SUSTAINABILITY REPORT — 2021

I PRA D M P A C T

PRADA Group

PROD

LETTERS TO STAKEHOLDERS 6

1 PRADA GROUP 9
- History
- Value Creation
- Corporate Governance Model
- Risk Management
- Code of Ethics
- Tax Strategy and Compliance
- 2021 Highlights

2 SUSTAINABLE DEVELOPMENT 37
- Sustainability Journey
- Sustainability Policy
- Sustainability Strategy
- Stakeholders and Materiality Analysis
- Sustainability Risks Management
- Sustainable Finance

3 RESPONSIBLE MANAGEMENT 57
- Industrial Strategy
- Supply Chain Responsible Management
- Trademark Protection
- Product Responsibility

4 FOR PLANET 68
- Climate Strategy
- Responsible Use of Natural Resources
- Responsible Waste Management
- Circular Thinking
- Preservation of the Territory
- Partnership: The Fashion Pact

5 FOR PEOPLE 91
- Workforce
- Champion Diversity and Equal Opportunity
- Diversity and Inclusion Advisory Council
- Prada Academy and Skills Development
- Talent Attraction and Retention
- Workers' Health and Safety and Respect for Human Rights
- Partnership: IMLux

6 FOR CULTURE 112
- Fondazione Prada
- SEA BEYOND
- Prada Mode
- Partnership: Fondazione Bonadonna

7 NOTES ON THE METHODOLOGY 122
- Scope and Reporting Standard
- GHG Calculation Methodology and Emissions Factors
- Focus on Material Aspects

8 GRI INDEX 134

PRADA S.p.A.
HONG KONG
STOCK CODE: 1913

MOVING FOR WARD WITH PURPOSE

Prada Group Purpose

With a thoughtful and pioneering vision,
the Prada Group is a global leader in luxury.
We own some of the world’s most prestigious brands:
Prada, Miu Miu, Church’s, Car Shoe, Marchesi 1824
and Luna Rossa.

By being DRIVERS of CHANGE,
we offer an unconventional dialogue
and interpretation of the contemporary,
as expression of our way of doing business
for PLANET, PEOPLE and CULTURE.

Be DRIVERS OF CHANGE

RE-THINK
THE RULES

INNOVATIVE
TRADITION

SPIRIT OF
EXCELLENCE

for PLANET
for PEOPLE
for CULTURE

UNIQUENESS
OF TALENTS

BEYOND
BOUNDARIES

SUSTAINABLE
PATHS

The Prada Group's founding values are deeply rooted in its three sustainability pillars:
Planet, People and Culture.

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— Letter to Stakeholders

2021 was a transformational year for the Prada Group. Decisive actions to strengthen the business and navigate the changing luxury market produced strong growth and increased profitability.

The Prada Group delivered against each of its strategic priorities: distinctive identity, product excellence, industrial know-how, direct distribution and sustainability.

The appointment of two new Board members, both independent with track record in structuring and implement ESG policies, confirms our commitment to sustainability.

In 2021, Prada S.p.A. Board of Directors approved its ESG strategy,

and we are implementing a full range of initiatives to respect the planet, its people and the cultural debate. I am truly confident that Prada will achieve most of its targets.

We confirm that all our investments are for the future as the whole organization is striving for long-term growth and not short-term gains. Prada is on course to meet the medium-term objectives as announced at our Capital Markets Day in November 2021, and the solid financial results achieved in 2021 make me confident we will reach our goals. However, growing geopolitical tensions and escalating hostilities are of great concern and we feel for the people suffering because of the war.

Paolo Zannoni
Chairman of Prada S.p.A.
Milan, May 3, 2022

— "I believe that it is crucial to pursue a more sustainable business model, capable of an agile and coherent response to the increasingly complex challenges of the upcoming years, thanks in part to the fundamental engagement of our key stakeholders."

Lorenzo Bertelli
Prada Group's Head of Corporate Social Responsibility

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Message from the Prada Group's Head of Corporate Social Responsibility

2021 was a year of important milestones for the Prada Group's sustainability journey.

When I joined Prada S.p.A.'s Board of Directors, discussions of ESG (Environmental, Social and Governance) issues reached the highest levels of the organization, highlighting once again our commitment to such matters, which are becoming more and more visible for internal and external stakeholders. The presence on the Board of two sustainability experts from the beginning of 2022 strengthened governance even more, due in part to the establishment within the Board of a Sustainability Committee, of which I am a member and which will be essential to implementing the Group's sustainability strategy.

Throughout 2021, we were engaged in promoting an internal culture more focused on social and environmental topics. The strong awareness, along with the Group's long-term investments, enabled to advance quickly on key matters that have had a strategic role for some time, such as environmental protection and the fight against climate change. In fact, in November 2021, for Capital Markets Day, we unveiled our sustainability strategy and an ambitious roadmap to reduce GHG emissions, approved by the Science-Based Targets initiative. We also described our plan for achieving our targets of cutting direct (Scope 1 and 2) emissions by 2026, and a series of other goals in terms of sustainable raw materials and packaging.

We reiterated our commitment to diversity, equity and inclusion with the launch of numerous initiatives and programs to recruit, cultivate and retain diverse talents and to create a more inclusive workplace culture, not only within our organization but also in the industry.

Our partnership with UNESCO's Intergovernmental Oceanographic Commission continued for the SEA BEYOND education project, launched in 2019 and dedicated to the promotion of ocean literacy and ocean preservation, with a program enriched with new initiatives to involve a growing community.

These choices demonstrate the consistency between the Prada Group's core values and its commitment to carrying out concrete projects. I believe that it is crucial to pursue a more sustainable business model, capable of an agile and coherent response to the increasingly complex challenges of the upcoming years, thanks in part to the fundamental engagement of our key stakeholders.

Lorenzo Bertelli
Prada Group's Head of Corporate Social Responsibility

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1.— PRADA GROUP

Highlights 2021

£3.4

Billion

2021 Revenues

13,140

Workforce

at December 31, 2021

635

Directly Operated Stores

at December 31, 2021

Industrial facilities

at December 31, 2021

£2.7

Million

Investments in 2021

£3

Million

Donations in 2021

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The Prada Group is one of the world leaders in the luxury goods sector where it operates with the Prada, Miu Miu, Church's and Car Shoe brands in the design, production and distribution of luxury handbags, leather goods, footwear, apparel and accessories. The Group also operates in the eyewear and fragrance industries under specific licensing agreements stipulated with industry leaders, and with the acquisition of Pasticceria Marchesi 1824, it has made its entry into the food industry, where it is positioned at the highest levels of quality. Finally, in

2021, to fully develop its potential, the Luna Rossa brand also becomes part of the Prada Group following the acquisition of Luna Rossa Challenge S.r.l.. Prada S.p.A. (the "Company" or "Parent Company"), together with its subsidiaries (collectively the "Group"), is listed on the Hong Kong Stock Exchange (HKSE code: 1913). At December 31, 2021, the Group's products were sold in 70 countries worldwide through 635 Directly Operated Stores (DOS) and a selected network of luxury department stores, independent retailers and franchise stores.

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History

1913

The Prada brand dates back to the beginning of the last century. In 1913, Mario Prada opens a luxury store in the Galleria Vittorio Emanuele II in Milan, selling leather handbags, travelling trunks, beauty cases, luxury accessories, jewels and articles of value.

1919

Thanks to its exclusively designed goods, handcrafted using fine materials and sophisticated techniques, Prada rapidly acquires wide popularity across Europe to the point that in 1919, Prada becomes an official supplier to the Italian Royal Family. Since then, Prada has been able to display the House of Savoy coat of arms and knotted rope design on its trademark logo. The Group sees a turning point in the development of its activities at the end of the Seventies, when Miuccia

Prada, Mario Prada's granddaughter, launches a partnership with Tuscan entrepreneur Patrizio Bertelli. This partnership combines creativity and business ideas laying the foundations of the international expansion that was to come. Patrizio Bertelli breaks new ground in the luxury goods sector, introducing a business model in which he keeps direct control over all processes, applying excellent quality criteria across the entire production cycle. Miuccia Prada's creative talent and avant-garde approach attracts the attention of the global fashion industry, while her ability to look at the world from an unconventional vantage point allows her not only to anticipate but, quite often, to set new trends.

1977

In 1977, Patrizio Bertelli consolidates the production resources that he has built up over the previous ten years in the leather goods segment and obtains an exclusive license from Miuccia Prada to produce and distribute leather goods bearing the Prada brand name. In the following years, the activities of the two families are gradually brought together within a single Group.

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1993

1983

In 1983, the Prada family opens a second store in the prestigious Via della Spiga in Milan, one of Europe's key shopping destinations. The new store showcases the new brand image as it blends traditional elements with a modern architectural setting: a revolution and a true benchmark for luxury retail.

1988

In response to the growing appreciation for Prada designs, the women's range is extended from leather goods to include the first footwear collection in 1979 and the first womenswear apparel collection in 1988. At the same time, a process of internationalization begins with the openings in New York and Madrid, followed by London, Paris and Tokyo.

1993

In 1993, Prada makes its debut in the men's segment with its first men's apparel and footwear collection. That same year, Miuccia Prada's creative inspiration leads to the establishment of a new brand — Miu Miu — designed for women who are trendy, sophisticated and particularly fashion-forward and aware of avant-garde. Miu Miu now offers women's ready-to-wear, bags, accessories, footwear, eyewear and fragrances. Also in 1993, alongside their entrepreneurial activity, Miuccia Prada and Patrizio Bertelli create "Milano Prada Arte", then become "Fondazione Arte", to develop their interests in art and culture in general.

1997

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In 1997, inspired by his passion for sports, Patrizio Bertelli creates the "Prada Challenge for the America's Cup 2000" sailing team. Prada's leisure products, with the distinctive "Linea Rossa" logo, are also launched in 1997.

1999

In 1999, the prestigious Church's brand, established in 1873 in Northampton, becomes part of the Prada Group; the investment is initially shared with a private equity firm, and then Prada completes the acquisition in 2007. The brand, specialized in high-end leather footwear, is a worldwide recognized symbol of top quality British tradition and sophisticated elegance.

2001

In 2001, the Prada "Epicenter" store, designed in collaboration with Rem Koolhaas, opens on Broadway, New York. This is the first store of the "Epicenters" project whose purpose was to rethink the shopping concept with a new approach and to try out innovative interactions with customers. A second "Epicenter" store is opened in Aoyama, Tokyo, followed by a third, on Rodeo Drive, Beverly Hills in 2004. During the same year, Prada acquires control of Car Shoe, a historic Italian brand renowned for its exclusive car-driving moccasins.

2003

In 2003, Prada enters into a licensing agreement with the Italian eyewear manufacturer Luxottica, a global leader in the eyewear industry, which currently produces and distributes eyewear under the Prada and Miu Miu brands. Also in 2003, a new partnership is established for the production of fragrances, which first release, Amber, is launched in 2004.

2006

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In 2006, Miu Miu organizes its first fashion show in Paris to better characterize its own identity. The first Prada Phone by LG is launched in 2007, the world's first touch screen cell phone. The successful partnership is renewed in 2008 and in 2011 with two further releases.

On June 24, 2011, Prada S.p.A. is successfully listed on the Main Board of the Hong Kong Stock Exchange. In 2014, Prada S.p.A. announces the acquisition of control of the company Angelo Marchesi S.r.l., historical Milanese patisserie founded in 1824, thus marking the entry into the food segment.

2015

In 2015, the Prada Group completes the acquisition of the French Tannerie Mégisserie Hervy to further strengthen its know-how along the entire value chain. That same year, the Prada Group and Coty Inc. launch the first Miu Miu fragrance and the commercial development of the Marchesi brand begins to take shape with the opening of the first patisserie in via Montenapoleone, Milan.

2016

2016 features important manufacturing investments, all made following a sustainable industrial development and respectful of the environment, leading to the completion of a new

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leather production site and to the renovation of various factories between Tuscany and Umbria, in Italy. The first construction phase of the new logistics hub for finished products is completed in Tuscany to end its second phase two years after. In 2017, a restyling plan of the Prada and Miu Miu stores is coupled with a broad program of pop-up events to further support retail activities. Also in 2017, the Prada Group is admitted to the cooperative compliance regime with the Italian Revenue Agency introduced with Italian Law Decree 128 of 2015.

2018

In 2018, besides the usual Milan and Paris fashion shows, the Group launches two major events for the presentation of pre-collections: Miu Miu Croisière at the Hotel Regina in Paris and the Prada Resort in New York (in Shanghai in 2019). The same year, Miuccia Prada receives the Outstanding Achievement Award from the British Fashion Council for her extraordinary contribution to creativity and the global fashion industry.

2019

In 2019, the Prada Group obtains full control of the retail network through the acquisition of Fratelli Prada S.p.A., the long-standing franchisee of Prada monobrand stores in Milan. In December, Prada S.p.A. and L'Oréal announce the stipulation of a long-term licensing agreement, effective from January 1, 2021, for the creation, development and distribution of Prada brand luxury cosmetic products.

2020

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In 2020, the year when the beginning of the Covid-19 pandemic wreaked havoc across the globe, Raf Simons become the Creative Co-Director of Prada and other important managers join the team, with a view to fostering long-term growth even with the uncertainties arising from the public health emergency. In July of the same year, Prada S.p.A. obtains "AEO Full" (Authorized Economic Operator) certification from the Italian Customs Agency, becoming one of very few taxpayers in Italy to hold simultaneously this qualification and participate in the Cooperative Compliance regime with the Italian Revenue Agency.

In 2021, the $36^{\text{th}}$ edition of America's Cup presented by Prada becomes the most viewed one ever, and the Luna Rossa sailing team wins the Prada Cup Challenger Selection Series for the second time in history. During the year,

the Prada Group is founding member of the Aura Blockchain Consortium with LVMH and Cartier and purchases a stake in Filati Biagioli Modesto S.p.A. with the Zegna Group; it also buys out the remaining stakes in the Travel Retail Shop companies dealing with duty-free store activities, and acquires the ownership of Luna Rossa Challenge S.r.l. so as to fully develop the commercial value of the Luna Rossa brand. In addition, a long-term licensing agreement with L'Oreal for the creation, development and distribution of Prada brand luxury cosmetics enters into effect.

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— Value Creation

The success of the Group's brands is based on the original business model, which combines skilled craftsmanship with industrial manufacturing processes.

This integration enables the Group to translate its innovative fashion concepts into viable commercial products, while retaining flexible capacity, technical control over know-how, quality and sustainability standards, as well as production costs.

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Creativity and Innovation

Creativity is at the heart of the manufacturing process of the Prada Group.

Universally recognized as a reference for the entire fashion industry, Miuccia Prada has the talent to combine intellectual curiosity, the pursuit of new and unconventional ideas, and cultural and social interests with a strong sense of fashion. This has made it possible to establish a genuine design culture, based on method and discipline, which guides everyone who works in the creative process.

— “Close observation and curiosity about the world are at the very origin of the Prada Group’s creativity and modern outlook. In society — and therefore in fashion, which in many ways reflects it — the only constant is change. The transformation and innovation of conventions, underlying all evolution, have led us to interact with different cultural spheres both near and apparently far, helping us capture and anticipate the spirit of the times. Today this is no longer enough: we must be the drivers of change, with the flexibility to translate the demands of the market and society into tangible actions that guide us every day in our business.”

Miuccia Prada and Patrizio Bertelli

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With this unique approach, Prada anticipates trends and often influences them, while continually experimenting with new designs, fabrics and production techniques. Experimentation and idea-sharing are the essential components of the design process throughout the Group. The time spent at the drawing board and in the testing room on design research and development is fundamental to formulating each collection so that the clothing, footwear and accessories complement each other and create a well-defined image reflecting the brands. In 2020, with the appointment of Raf Simons as co-creative director of the Prada brand, in partnership with Miuccia Prada, the Group has created a new model of creative authorship, underlining the relevance and power of dialogue. This partnership can be interpreted as a reaction to an epoch with fresh possibilities, permitting a different point of view and approach to established methodologies. In fact, innovation is an inherent facet of the identity of Prada: a willingness to push boundaries, to experiment, to take opportunities to advance. If the notion of a partnership is to work jointly, the result of that conversation may not only be product but also the propagation of a thought and a culture. A pure vision of creativity, in which the product is a vehicle of these concepts.

Prada's flair and the strong appeal of its tradition and quality standards continue to attract talented people from all over the world who want to share the creative experience. This results in teams involved at all stages of the creative process: from fashion design to manufacture, from architecture to communication and photography, from store interior design to all the unique and special projects in which the Prada Group is involved.

Furthermore, retracing the history of the company, it becomes very clear how incursions into seemingly distant worlds, such as cinema, architecture, literature, sport and art, find a common ground in the creative processes. Creativity is inexhaustibly linked to those special projects that over time not only define images, fashion shows and store settings, but also outline the collections that are joined together by an extremely fluid relationship.

In 2021, the American WWD awarded Miuccia Prada the John B. Fairchild Honor for Lifetime Achievement to celebrate her continuing influence on fashion, while in 2020 it was the British Fashion Council to award her the "Fashion Awards 2020" in the Creativity category.

Raw Material Procurement and Industrial Production

Prada Group's defining asset, know-how, creates continuity and balance between creativity and discipline, tradition and technological progress, craftsmanship and industrial production.

Group's approach to manufacturing is substantially based on two key principles: the vocation for craftsmanship, which is an essential asset for production and a unique distinction for every brand, and the constant quest for innovation, ensuring the continuous evolution of skills and expertise.

Raw materials are an essential part of product quality and are of primary importance for all the Group's brands. In many cases the fabrics and leather are made especially for Prada, according to stringent technical and style specifications that guarantee excellence. Constant search for new materials has always been part of the Prada Group's DNA since the very beginning.

The Prada Group's products are manufactured in the 23 directly owned production sites (20 in Italy, 1 in England, 1 in France and 1 in Romania), in addition to a wide network of selected, as well as closely monitored, industrial manufacturers, which are supplied with internally made raw materials, patterns and prototypes. This system, which enables close oversight of each step of the process and ensures high-quality workmanship, emphasizes the manufacturing excellence of each facility and guarantees significant flexibility in the organization of production.

Industrial capacity represents a competitive advantage for the Group, strengthened through the continuous research and experimentation of materials and production techniques, as well as investments in facilities, supply chain and people.

The core of production's employees have worked for the Prada Group for around 20 years in average; this ensures an extremely high level of specialization, together with an in-depth knowledge and alignment with the Group's brands unique concept. In recent years, through the Prada Academy, Prada has heavily invested not only in enhancing the skills of its employees in general, but above all in transmitting the Group's values and production know-how to the younger generations.

The Group employs considerable resources to ensure excellence in the quality of its raw materials and processing of its products, and in such manner

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also protects the health and safety of the employees and consumers. Each industrial division employs technicians whose responsibility is to ensure the achievement of these goals through strict controls over incoming and outgoing materials and daily visits to external production sites. Product and process controls not only ensure that standards are being met, but also contribute to ongoing improvement. The Industrial Compliance Office ensures that the production and distribution of its products worldwide always comply with applicable laws. The Office also has to grant the compliance with all current legislation, and the development of standards and procedures that are often more stringent than those required by law. The ultimate goal is to be proactive with respect to the entire system, made up of employees, clients, manufacturers and the outside environment as a whole.

Prada Group's industrial sites

at December 31, 2021

industrial sites

in Italy

235,000

sqm total area

Leather Goods	Footwear	Clothing
Arezzo - Italy
Via Gobetti, 82/86
52100 Arezzo (AR)	Buresta, Arezzo - Italy
Via Aretina, 552-556
52025 Arezzo (AR)	Ancona - Italy
Via Luigi Albertini, 20
60131 Ancona (AN)
Figline - Italy
Via Urbinese, 33 Località Matassino
50063 Figline e Incisa V.no (FI)	Civitanova Marche, Macerata - Italy
Via Pertini, 41
63812 Civitanova Marche (MC)	Città di Castello, Perugia - Italy
Via C. Treves, 13 Loc. Cerbara
06012 Città di Castello (PG)
Figline - Italy
Via J.F. Kennedy, 21
50063 Figline e Incisa V.no (FI)	Dolo, Venice - Italy
Via Dell'Industria, 1/A
30031 Dolo (VE)	Fucecchio, Florence - Italy
Via F. Magellano, 5/7
5005 Fucecchio (FI)
Limoges - France
65 Route de Périgueux Lieudit Parpaillat, 87170 Isle	Levane, Arezzo - Italy
Via Carducci, 6
52023 Levane (AR)	Levanella, Arezzo - Italy
Via Aretina, 403
52025 Levanella (AR)
Milan - Italy
Via Ripamonti, 129
20141 Milan (MI)	Montegranaro, Fermo - Italy
Via Alpi, 97 Loc. Villa Luciani
63812 Montegranaro (FM)	Montone, Perugia - Italy
Via dell'Industria, 10-12
06014 Montone (PG)
Piancastagnaio, Siena - Italy
Via Arno, 39
53025 Piancastagnaio (SI)	Northampton - UK
St. James Road
Northampton NN5 5JB	Torgiano, Perugia - Italy
Loc. Ferriera, 46
06089 Torgiano (PG)
Scandicci, Florence - Italy
Via Pisana, 463
50018 Scandicci (FI)	San Giovanni Valdarno, Arezzo - Italy
Via Pruneto, 6
52017 San Giovanni Valdarno (AR)
Sibiu - Romania
Popa Șapcă, 1
550108 Sibiu, Jud. Sibiu
Terranuova, Arezzo - Italy
Via Poggilupi, 992-998
52028 Arezzo (AR)
Valvigna, Arezzo - Italy
Strada Lungarno, 1213 - 1261
52028 Valvigna (AR)

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Distribution

Over the years, the Group has expanded its distribution network to 635 Directly Operated Stores (DOS) in the most prestigious locations of the major international shopping destinations, consistent with the image, heritage and exclusivity of each brand. This extensive network, subject of continuous research and renovation, is a true asset for the Group as it showcases the new collections and is the fulcrum of the omni-channel strategy. The proprietary E-commerce sites complete the direct customer journey by offering a constantly evolving shopping experience integrated with physical stores. The DOS serve as more than a primary sales function as they are also an important means of communication: they are the true ambassadors of the brand, conveying the image of each brand consistently. The DOS are integrated with the E-commerce strategy and allow the Group to monitor in real time the sales performance of the various markets for each brand and product category.

The wholesale channel (department stores, multi-brand stores and franchisees) provides additional venues selected on the basis of their prestigious location and enables direct, immediate comparison with the competition. The Group's significant developments in the digital world have allowed to consolidate important partnerships, including top online retailers (E-tailers).

As at December 31, 2021, the retail channel generates 88% of the Prada Group's consolidated sales while the wholesale channel accounts for the remaining 12%.

Customer Centricity and Digital Acceleration

In keeping with the Prada Group's overall long-term growth strategy, also in 2021 the implementation of a customer-centric approach for enriching the retail and omni-channel experiences and the acceleration of the digital transformation process were the primary strategic objectives pursued by the Retail Innovation & E-Commerce Department, part of the Marketing Department.

Focusing on customer centricity and leveraging the luxury market paradigm shift - where human-led touchpoints still maintain a critical function in a modern digital society, which helps to build loyalty and elevate a brand's image and positioning - retail stores and sales personnel continue to play a key role in the customer's journey. The Prada Group has been investing heavily in "Human Touch" principles to strengthen its storytelling, deliver unique experiences and forge close relationships with its customers.

Moreover, the sales staff has been empowered with new digital technology to reach a customer portfolio personally and to nurture the brands. The technology for sales staff has also been assisted by the marketing ecosystem to drive orchestrated triggered campaigns designed to reach clients with a personalized offer in terms of products, contents and timing.

Concerning the digital channel, particular emphasis has been put on further enhancing the online performance and results of the online channel, which accelerated with solid growth in 2021 in terms of revenues and as a share of the Group's earnings. The positive results of the online channel were driven by multiple initiatives launched in 2021 centered on improving the customer experience and optimizing the operational and digital performance.

The re-styling of Prada Group websites in line with the brands' visual identities, the addition of new features and services to the customer, the overall enhancement of the operating and technological infrastructures, as well as the implementation of an integrated digital communication strategy - including full use of social media channels - have all provided an additional boost to the channel performance.

Looking ahead, the Prada Group will focus on delivering elevated customer experiences by further blending traditional "channel views" and evolving towards a seamless and unified ecosystem to enhance the traditional channels. This will be achieved by pushing the boundaries of customization by providing real-time personalized experiences, leveraging artificial intelligence and cutting-edge technology applications to tailor the value proposition, and designing and enriching new customer experiences to expand the Prada Group's storytelling and engagement across physical, digital and parallel worlds and ecosystems.

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Corporate Governance Model

SHAREHOLDERS MEETING

AUDIT FIRM

BOARD OF DIRECTOR

BOARD OF STATUTORY AUDITORS

CHIEF EXECUTIVE OFFICERS

"ORGANISMO DI VIGILANZA" EX LEGISLATIVE DECREE 231/2001

AUDIT COMMITTEE

REMUNERATION COMMITTEE

NOMINATION COMMITTEE

SUSTAINABILITY COMMITTEE

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The corporate governance model adopted by the Company consists of a set of rules and standards aimed at establishing efficient and transparent operations within the Group, to protect the rights of the Company's shareholders, to enhance shareholder value and to uphold the Group's credibility and reputation. The Company maintains therefore the highest standards of corporate governance to create long-lasting sustainable value for shareholders and for all stakeholders.

The corporate governance model adopted by the Company complies with the applicable laws and regulations in Italy, where the Company is incorporated, as well as with the principles set out in the Corporate Governance Code (the "Code") contained in Appendix 14 of the Listing Rules of the Hong Kong Stock Exchange.

