(HONG KONG STOCK CODE: 1913)

2 0 19 S O C I A L R E S P O N S I B I L I T Y R E P O R T
 TAB L E O F C O N T E N T S

LETTER TO STAKEHOLDERS 3 4 . H U M A N CA P I TA L 42
4.1 Workforce 43
1 . THE PRADA GROUP 4 4.2 Diversity and equal opportunity 45
1.1 History 5 4.3 Diversity and Inclusion Advisory Council 46
1.2 Value chain 8 4.4 Prada Academy and skills development 46
1.3 Creativity and excellence 11 4.5 Talent attraction and retention 49
1.4 Customer centricity 12 4.6 Worker safety 51
1.5 2019 Highlights 13 4.7 Group’s qualified vendor list procedure 52

2 . RESPONSIBLE MANAGEMENT 16 5 . CULTURAL INITIATIVES 54

2.1 Governance model and institutional 5.1 Shaping a Sustainable Future Society 55
compliance 17 5.2 Fondazione Prada 56
2.2 The Group’s ethical values 19 5.3 Prada Mode and “Conversations”
2.3 Risk management 22 projects 60
2.4 Trademark protection 24
2.5 Collaborations and cooperations 28 6 . NOTES ON THE METHODOLOGY 62
2.6 Ties with the community 31 6.1 The material aspects identification 62
6.2 The reporting process 66
3 . E N V I R O N M E N T 33
3.1 Preservation of the territory 34 7 . GRI CONTENT INDEX FOR
3.2 Environmental impact mitigation 35 "IN ACCORDANCE" CORE OPTION 68
3.3 Responsible sourcing and use of
resources 38
L E T T E R T O S TA K E H O L D E R S

Nowadays sustainability topics, par ticularly environmental and social ones,

are shared at ever y level, ranging from individuals to institutions. Even more
significant, they represent sound values that transcend all cultures.

Corporations, a basic component of civil society, as well as families and public

institutions must share full responsibility for the profound change underway
and must contribute to an improvement in the living conditions of the future
generations.

The Prada Group took on this commitment long ago with projects that have been
well received both by the local communities, where our manufacturing facilities
are located, and by a wider public that has par ticipated in our cultural initiatives,
sharing with us the fundamental values of our civilization: in essence, the beauty
of nature and the grandeur of the human spirit.

Never theless, we believe that it is necessar y to continue to dedicate growing

effor ts to the pursuit of each of the challenging objectives in which the United
Nations has ar ticulated the project for a sustainable world where, as suggested by
one of the founding fathers of our culture, relationships among people and with
nature are inspired by the principle of “frui” (enjoyment) and not “uti” (use).

Carlo Mazzi
Chairman of Prada S.p.A.
M i l a n , M a rc h 1 8, 2 0 2 0
 1. THE PRADA GROUP
T h e Pr a da Grou p i s one of th e wor l d l eaders i n th e luxur y goods se ctor whe re
i t op e r ate s w i th th e Pr a da, Mi u Mi u , Chu rc h’s and Car Sh oe br ands in the de sign,
p roduc t i o n a n d d i s tr i but i on of lu xur y h andbags , l eath er go ods, foot we ar, appare l
a nd a cce s so r i es . Th e Group al so oper ates i n th e eyewear and fr agr ance industr ie s
u nd e r s p ec i f i c l i ce n s i n g agreement s s t i pulated wi th i ndustr y le ade rs, and with
th e a cqu i s i t i o n o f Pa s t i ccer i a Marc h es i 1824, i t h as made it s e ntr y into the food
i ndu str y, w h e re i t i s p o s i t i oned at th e h i gh es t l evel s of qu alit y.

At D ecem b er 31, 2 019, th e G roup’s product s were sol d i n 7 0 countr ie s wor ldwide
th rough 6 4 1 Di re c tl y O per ated Stores (DOS) and a sel ecte d ne t wor k of luxur y
d e p a r tm en t s to re s , i n d ependent ret ai l ers and fr anc h i se s tore s.
1.1 H I S T O R Y

The Prada brand dates back to the beginning of the last

century. In 1913, Mario Prada opened a luxury store
in the Galleria Vittorio Emanuele II in Milan, selling
leather handbags, travelling trunks, beauty cases, luxury
accessories, jewels and ar ticles of value. Thanks to
its exclusively designed goods, handcrafted using fine
materials and sophisticated techniques, Prada rapidly
acquired wide popularity across Europe.

In 1919, Prada became an official supplier to the Italian

Royal Family. Since then, Prada has been able to display
the House of Savoy coat of arms and knotted rope design
on its trademark logo.

The Group saw a turning point in the development of

its activities at the end of the Seventies, when Miuccia
Prada, Mario Prada’s granddaughter, launched a
par tnership with Tuscan businessman Patrizio Ber telli.
This par tnership combined creativity and business ideas
laying the foundations of the international expansion
that was to come. Patrizio Ber telli broke new ground in
the luxury goods sector, introducing a business model in
which he kept direct control over all processes, applying
excellent quality criteria across the entire production
cycle. Miuccia Prada's creative talent and avant-garde
approach attracted the attention of the global fashion In 1977, Patrizio Ber telli consolidated the production
industry, while her ability to look at the world from an resources that he had built up over the previous ten
unconventional vantage point allowed her not only to years in the leather goods segment and obtained an
anticipate but, quite often, to set new trends. exclusive license from Miuccia Prada to produce and
distribute leather goods bearing the Prada brand name.
In the following years, the activities of the two families
were gradually brought together within a single Group.

In 1983, the Prada family opened a second store in the

prestigious Via della Spiga in Milan, one of Europe’s
key shopping destinations. The new store showcased
the new brand image as it blended traditional elements
with a modern architectural setting: a revolution and a
true benchmark for luxury retail.

In response to the growing appreciation for Prada designs,

the women’s range was extended from leather goods to
include the first footwear collection in 1979 and the first
womenswear apparel collection as presented in Milan

1. THE PRADA GROUP 5

in 1988. At the same time, a process of internalization a worldwide recognized symbol of top quality British
begins with the openings in New York and Madrid, tradition and sophisticated elegance.
followed by London, Paris and Tokyo.
In 2001, the Prada “Epicenter ” store, designed in
In 1993 Prada made its debut in the men’s segment with collaboration with Rem Koolhaas, opened on Broadway,
its first men’s apparel and footwear collection. That New York. This was the first store of the “Epicenters”
same year, Miuccia Prada’s creative inspiration led to the project whose purpose was to rethink the shopping
establishment of a new brand ― Miu Miu ― designed for concept with a new approach and to try out innovative
women who are trendy, sophisticated and par ticularly interactions with customers. A second “Epicenter ” store
fashion-forward and aware of avant-garde. Miu Miu was opened in Aoyama, Tokyo, followed by a third, on
now offers women’s ready-to-wear, bags, accessories, Rodeo Drive, Beverly Hills in 2004. During the same year,
footwear, eyewear and fragrances. Prada acquired control of Car Shoe, a historic Italian
brand renowned for its exclusive car-driving moccasins.
Also in 1993, alongside their entrepreneurial activity,
Miuccia Prada and Patrizio Ber telli created “Milano In 2003 Prada entered into a licensing agreement with
Prada Ar te”, then become “Fondazione Ar te”, to develop the Italian eyewear manufacturer Luxottica, a global
their interests in ar t and culture in general. leader in the eyewear industry which currently produces
and distributes eyewear under the Prada and Miu Miu
In 1997, inspired by his passion for spor ts, Patrizio brands. Also in 2003 a new par tnership was established
Ber telli created the “Prada Challenge for the America’s for the production of fragrances, which first release,
Cup 2000” sailing team. Prada’s leisure products, with Amber, was launched in 2004.
the distinctive “Linea Rossa” (“red line”) logo, were also
launched in 1997. In 2006, Miu Miu organized its first fashion show in
Paris to better characterize its own identity.
In 1999, the prestigious Church’s brand, established in
1873 in Nor thampton, became par t of the Prada Group; The first Prada Phone by LG was launched in March
the investment was initially shared with a private equity 2007; it was the world’s first touch screen cell phone.
firm, and then Prada completed the acquisition in 2007. The successful par tnership was renewed in 2008 and in
The brand, specialized in high-end leather footwear, is 2011 with two fur ther releases.

1. THE PRADA GROUP 6

On June 24, 2011, Prada spa was successfully listed on
the Main Board of the Hong Kong Stock Exchange.

In March 2014, Prada spa announced the acquisition of

control of the company Angelo Marchesi srl, owner of
the historical Milanese patisserie founded in 1824, thus
marking the entry into the food segment.

In 2015, the Prada Group completed the acquisition

of the French Tannerie Mégisserie Hervy to fur ther
strengthen its know-how along the entire production
chain. That same year, the Prada Group and Coty Inc.
launched the first Miu Miu fragrance. The commercial
development of the Marchesi brand began to take shape
in September with the opening of the first patisserie in
via Montenapoleone, Milan.

2016 featured extensive manufacturing investments

leading to the completion of a new leather production site
and to the renovation of five factories between Tuscany
and Umbria, in Italy. The first construction phase of the
new logistics hub for finished products was completed
in Tuscany.

In 2017 a restyling plan of the Prada and Miu Miu stores

was coupled with a broad program of pop-up events to
fur ther suppor t retail activities. Also in 2017, the Prada
Group was admitted to the cooperative compliance In October of 2019, Prada obtained full control of the
regime with the Italian Revenue Agency introduced with retail network through the acquisition of Fratelli Prada
Italian Law Decree 128 of 2015. spa, the company responsible for operating the Prada
monobrand stores in Milan under a franchising agreement
In 2018, besides the usual Milan and Paris fashion effective for more than ten years. In December, Prada
shows, the Group launched two major events for the spa and L’Oréal announced the stipulation of a long-term
presentation of pre-collections: Miu Miu Croisière at licensing agreement for the creation, development and
the Hotel Regina in Paris and the Prada Resor t at the distribution of Prada brand luxury cosmetic products. The
Piano Factory, where the Group's offices are located in agreement, effective from January 1, 2021, will enable
Manhattan; the latter was also broadcast live on Times to connect with a more extensive clientele worldwide
Square's big screens. The same year, Prada officially and to maximize the brand potential and its already
star ted its adventure as Title and Presenting Sponsor of strong identity in the fragrance industry. Finally, during
the 36th edition of the America's Cup, as well as Main the year, the Prada Group announced the adoption of a
Sponsor of the sailing team of Luna Rossa, Challenger fur-free policy.
of Records of the prestigious competition. Miuccia
Prada received, in the same year, the Outstanding
Achievement Award from the British Fashion Council
for her extraordinary contribution to creativity and the
global fashion industry.

1. THE PRADA GROUP 7

 1.2 V A L U E C H A I N

Fashion Buying Session

Shows (Retail) SOURCING

STYLE & DESIGN COLLECTION Quality Control Worker Safety DISTRIBUTION

AND PRODUCT DEVELOPMENT OF ORDERS

Showroom Sales Campaign PRODUCTION

Presentation (Wholesale)

The Group's business model is based on a value tradition and quality standards continue to attract
creation process that combines ar tisanal skills with the talented people from all over the world who want to share
industrialization of production processes. Thanks to this the creative experience. This results in teams involved at
integration the Group, leveraging on its stylistic skills, all stages of the creative process: from fashion design to
is able to translate avant-garde concepts into innovative manufacture, from architecture to communication and
exclusive products, combining production capacity with photography, from store interior design to all unique and
rigorous control over qualitative standards, also placing special projects in which the Prada Group is involved.
par ticular emphasis on the continuous development of
know-how and the protection of ethical values along 1.2.2 FASHION SHOWS AND COLLECTIONS
the entire supply chain. The collections are inspired by the fashion shows, which
are always rich in content and impeccably executed,
1.2.1 CREATIVITY transforming innovative fashion concepts into commercial
Creativity is the first step of the value creation process. products.
Miuccia Prada, together with a qualified team of
designers, has the ability to combine intellectual 1.2.3 ORDER COLLECTION
curiosity, the pursuit of new and unconventional ideas, New collections are unveiled at the Group's brand-
and cultural and social interests with a strong sense of specific showrooms, where a number of presentations
style. This has made it possible to establish in Prada a and analyses are held with in-house and independent
genuine “in house” design culture, also based on method merchandisers and buyers from all over the world.
and discipline, which guides everyone in the creative By sharing the process that led to their creation and
process. producing variations through the lens of local markets,
each end consumer is given access to the innovation,
This unique approach enables Prada to anticipate and exclusivity and quality that are the hallmarks of the
often influence trends, continually experimenting with Group’s merchandise.
new designs, fabrics, leathers and production techniques.
This experimentation and exchange of ideas are the 1.2.4 SOURCING
essential components of the design content found in Selecting the right suppliers is fundamental for achieving
each of the Group’s products. The time spent at the the highest quality standards. Historically, the Group has
“drawing board” and in the “fitting room” on research always worked with the best suppliers of raw materials,
and stylistic development for the brands is fundamental in their own right leaders and reference points in their
to defining each collection in which apparel, footwear sectors. In most cases, these are long-term relationships,
and accessories complement one another, defining a initiated following a rigorous selection process, whose
consistent and representative image of the brands. strict parameters are intended to ensure the highest
standards of technical and economical, as well as ethical
Prada’s flair and the strong appeal of the Company’s reliability. The Prada Group has always valued long-

1. THE PRADA GROUP 8

term relationships built on steady interactions: these consumers. Each industrial division employs technicians
par tnerships are crucial not only for the mutual growth whose responsibility is to ensure the achievement of
and improvement but also for sharing a single, strategic these goals through strict controls over incoming and
objective hinging on quality, excellence and the creation outgoing materials and daily visits to external production
of value over the medium to long-term. sites. Product and process controls not only ensure that
standards are being met, but also contribute to ongoing
1.2.5 PRODUCTION improvement.
The Prada Group’s products are manufactured in the 22
directly owned production sites (19 in Italy, 1 in England, Prada has set up an Industrial Compliance Committee
1 in France and 1 in Romania), in addition to a wide to ensure that the production and distribution of its
network of suppliers. Most of the Group’s par tners are products worldwide always comply with applicable
craft ar tisan workshops with extensive experience and a laws. The Committee’s objective is compliance with all
strong sense of tradition. They are provided with carefully current legislation, and the development of standards
selected materials and with all technical specifications — and procedures that are often more stringent than those
from patterns to data sheets realized in-house — needed required by law. The ultimate goal is to be proactive with
to produce first the samples and then the merchandise. respect to the entire system, made up of employees,
The Group’s experienced technicians provide constant clients, manufacturers and the outside environment as
suppor t to external manufacturers during all production a whole.
phases.
1.2.7 DISTRIBUTION
The production sites represent the best expression of the The retail network is regularly revised and improved in
manufacturing tradition of the Prada Group, harmonizing order to offer a better customer experience.
the ability of combining traditional ar tisanal skills with Over the years, the Group has expanded its distribution
state-of-the-ar t technological processes, designed network to 641 Directly Operated Stores (DOS) in the
to achieve and maintain uncompromised standards of most prestigious locations of the major international
excellence, quality and workmanship. shopping destinations, consistent with the image,
heritage and exclusivity of each brand. This extensive
Within the framework of the Group's industrial network is a true asset for the Group as it showcases
development and integration strategy, in 2019 two the new collections and represents a contact point with
buildings dedicated to carrying out quality control on the customer. The stores serve as more than a primary
finished leather goods and footwear products have been sales function as they are also an impor tant means of
completed and opened in the new Logistics Hub, in communication; they are the true ambassadors of the
Tuscany (Italy). These new spaces are par t of a broader brand, conveying its image consistently and categorically.
industrial development project aimed at the progressive The DOS allow the Group to monitor in real time the
internalization of the most delicate production phases sales per formance of the various markets for each brand
in order to improve efficiency, strengthening process and product category.
control, while preserving the quality and excellence
typical of Prada products. These sites stand out for the The wholesale channel (depar tment stores, multi-brand
quality of the spaces and for the high technology used stores, franchisees and e-tailers) provides additional
by every single function. venues selected for their prestige of location and enables
direct, immediate comparison with the market. In recent
1.2.6 CONTROL years, the overhaul of this channel has gradually reduced
The Group employs considerable resources to ensure the number of wholesalers, in keeping with the Group’s
excellence in the quality of its raw materials and retail strategies and brand positioning. In addition, the
processing of its products, and in such manner also Group's developments in the digital world have led to
protects the health and safety of the employees end new par tnerships with top on-line retailers ("e-tailers").

1. THE PRADA GROUP 9

“Close observation and curiosity
about the world are at the very
origin of the Prada Group’s creativity
and modern outlook.
In society — and therefore in
fashion, which in many ways reflects
it — the only constant is change.
The transformation and innovation
of conventions, underlying all
evolution, have led us to interact
with different cultural spheres both
near and apparently far, helping us
capture and anticipate the spirit of
the times.
Today this is no longer enough:
we must be the agents of change,
with the flexibility to translate the
demands of the market and society
into tangible actions that guide us
every day in our business.”

