Leather for upholstery, Footwear and leather goods Environmental Product Declaration ENVIRONMENTAL PRODUCT DECLARATION

Registration Number S-P-00344

Registration date 2012-04-04

Valid until 2018-12-10

Reference year of Data 2014

Geographical application area Europe, North America, Asia

Product Category Rules FINISHED BOVINE LEATHER 2011:13, VERSION 2.0 DATED 2015-06-11” del THE INTERNATIONAL EPD®SYSTEM

Classification Product Group Other leather, of bovine or equine animals. UN CPC 2912

Revision Date July 31, 2015 rev2

2 | EPD DANI S.p.A.

Company information Dani S.p.A. with its two divisions, Automotive and Home Style and Fashion, produces fine leather of pure Italian quality for various sectors: automotive, furnishings, information technology, footwear, leather goods and clothing. Dani in the three Italian production plants, located in Arzignano, count circa 650 employees. Furthermore it has two branches, the first one in the USA, in New Jersey; the second one in Guangzhou, China. Beside this Dani has two strategic partner specialised in cutting: Dani Tunisia and Dani AFC, that is also specialized in sewing operations.

EPD, in this study, is related to the six plants of the Home Style and Fashion Division (leather for upholstery, footwear and leather goods) located in Arzignano. In particolar in: Via Quarta Strada, 20 - Via Quarta Strada, 16 - Via Quarta Strada, 9/11 - Via della Concia, 176 - via Sesta Strada 31 - via Quinta Strada 20. Dani leather is the result of a long production cycle that is entirely carried out in Arzignano.

LIMING 2

1

3

3

During the liming phase, the hide undergoes all the treatments in preparation for the tanning products: desalination 1 , the chemical operations inside the liming drums: soaking, un-hairing, liming 2 , through to the mechanical operations of fleshing, trimming 3 and splitting 3 .

TANNING...AND RE-TANNING 5

5

In the tanning phase are used, in the drum, agents (mainly chrome) to confer leathers physical and mechanical properties 4 . This process is followed by the pressing 5 , splitting 5 and shaving 5 operations. This tanned hide is known as wet blue. Following the retanning 6 , dyeing 6 and fatliquoring 6 operations, which gives colour, consistency and softness of texture to the hides.

4

5

6 6

8

12

7

7

6

7

8 7

DRYING & FINISHING Prior to drying, the leather is passed through a sammying machine 7 that presses the hides to eliminate the excess of water and folds. This is followed by several types of drying (depending on the required characteristics of the final product): Vacuum Drying 7 , Air Drying 7 and Toggle Drying 7 . The dried leathers are called “crust leathers”. In the Finishing phase a series of operations are combined to give the leather the final appearance: pigment sprays, protective resins and waxes 8 , stretching, embossing milling and ironing 8 , which gives the leather the right degree of softness and shine. The finished leathers are selected one by one, measured and then addressed to the various markets, including furniture, footwear, clothing and leather goods.

3 | EPD DANI S.p.A.

Research Projects Dani has always placed special focus on protecting the environment and a very careful use of the natural resources, and, considerable investments were made in research projects to reduce all its polluting emissions. The “Ecolife project”, which involves constant interaction with our Research and Development Department and the Universities of Padua, Naples and Venice, was conceived in the 2010 to satisfy this need.

This last sub-project has been implemented in the 2011 by achieving the certification Carbon Footprint of Product (CFP/02/2011) which calculates the impact of the leather on climate changes, and indicates the amount of greenhouse gases that are released during the lifecycle of the leather.

Certifications Dani has obtained the following certifications:

EcoLIFE Ecolife included the following sub-projects:

1

Tanning without the use of heavy metals

New logistic-production system for processing fresh hides

Shaving without the use of sulphides

Defining the carbon footprint of the leather

LEATHERFROM FROM ITALY LEATHER ITALY - FULL CYCLE (UNI 11239) FULL CYCLE (UNI 11239) Certifica che tutti i processi produttivi sono This certification, which is recognized realizzati in Italia. internationally, certifies that the entire production is completed in Italy. Certification body: ICEC

CARBON FOOTPRINT OF PRODUCT CARBON FOOTPRINT OF PRODUCT (ISO/TS14067) (ISO/TS14067: 2013) Quantifica le emissioni di gas serra emesse It lungo quantifies thedagreenhouse la filiera, agricoltura egases allevamento produced along delle the entire chain, from alla realizzazione pelli finite. the farm to the finished leather. Certification body: SGS