The Company has adopted a "traditional" governance and control system, in compliance with the Italian Civil Code, consisting of a management body, the Board of Directors, a supervisory body, the Board of Statutory Auditors, and an auditing and accounting control body, the Audit Firm.

The Board of Directors is the Company's highest decision-making body vested with all the ordinary and extraordinary management powers. The Board of Directors can also discharge its responsibilities through delegation; to this respect, the Company has adopted a system of delegated powers and powers of attorneys aimed at ensuring the segregation of duties and the efficient and regular performance of the activities in accordance with the procedures adopted by the Company itself.

With a view to achieving a sustainable and balanced development, the Company views diversity at the Board level as an essential element to attain its strategic objectives and its development. All Board appointments are based on merit and candidates are proposed and selected based on objective criteria, with due regard for diversity within the Board. Diversity encompasses a wide range of factors, including but not limited to gender, age, cultural and educational background, professional experience, skills, knowledge and nationality.

The current Board of Directors was appointed by the Shareholders' Meeting of the Company held on May 27, 2021 for a term of three financial years (2021-2023). Initially made up of nine Directors, as of January 28, 2022 this number was increased to eleven with the appointment of two additional Independent Non-Executive Directors. Therefore, the Board is currently made up of five Executive Directors, one Non-Executive Director and five Independent Non-Executive Directors. All Directors have distinguished themselves in their respective areas of expertise and provided valid support to the Board of Directors in their respective functions.

The Board of Directors is responsible for the ordinary and extraordinary management of the Company and discharges its duties by carrying out all acts it deems necessary or useful to implement and attain the Company's corporate purpose, except for those acts specifically reserved for approval by the shareholders' general meeting by relevant laws or the By-laws.

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In particular, the Board of Directors is responsible for setting the overall strategy, as well as reviewing the operational and financial performance of the Company and the Group. Therefore, the Board considers and resolves on all matters concerning the overall Group strategy, the Group's strategic objectives, the annual budget, annual and interim results, approval of

major transactions, connected transactions and any other significant operational and financial matters. In addition, the Board of Directors has the overall responsibility for setting and monitoring the Group's sustainability strategy and for ensuring that appropriate and effective internal control and risk management system is in place.

Board of Directors

	Role	Gender	Age
Executive Directors
Paolo Zannoni	Chairman	M	> 50
Miuccia Prada Bianchi	Chief Executive Officer	W	> 50
Patrizio Bertelli	Chief Executive Officer	M	> 50
Alessandra Cozzani	Chief Financial Officer	W	> 50
Lorenzo Bertelli		M	30 - 50
Non-Executive Directors
Stefano Simontacchi		M	> 50
Independent Non-Executive Directors
Marina Sylvia Caprotti		W	30 - 50
Maurizio Cereda		M	> 50
Yoël Zaoui		M	> 50
Pamela Yvonne Culpepper		W	> 50
Anna Maria Rugarli		W	30 - 50

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The Board of Directors' discharge of duties is supported by the consulting and advisory activity carried out by the committees it has set up, namely the Audit Committee, the Nomination Committee, the Remuneration Committee and the Sustainability Committee. Each Committee is chaired by, and made of, a majority of Independent Non-Executive Directors.

The Audit Committee advises and makes recommendations to the Board on financial statements and reports to ensure the Company's accounting methods are appropriate and reliable. It also checks the adequacy and effectiveness of the internal control and risk management system. It recommends the appointment of the Company's external audit firm and assesses its independence.

Audit Committee

	Role	Gender	Age
Yoël Zaoui	Chairman	M	> 50
Marina Sylvia Caprotti		W	30 - 50
Maurizio Cereda		M	> 50
The Nomination Committee advises and makes recommendations to the Board on its composition and on the appointment and succession plans of Directors. It also assesses Directors' independence based on criteria set by the Code.

Nomination Committee

	Role	Gender	Age
Maurizio Cereda	Chairman	M	> 50
Lorenzo Bertelli		M	30 - 50
Marina Sylvia Caprotti		W	30 - 50

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The Remuneration Committee advises and makes recommendation to the Board on the remuneration policy for Company's Directors and Executives.

Remuneration Committee

	Role	Gender	Age
Marina Sylvia Caprotti	Chairwoman	W	30 - 50
Paolo Zannoni		M	>50
Yoël Zaoui		M	>50
The Sustainability Committee assists and supports the Board of Directors with proposing and advisory functions in its assessments and decisions on sustainability related issues, overseeing the Company's commitment to sustainable development along the value chain.		It supports the Board defining strategic sustainability guidelines and the relevant policies, as well as drafting and reviewing reports and documents, including the annual reviewing of the Sustainability Report, and all communications concerning sustainability to be submitted to the Board of Directors for approval.

Sustainability Committee

	Role	Gender	Age
Pamela Yvonne Culpepper	Chairwoman	W	>50
Anna Maria Rugarli		W	30 - 50
Lorenzo Bertelli		M	30 - 50

The recommendations made by the Board of Directors' committees are regularly put forward to the Board itself for discussion and approval. The Board of Statutory Auditors is the supervisory body of the Company and oversees the compliance with the By-laws and all the applicable laws and the observance of the principles of proper management. It also checks the adequacy of the Company's organizational, administrative and accounting structure, as well as the adequacy of its internal control system and the effectiveness of the auditing of the accounts, and the autonomy of the external auditor. The Shareholders' Meeting held on May 27, 2021 appointed the current Board of Statutory Auditors, consisting of three Statutory Auditors and two Alternate Statutory Auditors for a term of three financial years (2021-2023).

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Board of Statutory Auditors

	Role	Gender	Age
Antonino Parisi	Chairman	M	> 50
Roberto Spada		M	> 50
David Terracina		M	> 50

In compliance with the Italian Legislative Decree no. 231 of June 8, 2001 ("Decree"), the Company has established an "Organismo di Vigilanza", whose primary duty is to ensure the functioning, effectiveness and enforcement of the Company's

Organization, Management and Control Model, adopted by the Company pursuant to the Decree. The Supervisory Body has three members appointed by the Board of Directors and selected among qualified and experienced individuals.

Supervisory Body

	Role	Gender	Age
Stefania Chiaruttini	Chairwoman	W	> 50
Yoël Zaoui		M	> 50
Gianluca Andriani		M	30 - 50

The Company is devoted to developing an effective two-way communication with shareholders, investors and equity analysts to enhance the transparency of the Company's activity. During the financial year ended December 31, 2021, the Company continued to facilitate an effective communication through multiple channels including investor conferences, one-on-one and group meetings, teleconferences, the Company's corporate website (www.pradagroup.com), social media and press releases.

More detailed information on corporate governance is provided in the Corporate Governance section contained in the 2021 Annual Report.

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In 2021, the Prada Group's sustainability governance was bolstered with, among other things, the appointment of Lorenzo Bertelli – Group's Head of Corporate Social Responsibility since 2020 – as a member of PRADA S.p.A.'s Board of Directors and with the decision to set up an internal Board Committee dedicated to sustainability matters. At the time this Report was published, Prada S.p.A.'s Shareholders Meeting of January 28, 2022 had appointed two new Independent Non-Executive Directors, Pamela Culpepper and Anna Maria Rugarli, experienced professionals of Environmental, Social and Governance (ESG) issues, who will preside over the work of the Sustainability Committee alongside Lorenzo Bertelli.

The Committee is tasked with providing assistance and support to the Board of Directors' environmental and social sustainability assessments and decisions, honing in on the Group's three strategic areas of action: Planet, People and Culture. The Committee also has the relevant function of proposing and evaluating the adoption of policies to ensure constant commitment and the strategic and growth guidelines at a Group level, and the adherence to the individual and shared values on which the Group builds its business. The Prada Group's Corporate Social Responsibility (CSR) Department will have an essential role in tying in the Sustainability Committee with the Company's most operational applications.

The CSR Department supplies all the tools necessary to the decision-making and advisory bodies so that they may make informed decisions consistent with the Group's strategies and take on the actual operational needs and complexities of the Group and of the individual brands; the Department is also responsible for implementing strategic decisions, supporting the organizational divisions and management that integrate long-term sustainable growth objectives. The CSR Department prepares the Sustainability Report and disseminates a sustainability culture within the Company through projects dedicated to internal communication and training. The Department guarantees a constant dialogue and cooperation with multiple stakeholders and, together with the Investor Relations function, satisfies the demands of the financial community, which has expressed a growing interest in the Prada Group's sustainability initiatives and practices.

— Risk Management

Given the complex regulatory environment, the Prada Group assigns various departments and hires external specialists to keep abreast of changing laws and regulations so that it can adapt its procedures in a timely manner and reduce non-compliance risks to a minimum levels.

The Group has structured the internal control system as a process carried out by the governing bodies of the Group's subsidiaries, by management and by the corporation in general, with a view to providing reasonable certainty that control objectives will be met. More specifically, the Board of Directors of Prada S.p.A., referring to internationally recognized models such as the CoSO Report (Committee of Sponsoring Organizations of the Treadway Commission - international best practices), is engaged in the continuous refinement of the Internal Control and Risk Management systems by checking the operation of its main components consisting of:

control environment;
risk assessment;
control activities;
information and communication;
control system.

The internal control system helps ensure protection of the Company's assets, the efficiency and effectiveness of its processes, the reliability of the information provided to its governing bodies and the market, and compliance with laws and regulations as well as by-laws and internal procedures.

The bodies involved in internal control and risk management are the Board of Directors, the Audit Committee, the Board of Statutory Auditors and the Supervisory Body, as well as the entire management, which has the primary task of implementing all the necessary processes and procedures to achieve the Company's goals minimizing the risks for the organization through an appropriate system of controls.

Moreover, the Internal Audit & Risk Management Department works in close collaboration with the aforementioned bodies, which, in addition to the typical assurance activities, assists the

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Board of Directors and the Audit Committee in risk management activities among others and the Supervisory Body in control activities pursuant to Decree n. 231 of June 8, 2001.

With particular reference to production and logistics issues, the Industrial Compliance Office sets guidelines for implementing laws and regulations that affect the importing and exporting of raw materials and finished goods, while providing various forms of industrial compliance assistance to the manufacturing divisions. Furthermore, with the aim of better integrating the control activities carried out along the supply chain, in addition to having formalized a dedicated procedure, the supplier audits are carried out by an internal working group, which involves various company

functions, to ensure the protection of human rights, fair working conditions and health and safety. In compliance with Legislative Decree n. 231 of June 8, 2001, the Company has established a Supervisory Body, endowed with autonomous powers of initiative and control, whose primary task is to ensure the functioning, effectiveness, implementation and updating of the Organizational, Management and Control Model adopted by the Company pursuant to the aforementioned legislative decree for the control of risks and the prevention of predicate crimes of various kinds and in different areas - including bribery and money laundering - by persons who exercise (by law or de facto) functions of representation, administration or management of the Company.

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The aforementioned report, as well as through a dedicated e-mail address, can be transmitted through an electronic internal communication channel available on the Company's Intranet that guarantees electronically the confidentiality of the identity of the whistleblower. All the employees can report anonymously to the Supervisory Body through a dedicated e-mail address events or behaviors that do not meet Group's standards. All the employees of the Group's Italian subsidiaries can also report to the Supervisory Body, anonymously through a whistleblowing platform, any illicit conduct and irregularities regarding the Legislative Decree 231/2001, in violation of the Organization, Management and Control Model or in violation of ethical principles, internal procedures or laws, of which they became aware in the employment relationship. In 2021, there were no reports, as well as any records of material instances of non-compliance with the applicable laws and regulations regarding bribery, extortion, fraud and money laundering in the performance of the activities of the Prada Group. Risk assessment consists of identifying and analyzing factors that could compromise the proper conduct of company activities and must also extend to the analysis of the process that determines how those risks should be avoided or mitigated. The fact that economic, regulatory and operating environments are in constant flux raises the need for mechanisms that help identify and deal with the risks posed by such changes. For the Prada Group, risks can be broken down as follows:

risks relating to the international luxury goods market or related to the general state of the economy, the protection of intellectual property rights, image and brand recognition, and the ability to anticipate trends and respond to the changing tastes of consumers;
risks specific to the Prada Group relating to the importance of key personnel, strategy implementation, outsourcing, legal and regulatory compliance and processing of data and information;
financial risks specific to the Prada Group relating to exchange rate fluctuations, interest rate fluctuations, credit risk and liquidity risk.

Further information is provided in the financial review and corporate governance sections of the 2021 Annual Report.

More information is also to be found in the 2021 Annual Report - Note 28 "Provisions for risks and charges" - specifically for updates on investigations and disputes with third parties or authorities that involved the Prada Group in the period.

Code of Ethics

The Prada Group considers respect for ethical principles to be a basic pillar of its values and success. The Group believes in and operates with:

compliance with legislative and regulatory provisions in all countries in which it operates;
legitimacy, loyalty, correctness and transparency;
respect for privacy;
respect for the value of human beings;
respect for competition, as a crucial instrument in the development of the economic system;
respect for the environment and awareness about environmental protection.

Since 2007, these principles have been given formal expression in the Prada Group's Code of Ethics. The Code contains the guiding principles of the Organization, being one of the main pillars of the Group's governance model and shared with all the employees, collaborators and suppliers, and is supported by a set of procedures in order to turn these values into daily actions.

The adoption and application of the Code of Ethics is essential for the achievement of the Company's primary objective, consisting in the creation of long-term value for shareholders, employees, customers and for the community as a whole.

The Group promotes knowledge of the Code through various means such as online publications, direct communications and, by procedure, as part of the supply or commercial agreement with most of the partners, as it is considered a prerequisite for the establishment of all contractual relationships.

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Tax Strategy and Compliance

The Prada Group believes that responsible corporate governance calls for adopting collaborative actions that can improve the common value creation process while maintaining the balance between business objectives and stakeholders' expectations.

This approach is also reflected in the Group's tax strategy that is based on risk prevention and "tax certainty", both pursued through ongoing dialogue and honest, long-term interaction with the main Italian and foreign tax authorities. This strategy aims at mitigating tax risk, at granting the compliance with laws and regulations in all jurisdictions where the Group operates and at promoting the importance of the involvement of the Tax Department in all the Group's operations and company processes.

The Group's tax strategy, defined and periodically updated by the Prada S.p.A. Board of Directors, is managed and monitored by the Group's Tax Department, which is made of experienced and qualified tax professionals, owing all the knowledge and skills needed to manage risks related to both Italian and international taxation issues and cases. Tax Department relies on a series of internal procedures to ensure that all the tax compliance and reporting filings are subject to suitable review and prepared in a transparent, timely and punctual way; coordinating with the other Group's functions, Tax Department is also responsible for granting that policies and procedures that support tax strategy are implemented and managed consistently. Finally, the Group's Tax Department constantly interacts with industry associations, governments and other external bodies, such as the Organization for Economic Cooperation and Development (OECD) or the European Union, in order to share in advance future tax legislation trends and rules. When necessary, the Group's Tax Department is supported by external advisors with reference to specific tax issues with uncertain interpretation.

For the correct and effective implementation of its tax strategy, Prada S.p.A. has adopted the Tax Control Framework (TCF), which also illustrates the tools for identifying, assessing, managing and controlling tax risk, according to international standards shared periodically with the Italian tax authority. The TCF is part of the internal control system. The effectiveness of the tax

risk management system has entitled Prada S.p.A. to participate in the Cooperative Compliance Tax Regime in Italy (under Italian Legislative Decree 128/2015), with effect from 2016. Within the Cooperative Compliance Tax Regime, the Group has expanded the systematic and continuous communication channel with the Italian tax authorities based on mutual transparency and trust, in order to minimize uncertainties about potentially risky situations.

After its inclusion in the regime, the Italian tax authorities invited some Group companies to join the International Compliance Assurance Program (ICAP) launched by the OECD.

The Group's participating companies shared extensive information with the tax authorities of the countries where they reside (among others, Italy, the U.S.A., the United Kingdom, Canada, Australia). At the end of the assessment, the respective tax authorities assigned the status of "low-risk taxpayer" to those companies.

Constant, preventive dialogue with tax authorities is also ensured through the Advance Pricing Agreements (APA) and Basic Asset Protection Agreements (BAPA) with local tax authorities - consisting of sharing ex ante the tax treatment of intercompany transactions in relation to transfer pricing legislation - and advanced clarification requests addressed to the various tax administrations regarding the uncertain interpretation of both regulatory and practice issues and aspects. Assurance on fiscally relevant processes is also guaranteed through the internal control system (Internal Audit) and through the checks carried out by second-level control functions.

The Prada Group sends to the Tax authority the "Country-by-Country Report" providing key information about the income and activities of resident companies, in compliance with the obligations for mandatory automatic exchange of tax information between the various countries.

Furthermore, the necessary safeguards have also been put in place recently to verify compliance with the reporting obligations of the respective tax authorities regarding any cross-border transactions containing the hallmarks identified in EU Directive 2018/822 (DAC 6). Finally, Prada S.p.A. holds the status of Full Authorized Economic Operator (AEO), which means with the highest level of reliability. This recognition, issued by the Customs Agency, is granted to companies that prove to be competent and virtuous in the management of their business processes, in compliance with both customs regulations and safety standards for goods.

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2021 Highlights

The Covid-19 pandemic continued to fuel a transformation process in the luxury goods market in 2021, making it truly evolve. The share of consumers belonging to young generations increased considerably, as did the input of the digital sales channels and local consumers. Ethical products, the social responsibility of the brands and the significance of human beings in the buying experience, even in the new physical-digital ecosystem, have become of paramount importance to the industry's value proposition.

Focusing on being relevant, sustainable and impactful, the Prada Group has succeeded in evolving with the market in this scenario of mutations. The combination of its unique creative process and a transformational omni-channel strategy has enhanced the perceived value of the brands and products, paving the way for revenue growth and putting the Group back on the path of long-term value creation.

The commercial strategy was behind this growth with a more profitable sales mix, the elimination of markdowns, and a fully streamlined wholesale distribution channel. The increase in the Group's own E-commerce sites also contributed to the growth, mainly with new customers.

Investments in retail space and processes raised store productivity rates and were critical to strengthening the brands identity. In 2021 alone, 120 store renovations were completed and 80 pop-up installations were set up, leading to increased footfall in stores and a continuously evolving retail image.

The Prada Outdoor, Prada Holiday, Miu Miu Upcycled and Miu Miu Nuit pop-up shops resonated the most, traveling around to some of the most prestigious department stores and malls.

Investments in content and in traditional and digital communication channels led to excellent results even in the online brand visibility metrics. Effective communication campaigns made it possible to expand the involvement of the digital community during successful events, such as the Prada 2022 Spring/Summer fashion show, the first to be presented simultaneously in two cities (Milan and Shanghai), and the 36th America's Cup presented by Prada, the most viewed edition ever.

The omni-channel growth strategy included new investments that will soon lead to additional optimization of back end retail operations and greater use of data, making the customer relationship management (CRM) activities even more effective.

Last but not least, having joined the Aura consortium as a founding member enables the Group to further enrich the customer journey: through Blockchain technology, the Group's brands will guarantee to customers enhanced transparency and traceability. Moreover, a digital evolution roadmap was approved during the year that will lead to a cutting-edge information system for the Group in terms of engineering and technology, giving another competitive advantage in the performance of all distribution and communication channels and indeed the entire business operation.

The industrial area benefited from important reduction of complexity as well as investments in the verticalization of the production process to enhance artisanal know-how and further boost the high quality standards of the products. Use of operating capacity was optimized at the Levanella logistic hub, a forerunner of technology and sustainability in the industry and a crucial site for integrating manufacturing processes with store procurement ones. Manufacturing activities were also strengthened through the acquisition of the remaining minority stakes in two subsidiaries, and the acquisition of a stake in Filati Biagioli S.p.A., renowned for Italian excellence in the production of cashmere and other noble yarns.

For Capital Markets Day in November, the strategic guidelines for the Group's sustainable growth were communicated as formalized based on the principles and priorities that have always motivated the Prada Group, organized into three pillars: environment, people and culture.

The Group's operating results improved considerably from those of the pre-pandemic levels, showing increases in both amounts and as a percentage of net revenues. The consequential cash generation, net of investments and resumed dividend payments, enabled the Group to accumulate enough cash assets to face confidently the important short and medium investments.

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PRADA GROUP — 2021

— In 2021, in a context of change, focusing on being relevant, sustainable and impactful, the Prada Group has succeeded in evolving with the market.

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GRI-201 Disclosure

Direct Economic Value Generated and Distributed

	2019	2020	2021
	Amounts in thousands of Euro
Economic Value Generated	3,232,054	2,424,970	3,368,418
Economic Value Distributed	2,901,673	2,255,583	2,961,880
Operating costs	1,968,912	1,545,670	1,941,997
Value distributed to Employees	752,049	657,537	744,554
Value distributed to Banks and Bond Holders	12,044	12,613	10,994
Value distributed to Government Authorities	951	22,636	151,210
Value distributed to Investors	154,642	-	91,233
Value distributed to the Community	13,075	17,127	21,892
Economic Value Retained	330,381	169,387	406,538

The consolidated income statement for 2021, presented according to the model of economic value generated and distributed defined by the GRI-201 disclosure (GRI Standards), shows a retained economic value of Euro 406.5 million, more than double that of 2020 and even higher than the pre-pandemic level of 2019. Compared to 2020, the additional generation of value was offset by the increase in the value distributed to employees mainly as a result of the larger workforce, to public authorities for

the higher direct taxes, and to Shareholders for the resumption of dividend payments. Compared to 2019, the increase in the economic value retained emerges primarily from the higher value generated and the lower value distributed to Shareholders, net of the normalization of the value distributed to the public authorities as explained by the extraordinary nature of 2019, the year in which the Prada Group obtained the recognition of the Patent Box tax benefit for the years 2015-2019.

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2 — SUSTAINABLE DEVELOPMENT

Highlights 2021

Sustainability Pillars

Strong

ESG governance

GHG emissions reduction targets approved by SBTi

Bold Climate strategy

Sustainability-linked loans

Leading DE&I agenda

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The Prada Group's strategic choices have always been guided by a desire for lasting success that benefits all its stakeholders, be they shareholders, employees, customers or the communities in which the Group operates. Prada S.p.A.'s Board of Directors is in fact committed to conducting the business responsibly, to building an inclusive and safe work environment for all, in the conservation of the environment and in the protection of the communities in which the Group operates.

Sustainability, increasingly rooted in corporate strategy, together with a continuous and transparent dialogue with stakeholders, are key factors to reaffirm the identity of the Group and support the competitive edge of the company, as well as to face changes and contemporary and future challenges and grant a long-term sustainable development.

Constantly inspired by its essential values, the

Prada Group reinforces the already high standards of corporate governance and roots its commitment through a sustainability strategy that revolves around the areas of intervention where it believes it can contribute most to creating long-term value.

The Board provides direction and maintain oversight over the non-financial - or the environmental, social and governance (ESG) - performance of the Group with the support of the departments involved in the implementation of the sustainability strategy. The topics covered in this Report have been reviewed and deemed relevant, having taken into consideration the impacts associated with the organization's business activities.

Sustainability performance, as well as ESG objectives, are reported to the Board at least once a year or when significant developments occur. Any updates of the objectives set with respect to material ESG issues will be discussed with each department involved.

— The Prada Group's strategic choices have always been guided by a desire for lasting success that benefits all its stakeholders, be they shareholders, employees, customers or the communities in which the Group operates.

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Sustainability Journey

2013

Before any mandatory requirement, in 2013 the Prada Group publishes its first Sustainability Report to illustrate the initiatives taken in the area of environmental, social and governance sustainability in a single document.

2015

In 2015, the Group's Sustainability Report is prepared for the first time following the GRI (Global Reporting Initiative) standards, considered the global best practice.

2017

In 2017, the Group organizes in Milan the first event of the "Shaping a Future" cycle of conferences with the aim of stimulating a debate on the most significant changes taking place in contemporary society.

2019

In 2019, the Prada Group formalizes its commitment to sustainability issues through the drafting and publication of a dedicated Policy. In the same year, the Diversity and Inclusion Advisory Council is established by Prada's USA subsidiary; assisted by prominent personalities from authoritative international academic and cultural institutions, it guides the Group on social sustainability issues, among others. Also in 2019, Prada S.p.A. signs the Fashion Pact among its first signatories, recognizing that only collective action can mitigate the harmful environmental impact of the fashion industry. The Group also launches the first limited edition of bags and accessories entirely realized in Re-Nylon and announces that, starting with the Women's Spring/ Summer 2020 collections, it will no longer use animal furs in the creation of its products. Moreover, the same year, Prada S.p.A. is the first company in the luxury goods sector to take out a sustainability-linked loan from the Crédit Agricole Group. Finally, in 2019, the Group promotes SEA BEYOND, the educational program to raise awareness of sustainability and ocean preservation developed with UNESCO's Intergovernmental Oceanographic Commission (IOC).

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2020

In 2020, Lorenzo Bertelli also takes on the role of Head of Corporate Social Responsibility for the Prada Group to give further impetus to the integration of sustainability into the long-term corporate strategy. In the same year, a Chief Diversity, Equity and Inclusion Officer is appointed at the North American subsidiary, with the

task of ensuring that diverse cultures and points of view are represented at all levels of the organization. At the end of the year, the Group becomes the first company in the luxury fashion industry to join The Valuable 500, an international coalition whose goal is to strive for an increasingly radical transformation of corporate organizations in order to include people with disabilities. Finally, in 2020, the Prada Group measures its first carbon footprint, a fundamental step toward defining a climate strategy.

