Gruppo Florence demonstrates its deep commitment to continuously strengthening ESG responsibility and materializes this dedication through advanced and proactive solutions.
LETTER TO STAKEHOLDERS
Attila Kiss
Dear Stakeholders,
In this report, we would like to share with you the evolution of the journey undertaken by Gruppo Florence, which during 2023 experienced another crucial step, aimed again at the preservation of the values of manufacturing, and the simultaneous creation of an integrated production cluster, based on the core values of Tradition, Excellence, Innovation and Sustainability.
The first big news was the Permira fund’s entry among the Group’s shareholders during the year. In October 2023, Permira, a private equity firm operating on a global scale, acquired a majority interest in the Company from the founding shareholders: VAM Investments, Fondo Italiano d’Investimento, Italmobiliare, and the entrepreneurs of the companies that joined Gruppo Florence.
The entrepreneurs, management team, and VAM Investments reinvested a significant stake in the Group, thus confirming their commitment to the project; Fondo Italiano d’Investimento retained a minority interest; Francesco Trapani continued to hold the position of Chairman while I had the privilege of continuing to lead the Group as Chief Executive Officer.
In giving continuity to the strategy designed by Gruppo Florence, the entry of a major fund has helped accelerate our journey to growth focused on protecting and developing a sustainable supply chain, acting on the three ESG levers: Environmental, Social and Governance sustainability.
As at 31 December 2023, Gruppo Florence included 39 laboratories, each of them contributing complementary experiences, ideas and talents to create a highly specialized and differentiated range of services. Our growth has been supported by the integration of supply chain excellence businesses, which are leaders in their market segments, through expanding production capacity in intermediate processing, and inaugurating the leather goods business segment. This development, together with the adoption of sustainability performance appraisal criteria, has enriched our craftsmanship heritage, thus enabling us to provide the highest quality services to our customers.
During 2023, we intensified the adoption of best practices in ESG policies, a pillar of our value creation plan. Although identifying and implementing solutions takes time, ESG drivers remain an investment priority. We achieved significant results during 2022 with a multi-step procedure to qualify and monitor the supply chain on an ethical basis.
The goal is to continue qualifying the supply chain by supporting it in continuous performance improvement, thus ensuring our customers a monitored supply chain in accordance with the ethical and social principles adopted by Gruppo Florence. The concept of Quality, which has always been an integral part of our services to global fashion brands, has merged decisively with the values of Sustainability. This integration reflects our responsibility to the environment, local communities, and all stakeholders with whom we interact, driving our ambitious growth process.
The journey to sustainability that began with the birth of the Group has led to the consideration of all priority impact areas, setting an initial Sustainability Agenda. Among the main initiatives we have been engaged in are the measurement of our carbon footprint, the definition and implementation of a Chemical Management process, and investments in training programs in the fashion industry aimed at promoting the development of manufacturing skills. We have also developed proactive projects through the R&D Club, encouraging collaboration and innovation in product development, anticipating market needs, and offering cutting-edge solutions. In addition to traditional manufacturing services, the Group also offers digital technology services, which are a combination of innovation and sustainability through advanced technologies such as 3D design that facilitates consumption reduction.
Supply chain digitization is a project we have initiated to improve production efficiency, and shorten delivery times. The approach taken by Gruppo Florence not only addresses ESG challenges with great involvement, but also transforms them into proactive opportunities, thereby enhancing the preservation of our customers’ reputation. Our perspective extends far beyond mandatory requirements, investing in innovation, and collaborating with new partners to provide brands with cutting-edge services.
Gruppo Florence aspires to be more than merely a supplier, becoming a partner of excellence that embraces innovation, collaboration, and transformation in the sectors in which we operate, and offering advanced and proactive solutions to meet the needs of the global luxury market. In this second sustainability report, we share our contribution to creating a sustainable and responsible value chain. This approach not only addresses present and future customer needs, and social, environmental, and economic changes, but also allows us to communicate our ESG performance to stakeholders with the utmost transparency.
Our commitment to sustainability grows in ambition and concreteness.