Project
Rainbow Project
its aim is to support children in need and children orphaned by AIDS through nutritional and educational support and microcredit projects for families.
While 2023 was a challenging year, it was a year of progress and laid the groundwork for future projects that will enable us to transition to a business model capable of creating more shared value.
We developed a number of projects, established strategic partnerships and invested in the training of our people in order to achieve our ambitious environmental and social goals. Let’s take a look at our key initiatives, achievements and the challenges that lie ahead
as we continue to focus on creating shared value and building a sustainable future.
When we launched our strategic sustainability plan for 2021-2022, we decided to call it “Everyone Can”
because we immediately recognised how important the commitment of everyone in the Teddy Group would be in meeting the challenge of transitioning to a future-proof business model.
Looking back to 2023 and considering today’s complex economic and geopolitical landscape, it is clear that the challenges we face are more ambitious than ever. The progress you will find in this long form report, which examines 2023 in terms of our responsibility and impact, is the result of a collective effort by all of us and tells the story of our company’s journey, our ambitious goals for the future and the results we have achieved by following the principles of economic, social and environmental sustainability
The journey we embarked on in 2023 was based on two key factors. The first factor is a corporate culture that places increasing emphasis on economic, social and environmental sustainability issues and sufficiently resilient to adapt to change. The second factor is striking the right balance between dream and reality, which has always been part of our DNA and is crucial for the long-term sustainability of the fashion industry, which is inherently complex and nuanced. Sustainability today is about continuous innovation, but more importantly it is about working together to create more and more shared value.
It is a long journey that comprises a series of small and large steps. Last year, we initiated several key projects for Teddy’s future, which will enable us to fully comply with in the years to come. We also added new tools to the strategic and operational ones already in place, and expanded our network by forging new partnerships, for example with . Our dedication to environmental responsibility is reflected in our ongoing efforts to reduce emissions and incorporate more sustainable materials into our collections. Furthermore, we are working to improve our suppliers’ social compliance procedures, investing in employee growth and training and in the community, and fulfilling our role as global citizens.
“Everyone Can” means that each of us can change the world, provided we work collectively. We therefore believe it is vital to foster partnerships, collaborate, engage and relate to all stakeholders on the basis of a common purpose.
This will allow us to continue our exciting journey, not because we have to, but because we want to, and to make ambitious commitments, understanding that they will not be easy to achieve and that we must not be hard on ourselves if we experience a few setbacks along the way.
President and CEO
Teddy Group
Any company has the duty to do the right thing and the opportunity to choose to behave in a different way. This approach has to be a structural choice, which has to impact in a tangible and lasting manner on the way goals are set and decisions are taken.
The impact of human activity on the planet is becoming increasingly disruptive and calls for a decisive and collective change of course. We need to rethink not just the way we design garments, but our whole approach, from stores to logistics management.
Respecting and promoting human dignity has always been at the heart of our actions and our way of thinking. We feel a responsibility to improve the lives of everyone we meet every day, dressing them with passion and giving them the attention they deserve.
We have made a great deal of progress, but there is still a long way to go. Our Dream is a sustainability manifesto that is ahead of its time and has been expanded over time to include all aspects of sustainability in the broadest sense. We see sustainability as more than “just” the environment: it is also about people, community and governance. We believe that working together, with our employees, our customers and our suppliers, is the best way to move forward into the future. A great partnership that allows everyone to achieve great things through small gestures.
The entire fashion industry is facing a major challenge for the future: the transition to a new business model that is more circular, more transparent and more responsible in all direct and indirect process steps.
To this end, we intensified supply chain mapping in 2023, with the aim of involving the entire supply chain in a virtuous journey. We invited our suppliers to join platforms where they can find the practices promoted by other brands to avoid duplication of effort.
For example, we continuously encourage players in our supply chain to use the to monitor and collect social and environmental performance data, and require the use of wet processes in line with the protocols to which we adhere.
We believe that collaboration between brands and the alignment of goals and working practices is the foundation for the future development of sustainability in the supply chain. We work with the industry’s main working groups, such as the , which aims to define common sustainability strategies and promotes the Circular Fashion Partnership project, which we joined in 2022, as well as Textile Exchange, for the certification and tracking of low-impact fibres ( certifications), and for performance measurement and supply chain transparency.