2021

2021 marks a turning point for many aspects related to the Prada Group's sustainable development. The strengthening of sustainability governance is a prime example, thanks to Lorenzo Bertelli's joining the Prada S.p.A. Board of Directors while being the Prada Group's Head of Corporate Social Responsibility, together with the decision to form a Board level Committee dedicated to environmental and social sustainability issues and the selection of two new Prada S.p.A. Board members with significant professional ESG (Environmental, Social and Governance) experience. Furthermore, the Prada S.p.A. Board members approved the Group's strategic sustainability guidelines and, during the year, received training on the main sustainability issues and industry trends.

Also in 2021, the Group defines its climate strategy, submitting its GHG emissions reduction targets to the Science Based Targets initiative (SBTi) and participating for the first time in the Climate Change questionnaire of the CDP (Carbon Disclosure Project), presenting the progress of this long-term journey during the Capital Markets Day held in November.

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On that same occasion, Lorenzo Bertelli announces the Group's Sustainability Strategy and the concrete actions ahead to achieve the quantitative targets approved by SBTi, and confirms the progress made, both internally and externally, on the Diversity, Equity and Inclusion commitment.

The Group secures two new sustainability-linked loans during the year and organizes specific training programs for the Industrial Divisions to provide constantly updated tools for managing and analyzing the sustainability issues that most impact the supply chain.

Finally, in 2021, the Prada Group achieves full conversion to Re-Nylon and launches the second edition of SEA BEYOND, in partnership with UNESCO-IOC.

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Sustainability Policy

As already anticipated, at the beginning of 2019, the Prada Group formalized its commitment to sustainability and drafted a Sustainability Policy, approved by the Board of Directors of Prada S.p.A. and available on the pradagroup.com website.

The publication of this policy is an important milestone underpinning the Directors' commitment to the wider responsibility that a contemporary business is called on to assume.

More in details, Company's commitment and its sustainability initiatives are based on three priorities for action - environment, people and culture - where the Group firmly believes it can provide the greatest contribution in terms of returning value to its own industry and to benefit society as a whole.

The continuous work on numerous aspects of sustainable development, such as the investment in culture for extending the benefits of its activities to civil society, the cooperation with stakeholders, the importance of diversity and equal opportunities,

the fight to climate change, the research of new sustainable materials and the investment in the quality of working environment are only few concrete examples of the Group's commitment in social and environmental sustainability.

Sustainability Strategy

Sustainability is of vital importance to the Prada Group's development process and is essential for protecting its identity and reputation. In recent years, the Group launched increasingly ambitious and original initiatives in line with the priorities set in the Social Responsibility Policy.

In 2021, the Prada Group defined and communicated its sustainability strategy, aimed at further strengthening and consolidating this commitment, identifying for each line of action - environment, people and culture - medium-long term objectives, on the basis of which quantitative targets will be formalized in order to guide future actions in the sustainability field.

with PARTNERS

we commit to engaging with our partners to strengthen our sustainability paths

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Unveiled by Lorenzo Bertelli - Prada Group's Head of Corporate Social Responsibility - on Capital Markets Day, the Group's sustainability strategy is the blueprint of a long process of growth and enhancement for the planet, people and culture. This strategy, approved by Prada S.p.A.'s Board of Directors in 2021, is based on the values, principles and priorities that have always defined Prada's DNA and demonstrate, with coherence and integrity, continuity between past actions and future projects. Organized into three pillars, the "for Planet" strategy sets out environmental impact reduction goals, including the attainment of carbon neutrality for all Prada operations starting from 2022 and the targets approved by the Science-Based Targets initiative (SBTi) for reducing Scope 1, 2 and 3 greenhouse gases emissions, extensive use of alternative low-impact materials for both finished products and packaging, and an approach more geared toward circularity for the materials used in production and production scrap, which are reintroduced to new circuits and reused. The strategy also focuses on raw material traceability and continuous improvement in social and environmental standards along the supply chain, thanks to close collaboration with suppliers, also for the purpose of reducing their environmental footprint. Initiatives to promote and enhance diversity, equity and inclusion are also foreseen, including advancement of an inclusive culture based on respect

for each person at every level of the organization and in the fashion industry in general. The "for People" pillar also comprises a long-term investment to preserve craftsmanship and develop new talents, positioning Prada as a beacon of excellence for new generations. Respect for and protection of the Group's workers and business partners is another key element, along with greater monitoring of employee engagement levels to improve employees' personal and professional wellness.

The third, most distinctive pillar of the strategy, "for Culture", summarizes the Group's constant investment in the preservation and dissemination of Italian and international cultural heritage as well as the natural and scientific ones, reiterating the Group's active role as populizer and educator even in those areas of research dedicated to actively contributing to the application of sustainability principles.

The Prada Group views these strategies as part of a broader responsibility toward the community in which it operates, and for this reason working closely with its suppliers and other partners, across all its key areas, is essential to achieving its biggest goals. In fact, the Group intends to meet the goals set for the three sustainability pillars by realizing concrete, ambitious targets that track their progress, defining key performance indicators (KPIs) and assigning them to the management involved.

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— Stakeholders and Materiality Analysis

Prada Group's Stakeholders

The Prada Group operates in a dynamic context interacting with many stakeholders, all of which can directly or indirectly influence or be influenced by the achievement of business objectives; transparency and open dialogue with those stakeholders is fundamental to pursuit sustainable growth and long-term value. The Group mapped the main categories of stakeholders operating along its value chain on the basis of two criteria:

Influence on Prada: ability to affect the Company's strategic or operational decisions;
Dependence on Prada: extent to which the stakeholder depends on the Company's decisions, products and activities.

The Prada Group over the years have encouraged numerous listening and interaction activities with the main stakeholders in a perspective of mutual learning and sharing with the aim to identify their expectations and incorporate them into the Group business objectives.

In the pursuit of its goals, the Group actively participates in association with its stakeholder or as part of multi-party coalitions.

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Materiality Analysis

The depth and detail of the various topics presented and disclosed in this Sustainability Report reflects the outcome of a materiality analysis, which is the process of identifying, evaluating, and ranking the sustainability aspects that are relevant to stakeholders and that influence the ability of Prada to create value in the short, medium and long-term.

In 2021, the Prada Group have updated its materiality analysis, with the direct involvement of the Group's top management, including members of the Board of Directors, following two steps:

Identifying sustainability issues;
Ranking the sustainability issues previously identified based on their relevance for achieving business goals (internal significance) and for meeting stakeholders' expectation (external significance).

The material topics for Prada were defined as the intersection of significance for the Group and significance for its stakeholders, as shown in the following materiality matrix validated by the Prada S.p.A.'s Board of Directors.

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The following results emerged:

again, the most significant aspect proved to be product creativity and excellence, which demonstrates the fundamental importance — for the Group and its stakeholders alike — of the high standards of quality and style that accompany Prada merchandise along the entire value chain. Together there is the aspect of business strategy and economic performance since financial stability is the essential condition for the pursuit of sustainability goals;
equally relevant for the Group and its stakeholders are the aspects related to climate action, the improvement of environmental and social standards along the supply chain, diversity and equal opportunity and occupational health and safety;
aspects associated with the respect of human and workers' rights and the procurement of low environmental impact raw materials resulted among the most relevant for stakeholders, demonstrating the pressure that the Group has from stakeholders related to its procurement practices;
customer experience, know-how preservation and skills development, and the protection and enhancement of the artistic, cultural and natural heritage are among the most important issues to the Group, considering that they represent fundamental elements of Prada's DNA.

Compared to the results of the 2020 materiality analysis, issues related to waste management, water management and circular thinking emerged as material topics, testifying the Group's ever-increasing commitment to environmental issues. In the table below it could be found the definition of each material topic identified by Prada, while the correlation between material topics and GRI indicators is disclosed in chapter 7 "Note of the Methodology".

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Material Topics

Environmental	Climate Action	Reduce greenhouse gas emissions related to activities carried out along the Group's value chain, reducing not only the impact relating to the Group's operations, but also that generated by actors operating upstream and downstream of the value chain.
	Circular Thinking	Integrate the principles of the circular economy in the performance of the Group's activities, for example in the setting up of pop-up shops, in the organization of fashion shows and in product development.
	Procurement of low environmental impact raw materials	Promote the procurement of raw materials with low environmental impact, considering not only the impact on climate change, but also other sustainability issues such as biodiversity and animal welfare.
	Responsible Waste Management	Responsibly manage the waste produced during production processes with the aim of reducing the production of total waste and increasing the amount of waste destined for recycling.
	Sustainable Water Management	Responsibly use water resources during production processes by promoting practices aimed at reducing water consumption (e.g.: recycling/reuse of water) and aimed at minimizing the impact of water discharges (e.g.: wastewater treatment plants or reduction of hazardous chemicals substances used in production).
People	Champion diversity and equal opportunities	Promote and guarantee gender equality and equal opportunities among the entire company population, not admitting discriminatory behaviors and guaranteeing an inclusive organization, also considering the multitude of nationalities and ethnicities of the Group's employees.
	Know-how preservation and skills development	Invest in the training and professional growth of employees in order to enhance their skills and talents and to disseminate corporate know-how.
	Occupational Health and Safety	Guarantee a safe and healthy workplace for all workers by minimizing accidents and occupational diseases through prevention and protection activities.
	Repect of human and workers' rights	Ensure respect for fundamental human rights and in particular the rights of workers operating within the Group's operations.

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Material Topics

Supply Chain	Improve the environmental and social standard along the supply chain	Guarantee responsible management of the supply chain with the aim of improving the environmental and social standards of suppliers, aligning them with internal standards through engagement, training and ad-hoc assessments.
Community	Protection and enhancement of the artistic, cultural and natural heritage	Contribute to the conservation of the Italian and international cultural, artistic and environmental heritage, encouraging and supporting avant-garde culture and arts.
Business & Ethics	Integrity, transparency and cooperation	Ensure transparent Corporate Governance, aimed at guaranteeing the interests of all the Group's internal and external stakeholders by guaranteeing an ethical business conduct in compliance with laws and a transparent approach to taxation.
	Product creativity and excellence	Offer products of the highest quality, expressions of creativity capable of shaping the collective imagination.
	Business strategy and economic performance	Guarantee the economic sustainability of the Group's business model, promoting economic growth, in order to increase the indirect economic impacts on the Group's internal and external stakeholders.
	Customer experience	Increase customer satisfaction by guaranteeing safe products and improving the customer experience, e.g. by digitalizing sales channels.
— Sustainability Risks Management		the achievement of the organization's mission and strategic objectives;
In compliance with the "ESG Reporting Guide" of the Hong Kong Stock Exchange, the Prada Group is called to identify and evaluate the nature and extent of the environmental, social and governance (ESG) risks related to its material aspects. In 2021, the Prada Group carried out a first high-level and qualitative assessment of ESG risks, which were previously identified, according to a broad view of the main sustainability challenges, based on four categories of risks: — Strategic risks: related to those risks that could adversely affect the decision-making process and	— Operational risks: related to those risks that could disrupt or damage the performance of the company's business operations;
		— Financial risks: related to those risks that could have a direct impact on the company's financial performance;
		— Compliance risks: related to those risks of non-compliance with applicable national and international laws - that could expose the Group to legal penalties - or with the Code of Ethics and internal procedures.

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ESG Risk Assessment

CATEGORY	Material Topic¹	Risk Name	Description	Type of Risk	References Risk Mitigation Actions
ENVIRONMENT	Climate action²	Pressures from stakeholders and investors	In recent years, the interest of investors and external stakeholders on climate change has increased. For this reason, in case of insufficient disclosure regarding its impact and in the absence of concrete actions aimed at reducing greenhouse gas emissions along its value chain, the Prada Group could see its access to financial capital reduced and weakened its position in comparison with competitors.	• Strategic risk
• Financial risk	Sustainability Strategy
Climate Strategy
Responsible use of natural resources
Preservation of the territory
		Shift in consumer choices	The fashion industry is increasingly interested in sustainability issues, which implies that consumer choices are influenced by this type of aspect. In particular, millennials seem to favor products made with low-emission raw materials. The absence of a proactive approach by the Company on this issue could lead to an economic loss linked to the change in consumer choices towards brands capable of offering products with reduced greenhouse gas emissions.	• Strategic risk
• Financial risk	Sustainability Strategy
Climate Strategy
Responsible use of natural resources
Preservation of the territory
		Non-compliance with emerging laws and/or regulations	Europe is moving towards an economy with zero net greenhouse gas emissions by 2050. This goal could imply the introduction of increasingly stringent laws and regulations relating to greenhouse gas emissions. Prada's failure to manage climate issues could make the Group unprepared to respond to potential future laws or regulations.	• Compliance risk	Sustainability Strategy
Climate Strategy
Responsible use of natural resources
Preservation of the territory
		Replacement of existing products and services with low-carbon options	The current unavailability of technologies that allow the removal of greenhouse gas emissions deriving from the breeding of livestock for the production of leather entails risks for the Prada Group. Furthermore, a further risk derives from the current impossibility of selecting a raw material equivalent to leather in quality and characteristics, and which can be produced on a large scale.	• Strategic risk
• Operational risk	Sustainability Strategy
Climate Strategy
Responsible use of natural resources
Preservation of the territory
		Scarce availability of raw materials	The availability of natural raw materials can be affected by potential changes in climate patterns. In the medium term, the Group could encounter difficulties in purchasing the raw materials necessary to ensure business continuity, and be forced to face a potential increase in costs.	• Strategic risk
• Operational risk
• Financial risk	Sustainability Strategy
Climate Strategy
Responsible use of natural resources
Preservation of the territory

1 - No relevant risks have been identified for the material topic "Protection and enhancement of the artistic, cultural, and natural heritage".
2 - Risks and opportunities related to Climate Change have been already disclosed in the CDP - Climate Change Questionnaire published in 2021.

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ESG Risk Assessment

CATEGORY	Material Topic	Risk Name	Description	Type of Risk	References Risk Mitigation Actions
ENVIRONMENT		Frequency and severity of extreme weather events	The widespread presence of the business and the distribution of the retail sales network in Europe, Asia, North America and Latin America exposes the Group to some risks associated with extreme weather events. For example, some industrial sites of Prada are located near rivers, some of which are characterized by the risk of flooding (due to rising sea levels), which could result in both damage to the plant itself and inaccessibility to the establishment for employees.	• Strategic risk
• Operational risk	Sustainability Strategy
Climate Strategy
Responsible use of natural resources
Preservation of the territory
	Responsible waste management	Non-compliance with local environmental regulations	Failure to comply with environmental laws and regulations on waste management could result in financial penalties for the Prada Group.	• Compliance risk	Waste management
Circular thinking		Non-compliance with emerging laws and/or regulations	The European Green Deal includes some sections relating to the circular economy. The European plan for the circular economy, one of the pillars of the Green Deal, envisages the application of the concept of “extended producer responsibility” to the fashion sector and the introduction of eco-design principles in the creation of products. The criticality for the Prada Group will be to be able to adapt / convert its operations in a circular way, without damaging the competitiveness of the Group.	• Compliance risk
• Operational risk	Circular thinking
		Shift in consumer choices	The fashion industry is increasingly interested in sustainability issues, which implies that consumer choices are influenced by this type of aspect, especially considering millennials, who favor circular business models with reduced environmental impact. The absence of a proactive approach by the company on this issue could lead to an economic loss linked to the change in consumer preferences towards brands able to offer products and services in line with the principles of the circular economy (e.g. use of materials regenerated raw materials, extension of the product life cycle).	• Strategic risk
• Financial risk	Circular thinking

SUSTAINABLE DEVELOPMENT — 2021

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ESG Risk Assessment

CATEGORY	Material Topic	Risk Name	Description	Type of Risk	References Risk Mitigation Actions
ENVIRONMENT	Sustainable water management	Scarce availability of water resources	In the case that the geographical areas in which the Prada Group operates have problems related to water stress, there could be critical issues, especially for factories where significant use is made of water in production processes.	• Operational risk	Responsible use of natural resources
		Non-compliance with local environmental regulations	The Prada Group uses chemicals in its production processes (e.g. for leather processing), therefore environmental laws and regulations concerning water discharges could imply risks of non-compliance. Considering also the impact that an ineffective management of water discharges could have on the territory where Prada operates, there is a significant reputational risk.	• Compliance risk	Responsible use of natural resources
Procurement of low environmental impact raw materials	Low availability of sustainable raw materials	In recent years, Prada has been committed to increasing the percentage of sustainable raw materials used in its products. However, large-scale sourcing of sustainable raw materials could be critical. Therefore, when the Group exposes itself by declaring quantitative objectives for the purchase of sustainable raw materials, there could be reputational damage in the event of the non-achievement of these targets. Furthermore, any difficulties in finding sustainable raw materials could cause a high dependence on a small number of suppliers, decreasing the Group's bargaining power and potentially increasing production costs.	• Strategic risk
• Operational risk
• Financial risk	Responsible use of natural resources
	Greenwashing connected to the use of sustainable raw materials	The commitment of the Prada Group to replace traditional raw materials with sustainable alternative raw materials could involve the risk of sourcing from raw materials whose effective sustainability may not be better than the traditional raw materials replaced, considering all the dimensions of environmental sustainability (eg: climate change, water consumption, biodiversity, etc.).	• Strategic risk	Responsible use of natural resources

SUSTAINABLE DEVELOPMENT — 2021

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ESG Risk Assessment

CATEGORY	Material Topic	Risk Name	Description	Type of Risk	References Risk Mitigation Actions
SUPPLY CHAIN	Improve the environmental and social standard along the supply chain	Non-compliance with environmental practices and standards along the supply chain	Some of the Group's suppliers (e.g. suppliers of the tanning industry) operate in sectors with a high environmental impact. In addition, the leather supply chain is also concerned about deforestation. Prada's connection, even indirectly, with companies that are in breach of environmental regulations or that are accused of promoting deforestation represents a significant reputational risk for the Group.	• Strategic risk	Industrial Strategy
Supply chain responsible management
		Non-compliance with social practices and standards along the supply chain and possible violations of human rights	The Prada Group supply chain is complex and often consists of several levels of subcontracting. Any cases of violation of human rights, including health and safety issues, along the Group's supply chain represent a significant reputational risk for the Group.	• Strategic risk	Industrial Strategy
Supply chain responsible management
		Misalignment of suppliers with Prada's sustainability strategy	The sustainability strategy of the Prada Group, and its targets, can only be reached with the cooperation of all suppliers. Failure to cooperate with suppliers could jeopardize the achievement of the sustainability objectives defined by the Group.	• Strategic risk	Supply chain responsible management
PEOPLE	Respect of human and workers' rights	Non-compliance with Human Rights standards	The Prada Group operates in numerous countries, in some of which compliance with local legislation may not be sufficient to guarantee respect for the fundamental human rights of workers. Failure to respect human rights in its operations represents a reputational risk considering the media exposure of the Prada Group.	• Strategic risk	Workers' health and safety and respect for human rights
	Know-how preservation and skills development	Difficulty in attracting and retaining qualified employees	The success of the Prada Group depends on the ability to attract and retain qualified people in the main corporate functions, both in managerial and more operational positions. A high outgoing turnover could represent a risk of loss of competitiveness for the Prada Group.	• Strategic risk
• Operational risk	Talent attraction and retention

SUSTAINABLE DEVELOPMENT — 2021

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ESG Risk Assessment

CATEGORY	Material Topic	Risk Name	Description	Type of Risk	References Risk Mitigation Actions
PEOPLE		Loss of corporate know-how	The development of skills is a fundamental element for Prada's success, for this reason, the intergenerational passage of company "knowledge" is fundamental. Failure to pass on artisan skills to new generations could undermine the Group's ability to create excellent products.	• Strategic risk
• Operational risk	Prada Academy and skills development
	Occupational health and safety	Non-compliance with health and safety legislation	Failure to comply with laws and regulations on occupational health and safety management could result in financial penalties for the Prada Group. Furthermore, the occurrence of accidents in the workplace represents a reputational risk for the Group.	• Compliance risk	Workers' health and safety and respect for human rights
Champion diversity and equal opportunities	Occurrence of incidents of discrimination	The promotion of diversity, equity and inclusion are fundamental elements for the Prada Group. Any episodes of discrimination, inside and outside the workplace, could represent a reputational risk for the Prada Group.	• Strategic risk	Champion diversity and equal opportunities
Diversity and inclusion advisory council
BUSINESS AND ETHICS	Product creativity and excellence	Shift in consumer choices	The demands of consumers, especially of the new generations, are increasingly challenging. This implies that the Prada Group may not be able to anticipate trends and react to changes in consumer tastes.	• Strategic risk
• Financial risk	Value creation
		Risks relating to the health and safety of products	The products of the Prada Group must meet rigorous health and safety standards and comply with the relevant regulations in force in all the countries in which Prada operates. The use by some suppliers of hazardous chemicals in their manufacturing processes could represent a health and safety risk for consumers, and of non-compliance with regulatory standards for the Group.	• Compliance risk	Product responsibility
Customer experience	Misalignment with consumer expectations	Difficulty in identifying, understanding and responding to changing consumer expectations regarding services and sales channels.	• Strategic risk
• Financial risk	Value creation

SUSTAINABLE DEVELOPMENT — 2021

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ESG Risk Assessment

CATEGORY	Material Topic	Risk Name	Description	Type of Risk	References Risk Mitigation Actions
BUSINESS AND ETHICS	Business strategy and economic performance	External macroeconomic risks	The performance of the luxury goods market is influenced by the propensity of individuals to consume, and by the general economy. An unfavorable economy, or regulatory, social and political changes in one or more of the main countries in which the Prada Group operates, or globally, could have negative economic consequences.	• Strategic risk
• Financial risk	Value creation
	Integrity, transparency and cooperation	Non-compliance with laws and regulations relating to socio-economic, corruption or tax issues	The risk associated with unethical conduct of the business and not being in compliance with the various regulations applicable to the Prada Group could represent a significant reputational risk for the Group as well as expose it to potential financial penalties.	• Compliance risk	Risk management
Code of ethics
Tax strategy and compliance
		Risks related to cybersecurity	Difficulty in protecting sensitive corporate data or consumer personal data in the event of cyber-attacks and risks of non-compliance with European privacy regulations (GDPR).	• Strategic risk
• Compliance risk
• Operational risk	Product responsibility

In recent years, stakeholders' expectations in terms of environmental, social and governance sustainability, as well as the evolution of national and international legislation, have given a strong boost to the non-financial performance of the Prada Group. At the same time, given the complexity of the environment in which the Group operates, a careful assessment of ESG risks is essential, not only to ensure stable long-term growth, but also the safeguarding of corporate reputation. For this reason, the Prada Group is committed to incorporating the evaluation of these risks into its business strategy, an essential activity closely related to the increase in the level of transparency and accountability that stakeholders require.

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三

Sustainable Finance

The Prada Group has been the first in the luxury industry to sign a "Sustainability Linked Loans", which are financial facilities with a mechanism that, upon the achievement of quantitative targets in the sustainability field, allows a reduction in the interest rate.

The Prada Group signed two loans of this type in 2021, the most recent was signed with Banca Intesa Sanpaolo in July, which was anticipated by the one with UniCredit signed in February.

Both facilities are linked to the following KPIs:

the regeneration and reconversion of production waste;
the increasing of the share of self-produced energy.

Regarding the first target, the Prada Group's recent investments in the industrial sector, especially in the most delicate phases of the production process, have led to reducing production waste in clothing, leather goods and footwear, while effectively managing its collection and disposal. The Group is now committed to transferring these waste materials to third parties for their introduction into other production cycles.

For what concerns the energy field, in line with the

Group's climate strategy, the investment plan for the construction of photovoltaic systems in its industrial and corporate sites continues in order to ensure an increasing production of KWh/year in the period 2021-2025. A significant part of these interventions will be concentrated on the production and logistics sites in Tuscany (Italy), with the aim of making the complex of buildings in this territory nearly self-sufficient from an energy point of view.

These two facilities follow a first loan with Crédit Agricole Group in 2019, and a second loan, in January 2020, with the Japanese Bank Mizuho. These first facilities were linked to the achievement of similar objectives relating to the following:

the number of stores assigned of a LEED Gold or Platinum Certification;
the amount of training hours for the employees;
the use of Prada Re-Nylon (regenerated nylon) for the production of goods.

All operations fit perfectly into a much wider framework of sustainability integration into the corporate strategy. For all loans, the achievement of the objectives is subject to an annual review by independent third-party.

— "Sustainability, as a value, is now universally recognized and shared, also by the financial industry. For us and for all companies, this results in an important stimulus to achieve increasingly ambitious goals towards a sustainable economy.

We are proud to be among the first players in the luxury sector to have embarked on this path and to be considered a reference counterpart in the field today."

Alessandra Cozzani

Chief Financial Officer of Prada S.p.A.

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3 — RESPONSIBLE MANAGEMENT

Highlights 2021

Strong vertical integrated business model
Industrial facilities
Strict control of the value chain
81% of the Group's industrial suppliers are located in Italy
55% of the Group's industrial suppliers have been working with the Group for more than 10 years

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Over the years it has become increasingly evident how the integration of sustainability into the business and an open and transparent dialogue with stakeholders were fundamental. The Prada Group is aware that sustainability is a way of thinking and operating, and defines its strategies and operational processes to withstand over time; in increasingly complex and uncertain social and market contexts, Prada faces challenges and seizes opportunities in the constant

search to meet its stakeholders' expectations, pursuing long-term economic development. The Prada Group's commitment also extends to the creation, development and strengthening of the cooperative ties with the communities where it does business, in terms of social and environmental sustainability, as they are deemed necessary for inclusive long-term growth.

