Page 74 - Sustainability Report 2019

CHAPTER 6 | Governance and monitoring of corporate ethics and risk management
PRINCIPAL RISKS ASSOCIATED WITH CORRUPTION
The risk of acts of corruption includes the possibility that corporate representatives could commit acts that are illegal and significant from an administrative point of view and/or criminal in relation to third parties. With regard to private individuals the risk of corruption is adequately monitored by the Parent company, which in 2018 carried out a complete mapping of activities that are sensitive to crimes covered by Legislative Decree 231/01, which includes all corruption offences relating to both public administration and private individuals. As for the Public Administration, the Ratti Group considers this risk to be limited given that it does not take part in tenders.
The risk from acts of corruption is still less significant for other Group companies since the activities that generally risk amounting to corruption are not executed by these companies or – if they are carried out – are of marginal importance due to the fact that these companies only carry out workmanship on an outsourced basis for the Parent company and/or on behalf of the latter.
For details see paragraph 6.3 “Managing risks to include sustainability”.
Description of the main risks
Mitigation action taken
The possibility that corporate representatives might commit illegal acts that are particularly significant from an administrative and/or criminal point of view, and could lead to penalties or reputational damage.
The Group’s Code of Ethics and MOG 231/01 of Ratti SpA with the addition of crimes of corruption between private individuals.
Presence of a Whistleblowing policy.
The adoption of the Suppliers’ Code at Group level.
Establishment of the Group’s Code of Ethics with the role of disseminating the principles of the Code of Ethics and dealing with any reports of violations.
During 2019, training was carried out for top management on MOG 231/01 in Ratti SpA and on the Code of Ethics in Creomoda, La Maison des Accessoires and Textrom.
THE MAIN RISKS OF A SOCIAL NATURE
The analysis of social aspects identified the type of risk with the greatest impact: those relating to the health and safety of the end customer. Consumers are increasingly sensitive and attentive to their choices: they therefore demand a product that is not only safe, but also pays attention to environmental factors and satisfies ethical conditions. These topics receive great attention in the fashion sector and from the Group’s major customers.
For further information see Chapter 3 “Material becomes creation”.
Description of the main risks
Mitigation action taken
The risk of harm to the health of end- consumers due to chemical substances in the products.
The risk of not responding to the expectations of customers who require an increasing use of products that come from certified supply chains.
The Group partners with its suppliers to develop solutions that meet high safety standards, including the REACH regulation.
Ratti SpA has, from its management system and subsequent achievement of Seri.co certification, the following: requested ecotoxicological compliance for suppliers of chemical products, raw materials and external manufacturing, tests on chemical products, dyes and wastewater with MRSL parameters; Oeko-tex certification for polyamide, polyamide/elastane, jersey cotton/elastane, polyester/ elastane with requested extension to cotton/viscose; GOTS (Global Organic Textile Standard) certification for silk, cotton and silk/cotton fabrics printed in a single colour; the use of certified raw materials such as BCI (Better Cotton Initiative), GRS, FSC and experimentation with the reuse and recycling of textile fibres. In 2019 RCS (Recycling Claim Standard) certification was obtained for recycled fabrics.
The Group launched a number of projects including: elimination from the surfactant of EDTA, a chelating compound, known for its low biodegradability, that can accumulate in wastewater; the development of a colour card using only natural dyes of animal and vegetable origin, with the aim of reducing the use of synthetic products; the development of safeplan, software for managing chemical products/dyes; the elimination of chemical products containing PFCs.
Also during 2019, apart from requiring all suppliers of chemical products and dyes to guarantee compliance with the MRSL ZDHC, they were requested to register products in the ZDHC gateway.
Textrom uses the raw materials and dyes/chemical products sent by Ratti, and therefore respects the protocols established by Ratti SpA.
La Maison des Accessoires and Creomoda do not use chemical products/dyes, given that they hem fabrics sent by Ratti SpA.
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