ENVIRONMENTAL PRODUCT DECLARATION ENVIRONMENTAL PRODUCT (ISO 14025) DECLARATION A seguito dello studio di LCA (Life cycle (ISO 14025) assessment), prende in esame le seguenti According the LCA (Life Cycle categorieto d’impatto: effetto serra, riduzione dello strato distudy, ozono, acidificazione, Assessment) it examinessmog fotochimico, eutrofizzazione. thewww.environdec.com following impact categories: greenhouse effect, reduction of the ozone layer, acidification, photochemical smog, eutrophication. www.environdec.com Certification body: SGS

DER BLAUE (RAL UZ UZ 148)148) DER BLAUEENGEL ENGEL (RAL una seriethe di parametri, inferiori ItFissa examines parameters thata quelli previsti per legge, relativi alla presenza ed concern the content of dangerous emissione di sostanze pericolose e nocive. substances, the emission of pollutants, energy conservation and use of raw materials and water, according to the pre-established limits. Certification body: RAL

CMYK

QUALITY SYSTEM CERTIFICATION (ISO 9001:2008) Dani S.p.A. - HS&F Division Certification body: DNV

4 | EPD DANI S.p.A.

GREEN L.I.F.E. (2014-2017) The ethical and strategic values of the social-environmental responsibility are implemented in Dani through research and innovation projects. In particular, Dani is the coordinator of a project funded by European Union, as part of the Life+ programme. The GreenLIFE project (Green Leather Industry for the Environment), in addition to Dani, involves four other companies based in Vicenza’s Tannery District, that are: Gruppo Mastrotto, a chemical company Ikem, Acque del Chiampo that manages the water purification plant, and Ilsa - a biotechnology company specialized in plant-nutrition products.

The project aims to reduce the environmental impact of leather processing as well as providing the first step towards a common direction for the entire Vicenza Tannery District. GreenLIFE’s main goals are:

100% reduction

20% reduction

in solid waste containing chromium

in water consumption in beamhouse stage

20% reduction

20% reduction

in chemicals used in beamhouse stage

15% recovery

of products with industrial value (farming use)

ARZIGNANO ITALY

in solid waste

A new Knowledge hub to share ideas and technologies

5 | EPD DANI S.p.A.

Product information The product identification, according to the CPC classification (Central Product Classification), is “Other leather, of bovine or equine animals, furless” - CPC 2912. The product covered by this declaration is “finished cowhide”, intended as a finished product by the tanning industry, ready to be used as a semi-processed input for the next transformation phases by the various manufacturing industries. The hide can be used as a semi-processed product for various finished products, such as furniture, clothing, footwear, etc. As the use of “finished cowhide” varies considerably in the final consumer products, no specific product function is defined.

This declaration is based on the average production of “finished cowhide” in the tannery during the reference period of 2014, and therefore the results do not refer to any specific category of leather. A raw hide could be considered a waste product from the slaughterhouse, and the tanning processes could be considered as a waste recovery process. In compliance with the conservative approach that is requested by the PCR relative to this declaration, the raw hide is considered as a co-product of cattle breeding, and therefore has an environmental impact relative to that phase as well.

Chemical substances contained in finished cowhide subject to legal limits:

SUBSTANCE

UNIT OF MEASURE

TOTAL

LEGAL LIMITS

CHROME

Ppm

 3*

 3A

FORMALDEHYDE

Ppm

 10

 75B

PENTACHLOROPHENOL

Ppm

 0,05

 1C

AZOCOLORANTS

Ppm

 30*

 30D

*Detection limits A Reg 1907/06/CE REACH (Amended byReg. 301/2014/CE) B Japan Law 112 for the control of household products containing harmful substances C Reg 1907/06/CE REACH D Reg 1907/06/CE REACH

6 | EPD DANI S.p.A.

LCA STUDY UPSTREAM

Agriculture

CORE

Breeding and slaughter

DOWNSTREAM

Production

Declared unit The Declared unit is the production of 1 square meter of “finished cowhide”, measured according to the ISO 11646 standard.

Delivery

Disposal of the packaging

Limits of the analysed system In particular, the boundaries are “Cradle to gate”, thus from raw material extraction to delivery of finished leather to the customer, excluding the use and the end of life phases.

7 | EPD DANI S.p.A.

List of the processes that form the upstream module UPSTREAM

CORE

DOWNSTREAM

INPUT

OUTPUT

Feed cultivation

Manure management

BREEDING AGRICOLTURE

Feed production

 SLAUGHTER

Energy consumption Chemicals and auxiliaries products production

Packaging production

Meat and discard production

List of the processes that form the UPSTREAM module: • Raw materials extraction for agriculture and cattle breeding • Agriculture • Breeding cattle • Transport of animals to the slaughterhouse • Slaughter • Production of chemicals and auxiliaries products in the leather production cycle • Production of material for primary and secondary packaging

8 | EPD DANI S.p.A.