As part of our commitment to sustainability, we have invested in the training of our people because the only way to move forward into the future is to ensure that everyone is included and no one is left behind. In 2023, 400 people received training on environmental and social issues, totalling 800 hours of training, promoting a culture of sustainability that guides our daily choices. We launched new initiatives such as the book tour to promote “The Minority Partner”, the story of the human and entrepreneurial adventure of our founder, Vittorio Tadei. More than 600 people from our sales network visited 7 Italian cities. With this tour, we wanted to we wanted to make our colleagues even more aware of the origins of our company, its purpose and its values.
Executive Vice President
Cascale
The production and processing of raw materials accounts for more than in the fashion industry. At Teddy Group, we align with the Textile Exchange definition of preferred fibres and materials and strive to reduce our impact and increase the benefits for climate, nature and people over those of conventional raw materials. This is why we are increasing our use of environmentally friendly, certified fibres and using less virgin natural resources to preserve ecosystems.
In 2023, we started our eco-design journey to adopt a circular approach to designing garments according to . We have also launched eco-design training for various functions within the corporate group.
Our commitment to the environment is not limited to our collections, but also extends to our packaging, with the aim of reducing its impact. In 2023, we launched a system to collect data from our packaging suppliers and set mandatory minimum requirements for packaging materials. All paper shopping bags in our stores are made of FSC® (Forest Stewardship Council), certified paper, and we aim to exceed 80% FSC® certified cartons by 2025. More than 80% of the paper we use today is FSC® certified.
To achieve our goals, it is vital that we raise the awareness of our employees, the entire supply chain and our customers, working together with other stakeholders in the fashion industry for the benefit of all. We have joined the 's Circular Fashion Partnership to recover manufacturing waste and bring it back into the production cycle, promoting circular economy practices and reducing waste.
We have launched the Global Environmental Programme (GEP), which is our integrated environmental programme that sets challenging targets in four key areas to tackle climate change: chemicals, emissions, water and waste.
Working closely with suppliers who are part of the supply chain and mutual understanding is essential to our commitment. To this end, 130 Level 1 suppliers (e.g. garment makers) and around 200 Level 2 suppliers (e.g. weaving mills and wet processing plants) have been identified for 2023, with the aim of assessing potential risks and taking advantage of opportunities arising from the monitoring of the four environmental impact areas. In 2024, we will be introducing an advanced computer system that will allow us to track the production chain in even greater detail.
We are particularly concerned about the use of potentially harmful chemicals, which is why we ask our suppliers to adopt the protocol and use the ZDHC GATEWAY portal. By 2023, 81% of the mapped wet processing plants had already implemented the ZDHC roadmap. The Teddy Group has achieved the first level of the ZDHC Brands To Zero programme, “Impact Pioneer”, and continues to invite suppliers to join the ZDHC “Supplier To Zero” programme, which includes specific chemical management training.
Senior Technical Marketing Officer
Bluwin
The goals that we set for ourselves are always extremely challenging, and we will do everything in our power to achieve them. Through the Science Based Targets initiative, we have made a voluntary commitment to reduce our Scope 1 and Scope 2 greenhouse gas emissions by 51% from 2019 levels by 2031. Our commitment also includes a 51% reduction in emissions per product unit sold from sources beyond our direct ownership or control, such as our supply chain.
Since 2019, we have already made great progress in reducing both emissions and consumption, as well as raising awareness among staff. We have also managed to reduce electricity consumption in our Rimini office by 18% and in our Bologna office by 12% compared to 2022.
But our commitment also extends beyond the sites to the stores in which our brands are sold. Furthermore, we have reduced waste in our stores thanks to the installation of new energy monitoring systems in several points of sale in Italy, which we intend to implement in all our stores. We installed Building Management Systems (BMS) in eight stores. These systems ensure centralised monitoring and optimisation of energy consumption and resources, resulting in reduced operating costs and enhanced environmental comfort.
These are just some of the steps we are taking to achieve our goals, and more will follow over the next few years.
It has always been our dream to create a great company that will last 500 years and continue to grow, investing part of its profits in helping the most vulnerable and disadvantaged. It is a dream we work towards every day.
The Teddy Group was founded on giving something back to society. We want to help, to lend a hand to those in need, not out of a moral obligation, but out of a natural vocation that took on a more concrete form in 2014 with the creation of the which is part of the corporate group’s shareholding structure.