Miuccia Prada and Patrizio Bertelli

10
1.3 C R E A T I V I T Y A N D E X C E L L E N C E

Prada's defining asset, know-how, creates continuity Retracing the history of the company, it becomes very
and balance between creativity and discipline, tradition clear how incursions into seemingly distant worlds, such
and technological progress, craftsmanship and industrial as cinema, architecture, literature, spor t and ar t, find a
production. common ground in the creative processes. Creativity is
inexhaustibly linked to those special projects that over
Guided by the style inspiration of Miuccia Prada, time not only define images, fashion shows and store
universally recognized as a reference for the entire settings, but also outline the collections that are joined
fashion industry, the team of designers and craftspeople together by an extremely fluid relationship.
keep the Group’s values and brand identities alive, yet
constantly re-interpret them in a contemporary light The strong integration of design, product development
without forsaking their unique concept. and direct and outsourced production allows Prada to
maintain strong control over its know-how and quality
Fashion, fast and increasingly difficult to interpret, standards throughout the supply chain.
requires a quick response to the prevailing cultural
trends. Therefore, each collection is like a snapshot that The vast majority of the prototypes and samples, as
captures a specific moment of our time, but looking well as a par t of the finished products and the most
carefully at the aesthetics represented in the different delicate phases of production, such as the controls over
seasons, it is possible to perceive a superior continuity, all raw materials and the product accessories (also for
a leitmotiv that drives the style. suppliers), and the cutting of hides, are produced at the
Group's own facilities.

1. THE PRADA GROUP 11

1.4 C U S T O M E R C E N T R I C I T Y

In 2019, the Retail Innovation depar tment, repor ting the store visit. The plan involved dozens of the Group's
to the Marketing Direction, was set up to develop and employees, selected transversally by market, role and
innovate the omnichannel experience of the Prada experience, and will conclude in 2020 with the adoption
Group's customers, consistently with the organization's of the necessary changes in strategies, processes and
growth strategy. technologies.
Also in 2019, an ar ticulate cross-channel system
With this new structure, the Group merges resources and to measure the customer experience (Net Promoter
skills into a single area to serve the customer 's central Score) was developed and activated for the purpose
role. The purpose of the Retail Innovation depar tment of continuously setting and designing strategies and
is to foster a culture of innovation in the multi-channel processes for improving the customer experience.
customer experience while striving to meet the sales
objectives in terms of both numbers and improved Digital innovation, and more specifically the development
business metrics. The new depar tment is also responsible of the e-commerce channel, is of prime impor tance for
for conveying to customers an effective understanding the Retail Innovation depar tment. The Prada Group has
of the brand heritage, the product storytelling and the already transformed this area, which remains central to
significance of the buying experience, and ultimately the implementation of a customer centric omnichannel
of increasing the customer engagement and customer strategy.
loyalty.
Lastly, wor th noting is the strategic redefinition of the role
One of the first projects under taken was the of the Customer Service depar tment: a new customer-
implementation of an ambitious plan to innovate the oriented operating model that allows a personalized,
value of the retail experience, considered not only as time integrated and multi-channel relationship, inclusive of
spent in the store, but also in its spatial – physical and the oppor tunity to live a shopping experience in line
digital - and temporal senses - before, during and after with the Group's values and standards.

1. THE PRADA GROUP 12

1.5 2 0 1 9 H I G H L I G H T S

€3.2 13,988 62% 641

Billion* Employees Women DOS
2019 at December 31, at December 31, at December 31,
Revenues 2019 2019 2019

€2,902 €302 Million 22 €13 Million*

Million* Investments Industrial sites Investments in the
Economic value in 2019 at December 31, community in 2019
distributed 2019
to stakeholders
in 2019

* Economic value distributed to stakeholders in compliance with GRI Standards 201 - 1 (reference at page 15).

2019 featured impor tant commercial decisions which, The growth of full-price retail sales, namely the positive
relying on the excellence that consumers throughout the market response, represents an impor tant achievement
world associate with the Group’s brands, led to obtaining of the whole action plan.
impor tant results under a strategy of long-term growth.
This result, which was par ticularly evident in the latter
Markdown sales were eliminated at the directly operated months of the year, enabled to completely absorb the
stores, and a stricter policy was adopted in the wholesale losses in revenue following the termination of discounted
channel, both in terms of geography and volumes. These sales and ensuing from the social unrest in Hong Kong.
decisions, in addition to a product offer able to meet
tastes across generations, yet remained consistent with The primary level par tnerships that the prestige of the
the brand identity, enabled to enhance the product value brands can attract, also in different fields, represent an
and optimize the pricing choices across the channels. impor tant tool for observing society and its changes.

1. THE PRADA GROUP 13

From a product standpoint, it is wor th mentioning two Meanwhile, two new editions of “Prada Mode”, the
high symbolic value capsule collections: “Prada Re- traveling social club focusing on contemporary culture,
Nylon” and “Prada for adidas Limited Edition”. The first came to life, first in Hong Kong and then in London. For
one related to a limited edition of products realized Miu Miu, two new episodes of the Women’s Tales film
with re-generated nylon, to highlight the impor tance series were released.
of environmental awareness and responsibility and to Consumer interaction with such an intensive creative
announce the ambitious plan to transition to the new work was the focus of a communication plan that
sustainable material; the second one which paid tribute invested considerable financial resources to ensure very
to the heritage of the two brands, and marked the extensive geographical and channel coverage of the
beginning of an impor tant business alliance for the two communication content regarding products, the brand
companies. and the Group’s profile in general.

1. THE PRADA GROUP 14

Investments were made to complete impor tant projects
for bolstering the Group’s image and its store network. A
prestigious building was purchased in Madrid, strategic
for expanding the Spanish market, and the company
Fratelli Prada spa was purchased, thanks to which the
Group now fully controls the retail network. Impor tant
par tnerships with leading technology suppliers were
established to assist the marketing and merchandising
processes.

In 2019 the Patent Box Agreement was signed with the

Italian Revenue Agency, under which the Group obtained
an income tax benefit for the tax periods from 2015 to
2019, based on the recognition of intellectual proper ties
as the result of investments similar to R&D.

GRI-201 DISCLOSURE 20171 20182 20193

DIRECT ECONOMIC VALUE
GENERATED AND DISTRIBUTED Amounts thousands of Euro

Economic Value Generated 3,062,866 3,152,185 3,232,054

Economic Value Distributed 2,885,678 2,901,378 2,901,673

Operating costs 1,753,276 1,839,685 1,968,912

Value distributed to Employees 696,759 725,230 752,049

Value distributed to Banks and Bond Holders 16,876 17,608 12,044

Value distributed to Government Authorities 85,156 95,184 951

Value distributed to Investors 308,073 197,641 154,642

Value distributed to the Community 25,538 26,030 13,075

Economic Value Retained 177,188 250,807 330,381

1
12 months pro-forma from Jan. 1 to Dec. 31, 2017
2
12 months from Jan. 1 to Dec. 31, 2018
3
12 months from Jan. 1 to Dec. 31, 2019

The consolidated income statement for 2019, presented operating costs for communication activities and by the
according to the model of economic value generated increase in labor costs following the increase of the
and distributed defined by the GRI-201 disclosure (GRI workforce in the sales area; the extraordinary income
Standards), shows a retained economic value of Euro almost offset the value distributed to the Government
330.4 million, up by Euro 79.6 million compared to the Authorities.
twelve-month period of 2018.
The difference is mainly attributable to a higher economic
value generated in 2019.
The economic value distributed remains unchanged
as the registration of the extraordinary income due to
the Patent Box (Euro 102 million) was offset by higher

1. THE PRADA GROUP 15

 2 . RESPONSIBLE MANAGEMENT
The Group combines the distinctive elements of its know-how with principles inspired
by the enhancement of people, the protection of the environment, the respect of ethical
values and the promotion of culture, believing that in this way it can pursue economic
development for its own benefit and the interests of the communities and places where
it operates.
2.1 GOVERNANCE MODEL AND INSTITUTIONAL COMPLIANCE

SHAREHOLDER’S
MEETING

BOARD OF
EXTERNAL AUDITORS
S TAT U T O R Y A U D I T O R S

AUDIT COMMITEE

NOMINATION
CORPORATE COMMIT TEES COMMITEE
AFFAIRS
REMUNERATION
BOARD OF COMMITEE
INTERNAL AUDIT INSTITUTIONAL AREA
DIRECTORS

INVESTOR
RELATIONS
SUPERVISORY BODY

CHIEF EXECUTIVE OFFICERS

MANAGEMENT

The corporate governance model adopted by the a supervisory body, the Board of Statutory Auditors, and
Company consists of a set of rules, regulations, practices an auditing and accounting control body, the audit firm.
and procedures structured to govern the Company The Company has also adopted a system of proxies and
establishing efficient and transparent operations within powers based on criteria of responsibility and aimed at
the Group, with the aim of protecting the stakeholder ensuring an efficient and regular per formance of the
rights and creating value for the communities. The activity in accordance with the procedures adopted by
corporate governance model adopted by the Company the Company itself.
is also in compliance with the applicable regulations,
and in par ticular with the principles of the Corporate With a view to achieving sustainable and balanced
Governance Code contained in Appendix 14 of the Listing development, the Company views diversity at the Board
Rules of the Hong Kong Stock Exchange. level as an essential element to allow a constructive
dialogue to improve corporate governance. All Board
The Company has adopted a "traditional" governance appointments are based on meritocracy and candidates
system, in compliance with the Italian Civil Code, are selected based on objective criteria and the
consisting of a management body, the Board of Directors, professional contribution that each of them can make

2. R E S P O N S I B L E M A N A G E M E N T 17
to the operation of the Board of Directors itself. The BOARD OF DIRECTORS
Board diversity policy has been considered and adopted
Executive Directors Role Gender Age
by the Board and encompasses a wide range of factors,
Carlo Mazzi Chairman M > 50
including but not limited to gender, age, cultural and
educational background, professional experience, skills, Miuccia Prada Bianchi Chief Executive Officer W > 50
knowledge and nationality.
Patrizio Ber telli Chief Executive Officer M > 50

The Board of Directors is made up of nine members and Alessandra Cozzani Chief Financial Officer W > 50
was appointed at the Shareholders' Meeting held on April
Non-Executive Directors
27, 2018 for a term of three financial years (2018 -2020),
namely until the approval of the financial statements Stefano Simontacchi M 30 - 50

for the year ending December 31, 2020. The Board

Independent Non-Executive Directors
of Directors is composed of four executive Directors,
Gian Franco Oliviero Mattei M > 50
one non-executive Director and four independent non-
executive Directors. All Directors have distinguished Giancarlo Forestieri M > 50

themselves in their respective areas of exper tise and Sing Cheong Liu M > 50
provides valid suppor t to the Board of Directors in their
Maurizio Cereda M > 50
respective functions.

The Board of Directors is responsible for the ordinary and The Board of Directors is suppor ted by the mainly
extraordinary management of the Company. The Board preliminary and advisory activity conducted by the
has the power to carry out all acts it deems advisable to committees it sets up, namely the Audit Committee,
implement and attain the Company’s corporate purpose, the Remuneration Committee and the Nomination
except for those acts reserved by laws or by the By- Committee. Each Committee is constituted for the
laws for the competence of the Shareholders' General majority by Independent Non-Executive Directors,
Meeting. including the role of Chairman.

In par ticular, the Board of Directors is responsible The primary duties of the Audit Committee are to provide
for defining the overall strategy of the Group and for the Board with an independent view of the effectiveness
approving annual budgets, extraordinary transactions, of the Company’s financial repor ting process and its
transactions with related par ties and all other initiatives internal control and risk management systems.
with a strategic impact. The Board is also responsible for
reviewing the operational and financial per formances of AUDIT COMMITTEE

the Company and the Group, and it examines in detail Role Gender Age

the economic per formances at each quar ter, updating, Gian Franco Oliviero Mattei Chairman M > 50
if necessary, the annual budget.
Giancarlo Forestieri M > 50

The Chairman of the Board of Directors is the Company’s Maurizio Cereda M > 50

legal representative, and guarantees the proper

application of corporate governance practices and
procedures and supervises their application; he also
convenes the meetings and presides over the activities
of the Board of Directors. The Chief Executive Officers
are responsible for managing the Company’s business
through the implementation of the strategies outlined
by the Board.

2. R E S P O N S I B L E M A N A G E M E N T 18
The primary duties of the Remuneration Committee are BOARD OF STATUTORY AUDITORS
to make recommendations to the Board on the policy
Role Gender Age
for the remuneration of the Company’s Directors and
Antonino Parisi Chairman M > 50
top management.
Rober to Spada M > 50

REMUNERATION COMMIT TEE David Terracina M > 50

Role Gender Age

Maurizio Cereda Chairman M > 50 In compliance with Italian Legislative Decree no. 231 of
Gian Franco Oliviero Mattei M > 50 June 8, 2001, the Company has established a supervisory

Carlo Mazzi M > 50 body whose primary duty is to ensure the functioning,
effectiveness and enforcement of the Company’s Model
of Organization, adopted by the Company pursuant to
The Nomination Committee is primarily responsible for
the Decree. The Supervisory Body consists of three
determining and revising the policy for the nomination
members selected among qualified and experienced
of Directors, assessing the independence of Independent
people and nominated by the Board of Directors.
Non-Executive Directors on an annual basis, and making
recommendations to the Board regarding the structure, SUPERVISORY BODY
size and composition of the Board.
Role Gender Age

NOMINATION COMMIT TEE David Terracina Chairman M > 50

Role Gender Age Gianluca Andriani M 30-50

Gian Franco Oliviero Mattei Chairman M > 50 Gian Franco Oliviero Mattei M > 50

Sing Cheong Liu M > 50

Carlo Mazzi M > 50 More detailed information on corporate governance is

provided in the Corporate Governance section contained
in the 2019 Annual Repor t.
The recommendations made by the advisory committees
are regularly submitted to the Board of Directors for
2.2 T H E G R O U P ’ S E T H I C A L V A L U E S
discussion and adoption.

The Prada Group is committed to operating with full

The Board of Statutory Auditors is the supervisory body
respect for the value of the individual and for the human
in charge of verifying compliance with applicable laws,
and workers' rights enshrined in Italian and international
regulations and the By-laws, as well as compliance with
covenants and declarations, such as the United Nations
the principles of sound management and, in par ticular,
Universal Declaration of Human Rights, the International
the adequacy of the organizational, administrative and
Labor Organization (ILO) Declaration on Fundamental
accounting structure adopted by the Company and the
Principles and Rights at Work, and the Organization
proper operation thereof.
for Economic Co-operation and Development (OECD)
Guidelines for Multinational Enterprises.
The Shareholders' Meeting held on April 27, 2018
appointed the current Board of Statutory Auditors,
The Prada Group is committed to creating, developing
consisting of three statutory auditors and two alternate
and strengthening cooperative ties with the communities
statutory auditors for a term of three fiscal years
where it does business, in social and environmental
(2018-2020), namely until the approval of the financial
terms, as they are deemed necessary for inclusive growth.
statements for the year ended December 31, 2020.

2. R E S P O N S I B L E M A N A G E M E N T 19
2.2.1 CODE OF ETHICS Sustainability is a founding element of the Group’s
The Prada Group considers respect for ethical principles identity and is deeply rooted in the Company’s strategy,
to be a basic pillar of its values and success. The Group even from a communication point of view. During the
believes in and operates with: year, the key management of the Company – the co-
CEOs Miuccia Prada and Patrizio Ber telli, the Chairman
• compliance with legislative and regulatory provisions
Carlo Mazzi and two Directors, Alessandra Cozzani (CFO)
in all countries in which it operates;
and Lorenzo Ber telli (Head of Marketing and Head of
• legitimacy, loyalty, correctness and transparency;
Corporate Social Responsibility) – deepened the most
• respect for privacy;
distinctive features of sustainability in Prada through an
• respect for the value of human beings;
analysis referring to the 17 United Nations Sustainable
• respect for competition, as a crucial instrument in the
Development Goals (SDGs).
development of the economic system;
• respect for the environment and awareness about
environmental protection.

Since 2007, these principles have been given formal

expression in the Prada Group’s Code of Ethics. The
Code contains the guiding principles of the Organization,
being one of the main pillars of the Group’s governance
model and shared with all the employees, collaborators
and suppliers, and is suppor ted by a set of procedures
in order to turn these values into daily actions.
The adoption and application of the Code of Ethics
is essential for the achievement of the Company’s
primary objective, consisting in the creation of value
for shareholders, employees, customers and for the
community as a whole.