— “In the past years, starting from the idea of Mr. Bertelli, our industrial operations have been stronger and stronger. We are convinced we are the best in what we do, therefore we are constantly investing in our assets and our people – our maestros in our factories.”

Massimo Vian
Prada Group's Industrial Director

— Industrial Strategy

The Prada Group's competitive advantage also derives from its distinctive manufacturing tradition, developed through the buildup of its production premises, the progressive expansion of its manufacturing skills and enhanced control over its supplier network. In recent years, thanks to investments of more than Euro 80 million since 2019, the Prada Group's industrial strategy has focused on strong vertical integration of the supply chain, progressive insourcing of sensitive phases of the production process and the acquisition of key capabilities. The havoc wreaked by the public health emergency have effectively highlighted the benefits of the manufacturing choices made, since competition hinges more and more on the speed of reaction to

rapid market changes and on the business model's ability to adapt.

The Prada Group has always used an extensive network of carefully selected external suppliers, with which it works in the long run, to ensure flexibility and access to additional resources. At the same time, the Group relies on a high degree of autonomy, which is vital for sudden business slowdowns, as proved to be the case during the initial phases of the pandemic. In fact, the Prada Group has created all its prototypes internally for many years, thanks to investments in the expansion of its facilities and an important hiring plan, and in the past few years it has gradually insourced its leather cutting phases followed by the handbag and footwear assembly processes. Controls over raw materials and finished products are also handled internally now.

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Internal Production (%)

Internal Activities	2015	2021	Target
Samples Production
Leather Goods Cutting
Total Internal Assembly: Bags + Shoes^{3}
Quality Control on Finished Product

Vertical integration and internalization effectively ensure more control over value creation, an extremely important aspect even from a sustainability point of view, not just for the processes but especially in terms of responsible supply chain management. Thanks to the acceleration recorded in recent years in the selection process of the industrial supply chain, the Group works with the best suppliers, in their own right leaders and reference points in their sectors. In most cases, these are long-term relationships, initiated and maintained following a rigorous selection process, whose strict parameters are intended to ensure the highest standards of technical and economical, as well as ethical reliability. The Prada Group has always valued long-term relationships built on steady interactions, which are also crucial for mutual growth.

3 - RTW and Leather Goods Accessories not included.

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Raw Material

Supply Chain Localization

The international success of the Prada Group is deeply rooted in Italy, starting right from its supply chain. In 2021, the Group purchased raw materials from about 470 suppliers⁴, 84% of them located in Italy, around 5% in other European Union countries and the

remaining 11% in other non-EU countries. In many cases they are long-established partners: slightly over 61% of them have been working with the Group for more than 10 years, and around 18% for a period of time between 5 to 10 years.

Semi-manufacturing

Supply Chain Localization

⁴ - For the purposes of this analysis, only raw materials suppliers with which purchases of more than Euro 30 thousand were conducted in 2021 have been considered.

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Also for outsourcing, the Prada Group stands out for its strong ties with the typically Italian artisanal tradition; in fact, in 2021, the Group worked with approximately 370 manufacturing suppliers. Around 86% of these manufacturing suppliers are located in Italy, around 7% in the rest of the European Union and the remaining 7% in non-EU countries. Around 47% of the manufacturing suppliers have been collaborating with the Group for more than 10 years and around 24% for a period of time between 5 to 10 years. These are relationships built on mutual trust, characterized by working together on a daily basis with a view toward constant improvement and learning.

On the whole, approximately 81% of the Group's industrial suppliers are located in Italy and about 55% of them have been working with the Prada Group for more than 10 years; from the beginning a strategic choice for Prada, which has always considered a competitive leverage to root its supply chain in those territories where the manufacturing sector represents an excellence appreciated all over the world.

— Supply Chain Responsible Management

As already anticipated, for the Prada Group, the selection of its suppliers is fundamental not only for reaching the highest standards of product excellence, but also for creating long-term value. In fact, through a collaborative and transparent approach, the Group has always worked with its suppliers to implement work, health, safety and environmental standards in the workplace and, therefore, to transmit its high ethical standards.

This collaboration favors long-term relationships and is based on regular dealings, in order to share mutual growth and a common strategic objective, reducing the risk of non-compliance with the Group's Code of Ethics and the current regulations.

Another fundamental factor is the proximity of the supply chain to the Prada Group; the vicinity enables Prada to perform a constant monitoring activity, even daily for the main suppliers, for the purpose of control and risk management.

The location of the supply chain in Italy is also important for the working conditions of the employees, as they are governed by the collective bargaining agreements currently in force. The Italian Collective Bargaining Agreement (CCNL) supplements the law and is stipulated at a national level between trade unions and associations representing companies. The CCNL regulates the rights, guarantees and obligations of all workers in terms of pay and regulatory provisions, such as guaranteed minimum wages, working hours, vacation time, seniority treatment, treatment of overtime, holiday and night-time work (with the related pay increases), the duration of the trial period and notice period, sick leave, maternity leave, accident leave and the disciplinary code. The CCNL is negotiated and renewed every three years, thus allowing for wage and regulatory adjustments in line with economic and legislative changes in Italy.

In the past few years, Prada has directed efforts toward raising awareness in the purchasing structures of more responsible management of the industrial supply chain. To this end, in early 2017 the Group adopted a "Qualified Vendor List" procedure to define the responsibilities and operational criteria required to evaluate the ethical, technical and economical reliability of its suppliers. The list is part of the controls needed to initiate and continue with the supply relationship, as set out in the procurement policy, which calls for mitigating risks of non-compliance through additional checks and accountability.

With respect to ethical issues, the accreditation and maintenance of a supplier's qualification are confirmed through requested documents, attestations and self-certifications that ensure compliance with the laws on remuneration, social security, taxes, occupational health and safety, the environment, privacy and the governance model. Finally, the Code of Ethics must be signed in order to work with Prada. This information asset undergoes systematic first-level and second-level controls, including interim ones, to ensure that the information is updated, true and consistent. Such controls, which involve documents

5 - For the purposes of this analysis, only manufacturing suppliers with which purchases of more than Euro 30 thousand were conducted in 2021 have been considered.

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RESPONSIBLE MANAGEMENT
2021

— For the Prada Group, the selection of its suppliers is fundamental not only for reaching the highest standards of product excellence, but also for creating long-term value.

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and are performed by the procurement structures or business areas specialized in the various topics, are also conducted upon notification of potential situations of crisis, breaches or anomalies; in these circumstances, the procedure involves additional analysis, targeted controls or an immediate encounter with the parties involved.

The procedure, initially applied to suppliers in the manufacturing area, has now been implemented with the engineering and logistics suppliers and is gradually being extended to the other business areas.

Although the Prada Group considers the risk of non-compliance throughout its direct supply chain to be low, thanks to its geographical location and the duration and quality of the relationships established, it is aware that first-tier suppliers use subcontracting, and of the reputational and legal risks associated with that, including in terms of human rights infringement. For this reason, in 2019 the Group set up internally a task force dedicated to tighten the controls over the supply chain and respond to the growing demand for transparency and accountability in the sourcing and production practices. The Group formalized then in 2020 the inspecting activity with a dedicated procedure.

The work team consists of representatives of the administrative, occupational safety, compliance and human resource functions and assists production division managers with controls at supplier and/or sub-supplier premises, reviewing documents and checking the observance of the Group's ethical principles and proper application of labour, tax, occupational safety and environmental regulations. The inspection plan includes a risk assessment, conducted in the first phase by the various managers, also according to the composition of the industrial supply chain in terms of supply and subcontracting, and any critical issues detected by them or by the functions responsible for the second-level controls during the periodic inspections required by the Qualified Vendor List procedure.

The analysis performed during the inspections, which follow a six-month schedule, completes other controls carried out in previous phases and those foreseen by the Qualified Vendor List procedure, thus strengthening the control over the industrial supply chain, ensuring compliance with the Code of Ethics and current regulations.

The results of the inspections are reported to the various managers so that a corrective action plan

(Remediation Plan) can be drawn up in the event of breaches or partial breaches of the criteria standards, and corrective actions are identified that the supplier must implement over a period of time that varies according to the irregularity found. In the event of serious breach, or the supplier's inability to ensure a positive outcome in the prescribed time, termination of the supply relationship is evaluated.

Since 2019, with the aim of bringing the monitoring and management of the supply chain to the Group's levels of excellence, the task force operates in Italy, where the most important portion of the industrial supply chain is rooted, focusing on both first and second tier suppliers for all three industrial divisions: leather goods, footwear and clothing.

Both in 2020 and in 2021, the control activities were slowed down due to the health emergency but, as soon as the working conditions allowed it, they continued to cover the largest number of suppliers. In the three-year period 2019-2021, 175 suppliers were involved and 30 supply relationships were interrupted due to serious irregularities with respect to the ethical standards of the Prada Group.

Generally, the inspections effectively confirmed what the managers of the production divisions had already perceived; most issues are found at the subcontracting level, with the Leather Goods Division experiencing more than others. The controls over first-tier suppliers are more encouraging, as they confirmed the effectiveness of the Prada Group's streamlining decisions of recent years.

The breaches found in the sub-contracting relationships regarded primarily social security and tax aspects, the workplace, occupational safety and the work force employed in terms of contractual conditions and actual working hours.

During 2022, the control activities on suppliers will continue in order to promptly and efficiently monitor and mitigate the risks associated with the supply chain management.

Finally, since 2016, the Prada Group has published a statement describing the measures taken to ensure the absence of any form of modern slavery, forced labour and human trafficking within its organization and along its supply chain, as required by UK legislation "Modern Slavery Act 2015".

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— Trademark Protection

The Prada Group is actively committed to protecting its intangible assets. With a specialized internal department dedicated to Intellectual Property (IP), the Group registers its trademarks, designs, patents and domain names with the competent authorities and adopts preventative and defensive measures worldwide to protect its IP rights on all on-line and off-line channels.

The Prada Group regularly monitors registrations by third parties and any possible misappropriation of trademarks, designs and domain names identical to or that could be confused with its own distinctive marks and products. Any violation is tackled through appropriate action with the competent authorities. The Group cooperates on a daily basis with the Italian and international customs agencies to assist the blocking of market entries of unauthentic products, and with the police and tax authorities in order to have counterfeit products existing in the market confiscated, distribution and production processes rebuilt and the individuals and organizations responsible brought to justice. In pursuing such objectives, the Group shares relevant information

with the authorities and participates in training events on the Company's brands and products, so that the authorities may have everything at their disposal to effectively fight counterfeiting and the criminal organizations responsible for it.

It also cooperates with major associations, such as INDICAM, the Italian Association for the Protection of Intellectual Property, the Union des Fabriquants, and the Quality Brands Protection Committee (QBPC), to bring such issues to the attention of the institutions, the public and consumers. The Prada Group monitors the evolution of intellectual property rights legislation and actively takes parts to the consultations addressed to trademark owners in relation to the creation of new legal tools aimed at challenging illegal counterfeiting activities.

The Group keeps monitoring the regulatory progress of the Digital Services Act, deeming of primary importance that the European Union recognize a greater responsibility for digital platforms and online operators, with the aim to guaranty a more secure environment to companies and users.

More accurate surveillance has been implemented on the Internet to counter the promotion and sale of counterfeit goods on websites, E-commerce platforms and social networks. In recent years, the Prada Group has contributed to important international operations coordinated by the "Guardia di Finanza", Interpol and Europol, sharing information on hundreds of websites and thousands of social media accounts helpful in the identification of criminal networks and removal of infringing listings that illegally advertise the sale of counterfeit products.

Thanks to a close collaboration with the authorities, the fight against counterfeiting undertaken by the Prada Group led to, in 2021 alone on a global level, the seizure of more than 482,000 counterfeit products in off-line markets, the deletion of 220,870 unauthorized advertisements, the deactivation of more than 3,200 websites with illegal content, and the removal of more than 100,000 social media posts.

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三

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Product Responsibility

Product quality and customer health and safety are central to the Prada Group's manufacturing processes. The products must meet uniform quality standards and satisfy all current regulations in more than 70 countries where they are sold.

To achieve these goals, the Group employs technicians with at least ten years' experience, who run strict quality controls on every material used in the production process, from sourcing to the finishing touches. They make periodic visits to the manufacturing sites of raw material suppliers and contractors to assess their processes, the quality of their goods and the general workplace conditions.

Within the scope of these control and guidance activities, since 2014 the Prada Group has drawn up and updated a Restricted Substances List (RSL), the procedure that sets limits on the presence of chemicals in its products. In 2016, Prada took the additional step of aligning its RSL limits with the more stringent, proactive approach outlined in the "Guidelines on eco-toxicological requirements for clothing, leather goods, footwear and accessories" endorsed by the "Camera Nazionale della Moda Italiana" (CNMI). These limits are the most virtuous in international practice and aim to ensure higher chemical safety standards than those prescribed by the strictest national and international laws. The Prada Group's suppliers of raw materials, packaging and manufacturing services have all received the Group's RSL and progressively accepted and signed

it: since 2016, when $72\%$ of the purchase volumes were carried out according to this procedure, by 2021 the "proactive" level of the RSL reached $100\%$ of the purchase volumes relating to Prada's external industrial suppliers, but also $100\%$ of the work carried out in the Group's production sites.

Extending the reach of the RSL is important for improving the sustainability of the Group's production cycle, as is Prada's ongoing commitment to CNMI programs on chemicals, for which in-depth studies have been initiated on the application of the guidelines to manufacturing processes, and on other matters. The collaboration with CNMI continued in 2021 with multiple meetings aimed at the finalization and publication of the guidelines "Good Manufacturing Practices - Guidelines on the use of chemicals in the fashion manufacturing supply chain", an activity started in 2020 by the Chemicals Commission of which Prada is actively part. The document, sponsored by the Ministry of Ecological Transformation, adds to the indications already disclosed in previous years on the use of chemicals substances in products and production processes.

To ensure that the RSL is being followed, in addition to requiring certification and testing from every supplier, the Prada Group monitors observance of the guidelines and the supplier certifications through an additional internal control process by conducting spot checks on all sourced materials through accredited laboratories. During 2021 no cases of non-compliance with health and safety regulations were recorded, as none in 2020. At the same time, no cases of non-compliance with information and/or labeling requirements were reported both in 2021 and 2020.

— During 2021 no cases of non-compliance with health and safety regulations were recorded, as none in 2020.

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4 — FOR PLANET

Highlights 2021

53% of the energy purchased at global scale is renewable

13 owned Photovoltaic plants

3 LEED certifications for Building Design & Construction

57 LEED Interior Design & Construction

81 LEED Operations & Maintenance

89% certified or recycled paper for packaging

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The Prada Group considers environmental protection a very important matter, for which it engages in and cultivates virtuous behaviors that contribute to sustainable long-term growth while being an examples of good practice for the entire industry. This commitment is emphasized in the Group's Sustainability Policy and represents a pillar of the Prada Group's sustainability strategy, whose main objectives are related to the mitigation of Prada impact on climate change⁶, the preservation of the ecosystems and the promotion of circular thinking.

Climate Strategy

The Group is aware of the fashion industry's impact on climate change, and as a luxury Fashion Company wants to set the path to decarbonization in a way that will inspire the entire sector.

Since 2014, Prada has been constantly investing in energy efficiency projects and initiatives, aimed at reducing its energy consumption and Greenhouse Gases (GHG) emissions, positively contributing to the global goal of fighting climate change. In particular, numerous projects have been implemented to a different extent within industrial sites, corporate headquarters, and retail spaces. Among the most relevant:

Relamping project: since 2014, the Group has been pursuing an important project to replace store lighting systems with LED technology leading to the full conversion in all the stores lighting already in 2018. The direct and indirect energy savings obtained are significant compared with the previous technologies used (fluorescent and halogen lamps); moreover, this also led to less waste disposal considering that LED lamps life-cycle is longer than traditional lamps.
Photovoltaic systems: starting from 2015, Prada began installing photovoltaic systems at its production sites, most of which were installed on industrial sites rooftops in Italy.
LEED: starting from 2016, Prada began the LEED (Leadership in Energy and Environmental Design) certification process for some of its assets, with the aim to increase energy efficiency.
Green electricity: in 2017, the Prada Group signed a partnership and began to purchase electricity supplied by renewables sources with Guarantees of Origin (GoO), both in the Italian territory and on a global scale.
Energy box project: starting from 2017, Prada began a multi-year investment plan to optimize its energy consumption in factories, offices and stores. The project consisted in the installation of multi-meters to constant monitoring and analyzing consumption information through accurate comparisons between periods.

Calculation of GHG Inventory 2019 - Baseline

In order to have a more holistic and strategic approach to climate change, from 2020 the Prada Group decided to measure the first inventory of the Group's greenhouse gas emissions, measuring the emissions directly related to its activities (Scope 1 and 2) and those caused by the upstream and downstream activities of the value chain (Scope 3), for the year of reference 2019 (baseline), with the aim to identifying the areas having the largest climate impact along the entire value chain.

6 - As defined by the United Nations, climate change refers to long-term change in weather patterns as a result of the increases in the Earth's temperature. Since the 1800s, with the advent of industrialization, human activities have been the main driver of the Earth's temperature increase, mainly due to the burning of fossil fuels (such as coal, oil and gas), which generate greenhouse gas (GHG) emissions.

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GHG Inventory Prada Group

(t CO₂e)

2019

Scope 1	8,353
Scope 2
Location-based	38,773
Market-based	19,506
Scope 3	418,748
3.1 Purchased goods and services	296,715
3.3 Fuel related activities	4,665
3.4 Upstream transportation and distribution⁷	75,096
3.5 Waste generated in operations	2,316
3.6 Business travels	4,722
3.7 Employee commuting⁸	20,631
3.8 Upstream leased assets	14,602
Total GHG emissions with location-based method	493,734
Total GHG emissions with market-based method	446,607

Scope 3

7 - Activity refers to inbound and outbound logistics (when costs are paid by the organization). For this item the data have been estimated for a 38%.
8 - For this item the data have been estimated for a 30%.

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Scope 1 emissions are related to the consumption of natural gas, used mainly for operations at production facilities, to the company fleet and to fugitive emissions related to the leaks of refrigerant gases used for air conditioning. Scope 2 emissions are related to the purchase of electricity for manufacturing sites, logistics centers, offices and stores⁹ throughout the world.

Finally, for Scope 3 emissions, the main sources are related to the indirect emissions deriving from the purchase of goods and services (71%), followed by the emissions related to inbound and outbound logistics (18%) and employee commuting (5%).

The data presented in this Report are consistent with the data submitted in the CDP Climate Change questionnaire, to which the Prada Group reported for the first time in 2021, obtaining a B- score, with the ambition to be increasingly transparent in reporting on its impacts and in the management of issues related to climate change¹⁰.

It should be considered that the baseline may change in the course of the next few years due to the updating of some emission factors with particular reference to the ones used for calculating raw materials related emissions. For further details related to the calculation of the GHG inventory see chapter 7, paragraph "GHG Calculation methodology and emission factors".

GHG Emissions Reduction Targets and Roadmap

For the Prada Group the completion of the GHG inventory was the first useful step for measuring its impact on greenhouse gas emissions and identifying areas for improvement.

After a careful analysis of all the possible actions that Prada could implement to reduce its greenhouse gas emissions, in September 2021, the Group officially set GHG emissions reduction targets validated by the Science-Based Target initiative (SBTi)¹¹. Targets set by Prada related to Scope 1, 2 and 3 are consistent with a maximum increase of 1.5°C in the Earth's temperature compared to pre-industrial values. Moreover, the Group increased its ambition by committing to reaching Net-Zero within 2050.

GHG reduction targets were officially announced in November 2021 during the Capital Markets Day. On this occasion, the Group disclosed the two following targets:

Reduce absolute Scope 1 and Scope 2 Greenhouse Gas emissions by 29.4%, by 2026 from a 2019 base year¹²;
Reduce absolute Scope 3 Greenhouse Gas emissions by 42%, by 2029 from a 2019 base year.

In addition, during the Capital Markets Day, the Group announced its commitment to offset its Scope 1 and 2 emissions from 2022 onwards, becoming Carbon Neutral¹³ for what concerns GHG emissions associated with its own operations. It is important to underline that the Prada Group sees offsetting as a plus, but this initiative does not discharge the company from reducing its CO₂ emissions.

The table below showcases the milestones of the Prada Group's climate strategy and the action plan that it started to implement related to Scope 1 and 2 emissions categories.

9 - In the Scope 2 calculation are considered the emissions related to stores for which the Prada Group has control on utility bills, while the emissions related to the other directly operated stores for which the Prada Group does not have control on utility bills are accounted in Scope 3 (category 8: upstream leased assets).

10 - Compared to the values represented in the Social Responsibility Report 2020, the 2019 baseline data have been updated, also as a result of a better classification of the emission categories.

11 - The SBTi was established between CDP, the UN Global Compact, the World Resources Institute and the World Wide Fund for Nature (WWF) in order to support companies in setting GHG emissions reduction targets consistent with the latest climate science.

12 - The 2019 base year takes into consideration Scope 2 calculated with the market-based approach.

13 - Carbon neutrality is obtained by balancing carbon emissions with offsetting, that means purchase carbon credits generated by projects with a positive impact to reduce or neutralize the impact generated by an organization own activities. In particular, each credits, certified according to the most important and recognized international standards, certifies the reduction or removal of one tonne of CO₂e.

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Prada Group's Climate strategy

| 2019
Baseline | 2021
Science-Based Targets (SBTs) approved | 2022
Carbon neutral Scope 1 and 2 to begin | 2026
Reach SBTs - 29% Scope 1 and 2 | 2029
Reach SBTs - 42% Scope 3 | 2050 |
| --- | --- | --- | --- | --- | --- |

SBTs - 29% GHG emissions Scope 1 and 2

Electrification of industrial sites heating systems
Company car fleet: 60% green by 2022
Increase LEED Gold or Platinum certified stores
Electricity from renewable sources
Double self produced energy from owned photovoltaic systems

SBTs - 42% GHG emissions Scope 3

Supply chain engagement to identify reduction initiatives

Road to Net-zero

Electrification of industrial sites heating systems

One of the main drivers for achieving the European Green Deal's zero-emission target is the electrification of consumption, which, combined with the integration of renewable energies into national energy mixes, would make it possible to reduce emissions considerably.

3 SITES

2019

6 SITES

2021

Future

Already in 2019, three industrial sites were not using natural gas for heating. In particular the production plant in Scandicci and the warehouse in Montegranaro are provided with a full electric systems for heating, while the production plant in Piancastagnaio is equipped with a geothermal system.

By 2021, two more interventions were carried out in the production plant located in Arezzo and in the warehouse of Levanella converting the heating system to electric, leaving natural gas only as a back-up. Moreover, the new logistics hub is equipped with a geothermal system.

Prada continually explores opportunities for electrification on its existing assets, where technically feasible, and considers electrification of consumption a priority at newly built industrial sites.

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Green company car fleet

During 2021, the Prada Group continues the progressive replacement of gasoline and diesel-powered vehicles¹⁴ with hybrid and electric ones. The number of green vehicles in the company car fleet increased from 9 in 2019 to 131 in 2021.

By the end of 2021, 24% of the whole Group car fleet was made of green vehicles, a significant increase from the 2% share in 2019. At the same time, Prada continues to invest in the infrastructures aimed at enabling electric mobility by installing charging stations at its Headquarters.

% of green car of the company fleet

The target of the Group is to have 60% of the whole fleet green by 2022.

LEED Gold or Platinum certified stores

Every time a new store is built, or an existing one is renovated, the goal for the Group is to make the building highly energy-efficient, by getting the LEED (Leadership in Energy and Environmental Design) certification.

At December 31, 2021, the Prada Group counts:

3 LEED certified Building Design and Construction (the Scandicci plant, the Logistic Hub in Levanella and the Arezzo plant);
57 LEED v4. Interior Design and Construction certified stores;
81 LEED v4.1 Operations and Maintenance (O+M) certified stores.

The ongoing commitment to this issue allows the Group to be the one with the highest number of LEED certifications in the high-end luxury sector.

¹⁴ - As green vehicles are considered BEV (Battery Electric Vehicle), PHEV (Plug-in Hybrid Electric Vehicle), HEV (Hybrid Electric Vehicle), MEV (Micro-Electric Vehicle).

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— At December 31, 2021, the Prada Group owned 13 photovoltaic systems, which covered 9% of the entire industrial electricity need.

Electricity from renewable source

In 2017, the Prada Group signed a partnership and began to purchase electricity supplied by renewable sources with Guarantees of Origin (GoO), both in Italy and worldwide. More in detail, the Group purchased certified renewable electricity in Italy, USA, United Kingdom, France, Spain, Austria, the Netherlands and Switzerland. In 2021, 54% of the total electricity purchased came from certified renewable sources covered by GoOs, allowing to avoid over 20,000 tons of CO₂¹⁵. Prada is fully committed to increasing this share in the coming years, focusing in strategic countries such as China and Japan.

Electricity from owned photovoltaic systems

At December 31, 2021, the Prada Group counts 13 photovoltaic systems installed mainly at its production sites. During 2021, Prada installed two new photovoltaic systems: one on its New York headquarters and one over the production plant of Piancastagnaio. Overall, in 2021, the Group was able to produce 3,585,104 kWh, out of which 2,534,187 kWh were consumed internally, 26% more if compared to 2019 (2,014,207 kWh). The photovoltaic plants installed at global level allowed to cover 2.7% of the entire Group electricity need, while the photovoltaic plants installed in industrial sites allowed to cover 9% of the entire industrial electricity need.

¹⁵ - The emissions avoided were calculated using the Market-based calculation method.

