GANNI RESPONSIBILITY REPORT 2023

It’s early April 2024 at the time of writing this and it’s been a rough ride the past 12 months, with some wholesale institutions folding and others barely scraping by. This turbulence has put brands under pressure, challenging the reliability of revenue streams that were once considered safe bets. It’s a stark reminder that no brand is immune to these shifts. I bring this up because it directly ties to the financial challenges of embarking on a green transition – an endeavour that is far from cheap. And while I might sound like a broken record, it’s a message worth repeating: the journey towards sustainability will cost you, and brands need to pay the premium, as consumers won’t and shouldn’t. 

Looking back on GANNI’s own path this year, we are about to publish our financial results for 2023, showing modest growth. A far cry from the double-digit growth we've grown accustomed to in recent years. Yet, this gives me a sliver of hope and a sense of resilience, because despite the slower financial growth, we continued to invest in sustainability initiatives and saw a carbon decrease of 7% in absolute terms from a 2021 baseline during a period in which the company grew 18% on average from 2021-2023. 

A milestone for us last year was following through on a decision to phase out virgin leather from our collections, a choice informed by the material’s significant carbon footprint. This was no small feat, requiring a reevaluation of our values and a concerted effort to manage stakeholder expectations. It's been a challenging debate, particularly against the traditional luxury narrative surrounding leather. Yet, we’re continuing to explore innovative alternatives, driven by the belief that material innovation will eventually offer solutions that exceed the offering of virgin leather while resonating with our customers. This belief was validated as we continued to launch best-sellers in 2023 without relying on virgin leather, proving that our audience values creativity and responsibility over traditional luxury materials.

Our commitment to material innovation hasn’t stood still either. In 2023, we collaborated with seven “Fabrics of The Future” partners, and the next phase is to amplify these projects and embed more in our main collections. It’s been gratifying to see the ripple effect of our initiatives, encouraging other major brands and groups to follow suit and commit to material innovations we have championed.

The living wage initiative remains a cornerstone of our social commitments, with all contractual tier 1 suppliers expected to be onboarded in living wage initiatives by 2025. And we’re continuing our digitalisation work on supply chain transparency too. 

Internally, we’ve mobilised a carbon squad focused on carbon reduction, spreading across all company departments. This cross-functional effort is crucial for driving meaningful change, and we’ve even tied our senior management's bonuses to our carbon targets – because, as we know, financial incentives speak volumes.

A project I personally love is our insetting initiatives, including the installation of solar panels at four supplier locations. This tangible step towards renewable energy use in our supply chain is already showing positive results in our carbon audit, reinforcing that our actions are making a difference. 

Despite the challenges 2023 has thrown our way, my optimism remains. We have a long road ahead, especially in the realm of circularity, but our commitment to pushing forward and making strides in our strategy is stronger than ever. Your support and encouragement mean the world to us as we continue on this journey.

Thank you for cheering us on! 

Best, 

Nicolaj