The Group promotes knowledge of the Code through

various means such as online publications, direct
communications and, by procedure, as par t of the supply
or commercial agreement with most of the par tners, as
it is considered a prerequisite for the establishment of
all contractual relationships.

2.2.2 SUSTAINABILITY TARGETS

At the beginning of 2019, the Prada Group decided to
formally commit to sustainable goals towards the entire
social community where it operates. To this end, the
Group drafted its Sustainability Policy, which has been
published and shared also through a series of video-
interviews featuring the top management. These videos
describe the company’s commitment to sustainability The commitment to numerous aspects of social and
based on the three priorities for action – people, environmental development, such as the investment in
environment and culture - where it believes it can provide culture as an opportunity for aggregation, the cooperation
the greatest contribution in terms of returning value to with stakeholders, the impor tance of diversity and
its own industry and to benefit society as a whole. equal oppor tunities, the investment in new sustainable

2. R E S P O N S I B L E M A N A G E M E N T 20
materials and the quality of working environments, and
their harmonious integration with the local community,
has enabled Prada representatives to offer concrete
examples of the Group’s sustainability strategy.

The Sustainability Policy was approved by the Board of

Directors of Prada spa on March 15, 2019 and may be
consulted on the pradagroup.com website.

THE FASHION PACT

2019 clearly marked a turning point for the fashion
world in climate change and environmental protection
“Our par ticipation to the
challenges. Fashion Pact initiative
is a natural progression of the
On the occasion of the G7 meeting in Biarrit z, held at
Prada Group commitment in
the end of August 2019, 32 world leaders of the fashion
industry, including the Prada Group, signed the Fashion sustainability, a path made
Pact. This coalition, which sees luxury, fast-fashion, of various projects in the
spor tswear companies, suppliers and retailers working
environmental, cultural and
side by side, aims to define concrete targets in three key
areas that are crucial for the preservation of the planet: social sphere.
the fight against climate change, the conservation of
biodiversity and the protection of the oceans.
From now on, the possibility
The set of goals, which all the signatories are committed to target these goals together
to achieving over the next few years, are not only with other impor tant fashion
declarations but represent a commitment that will be
companies represents
pursued through action plans with solid scientific bases,
such as by joining the Science-Based Target 1 (SBT)
a concrete hope for a
initiative. sustainable development that
nobody could reach all alone.”
In October 2019, 24 new companies signed the
agreement, bringing the total number of signatories to Carlo Mazzi,
56, collectively representing 250 brands. Chairman of Prada S.p.A.
On this occasion, impor tant decisions were taken such as
the determination of the Fashion Pact’s governance and
the choice of priorities that each company is committed
to promoting within the overall coalition program.

During 2019, the Prada Group assessed the actions needed

to achieve these objectives and star ted to implement an
action plan to meet the top-priority targets.

1 The purpose of the SBT initiative is to align the corporations’ objectives

relating to the reduction of greenhouse gas emissions with the data provided
by climatology.

2. R E S P O N S I B L E M A N A G E M E N T 21
“This transaction This new facility is a 50 million Euro five-year term
loan which interest rate can be reduced following the
demonstrates that
achievement of targets related to:
sustainability is a key element
for the development of the • the number of stores assigned of a LEED Gold or
Platinum Cer tification;
Prada Group, increasingly
• the amount of training hours for the employees;
integrated into our strategy. • the use of Prada Re-Nylon (regenerated nylon) for the
We are confident that this production of goods.

collaboration with Crédit

Independent third-par ty bodies will annually review the
Agricole, a leader in its sector, achievement of these objectives.
will help to extend the benefits
2.3 RISK MANAGEMENT
of a responsible business to
the financial world.” Given the complex regulatory environment, the Prada
Group assigns various depar tments and hires external

Alessandra Cozzani, specialists to keep abreast of changing laws and regulations

Chief Financial Officer of Prada S.p.A. so that it can adapt its procedures in a timely manner
and reduce non-compliance risks to a minimum levels.

The Group has structured the internal control system as a

SUSTAINABLE FINANCE process carried out by the governing bodies of the Group’s
On November 2019, the Prada Group signed a subsidiaries, by management and by the corporation in
Sustainability Linked Term Loan with Crédit Agricole general, with a view to providing reasonable cer tainty
Group, becoming the first Italian company in the luxury that control objectives will be met.
sector to under take such initiative. The operation,
while representing a small share of the Group’s total More specifically, the Board of Directors of Prada spa,
indebtedness, fits per fectly into a much wider framework referring to internationally recognized models such as the
of sustainability integration into the corporate strategy. CoSO Repor t (Committee of Sponsoring Organizations of
the Treadway Commission - international best practices),
is engaged in the continuous refinement of the Internal
Control and Risk Management systems by checking the
operation of its main components consisting of:

• control environment;
• risk assessment;
• control activities;
• information and communication;
• control system.

The internal control system helps ensure protection of

the Company's assets, the efficiency and effectiveness of
its processes, the reliability of the information provided
to its governing bodies and the market, and compliance
with laws and regulations as well as by-laws and internal
Prada Scandicci, LEED Cer tified plant
procedures.

2. R E S P O N S I B L E M A N A G E M E N T 22
The bodies involved in internal control and risk communications of behavior that could constitute a
management are the Board of Directors, the Audit violation of the Organizational Model, for instance in
Committee, the Supervisory Body and the Board of contrast with the principles set out in the Code of Ethics
Statutory Auditors, as well as the entire management, or with applicable laws and regulations.
which has the primary task of implementing all the
necessary processes and procedures to achieve the During the financial period, the Company did not also
Company’s goals minimizing the risks for the organization record any material instances of non-compliance with
through an appropriate system of controls. the applicable laws and regulations regarding bribery,
extortion, fraud and money laundering in the performance
Moreover, the Internal Auditing depar tment works in of the activities of the Prada Group.
close collaboration with the aforementioned bodies,
which, in addition to the typical assurance activities, Risk assessment consists of identifying and analyzing
assists the Board of Directors and the Audit Committee factors that could compromise the proper conduct of
in risk management activities among others. company activities and must also extend to the analysis
of the process that determines how those risks should be
With par ticular reference to production and logistics avoided or mitigated. The fact that economic, regulatory
issues, the Industrial Compliance Committee sets and operating environments are in constant flux raises
guidelines for implementing laws and regulations that the need for mechanisms that help identify and deal
affect the impor ting and expor ting of raw materials with the risks posed by such changes.
and finished goods, while providing various forms of
industrial compliance assistance to the manufacturing For the Prada Group, risks can be broken down as follows:
divisions. 1. risks relating to the international luxury goods market
or related to the general state of the economy, the
In 2019, with the aim of increasing the integration protection of intellectual proper ty rights, image and
of the control activities carried out along the supply brand recognition, and the ability to anticipate trends
chain, a multi-function working group has been set and respond to the changing tastes of consumers.
up to strengthen the on-site inspections of the Group The management of this type of risks, that can be
suppliers in order to ensure human rights protection defined typical in the sector, falls within the sphere of
and fair working conditions. sustainability according to its broader meaning, which
also includes economic issues related to the company's
In compliance with the provisions of Legislative Decree ability to create long-term value, in addition to social
n. 231 of June 8, 2001, the Company has established a or environmental ones. Fur ther description of these
Supervisory Body whose primary attribution is to ensure issues is provided in the description of the most relevant
the functioning, effectiveness and implementation of topics according to the Global Repor ting Initiative (GRI)
the organizational, management and control model standards which, for the Prada Group, basically mean:
adopted by the Company pursuant to the aforementioned economic per formance (chapter 1, paragraph 5),
legislative decree for the control of risks and the trademark protection (chapter 2, paragraph 4),
prevention of crimes in different areas and of different the search of excellence (chapter 1, paragraph 3)
nature - including but not limited to bribery and money and digital transformation (chapter 1, paragraph 4);
laundering - by Directors, employees and third par ties
2. risks specific to the Prada Group relating to the
involved in the Company’s activities.
importance of key personnel, strategy implementation,
outsourcing, legal and regulatory compliance and
All the employees can repor t anonymously to the
processing of data and information. Within this
Supervisory Body through an e-mail address available
context, the risks related to sustainability are mainly
on the Company’s Intranet events or behaviors that
associated with customer satisfaction and health
do not meet Group’s standards. In 2019 there were no
and safety (chapter 3, paragraph 3.3) and respect of

2. R E S P O N S I B L E M A N A G E M E N T 23
 human and labor rights both within the organization the competent authorities and adopts preventative and
and along the supply chain (chapter 4); defensive measures worldwide to protect its IP rights on
all on-line and off-line channels.
3. financial risks specific to the Prada Group relating to
exchange rate fluctuations, interest rate fluctuations,
The Prada Group regularly monitors registrations by third
credit risk and liquidity risk.
par ties and any possible misappropriation of trademarks,
Fur ther information is provided in the financial review designs and domain names identical to or that could be
and corporate governance sections of the 2019 Annual confused with its own distinctive marks and products.
Repor t. Any violation is tackled through appropriate action with
the competent authorities.
More information is to be found in the 2019 Annual
Repor t - Note 27 "Provisions for risks and charges" - The Group cooperates on a daily basis with the Italian
specifically for updates on investigations and disputes and international customs agencies to assist the blocking
with third par ties or authorities that involved the Prada of market entries of unauthentic products, and with the
Group in the period. police and tax authorities in order to have counter feit
products existing in the market confiscated, distribution
2.4 T R A D E M A R K P R O T E C T I O N and production processes rebuilt, and the individuals
and organizations responsible brought to justice. In
The Prada Group is actively committed to protecting its pursuing such objectives, the Group shares relevant
intangible assets. With a specialized internal depar tment information with the authorities and par ticipates in
dedicated to Intellectual Property (IP), the Group registers training events on the Company's brands and products,
its trademarks, designs, patents and domain names with so that the authorities may have everything at their

Prada adver tising campaign - Fall Winter 2019

2. R E S P O N S I B L E M A N A G E M E N T 24
 Prada adver tising campaign - Fall Winter 2019

Miu Miu adver tising campaign - Fall Winter 2019

2. R E S P O N S I B L E M A N A G E M E N T 25
 Church's adver tising campaign - Fall Winter 2019

disposal to effectively fight counter feiting and the

criminal organizations responsible for it.

It also cooperates with major associations, such

as the Istitute of Centromarca for the fight against
counter feiting, the Union des Fabriquants, and the
Quality Brands Protection Committee (QBPC), to bring
such issues to the attention of the institutions, the public
and consumers.

More accurate surveillance has been implemented

on the Internet to counter the promotion and sale of
counter feit goods on websites, e-commerce platforms
and social networks. In recent years the Prada Group
has contributed to impor tant international operations
coordinated by the Guardia di Finanza, Interpol and
Europol, sharing information on hundreds of websites
and thousands of social media accounts that illegally
adver tise the sale of counter feit products.
Car Shoe adver tising campaign - Fall Winter 2019

2. R E S P O N S I B L E M A N A G E M E N T 26
 Pasticceria Marchesi 1824 - London, 117 Mount Street

2. R E S P O N S I B L E M A N A G E M E N T 27
Thanks to close collaboration with the authorities, the the latter, CNMI is suppor ting a study, carried out in
fight against counter feiting under taken by the Prada collaboration with a Fair Wage NGO, whose purpose is
Group led to, in 2019 alone on a global level, the to assess and describe the working conditions generally
seizure of more than 250,000 counter feit products in adopted along the Italian manufacturing supply chain.
off-line markets, the deletion of 130,000 unauthorized
adver tisements, the deactivation of more than 8,000 The study will provide a faithful representation of
websites with illegal content, and the removal of more the Italian luxury sector ’s supply chain, and offer an
than 58,000 social media posts. impor tant business tool for any improvements.

2.5 C O L L A B O R A T I O N S A N D 2.5.2 COOPERATIVE COMPLIANCE

C O O P E R AT I O N S The Prada Group believes that responsible corporate
governance calls for adopting collaborative approaches
Par tnerships represents a form of strategic collaboration that can improve the common value creation process while
for value creation with stakeholders who are aligned maintaining the balance between business objectives and
with the Group's principles and values. stakeholders’ expectations. Accordingly, the Group’s tax
strategy for risk prevention uses an open and continuous
The Group's cooperation with stakeholders such as trade dialogue with tax authorities of all the jurisdictions
unions and tax authorities, and with par tners outside in which it is present, built on full transparency and
its specific scope of business such as universities and cooperation. In 2017, aiming to preventively manage
large international institutions, is considered key to the potential tax risks and in accordance with the Italian
establishment of common values based on a balance tax authorities, the Prada spa Directors approved
between business objectives and societal demands. par ticipation in the cooperative tax compliance program
(Ar t. 3 et seq. under Italian Legislative Decree 128 of
Here as follows, some of the most significant par tnerships 2015), to which a limited number of Italian companies
in place at December 31, 2019. have been admitted.

2.5.1 NATIONAL CHAMBER FOR ITALIAN FASHION (CNMI) Moreover, following the admission to such program,
The Prada Group actively par ticipates in the initiatives the Italian tax authorities invited Prada spa to join
advanced by the National Chamber for Italian Fashion, the international “cooperative compliance” program
which promotes the development of the industry in Italy launched in 2017 and coordinated by the Organization
and abroad. Since 2010, this institution has untaken for Economic Cooperation and Development (OECD)
a strong commitment towards sustainability, seeking for the management of potential tax risks (International
to suppor t its members in the transition toward more Compliance Assurance Program - ICAP).
responsible management of their businesses and supply
chains, firmly believing that sustainability is a key As par t of the first ICAP project star ted in 2018 and
competitive lever for consolidating the leadership of successfully concluded in mid-2019, the Group’s
Italian fashion in the global industry. subsidiaries shared extensive information with the tax
authorities of their respective countries, namely Italy,
The Prada Group is involved in many of CNMI’s initiatives, the United States, the United Kingdom, Canada and
which consist of par ticipation in numerous round tables Australia.
to create tools and shared standards for the benefit of
the entire system. At the end of 2019, two other companies of the Group,
based in Germany and the Netherlands, joined the second
The initiatives relating to the use of chemicals in ICAP project, which formally star ted in December 2019
production processes (chapter 3, paragraph 3.3) and social and will presumably conclude by the end of 2020.
sustainability are par ticularly significant. Concerning Long-term cooperation with the tax authorities of the

2. R E S P O N S I B L E M A N A G E M E N T 28
 Opening address of Chairman C. Mazzi
to IMLux master 's students, Politecnico Di Milano

countries in which the Group operates is also the basis process that collected more than a thousand star tups,
of several existing unilateral and bilateral tax rulings, Star tupbootcamp and its corporate par tners have
which are systematically renewed. identified thir ty of them with strong technological
innovation and sustainable content in the fashion sector.
In addition to these activities designed to avoid tax Star tupbootcamp will suppor t the chosen star tups with
disputes, the Group’s subsidiaries always prefer to mentoring activities in order to accelerate their growth.
resolve any disputes involving tax assessments through
amicable proceedings (Mutual Agreement Procedures or 2.5.4 UNIVERSITIES AND RESEARCH ORGANIZATIONS
“MAP”), which can settle international double taxation
disputes. School Of Management Of Politecnico Di Milano
Within the scope of its close par tnership with the
2.5.3 STARTUPBOOTCAMP FASHIONTECH Politecnico di Milano, rooted in the cultural activities
In June 2019, the Prada Group announced the star t shared during the “Shaping a Future” conference cycle
of a three-year par tnership with Star tupbootcamp, the (chapter 5, paragraph 1), in the 2019/2020 academic
leading European star tup accelerator with international year the Prada Group became a main sponsor of the
programs, regarding the launch of a global innovation International Master ’s degree in Luxury Management
center in Milan dedicated to the fashion sector. (IMLux) together with the French Champagne Taittinger
Group. This combination of Italy and France, the most
The par tnership star ted within the “FashionTech” impor tant countries in the world for high-end products,
initiative, where Prada par ticipated as a Suppor ting is also reflected in the structure of the master ’s degree
Par tner. - taught in English - which allows its students to access
With this initiative, and following a global selection a double degree.

2. R E S P O N S I B L E M A N A G E M E N T 29
During the first semester, the students attend the Master continuity to the scientific legacy of Gianni Bonadonna,
of Science program at the Neoma Business School in the great oncologist who innovated every aspect of
Reims, while in the second semester they follow the first cancer research and treatment, enabling enormous
Level Master ’s Degree courses at Politecnico di Milano. progress and impor tant clinical success to be achieved
The whole context is highly international considering in the treatment of neoplasia.
the origin of the students, universities and corporate
par tners. During 2019, the Foundation created the “Istituto
Diffuso” for innovative cancer treatment research and
The two companies sponsoring the master ’s degree will promoted the “Gianni Bonadonna fellowship”.
contribute to the educational program and, from the The purpose of the “Istituto Diffuso” is to foster
perspective of cooperation, will ask for the contribution coordination dedicated to the planning and conducting
of students to solve problems and challenges of real of innovative clinical studies regarding cancer treatment,
interest for the sponsors themselves. The Prada Group and thus academic research on new drugs or treatments.
will also interact with the students and will bring its
managers to the classrooms of Politecnico.