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MWh of electricity consumed from photovoltaic plants

The target of the Group is to double the self-produced energy from owned photovoltaic systems by 2026 from the 2019 base year.

2021 Energy Consumption and Scope 1 and 2 Emissions

Energy consumption under the direct control of the Prada Group is related to electricity consumption (78% of the total), natural gas consumption (12%) and the Group's corporate fleet (10%). Compared to 2019, the Group's direct energy consumption was 3% lower, mainly thanks to the decrease in natural gas (-7%) and fuel relating to the company's car fleet (-15%) consumption. In particular, the contraction in

fuel consumption was related to less traveling due to the health emergency. The GHG emissions associated with the consumption of gas, fuel and refrigeration gas refills (Scope 1) amounted to 7,744 tons of $\mathrm{CO}{2}\mathrm{e}$ , recording a decrease of $7\%$ compared to 2019. In the last quarter of 2021, the Prada Group signed a contract with its gas supplier for the offsetting of greenhouse gas emissions linked to the consumption of natural gas from its production sites, through the purchase of certified carbon credits from the supplier, and which led to the offsetting of 747 tons of $\mathrm{CO}{2}\mathrm{e}$ . Scope 2 emissions relating to the purchase of electricity decreased by $12\%$ compared to 2019 considering the location-based method, and increased by $6\%$ considering the market-based method.

Energy consumption (GJ)	2019	2020	2021
Company fleet	51,110	28,585	43,445
Natural gas	57,114	55,949	53,369
Electricity	341,379	312,544	340,084
Total energy consumption	449,603	397,079	436,898

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Scope 1 and Scope 2 emissions (t CO₂e)	2019	2020	2021
Company fleet	3,698	2,042	3,089
Natural gas	3,243	3,164	3,017
F-gas leaks	1,412	1,182	1,639
Total Scope 1	8,353	6,388	7,744
Electricity - location based	38,773	33,429	34,044
Electricity - market based	19,506	18,251	20,620
Total Scope 1 + 2 (location-based)	47,126	39,817	41,788
Total Scope 1 + 2 (market based)	27,859	24,639	28,364

2021 Scope 3 Emissions

The Prada Group has calculated its indirect greenhouse gas emissions (Scope 3) also for the reporting year 2021. The calculation of the Group's carbon footprint will be carried out annually in order to monitor progress against reduction targets - validated by the Science-Based Target initiative, and ultimately to be more transparent towards stakeholders.

As in 2019, the main sources of Scope 3 emissions in 2021 are related to the purchase of goods and services (73%), upstream logistics and distribution (14%) and upstream leased assets (5%). Compared to the baseline, emissions related to investments have been added following the acquisition of a minority stake in Filati Biagioli Modesto S.p.A.; in particular, greenhouse gas emissions deriving from the purchase of electricity and fuel by Filati Biagioli has been included proportionally. The related emissions' share (56 CO₂e) is very limited because the company is 100% supplied by certified renewable electricity. Scope 3 emissions have reported a significant contraction (-32%) compared to 2019 (baseline), which is mainly due to the decrease in category 1 (-30%) and related to lower production volumes in general and, in particular, lower purchase of leather in 2021. The Group is committed to implement concrete actions in the short and medium term to reduce Scope 3 emissions through the direct engagement of its supply chain.

Scope 3 emissions (t CO₂e)

3.1 Purchased goods and services	206,399
3.3 Fuel related activities	8,440
3.4 Upstream transportation and distribution¹⁶	41,206
3.5 Waste generated in operations	843
3.6 Business travels	1,045
3.7 Employee commuting¹⁷	12,190
3.8 Upstream leased assets	14,025
3.15 Investments	56
Total Scope 3 emissions	284,204

¹⁶ - For this item the data have been estimated for a 36%.
¹⁷ - In order to calculate this item, a survey on commuting was sent to all Prada Group employees.

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Responsible use of Natural Resources

Water Management

The Prada Group is aware of the growing importance of water-related issues and the impacts that the fashion industry has on water consumption and water pollution relating to both raw materials procurement and the industrial processes referred to raw materials transformation. As previously reported, water management has become a material topic following the updating of the materiality analysis and, therefore, Prada assessed for the first time the water withdrawals of its manufacturing plants and warehouses related to 2020 and 2021.

The Group's water consumption is mainly related to sanitary services and irrigation of green areas; the only production sites where water is used for industrial processes are its French Tannerie, where leather is processed, and the production facility in Torgiano (Italy), where knitwear is processed and therefore numerous washing cycles are carried out.

The Group is committed to reducing and increasing the efficiency of water consumption at its industrial sites. For example, at the Torgiano factory a closed-circuit multi-purpose machine was installed to cool the dry-cleaning machines. Moreover, in both Torgiano and Valvigna italian production sites, rainwater is recovered for sanitary or irrigation purpose. Finally, at the new logistic hub, where a geothermal heating system is used, the exchange water is recovered for sanitary and irrigation purpose.

Overall, as shown in the table below, in 2021, the Group withdrew¹⁸ a quantity of water equal to 273,958 m³, 78% of which came from groundwater (e.g. wells), 19% from third parties (e.g. aqueducts) and 3% from superficial waters (e.g. rivers).

Water withdrawals¹⁹ (m³)	2020	2021
Groundwater	44,288	212,704
Surface water	10,856	9,136
Municipal water supply	44,191	52,118
Total water withdrawals	99,335	273,958

Compared to the reporting year 2020, whose data cover 75% of the total square meters of industrial sites, in 2021, the Prada Group expanded its reporting perimeter, including the data related to 90% of the square meters of its production facilities, with the aim of reaching 100% for the next reporting period. Considering the same perimeter of 2020, water withdrawals in 2021 were equal to 97,684 m³ (decreasing by 1.7%).

Water discharges are of particular importance for industrial sites that use water in their industrial processes, such as the above-mentioned factories in Torgiano (Italy) and France.

In particular, at the Torgiano site there is a wastewater treatment plant that filters civil and industrial water coming from the site (amounting to 8,476 m³). At the French Tannerie, the waste water (amounting to 6,461 m³) is treated in a purification plant before being sent to a municipal wastewater treatment plant, where the sludge is filtered; a monthly analysis of the wastewater is then carried out by a government laboratory in order to assess the presence of chromium or other hazardous substances.

¹⁸ - In 2021, according to the online database "Aqueduct" that is aligned with the World Resource Institute (WRI), the 92% of the Group's industrial withdrawals took place in water-stressed areas, considering that, Tuscany and Marche regions, where most of the Group's production sites are located, are considered high-water risk areas.

¹⁹ - The data in the table refers to freshwater.

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Optimization of Processes and Consumption of Raw Materials

The Prada Group feels a sense of responsibility for sourcing and managing raw materials in a manner that takes into account not just the intrinsic value given by the quality of the raw materials used, but also their origin and the manufacturing processes that they undergo. Indeed, protection of the environment and its biodiversity is a fundamental element of the Group's growth strategy and the search for new materials have always characterized Prada's design.

As fully described in chapter 3, paragraph "Industrial strategy", investments made in industrial development in the last years have led to insourcing various production phases, with the purpose of maintaining quality at the highest levels of excellence while optimizing the use of raw materials.

The clothing, footwear and leather goods divisions directly select the suppliers of all raw materials that are used in the production of finished products, even those used by their manufacturing suppliers, coordinating and monitoring in this way the entire production process. This strong integration of design, product development and direct and outsourced production - a distinctive element that has characterized the Prada Group's industrial strategy

ensures full control of a crucial phase of the value chain. Vast majority of the prototypes and samples, as well as a part of the finished products and the most delicate phases of production, such as the controls over all raw materials and the product accessories (also for suppliers), and the cutting of hides, are realized at the Group's own facilities.

The Group scrupulously complies with local and international regulations on the procurement, import, use and export of raw materials, such as the Convention on International Trade in Endangered Species (CITES).

Already in 2019, in collaboration with the Fur Free Alliance (FFA), the Prada Group announced the adoption of a fur-free policy for all its brands, thus allowing the research and development of new, more innovative and responsible materials.

The materials Prada uses in the manufacturing process can be broken down into primary materials - such as leather, fabrics and yarns - and ancillary materials or semi-finished products - such as soles, heels, zippers, buttons, threads, ribbons, buckles, clasps and name plates.

The most significant information relating to raw materials purchased from 2019 to 2021 is listed below, including the related unit of measure.

Raw Material	Units	2019	2020	2021
Leather	Feet	29,514,844	11,898,684	17,408,039
Fabrics	Meter	4,141,910	2,911,897	4,039,425
Yarns	Kilo	154,394	109,788	185,055
Shoes' soles	Pair	1,388,294	978,927	1,436,327

In the table above, data shows that in 2020 the pandemic also had a significant impact on the Prada Group's production processes. The suspension of activity and the closure for five weeks of 21 factories caused a great effort in the proactive and efficient management of inventories to align the purchases of raw materials with the rescheduling of production according to a completely extraordinary situation. In 2021, the main raw materials essentially found their pre-pandemic values, except for leather that recorded a decrease. Overall, in 2021, purchases of the aforementioned raw materials

accounted for approximately $83\%$ of the economic value of all purchases including accessories and semi-finished products.

Moreover, the Fashion Pact coalition includes the use of low-impact raw materials among its main objectives; this focus is shared by the Group's commercial partners and is in fact speeding up the cultural and technological transition necessary to satisfy the growing demand for more sustainable alternatives, which will be increasingly integrated into production processes to encourage greater circularity of the supply chain.

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Leather

The focus on Italian origin is demonstrated by the procurement data regarding leather for footwear, bags and accessories. In terms of quantity, in 2021, 90% of the leather came from Italian tanneries renowned for their quality and long tradition. Another 6% has been purchased from suppliers based in the rest of the European Union, while the remaining 4% came from outside the European Union.

Leather is purchased from selected tanneries following criteria that meet environmental and social parameters for production. 100% of the leathers come with a certificate of origin, a data sheet guaranteeing quality and compliance with standards, and certification regarding the parameters stated on the Group's Restricted Substances List (RSL). During the Capital Markets Day, which was held on November 18, the Prada Group communicated an important target regarding leather procurement, which will be all Leather Working Group (LWG) certified by 2023. In 2021, 52% of the tanneries employed by the Group were already LWG certified. The Leather Working Group is the number one globally recognized brand representing responsible leather sourcing to the industry and to consumers. Its mission is to improve the impact of the leather supply chain by becoming the overarching standard for leather manufacturing, covering all elements and actors in the value chain.

Responsible Waste Management

In the last years, the Group conducted a review of the processes carried out and waste produced in each manufacturing phase at the factories, and subsequently set up a system to manage the internal cycle of waste collection, temporary storage, transport, and disposal. The analysis enabled to optimize the production cycles, thereby reducing waste production and increasing the proportion of waste recycled. The Prada Group also places great emphasis on encouraging its staff to use industrial waste collection methods and standards that can ensure waste reuse and recycling or disposal according to best practices.

The significant Group's industrial investments, especially those regarding the most delicate phases of the production processes, have made it possible to reduce the production waste relating to clothing, leather goods and footwear products and, at the same time, to effectively manage waste collection and disposal.

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As shown in the table below, at December 31, 2021, the Prada Group produced 2,210 tons of industrial waste, recording a 41% decrease compared to 2019, also due to the lower production volumes, in a year still affected by the health emergency. The waste generated in the Group's factories mainly consists of paper and cardboard, packaging materials, textile and leather waste. Just around 1% of waste produced is classified as hazardous waste and is managed, transported and delivered to authorized disposers in compliance with current regulations.

		2019		2020		2021
Waste composition	Unit of Measure	Waste generated	Waste diverted from disposal %	Waste generated	Waste diverted from disposal %	Waste generated	Waste diverted from disposal %
Non-hazardous waste		3,724	44%	2,202	56%	2,184	62%
Paper and cardboard	t	960	100%	683	100%	680	100%
Mixed packaging	t	343	99%	284	100%	351	100%
Textile and leather waste	t	619	20%	491	25%	489	44%
Sludge	t	1,297	0%	455	0%	403	0%
Organic waste	t	14	0%	14	0%	58	8%
Metal	t	68	100%	24	100%	41	100%
Paint	t	2	0%	2	0%	8	0%
Other	t	421	39%	249	47%	154	33%
Hazardous waste		17	6%	15	41%	26	6%
Mixed packaging	t	11	8%	11	57%	11	15%
Solvents	t	1	0%	2	0%	5	0%
Paint	t	-	-	1	0%	2	0%
Organic waste	t	-	-	-	-	1	0%
Other	t	5	0%	2	0%	8	0%
Total	t	3,742	44%	2,217	56%	2,210	61%

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In 2021, about 61% of the waste generated by the Group was diverted from disposal, reporting a steady increase from both 2020 (+56%) and 2019 (+44%). It should be noted that the waste diverted from disposal does not include waste destined to energy recovery (waste-to-energy plant).

Circular Thinking

The principle of circularity, or circular thinking, is part of the Prada Group's sustainability strategy. It is integrated throughout its value chain, from the growing use of recycled and regenerated raw materials to the proper management of scrap materials that can be repurposed and reused in alternative value chains. Circularity can be approached from various angles, one of which is extending the life of a product. The Prada Group has always offered care for its products even after they reach the end consumer. To this end, the stores provide clear information about proper product maintenance and supply after-sales and repair services.

The commitment to enhancing the durability of the materials is not limited to this aspect; the Group has

been succeeding in implementing a truly circular strategy through various initiatives.

The Prada Re-Nylon project is perhaps the most emblematic of the Group's exercise of circular thinking: the decision to use for its nylon products exclusively a material obtained from the recovery and recycling of items, that otherwise would have been destroyed, has facilitated the application of this concept to various levels of the process. In this case, circular thinking extends to the proper recuperation of production scrap, which is reused in the regenerated nylon production system thanks to close collaboration with suppliers.

The Upcycled by Miu Miu project is an example of experimentation on an existing product, with the proposal to the customer a new perception of vintage. Circular thinking has also involved other processes of the Prada world. For example, the Prada Group Re-Set project has made it possible to set up a real system for recuperating the materials used in setting up events and fashion shows so that they can be reused.

Finally, extensive mapping of the material utilized for packaging has led to solutions to reduce the quantity of the packaging materials used in industrial distribution and of the environmental impact through the employment of more sustainable options.

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Prada Re-Nylon

Nylon is emblematic of the Prada brand and is a distinctive feature of its approach to contemporary fashion. The Re-Nylon project, an important sustainability initiative for the Prada Group, has emerged from a profound reflection on the growing concern of today's society for environmental protection. The Prada Re-Nylon collection is crafted entirely from regenerated nylon created through the recycling and purification of plastic collected from oceans - like fishing nets - and landfills, as well as textile fiber waste globally. Through a process of depolymerization, purification and transformation of the new polymers into threads, this material can be made into new nylon fabric.

After a first edition limited to men's and women's bags and accessories launched successfully in 2019, in 2020 the use of Re-Nylon was expanded to clothing and footwear.

In 2021, despite the difficulties caused by the pandemic and the consequent slowdown of the global economy, the Prada Group succeeded in totally converting from virgin nylon to regenerated nylon and extending the Prada Re-Nylon collection in part to its partnership with adidas - launched at the beginning of 2022 - confirming, once again, Prada's commitment to finding lower environmental impact solutions involving prominent partners.

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Upcycled by Miu Miu

Upcycled by Miu Miu, launched in 2020 with the first exclusive collection of vintage garments recycled and customized by Miu Miu - carefully rediscovered and handpicked in vintage clothes shops and markets across the world, continues to develop a culture founded on sustainability by giving new life to vintage denim items with a special collaboration with Levi's®.

In 2021, the project presents a careful selection of the iconic vintage 501® jeans and Trucker jackets, original Made in the USA and dating back to the period between the 80s and 90s, adapted and customized. This new collection of classic denim garments reinterpreted through Miu Miu's unconventional and deliberately playful gaze debuted with two dedicated pop-up stores in London and Shanghai.

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Prada Group Re-Set

The Prada Group puts circular thinking into practice not only by selecting and using recycled or regenerated raw materials for its collections; it also provides for the management and effective reuse of the materials used to set up events and fashion shows. It is with this spirit that the new upcycling project - Prada Group Re-Set - was created in collaboration with Spazio Meta in Milan, La Réserve Des Arts in Paris and global partners chosen by the Group near events and fashion shows to prevent unnecessary transportation of materials that find a new life once duly recovered from these local partners.

The Re-Set project, started up in 2020 with Prada fashion shows and then extended to Miu Miu, offers to professionals and students raw materials and semifinished goods that can be reused for different purposes, whether in education, research or creative installations. The Prada Faux Fur video, with the

artistic supervision of OMA/AMO, released for the launch of Re-Set at the beginning of 2022, shows all the phases of the project and the collaboration with students of the Design Academy in Eindhoven and Royal Academy of Art in Aia, who reinterpreted some materials originating from the Prada Fall/Winter 2021 fashion show.

Since 2020, the Re-Set project has recuperated approximately 130 kilos of medium-density fiberboard, 1.6 tons of faux fur and more than 70 tons of wood.

This project brings together the various figures of the Prada Group as the core aspects of its sustainability strategy converge, such as the integration of circular thinking and the engagement with the cultural and academic world, while the Group seeks to apply this philosophy to all its events and explore new upcycling opportunities.

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Packaging: Paper and Plastic

In 2021, the Prada Group used 4,691 tons of paper for packaging worldwide, returning to pre-pandemic consumption levels. 89% of the total packaging consumption was represented by paper certified by the Forest Stewardship Council (FSC) and recycled paper, confirming the Group's commitment towards a more sustainable packaging.

Paper consumption for packaging (tons)

In the last years, the Group also embarked on a program within the clothing and leather goods divisions aimed at converting some packaging components made from 100% virgin plastic into recycled or regenerated plastic.

The graph below shows the % of virgin and recycled plastic used in product packaging; in 2021, plastic with recycled content reached 61% out of a total of 500 tons (49% in 2020).

— Fast transition to more sustainable packaging solutions.

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Plastic consumption for packaging (tons)

— Preservation of the Territory

Respect for places is a guiding principle for the Prada Group. Reducing land take, renovating and upgrading existing facilities are at the core of the industrial development of over thirty years of activity. Indeed, the Prada Group prefers to purchase and renovate existing buildings and the few newly constructed ones fit in harmoniously with the local areas, without causing disruption.

The Prada Group has more than 200,000 m² of production facilities and warehouse spaces, located almost entirely in Italy. Among these, 6 are new buildings and many are cases of renovations of industrial buildings and degraded sites that had been abandoned for many years.

When the Prada Group is unable to restore existing buildings, it hires masters of architecture such as Guido Canali, known for his sustainable architecture, to ensure results that have a low impact on the territory and that create a new landscape that fits harmoniously with the surrounding area.

Facilities are designed and conceived as workplaces of people and for people, and to respect nature

faithfully. Those in Montevarchi and Valvigna, Tuscany, and in Montegranaro, in the Marche region, were designed specifically with the environment in mind; the volumes have a contained visual impact also thanks to the vegetation and well inserted in the landscape. This feature makes them fully fledged "garden factories". The factories, with their wide, bright spaces enclosed by hanging gardens, are intended to have a discreet external image, but also distinctive interiors experienced by the employees.

Among the projects designed by Guido Canali, the logistics hub in Levanella (Tuscany) is the focal point of a major restructuring project regarding outbound logistics. The hub was designed to be responsibly integrated into the territory thanks to border plantings, artificial dunes, roof gardens, glass walls, walkways, and outdoor relaxation areas.

The green areas occupy more than 50% of the entire surface of the structure, maintaining intact the vegetation typical of the Mediterranean scrub to preserve the variety of local flora and insulate the buildings.

In terms of energy efficiency, the logistics hub is a reference point for the Group's cutting-edge industrial structure since it was built with a photovoltaic system, LED lighting, an energy-saving smart home system, and a geothermal plant.

— "The main strategy was to integrate the architectural structure with the territory. Quality can only come from the quality of the work environment."

Patrizio Bertelli

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Partnership: The Fashion Pact

2019 clearly marked a turning point for the fashion world in climate change and environmental protection challenges. On the occasion of the G7 meeting in Biarritz, 32 world leaders of the fashion industry, including the Prada Group, signed the Fashion Pact. This coalition, which sees luxury, fast-fashion, sportswear companies, suppliers and retailers working side by side, is born out of the recognition that only collective action can change the environmentally harmful impact of the fashion industry. It is an unprecedented initiative, with peers, competitors, established brands and newcomers, coming together to work on the most pressing issues facing our planet. At the end of 2021, following an increasing number of adhesions, the coalition reached an exceptional magnitude bringing together more than 70 fashion companies, testifying the power of the collective for the sustainability of the fashion sector at large. The Fashion Pact defined concrete targets in three key areas that are crucial for the preservation of the planet: the fight against climate change, the conservation of biodiversity and the protection of the oceans. The set of goals, which all the signatories are committed to achieving over the next few years, are not only declarations but also represent a tangible commitment that will be pursued through action plans with solid scientific bases.

Climate change	Biodiversity	Oceans
The fight against climate change will be pursued through the commitment to a progressive supply of electricity from renewable sources, to the search for alternative raw materials with a lower environmental impact and to the setting of emission reduction targets aiming for carbon neutrality.	The protection of biodiversity will be guaranteed through the commitment to define a strategy for the safeguard of the territory, the promotion of sustainable management of natural forest and the support of activities to discourage deforestation.	The protection of the oceans will be ensured through the commitment to gradually replace the plastic used in packaging with sustainable alternative materials.

In 2021, the Prada Group's commitment and contribution continued and focused on acquiring new knowledge necessary to progress in the increasingly ambitious initiatives launched by the Fashion Pact. Specifically, the Group's CSR Department took part to all the online meetings with the high profile partners made available by the Fashion Pact for the benefit of the signatories for the alignment on specific skills and the main reference standards.

The Prada Group is making progress on all Fashion Pact's pillars and the commitment to the climate, already described in the previous paragraphs, is tied with that for biodiversity and the protection of the oceans. The progressive adoption of an increasingly sustainable packaging, the spread of an education oriented towards ocean literacy for the new generations, and a first initiative to restore marine ecosystems - with the reforestation of Posidonia oceanica meadows in the Marine Protected Area of "Capo Carbonara" (Sardinia) - are all tangible examples of this strategy.

Posidonia oceanica is a marine plant endemic to the Mediterranean Sea, providing an important habitat for marine species and playing a crucial role in absorbing $\mathrm{CO}_{2}$ to help mitigate climate change.

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Highlights 2021

13,140

Workforce

62%

Women

57%

Women among top executives

107%

Different nationalities

89%

Permanent contracts

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— The Prada Group is committed to operating with full respect for the value of the individual and for the human and workers' rights.

Respect for human rights, for workers and for the people in general, as well as the promotion of diversity, equity and inclusion, are elements that characterize the Prada Group and its way of operating in a global and constantly evolving context. This approach also extends to people working along the Group's supply chain.

Prada has always considered human capital to be key to its competitive edge and makes every effort to promote and reward personal and professional skills, teamwork and improvement. The employees' enthusiasm, craftsmanship and intellectual curiosity are the elements that underpin the innovation, creativity and quality of the Group's products.

The Prada Group is committed to operating with full respect for the value of the individual and for the human and workers' rights enshrined in Italian and international covenants and declarations, such as the United Nations Universal Declaration of Human Rights, the International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work, and the Organization for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises.

— Workforce

At December 31, 2021 the headcount of the Group stands at 13,140, substantially recovering from the contraction recorded in 2020, a year upset by the pandemic. 2021 sees the entry of very important managerial figures who are part of the Group's long-term development vision regardless of the uncertainties still underway related to the health and economic emergency.

Despite the instability due to the global health emergency has again affected 2021, the percentage of permanent contracts stands at 89% of the workforce at an international level, confirming the Group's commitment to stability in employment relationships and long-term investment in human resources. The return to favorable business conditions made it possible to exceed the percentage of permanent contracts achieved in 2019 (88%), which was the last year before the pandemic.

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Number of Employees

13,968

12,868

13,140

2019

2020

2021

Employees per Geographical Area

39%

Italy

20%

Europe

America

Middle East

Asia Pacific

Japan

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Outside Italy, where 39% of the workforce is located, the most sizable part of the workforce is in Asia-Pacific (23%) followed by the rest of Europe (20%). In Italy, where 20 of the 23 production facilities are located, most employees (63%) work in the industrial division, while in other countries, where 576 out of 635 Directly Operated Stores are located, 84% of employees are in retail.

Employees by Gender

Women permanently represent the majority of the workforce, counting for 62% of the corporate population.

Employees per age range

	< 30	30 - 50	> 50
2019	24%	56%	20%
2020	20%	59%	21%
2021	19%	63%	18%

A breakdown of the workforce by age shows that at December 31, 2021, 19% of Prada employees were under 30 years old and 63% were aged 30 to 50. Further analysis shows that 24% of the retail workforce were under 30 years old, while in the industrial division, where at least ten years of experience in production and craftsmanship is particularly important, 52% of the workforce belonged to the 30-50 year old range and 38% to the over 50 year old range.

