2024 SUSTAINABILITY REPORT

In 2024, Canali updated its environmental footprint analysis in accordance with UNI EN ISO 14064-1:2019, adopting a Life Cycle Assessment (LCA) approach to evaluate impacts across the entire product life cycle. Consistent with trends in the fashion and clothing industry, the analysis confirmed that more than 90% of total emissions originate from the supply chain, along with the use and end-of-life phases of products (Categories 3 and 4; Scope 3 under the GHG Protocol). For this reason, Canali is committed to increasing the accuracy of primary data by actively engaging its key suppliers. The goal is to enhance supply chain traceability and encourage the selection of more sustainable products. A mitigation plan was also implemented, centred on self-generation of renewable energy and optimising energy consumption. The carbon footprint highlights the notable impact of domestic production, particularly in terms of energy consumption. Thanks to the increased self-generation of energy from photovoltaic systems—now fully operational at the headquarters and production facilities—there has been a tangible 6% reduction in electricity drawn from the grid. In the field of biodiversity, the analysis expanded from mapping production sites across Italy (key assets for transparency and promoting Made in Italy) to also assessing the environmental conditions in the main cities where Canali directly operates boutiques, company stores, and offices, which serve as strategic hubs of its global commercial and management network.

Canali performed an LCA analysis using the Product Environmental Footprint (PEF) methodology, focusing on two garments that are representative in both volume and symbolic value: a jacket and a 100% wool suit. The cradle-to-grave analysis encompassed the full product life cycle, including materials, manufacturing processes, water consumption, and logistics. Findings confirm that Canali’s production model fosters durable garments through high-quality materials, careful tailoring, repairability, and design. The analysis conclusively demonstrated the products’ high durability, estimating an average service life of 151 uses for jackets and 129 for suits—both surpassing industry standards. Moreover, the Group actively participates in end-of-life management through Retex.Green, a program focused on recovering and recycling textile waste.

With a generally stable workforce, the approach to human resource management is increasingly focused on employment stabilization, the strengthening of long-term working relationships, and the enhancement of human capital. Emphasis has been placed on improving internal communication and fostering active listening through structured dialogue tools between managers and employees. ESG topics are also integrated into training programs, helping to build awareness and encourage employee engagement in the Company’s sustainability strategy. Initiatives to support employee well-being and engagement were further strengthened and formalized through participation in the Workplace Health Promotion (WHP) program. At the same time, the Welfare Plan continues to address employees’ non-financial needs, with a strong focus on well-being and work-life balance.

Canali is committed to preventing and eliminating all forms of discrimination, ensuring that any violations can be reported and sanctioned. The company fosters an inclusive work environment by prohibiting discriminatory practices across all HR processes, ensuring fairness regardless of gender identity, sexual orientation, physical or mental disability, ethnicity, nationality, age, socio-economic status, pregnancy, or maternity. As of 2024, 56% of Canali’s 1,349 employees are between the ages of 30 and 50, while employees under 30 represent just 6% of the workforce. In line with the company’s focus on generational renewal and attracting new talent, hiring in the under-30 age group nearly doubled the number of exits, despite naturally higher turnover rates. The workforce consists of 23% male and 77% female employees. During the year, a thorough analysis was conducted to establish a specific gender equality target. This led to the development of an implementation plan for adopting a management system certified under the UNI/PdR 125:2022 standard, aiming to achieve third-party certification.

The Group is committed to ensuring safe working conditions across all factories and operational sites by proactively preventing workplace injuries and occupational diseases. Canali S.p.A. leads production operations with dedicated tools for risk assessment, management, and prevention. In 2024, the company launched a project to implement an ISO 45001-compliant occupational health and safety management system, with the goal of enhancing internal oversight and obtaining certification. Other Group companies take appropriate measures to comply with local regulations and prevent workplace injuries, applying their own internal policies, which include guidelines for health and safety management.

“Made in Italy” is a core value reflected in a short, integrated supply chain that enables direct control over raw materials, processing, and business relationships. In 2024, monitoring of both first- and second-tier suppliers was enhanced, focusing on occupational health and safety, labour standards, and tax compliance. At the same time, through the adoption of the European Organisation Environmental Footprint (OEF) and Product Environmental Footprint (PEF) models, the company collects environmental data throughout the product life cycle, improving impact assessment and actively engaging supply chain actors to foster transparency and continuous improvement.

CAre is also reflected in customer satisfaction, through our ongoing commitment to high-quality products, dedicated services, and experiences that embody the brand’s values. Transparency remains central to building trust and enabling informed consumer choices.

Canali’s business ethics are integral to its ESG management, reflected in production sites that carefully manage environmental impacts while prioritizing the well-being of employees and local communities. In line with Legislative Decree No. 231/2001, Canali has voluntarily adopted an Organisation, Management, and Control Model (“Model 231”) and a Code of Ethics, actively monitoring key risk areas related to potential crimes and offences. A Supervisory Board oversees compliance with the Model and manages reports of any violations.

Italian know-how is a core asset for Canali, playing a key role in preserving traditional tailoring techniques and the heritage of Italian craftsmanship. 70% of the company’s annual value creation takes place in its own workshops located in Lombardy, Marche, and Abruzzo, while the remaining share is entrusted to specialized local suppliers. This short, integrated supply chain supports efficient logistics, in line with an approach based on quality, traceability, and business continuity.

Canali combines its values and heritage with innovation, embracing the challenge of evolving tradition through rigour and creativity. By adopting advanced technologies and sustainable methods, the Group enhances efficiency at every production phase, reduces waste, and controls costs. A standout example is the fabric cutting system developed at the Sovico cutting room, the result of over a decade of research and refinement. Digitalization further improves traceability, optimises product development and global distribution, and strengthens internal indicators monitoring for timely issue resolution.

Fondazione Canali Onlus is dedicated to social and health solidarity projects, focusing on small and medium-sized communities where its support can make a real difference. In 2024, alongside ongoing initiatives, new projects will support social, medical, and cultural causes. These include backing the social tailoring project by the Associazione Spazio 3R Riciclo Ricucio Riuso Impresa Sociale; funding for experimental drug research on Rett syndrome at the University of Trieste; and supporting dignified care and awareness efforts through Fondazione Maria Letizia Verga ETS (Torre della ricerca), La Meridiana (Il Paese Ritrovato), and L'abilità Associazione Onlus (Le piccole case).
For further details please refer to the dedicated section Fondazione Canali Onlus.

To foster manufacturing culture among youth, Canali partners with universities and professional training institutes, offering training programs and guided tours of its premises. Key 2024 projects include launching a three-year 'Fashion Operator' course at a Salesian Vocational Training Centre; participating in Fondazione Altagamma’s ‘Adopt a School’ initiative to enhance training and Made in Italy craftsmanship; and developing a specialized training course at Istituto Secoli in Novara.

Through the 'Canali per l'Arte' initiative, Canali supports artistic expression and explores the intersection of art and fashion, creating immersive cultural experiences at events such as concept store openings. For the reopening of its historic Milan boutique on Via Verri, artist Linda Carrara created "Nella Soglia", a site-specific artwork. To celebrate its 90th anniversary, Canali initiated a collaboration with the Visual Arts and Fashion Design departments at NABA, the New Academy of Fine Arts in Milan, with the goal of reinterpreting its history through a fresh and forward-thinking lens. This resulted in an installation and video showcased at the anniversary events.