The two sponsoring companies of the master will

intervene along the educational path and, with a view to
cooperation, will use the contribution of the students
to face problems and challenges of real interest for the
sponsors themselves. The Prada Group will also interact
with students through direct classroom testimonials
from its managers.

School of Management of Yale University

In 2019, Prada continued to collaborate with the Yale
School of Management. During the third edition of the
“Shaping a Future” conference cycle (chapter 5, paragraph
1), and thanks to close collaboration between the par ties
before the event, the Yale Center for Customer Insights
(YCCI) and the Prada Group presented the results of
an intergenerational survey dedicated to understanding
the impact of sustainability on consumer behavior.

More in detail, the research aimed to assess the sensitivity

of consumers of premium products to some of the main
dimensions of corporate social responsibility, such as
the respect for human rights, the promotion of diversity
and inclusion, and the fair treatment of stakeholders.

Gianni Bonadonna Foundation

The Gianni Bonadonna Foundation star ted operating in
2019 following the official presentation of an agreement
with the Prada Group – the suppor ting par tner – in
October 2018.
With this commitment, the Group intends to provide Hackathon Yale University 2018

2. R E S P O N S I B L E M A N A G E M E N T 30
To this end, a number of agreements with various par tners: slightly over 52% of them have been working
pharmaceutical companies were at an advanced stage with the Group for more than 10 years, and around 16%
of preparation at the end of 2019. for a period of time between 5 to 10 years.

The fellowship program, which benefits from an agreement The focus on Italian origin is demonstrated by the
concluded with the Italian Cancer Research Association procurement data regarding leather for footwear and
(AIRC), will award scholarships to oncologists after accessories. In terms of quantity, in 2019, 78% of
they have obtained their specialized qualifications or to the leather came from Italian tanneries renowned for
young doctors who have star ted their final year of the their quality and long tradition. Another 4% has been
postgraduate school of oncology. Agreements have also purchased from suppliers based in the rest of the
been stipulated with various international institutions European Union, while the remaining 18% came from
where candidates will be able to carry out the program outside the European Union.
agreed with the host institutions.
Leather (quantity)
2.5.5 TRADE ASSOCIATIONS
4% europe
The Prada Group is a member of trade associations,
18% rest of the world
including Assonime, Confindustria Toscana and
78% i ta ly
Altagamma, so that its interests for the areas and
communities where it operates may converge efficiently
with those of other stakeholders. The constant exchange Leather Italy (quantity)

of knowledge, information and contacts guaranteed by 6% i ta ly - o t h e r

these associations constitutes an impor tant information 12% i ta ly - s o lo f r a

and relational asset. 40% i ta ly - a r z i g n a n o

42% i ta ly - s a n ta c r o c e
Most recently the Group joined the Altagamma Foundation
as a Par tner.
The clusters of Santa Croce (Tuscany) and Arzignano
Altagamma brings together 110 high-end Italian cultural (Veneto) accounted, respectively, for 42% and 40% of
and creative companies, promoting Italian excellence, all leather purchased by the Prada Group in Italy. These
uniqueness and lifestyle throughout the world. Its mission are specialized leather districts that set the standards
is to contribute to the growth and competitiveness of for the high-quality productions around the world.
the Italian cultural and creative industry. Altagamma’s
members are active in the fashion, design, jewelry, food, Also for outsourcing, the Prada Group stands out for its
hospitality, automotive and wellness sectors. strong ties with the ar tisanal craft experience typical of
the Italian tradition.
2.6 TIES WITH THE COMMUNIT Y In 2019 the Group worked with approximately
370 manufacturing suppliers 3 in addition to the
The international success of the Prada Group is deeply aforementioned 670 suppliers of raw materials.
rooted in Italy, star ting from its supply chain. In 2019 the
Group purchased materials from about 670 suppliers 2 , Around 85% of these manufacturing suppliers are located
around 80% of them located in Italy, around 12% in in Italy, around 8% in the rest of the European Union
other European Union countries and the remaining 8% and the remaining 7% in non- EU countries. Around 42%
in other Non-EU countries. In many cases the materials of the manufacturing suppliers have been collaborating
are produced expressly for Prada, according to strict with the Group for more than 10 years and around 25%
technical and design specifications, by long-established for 5 to 10 years.

2 For the purposes of this analysis, only raw materials suppliers with which 3 For the purposes of this analysis, only manufacturing suppliers with which
purchases of more than Euro 30 thousand were conducted in 2019 have been purchases of more than Euro 30 thousand were conducted in 2019 have been
considered. considered.

2. R E S P O N S I B L E M A N A G E M E N T 31
 Tannerie Limoges

These are relationships built on mutual trust, characterized regulates the rights, guarantees and obligations of all
by working together on a daily basis with a view toward workers belonging to a specific sector, in terms of pay
constant improvement and learning. and regulatory provisions, such as guaranteed minimum
wages, working hours, holidays, seniority treatment,
On the whole, approximately 82% of the Group's treatment of over time, holiday and night-time work
industrial suppliers are located in Italy and about 51% of (with the related pay increases), the duration of the trial
them have been working with the Prada Group for more period and notice period, sick leave, maternity leave,
than 10 years; from the beginning a strategic choice accident leave and the disciplinary code. The CCNL is
for Prada which has always considered a competitive negotiated and renewed every three years, thus allowing
leverage to root its supply chain in those territories for wage and regulatory adjustments in line with the
where the manufacturing sector represents an excellence Italian economic and legislative changes.
appreciated all over the world.
Further information on the quality of working relationships
A supply chain localized in Italy also constitutes an asset with suppliers and people’s protection along the value
from a social responsibility perspective. The working chain is to be found at chapter 4, paragraphs 6 and 7.
conditions of the employees are regulated by the collective
labor agreements in force in Italy. The National Collective
Labor Contracts (CCNL) supplements the law and is
stipulated at a national level, for commodity sectors
(Trade, Metalworking and Mechanical Engineering,
Footwear and Leather Goods, etc.) between trade unions
and associations representing companies. The CCNL

2. R E S P O N S I B L E M A N A G E M E N T 32
 3. ENVIRONMENT
The Prada Group considers environmental protection a very important matter, for
which it engages in and cultivates virtuous behaviors that contribute to sustainable
growth and are examples of good practice for the entire industry. This commitment is
a key element of the Code of Ethics and is emphasized in the Group's Sustainability
Policy, guidelines applied without distinction both within the organization, by constantly
raising staff awareness, and with third parties working with the Group.
The principles also appear in the intents of the Fashion Pact (Chapter 2, paragraph
2.2), whose main objectives are stopping global warming, restoring biodiversity and
protecting the oceans.
The Prada Group did not receive any significant fines or non-monetary penalties
concerning the environment during the year.
3 . 1 P R E S E R VAT I O N O F T H E T E R R I T O R Y

Respect for places has been a guiding principle for ar tisanal know-how, foster the technical development
the Prada Group from the star t. Reducing land take, of production processes and improve the quality of
renovating existing structures and working toward the work environments. Many renovations and very
building requalification have inspired the decisions made impor tant works were carried out to refurbish the spaces.
in more than thir ty years of industrial development. The projects are described in the Social Responsibility
With the belief that new construction can impact an Repor ts from 2015 on.
area considerably, and that such a decision must be
taken only when inevitable, the Prada Group prefers to When the Prada Group is unable to restore existing
purchase and salvage existing buildings. Indeed, the few buildings, it hires masters of architecture such as Guido
newly constructed buildings fit in harmoniously with the Canali, known for his sustainable architecture, to ensure
local areas, without causing disruption. results that have a low impact on the territory and that
create a new landscape that fits harmoniously with the
The Prada Group has more than 200,000 m 2 of production surrounding area.
facilities and warehouse spaces, located almost entirely
in Italy. Among these, six are new buildings - four of the Facilities are designed and conceived as workplaces of
most impor tant were designed by Guido Canali - and people and for people, and to respect nature faithfully.
many are cases of renovations of industrial buildings Those in Montevarchi and Valvigna, Tuscany, and in
and degraded sites that had been abandoned for many Montegranaro, in the Marche region, were designed
years. specifically with the environment in mind; the volumes
In 2015 a long-term investment plan was launched have a contained visual impact also thanks to the
aimed at re-qualifying and reorganizing the Group's vegetation and well inser ted in the landscape. This
manufacturing facilities in order to preserve the feature makes them fully fledged “garden factories”.

3. E N V I R O N M E N T 34
The factories, with their wide, bright spaces enclosed by The green areas occupy more than 50% of the entire
hanging gardens, are intended to have a discreet external sur face of the structure, maintaining intact the vegetation
image, but also distinctive interiors experienced by the typical of the Mediterranean scrub to preserve the variety
employees. of local flora and insulate the buildings.

Among the projects designed by Guido Canali, the In terms of energy efficiency, the logistics hub is a
logistics hub in Levanella (Tuscany) is the focal point reference point for the Group's cutting-edge industrial
of a major restructuring project regarding outbound structure since it was built with a photovoltaic system,
logistics. The hub was designed to be responsibly LED lighting, an energy-saving smar t home system, and
integrated into the territory thanks to border plantings, a geothermal plant.
ar tificial dunes, roof gardens, glass walls, walkways,
and outdoor relaxation areas.

3.2 ENVIRONMENTAL IMPACT MITIGATION

The main direct impact of the Prada Group's business business on climate change. More specifically, the
originates from the use of energy for offices, factories, Group carries out energy efficiency actions to cut its
logistics centers and stores in the various par ts of energy consumption and uses green energy to reduce
the world. Prada is committed to reducing its energy the related emissions.
consumption so that it can limit the impact of its

In 2019, the Prada Group achieved LEED - Leadership in Energy and Environmental Design - Gold
cer tification for 18 stores located in the Asia Pacific region, in China and one in Thailand.
As of December 31, 2019 the Group had 36 LEED-cer tified stores and one
LEED-cer tified factor y in Scandicci (Tuscany, Italy), a total of 37 cer tifications and
expects to obtain additional ones in 2020.

3. E N V I R O N M E N T 35
3.2.1 ENERGY EFFICIENCY Relamping project
From December 31, 2018, thanks to an impor tant project
Heating and air conditioning systems underway since 2014, all Group’s directly operated stores
During 2019 investments continued to be made to improve used exclusively LED lamps in all the store lighting.
the energy efficiency of the Prada Group's historic
factories, such as the one in Levanella (Montevarchi), The direct and indirect energy savings obtained are
Tuscany. A new supervision system was installed that significant compared with the previous technologies
has led to less methane gas and electricity consumption; used (fluorescent and halogen lamps). The process of
it will result in regular savings of more than 502.68 tons conver ting to LED also led to less waste disposal because
of CO 2 . In addition, work done on the central heating LED lamps last much longer.
system of the store in Via Condotti, Rome, enabled to The Prada Group constantly updates this project in order
reduce both the heating and the electricity consumption. to keep pace with technological advances.

Alongside such initiatives, corrective actions continue 3.2.2 GREEN ENERGY

to be carried out on all systems to optimize the power In 2019 the Prada Group ensured that 100% of the
on/power off timing, and to raise staff awareness about electricity for all its Italian offices was supplied
proper and rational electricity use. by sustainable sources with Guarantees of Origin.
Moreover, renewable energy supply agreements were
Energy Box project signed for some foreign subsidiaries, where permitted
In 2017 the Group launched the "Energy Box" project, by the markets. During the year, these sourcing policies
which is a long-term plan for factories, offices and eliminated the emission of 20,000 tons of CO 2 .
stores aimed at optimizing energy consumption. The
project is based on the installation of multi-meters that At December 31, 2019 the Group had 10 photovoltaic
allow for constant monitoring and for understanding systems, most of which were installed on factory
consumption information through accurate comparisons rooftops. The systems, which produce 3,066,534 kWh,
between periods. The data obtained from these tools enabled to save 1,101 tons of CO 2 emissions and to
enables to reduce waste, identify discrepancies between cover 5.9% of the Italian factories' industrial demands.
actual consumption and billed consumption, improve The Group consumed internally 2,014,207 kWh of the
maintenance and simplify budget forecasts. During the energy produced by the photovoltaic systems, thereby
year more monitoring systems were installed, and by preventing the emission of 723 tons of CO 2 that would
December 31, 2019, there were 481 installed multi- have occurred if electricity supplied by the Italian grid
meters. had been used.

3. E N V I R O N M E N T 36
3.2.3 ENERGY CONSUMPTION AND CO 2 EMISSIONS it takes into account the share of cer tified electricity
In 2019 the Prada Group repor ted electricity consumption purchased from renewable sources.
of 143,000 MWh, down by 3.9% over the three-year
period, and with a consumed share of self-produced C O 2 E M I S S I O N S - S C O P E 2 ( t o n C O 2)
electricity from photovoltaics equal to about 2,000 MWh.
63,973
2017
55,889
Electricity consumption (MWh)
60,164
2017 773 148,108 (99.5%) 148,881 M Wh 2018
42,580

2018 1,413 142,154 (99%) 143,567 M Wh

60,121
2019
2019 2,014 141,042 (98.6%) 143,056 M Wh 40,409

self-produced purchased
lo cat i o n b a s e d market based
p h o t o v o lta i c e l e c t r i c i t y electricity

With regard to fuel consumption (diesel and kerosene) In 2019, indirect energy emissions, according to the
and natural gas, mainly used for means of transpor t "market-based" method, decreased compared to both
(owned and leased) and for heating, there is a decrease 2017 (-27.7%) and to 2018 (-5.1%), while the amount of
compared to 2017 of the kerosene consumption (-19.7%) energy purchased from renewable sources increased for
and gas consumption (-5%). the foreign subsidiaries. The other indirect emissions
(scope 3), relating to the fuel consumption of the company

Energy Consumption
fleet, amounted to 1,960 tons of CO 2 , down compared
to 2017 (-17.6%).
2,367,905 m 3
2017
1,203,669 L

CO 2 EMISSIONS (ton CO 2 ) 2017 2018 2019

2,281,135 m 3
2018
989,924 L Direct emissions (Scope 1) 5,456 5,035 5,040

2,248,425 m 3 Buildings 4,651 4,498 4,441

2019
9 67,212 L Means of transpor t (owned) 806 537 600

Energy – indirect emissions

gas ( m 3) diesel and kerosene (l) 63,973 60,164 60,121
(Scope 2) – Location-based

Energy – indirect emissions

55,889 42,580 40,409
(Scope 2) – Market-based
The CO 2 emissions corresponding to the consumption
of gas and fuel (scope 1) amount to 5,000 tons of CO 2 , O ther indirect emissions
Means of transpor t (leasing) 2,381 2,090 1,961
down by 7.6% compared to 2017. (Scope 3)

With regard to indirect energy emissions (scope 2)

deriving from the purchase of electricity, the table below
shows the values calculated using both the "Location-
based" and "Market-based" methods defined below:
• "Location-based": reflects the average intensity of the
emissions relating to the grid from which the energy is
supplied;
• "Market-based": shows the emissions from electricity
that the company has decided to purchase intentionally;

3. E N V I R O N M E N T 37
3.3 RESPONSIBLE SOURCING AND USE OF In 2019, in collaboration with the Fur Free Alliance (FFA),
RESOURCES the Prada Group announced the adoption of a fur-free
policy, thus allowing the research and development of
The Prada Group feels a sense of responsibility for new, more innovative and responsible materials.
sourcing and managing resources in a manner that takes
into account not just the intrinsic value given by the
quality of the raw materials used, but also their origin
and the manufacturing processes that they undergo.

The clothing, footwear and leather goods divisions

directly select the suppliers of all raw materials, also
used by their manufacturing suppliers, coordinating and
monitoring in this way the entire production process up
to the creation of the finished product. This approach,
a distinctive element that has characterized the Prada
Group's business strategy from the beginning, ensures
full control of a crucial phase of the value chain.