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Operators

	F					M
	< 30	30 - 50	> 50	< 30	30 - 50	> 50
2019	1.4%	5.5%	5.0%	1.8%	4.3%	2.5%
2020	1.4%	5.6%	5.4%	1.7%	4.6%	2.6%
2021	1.1%	5.7%	5.5%	1.3%	4.0%	2.2%

Staff and Professionals

	F					M
	< 30	30 - 50	> 50	< 30	30 - 50	> 50
2019	13.1%	23.8%	6.5%	7.4%	12.9%	3.5%
2020	10.2%	24.7%	7.1%	5.9%	13.8%	3.5%
2021	10.3%	26.3%	5.0%	5.9%	15.5%	2.6%

Top, Senior and Middle management

	F					M
	< 30	30 - 50	> 50	< 30	30 - 50	> 50
2019	0.3%	5.4%	1.3%	0.2%	4.0%	1.3%
2020	0.2%	5.9%	1.5%	0.1%	4.3%	1.4%
2021	0.2%	6.7%	1.5%	0.1%	4.7%	1.5%

In the periods under comparison, the breakdown of employees by age and gender remained quite stable. Globally, the average age of the Group's employees at December 31, 2021 was 39.6 years.

In the Staff and Professionals and Top, Senior and Middle management categories, within the category 30-50 year old, females accounted for 26.3% (vs. 15.5% of males) and 6.7% (vs. 4.7% of males) of the total workforce respectively.

Finally, again in the 30-50 year old range, there is the greatest concentration of fixed-term contracts, mainly in the retail area. 68% of the total fixed-term contracts are for women.

Full-time employees represent 97% of the total. In 2021, there were no differences in terms of benefits granted to employees, between full-time and part-time contracts.

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Champion Diversity and Equal Opportunity

Diversity, an essential element of social sustainability, is a value for the Prada Group; the enhancement of differences is to be meant as a premise for creating the ground of an inclusive work environment that allows people to express their potential, to be used as a strategic lever for achieving organizational objectives. Freedom of expression is the founding factor of a creative industry like Prada, which must understand and anticipate social changes, surrounding all generations in the diversity of their aspirations, especially today in an increasingly integrated and globalized society. The vast international presence of the Prada Group reflects a multitude of different cultures, nationalities and religions. The communities and areas in which it operates are a constant source of inspiration and growth. The statistics on employees' origin prove the various backgrounds of the workforce. In fact, people with 107 different nationalities (104 in 2020) work for the Group. The strong female presence is demonstrated by the ratio between males and females for each job category: women not only represent the majority of Operators (62%) and Staff and Professionals (63%), but they are also the largest component (57%) of Top, Senior and Middle management.

	Operators		Staff and Professionals		Top, Senior and Middle management
	F	M	F	M	F	M
2019	58%	42%	65%	35%	56%	44%
2020	58%	42%	64%	36%	57%	43%
2021	62%	38%	63%	37%	57%	43%

Another distinctive characteristic is the prevalence of females in all divisions.

	Industrial		Corporate		Retail
	F	M	F	M	F	M
2019	60%	40%	57%	43%	64%	36%
2020	60%	40%	57%	43%	64%	36%
2021	61%	39%	58%	42%	64%	36%

Even at a geographical level females represent more than half of workers in all areas, with peaks in Japan and the Asia Pacific, where females account for 71% and 68% of employees respectively.

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Employees per gender and geographical area

	F	M
Italy	60%	40%
America	58%	42%
Europe	60%	40%
Asia Pacific	68%	32%
Japan	71%	29%
Middle East	52%	48%

Respect for equal opportunities is also reflected in the Compensation & Benefit system, based on the enhancement of skills and merit, which ensures equal treatment by gender, seniority and role, as also confirmed by the substantial equality in the remuneration treatment as showed in the table below.

Pay Gap (with the median as 100%)

	Operators		Staff and Professionals		Top, Senior and Middle management
	F	M	F	M	F	M
2019	99%	102%	98%	103%	97%	102%
2020	98%	102%	98%	104%	96%	103%
2021	98%	103%	97%	105%	97%	103%

In 2020, the Prada Group appointed a Chief Diversity, Equity and Inclusion Officer for Prada North America responsible for developing policies, strategies and programs to help ensure diverse representation of experiences and perspectives at all levels of the company. Her role is to work closely with the Group's global leadership to strengthen an inclusive culture and ensure progress in terms of equal opportunities within the organization.

During 2021, the Prada Group announced a series of initiatives aimed at further deepening its commitment to diversity, equity and inclusion within the Company and the fashion industry as a whole. These efforts reflect Prada's comprehensive strategy that seeks to create a culture of inclusion. Also important to this strategy are ongoing diversity, equity and inclusion leadership trainings.

Furthermore, the Group has launched internship and mentorship programs and has partnered with the Fashion Institute of Technology (FIT) to develop scholarships focused on aspiring fashion industry professionals and undergraduate students of colour in the United States and Africa. The Prada Group is working closely with the United Nations Population

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— “Prada Group is taking real and significant actions that will expand career and professional opportunities for people of colour in the fashion industry. We recognize the barriers to entering the fashion industry and the importance of representation, so we want to develop many new programs that will advance and mentor aspiring fashion professionals, while investing in the next generation of diverse talent.”

Malika Savell
Chief Diversity, Equity & Inclusion Officer
at Prada North America

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Fund (UNFPA) to develop an educational fashion module to promote gender equality in Africa, launching in Ghana and Kenya.

To elevate more emerging designers of colour, the Group will collaborate with its Diversity and Inclusion Advisory Co-Chair, artist, social innovator, and Founder of Rebuild Foundation, Theaster Gates, to create a design lab for diverse creatives and artists in Chicago, New York and Los Angeles.

At the end of 2020, the Prada Group was the first luxury fashion player to join the Valuable 500, the global community dedicated to radically transforming the business system to make it more inclusive of

people with disabilities. Prada strongly recognizes the intrinsic value of people living with disabilities and commits to supporting it with its inclusion and sustainability agenda. In 2021, the company explored various options to define a long-term program, which will start in 2022 with the hiring of people with disabilities at its Italian stores. For this purpose, a specific training course was organized during the year not only for the retail staff who will welcome these new individuals to their team, but also for the Human Resources Department that will oversee this new activity, to better manage the recruiting and hiring of the new employees.

— “We are extremely proud of these programs, which reflect Prada Group’s commitment to cultivating, recruiting and retaining diverse talent and to creating an inclusive culture. These initiatives mark real progress, and we look forward to building on this momentum to create more opportunities that increase diversity and representation both within Prada and in the fashion industry today and in the future.”

Lorenzo Bertelli

Prada Group’s Head of Corporate Social Responsibility

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Diversity and Inclusion Advisory Council

As anticipated, the Group firmly believes in the value of diversity as a source of inspiration for its activities and, more generally, as a form of cultural heritage, wellbeing and creativity, which allows to establish a bond of affinity with a global base of diversified stakeholders.

For years now, in the United States, the Group established the Diversity and Inclusion Advisory Council (hereinafter "D&I Council") in order to promote diversity and inclusion within the company and in society.

The D&I Council, as a consultative body fully independent from any form of governance of the Group, has the mission to support the knowledge and the development of the company on the social aspects of sustainability, particularly diversity, equity and inclusion within the fashion industry.

The D&I Council is composed of academics, artists, activists, representatives of the world of art and culture from world-renowned institutions. The Council has two Co-Chairs, Theaster Gates and Ava DuVernay, and avails itself of the contribution of three other members: Joyce Brown, President of the Fashion Institute of Technology (FIT), Mariarosa Cutillo, Humanitarian and Chief of Strategic Partnerships at The United Nations Population Fund (UNFPA), and Sarah Lewis, Associate Professor of History of Art and Architecture and African American Studies at Harvard University.

In 2021, the D&I Council regularly collaborated with Prada Group leadership, including Chief Diversity, Equity and Inclusion Officer, Malika Savell, to ensure the definition and launch of the long-term initiatives plan that the Group then launched during the year and which was described in the previous paragraph.

Theaster Gates
Co-Chair

Ava Duvernay
Co-Chair

Joyce F. Brown

Mariarosa Cutillo

Sarah Lewis

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— Prada Academy and Skills Development

Since the beginning of the 2000s, the Prada Group has designed learning paths for its employees, creating over time a true internal Academy structured with conventional courses, on-the-job training and online training.

Prada Academy is a physical and digital place where knowledge, skills, techniques and innovative ideas are shared and developed to foster talent and hand down the diverse expertise essential for the Group. In a year characterized by uncertainty due to the global trend of the pandemic, Prada Academy has redesigned its internal managerial and behavioral training processes in a way that lays the foundations for a working experience increasingly aligned with the constantly evolving scenario. At the same time, an important course of action has been undertaken to rediscover the corporate values through training activities aimed at transmitting and consolidating the related professional skills.

In 2021, the training program concentrated on developing a new customer approach based on

building authenticity and durability in the relationship, and obtaining in-depth knowledge of the Group's brands and products; furthermore, work methods were modernized through the efficient application of digital tools in the different departments. Finally, the Academy started up a process to highlight sustainability, a topic that has become strategic at all levels throughout the various business functions. The different projects, content and learning methods that make up the Prada Academy are divided into three macro areas: a general one focusing on the formation and development of skills to best express the potential of all employees in the company, one dedicated to the industrial world, and one specialized in the retail world.

Learning and Development Academy

Employees are trained from the time they join Prada through an onboarding process, during which the managers meet the new staff members and introduce them to the Prada world and the respective business areas.

The professional training dedicated to the Group's employees focuses on effective management of the complexities present in the various business environments. Courses are formulated by first

— Skills development is fundamental for the Prada Group, as is Prada's commitment to the transmission of skills from one generation to the next.

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analyzing the demands in order to build the content according to the specific personal and professional growth needs, in behavioral, specialized and managerial areas.

During the past year, the training focused on strengthening basic skills to support the dissemination of corporate values, from a person-oriented approach. In this perspective, a new training program has been co-designed with the contribution of training managers from different countries; the content was targeted to store staff and delivered worldwide to develop effective communication skills for improving personal interaction both within the Group and with customers. The co-creation of this training content, carefully structured to meet the needs of each country, has allowed maintaining strong adherence to the real communication demands of each situation. The Academy also worked with managers on building up a feedback culture to support them in their crucial role of ensuring the well-being of the people in the organization.

During the year, the Academy worked toward exploring more sustainability topics for the benefit of employees. In close collaboration with the Prada North America Diversity, Equity and Inclusion team and the Group's CSR Department, in 2021 the Academy provided two introductory training projects on diversity and inclusion, and on the environmental and social issues affecting supply chain management. After starting out as a pilot project in the United States, DE&I training involved all the top management in Italy during the first half of the year, in advance of a global expansion of the program that will involve, from 2022 onwards, the entire Group's population, regardless of their role.

The first edition of the training dedicated to sustainability along the supply chain, delivered as a workshop at the end of 2021, focused on the most urgent social and environmental issues emerging along the Prada Group's value chain and in the fashion industry as a whole. This course will be held in 2022 as well, with the aim of reaching the most employees possible in the spirit of connecting people while they learn and debate on current topics essential for numerous business functions.

In general, the 2021 learning and development program confirmed the increasing trend of digital support in the training process, as the programs are developed online and offline to ensure an ongoing experience. The Group's digital training platform, which since 2017 has allowed all employees

— During the year, the Academy worked toward exploring more sustainability topics for the benefit of employees.

worldwide to benefit from e-learning content and register autonomously for courses, has been further refined through the integration of virtual classrooms and other platforms. The digital language-training program is a recent example of this evolution: after a pilot project in 2020, it was enriched with access given to all employees to take numerous languages courses in a flexible and effective manner.

Industrial Academy

The learning paths for the industrial area are geared toward the acquisition of production know-how in the luxury leather goods, footwear and clothing sectors. The training takes place mostly on the job, in designated areas of the Group's factories and at the excellent technical schools located throughout Italy. In this case, the main objective of the Academy is to constantly enhance the technical and craft skills of the employees, enabling them to become increasingly expert at their jobs and move freely within their scope while experimenting with new tasks, in order to gain a comprehensive overview of the operating processes and thus improve their efficiency. The courses for the technical staff include training on the use of cutting-edge software, in which Prada has increasingly invested over the past few years. During 2021, investments were made in 3D training with the aim of progressively extending the knowledge of innovative tools and techniques to various Company departments.

The Industrial Academy holds dear the safeguarding of fashion expertise, considered a national heritage to be handed down to the new generations. For this purpose, the Prada Group creates training courses

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for recent graduates and/or unemployed youths eager to learn the techniques of the manufacturing world. These courses, conceived as an introduction to fashion trades, are a mix of theory and practice. Studying the production processes is the first step of intensive practical training: it is undertaken immediately in tackling the creation of handbags, accessories, footwear and clothing. Under the guidance of internal instructors and professionals who transmit their extensive know-how, each process is included in detail so that the participants can learn how to work at the highest quality standards. In 2021, as soon as it was possible to resume on-site training activities, the Company opened its factories to welcome 37 young people to be trained for careers in the manufacturing sectors.

Stores Academy

The activities contemplated for store staff include courses intended to strengthen professional skills, product and brand knowledge, and customer orientation and service, assisted by the daily support of experienced personnel.

The social distancing imposed by the public health emergency required overhauling the training modalities, with a strong evolution of the digital

channel: webinars, online sessions and videos enabled to reach systematically the entire store staff worldwide despite the complicated scenario.

In light of ever-changing consumer demographics and purchasing behaviors, with consumers showing more interest in knowing the brand purpose and the usual product content, which remains central, in 2021 an important course was introduced for areas more closely linked to the brand values, the Storytelling Project. This ambitious training project has set itself the goal of increasing the store staff's knowledge of the issues and values relating to the Prada Group and two of its brands, Prada and Miu Miu, thus allowing store staff to expand the conversation topics with the customer and enhance their involvement.

The overall training approach was also redefined with the production of engaging multi-channel narratives (E-Learning, gaming apps, workshops). The harnessing of this recreational approach (gamification) represented further significant progress in the supply of store training content: the intuitive and digital aspects of the game maximized the learning of the content, creating and building engagement and a sense of belonging to the Group and two of its brands, Prada and Miu Miu.

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Training Hours

In 2021, 122,410 hours of training²⁰ - out of which around 42% delivered online in the form of E-learning or webinar - were provided to 81,268 participants. About 56% of employees received at least one hour of training during the year.

Below there is a summary of the average hours of training broken down by gender and by professional category.

During the year, the restrictions derived by the health emergency have significantly affected the possibility of providing training in person; this has mainly affected the training of those employees in the industrial area that are difficult to reach by online training. In 2021, the average number of hours per employee was 9.32, while in 2020 it was 11.94 and 12.28 in 2019.

Training Worldwide 2021

	M	W	Total
Average number of hours per employee by gender	7.85	10.21	9.32
Average number of hours per employee by employee category	Operators	0.60	0.79
	Staff and Professionals	10.22	12.80
	Top, Senior and Middle Management	7.42	11.14

Talent Attraction and Retention

Recruiting the best professionals in the job market, people capable of adding value while fully understanding complex business processes, is a fundamental strategy for the Prada Group's organization. Finding talented youths and continuously reaching out among the new constantly evolving academic courses and disciplines are essential for keeping abreast of the times.

For this reason, the Prada Group participates regularly in events organized by schools and universities in order to connect with students, get to know them during the career days, meet them in training seminars presenting Prada and its processes, and enlist them in projects initiated and coordinated by Prada managers in a combined effort that creates challenging, mutual growth.

Moreover, for years, the Prada Group jointly with some academic institutions has been organizing visits of students to its premises in order to introduce them to its work environment and methods, as it considers opening up in this way to be crucial for its image as an employer of excellence. The visits to the factories in Italy have always been met with enthusiasm for the organizational quality of the areas visited, which are located in unique architectural and scenic settings. Another peculiarity of the educational efforts undertaken by the Group is the creation of synergies with technical schools in Tuscany (Italy), as part of a strategy to orient teaching to the professions required by businesses in the industry and include the training needed to give continuity to technical and craft know-how. This approach is also shared by the Church's Group, which has been conducting meetings at local schools in England since 2019 to come into direct contact with students and present the company and its heritage.

20 - The hours of training exclude those on health & safety.

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— Respect for flexibility, the offer of a good work-life balance and the definition of medium and long-term career paths are key to attracting talents.

The recruiting process uses transparent policies, based on objective skills assessment, and intended to ensure equal opportunity to the applicants. In fact, it is possible to collect and process candidates' profiles in a global universe with the support of an advanced digital platform, which assists and simplifies the synergistic, integrated operation of the Human Resources Department globally.

The Group is attentive to all the new trends in the labour market: respect for flexibility, the offer of a good work-life balance and the definition of medium and long-term career paths are key to attracting talents, and such aspects are by now sought by the labour market in general rather than just by young generations.

The Prada Group's remuneration and retention policy is designed to reward and retain highly professional staff and skilled managers, new graduates and workers, with the certainty that the creation of value is achieved in the medium and long-term through constant organizational learning and the consolidation of employees' experiences and skills.

The policy features a balanced combination of components that are fixed and variable, direct and deferred, tailored to the position and professional qualifications, and consistent with the needs of the various geographical areas.

More in details, the Group's remuneration policy is based on the following elements:

a periodic salary review that takes into consideration the overall market competitiveness with respect to company positions and internal remuneration fairness;
an annual incentive plan linking remuneration to the Company's earnings and to individual performance;
long-term incentive plans, for key managers, linked to the growth in profitability and company's value, aligning individual targets to those of the shareholders;
specific incentive plans for the sales team and for technical personnel specialized in the creation of seasonal collections;
specific benefit plans for each country, which supplement in whole or in part the mandatory entitlements (healthcare, insurance, etc.), and benefits including social services and assistance to families (public transportation, cars, school subsidies, subsistence allowances, etc.).

The Board of Directors, together with the Remuneration Committee, is actively involved in determining the top management remuneration taking into account the roles and responsibilities assigned, and considering the most challenging market compensation applicable to similar positions in comparable businesses in term of industry, size and complexity.

The Group promotes freedom of association and recognizes the right to collective bargaining. In fact, the Prada Group engages with trade unions to improve the working conditions of its employees and to foster the medium/long-term well-being of its employees and thus its surrounding communities. Over the years, the Group has stipulated many supplementary agreements especially in Italy, the United Kingdom and France, whereby it offers better benefits than those established in the local collective bargaining agreements. For instance, around $80\%$ of the employees in Italy and $100\%$ in France can benefit from the supplementary agreements. Employees in the UK's manufacturing division also

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benefit from supplementary agreements.

The most significant benefits provided by these supplementary or company agreements for 2021 were the following:

performance bonus: variable bonus linked to production, sales and profit targets;
vacation bonus: fixed amount equivalent to one month's pay as defined in the collective bargaining agreement;
easy access to severance pay advances;
flexible working hours enabling employees to achieve a more productive work-life balance;
supplementary Healthcare Fund: supplementary health insurance with an option to include immediate family at a special rate;
special leaves of absence for illnesses of employee's children (up to 12 years of age) in France;
regulations, employment protection and better conditions in terms of Sunday premium pay in the stores in France;
improvement in sick leave for the employees of the Church's plant in Northampton, United Kingdom.

As part of the supplementary agreements in Italy, in 2018 a corporate welfare plan was launched with the aim of allowing employees access to an extensive package of services such as reimbursements for healthcare, education and welfare expenses, leisure activities (travel, vacations, cultural and sports events), vouchers for fuel, food, payments to supplementary pension funds, and much more. The welfare plan can be activated under the employees request in view of the performance bonus; the company adds an additional 25% to the amounts converted.

In 2021, due to the impact of the pandemic on the financial results of the Prada Group, and the consequent impossibility of defining reliable targets in 2020, performance bonus related to supplementary agreements was not released. However, as a sign of attention for its employees, the Group decided to provide a one-off extraordinary bonus for welfare in a

period still heavily affected by the health and economic crisis. Employees then used corporate welfare mainly for the reimbursement of medical and school expenses. The Group complies with the applicable international and national laws and regulations for working hours, minimum guaranteed breaks and rest periods. In Italy, where the vast majority of the industrial workforce is located, thanks to the respect, dialogue and cooperation in place with Italian trade unions, there were no labour strikes during the year, just as none had occurred in the previous four years.

— Workers' Health and Safety and Respect for Human Rights

Personal protection and the promotion of health and safety are key priorities for the Prada Group: high quality of the workplaces, internal policies and procedures safeguard workers, customers and every person at all. Company's locations according to the highest standards and in full compliance with local and international regulations.

2020 will always be remembered as the year marked by an unprecedented global health emergency. The Prada Group reacted immediately, focusing on the health and safety of its employees, and extended the strict measures adopted in Italy to all the regions in the world where it operates, along with implementing the various emergency measures across all geographical areas, where lockdowns were imposed by the national governments at different times.

In exceptional circumstances, timely action was taken. Right from the start, a working group dedicated to monitoring and managing the crisis was organized; it developed a protocol to contrast and contain the risk of infection and had it implemented at all the Group's locations in Italy and abroad.

Constant collaboration with local health authorities, company doctors, and worker and trade union representatives ensured prompt responses to a continuously evolving situation.

During 2021, a year still marked by the pandemic, work activity was accompanied by strict anti-contagion measures and the application of scrupulous precautions to protect the health of the employees in all workplaces in accordance with the guidelines imposed by the government health protocols and Prada's even more stringent ones. The prevention

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measures were differentiated according to the type of activity and degree of exposure to the risk of infection.

In most locations - offices, warehouses and stores - occupational health and safety risks associated with the Group's operations are considered limited, also thanks to training activities and updated safety measures, especially in the industrial areas. In the following table, the data for 2019 and 2020 refer to accidents at work in Italy, where approximately $39\%$ of the employees of the Prada Group were located, in addition to those relating

to employees of the production sites in France, the United Kingdom and Romania, which accounted for a further $6\%$ . In 2021, the data collected cover a much broader perimeter as they include, in addition to Italy and the foreign production sites, also the information of the majority of the retail subsidiaries, including the most important in terms of number of employees (United States, China, Singapore, Korea, Japan, France, Germany, Great Britain, Spain, etc.), thus reaching a coverage of $90\%$ of total employees at December 31, 2021.

Injuries (*) at work

	2019	2020	2021
Hours worked	9,475,823	7,586,654	17,255,394
Numbers of injuries at work	53	42	95
of which number of serious injuries	0	0	1
of which fatal injuries	0	0	0
Injury Rate	5.64	5.54	5.51
Serious Injury Rate	0	0	0.06

Injuries with at least one day lost were considered. Injuries data are only related to Group's employees and not to external contractors as they are not material.

For years, the Prada Group has added digital platforms for on-line training to traditional forms of classroom training, platforms that also in 2021 were of fundamental use to reach the largest possible number of employees and raise awareness of the culture of safety. In 2021 training on Health and Safety was provided to 384 people in Italy (780 total people in 2020). Also in 2021, training was heavily affected by the restrictions imposed by the health emergency, and only some categories of employees were able to carry out online training. For the most, for which training can only be provided in person, it was not possible.

There are no committees within the Group responsible for creating and monitoring occupational health and safety programs, whereas the positions and internal organization structures required by the local

legislation of the various countries in which Prada is present do exist.

Generally, the Group is committed to respect human rights in the workplace and its compliance with international rules for the safety and well-being of workers inside the organization and promotes the same respect along its supply chain.

Moreover, the Group fights against all forms of discrimination, forced and child labour. Prada believes that the risk of modern slavery, forced and child labour within its own organization is non-existent, while it considers the same risk to be very low along its industrial supply chain. The geographic location of the suppliers selected by the Group, as well as their profound knowledge in terms of duration and quality of the established partnerships, reduces the risk of conditions or pre-conditions such as to constitute

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circumstances of modern slavery, forced labour and human trafficking.

The Group's business partners are encouraged to go beyond the minimum regulatory requirements and foster dialogue among all parties involved to facilitate the implementation of and compliance with the standards in order to create positive work relationships. In the relationships with suppliers, social awareness is encouraged and regulatory knowledge and the adoption of environmental, social and quality certifications are promoted.

Prada's commitment is contained in the Sustainability Policy and realized in part by the promotion, distribution and underwriting of the Group's Code of Ethics, which is included, as required by company policies, within business agreements with all suppliers. Factories and external suppliers are also required to ensure that any third party that provides them with materials and/or labour for making the Group's products is provided with all the permits requested by law and complies with the Code of Ethics.

Partnership: IMLux

The bond developed with the series of "Shaping a Future" conferences, organized by the Prada Group from 2017 to 2020 (more information on pradagroup.com and in the Social Responsibility Report 2020 - chapter 5, paragraph 2), paved the way for further collaboration with the School of Management of Politecnico di Milano (MIP). In fact, since the 2019/2020 academic year, Prada has been a main sponsor of the International Master's in Luxury Management (IMLux) degree program together with the French champagne Group, Taittinger.

The post-graduate program is highly international as it welcomes students from all over the world, and concentrates on Italy and France - the most important countries in the world for high-end products - where its classes are conducted. Half the lessons are held at the NEOMA Business School in Reims, and half at the School of Management of Politecnico di Milano (MIP), allowing the students to access a double degree. The IMLux Master's degree is sponsored through continuous interaction with the professors and students of the Master's program and numerous projects carried out. The sharing of business strategies by key people of the Prada Group, involved in true "classroom" moments, provides inspiration to the students during the academic year, who are called upon to reprocess, in project work, very interesting and highly complex topics. During the sessions in which the projects are presented, while the Group illustrates its experience, the students are able to offer a concrete contribution with the perspective of young professionals and consumers.

In 2021, the Master's students addressed various topics, including:

Retail and Sales Management, focusing on the Central European market;
Digital connectivity technologies and possible applications to Prada products, with the presentation of project work dedicated to the exploration of RFID, NFC and QR-code technologies;
Diversity, Equity & Inclusion Strategies, with the presentation of project work dedicated to the exploration of the different strategic approaches used by multinational companies in Europe, the Middle East and the Far East.

With this commitment to learning, Prada underlines its interest in training and attracting talent, both of which are strategic elements essential for ensuring long-term growth.

