level of our business. There are many areas where there is still much more to do but I am pleased that in the past year we have continued to challenge ourselves and made excellent progress.
We continued our work to reduce the impact of our operations. Rising energy prices have proved a challenge, but they have also highlighted
the importance of transitioning to a cleaner and more sustainable energy supply. We are investing in renewable energy, participating in the Collective Virtual Power Purchase Agreement (CVPPA) project launched by The Fashion Pact that will help spur the adoption of renewable electricity by investing in new green power infrastructure in Europe from 2023.
We are also continuing to think about how we can integrate more sustainable practices throughout our value chain and the acquisition of a stake in Conceria Superior S.p.A. will give us more oversight of our leather supply chain, as well as improve quality control and foster skills and craftsmanship through a more vertically integrated supply chain.
We have also made important progress in understanding the impact ofour raw materials at each level of our supply chain, so that we can start to measure and understand our impact on biodiversity. The next step will be to consider where we can take action, and we look forward to continuing our work with our suppliers and partners in the coming months and years to achieve our goals.
Creating an inclusive culture is another critical aspect of our sustainability journey and ensuring that the Group and its brands continue to attract and retain a diverse range of talent is the real challenge. But this cultural change can only happen if we involve everyone in our organization. We will keep investing in training and education programs, that will help us to protect and value diversity and inclusion over the long term, build an open dialogue and gather different perspectives directly from people on diversity, equity and inclusion.
I believe sustainability is not only important here and now, but also in creating a greener planet for future generations. I am particularly proud of the work we are doing with our Sea Beyond initiative, which has launched further educational projects on marine preservation this year, investing in future generations’ sustainability literacy so that more young people can understand the importance of our oceans.
Beyond our core pillars of Planet, People and Culture, we have continued to weave sustainability into everything we do as a business. We have established a Sustainability Committee to oversee the implementation of our sustainability strategy. We have also formed an Operating Committee, made up of leaders from across our business, to help equip departments with the resources they need to accelerate progress against our goals. With this progress, we are building sustainability into the heart of our business. Our progress this year has laid the foundations for change across our value chain in the years to come. By continuing to drive sustainable change, we will not only remain relevant and inspiring to our customers, but also deliver value for our business and the people and communities it supports.
Prada Group Head of Corporate Social Responsibility