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Due Diligence and Risk Analysis
Benetton Group pays the utmost attention to risk management and deems the assessment in advance and on an ongoing basis of the nature and level of the risks associated with the strategic objectives of fundamental importance for the creation of sustainable value. Benetton Group annually updates the due diligence process of its value chain, in order to identify, prevent and mitigate the risks for the business and the current and potential impacts of the activities carried out. The analysis gives maximum priority to the environmental and social dimension and is aligned with the OEDC Guidelines on Due Diligence in the Garment and Footwear Sector. In particular, Benetton Group:
- has carried out a mapping of its value chain and considered the sector in which it operates, the type of product, the geography of its operations, the business model and supply practices as risk factors;
- has identified the main environmental and social risks to which the Group is exposed, assessing their probability and impact;
- has prioritized the mapped risks and identified appropriate mitigation actions.
The social and environmental due diligence process is carried out with the contribution of the company managers, and through consultation with the relevant stakeholders (employees, suppliers, associations); specifically, the Benetton Group periodically liaises with the working groups promoted by the industry, in which there is a confrontation on the interests of the categories represented (NGOs committed to guaranteeing respect for human rights and environmental protection, representatives of suppliers and workers, other brands and retailers). In the case of critical issues, Benetton Group reserves the opportunity to deepen the discussion through a dedicated dialogue with the categories of interested stakeholders (e.g. trade union representatives).
The risk analysis was conducted internally, with the contribution of company managers, whereas it does not provide for direct involvement of external stakeholders.
Risk analysis is an integral part of the corporate system and is a dynamic process, subject to continuous updating.
In order to identify the environmental risk factors, the IPE’s environmental compliance database, Environmental Performance index and Material Sustainability Index (MSI) of Sustanable Apparel Coalition were considered.
In order to identify social risk factors, we referred to the ILO conventions, the principles of SA8000, UN Guiding Principles on Business and Human Rights, United Nations Sustainable Development Goals, the WBCSD database – The Human Rights Opportunities and World Economic Forum – The Global Risks Report.
Please, download here below the main policies for Benetton Group:
Benetton Group is committed to prevent the generation of textile waste and not to waste the value of end-of-life garments. For this reason, it adopts a “make-to-order” production system, aimed at minimizing overstock. This is however reallocated in the secondary sales channels, as is the case for defective stock and production samples.
As of 12.31.2022 there are 261,000 items of obsolete goods in the warehouse, which will be managed through the appropriate channels. During 2022, no items were scrapped.