Prada considers sustainable raw materials management

to be synonymous with resource use optimization,
according to an approach that seeks to put an end to The materials Prada uses in the manufacturing process
waste and thus minimize the consumption of leather and can be broken down into primary materials such as
fabrics. leathers, fabrics and yarns, and ancillary materials or
Prada's high sensitivity to this issue led it to establish in semi-finished products such as soles, heels, zippers,
2019 an effective way to recover and eliminate production buttons, threads, ribbons, buckles, clasps and name
waste through the use of recyclable bags which are plates.
then compacted for proper recycling by specialized
companies. The most significant information relating to raw materials
purchased from 2017 to 2019 is listed below, including
Recent investments made in industrial development the related unit of measure.
have led to insourcing various production phases, with
2017* 2018 2019
the purpose of maintaining quality at the highest levels RAW MATERIAL units (12 months) (12 months) (12 months)

of excellence while optimizing the use of raw materials. Leather Feet 28,301,004 29,192,490 29,514,844

Fabrics Meter 3,673,886 4,015,597 4,141,910

3.3.1 RAW MATERIALS
Yarns Kilo 179,221 218,000 154,394
The main raw materials used are leathers, fabrics and
Shoes' soles Pair 1,098,684 1,385,657 1,388,294
yarns. 100% of the leathers come with a cer tificate of
origin, a data sheet guaranteeing quality and compliance * The 2017 purchases have been updated and re-proportioned over the 12-month
period which goes from January 1 to December 31, 2017.
with standards, and certification regarding the parameters
stated on the Group's Restricted Substances List (RSL).
Purchases for 2019 were substantially in line with
previous period and with the planned product range at
The Group scrupulously complies with local and
the stores. Overall, purchases of the aforementioned
international regulations on the procurement,
raw materials accounted for approximately 59% of the
impor tation, use and expor tation of raw materials, such
economic value of all purchases including accessories
as the Convention on International Trade in Endangered
and semi-finished materials.
Species (CITES).

3. E N V I R O N M E N T 38
3.3.2 PRADA RE-NYLON will be donated to a project par tnered with UNESCO to
Nylon is emblematic of the Prada brand and is a develop educational activities for students all over the
distinctive feature of its unconventional approach to world on crucial topics such as the pollution caused by
contemporary fashion. The Re-Nylon project, which for plastic, the circular economy and the protection of the
the Prada Group represents an impor tant initiative in oceans.
terms of sustainability, has emerged from a profound
reflection on the growing concern of today's society for To showcase the cutting-edge processes behind the
environmental protection. Re-Nylon initiative, National Geographic, Prada’s
storytelling par tner, has produced a shor t firm series
The product – a series of iconic Prada handbags launched entitled "What We Carry". Each of the five shor t films
in 2019 – is the result of a par tnership between Prada explores a source of recycled materials composing the
and Acquafil, which produces nylon with plastic waste regenerated nylon, unveiling the factories technologies
collected from oceans, such as fishing nets, and sent and production facilities of this innovative fabric, as
to landfills, such as textile fiber waste and old carpets. well as the ideals that gave life to the initiative.
The nylon, which is regenerated through a process of
depolymerization and re-polymerization, can be recycled 3.3.3 PRODUCT RESPONSIBILITY
indefinitely, with no loss of quality. Product quality and customer health and safety are
central to the Prada Group's manufacturing processes.
Underscoring the impor tance of the sustainability The products must meet uniform quality standards and
content of the initiative, in 2020 a percentage of satisfy all current regulations in more than 70 countries
proceeds from the sale of regenerated nylon products where they are sold.

3. E N V I R O N M E N T 39
To achieve these goals, the Group employs some 310 In 2019 no cases of non-compliance with health and
technicians (308 in 2018, 291 in 2017 and 290 in 2016), safety regulations were recorded (as none in 2018). There
each with at least ten years’ experience, who run strict was only one case of non-compliance with information
quality controls on every material used in the production and/or labeling requirements in China that led to fines
process, from sourcing to the finishing touches. They for a total amount of Euro 1,500.
make periodic visits to the manufacturing sites of raw
material suppliers and subcontractors to assess their 3.3.4 PACKAGING: PAPER AND PLASTIC
processes, the quality of their goods and the general In the twelve-month period ended at December 31, 2019
workplace conditions. the Prada Group used 4,583 tons of paper for packaging
worldwide, while in 2018 the consumption was 3,960
Within the scope of these control and guidance tons. The increase is temporary and is connected to the
activities, since 2014 the Prada Group has drawn up production trend. In 2019, 85% of the total packaging
and updated a Restricted Substances List ("RSL"), the consumption was represented by paper cer tified by the
procedure that sets limits on the presence of chemicals Forest Stewardship Council (FSC) and recycled paper.
in its products. In 2016, Prada took the additional
step of aligning its RSL limits with the more stringent,
Paper consumption for packaging (tons)
proactive approach outlined in the "Guidelines on eco-
2017 82% 18% 3,437
toxicological requirements for clothing, leather goods,
footwear and accessories" endorsed by the Camera 2018 84% 16% 3,9 60
Nazionale della Moda Italiana (“CNMI”). These limits
are the most vir tuous in international practice and aim 2019 85% 15% 4,583
to ensure higher chemical safety standards than those
r e cyc l e d o r c e r t i f i e d pa p e r ot h e r pa p e r
prescribed by the strictest national and international
laws. Prada's suppliers of raw materials, packaging
and manufacturing services, which represent Prada's During 2019, the Group also embarked on a program
production chain, have all received the Group's RSL and within the clothing and leather goods divisions aimed
are progressively accepting and signing it: since 2016, at conver ting some packaging components made from
when 72% of the purchase volumes were carried out 100% virgin plastic into recycled or regenerated plastic.
according to this procedure, in 2019 the "proactive"
level of the RSL reached 97% of the purchase volumes 3.3.5 WASTE
relating to Prada’s external industrial suppliers, and Recently the Group conducted a review of the processes
100% of the work per formed in the Group’s production carried out and waste produced in each manufacturing
sites. phase at the factories, and subsequently set up a
system to manage the internal cycle of waste transpor t,
Extending the reach of the RSL is impor tant for improving collection, temporary storage and disposal. The analysis
the sustainability of the Group's production cycle, as enabled to optimize the production cycles, thereby
is Prada's ongoing commitment to CNMI programs on reducing waste production and increasing the propor tion
chemicals, for which in-depth studies have been initiated of waste recycled. The new procedures implemented
on the application of the guidelines to manufacturing allowed the Prada Group to recycle more paper, plastic,
processes, and on other matters. glass and printer car tridges not just at the factories but
To ensure that the RSL is being followed, in addition to also at its offices.
requiring cer tification and testing from every supplier,
the Prada Group monitors observance of the guidelines The Prada Group places great emphasis on encouraging
and the supplier cer tifications through an additional its staff to use industrial waste collection methods and
internal control process by conducting spot checks on standards that can ensure waste reuse and recycling or
all sourced materials through accredited laboratories. disposal according to the best practices.

3. E N V I R O N M E N T 40
3.3.6 LUNA ROSSA, THE PRADA CUP AND ATTITUDE impor tance of the protection of the oceans and marine
OCEAN biodiversity, while reducing the impact of the America’s
High-profile spor ts is another source of inspiration for Cup events on the environment.
Prada and it represents an oppor tunity to realize its
commitment to safeguarding the environment. In details, commencing with the America’s Cup World
series events, “Attitude Ocean” includes the following
Luna Rossa team, sponsored by the Prada Group, was initiatives:
an America’s Cup challenger in 2000, 2003, 2007 and • no single-use plastics in favor of recyclable or
2013, winning the challenger selection regattas in 2000 compostable materials, waste reduction, creation of
and reaching the finals in 2007 and 2013. restaurants areas, with reusable supplies or 100%
compostable solutions, which should prefer the use of
Having benefited from these experiences, Prada has local food supplies;
again secured the role of main sponsor of the Luna Rossa • definition of rigorous procedures for the optimization of
sailing team for the 36 th America’s Cup and, for the first energy demand, waste disposal and for the integration
time, also the “ Title and Presenting Sponsor ” of both of sustainability also in the technical aspects related to
Prada Cup and the America’s Cup presented by Prada, competition (e.g. non-toxic detergent for washing the
gaining fur ther prestigious exposure through the oldest boats, re-purposing plans for materials used during
spor ts trophy competition in the world. Within this new the event, etc.).
role as organizer of the preliminary regattas (the Prada
Cup), Prada has also set an ambitious goal of building a The “Attitude Ocean” project also includes local and
lasting legacy in terms of sustainability. international par tnerships to drive awareness among
Generation Ocean.
Challenger of Record 36 srl, the company responsible
for organizing the Prada Cup and par tner of the Prada
Group, has set a plan of action, namely “Attitude Ocean”,
with the final purpose of raising awareness regarding the

3. E N V I R O N M E N T 41
 4. H U M A N CA P I TA L
The Prada Group’s business approach is based on the respect for human rights,
workers and people in general, as well as the promotion of diversity. This approach also
extends to people working along the Group's supply chain. Prada has always considered
human capital to be key to its competitive edge and makes every effort to promote
and reward professional skills, teamwork and the improvement of the efficiency. The
employees’ enthusiasm, craftsmanship and intellectual curiosity are the elements that
underpin the innovation and quality of the Group’s products.
4.1 W O R K F O R C E

As of December 31, 2019, the Group has 13,988

employees, of whom 38% work in Italy. Compared to
the previous year, a 3.2% growth was recorded mainly
due to the strengthening of the retail in Asia Pacific, and
to a lesser extent in Nor th America, in addition to the
acquisition of full control of the Prada stores in Milan,
following the acquisition of the company Fratelli Prada
spa, the Group's historic franchisee.

Number of Employees

2017 12,844

2018 13,556

2019 13,988

Employees per Geographical Area

2% middle east

8% ja pa n

9% america

20% europe

23% a s i a pac i f i c

38% i ta ly

Outside Italy, the most sizable par t of the workforce Employees per age range

is in Asia-Pacific (23%) followed by the rest of Europe 2017 25% 56% 19%
(20%).
In Italy, where 19 of the 22 production facilities are 2018 26% 55% 19%

located, most employees (62%) work in the industrial

2019 24% 56% 20%
division, while in other countries, where 578 out of 634
directly operated stores are located, 85% of employees
<30 30-50 >50
are in retail.

Employees by Gender
A breakdown of the workforce by age shows that at
2017 62% 38% December 31, 2019 24% of Prada employees were under
30 years old and 56% were aged 30 to 50. Fur ther analysis
2018 62% 38%
shows that 31% of the retail workforce were under 30
2019 62% 38% years old, while in the industrial division, where at least
ten years of experience in production and craftsmanship

female male
is par ticularly impor tant, 50% of the workforce belonged
to the 30 - 50 year old range and 37% to the over 50
Women permanently represent the majority of the year old range.
workforce, counting for 62% of the corporate population.

4. H U M A N C A P I T A L 43
year LABOR STAFF EXECUTIVES AND MANAGERS

Female Male Female Male Female Male

< 30 30 - 50 > 50 < 30 30 - 50 > 50 < 30 30 - 50 > 50 < 30 30 - 50 > 50 < 30 30 - 50 > 50 < 30 30 - 50 > 50

2017 1.2% 5.7% 4.7% 2.1% 4.4% 2.6% 13.7% 23.3% 6.1% 7.4% 12.7% 3.5% 0.3% 5.5% 1.1% 0.3% 4.1% 1.3%

2018 1.4% 5.5% 4.9% 2.2% 4.4% 2.4% 14.0% 23.4% 6.1% 7.6% 12.7% 3.3% 0.4% 5.4% 1.1% 0.2% 4.0% 1.1%

2019 1.4% 5.5% 5.0% 1.8% 4.3% 2.5% 13.1% 23.8% 6.5% 7.4% 12.9% 3.5% 0.3% 5.4% 1.3% 0.2% 4.0% 1.3%

In the periods under comparison, the breakdown of In terms of contract type, 88% of international employees
employees by age and gender remained quite stable, even are permanent hires, proving the Group's commitment to
if in all categories, a shift in the corporate population stability and long-term investment in human resources.
towards the higher age group (> 50) was noted.
In the “Staff ” and “Executive and Managers” categories, Most of the fixed-term contracts concern staff in the
females accounted for 23.8% (vs. 12.9% of males) and retail area and, mainly younger employees (under 35).
5.4% (vs. 4% of males) of the total workforce respectively 67% of the contracts are for females.
in the category 30 – 50 year old. The employees working full time represent the 97% of
the total workforce. In 2019 there were no differences
Permanent Employees in benefits between full-time and par t-time contracts.

2017 61% 39%

2018 62% 38%

2019 62% 38% tota l 12,367

female male

4. H U M A N C A P I T A L 44
 4.2 D I V E R S I T Y A N D E Q U A L O P P O R T U N I T Y Even at a geographical level females represent more than
half of workers in all areas, with peaks in Japan and the
The vast global presence of the Prada Group reflects Asia Pacific, where females account for 74% and 68% of
a multitude of different cultures, nationalities and employees respectively.
religions. The communities and areas in which it operates
are a constant source of inspiration and growth.
Employees per Gender and Geographical Area

i ta ly 59% 41%
In fact, the Group ensures equal employment conditions
by promoting diversity and equal oppor tunities, and in america 56% 44%
2019 there were no registered cases of discrimination
europe 61% 39%
within the Group.
a s i a pac i f i c 68% 32%

The statistics on employees’ origin prove the various ja pa n 74 % 26%

backgrounds of the workforce. In fact, people with 105
middle east 55% 45%
different nationalities (107 in 2018) work for the Group.

female male
The strong female presence is demonstrated by the
ratio between males and females for each job category:
women not only represent the majority of Labor (58%) Respect for equal oppor tunities is also reflected in
and Staff (65%), but they are also the largest component the Compensation & Benefit system, based on the
(56%) of Executives and Managers. enhancement of skills and merit, which ensures equal
treatment by gender, seniority and role, as also confirmed
by the substantial equality in the remuneration treatment
EXECUTIVES AND
year LABOR STAFF
MANAGERS as showed in the table below.
Female Male Female Male Female Male

2017 56% 44% 65% 35% 55% 45%

PAY GAP (with the median as 100%)
2018 57% 43% 65% 35% 56% 44%
EXECUTIVES AND
2019 58% 42% 65% 35% 56% 44% year LABOR STAFF
MANAGERS
Female Male Female Male Female Male

2017 97% 102% 91% 104% 98% 103%

2018 99% 102% 98% 104% 99% 104%

Another distinctive characteristic is the prevalence of
females in all divisions. 2019 99% 102% 98% 103% 97% 102%

year INDUSTRIAL CORPORATE RETAIL

Female Male Female Male Female Male

2017 59% 41% 55% 45% 64% 36%

2018 59% 41% 57% 43% 64% 36%

2019 60% 40% 57% 43% 64% 36%

4. H U M A N C A P I T A L 45
4.3 D I V E R S I T Y A N D I N C L U S I O N A D V I S O R Y the issues of diversity and inclusion of Afro-American
COUNCIL culture in the United States and par ticipating to the
organization of “Shaping a Sustainable Future Society”
The Group firmly believes in the value of diversity as a conference (chapter 5, paragraph 1). During the three
source of inspiration for its activities and, more generally, meetings, the Council also submitted various proposals
as a form of cultural heritage, wellbeing and creativity, for activities, currently under consideration by the
which allows to establish a bond of affinity with a global company leaders, including par tnerships, scholarships
base of diversified stakeholders. and other initiatives to bridge the gap of inclusion in
the sector.
In 2019, the Group, in order to promote the issues of
diversity and inclusion within the company and in the 4.4 PRADA ACADEMY AND SKILLS DEVELOPMENT
society, established the Diversity & Inclusion Advisory
Council (hereinafter “D&I Council”). Skills development is fundamental for the Prada Group,
as is Prada’s commitment to the intra-generational
The D&I Council, as a consultative body fully independent transmission of skills.
from any form of governance of the Group, has the task
of sensitizing the management on the social aspects Back in the 1990s, the Group began to codify all its
of sustainability, in par ticular with regard to diversity industrial and handcrafting processes in manuals and
(gender, cultural identity, religion, personal orientation, written procedures so that they would be accessible
etc.). The Council fulfils its role through the proposal of within the Group. Even now, details and updates are
projects, corporate policies and initiatives considered constantly added to these documents, which ensure the
socially effective to spread a culture of inclusion in the continuity and consistency of the know-how and serve
fashion sector. as inspiration for the corporate activities.