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6 — FOR CULTURE

Highlights 2021

permanent venues between Milan and Venice

exhibitions and cultural projects

realized in 2021

art and photography

exhibitions in Milan

since 2015

online conferences on neuroscience

since 2020

film projects

since 2004

publications

since 1993

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Social changes, deep economic crises, difficulties experienced by the institutions and the new paradigms introduced by technological progress have caused an ever increasing number of companies to adopt a closer approach to develop greater sensitivity to the demands of civil society. According to this principle of shared value creation, the competitiveness of a company and

the well-being of the community in which it operates, and not only that, are strictly related.

The Prada Group's commitment to culture, the most distinctive pillar of its sustainability strategy, is the tool that the Group considers most natural and closest to its identity for extending the benefits of its activities to society.

The bond with art and culture is an integral part of the corporate identity and enables the Prada Group to understand and interpret changes in society and stimulate new ways to grow.

Fondazione Prada

The interests and the passions of Miuccia Prada and Patrizio Bertelli have inspired the Prada Group to support Fondazione Prada's activities in the fields of art and culture since 1993.

Fondazione Prada was created in Milan as a platform to conceive and develop art exhibitions along with architecture, cinema, philosophy, science and performing arts projects. Until 2010 it has presented twenty-four shows in Milan dedicated to key international artists and other activities in cinema, architecture, and philosophy in Italy and abroad. Since 2011, Fondazione has also been operating from its Venetian venue, Ca' Corner della Regina, an eighteenth-century building that has hosted nine exhibitions and an experimental platform dedicated to cinema.

The exhibition program of Fondazione Prada's permanent venue in Milan, inaugurated in 2015 and designed by the architecture firm OMA, included in 2021 a site-specific project created by a contemporary artist and a retrospective dedicated to

an artistic figure of the twentieth century. The project "Who the Bær," conceived by artist Simon Fujiwara, narrates the problematic search for the identity of the fictional character that gives the exhibition its title. Fujiwara's large installation revealed the paradox of the dual search for invention and authenticity in the culture we consume daily. The "Domenico Gnoli" retrospective, conceived by Germano Celant, reconstructed the artistic and biographical path of the Italian artist fifty years after his death. The exhibition traces his brief but intense career as a set designer, illustrator, and painter through a collection of more than one hundred paintings and as many drawings and a vast selection of documents.

The multifunctional spaces of the Deposito, inside the foundation's main venue in Milan, hosted "Riccardo Muti Italian Opera Academy" for the first time in December 2021. Audiences could participate in ten days of rehearsals and concerts focused on Giuseppe Verdi's Nabucco. Maestro Muti has embarked on a training program for five young conductors and five collaborating maestros under 35 worldwide. In 2021, two film festivals, "Multiple Canvases" and

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"Proof. Incorporated," were programmed at the Foundation's Cinema. Artists Simon Fujiwara, Peter Fischli, Goshka Macuga and Betye Saar selected films that marked their personal and intellectual formation for the first project. During the evening screenings, the moving walls of the Cinema were fully activated for the first time, creating an open-air screening room. "Proof. Incorporated" investigated the analogies and reciprocal influences between video journalism and film language, delving into the most recent evolution of news communication methods and the forms of hybridization typical of contemporary film narration.

In 2021, the Venice outpost hosted the exhibition "Stop Painting," curated by artist Peter Fischli. In a path that included over 110 works by more than 80 artists, the project explored the moments of rupture of painting in the art history of the last two centuries, its eternal return and the ability of this language to renew itself continuously. The second floor of Ca' Corner della Regina became the space for creating and presenting "AURA | SUL TOCCARE LE COSE", a choreographic project conceived by Virgilio Sieni and presented in collaboration with Fondazione Archivio Luigi Nono. The performance took place in November 2021 as part of the fourth edition of the Festival Luigi Nono alla Giudecca in various places in Venice. Osservatorio, the foundation's space dedicated to photography and opened in 2016, is located on the $5^{\text{th}}$ and $6^{\text{th}}$ floors of one of the central buildings of Galleria Vittorio Emanuele II in Milan. In 2021, the exhibition project "Sturm&Drang", born from the collaboration between Fondazione Prada and gta exhibitions, ETH Zurich, was presented. Curated by Luigi Alberto Cippini, Fredi Fischli and Niels Olsen, "Sturm&Drang" explored the applications, experiences and environments related to Computer-generated imagery (CGI) to reveal the complexity of computer modelling and analyze the current production of images. Prada, with the support of Fondazione Prada, presented a different version of the exhibition, titled "Sturm&Drang Preview Services", on a floor of Prada Aoyama Tokyo in Japan in spring 2021. A program of online lectures with artists, designers and creative experts in these technologies, published on Fondazione Prada's website, explored the themes of the exhibitions.

In 2021, the activities of "Human Brains," a global project of exhibitions, scientific debates, public

meetings and publishing activities dedicated to brain studies, was further developed. The project, which will continue through 2022, aims to attract public interest in neuroscience and create a forum to facilitate exchanges among scientists, philosophers, and scholars. Since September 2021, a program of seven online conversations involving international personalities and creating interaction with remote audiences has been initiated.

Finally, the projects in the historic Prada Rong Zhai residence in Shanghai, presented by Prada with the support of Fondazione Prada, continue with the exhibitions "China Cabinet" and "A Moon Wrapped in Brown Paper". The former was conceived by Theaster Gates, who exhibited his ceramic works, revealing the connections between the different dimensions of his career as a ceramist, visual artist, performer, professor, urban planner and social activist. For "China Cabinet," Gates devised a narrative in dialogue with the building's architecture, transforming it into a craft workshop. Nathalie Djurberg and Hans Berg's solo exhibition, "A Moon Wrapped in Brown Paper," brought together a selection of sculptures and videos made between 2000 and 2019 by the artist duo. An organic carpet connecting the rooms of Prada Rong Zhai and a labyrinth led visitors into a dreamlike universe populated by fairy-tale characters, animals, posthumans and strange creatures.

FOR CULTURE 2021
114

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— SEA BEYOND

In 2020, the Prada Group and UNESCO's Intergovernmental Oceanographic Commission (IOC) - the world's foremost authority on ocean science - launched SEA BEYOND, an educational program dedicated to the preservation of the sea and ocean literacy. The purpose of the project is to educate for a more responsible and conscious behavior towards the sea and its resources, and to highlight its fundamental role for the future of our Planet.

SEA BEYOND, supported by a percentage of the proceeds from the sales of the Prada Re-Nylon collection since June 2019, underscores the Prada Group's commitment towards sustainability, and more specifically on ocean preservation, in line with the United Nations 2030 Agenda and its 17 Sustainable Development Goals (SDGs).

In January 2021, aware of the value of the sea for our future and that of the Planet, the Prada Group decided to support the initiative of the United Nations Decade of Ocean Science for Sustainable Development, the "Ocean Decade". The Group is one of the first Italian signatories, confirming its commitment to the creation of an Ocean Generation through the SEA BEYOND project.

The first edition of the program, which allowed to train some 300 students in ten cities throughout the world - Berlin, Cape Town, Mexico City, Lisbon, London, Milan, New York, Paris, Shanghai and Venice - ended successfully in March 2021, despite the difficulties caused by the health emergency, which hit hard all social environments, including the learning one. The professors of the schools involved through the UNESCO network participated in webinars led by ocean literacy experts, during which they received guidance on how to develop an educational module dedicated to ocean preservation. At the end of the training, the students were invited by the Prada Group and UNESCO-IOC to create an ocean preservation awareness campaign. In March 2021, the winning campaign was presented during a digital event, previously selected by a prestigious international jury that included: Lorenzo Bertelli, Prada Group's Head of Corporate Social Responsibility; Vladimir Ryabinin, Executive Secretary of the Intergovernmental Oceanographic Commission of UNESCO and Deputy Director General of UNESCO; the Italian writer Alessandro Baricco; the aquanaut, oceanographic

explorer and environmentalist Fabien Cousteau; the environmental artist Anne de Carbuccia; the marine scientist and social entrepreneur Kerstin Forsberg; and the Italian freediver gold medalist Alessia Zecchini.

In June 2021, for World Oceans Day, the Prada Group and the Intergovernmental Oceanographic Commission of UNESCO announced the second edition of SEA BEYOND. The program has been enriched with learning activities for all ages, with the aim of engaging a higher number of people globally and locally:

a new educational module for secondary school students around the world, with the intention of extending the project to other countries. Even for this edition, a contest will be held to select the school that can best interpret one of the ten Ocean Decade Challenges, nominated by an international jury of "Sea Beyonders", experts who have dedicated their lives to the ocean and to education;
training activities for the Prada Group's 13,000 employees around the world, who will become more ocean literate and be encouraged to take on an active role in protecting the ocean. Engaging webinars as well as an app will be used to enable the employees to participate in a "sustainable challenge" on a global scale;
the Prada Group and UNESCO's Intergovernmental Oceanographic Commission will collaborate to found the "Kindergarten of the Lagoon" (Asilo della Laguna) in Venice. The kindergarten, established on the basis of outdoor education principles, will open in September 2022.

In October 2021, for the Pre-Cop26 - a preparatory event to the annual United Nations Climate Change Conference of the Parties (COP26) held in Glasgow in November 2021 - the Prada Group collaborated with UNESCO on the "Ocean&Climate Village" initiative at the Triennale Milano. A training pavilion designed for children and young people, from primary school to the University, was set up with interactive activities and workshops to raise awareness of the ocean literacy principles.

SZA BEYOND

UNESCO

Jardin de la Culture

UNESCO

Jardin de la Culture

2050 de l'Inspection touristique

PRADA RE-NYLON

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FOR CULTURE
2021

— “We are very proud of the success of SEA BEYOND, stemming from the passion and commitment that UNESCO’s Oceanographic Commission continues to dedicate every day to the promotion of a more responsible ocean. We are pleased to embark on a new phase of the project, which plans to address not only students from all over the world but also a wider audience, with the aim of involving local communities and all our employees.”

Lorenzo Bertelli
Prada Group’s Head of Corporate
Social Responsibility

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— Prada Mode

Within the cultural program undertaken by the Prada Group, Prada Mode is conceived as a touring private Club that offers to its members the access to meetings and cultural debates on contemporary issues. Imagined as a place that augments and extends significant global cultural gatherings at diverse locations worldwide, Prada Mode offers exclusive access to unique programs and content that complement the themes and subjects of the host event.

Launched for the first time in 2018 in Miami during Art Basel Miami Beach, the Prada Mode moved in 2019 in Hong Kong and London, and then, in 2020, to Paris and to the historic Prada Rong Zhai residence in Shanghai. The building was transformed for the

occasion by the director, producer and writer Jia Zhangke into a specially created design reflecting the Chinese word 'MIAN', inspired by his cinematic output.

For its sixth edition, Prada Mode Moscow took over the Levenson Mansion on December 2021. For the occasion, the artist Damien Hirst transformed the historic building with his installation, Pharmacy: inside he designed furniture, architectural details such as a huge molecular model in its window, light boxes, and a wallpaper design taken from a catalogue of prescription medicine. The event days were animated by conversations in the morning and in the afternoon with prominent personalities from the world of art and culture, followed by parties and performances with live music.

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Partnership: Fondazione Bonadonna

In 2018, the Prada Group announced its partnership with the Gianni Bonadonna Foundation as "Supporting Partner" for the therapeutic and scientific research project in the field of oncology conceived by Fondazione Bonadonna.

The purpose of this program is to give continuity to the work of Gianni Bonadonna, the great Italian oncologist, a leading figure in the international panorama of oncological medicine, who has innovated every aspect of research and therapies, allowing to reach enormous progress and concrete clinical successes in the treatment of neoplasia. His research and discoveries have inspired and influenced the approach to cancer therapy of entire generations of doctors in Italy and around the world.

The project involves the support of a multidisciplinary teams of doctors and researchers dedicated to studying and developing new treatments for cancer patients, and a fellowship program for young oncologists in partnership with universities across the world, hospitals and leading research centers, providing an effective way to expand the exchange of scientific ideas.

In 2021, it was announced that the fellowships, intended to finance a period of study abroad, are reserved for physicians enrolled in the last two years of graduate programs specializing in medical oncology or hematology, and for neo-specialists within two years of receiving their degree.

With the support of the Prada Group, Fondazione Gianni Bonadonna and Fondazione AIRC firmly believe that promoting the training of new generations of medical researchers in oncology in international centers of excellence is a key aspect of progress in cancer treatment, in line with Gianni Bonadonna's tradition of innovation and education. With this shared view, they are sponsoring this call for applications for study-abroad fellowships, so that a new generation of medical researchers will be optimally equipped for the study and treatment of cancer. For those candidates who win the fellowship, the study period is scheduled to start in 2022.

The Prada Group finally will contribute also through the commitment of its representatives to the development of the project by promoting the Fondazione Gianni Bonadonna initiatives and providing their expertise in communication to ensure the public is informed about the ideas, results and breakthroughs that will emerge over the years.

— “Education and culture are essential tools that help us not only to understand ourselves and the world we live in but also push us to explore what we do not know. I am happy that Prada can support a new generation of excellent researchers in their study and education path alongside the Gianni Bonadonna Foundation.”

Miuccia Prada

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7 — NOTES ON THE METHODOLOGY

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— Scope and Reporting Standard

This document is the Prada Group's ninth - fourth according to the GRI principles published in 2016 - Sustainability Report and contains a description of the main initiatives undertaken in the fiscal year 2021, i.e. from January 1, 2021, to December 31, 2021, and the performance trends for the three-year period 2019-2020-2021 where available; if data already disclosed in previous years have been changed, this has been indicated in the text, including the reasons for the restatements. Where environmental data were unavailable, conservative estimates were used that resulted in choosing assumptions associated with the least positive environmental performance for the Company.

Particularly significant initiatives and events of the fiscal year 2022 already known at the reporting date are also included.

The performance indicators were collected on an annual basis and the reporting cycle is set according to an annual frequency. The reporting boundary is the same as the information reported in the 2021 Annual Report, of Prada S.p.A. and its subsidiaries, with the exception of some data expressly indicated in the text. Prada S.p.A., together with its subsidiaries collectively the "Prada Group", is a joint-stock company with limited liability incorporated and domiciled in Italy with headquarters in Via Antonio Fogazzaro 28, 20135 Milan, whose share capital is 80%-owned by Prada Holding S.p.A., a company domiciled in Italy, while the remaining shares (20%) are listed on the Main Board of the Hong Kong Stock Exchange (HKSE).

In compliance with Standard GRI-101: Foundation, paragraph 3, this document has been prepared in line with "GRI Standards: Core Option". References to the Hong Kong Stock Exchange's ESG Reporting Guide (Main Board Listing Rules - Appendix 27) are listed in the Content Index²¹.

The attention given to topics related to the environment, to people and to the promotion of the culture have always distinguished the corporate culture. The Sustainability Report aims to represent the Group in view of these topics so that its stakeholders can evaluate the impacts of Prada's activities from an environmental, social and governance standpoint. This document was drawn up with the purpose of reporting both the successful aspects and the weaknesses of the Prada Group, with a view toward continuous improvement. The information and indicators included aim to provide a balanced portrayal of the Group's sustainability performance and initiatives.

The Prada Group involved all corporate functions to determine the contents of the 2021 Sustainability Report, the data and information are disclosed with the ultimate purpose of enabling stakeholders to compare and comprehend fully the information contained herein.

In this regard, at the beginning of 2019, the Group adopted a procedure for the preparation of the Sustainability Report ("Guidelines for the preparation of the annual Sustainability Report") approved by the Board of Directors, which indicates the principles to be followed (materiality, measurability, impartiality, coherence, consistency) and the responsibilities for drawing up the document.

21 - In this Report no reference is made to the following "Comply or Explain" provisions: KPI B1.2 (related to Employment), KPI B2.2 (related to Health and Safety), KPI B6.4 (related to Product Responsibility) and KPI B7.3 (related to Anti-corruption). The Prada Group is committed to extending the scope of its ESG reporting in compliance with the ESG Reporting Guide of the Hong Kong Stock Exchange.

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GHG Calculation Methodology and Emission Factors

The Company's GHG inventory (also referred as "Carbon footprint") has been drafted for 2019 and 2021, while for 2020 are disclosed data only related to Scope 1 and 2 emissions. The draft of Prada Group's GHG Inventory is aligned with the GHG Protocol.

The Group adopts an operational control approach to consolidate its GHG emissions. The only exclusion is related to Marchesi 1824 S.r.l. and its UK subsidiary, considering the low impact in terms of emissions, considering the size of the business and the fact that Marchesi is not characterized by energy-intensive or emission-intensive processes owning only pastry shops.

In addition, Luna Rossa Challenge S.r.l. was not included in the scope of the inventory as it was acquired only at the end of 2021.

The Group includes in its GHG Inventory the following categories of emissions:

Scope 1 emissions: that refers to Prada's direct GHG emissions, i.e. those that physically occur within its boundaries from owned or controlled sources;
Scope 2 emissions: that refers to Prada's emissions associated with the generation of electricity, heating/cooling, or steam purchased for own consumption. Emissions related to purchased electricity are calculated with two different approaches:
Location-based: that reflects the average emission intensity of national grids, considering both renewable and non-renewable productions, the GHG emissions are calculated using an average emission factor that refers to the national electricity mix: the higher the share of renewable energies used by a specific country the lower the related emission factor;
Market-based: that considers the share of certified electricity purchased from renewable sources. To be considered as renewable the electricity purchased should be covered by contractual instruments such as Guarantees of Origin (GoOs). The part of electricity purchased covered by GoOs is considered as zero emissions, while the remaining part is multiplied by a factor called residual mix, whose take into consideration emissions intensity of national grids considering only non-renewable production.
Scope 3 emissions: that refers to Prada's indirect GHG emissions that are a consequence of the Company's activities, but which derive from sources not owned or controlled by Prada.

In the table below are summarized all categories and sources of GHG emissions of Prada:

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Operational Boundaries

Scope	Category and Sources
SCOPE 1
(Direct GHG emissions)	STATIONARY COMBUSTION: combustion of fuels in stationary equipment (e.g. natural gas in heating systems) related to assets owned or controlled by the Group (Prada's headquarters, representative offices, manufacturing sites, boutiques and outlets^{22}).

MOBILE COMBUSTION: Company's vehicle fleet fuel combustion.

FUGITIVE EMISSIONS: leakages of refrigerant gases (F-gas) from air-conditioning and refrigeration units related to assets owned or controlled by the Group (Prada's headquarters, representative offices, manufacturing sites, boutiques and outlets). |
| SCOPE 2
(Energy indirect GHG emissions) | STATIONARY COMBUSTION: electricity purchased from the national grid related to assets owned or controlled by the Group (Prada's headquarters, representative offices, manufacturing sites, boutiques and outlets). |
| SCOPE 3
(Other indirect GHG emissions) | PURCHASED GOODS^{23} AND SERVICES (cat.1):
• Raw materials and accessories used for production.
• Scope 1 and 2 GHG emissions of suppliers of finished and semi-finished products related to the production outsourced by the Company: combustion of fuels in stationary equipment and electricity purchased from the national grid.
• Packaging.

FUEL AND ENERGY RELATED ACTIVITIES (cat. 3):
• Upstream emissions of purchased fuels.
• Upstream emissions of purchased electricity.
• Transmission and distribution (T&D) losses related to purchased electricity.

UPSTREAM TRANSPORTATION AND DISTRIBUTION (cat. 4):
• Transportation of materials purchased by the Company.
• Transportation of raw materials/semi-finished products to the network of suppliers of finished and semi-finished products and back.
• Distribution of final products (when costs are paid by the Company).

WASTE GENERATED IN OPERATIONS (cat. 5): disposal/recycling of waste generated by the manufacturing sites^{24}.

BUSINESS TRAVEL (cat.6): transportation of employees for business-related activities (transports included: plane, train, private car and rented car^{25}).

EMPLOYEE COMMUTING (cat.7): transportation of Group's employees for daily commuting from home to the Prada Group's facility in which they work.

UPSTREAM LEASED ASSETS (cat. 8): emissions associated with activities that take place in directly operated stores upon which Prada does not have direct operational control of the asset itself and for which it is not responsible for the purchase of energy (department stores and outlets). In particular, in this category GHG emissions associated with electricity consumption and F-gas losses within department stores are included.

INVESTMENTS (cat. 15): emissions relating to the energy consumption of companies in which the Prada Group has a minority interest, allocated on a proportional basis considering the % interest held. |

22 - Only outlets where the Group is responsible for paying energy bills are considered.
23 - Emissions related to finished products have not been included as they represent a minor part of the Prada Group's total procurement.
24 - Waste generated by retail and offices is not included in calculation considering that is negligible.
25 - Business travels done with vehicles part of Prada's fleet are not included in this category considering that are already considered in Scope 1 emissions.

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Displayed in the table below the details related to emission factors used for each GHG source:

GHG Emissions Scope 1

Source	Activity Data	Emission Factor (2019-2020-2021)	GWP-100
Natural gas purchased for heating and other purposes	Volume [m3]	DEFRA (Department of Environment, Food & Rural Affairs), Conversion factors - Full set, 2019, 2020, 2021	CO2equivalent emissions were considered
Diesel, Petrol, LPG, Aviation turbine fuel purchased for vehicle fleet	litres	DEFRA (Department of Environment, Food & Rural Affairs), Conversion factors - Full set, 2019, 2020, 2021	CO2equivalent emissions were considered
Refrigerant Gases	Refrigerant gas refilled [kg]	-	Global Warming Potentials (GWPs) are taken from IPCC Fourth Assessment Report (AR5)
GHG Emissions Scope 2
Source	Activity Data	Emission Factor (2019-2020-2021)	GWP-100
Electricity purchased from each country (for location-based method)	Electricity purchased [kWh]	Terna, International comparisons, data 2017, 2018, 2019	Only CO2 emissions were considered
Electricity purchased from each country not covered by GoOs certificates (for market-based approach)	Electricity purchased [kWh]	AIB - European Residual Mixes, 2018, 2019, 2020 For USA: Green-e Energy Residual Mix emission factors 2018 and 2020	Only CO2 emissions were considered
GHG Emissions Scope 3
Source	Activity Data	Emission Factor (2019-2021)	GWP-100
Raw materials purchased (Cat. 1)	Kg of raw materials, accessories, packaging purchased	Ecoinvent, v.3.7.1 DEFRA (Department of Environment, Food & Rural Affairs), Conversion factors - Full set, 2019, 2021	CO2equivalent emissions were considered
Leather purchased (Cat. 1)	m3of raw leather purchased	Leather Carbon Footprint-Review of the European Standard EN 16887:2017 United Nations - Industrial Development Organization	CO2equivalent emissions were considered

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GHG Emissions Scope 3

Source	Activity Data	Emission Factor (2019-2021)	GWP-100
Natural gas purchased by suppliers of finished and semi-finished products for heating and other purposes	Volume [m3]	DEFRA (Department of Environment, Food & Rural Affairs), Conversion factors - Full set, 2019, 2021	CO2 equivalent emissions were considered
Diesel and LPG purchased by suppliers of finished and semi-finished products	litres	DEFRA (Department of Environment, Food & Rural Affairs), Conversion factors - Full set, 2019, 2021	CO2 equivalent emissions were considered
Electricity purchased by suppliers of finished and semi-finished products from each country not covered by GoOs certificates	Electricity purchased [kWh]	AIB - European Residual Mixes, 2018, 2019, 2020	Only CO2 emissions were considered
Fuel and energy related activities (Cat. 3)	Fuel and electricity purchased (m3, l or kWh)	DEFRA (Department of Environment, Food & Rural Affairs), Conversion factors - Full set, 2019, 2021	CO2 equivalent emissions were considered
Upstream logistics and distribution (Cat. 4)	km covered by air, truck or ship multiplied by total shipped weight (ton*km)	DEFRA (Department of Environment, Food & Rural Affairs), Conversion factors - Full set, 2019, 2021	CO2 equivalent emissions were considered
Waste disposed or recovered (Cat. 5)	kg of waste disposed or recovered	Ecoinvent, v.3.7.1 DEFRA (Department of Environment, Food & Rural Affairs), Conversion factors - Full set, 2019, 2021	CO2 equivalent emissions were considered
Business travel by air and train (Cat. 6)	km travelled by each passenger	DEFRA (Department of Environment, Food & Rural Affairs), Conversion factors - Full set, 2019, 2021	CO2 equivalent emissions were considered
Business travel by car (Cat. 6)	km	DEFRA (Department of Environment, Food & Rural Affairs), Conversion factors - Full set, 2019, 2021	CO2 equivalent emissions were considered

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GHG Emissions Scope 3

Source	Activity Data	Emission Factor (2019-2021)	GWP-100
Employees commuting (Cat. 7)	km travelled by each passenger by car, bus, rail	DEFRA (Department of Environment, Food & Rural Affairs), Conversion factors - Full set, 2019, 2021	CO_{2} equivalent emissions were considered
Electricity purchased by suppliers managing dept. store from each country not covered by GoOs certificates (Cat.8)	Electricity purchased [kWh] - market-based method	AIB - European Residual Mixes, 2018, 2019, 2020	Only CO_{2} was considered
Refrigerant gases used in dept.store (Cat.8)	Refrigerant gas refilled [kg]	-	Global Warming Potentials (GWPs) are taken from IPCC Fourth Assessment Report (AR5)
Electricity purchased by companies in which the Prada Group has a minority interest (Cat. 15)	Electricity purchased [kWh] - market-based method	AIB - European Residual Mixes, 2018, 2019, 2020	Only CO_{2} was considered
Natural gas purchased from companies in which the Prada Group has a minority interest (Cat. 15)	Volume [m^{3}]	DEFRA (Department of Environment, Food & Rural Affairs), Conversion factors - Full set, 2019, 2021	CO_{2} equivalent emissions were considered
Diesel acquired by companies in which the Prada Group has a minority interest (Cat. 15)	litres	DEFRA (Department of Environment, Food & Rural Affairs), Conversion factors - Full set, 2019, 2021	CO_{2} equivalent emissions were considered

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Focus on Material Aspects

Materiality Analysis

According to the GRI Standards and HKSE ESG Reporting Guide organizations that draw up sustainability reports are required to define the content on which to set up reporting according to the principle of materiality. As defined by GRI materiality is the threshold at which aspects become sufficiently important that they should be reported.