List of the processes that form the core module UPSTREAM

CORE

INPUT

DOWNSTREAM

Air emissions

Transport of raw materials

Electrical energy production

OUTPUT

Waste management

LIMING



SPLITTING



TANNING



Thermal energy production

Water treatment

SPLIT IN WET BLUE



DYEING



DRYING

Waste transportation



Fresh water supplying

FINISHING

Maintenance activities

By-products transportation

List of the processes that form the CORE module: • Transport of raw materials to the production plant • Electrical and thermal energy consumptions during the production phase • Consumption of fresh water during the production phase • Maintenance activities • Required processes for the production of finished bovine leather • Emissions in air and water • Production wastes • Waste and by-products transportation

9 | EPD DANI S.p.A.

List of the processes that form the downstream module UPSTREAM

CORE

DOWNSTREAM

 Disposal of the packaging

Transportation to customers

List of the processes that form the DOWNSTREAM module: • Transport of finished leather to customers • Disposal of the packaging used in the shipment of finished leather

10 | EPD DANI S.p.A.

UPSTREAM

Agricoltura

CORE

Allevamento e macello

DOWNSTREAM

Produzione

Distribuzione

Processi di fine vita dell’imballaggio

Leather allocation, on the overall impact of the animal, is made on an economic basis, as required by PCR, by distinguishing between two categories of animals: Mammal Not reproduced animals bred for the production of the meat; Reproductive mammal Female animals that gave birth at least to one calf and that, at the end of their life, when they stop producing milk, are destined for meat production.

The breeding allocation it is intended, on an economic basis, for Re-productive mammal animals. The percentages used are those of the Agrifootprint process that considers the following distribution: 92.2% of dairy cows, 5.2% of beef cows and 2.6% of calves.

11 | EPD DANI S.p.A.

Flow reference calculations For the flow reference calculations, information regarding the mass of the various outputs of the slaughter have been collected. This information is reported in the following table:

REPRODUCT MAMMAL

MAMMAL

CLASS OF ANIMALS

MASS/ECONOMIC VALUE OF THE OUTPUT OF SLAUGHTER

2012*

2013

2014

AVERAGE OF 3 YEARS

Average weight of a slaughtered leather (kg)

49

50

49

49

Total average weight of other products of the slaughtered bovine (total between edible and non-edible) (kg)

628

631

626

628

Average value of a slaughtered leather (€)

102

99

106

102

Total average value of other products of the slaughtered bovine (total between edible and non-edible) (€)

1780

1808

1751

1780

Average weight of a slaughtered leather (kg)

32

32

33

32

Total average weight of other products of the slaughtered bovine (total between edible and non-edible) (kg)

613

608

617

613

Average value of a slaughtered leather (€)

61

61

60

61

Total average value of other products of the slaughtered bovine (total between edible and non-edible) (€)

659

687

632

659

* Data for the 2012 are not available and the data used are the average of the years 2013 and 2014. However, this approach is precautionary, considering Mammals category, which are the more impacting animals. The share of the economic allocation of leather(the value of leather compared to the value of the animal itself) is steadily increasing.

12 | EPD DANI S.p.A.

Environmental performance Use of resources The use of material and energy resources is given in the table by declared unit and divided among the upstream, core and downstream modules.

Finished cowhide (1m2) UNRENEWABLE RESOURCES

MATERIALS RESOURCE

ENERGY RESOURCES

Materials, of which Inert rock Phosphorus Gravel Calcium carbonate Sodium chloride Other Energy, of which Oil Gas Coal Peat Uranium

RENEWABLE RESOURCES

ENERGY RESOURCES

OTHER

Energy, of which Water Eolic Solar Geothermal Water consumption Electricity consumption

UNIT

TOTAL

UPSTREAM

CORE

DOWNSTREAM

Kg Kg Kg Kg Kg Kg Kg Kg Kg Kg Kg Kg Kg

9,39 4,13 1,52 1,17 0,74 0,64 1,19 5,89 2,47 2,02 1,24 0,15 2,53E0-05

8,29 4,13 1,52 0,20 0,74 0,64 1,06 3,50 1,52 1,06 0,76 0,15 1,57E-05

0,97 0,00 9,55E-06 0,86 0,00 1,17E-03 0,10 1,64 0,27 0,93 0,44 4,55E-04 9,19E+06

0,13 0,00 7,47E-07 0,11 0,0 6,91E0-4 0,02 0,75 0,68 0,03 0,04 7,85E-05 4,65E-07

UNIT

TOTAL

UPSTREAM

CORE

DOWNSTREAM

Mj Mj Mj Mj Mj l kWh

7,60 4,59 0,72 0,10 2,19 1,365,81 2,73

2,61 1,96 0,47 0,10 0,08 976,90 -

490 2,55 0,25 5,03E-04 2,10 357,95* 2,73**

0,10 0,08 0,01 7,21E-05 0,01 12,96 -

* Coal and oil are expressed both in kg and MJ; **Of which the internal water consumption, for the production processes, is equal to 130,56 liters.