Our Corporate Citizenship Scheme is based on the value of giving and aims to create a business community that is sensitive to the needs of others, with a special focus on young people and the inclusion of vulnerable people in the world of work. Our aim is to create an ethical and responsible business community that has a positive impact on the people around us, by working with charitable organisations, both in Italy and abroad.
In our Induction programme, a project for new hires that includes a one-day introduction to corporate identity, we present the corporate group's social commitment, also through the accounts of guests from the various charitable organisations with which we work. In 2023, 90 people took part in the programme and gave it a very positive rating.
Contact person
Foundation Gigi Tadei
Not only do we want to help financially, but we also donate surplus fabrics, garments or semi-finished products from our dressmaker’s shop to charitable organisations in the Rimini area, which transform surplus into small goods produced by vulnerable people.In 2023, we donated a total of 2,100 kg of fabric, , creating employment opportunities for these people and helping to reduce waste.
In Italy, in 2023, we launched a corporate volunteering programme for our people, who are able to donate their time to the community during their working hours. In total, 542 of our people were involved, donating more than 700 hours to activities such as study support at the Portofranco Rimini association and the Mille Orti agricultural association in Rimini, which helps people with intellectual disabilities to grow fruit and vegetables and take part in vocational training activities.
Once again last year, we participated in the National Food Collection Day organised by the Banco Alimentare Onlus Foundation food bank. Our Terranova brand was the main sponsor of the event, and many of our colleagues who took part in the initiative volunteered at a supermarket in Rimini. We also re-introduced the company’s food bank collection, for the first time also in our own stores and affiliated stores, involving our people and encouraging them to donate food to those in need.
In order to support A.R.O.P. (Rimini Pediatric Hematology and Oncology Association), our seamstresses repair Teddy people’s clothes in exchange for donations that will go to the association, which supports children with oncological diseases admitted to Rimini Hospital and their families.
In 2023 we also promoted the “Teddy supports those you care for” call, an initiative that allows our people to suggest social projects in which they are personally invested or that support a family member, with the opportunity to receive financial support from the company. In this way, we can foster a corporate community that cares about others, prioritises social responsibility and encourages our people to get involved in building a better world. In 2023, we received 19 applications in response to the call for proposals and allocated €24,000 to support up to 12 non-profit charitable organisations that had been proposed by our people.
2023 was a very challenging year for our corporate group. The international scenario became increasingly uncertain and unstable, with a rise in conflicts and climate change affecting our economy. This was further compounded by floods in the Emilia-Romagna region in May and the highest average temperatures ever recorded. Furthermore, the combination of high inflation and historically high interest rates has significantly reduced the income and purchasing power of families.
In light of these circumstances, we ended the 2023 fiscal year with consolidated net revenue essentially unchanged from the previous year at +0.2%, and corporate group net sales of €672.5 million, an increase of 1.3 million compared to the previous period.
Despite encountering numerous obstacles, we persisted in investing in the development of our brands and their stores, with 91 new single-brand stores opened under the Terranova, Calliope and Rinascimento brands, for a total of 841 stores worldwide. The number of people working together every day to make Teddy the company we dream of has also grown, with 249 new positions created, for a total of 3,464 employees. The average age of our workforce is 33, and 68% of our employees are women.
We are a fashion retailer with an Italian soul, with one big Dream and four clothing brands spread all around the world.
Our goal is to dress people and we do it through the brands Terranova®, Rinascimento®, Calliope® and QB24®. Each brand reflects Teddy’s corporate culture and passion for creativity and beauty. We want to become an international top player in the industry, thus making our Dream come true.
We do not just manufacture products, as we also have the ability to distribute them, offering unique added value.
We enjoy doing business with other entrepreneurs and our distribution models are developed thanks to our partners, as evidenced by our 60-year history.
We always put our customers and their wishes first.
This is why we take an omnichannel approach, investing more and more in the development of new digital channels and in-store and online services, inspired by the needs and behaviours of our customers.
Regulations that promote transparency and consumer awareness: Green Claim Directive, Corporate Sustainability Reporting Directive (CSRD), Taxonomy, Due Diligence Directive (CSDDD).
Regulations that promote circular models of production and consumption: Ecodesign for Sustainable Products Regulation (ESPR), Waste Framework Directive (WFD).
