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Ratti Group | Sustainability Report 2022

The scale of these risks is recognised by the related to climate change and environmental
various actors. In 2020 eight of the ten biggest phenomena.
risks – in terms of impact or probability – The fashion sector is one of the sectors which is
identified by the World Economic Forum in its driving the fight against climate change.
Global Risk Report, related to environmental The risks associated with climate change are
phenomena. basically of a nature which is exogenous to Ratti.
The Company, to mitigate the impact of these
The importance of such risks has been recognised risks rather than look for opportunities, retains that
by the 2023 Global Risk Report which, over it should continue with the sustainable pathways/
a period of ten years, has included six risks projects already under way.

Table 3 - Principal risks associated with climate change in the Ratti Group

DESCRIPTION OF THE MAIN RISKS MITIGATION ACTION TAKEN

In the long term the increase in temperatures could carry the risk that Ratti SpA BC, since 2013, has taken significant steps to boost efficiency in water
water procurement will face difficulties. use. This has resulted in a saving of 31% per metre produced in 2019 compared
with 2013 (see the environmental declaration of 27/12/2021 in accordance with
ISO14021). The main interventions include:
- a new Arioli washing line, a rope MCS, discontinuous washing systems;
- optimisation of work planning and replacing tanks;
- new silk scouring machinery.
In 2023 new and more efficient dye baths were installed.

In the long term climate change could have a negative impact on the The company spreads its risks, given that it deals with different types of fibre.
production/quality yield of natural fibres (cultivation, breeding), so the
Company could find it difficult to source raw materials. The same criteria In Ratti, policies have been in place for some time with regard to loyalty/partner-
may be observed for synthetic fibres if there is a scarcity of energy. ship in the supply chain, as well as differentiation in the supplier base to ensure
business continuity

During the period of transition a scenario could arise in which European Participation in Italian/European associations and working groups to safeguard
climate change legislation is stricter than it is in the rest of the world, with the textile supply chain.
a consequent increase in costs and loss of competitiveness in European
companies. Of fundamental importance will be the approach adopted by Enhancement of the sustainable content of materials and market-oriented ma-
customers to sustainability and the consistency they demonstrate. nufacturing.
Investments made in sustainability since the beginning of the 2000s

During the transition period climate change-oriented legislation could In Ratti, policies have been in place for some time with regard to loyalty/partner-
lead to the closure of production sites, with subsequent difficulties ship in the supply chain, as well as differentiation in the supplier base to ensure
obtaining raw materials/services. business continuity. There will also be future audit processes in strategic suppliers.

A scenario could arise in which new models of sustainable consumption It is suggested that legislative pressure could reduce the space for greenwashing
such as, for example, lengthening the life cycle of the product, could lead and that market preferences could reward sustainable companies. For more than
to a reduction in demand for the fabric. a decade, Ratti has launched organisational processes oriented towards environ-
In addition, possible greenwashing polices implemented by economic mental sustainability, both in terms of improving the efficiency of production pro-
operators in the textiles/fashion sector could penalise those companies cesses and in terms of offering a sustainable product. The Company has presented
that have invested in sustainability. a transparent and sustainable image to the market (also from a social accounta-
bility point of view).
The transition from the linear economy to the circular economy could involve a
reduction in consumption (a lengthening of the life cycle). However, it could also
offer an opportunity for service companies to reuse and repair products, as Ratti
has done through the PHORIA initiatives.
In order to limit the phenomenon of greenwashing, it is useful to participate in asso-
ciations and working groups whose aim is to safeguard the Italian/European textiles
supply chain.

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