13 | EPD DANI S.p.A.

Potential environmental impact Below are, by declared unit, the potential environmental impact data divided among the upstream, core and downstream modules.

Finished cowhide (1m2)

UPSTREAM

CORE

DOWNSTREAM

IMPACT CATEGORY

TOTAL

GREENHOUSE EFFECT-GWP 100 (kg CO2 eq.)

45,27

38,50

4,56

2,21

ACIDIFICATION (g SO2 eq.)

772,09

746,64

15,66

9,79

REDUCTION OF THE OZONE LAYER (mg CFC-11 eq.)

1,41

0,36

0,66

0,40

PHOTOCHEMICAL SMOG (g C2H4 eq.)

7,63

6,53

0,73

0,36

322,25

317,07

3,57

1,61

EUTROPHISATION (g PO43- eq.)

Raw materials production

Leather production/Transportation Distribution of finished leather

Table: Quantification of the environmental impacts

Load of generic data Regarding the load of the generic quality data in the overall impacts, it has been used the following approach: generic (not selected) data used also in the packaging disposal, chemicals with generic quality data and by the chemical most used in each processing stage. The load of generic (not selected) data is below the threshold of 10%, allowed by PCR, for all types of impact.

14 | EPD DANI S.p.A.

Other indicators Gli altri indicatori vengono riportati nella seguente tabella per unità dichiarata e divisi tra i moduli upstream, core e downstream.

ENVIRONMENTAL INDICATOR WASTE

OTHER

UNIT

TOTAL

UPSTREAM

CORE

DOWNSTREAM

Dangerous

g

4,85

N.A.

4,85

N.A.

No dangerous

g

1.369,50

N.A.

1.369,50

N.A.

Chrome III*

g

75,27

75,27

N.A.

N.A.

Formaldehyde*

g

0,83

0,83

N.A.

N.A.

* Data referred to the chemical product usage in the process

Table: Other environmental indicators

Other information The average thickness is 1.30 mm, according to the measured finished product produced in the reference period. Thickness classes: [0-1) = 0,1%

[1,5-2) = 14,6%

[2,5-3) = 1,4%

[1-1,5) = 78,8%

[2-2,5) = 4%

[3-4+) = 1,1%

15 | EPD DANI S.p.A.

Information about the program and the control process Product Category Rules (PCR) FINISHED BOVINE LEATHER 2011:13 VERSION 2.0; published in June 11, 2015

Other mandatory declaration: Information concerning the databases used:

PCR review conducted by: The Technical Committee of the International EPD ® System. Chair of the review Rita Schenck Contact information: [email protected]

www.agri-footprint.com www.ecoinvent.com

Independent control of the declaration and data, in accordance with the ISO 14025:2006 standard:

Differences from previous EPD versions

 EPD process certification

X EPD verification

Third party auditor SGS Italia Spa, via Caldera 21 - 20153 Milano Accreditation Accredia n.006H Program The International EPD® System EPD International AB Box 210 60 SE-100 31 Stockholm Sweden www.environdec.com

The methodology has varied between the previous version of the EPD and the current one. With the new PCR, for instance, the rules of raw hide allocation, of the databases used and of the cut-off has changed in various phase (not only the breeding one). It is therefore reported that it is not possible to compare the results reported in the two EPD because the methodologies used in the impacts detection are not comparable. Please note that EPDs developed for the same category of product but following different programs may not be comparable.

16 | EPD DANI S.p.A.

Contact Information Author of EPD The study of Life Cycle Assessment (LCA) and this EPD have been carried out by Guido Zilli and Tommaso Bissoli, employees of Dani S.p.A., in cooperation with Aequilibria di Pernigotti Daniele. The company contacts are: Guido Zilli Innovation and Sustainability Manager– email: [email protected] Dani S.p.A. via della Concia, 186 Z.I. Arzignano - Tel. 0444 471211 - www.gruppodani.com

Author of LCA Aequilibria Daniele Pernigotti P.le Martiri delle Foibe, 5 I-30175 Venezia Marghera (VE) - www.aequilibria.com

Program Operator ENVIRONMENTAL PRODUCT DECLARATION

EPD International AB [email protected]

17 | EPD DANI S.p.A.

References • Rapporto di LCA della pelle bovina finita (rev1 del 31 luglio 2015) - Dani Spa • General Programme Instructions of the International EPD® System. Version 2.5 del 11/05/2015 • PCR FINISHED BOVINE LEATHER 2011:13 VERSION 2.0 • ISO 11646:2014, Leather - measurement of area