In fact, the identification of material issues for Prada is of fundamental importance representing the key contents that must be addressed within the Report and, in general, in the context of sustainability communication. As already described in chapter 2, paragraph "Stakeholders and materiality analysis", during 2021 the Prada Group updated its materiality analysis by carrying out two main phases:

Identifying sustainability issues: determining which issues are key to understanding Prada's business and strategic context and to describing its main environmental, economic and social impacts;
Ranking the potentially sustainability issues previously identified: putting these aspects in order based on their relevance for achieving business goals (internal significance) and for meeting stakeholders' expectations (external significance).

A comprehensive list of the potentially relevant sustainability topics for the Prada Group was identified by the following steps:

Mapping the key stakeholders and analyzing their main concerns;
Performing a benchmark analysis against Italian and international fashion and luxury firms, producing a list of the most common sustainability topics in the industry;
Performing a media analysis relating to the Group, which enabled to present the perception of public opinion and other stakeholders;
Analyzing the main sustainability documents relating to the Textile and Clothing sector (such as the Global Reporting Initiative - GRI, RobecoSam, SASB) to identify industry trends;
Analyzing the main sustainability trends at a global level, identified by major international organizations such as the Dow Jones Sustainability Index, the World Economic Forum and the GRI.

Once the sustainability potentially relevant topics have been defined, they were ranked based on their relevance for both Prada (internal significance) and its stakeholders (external significance). The relevance for the stakeholders was identified through a "desk" analysis and by submitting a questionnaire to the main functions of Prada Group to which was asked to rank the sustainability topics on which they receive pressures from stakeholders. On the other hand, the relevance for Prada was discussed and assessed through an internal workshop, which involved the top management and key members of the Board of Directors.

The material aspects for the Prada Group were then defined as the intersection of significance for the Company and significance for its stakeholders. The materiality analysis was later formally approved by the Board of Directors.

index

三

Correlation Between Material Topics and GRI Standards

Material topic	GRI Standard Topic	HKSE Subject Areas	Topics Boundaries
			Within the Organization	Outside the Organization
Climate Action	302 - Energy (2016)	Aspect A1: Emissions Aspect A2: Use of Resources	Group	Suppliers of finished and semi-finished products and departments stores
	305 - Emissions (2016)	Aspect A4: Climate Change	Group	Suppliers of finished and semi-finished products and departments stores
Procurement of low environmental impact raw materials	301 - Materials (2016)	Aspect A2: Use of Resources Aspect A3: The Environment and Natural Resources	Group	-
Circular Thinking	301 - Materials (2016)	Aspect A2: Use of Resources	Group	-
Responsible waste management	306 - Waste (2020)	Aspect A1: Emissions	Industrial sites	-
Sustainable water management	303 - Water and effluents (2018)	Aspect A2: Use of Resources	Industrial sites	-
Improve the environmental and social standard along the supply chain	414 - Supplier social assessment (2016)	Aspect B5: Supply Chain Management	Group	Suppliers
	408 - Child Labour	Aspect B4: Labour Standards	Group	Suppliers
	409 - Forced Labour	Aspect B4: Labour Standards	Group	Suppliers

index

三

Correlation Between Material Topics and GRI Standards

Material topic	GRI Standard Topic	HKSE Subject Areas	Topics Boundaries
			Within the Organization	Outside the Organization
Know-how preservation and skills development	404 - Training and Education (2016)	Aspect B3: Development and Training	Group	-
Occupational Health and Safety	403 - Occupational Health and Safety (2018)	Aspect B2: Health and Safety	Group	Contractors
Respect of human and workers' rights	406 - Non-discrimination (2016)	Aspect B1: Employment	Group	-
	412 - Human Rights Assessment (2016)	Aspect B4: Labour Standards	Group	-
Champion diversity and equal opportunities	405 - Diversity and Equal opportunities (2016)	Aspect B1: Employment	Group	-
Customer experience	416 - Customer Health and Safety (2016)	Aspect B6: Product Responsibility	Group	-
	417 - Marketing and Labeling (2016)	Aspect B6: Product Responsibility	Group	-
	418 - Customer privacy	Aspect B6: Product Responsibility	Group	-
Business strategy and economic performance	201 - Economic performance (2016)	-	Group	-

index

三

Correlation Between Material Topics and GRI Standards

Material topic	GRI Standard Topic	HKSE Subject Areas	Topics Boundaries
			Within the Organization	Outside the Organization
Integrity, transparency and cooperation	205 - Anti-corruption (2016)	Aspect B7: Anti-corruption	Group	-
	419 - Socioeconomic Compliance (2016)	Aspect B1: Employment Aspect B2: Health and Safety Aspect B6: Product Responsibility	Group	-
	307 - Environmental compliance (2016)	Aspect A1: Emissions	Group	-
Product creativity and excellence	Not GRI	-	Group	Suppliers of finished and semi-finished products
Protection and enhancement of the artistic, cultural, and natural heritage	Not GRI	Aspect B8: Community Investment	Group	Communities

8 — GRI INDEX

index

General standard disclosure

Indicator	References to HKEx ESG Reporting Guide	Description	References
102-1		Name of the organization	Pag. 123
102-2		Activities, brands, products, and services	Pag. 9-22
102-3		Location of headquarters	Pag. 123
102-4		Location of operations	Pag. 10; 21-22
102-5		Ownership and legal form	Pag. 123
102-6		Markets Served	Pag. 10; 22
102-7		Scale of the organization	Pag. 9-10; 18-22; 34-36
102-8	KPI B1.1	Information on employees and other workers	Pag. 91-95
102-9	KPI B5.1
KPI B5.2
KPI B5.3	Supply chain	Pag. 20-21; 57-63
102-10		Significant changes to the organization and its supply chain	Pag. 34-36; 123
102-11		Precautionary Principle or approach	Pag. 30-32; 48-54; 123
102-12		External initiatives	Pag. 30; 33; 65; 67; 71; 74; 81; 90; 92; 98-100; 111; 116-118; 121; 124
102-13		Membership of associations	The Group's main partnerships are with: Camera Nazionale della Moda Italiana, Assolombarda, Assonime, Confindustria Toscana and The Fashion Pact.
102-14		Statement from senior decision - maker	Pag. 6-8

index

General standard disclosure

Indicator	Description	References	Notes
102-16	Values, principles, standards and norms of behavior	Pag. 4-5; 30-33; 38; 61-67; 69; 92; 96-100; 108-111; 113
102-18	Governance structure	Pag. 24-30
102-40	List of stakeholder groups	Pag. 44
102-41	Collective bargaining agreements	Pag. 61; 105-108
102-42	Identifying and selecting stakeholders	Pag. 44; 129
102-43	Approach to stakeholder engagement	Pag. 44; 129
102-44	Key topics and concerns raised	Pag. 45-48; 129-133
102-45	Entities included in the consolidated financial statements	Pag. 123
102-46	Defining report content and topic Boundaries	Pag. 45-48; 123; 131-133
102-47	List of material topics	Pag. 45-48
102-48	Restatements of information	Pag. 123
102-49	Changes in reporting	Pag. 123
102-50	Reporting period	Pag. 123
102-51	Date of the most recent report		The 2020 Social Responsibility Report was published in May 2021.
102-52	Reporting cycle	Pag. 123
102-53	Contact point for questions regarding the report	Pag. 150

index
三

General standard disclosure

Indicator	Description	References	Notes
102-54	Claims of reporting in accordance with the GRI Standards	Pag. 123
102-55	GRI content index	Pag. 134-147
102-56	External assurance		This Report is not subject to external assurance.

137

index

Material topics - Specific standard disclosure

Indicator	References to HKEx ESG Reporting Guide	Description	References
Economic performance indicators
GRI 201: Economic Performance - 2016
103-1	G.D. B8	Explanation of the material topic and its Boundary	Pag. 45-48; 129-133
103-2	G.D. B8	The management approach and its components	Pag. 34-36
103-3	G.D. B8	Evaluation of the management approach	Pag. 34-36
201-1	KPI B8.2	Direct economic value generated and distributed	Pag. 36
GRI 205: Anti-corruption - 2016
103-1	G.D. B7	Explanation of the material topic and its Boundary	Pag. 45-48; 129-133
103-2	G.D. B7	The management approach and its components	Pag. 30-32
103-3	G.D. B7	Evaluation of the management approach	Pag. 30-32
205-3	KPI B7.1
KPI B7.2	Confirmed incidents of corruption and actions taken	Pag. 32

index

Material topics - Specific standard disclosure

Indicator	References to HKEx ESG Reporting Guide	Description	References
Environmental performance indicators
GRI 301: Materials - 2016
103-1	G.D. A2	Explanation of the material topic and its Boundary	Pag. 45-48; 129-133
103-2	G.D. A2	The management approach and its components	Pag. 20; 58-61; 80-81; 83-88
103-3	G.D. A2	Evaluation of the management approach	Pag. 20; 58-61; 80-81; 83-88
301-1	KPI A2.5
KPI A3.1	Materials used by weight or volume	Pag. 80
GRI 302: Energy - 2016
103-1	G.D. A2	Explanation of the material topic and its Boundary	Pag. 45-48; 129-133
103-2	G.D. A2	The management approach and its components	Pag. 69-77
103-3	G.D. A2	Evaluation of the management approach	Pag. 69-77
302-1	KPI A2.1	Energy consumption within the organization	Pag. 69-77
302-4	KPI A2.3	Reduction of energy consumption	Pag. 69-77

index

Material topics - Specific standard disclosure

Indicator	References to HKEx ESG Reporting Guide	Description	References
GRI 303: Water and Effluents - 2018
103-1	G.D. A2	Explanation of the material topic and its Boundary	Pag. 45-48; 129-133
103-2	G.D. A2	The management approach and its components	Pag. 78
103-3	G.D. A2	Evaluation of the management approach	Pag. 78
303-1		Interactions with water as a shared resource	Pag. 78
303-2		Management of water discharge-related impacts	Pag. 78
303-3	KPI A2.2
KPI A2.4	Water withdrawal	Pag. 78
GRI 305: Emissions - 2016
103-1	G.D. A1
G.D. A4	Explanation of the material topic and its Boundary	Pag. 45-48; 129-133
103-2	G.D. A1
G.D. A4	The management approach and its components	Pag. 69-77
103-3	G.D. A1
G.D. A4	Evaluation of the management approach	Pag. 69-77
305-1	KPI A1.1
KPI A1.2	Direct (Scope 1)
GHG emissions	Pag. 76-77
305-2	KPI A1.1
KPI A1.2	Energy indirect (Scope 2)
GHG emissions	Pag. 76-77
305-3	KPI A1.1	Other indirect (Scope 3)
GHG emissions	Pag. 77
305-5	KPI A1.5
KPI A4.1	Reduction of
GHG emissions	Pag. 69-77

index

Material topics - Specific standard disclosure

Indicator	References to HKEx ESG Reporting Guide	Description	References	Notes
GRI 306: Waste - 2020
103-1	G.D. A1
G.D. A3	Explanation of the material topic and its Boundary	Pag. 45-48; 129-133
103-2	G.D. A1
G.D. A3	The management approach and its components	Pag. 81-83
103-3	G.D. A1
G.D. A3	Evaluation of the management approach	Pag. 81-83
306-1	KPI A3.1	Waste generation and significant waste-related impacts	Pag. 81-83
306-2	KPI A1.6
KPI A3.1	Management of significant waste-related impacts	Pag. 81-83
306-3	KPI A1.3
KPI A1.4	Waste generated	Pag. 81-83
GRI 307: Environmental compliance - 2016
103-1	G.D. A1	Explanation of the material topic and its Boundary	Pag. 45-48; 129-133
103-2	G.D. A1	The management approach and its components	Pag. 88
103-3	G.D. A1	Evaluation of the management approach	Pag. 88
307-1	G.D. A1	Non-compliance with environmental laws and regulations		There were no significant cases of environmental non-compliance during the last three years (2019-2021).

index

Material topics - Specific standard disclosure

Indicator	References to HKEx ESG Reporting Guide	Description	References
Social performance indicators
GRI 403: Occupational health and safety - 2016
103-1	G.D. B2	Explanation of the material topic and its Boundary	Pag. 45-48; 129-133
103-2	G.D. B2	The management approach and its components	Pag. 108-111
103-3	G.D. B2	Evaluation of the management approach	Pag. 108-111
403-1	G.D. B2
KPI B2.3	Workers representation in formal joint management-worker health and safety committees	Pag. 108-111
403-2	G.D. B2	Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities	Pag. 108-111
403-3	KPI B2.3	Occupational health services	Pag. 108-111
403-4		Worker participation, consultation, and communication on occupational health and safety	Pag. 108-111
403-5	KPI B2.3	Worker training on occupational health and safety	Pag. 108-111
403-6		Promotion of worker health	Pag. 108-111
403-7	KPI B2.3	Prevention and mitigation of occupational health and safety impacts directly linked by business relationships	Pag. 108-111
403-9	KPI B2.1	Work-related injuries	Pag. 108-111

index

Material topics - Specific standard disclosure

Indicator	References to HKEx ESG Reporting Guide	Description	References	Notes
GRI 404: Training and education - 2016
103-1	G.D. B3	Explanation of the material topic and its Boundary	Pag. 45-48; 129-133
103-2	G.D. B3	The management approach and its components	Pag. 98-100; 102-105; 110; 116-118
103-3	G.D. B3	Evaluation of the management approach	Pag. 98-100; 102-105; 110; 116-118
404-1	KPI B3.1
KPI B3.2	Average hours of training per year per employee	Pag. 105
GRI 405: Diversity and equal opportunities - 2016
103-1	G.D. B1	Explanation of the material topic and its Boundary	Pag. 45-48; 129-133
103-2	G.D. B1	The management approach and its components	Pag. 25-30; 91; 94-101
103-3	G.D. B1	Evaluation of the management approach	Pag. 25-30; 91; 94-101
405-1	KPI B1.1	Diversity of governance bodies and employees	Pag. 25-30; 91; 94-98
405-2	G.D. B1	Ratio of basic salary and remuneration of women to men	Pag. 98
GRI 406: Non-discrimination - 2016
103-1	G.D. B1	Explanation of the material topic and its Boundary	Pag. 45-48; 129-133
103-2	G.D. B1	The management approach and its components	Pag. 96-100; 108-111
103-3	G.D. B1	Evaluation of the management approach	Pag. 96-100; 108-111
406-1	G.D. B1	Incidents of discrimination and corrective actions taken		There were no significant cases of discrimination during the last three years (2019-2021) although considered some cases in the Group's North American subsidiary.

index

Material topics - Specific standard disclosure

Indicator	References to HKEx ESG Reporting Guide	Description	References
GRI 408: Child Labour - 2016
103-1	G.D. B4	Explanation of the material topic and its Boundary	Pag. 45-48; 129-133
103-2	G.D. B4	The management approach and its components	Pag. 108-111
103-3	G.D. B4	Evaluation of the management approach	Pag. 108-111
408-1	KPI B4.1
KPI B4.2	Operations and suppliers at significant risk for incidents of child labour	Pag. 108-111
GRI 409: Forced or Compulsory Labour - 2016
103-1	G.D. B4	Explanation of the material topic and its Boundary	Pag. 45-48; 129-133
103-2	G.D. B4	The management approach and its components	Pag. 108-111
103-3	G.D. B4	Evaluation of the management approach	Pag. 108-111
409-1	KPI B4.1
KPI B4.2	Operations and suppliers at significant risk for incidents of forced or compulsory labour	Pag. 108-111
GRI 412: Human rights assessment - 2016
103-1	G.D. B4	Explanation of the material topic and its Boundary	Pag. 45-48; 129-133
103-2	G.D. B4	The management approach and its components	Pag. 24-30; 30-32; 61-63; 92; 108-111
103-3	G.D. B4	Evaluation of the management approach	Pag. 24-30; 30-32; 61-63; 92; 108-111
412-1	G.D. B4	Operations that have been subject to human rights reviews or impact assessments	Pag. 61-63; 108-111

index

Material topics - Specific standard disclosure

Indicator	References to HKEx ESG Reporting Guide	Description	References
GRI 414: Suppliers social assessment - 2016
103-1	G.D. B5	Explanation of the material topic and its Boundary	Pag. 45-48; 129-133
103-2	G.D. B5	The management approach and its components	Pag. 58-63
103-3	G.D. B5	Evaluation of the management approach	Pag. 58-63
414-2	KPI B5.2
KPI B5.3	Negative social impacts in the supply chain and actions taken	Pag. 61-63
GRI 416: Customer health and safety - 2016
103-1	G.D. B6	Explanation of the material topic and its Boundary	Pag. 45-48; 129-133
103-2	G.D. B6	The management approach and its components	Pag. 67
103-3	G.D. B6	Evaluation of the management approach	Pag. 67
416-2	G.D. B6
KPI B6.1
KPI B6.2	Incidents of non-compliance concerning the health and safety impacts of products and services	Pag. 67
GRI 417: Marketing and labeling - 2016
103-1	G.D. B6	Explanation of the material topic and its Boundary	Pag. 45-48; 129-133
103-2	G.D. B6	The management approach and its components	Pag. 67
103-3	G.D. B6	Evaluation of the management approach	Pag. 67
417-2	G.D. B6
KPI B6.3	Incidents of non-compliance concerning product and service information and labeling	Pag. 67

index

Material topics - Specific standard disclosure

Indicator	References to HKEx ESG Reporting Guide	Description	References
GRI 418: Customer Privacy - 2016
103-1	G.D. B6	Explanation of the material topic and its Boundary	Pag. 45-48; 129-133
103-2	G.D. B6	The management approach and its components	Pag. 22; 32
103-3	G.D. B6	Evaluation of the management approach	Pag. 22; 32
418-1	KPI B6.2
KPI B6.5	Substantiated complaints concerning breaches of customer privacy and losses of customer data		During the last three years (2019-2021), the Prada Group detected no substantiated complaints regarding breaches of customer privacy from regulatory bodies or outside parties, nor identify any thefts or losses of customer data.
GRI 419: Socioeconomic compliance - 2016
103-1		Explanation of the material topic and its Boundary	Pag. 45-48; 129-133
103-2		The management approach and its components	Pag. 30-32; 67
103-3		Evaluation of the management approach	Pag. 30-32; 67
419-1	G.D. B1
G.D. B2
G.D. B4
G.D. B6
G.D. B7	Non-compliance with laws and regulations in the social and economic area	Pag. 32	There were no significant cases of non-compliance with laws and regulations in the social and economic area during the last three years (2019-2021).

index

Additional Non-Material Topics Disclosed - Specific standard disclosure

Indicator	References to HKEx ESG Reporting Guide	Description	References
Economic Performance Indicators
GRI 204: Procurement Practices - 2016
103-1		Explanation of the material topic and its Boundary	Pag. 45-48; 129-133
103-2		The management approach and its components	Pag. 20; 58-61; 80-81
103-3		Evaluation of the management approach	Pag. 20; 58-61; 80-81
204-1	KPI B5.1	Proportion of spending on local suppliers	Pag. 58-61; 80-81
Social Performance Indicators
GRI 401: Employment - 2016
103-1	G.D. B1	Explanation of the material topic and its Boundary	Pag. 45-48; 129-133
103-2	G.D. B1	The management approach and its components	Pag. 91-100; 105-108
103-3	G.D. B1	Evaluation of the management approach	Pag. 91-100; 105-108
401-2		Benefits provided to full-time employees that are not provided to temporary or part-time employees	Pag. 95

index

Additional Non-Material Topics Disclosed - Specific standard disclosure

Indicator	References to HKEx ESG Reporting Guide	Description	References
GRI 413: Local communities - 2016
103-1	G.D. B8	Explanation of the material topic and its Boundary	Pag. 45-48; 129-133
103-2	G.D. B8	The management approach and its components	Pag. 9; 36; 58-61; 88-89; 98-100; 112-121
103-3	G.D. B8	Evaluation of the management approach	Pag. 9; 36; 58-61; 88-89; 98-100; 112-121
413-1	KPI B8.1
KPI B8.2	Operations with local community engagement, impact assessment and development programs	Pag. 58-61; 98-100; 102-104; 112-121

index

Photo Credits

Pag. 1	Alessandro Ciampi	Pag. 62	Agostino Osio
Pag. 11	David Sims (Prada)	Pag. 64	Courtesy Car Shoe
Pag. 11	Tyrone Lebon (Miu Miu)	Pag. 65	Jack Davison
Pag. 11	Jack Davison (Church's)	Pag. 66	David Sims (Prada)
Pag. 11	Simone Rivi (Car Shoe)	Pag. 66	Tyrone Lebon (Miu Miu)
Pag. 11	Courtesy Marchesi 1824	Pag. 68	Agostino Osio
Pag. 11	Luna Rossa	Studio Borlenghi	Pag. 73
Pag. 13	Attilio Maranzano. Courtesy	Pag. 75	Alessandro Ciampi
	Fondazione Prada	Pag. 79	Agostino Osio
Pag. 13	Luna Rossa	Studio Borlenghi	Pag. 85
Pag. 14	Courtesy Miu Miu	Pag. 89	Alessandro Ciampi
Pag. 15	Agostino Osio	Pag. 91	Agostino Osio
Pag. 16	Agostino Osio	Pag. 93	Agostino Osio
Pag. 16	Brigitte Lacombe; Willy Vanderperre	Pag. 97	Agostino Osio
Pag. 17	Luna Rossa	Studio Borlenghi	Pag. 99
Pag. 18	Attilio Capra	Pag. 101	Koury Angelo; Sara Pooley; Stu Rosner
Pag. 19	Brigitte Lacombe	Pag. 107	Agostino Osio
Pag. 24	Agostino Osio	Pag. 109	Attilio Capra
Pag. 31	Gabriele Croppi	Pag. 112	Bas Princen. Courtesy
Pag. 35	Francesco Castagna		Fondazione Prada
Pag. 37	Alessandro Ciampi	Pag. 115	Agostino Osio
Pag. 38	Gabriele Croppi	Pag. 122	Courtesy Marchesi 1824
Pag. 39	Alessandro Ciampi	Pag. 130	2X4
Pag. 39	Ugo dalla Porta	Pag. 134	Bas Princen - Courtesy
Pag. 39	Credits National Geographic		Fondazione Prada
Pag. 40	Gabriele Croppi
Pag. 43	Courtesy Studio Canali	Pag. 149	Bas Princen - Courtesy
Pag. 46	Gabriele Croppi		Fondazione Prada
Pag. 55	Agostino Osio
Pag. 57	Alessandro Ciampi	Other pictures: Courtesy Prada

Additional information
on this Sustainability Report
may be requested to:

Prada S.p.A.
Via Antonio Fogazzaro, 28
20135 Milan
Italy
e-mail: [email protected]

AI assistant

PRADA S.p.A. — Environmental & Social Information 2022

50262_rns_2022-05-13_2ee32538-f27c-455b-ae03-d571f86803f7.pdf

I PRA D M P A C T

MOVING FOR WARD WITH PURPOSE

Prada Group Purpose

Be DRIVERS OF CHANGE

— Letter to Stakeholders

Message from the Prada Group's Head of Corporate Social Responsibility

1.— PRADA GROUP

History

1983

1988

1993

1997

1999

2001

2003

2006

2015

2016

2018

2019

2020

— Value Creation

Creativity and Innovation

Raw Material Procurement and Industrial Production

Prada Group's industrial sites

Distribution

Customer Centricity and Digital Acceleration

Corporate Governance Model

Board of Directors

Remuneration Committee

Sustainability Committee

Board of Statutory Auditors

Supervisory Body

— Risk Management

Code of Ethics

Tax Strategy and Compliance

2021 Highlights

GRI-201 Disclosure

Direct Economic Value Generated and Distributed

2 — SUSTAINABLE DEVELOPMENT

Sustainability Journey

2020

2021

Sustainability Policy

Sustainability Strategy

with PARTNERS

— Stakeholders and Materiality Analysis

Prada Group's Stakeholders

Materiality Analysis

Material Topics

Material Topics

ESG Risk Assessment

Sustainable Finance

3 — RESPONSIBLE MANAGEMENT

Internal Production (%)

Raw Material

Semi-manufacturing

— Trademark Protection

Product Responsibility

4 — FOR PLANET

Climate Strategy

Calculation of GHG Inventory 2019 - Baseline

GHG Inventory Prada Group

GHG Emissions Reduction Targets and Roadmap

Prada Group's Climate strategy

SBTs - 29% GHG emissions Scope 1 and 2

SBTs - 42% GHG emissions Scope 3

Electrification of industrial sites heating systems

Green company car fleet

% of green car of the company fleet

LEED Gold or Platinum certified stores

Electricity from renewable source

Electricity from owned photovoltaic systems

2021 Energy Consumption and Scope 1 and 2 Emissions

2021 Scope 3 Emissions

Scope 3 emissions (t CO₂e)

Responsible use of Natural Resources

PRADA S.p.A. Environmental & Social Information 2022