S U S T A I N A B I L I T YR E P O R T 2 0 1 8F I N A N C I A L Y E A R 2 0 1 7_

E N

A B S T R A C T

I N D E X

A B O U T U S

S U S T A I N A B I L I T Y A S L I F E S T Y L E

E N V I R O N M E N T A L S U S T A I N A B I L I T Y

E n v i r o n m e n t a l r e s p o n s i b i l i t y

E n v i r o n m e n t a l p r o d u c t c e r t i f i c a t i o n s

S O C I A L S U S T A I N A B I L I T Y

S t a f f c o m p o s i t i o n a n d ch a r a c t e r i s t i c s

2 0 n a t i o n a l i t i e s o n e i d e n t i t y

S a f e t y a n d d e v e l o p m e n t o f o u r s t a f f

C o r p o r a t e r a t e s p r o j e c t

R E S E A R C H A N D I N N O V A T I O N

P r o j e c t s

G r e e n L . I . F. E .

O r g a n i s a t i o n a l i n n o v a t i o n

E C O N O M I C S U S T A I N A B I L I T Y

P r o d u c t d i s t r i b u t i o n o f r e v e n u e

G e o g r a p h i c d i s t r i b u t i o n o f r e v e n u e

A d d e d v a l u e d i s t r i b u t i o n

S o c i a l c o m m i t m e n t

C h r i s t m a s 2 0 17 i n i t i a t i v e

P r o j e c t s

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13

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Dani was founded in 1950 as a small family-run tanner; today we are a multinational business with global positioning.

We can rely on:

• 1,200 employees;

• 180,000,000 Euros in revenue,

75% of which is export;

• 3 full cycle tanneries in Italy;

• 2 facilities abroad for the cutting

and sewing of finished leathers;

• 2 sales and marketing offices in the USA and China;

• 2 Instant Service warehouses in Italy and the USA.

Our philosophy is based on the concept of understanding our stakeholders’ requirements and producing innovative proposals together, promoting the virtuous cycle that turns us into a leading global producer of “Made in Italy”.

A B O U T U S

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Our work involves making something excellent from a food industry by-product. We oversee the entire production process from the raw hide to the finished product, thus maintaining total control over all the production phases to guarantee the end result.

S U S T A I N A B I L I T Y A S L I F E S T Y L E

Searching for profit to sustain business activity and the local community

Investment in research and innovation

Safeguarding the environment and local district

Respect for individual integrity

Our activities are based on “RESPONSIBLE MANAGEMENT”

which means:

By publishing the Sustainability Financial Report, we would like to give you an insight into our world and share the demands, proposals and innovation mechanisms with you. On the following pages, you will be able to track our commitment to sustainability which has been divided into three areas: environmental, social and economic.

E N V I R O N M E N T A LS U S T A I N A B I L I T Y

6 E N V I R O N M E N T A L R E S P O N S I B I L I T Y

Raw hides By-products and waste

from waste sentfor recycling

90%

Water consumption Waste water

the purification efficiencyof water discharged and

sent to the purification plant is

97-99%

Consumption of thermal and electrical energy

replacement of traditional light bulbs with LED light bulbs

implementation of energy management system

renewal and reduction of diesel-powered forklift trucks

with hybrid and electric modelsThermal and

electrical energy

Chemical products

average solvent consumptionlower

than legal limits per m2 of hide

65%Emissions in atmosphere

INPUT OUTPUT RESULTS

Our commitment is focused on the constant quest for innovative ways of reducing the use of natural resources and emissions, by improving our waste recycling capabilities.

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CARBON FOOTPRINTOF PRODUCT(ISO/TS14067: 2013)

This certification measures greenhouse gas emissions throughout the production process, from agriculture and livestock farming, to the production of the finished leather.

Certification body: SGS

LEATHER FROM ITALY FULL CYCLE (UNI EN 16484)

This certification attests that the entire production is carried out in Italy.