Cascale (formerly SAC - Sustainable Apparel Coalition) is an alliance that promotes sustainability in the textile and apparel industry. Its members represent every link of the global value chain. Recently rebranded, Cascale’s aim is to create a movement that uses collective action to shape a more responsible fashion industry. Its mission is to reduce environmental and social impacts by using the Higg Index suite of tools, which have been designed and developed over the years to define a single standard for addressing common environmental and social challenges in a more inclusive way, involving not only brands and production factories, but also consumers, governments and NGOs.
The Higg Index is a set of key tools developed by Cascale to assess and manage the sustainability practices of textile brands and production factories, avoiding duplication of effort by improving the information sharing process. It consists of a series of modules, including the Brand Retail Module (BRM), the Facility Environmental Module (FEM) and the Facility Social & Labour Module (FSLM), which can be used to assess and improve the environmental and social impact of factories in manufacturing countries
Zero Discharge of Hazardous Chemicals (ZDHC) is a foundation of more than 170 companies representing the textile, apparel and footwear supply chain, namely, brands, suppliers and chemical manufacturers. Participation in the programme is voluntary. The mission of the ZDHC is very clear: to help create a world in which the adoption of the highest standards for the responsible management of chemicals leads to the protection of life, land, air and water.
The Global Fashion Partnership (GFP) is a non-profit organisation founded in 2016 and a leader in sustainable fashion, actively working to promote sustainable practices in the fashion industry through global initiatives and strategic partnerships. GFA aims to accelerate measurable impact in the fashion industry through collective commitments, impact improvement programmes, research and development publications, events and policy-driven institutional engagement. GFA provides in-depth analysis and reporting based on the most up-to-date data available in the industry.
GOTS is the world’s leading standard for the textile processing of organic fibres, incorporating environmental and social criteria supported by independent certification of the entire textile supply chain. Whereas the OCS, which, like the GRS and RCS, is a voluntary global standard developed by the Textile Exchange, makes it possible to trace the chain of custody and to monitor the quantities of organic materials along the supply chain. Both GOTS and OCS have multiple benefits, including reducing the use of pesticides and chemical fertilisers, conserving water, protecting biodiversity and supporting sustainable agricultural practices and farmer welfare.
Cascale (formerly SAC - Sustainable Apparel Coalition) is an alliance that promotes sustainability in the textile and apparel industry. Its members represent every link of the global value chain. Recently rebranded, Cascale’s aim is to create a movement that uses collective action to shape a more responsible fashion industry. Its mission is to reduce environmental and social impacts by using the Higg Index suite of tools, which have been designed and developed over the years to define a single standard for addressing common environmental and social challenges in a more inclusive way, involving not only brands and production factories, but also consumers, governments and NGOs.
According to McKinsey’s 2020 ‘Fashion on Climate’ report, the production and processing of raw materials accounts for more than 70% of emissions
Regulations that promote transparency and consumer awareness: Green Claim Directive, Corporate Sustainability Reporting Directive (CSRD), Taxonomy, Due Diligence Directive (CSDDD). Regulations that promote circular models of production and consumption: Ecodesign for Sustainable Products Regulation (ESPR), Waste Framework Directive (WFD).
Zero Discharge of Hazardous Chemicals (ZDHC) è una fondazione che comprende oltre 170 aziende che rappresentano la filiera dei settori tessile, dell’abbigliamento e delle calzature, ossia i brand, i fornitori e i produttori di sostanze chimiche. L’adesione al programma è volontaria. La missione di ZDHC è molto chiara: contribuire a creare un mondo in cui l'adozione dei più elevati standard per la gestione responsabile delle sostanze chimiche porti alla protezione della vita, della terra, dell'aria e dell'acqua.
The Foundation was set up in 2014 and, along with the other subsidiaries, was incorporated into the corporate structure of the parent company, T&M Holding S.p.A., in memory of Luigi Tadei, Vittorio’s son, who died in 2006. Its aim is to preserve, maintain and renew the extraordinary passion that Luigi and Vittorio Tadei had for young people and the weak through their support of social work in Italy and throughout the world. The role of this Foundation, as a shareholder of the T&M Holding S.p.A. group, implies a formal, regular and lasting commitment on the part of the corporate group to donate part of its profits to charitable causes. Although the Fondazione Gigi Tadei is a separate entity from Teddy, thanks to the dividends it receives, most of which come from the profits of Teddy S.p.A., it plays a key role in keeping Teddy’s Dream alive and in supporting charitable and social work. Teddy’s people support and participate in this mission, as the fruits of their labour make it possible to help the social organisations supported by the Foundation.