The work of the D&I Council focuses on the above- The Prada Academy is the physical and digital place
mentioned issues especially for what concerns the Nor th where knowledge, skills, techniques, practices and
American society. innovative ideas are shared and developed to foster
talent and assure the Group’s future growth.
The D&I Council is composed of academics, activists,
representatives of the world of ar t and culture from The Prada Academy aims to develop human capital and
institutions worldwide renowned. The Council has two convey professional exper tise with projects, contents
Co-Chairs, Theaster Gates and Ava DuVernay, and avails and training modalities diversified for three macro
itself of the contribution of three other members, Joyce areas: manufacturing with the Industrial Academy, the
Brown, Mariarosa Cutillo and Sarah Lewis. Learning and Development area, and retail with the
Stores Academy.
DIVERSIT Y & INCLUSION ADVISORY COUNCIL

Role Gender

Ava DuVernay Chairman F

Theaster Gates Chairman M

Joyce Brown F

Mariarosa Cutillo F

Sarah Lewis F

During the year, the D&I Council gathered three times

approving a major training and development project on

4. H U M A N C A P I T A L 46
 LEARNING AND
INDUSTRIAL STORES
DEVELOPMENT
ACADEMY ACADEMY
ACADEMY

Industrial academy and professionals who transmit their extensive know-

Since 2017, at its manufacturing facilities in Italy, how, each process is understood in detail so that the
the Prada Group has safeguarded and passed on the par ticipants can learn how to work according to the
technical skills of the fashion professions by way of this highest quality standards.
school intended for youths aged 18 to 25 who are eager
to learn the technics of the manufacturing world and In 2019, the project was fur ther developed and the hours
to embark upon a career in the leather, footwear and of training increased by 30%. The courses covered all
luxury clothing sectors. the production divisions, par ticularly:
• knitwear, with in-depth study of the types of yarns,
The peculiarity of the courses lies in the right mix of stitches, darning and embroidery;
theory and practice. Studying the production processes • leather goods, with in-depth study of some processes
and methods is the first step of intensive practical training: typically used for handbags and small items;
learning is done on the job, where par ticipants star t • footwear, with the manufacture and assembly techniques
in on the creation of handbags, accessories, footwear used for footwear and sneakers.
and clothing. Under the guidance of internal instructors

4. H U M A N C A P I T A L 47
In the Prada world, the Industrial Academy is a were provided in 2019 compared with just 2,000 in 2018.
strong, growing reality that fully suppor ts the Group's This tool also facilitates the creation of real communities
production strategy, whose final goal is the protection and interested in specific subjects; it means being able
conservation of the wealth of knowledge and exper tise to work transversely on a global level, par ticipating
that characterize the industry, and their transmission to vir tually in groups present on a digital platform where
new generations of ar tisans. they can exchange information, processes, objectives
and deadlines. In 2019, a pilot project was experimented
By December 31, 2019, 141 youths had been trained within the HR division, with the purpose of making it
through a process geared to prepare them for entering become a new interactive tool for all company divisions.
the professions of leather cutters, shoemakers and
tailors, and more than 80% of them were hired by the This digital platform provides free access (“free learning”)
Company. to various managerial and business topics. The incentive
to spontaneously analyze and search new content is
Learning and development academy a strategic asset in terms of personal motivation and
The professional training dedicated to the Group's improvement in individual per formance.
employees focuses on effective management of the
complexities present in the various business environments.

Courses are formulated by first analyzing demands in

order to build the content according to the specific
personal and professional growth needs, in behavioral,
specialized and managerial areas. In the past few years,
courses have been developed on self-efficacy, leadership,
team management, and the strengthening of technical,
digital, linguistic, and other types of professional skills.
The training is divided into classroom and e-learning
courses.

Employees are trained from the time they join the

Company though an onboarding process, during which
the managers meet their new employees and introduce
them to the Prada world and to the respective business Stores academy
areas. In addition to the daily suppor t of experienced personnel,
the activities contemplated for the store staff include
In 2019, special “ Theory to Practice” programs were courses designed to consolidate professional skills,
created for some employees categories. The selected product knowledge and customer service.
candidates have the oppor tunity to attend internationally
renowned universities and post-graduate institutions, In 2019, the catalog of e-learning courses regarding
and then return to Prada and share the exper tise gained products was expanded with more information on the
while working in groups, according to the purposes and forms, materials and colors of the latest collections,
timing determined by the respective managers. thus improving the capacity to offer an increasingly
exclusive customer experience in line with the brand
The Learning Management System (LMS) digital training identity.
platform, implemented on a global scale more than two
years ago, enhanced the value creation for the human In addition to the usual plans to reinforce managerial and
resources, to whom 17,000 hours of e-learning courses selling skills, during the year new, impor tant training and

4. H U M A N C A P I T A L 48
development projects were launched. Two of the most
significant ones regarded aligning the organizational
goals of Prada Store Managers and recasting the customer
experience, as a key business strategy. The latter project,
conducted on a global scale, involved managers from
many countries under the guidance of an external team,
whose task was essential for enriching the experience
and training the Group's professionals.

Training hours
In 2019, 171,789 hours of training 4 were provided to
55,507 par ticipants. Below is a summary of the average
hours of training broken down by gender.

Training Worldwide 2017 2018 2019

Average number of
6.80 6.88 12.28
hours per employee

Average number of Female Male Female Male Female Male

hours per employee
by gender 7.34 5.95 7.46 5.94 12.98 11.13

4.5 TALENT AT TRACTION AND RETENTION

Career Day, Bocconi University

Recruiting the most talented and skilled employees for

its organization is a fundamental element of the Prada
Group’s growth strategy. The channels used for attracting, In the last years, Prada and some schools have jointly
finding and selecting candidates are diversified and organized student visits to its headquar ters to make its
closely related to the type of the role. workplace and working methods better known. Prada
considers this open approach strategic to its image as an
The internal selection process, which is characterized by employer of excellence. A strong interest in the quality
transparent procedures that ensure equal oppor tunity, of its work organization has always emerged from the
has been standardized globally over the years, thanks visits to the factories in Italy, which are located in unique
in par t to a digital platform shared by HR managers for architectural settings and landscapes.
the analysis and filing of the applications received.
Moreover, the Prada Group believes it is essential to
The Company regularly par ticipates in events that create synergies with the technical schools of the region
connect businesses to the world of schools, universities where it operates (Tuscany, Italy) to ensure the education
and master 's degrees. Careers days, during which the and the skills refinement needed for the technical
Prada Group delivers presentations and holds workshops, qualifications considered vital by the company for giving
are just an example of the tools used to acquire talented continuity to the ar tisanal know-how.
staff.
The Prada Group's remuneration and retention policy is
Some of these initiatives have been communicated and designed to reward and retain highly professional staff
promoted through the Group's LinkedIn page. and skilled managers, new graduates and workers, with
the cer tainty that the creation of value is achieved in the
4 The hours of training exclude those on health & safety and those of the medium and long term through constant organizational
Industrial Academy.

4. H U M A N C A P I T A L 49
learning and the consolidation of employees’ experiences entitlements (healthcare, insurance, etc.), and
and skills. benefits including social services and assistance to
families (public transpor tation, cars, school subsidies,
The policy features a balanced combination of components subsistence allowances, etc.).
that are fixed and variable, direct and deferred, tailored
to the position and professional qualifications, and The Group promotes freedom of association and
consistent with the needs of the various geographical recognizes the right to collective bargaining. In fact,
areas. the Prada Group engages with trade unions to improve
the working conditions of its employees and to foster
More in details, the Group's remuneration policy is the medium/long-term well-being of its employees and
based on: thus its surrounding communities. Over the years the
― a periodic salary review that takes into consideration Group has stipulated many supplementary agreements
the overall market competitiveness with respect to especially in Italy, the United Kingdom and France,
company positions and internal remuneration fairness; whereby it offers better benefits than those established in
― an annual incentive plan linking remuneration to the the local collective bargaining agreements. For instance,
Company's earnings and to individual per formance; 80% of the employees in Italy and 100% in France can
― long-term incentive plans, for key managers, linked benefit from the supplementary agreements. Employees
to the three-year profit growth, aligning individual in the UK’s manufacturing division also benefit from
targets to those of the shareholders; supplementary agreements.
― specific incentive plans for the sales team and for
technical personnel specialized in the creation of
seasonal collections;
― specific benefit plans for each country, which
supplement in whole or in par t the mandatory

4. H U M A N C A P I T A L 50
The most significant benefits provided by these Committee, is actively involved in determining the top
supplementary or company agreements for 2019 were management remuneration taking into account the
the following: roles and responsibilities assigned, and considering the
• per formance bonus: variable bonus linked to market compensation applicable to similar positions in
production, sales and profit targets; businesses of comparable size and complexity to the
• vacation bonus: fixed amount equivalent to one Prada Group.
month's pay as defined in the collective bargaining
agreement; 4.6 WORKER SAFET Y
• easy access to severance pay advances;
Personal protection is of key significance to the Group:
• flexible working hours enabling employees to achieve
internal policies safeguard the health and safety of
a more productive work-life balance;
employees at all Company locations according to the
• supplementary Healthcare Fund: supplementary
highest standards and in full compliance with local and
health insurance with an option to include immediate
international regulations.
family at a special rate;
• special leaves of absence for illnesses of employee's
In most locations (offices, warehouses and stores),
children (up to 12 years of age) in France;
occupational health and safety risks associated with the
• regulations, employment protection and better
Group's operations are considered limited, also thanks
conditions in terms of Sunday premium pay in the
to training activities and updated safety measures,
stores in France;
especially in the industrial areas.
• improvement in sick leave for the employees of the
Church's plant in Nor thampton, Great Britain.
I N J U R Y/ L O S T D A Y R A T E 2017 2018 2019

INJURY RATE
11.34 10.47 10.28
As par t of the supplementary agreements in Italy, in (number of accidents/hours worked) x 1,000,000
LOST DAY RATE
2018 a corporate welfare plan was launched with the aim (days lost for accidents/workable hours) x 1,000
0.29 0.22 0.17

of allowing employees access to an extensive package

Data related to 2017 only refers to the Italian industrial sites.
of services such as reimbursements for healthcare, Data related to 2018 is related to the industrial sites that the Group owns
in Italy, France and United Kingdom.
education and welfare expenses, leisure activities (travel,
Finally, data related to 2019 is related to all industrial sites owned by the
vacations, cultural and spor ts events), vouchers for fuel, Prada Group (in Italy, France, United Kingdom and Romania).

food, payments to supplementary pension funds, and

much more. The welfare plan can be activated under the In Italy, where 19 industrial sites owned by the Group are
employees request in view of the per formance bonus; located, there were 87 incidents, 55% of which involved
the company adds an additional 25% to the amounts females and 42% of which occurred during commuting.
conver ted. During 2019, over 65% of the employees This result is reflected by the injury rate at Italy level
covered by the plan chose to conver t their per formance that was equal to 10.25, while for women it was equal to
bonus into welfare shares, directing them mainly to 13.75. Generally, in Italy, injuries inside the organization
reimbursements of medical and education expenses and were mainly related to tripping and slipping, therefore
travel, a response considered extremely positive. of minor gravity (the gravity rate was equal to 0.18).
In Italy, during the year, three cases of occupational
The Group complies with the applicable international disease occurred, involving only female employees,
and national laws and regulations for working hours, representing an overall occupational disease rate equal
minimum guaranteed breaks and rest periods. Thanks to 0.35.
to the respect, dialogue and cooperation in place with
Italian trade unions, there were no labor strikes during In order to promote widespread safety awareness, thanks
the year, just as none had occurred in the previous three in par t to regulatory developments on this matter, the
years. Company uses on-line safety courses with specific IT
The Board of Directors, together with the Remuneration platforms that are easy and simple to use.

4. H U M A N C A P I T A L 51
 non-existent, while it considers the same risk to be very
low along its industrial supply chain. The geographic
location of the suppliers selected by the Group, as well
as their profound knowledge in terms of duration and
quality of the established par tnerships, reduces the risk
of conditions or pre-conditions such as to constitute
circumstances of modern slavery, forced labor and
human trafficking.

The Group's business par tners are encouraged to go

beyond the minimum regulatory requirements and foster
dialogue among all par ties involved to facilitate the
implementation of and compliance with the standards
in order to create positive work relationships. In
the relationships with suppliers, social awareness is
encouraged and regulatory knowledge and the adoption
of environmental, social and quality cer tifications are
promoted.

Prada's commitment is contained in the Sustainability

Policy and realized in par t by the promotion, distribution
and underwriting of the Group's Code of Ethics, which
is included, as required by company policies, within
business agreements with all suppliers.

In 2019 training was provided to 2,656 people in Italy Factories and external suppliers are also required to
(around 1,813 people in 2018). ensure that any third par ty that provides them with
materials and/or labor for making the Group’s products
There are no committees within the Group responsible is provided with all the permits requested by law and
for creating and monitoring occupational health and complies with the Code of Ethics.
safety programs, whereas the positions and internal
organization structures required by the local legislation 4.7 GROUP’S QUALIFIED VENDOR LIST
of the various countries in which Prada is present do PROCEDURE
exist.
The Prada Group has adopted the "Group’s qualified

The Group makes effor ts to guarantee that its products vendor list" procedure to define the responsibilities

are created in conditions reflecting its commitment for and operational criteria required to evaluate ethical,

the respect of human rights in the workplace and its technical and economical reliability. Additional controls

compliance with international rules for the safety and needed to initiate and continue with supply relationships

well-being of workers. are set out in the procurement policy, which calls for
mitigating risks of non-compliance through additional

Moreover, the Group fights against all forms of controls and accountability.

discrimination, forced and child labor inside the Specifically for ethical issues, the accreditation and

organization and promotes the same respect along its maintenance of a supplier 's qualification are based

supply chain. Prada believes that the risk of modern on the request of documents, attestations and self-

slavery and child labor within its own organization is cer tifications that ensure compliance with the law on

4. H U M A N C A P I T A L 52
remuneration, social security, taxation, health and Such controls were entrusted to an internal function set
safety, the environment, privacy and the governance up specifically for such purpose with personnel from the
model. Finally, the signing of the Code of Ethics is a most competent business areas for the various types of
fundamental prerequisite for working with Prada. controls, such as the administration, human resources,
safety and industrial depar tments.
This information is subject to periodic updates and
systematic checks, also intra-year to ensure veracity and The role of this professional team, working in close
consistency. Such controls, of a documental nature and collaboration with the Industrial Divisions, is to provide
conducted by purchasing structures or business areas technical and specialized suppor t to verify the labor,
focused on several topics, are carried out on a sample tax, health and safety and environmental regulatory
basis or when a problem is encountered. The procedure compliance of the supply chain through visits to suppliers,
may include fur ther inquiries in case of potential non- planned in a systematic and organized manner.
compliance in the documentation. This type of control
is coupled with visits by industrial divisions to suppliers In 2019 the team star ted to conduct its monitoring visits
(almost daily for the most impor tant ones) which, apar t to all suppliers of the Leather Goods Division, with the
from ensuring compliance with technical and commercial aim of finalizing them by January 2020. A similar activity
agreements, provide additional confirmation regarding is planned for all suppliers of the Clothing and Footwear
working conditions. In case of a non-compliance that Divisions.
can be remedied, the supplier may be temporarily
suspended, while for more serious cases, the contract
may be terminated immediately.

This procedure, implemented in early 2017 to suppliers

operating in the industrial area, has been gradually
extended to businesses not strictly involved in the
production cycle, reaching full coverage of all industrial,
engineering and logistics suppliers 5 at December 31,
2019. Fur thermore, during the year, internal controls
were regularly carried out, both on first and second level,
to ensure the periodic updating of the information and
documentation required by the procedure, and aimed at
mitigating risks of non-compliance.

The Prada Group considers the risk of non-compliance

throughout its direct supply chain to be low thanks to the
geographical location of the suppliers and the in-depth
knowledge of such suppliers obtained as a result of the
duration and quality of the relationships established.

However, during 2019 controls over the observance of

the Group’s “Qualified Vendor List" (QVL) procedure
were intensified with more in-depth checks on the
compliance of documentation produced, made available
by the supply chain and entered in the QVL.

5 For the purposes of this analysis, only suppliers with which purchases of
more than Euro 50 thousand were conducted in 2019 have been considered.

4. H U M A N C A P I T A L 53
 5. C U LT U R A L I N I T I AT I V E S
Social changes, deep economic crises, difficulties experienced by the institutions
and the new paradigms introduced by technological progress have caused an ever
increasing number of companies to adopt a closer approach to develop greater sensitivity
to the demands of civil society. According to this principle of shared value creation,
the competitiveness of a company and the well-being of the community in which it
operates, and not only that, are strictly related.
Prada interprets this approach adopting a logic of value distribution to society in
its business model. The commitment to culture, a fundamental part of the Group's
strategy since its origin, is the tool that the Group considers most natural and closest
to its identity for extending the benefits of its activities to civil society.
5.1 S H A P I N G A S U S T A I N A B L E F U T U R E S O C I E T Y

Shaping a Sustainable Future Society Conference, New York

Since 2017, the Prada Group has organized a cycle of At the New York conference, the Yale Center for Customer
cultural events entitled “Shaping a Future” with the Insights of Yale University presented research, conducted
intention of stimulating a debate on the most significant in collaboration with Prada during the previous months,
changes taking place in contemporary society and more which investigated U.S.-based consumers' opinions,
specifically to analyze sustainability issues. thoughts and evaluations on how sustainability affects
their purchasing decisions. Politecnico di Milano joined
On November 8, 2019, the third edition of this conference instead researcher Kate Crawford in the complex debate
cycle was held at the Prada Group’s New York headquarters of the often-ignored ethical implications regarding the
and addressed the issue of social sustainability. It brought development of Ar tificial Intelligence (AI), emphasizing
together universities, institutions, large international that decision-making processes, of both citizens and
organizations, and representatives of the world of ar t, corporations, are increasingly permeated by the digital
architecture, international journalism and spor ts on evolution without adequate regulation or supervision at
subjects such as freedom, equality and social justice. international level.