Certification body: ICEC

DER BLAUE ENGEL(RAL UZ 148)

Stricter limits than those set by law for the content of hazardous substances, emission of pollutants and the use of raw materials and water.

Certification body: RAL

GOLDEN M(RAL - GZ 430)

This certification is granted to products that have passed stringent tests of durability, resistance to physical and environmental factors, and even odour tests. The certification body is DGM (German certification consortium for furniture quality).

ENVIRONMENTALPRODUCT DECLARATION& PROCESS EPD (ISO 14025)

After the LCA (Life Cycle Assessment) study, the following impact categories are examined: greenhouse effect, reduction of the ozone layer, acidification, photochemical smog, eutrophication.

www.environdec.comCertification body: SGS

Cer t i f i ca t ions a re a too l fo r cons tan t l y mon i to r ingthe env i ronmenta l impact and g radua l l y improv ing

our pe r fo rmance towards the env i ronment .

E N V I R O N M E N T A L P R O D U C T C E R T I F I C A T I O N S

E N V I R O N M E N T A LS U S T A I N A B I L I T Y

9

The average age in DANI is about 43 years old. The employees are distributed fairly evenly around the central category (41-50 years old) accounting for 33% of the staff. 27% of the workers are aged between 31 and 40, employees over 50 make up 23% of the total while the under-30s represent 14%.

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

654 STAFFEMPLOYED

2%12%

13%

74%

Employees divided by place of residence (2017)

Tanning district Valle del Chiampo

Province of Verona

Other cities in the province of Verona

Other

1 0 2 0 N A T I O N A L I T I E S O N E I D E N T I T Y

The Dani organisation is diverse, made up of people of different ages and nationalities. This characteristic is an important part of our continued growth which enhances the company’s organisation and reinforces the corporate identity.

Overall, people from more than 20 countries work for DANI, mainly employed in production areas. 152 women work for DANI, accounting for 23% of the workforce in the various departments.

1 1 S A F E T Y A N D D E V E L O P M E N T O F O U R S T A F F

TRAINING HOURS10,330

The following graph summarises the distributionby area of the various training activities

* sales and marketing, communications, administration, maintenance, laboratory, human resources.

4%

4%

11% 18%

63%

Quality

Safety

Training on the floor

Environment

Other*

1 2 “ C O N V E N Z I O N I ” P R O J E C T

The initiative stemmed from the desire to give a tangible sign of our interest in workers and their families, by making it easier and more convenient to access a series of important services in their daily lives, such as health care, free time, education, holidays, transport and much more.

The first series of conventions and their constant expansion provided easier access to laboratory analyses and physiotherapy, mechanic and car body workshops, theatre and travel.

The “Convenzioni” project was fully rolled out in 2017.

Free time Health care Family support

Teatro

Viaggi

Svago

Palestra

Libri

Abbigliamentoper bambini

ManutenzioneAuto

Analisi di laboratorio

VisiteSpecialistiche

Cura dellapersona

R E S E A R C H A N DI N N O V A T I O N

1 4

85 projects approved for product style innovation.

LINKKI implementation, an MES system which has

radically modified production management thanks to the

interaction between the facilities and the company’s computing system and the possibility of automatically modifying the

production process parameters.

P R O J E C T S

Zero Impact leather products are free from chrome and heavy metals, resulting in a substantial

reduction in CO2 emissions due to the tanning process. To compensate

fully for the CO2 emissions, we decided to participate in various

reforestation projects.

1 5 G R E E N L . I . F . E .

Dani was the coordinator of the “Green Leather Industry for Environment” project, financed by the European Commission within the scope of the “LIFE” programme which ended in May 2017.

The project produced the following technical results:

• 20% reduction in water consumption in the liming phase;

• industrialisation of the oxidative liming and traditional liming processes with recycling of the hair;

• development of a new tanning agent from renewable sources and production on a semi-industrial scale;

• production of a fertiliser with a good nitrogen and phosphorus content from recycling and liming drum treatment;

• production of a hydrolysed protein using hair keratin recovered during the liming phase;

• drafting of an LCA (Life Cycle Assessment) study to appraise the environmental impact of the purification of one m3 of water and to assess the benefits for the district by introducing new technology.

Hydrolysed Protein obtained from the keratinof recycled hair.

Agronomic trials with pellet fertiliser.Polypropylene drum for oxidative liming.

Final product.Final conference for the GreenLIFE project (Villa Da Porto, Montorso Vic.no-Italy) .

1 6 O R G A N I S A T I O N A L I N N O V A T I O N

System certifications are a tool and stimulus for constant improvement in work management

in terms of quality, innovation, safety and the environment.

OHSAS 18001

Certification of the quality and safety management system in the workplace.

ISO 14001

Certification of the quality management system.

IATF 16949

Certification of the quality management system for the automotive industry.

ISO 9001

Certification of the quality management system.

E N V I R O N M E N T A LS U S T A I N A B I L I T Y

1 8 P R O D U C T D I S T R I B U T I O N O F T H E R E V E N U E

REVENUE

6%

15%

46%

33%

Leather GoodsAutomotive SDFurniture

The revenue of 180 million Euros is distributed in various sectors which can be grouped in four macro areas.

1 9 G E O G R A P H I C D I S T R I B U T I O N O F T H E R E V E N U E

2 0 D I S T R I B U T I O N O F A D D E D V A L U E

Human resources Public administration

Banks and financial backers Corporate system Community

85%

1%

9 %

2 %

3 %

Added value of about 33 million Euros is distributed between the various stakeholders.

2 1 S O C I A L C O M M I T M E N T

67%

1%32%

Social activities Sporting activities Educational activities

102,000 Euros donated to charitable activities.

2 2 C H R I S T M A S 2 0 17 I N I T I A T I V E

Since 2015, we have donated the money normally destined for Christmas gifts for customers and suppliers to important social initiatives, involving the entire production chain in the chosen projects. Stakeholders at all levels were invited to replace Christmas gifts with a contribution towards the realisation of the suggested projects.

The project enabled the purchase of a 9-seater mini-bus, equipped for transporting the disabled. It will be possible to transport 50 people to and from the centres and their homes, guaranteeing a service enabling them to take part in the activities organised by specialised centres (gyms, swimming pools, cinemas, theatre, day trips, etc.) .

Dani has also funded scientific cancer research by making a donation to the not-for-profit foundation “Altre Parole Fondazione Onlus”, situated in Cittadella (Padua) .

With the contribution of other companies in the leather supply chain, Dani sponsored a project supporting transportation for the Moby Dick social cooperative in Arzignano, Italy.

2 3 P R O J E C T S

Design and implementation of a supplier selection, qualification and assessment system, which also includes ethical, social and environmental criteria.

Progress report

Attainment of the “Process EPD” certification.

Creation of an integrated environment - safety management system (ISO 14001 – BS OHSAS 18001) .

Creation of a management system for social responsibility in compliance with the ISO 26000 standard.

Involvement of external stakeholders in improving the analysis of the most significant aspects for sustainability by Dani.

Creation of an energy management system (ISO 50001) .

2 4

5% reduction in diesel consumption for hours worked per year.

Improvement of operational waste management.

Mapping of Dani staff CVs.

Introduction in the company of support initiatives for the families of staff who work for Dani.

P R O J E C T S

Goal Progress report

DANI S.p.A.HOME STYLE &FASHION DIVISIONVia Quarta Strada, 20 Z.I. 36071 - Arzignano (VI) ITALYTel +39 0444 471211info@gruppodani.itwww.gruppodani.it

DANI S.p.A.REGISTERED OFFICE &AUTOMOTIVE DIVISIONVia Della Concia, 186 Z.I. 36071 - Arzignano (VI) ITALYTel +39 0444 454111info@daniautomotive.comwww.gruppodani.it