Social inclusion, respect for identities, disability, diversity Both of the two previous conferences took place in Milan:
and care for others in general, all of which are aspects the first one, held in March 2017, focused on possible
of social sustainability, found great resonance among links between creativity and sustainability, while the
the speakers at the conference, who outlined different second event, held in November 2018, explored the
and stimulating points of view on a very complex and connections between sustainability and digital innovation
stratified topic.

For the 2019 edition, as well as for the previous two ones,
Prada benefited from the scientific contribution of the
Schools of Management of Yale and Politecnico di Milano.

5. C U L T U R A L I N I T I A T I V E S 55
 Exhibition view of “Whether Line”
Lizzie Fitch and Ryan Trecar tin

5.2 FONDAZIONE PRADA

The interests and the passions of Miuccia Prada and and curated by Germano Celant was presented in this
Patrizio Ber telli have inspired the Prada Group to suppor t space. A selection of more than sixty works from 1959
Fondazione Prada’s activities in the fields of ar t and to 2015 on loan from impor tant museums and private
culture since 1993. collections in Italy and abroad explored the ar tistic and
exhibition history of Kounellis.
Fondazione Prada was created as a platform to conceive
and develop ar t exhibitions along with architecture, The program of Fondazione Prada’s headquar ters in
cinema and philosophy projects. Since 2010 it has Milan, unveiled in 2015 and designed by the architectural
presented twenty-four exhibitions in Milan dedicated to firm OMA, included in 2019 two exhibitions, a new
impor tant international ar tists, or to ar t issues. permanent project, an extensive film program, a music
project and a dance event.
Since 2011, Fondazione has also been operating from its
venetian venue, Ca’ Corner della Regina, an eighteenth- American ar tists Lizzie Fitch and Ryan Trecar tin have
century building that has hosted eight ar t exhibitions created the multimedia installation "Whether Line" and
and an experimental platform dedicated to cinema. In a series of new movies on the theme of borders, territory
2019, a large retrospective devoted to Jannis Kounellis and the back-to-the-land utopia. A comprehensive

5. C U L T U R A L I N I T I A T I V E S 56
 Exhibition view of “Il sarcofago di Spit zmaus e altri tesori”
Wes Anderson and Juman Malouf

retrospective of Ryan Trecar tin's filmic production a television monitor usually employed by Godard as a
entitled " The Movies" completed the exhibition project. working tool.
Film director Wes Anderson and illustrator and writer
Juman Malouf conceived the exhibition "Il sarcofago In 2019 Fondazione Prada’s “Cinema” has continued its
di Spit zmaus e altri tesori", a collaboration between activity every weekend with a program that includes a
Fondazione Prada and the Kunsthistorisches Museum in wide variety of formats, visual languages and a series
Vienna. The project, which included 538 works of ar t of special events and public meetings. For "Soggettiva"
and rare objects, was a reflection on the motivations section, three film selections were presented by
behind the act of collecting and the ways in which a directors Nicolas Winding Refn and Pedro Almodóvar
collection is preserved, presented and experienced. and ar tist John Baldessari, who shared the films that
contributed to their cultural and intellectual education.
Film director Jean-Luc Godard conceived a new "Indagine" section offered international films in the
permanent project for the first floor of the Sud gallery. original language including both first releases and works
“Le Studio d’Orphée” (Orpheus’ studio) is an atelier, a from the past redistributed in previously unreleased
recording and editing studio, a living and working place. versions. "Origine" section presented "Screen-Core"
The director decided to transfer the technical material, program, curated by Luigi Alber to Cippini and dedicated
used in his latest films’ shooting from 2010, as well to contemporary independent cinema.
as furniture, books, paintings and other personal items
from his studio-house in Rolle in Swit zerland. The second edition of the musical project "I WANT
The title expressly mentions the myth of Orpheus and TO LIKE YOU BUT I FIND IT DIFFICULT ", curated by
Eurydice, establishing a parallel between Godard and Craig Richards, was presented in the external spaces
the Greek poet-musician. Within “Le Studio d’Orphée” of Fondazione Prada in Milan. The three events of this
the feature film Le Livre d’image (The Image Book), 2018 program explored a plurality of musical genres and
and nine shor t movies by the director are screened on languages hosting international ar tists such as Andrea

5. C U L T U R A L I N I T I A T I V E S 57
 Exhibition view of “Le Studio d’Orphée”
Jean-Luc Godard

Presentation Event of “Soggettiva Nicolas Winding Refn”

at Fondazione Prada’s Cinema.

5. C U L T U R A L I N I T I A T I V E S 58
 Exhibition view of “ Training Humans”
Kate Crawford and Trevor Paglen

Belfi, Biosphere, Colleen, Floating Points, Helena Hauff, to photography, continued with two new exhibitions.
Maarja Nuut & Ruum, object blue, Pole, Ben UFO and "Surrogati. Un amore ideale", a show curated by Melissa
Craig Richards. Belgian choreographer Elie Tass created Harris presented a selection of photographic works by
the dance project "Emergency Entrance". Conceived for Jamie Diamond and Elena Dor fman exploring the notions
the spaces of the “Deposito” (a big industrial space), of family, romantic and erotic love. " Training Humans",
occupied by the temporary set of Prada Woman Spring/ conceived by scholar Kate Crawford and ar tist Trevor
Summer 2020 fashion show, the choreography involved Paglen, was the first major photographic exhibition
15 dancers from Civica Scuola di Teatro Paolo Grassi in dedicated to training images: reper toires of photographs
Milan. used by scientists to teach ar tificial intelligence systems
how to "see" and classify the world.
In addition to the cultural activities, the educational
program of Accademia dei bambini continued with new
cycles of workshops conceived and curated by exper ts
from different disciplines.

The program of “Osservatorio”, the additional exhibition

space of Fondazione in Milan inaugurated in December
2016 in Galleria Vittorio Emanuele II, and dedicated

5. C U L T U R A L I N I T I A T I V E S 59
 Prada Mode Hong Kong

5.3 P R A D A M O D E A N D “ C O N V E R S A T I O N S ”
PROJECTS

Two initiatives can be mentioned in the cultural program For its second edition, Prada Mode moved to Hong Kong
under taken by the Prada Group during 2019: the "Prada in March 2019 for the Ar t Basel Hong Kong. Scheduled
Mode" and "Conversations" projects. events included a special setup of the “Prada Invites”
project — par tnered with three outstanding architects,
Launched for the first time in Miami in 2018 during Ar t Cini Boeri, Elizabeth Diller and Kazuyo Sejima, to create
Basel Miami Beach, the Prada Mode touring project aims a limited collection of new ar ticles in nylon - and Dolls’
to enrich and broaden the horizons of major cultural House, a photographic installation by American ar tist
events with a global reach. The project is conceived as Jamie Diamond, curated by Germano Celant and Melissa
a Club that offers its members access to a clubhouse Harris.
hosting meetings and cultural debates every day on
contemporary issues.

5. C U L T U R A L I N I T I A T I V E S 60
The third edition of Prada Mode arrived in November In New York, photographer Cristina Mittermeier
2019 in London. Events included the new chapter of The illustrated her "conversation photography" with Tina
Black Image Corporation presented by ar tist Theaster Brown, an award-winning journalist and founder of the
Gates, a project that explores the visual and cultural "Women in the World" association.
representation of the Black identity. This edition of
Prada Mode also launched "Collective Intimacy", a At a second event in New York, Susan Goldberg, editor-
live program of per formances and debates about the in-chief of National Geographic Magazine, and Robin
concepts of community and unity to develop a vision Rober ts, journalist and anchorwoman of ABC's "Good
of the cosmopolitan world. This exclusive program Morning America" program, took up the subject of
included interdisciplinary contributions by ar tists, women and led the debate during the presentation of the
musicians, cultural producers, collectives and members National Geographic book, "WOMEN", which explores,
of the public, which alter the notions of unity and through images of famous women, what it means to be
individuality with the intention of creating a temporary a woman in the contemporary world.
global community.
In Shanghai the focus of the conversation shifted to the
**** environment with a debate entitled "Imagining a Circular
World", moderated by journalist, environmentalist and
During 2019 some cultural conversations also took place opinion leader Shaway Yeh. The theme was chosen to
at the Prada Epicenter on Broadway, in New York, and raise awareness about sustainability among companies
at the Rong Zhai residence in Shanghai. and designers.

Prada Mode London

5. C U L T U R A L I N I T I A T I V E S 61
 6. NOTES ON THE METHODOLOGY

6.1 T H E M A T E R I A L A S P E C T S I D E N T I F I C A T I O N

THE PRADA GROUP'S STAKEHOLDERS

In conducting its business the Prada Group interacts most impor tant on the basis of their:
with many stakeholders, all of which can directly or • influence on Prada: ability to affect the
indirectly influence or be influenced by the achievement Company's strategic or operational decisions;
of business objectives.
• dependence on Prada: extent to which the stakeholder
After mapping stakeholders from the beginning to the depends on the Company's decisions, products and
end of the value chain, the Group determined which are activities.
This process identified many key stakeholders in the
following categories:

LICENSEES AND
B U S I N E S S PA R T N E R S

LANDLORDS CUSTOMERS

SUPPLIERS UNIVERSITIES

E M P LOY E E S A S S O C I AT I O N S

LENDERS AND AUTHORITIES AND

FINANCIAL COMMUNITY R E G U L AT O R Y B O D I E S

SHAREHOLDERS TA X A U T H O R I T I E S

TRADE UNIONS COMMUNITY

COMPETITORS DISTRIBUTORS

MEDIA AND
INFLUENCERS

MATERIALITY ANALYSIS A comprehensive list of the sustainability issues for

For 2019, the Prada Group has drawn up its Social the Prada Group was identified by the following steps:
Responsibility Repor t according to the GRI (Global
Repor ting Initiative) Sustainability Repor ting Standards • mapping the key stakeholders and analyzing their
(hereafter "GRI Standards") and in line with the "ESG concerns;
Repor ting Guide" of the Hong Kong Stock Exchange. • per forming a benchmark analysis against Italian and
international fashion and luxury firms, producing a
The depth and detail given to the various topics list of the most common sustainability issues in the
reflect the outcome of a materiality analysis which is industry;
the process of identifying, evaluating and ranking the • per forming a media analysis relating to the Group,
sustainability aspects that are relevant to stakeholders which enabled to present the perception of public
and that influence the ability of Prada to create value in opinion;
the shor t, medium and long-term. • analyzing the main sustainability documents relating
to the Textile and Clothing sector (such as the GRI,
In this regard, during 2019, the Prada Group updated RobecoSam, SASB) to identify industry trends;
its materiality analysis by carrying out two main phases: • analyzing the main sustainability trends at a global
level, identified by major international organizations
1. Identifying sustainability issues: determining which such as the Dow Jones Sustainability Indexes, the World
issues are key to understanding Prada's business Economic Forum and the Global Repor ting Initiative.
and strategic context and to describing its main
environmental, economic and social impacts; Once the sustainability issues were defined, they were
2. Ranking: putting these aspects in order based on ranked in order to define their materiality and include
their relevance for achieving business goals (internal the most significant ones in this repor t.
significance) and concern to stakeholders (external
significance).

6. N O T E S O N T H E M E T H O D O L O G Y 63
 In accordance with the GRI Standards, the aspects were The material aspects for the Prada Group were defined
ranked in terms of their impact both within and outside as the intersection of significance for the Company
the organization, i.e. by extending the analysis to the and significance for its stakeholders, as shown in the
entire value chain. following matrix.

more relevant

E N E R G Y A N D C L I M AT E C H A N G E
P R O D U C T C R E AT I V I T Y A N D
E XCELLENCE
E VA L U AT I O N O F S U P P L I E R S ― S O C I A L
ASPECTS
AT T R A C T I O N A N D R E T E N T I O N O F
TA L E N T S
RESPECT OF HUMAN AND WORKERS
RIGHTS
K N O W - H O W P R E S E R VAT I O N A N D
SKILLS DEVELOPMENT
O C C U PAT I O N A L H E A LT H A N D S A F E T Y
significance for the stakeholders

DIVERSIT Y AND EQUAL OPPORTUNIT Y

PROTECTION AND ENHANCEMENT

O F T H E A R T I S T I C , C U LT U R A L A N D
N AT U R A L H E R I TA G E
TRADEMARK PROTECTION
WA S T E M A N AG E M E N T
R E L AT I O N S H I P W I T H T H E T E R R I T O R Y
CUSTOMER EXPERIENCE
TRACEABILIT Y AND RESPONSIBLE
P R O C U R E M E N T O F R A W M AT E R I A L S

R E TA I L I N N O VAT I O N

R E L AT I O N S H I P S W I T H T R A D E
UNIONS
B U S I N E S S S T R AT E G Y A N D
S U S TA I N A B L E PA C K A G I N G
ECONOMIC PERFORMANCE
S U S TA I N A B L E W AT E R
MANAGEMENT C O R P O R AT E G O V E R N A N C E A N D
I N T E G R I T Y, T R A N S PA R E N C Y A N D
P R I VA C Y
C O O P E R AT I O N
E VA L U AT I O N O F S U P P L I E R S ―
E N V I R O N M E N TA L A S P E C T S

less relevant significance for prada group more relevant

The following results emerged: Group, demonstrating its commitment to operating

• again, the most significant aspect proved to be product in full compliance with current laws and regulations
creativity and excellence, which demonstrates the and to building trust-based relationships with its
fundamental impor tance — for the Group and its stakeholders.
stakeholders alike — of the high standards of quality
and style that accompany Prada merchandise along Compared to the results of the 2018 materiality analysis,
the entire value chain; issues related to climate change and sustainable packaging
• equally relevant for the Group and its stakeholders are assume greater importance for the company, testifying the
the issues related to the management and development Group's increasing commitment to environmental issues.
of human capital (know-how preservation, skills In compliance with Standard GRI 101: Foundation,
development and attraction and retention of talents); paragraph 3, this document has been prepared in line
• aspects associated with the production processes and with “GRI Standards: Core Option”. References to the
their impact throughout the supply chain (respect for Hong Kong Stock Exchange's ESG Repor ting Guide
human and workers’ rights, evaluation of suppliers (Main Board Listing Rules - Appendix 27) are listed in
according to social criteria, occupational health and the Content Index 6 .
safety and energy consumption and climate change)
resulted among the most relevant for stakeholders; 6 No reference is made to General Disclosure A3 (Environment and Natural
Resources), to Comply or Explain provisions A2.2 and A2.4 (related to the
• customer experience and integrity, transparency and management of water resources) and to Comply or Explain provisions A1.3,
A1.4 and A1.6 (related to waste management) of the ESG Reporting Guide
cooperation are the issues most impor tant to the of the Hong Kong Stock Exchange as, currently, these topics have not been
classified as material for the Organization according to the GRI Standards.

6. N O T E S O N T H E M E T H O D O L O G Y 64
The following table analyzes the repor ting of material
aspects according to GRI Standards: it repor ts the
boundaries and the eventual internal or external
limitations.

ASPECT BOUNDARIES ASPECT BOUNDARIES LIMITATION

GRI STANDARDS MATERIAL ASPECTS
WITHIN THE OUTSIDE THE WITHIN THE OUTSIDE THE
ORGANIZATION ORGANIZATION ORGANIZATION ORGANIZATION

Economic Per formance Group - - -

Procurement practices Group - - -

Anti-corruption Group - - -

Materials Group - - -

Not extended to
Independent clients (*)
Energy Group - Independent clients (*)
and Suppliers and Suppliers

Not extended to
Independent clients (*)
Emissions Group - Independent clients (*)
and Suppliers and Suppliers

Environmental compliance Group - - -

Employment Group - - -

Not extended to
Independent clients (*)
Occupational health and safety Group - Independent clients (*)
and Suppliers and Suppliers

Not extended to Industrial

Training and education Group Industrial suppliers - suppliers

Diversity and equal oppor tunity Group - - -

Not extended to Industrial

Non-discrimination Group Industrial suppliers - suppliers

Human rights assessment Group - - -

Local Communities Group - - -

Supplier social assessment Group - - -

Customer health and safety Group - - -

Marketing and labeling Group - - -

Socieconomic compliance Group - - -

(*) Independent clients mean Department stores, multi-brand stores and Franchisees.

6. N O T E S O N T H E M E T H O D O L O G Y 65
6.2 T H E R E P O R T I N G P R O C E S S

SCOPE The per formance indicators were collected on an

This document is the Prada Group's seventh - second annual basis for 2019 and 2018 years, while for 2017
according to the GRI principles published in 2016 - the repor ting is for eleven months (February 2017
Social Responsibility Repor t and contains a description - December 2017), if not differently indicated in the
of the main initiatives under taken in fiscal year 2019, text; the repor ting cycle is set according to an annual
i.e. from January 1, 2019, to December 31, 2019, and frequency. The repor ting boundary is the same as the
the per formance trends for the three-year period 2017- information repor ted in the 2019 Annual Repor t, or
2019 where available; par ticularly significant initiatives Prada spa and its subsidiaries, with the exception of
and events of fiscal year 2020 already known at the some data expressly indicated in the text. The Repor t
repor ting date are also included. includes non-financial data referring to Fratelli Prada
spa, acquired on October 30, 2019.
During 2017, the Shareholders' Meeting of Prada spa
approved the change of the end of the annual repor ting Prada spa, together with its subsidiaries collectively the
period from January 31 to December 31 of each year, “Prada Group”, is a joint-stock company incorporated
thus realigning the fiscal year to the calendar year. and domiciled in Italy with headquar ters in Via Antonio
Therefore, it should be noted that the repor ting period Fogazzaro 28, 20135 Milan, whose share capital is
for 2017 consists of eleven months and for this reason, 80%-owned by Prada Holding spa, a company domiciled
for some per formance indicators it was not possible to in Italy, while the remaining shares (20%) are listed on
return a correct interpretation of the three-year trend. the Main Board of the Hong Kong Stock Exchange.

6. N O T E S O N T H E M E T H O D O L O G Y 66
PRINCIPLES FOR ENSURING SUSTAINABILITY number of hours worked x 1,000,000;
REPORTING QUALITY ― where environmental data were unavailable,
The attention given to topics such as the environment, conservative estimates were used that resulted in
human rights and equal oppor tunities, and how to choosing assumptions associated with the least positive
preserve manufacturing know-how, promote the environmental per formance for the Company;
culture and protect the ar tistic heritage, are values ― greenhouse gas emissions were calculated using the
that have always distinguished the corporate culture. following emission factors:
The social responsibility repor t aims to represent the • emissions scope 1: emission factors taken from the
Group in view of these values so that its stakeholders list of Italian standard parameters published by the
can evaluate the impacts of Prada's activities from an Ministry for the Environment and Protection of Land
environmental, social and governance standpoint. This and the Sea, updated to 2019;
document was drawn up with the purpose of repor ting • emissions scope 2 - Location Based: emission
both the successful aspects and the weaknesses of the factor per country taken from Terna's international
Prada Group, with a view toward constant improvement. comparisons on Enerdata data - 2017 data;
The information and indicators included aim to provide • emissions scope 2 - Market Based: Country Emission
a balanced por trayal of the Group's sustainability Factor from the European Residual Mixes of AIB
per formance and initiatives. (Association of Issuing Bodies) updated to 2017
when available; for the United States and Canada
The process of repor ting, collecting and aggregating it was considered an average of the Residual Mixes
the data was structured with the ultimate purpose of published by the Green-E cer tification body; for
enabling stakeholders to compare and comprehend fully the other countries the emission factor taken from
the information contained herein. Terna International comparisons on Enerdata data -
data 2017 was considered;
In this regard, at the beginning of 2019 the Group adopted • emissions scope 3: emission factor taken from the
a procedure for the preparation of the Repor t of Social list of Italian standard parameters published by the
Responsibility ("Guidelines for the preparation of the Ministry for the Environment and Protection of Land
annual Repor t of Social Responsibility") approved by and the Sea, updated to 2019.
the Board of Directors, which indicates the principles
to be followed (materiality, measurability, impar tiality, Finally, carbon dioxide is the only greenhouse gas
coherence) and the responsibilities for drawing up the considered.
document.
The 2017 and 2018 data may differ slightly from the
CALCULATION METHODOLOGY data published in the 2017/2018 Social Responsibility
The Prada Group involved all corporate functions to Repor ts due to the aggregation of data that became
determine the contents of the 2019 sustainability repor t. available after such Repor ts were published and due to
the update of the emission conversion factors. For the
With respect to the calculation methodology: same reason, the 2019 data reflects the best possible
― lost day rate: it is the ratio between total number estimate using the data available when the 2019 Social
of days lost due to injuries and the total number of Responsibility Repor t was published.
scheduled hours to be worked x 1,000;
― injury rate: it is the ratio between the total number
of injuries and the total number of hours worked x
1,000,000;
― occupation disease rate: it is the ratio between the
total number of occupational diseases and the total

6. N O T E S O N T H E M E T H O D O L O G Y 67
 7. GRI CONTENT INDEX FOR
“IN ACCORDANCE” CORE OPTION
 References to
INDICATOR HKEx ESG DESCRIPTION REFERENCES OMISSIONS
reporting guide
GENERAL DISCLOSURES

102-1 Name of the organization Pag. 66

102-2 Activities, brands, products, and services Pag. 4-12

102-3 Location of headquarters Pag. 66

102-4 Location of operations Pag. 4; 9

102-5 Ownership and legal form Pag. 66

102-6 Markets Served Pag. 4; 9

102-7 Scale of the organization Pag. 4; 8-9; 13-15

102-8 KPI B1.1 Information on employees and other workers Pag. 43-44

102-9 KPI B5.1 Supply chain Pag. 8-9; 31-32

102-10 Significant changes to the organization and its supply chain Pag. 13-15; 66

102-11 Precautionary Principle or approach Pag. 22-24; 66-67

102-12 External initiatives Pag. 19-22; 24-31

The Group's main partnerships are with: Camera Nazionale

102-13 Membership of associations della Moda Italiana, Altagamma, Assonime, and Confindustria
Toscana.

102-14 Statement from senior decision- maker Pag. 3

102-16 Values, principles, standards and norms of behavior Pag. 19-21; 52-53

102-18 Governance structure Pag. 17-19

102-40 List of stakeholder groups Pag. 63

102-41 Collective bargaining agreements Pag. 50-51

102-42 Identifying and selecting stakeholders Pag. 62-63

102-43 Approach to stakeholder engagement Pag. 62-63

102-44 Key topics and concerns raised Pag. 63-65

102-45 Entities included in the consolidated financial statements Pag. 66

102-46 Defining report content and topic Boundaries Pag. 63-65

102-47 List of material topics Pag. 64-65

102-48 Restatements of information Pag. 66

102-49 Changes in reporting Pag. 66

102-50 Reporting period Pag. 66

102-51 Date of the most recent report Pag. 66

102-52 Reporting cycle Pag. 66

102-53 Contact point for questions regarding the report Pag. 72

102-54 Claims of reporting in accordance with the GRI Standards Pag. 64

102-55 GRI content index Pag. 68-72

This document is not

102-56 External assurance submitted to external
assurance.

7. G R I C O N T E N T I N D E X F O R " I N A C C O R D A N C E " C O R E O P T I O N 69
MATERIAL TOPICS
References to
INDICATOR HKEx ESG DESCRIPTION REFERENCES OMISSIONS
reporting guide
SPECIFIC STANDARD DISCLOSURES
ECONOMIC PERFORMANCE INDICATORS

GRI 201: Economic Performance - 2016

103-1 G.D 8 Explanation of the material topic and its Boundary Pag. 63-65

103-2 G.D 8 The management approach and its components Pag. 13-15

103-3 G.D 8 Evaluation of the management approach Pag. 13-15

201-1 KPI B8.2 Direct economic value generated and distributed Pag. 15

GRI 204: Procurement Practices – 2016

103-1 Explanation of the material topic and its Boundary Pag. 63-65

103-2 The management approach and its components Pag. 31-32

103-3 Evaluation of the management approach Pag. 31-32

204-1 KPI B5.1 Proportion of spending on local suppliers Pag. 31-32

GRI 205: Anti-corruption – 2016

103-1 G.D B7 Explanation of the material topic and its Boundary Pag. 63-65

103-2 G.D B7 The management approach and its components Pag. 19; 22-24

103-3 G.D B7 Evaluation of the management approach Pag. 19; 22-24

205-3 KPI B7.1 Confirmed incidents of corruption and actions taken Pag. 23

ENVIRONMENTAL PERFORMANCE INDICATORS

GRI 301: Materials – 2016

103-1 G.D A2 Explanation of the material topic and its Boundary Pag. 63-65

103-2 G.D A2 The management approach and its components Pag. 38-40

103-3 G.D A2 Evaluation of the management approach Pag. 38-40

301-1 KPI A2.5 Materials used by weight or volume Pag. 38

GRI 302: Energy – 2016

103-1 G.D A2 Explanation of the material topic and its Boundary Pag. 63-65

103-2 G.D A2 The management approach and its components Pag. 35-37

103-3 G.D A2 Evaluation of the management approach Pag. 35-37

302-1 KPI A2.1 Energy consumption within the organization Pag. 37

302-4 KPI A2.3 Reduction of energy consumption Pag. 37

GRI 305: Emissions - 2016

103-1 G.D A1 Explanation of the material topic and its Boundary Pag. 63-65

103-2 G.D A1 The management approach and its components Pag. 35-37

103-3 G.D A1 Evaluation of the management approach Pag. 35-37

KPI A1.1
305-1 Direct (Scope 1) GHG emissions Pag. 37
KPI A1.2

7. G R I C O N T E N T I N D E X F O R " I N A C C O R D A N C E " C O R E O P T I O N 70
 References to
INDICATOR HKEx ESG DESCRIPTION REFERENCES OMISSIONS
reporting guide

KPI A1.1
305-2 Energy indirect (Scope 2) GHG emissions Pag. 37
KPI A1.2
KPI A1.1
305-3 Other indirect (Scope 3) GHG emissions Pag. 37
KPI A1.2

305-5 KPI A1.5 Reduction of GHG emissions Pag. 37

GRI 307: Environmental compliance - 2016

103-1 G.D A1 Explanation of the material topic and its Boundary Pag. 63-65

103-2 G.D A1 The management approach and its components Pag. 33-35

103-3 G.D A1 Evaluation of the management approach Pag. 33-35

307-1 G.D. A1 Non-compliance with environmental laws and regulations Pag. 33

SOCIAL PERFORMANCE INDICATORS

GRI 401: Employment - 2016

103-1 G.D. B1 Explanation of the material topic and its Boundary Pag. 63-65

103-2 G.D. B1 The management approach and its components Pag. 42-44; 49-51

103-3 G.D. B1 Evaluation of the management approach Pag. 42-44; 49-51

Benefits provided to full-time employees that are not provided

401-2 KPI B1.2 Pag. 44
to temporary or part-time employees

GRI 403: Occupational health and safety - 2016

103-1 G.D. B2 Explanation of the material topic and its Boundary Pag. 63-65

103-2 G.D. B2 The management approach and its components Pag. 51-52

103-3 G.D. B2 Evaluation of the management approach Pag. 51-52

Workers representation in formal joint management-worker

403-1 KPI B2.3 Pag. 52
health and safety committees
Types of injury and rates of injury, occupational diseases,
KPI B2.1
403-2 lost days, and absenteeism, and number of work-related Pag. 51
KPI B2.2
fatalities

GRI 404: Training and education - 2016

103-1 G.D. B3 Explanation of the material topic and its Boundary Pag. 63-65

103-2 G.D. B3 The management approach and its components Pag. 46-49

103-3 G.D. B3 Evaluation of the management approach Pag. 46-49

KPI B3.1
404-1 Average hours of training per year per employee Pag. 49
KPI B3.2

GRI 405: Diversity and equal opportunities - 2016

103-1 G.D. B1 Explanation of the material topic and its Boundary Pag. 63-65

103-2 G.D. B1 The management approach and its components Pag. 17-19; 45-46

103-3 G.D. B1 Evaluation of the management approach Pag. 17-19; 45-46

405-1 KPI B1.1 Diversity of governance bodies and employees Pag. 18

405-2 G.D. B1 Ratio of basic salary and remuneration of women to men Pag. 45

GRI 406: Non-discrimination - 2016

103-1 G.D. B1 Explanation of the material topic and its Boundary Pag. 63-65

103-2 G.D. B1 The management approach and its components Pag. 45-46; 52

7. G R I C O N T E N T I N D E X F O R " I N A C C O R D A N C E " C O R E O P T I O N 71
 References to
INDICATOR HKEx ESG DESCRIPTION REFERENCES OMISSIONS
reporting guide

103-3 G.D. B1 Evaluation of the management approach Pag. 45-46; 52

406-1 G.D. B1 Incidents of discrimination and corrective actions taken Pag. 45

GRI 412: Human rights assessment - 2016

103-1 G.D. B4 Explanation of the material topic and its Boundary Pag. 63-65

Pag. 19-20; 22-23; 32;

103-2 G.D. B4 The management approach and its components
51-53
Pag. 19-20; 22-23; 32;
103-3 G.D. B4 Evaluation of the management approach
51-53
Operations that have been subject to human rights reviews or
412-1 G.D. B4 Pag. 52
impact assessments

GRI 413: Local communities- 2016

103-1 G.D. B8 Explanation of the material topic and its Boundary Pag. 63-65

Pag. 13; 15; 34-35;

103-2 G.D. B8 The management approach and its components
54-61
Pag. 13; 15; 34-35;
103-3 G.D. B8 Evaluation of the management approach
54-61
Operations with local community engagement, impact Pag. 13; 15; 34-35;
413-1 G.D. B8
assessment, and development programs 54-61

GRI 414: Suppliers social assessment - 2016

103-1 G.D. B5 Explanation of the material topic and its Boundary Pag. 63-65

103-2 G.D. B5 The management approach and its components Pag. 31-32; 52-53

103-3 G.D. B5 Evaluation of the management approach Pag. 31-32; 52-53

414-2 KPI B5.2 Negative social impacts in the supply chain and actions taken Pag. 32; 52-53

GRI 416: Customer health and safety - 2016

103-1 G.D. B6 Explanation of the material topic and its Boundary Pag. 63-65

103-2 G.D. B6 The management approach and its components Pag. 12; 39-40

103-3 G.D. B6 Evaluation of the management approach Pag. 12; 39-40

Incidents of non-compliance concerning the health and safety

416-2 G.D B6 Pag. 40
impacts of products and services

GRI 417: Marketing and labeling - 2016

103-1 G.D. B6 Explanation of the material topic and its Boundary Pag. 63-65

103-2 G.D. B6 The management approach and its components Pag. 39-40

103-3 G.D. B6 Evaluation of the management approach Pag. 39-40

Incidents of non-compliance concerning product and service

417-2 G.D B6 Pag. 40
information and labeling

GRI 419: Socioeconomic compliance - 2016

103-1 Explanation of the material topic and its Boundary Pag. 63-65

Pag. 22-24; 28-29;

103-2 The management approach and its components
39-40
Pag. 22-24; 28-29;
103-3 Evaluation of the management approach
39-40
G.D. B1
G.D. B2
Non-compliance with laws and regulations in the social
419-1 G.D. B4 Pag. 23; 40
and economic area
G.D. B6
G.D. B7

Additional information on this Social Responsibility Report may be requested to:

PRADA S.p.A. - Via Antonio Fogazzaro 28 - 20135 Milan (Italy)
e-mail: [email protected]

7. G R I C O N T E N T I N D E X F O R " I N A C C O R D A N C E " C O R E O P T I O N 72
PHOTO CREDITS:

pag. 1 ph. Gabriele Croppi

pag. 2 ph. Mario Ciampi
pag. 6 ph. Agostino Osio
pag. 10 ph. Brigitte Lacombe
pag. 15-16 ph. Agostino Osio
pag. 20 ph. Brigitte Lacombe
pag. 22 ph. Agostino Osio
pag. 24-25 ph. Willy Vanderperre (Prada)
pag. 25 ph. Eddie Wrey (MiuMiu)
pag. 26 ph. Laura Jane Coulson (Church's)
pag. 26 Cour tesy Car Shoe
pag. 27 Cour tesy Marchesi 1824
pag. 32 ph. Agostino Osio
pag. 33-34 ph. Alessandro Ciampi
pag. 35 ph. Attilio Capra
pag. 36 ph. Agostino Osio
pag. 39 Cour tesy National Geographic
pag. 41 ph. Carlo Borlenghi
pag. 42-43 ph. Francesco Lastrucci
pag. 44-48-50 ph. Agostino Osio
pag. 52 ph. Francesco Lastrucci
pag. 54 ph. Bas Princen - Cour tesy Fondazione Prada
pag. 55 Getty Images
pag. 56-57 ph. Andrea Rossetti - Cour tesy Fondazione Prada
pag. 58 ph. Agostino Osio-Alto Piano / Ugo Dalla Por ta - Cour tesy Fondazione Prada
pag. 59 ph. Marco Cappelletti - Cour tesy Fondazione Prada
pag. 62 ph. Agostino Osio
pag. 66 ph. Brigitte Lacombe
pag. 68 ph. Francesco Castagna

O ther pictures: Cour tesy Prada

73