Sustainability
Responsible Design and Circularity

We are committed to reducing the environmental impact of our products and to promoting circular economy principles

Lower-impact materials

The brands of the OTB Group work to promote the use of lower-impact materials and processes, through the use of specific guidelines shared with the procurement and product development departments. These guidelines also consider the objectives of the Group Sustainability Strategy, the demands of the main markets and industry best practices. The aim is to expand the offer of responsible products, while guaranteeing quality standards and respecting the brands’ identity.

As a member of The Fashion Pact, OTB is committed to ensuring that, by 2025, at least 25% of the main materials it uses at consolidated level have a lower climate impact. In 2024, sourcing of certified materials and materials that respect environmental and animal welfare standards rose significantly, to approximately 24% of total OTB Group purchases, an increase of 7 percentage points from 2023.

Percentage points, preferred materials used compared to 2023

Purchases of preferred cotton compared to 2023

Of the main materials used have a lower climate impact

The Fashion Pact

Raw materials

In 2024, OTB Group purchased a variety of raw materials, as illustrated in the chart below. Cotton accounted for the largest share, at 61.8%, followed by synthetic polymers at 23.7%. Leather makes up 6.6%, while man-made cellulosic fibres and animal fibres account for 2.9% and 2.6% respectively.

Raw materials purchased in 2024

Cotton

Synthetic polymers

Leather

Artificial cellulosics

Animal fibres

Other

OTB Raw Materials Standards

Together with the purchasing and product development departments and the style offices, OTB has developed the “OTB Raw Material Standards”.

These standards provide a detailed overview of the preferred raw materials and list materials that are banned or to be removed from the collections within specific timeframes. They also provide guidance on the certifications accepted by the Group to consider materials with low impact. The standards reflect the Group’s commitment to a more responsible fashion system and take into account the objectives of the Group's Sustainability Strategy, the requirements of key markets and industry best practice.

Raw materials: Cotton

Cotton represents the largest portion of the main raw materials purchased by the Group. For this reason, the OTB brands undertake to increase purchases of non-conventional types of cotton, such as organic cotton, recycled cotton, and cotton from regenerative agriculture. In 2024, preferred cotton purchases rose by +31% compared to 2023.

Cotton purchased in 2024

Conventional cotton

72.7%

Preferred cotton, of which: – Organic cotton – Regenerative cotton – Recycled cotton

27.3% 17.3% 6.7% 3.3%

The commitment of the Group brands

The OTB brands continue to work for the development of a more responsible fashion system through continuous improvements in their offer of lower-impact products. Among the various initiatives, Diesel achieved a significant milestone with its SS25 collection, with more than 60% of the combined Ready To Wear and Denim offer in line with the lower-impact product guidelines. The brand also increased its use of lower-impact cotton, which accounted for about 31.4% of its total cotton purchases, compared to 23.9% in 2023. OTB Group production hub Staff International worked with the Marni, Maison Margiela and Jil Sander brands to help them improve their sustainability performance of their respective collections. Marni increased the use of certified fibres and innovative solutions. In its SS25 collection, products with a minimum content of at least 50% preferred materials accounted for more than 40% of the overall offer. During 2024, Marni also increased its use of lower-impact cotton, which stood at 32.8% of its total cotton purchases.

In 2024 Jil Sander focused on progressively replacing traditional viscose with its alternative from responsibly managed forests, reaching a share of approximately 45% in the Ready To Wear collections. For Maison Margiela the main focus was leather. Leather purchased from LWG-certified tanneries for the Shoes & Bags category reached 31% of the brand’s total purchases, rising to 41% in the bags and small leather goods category.

In 2024, Brave Kid confirmed its commitment to sourcing materials with a lower environmental impact for the collections of the brands it works for, reaching 12% in the SS25 collection, a 4% increase over the FW24 collection. Viktor&Rolf again confirmed its collaboration with the company that produces Tencel™ Luxe fibre, an innovative Lyocell yarn made from wood pulp sourced from responsibly managed forests, for the Mariage collection.

Promoting circular economy business models

Promoting circular economy in the fashion system is pivotal to reduce the sector’s impact. At OTB, we are committed to promoting innovation and circular economy principles through pilot projects and initiatives, aimed at extending the products’ lifecycle, reflecting the DNA of each brand of the Group.

Our brands work to increase the use of recycled materials, the reuse of raw materials sourced from dead stock and warehouse remnants and to activate specific activities aimed at extending the products’ lifecycle, like post-sale garments’ repair and activities to incentivise their reuse.

To mention some key example, in 2024 Diesel continued the project to reuse production off-cuts launched in 2022 in cooperation with the United Nations Industrial Development Organisation (UNIDO). The project creates a virtuous circle for fabric off-cuts to expand the management and recycling of denim scraps in the mechanical recycling process. To contribute to the development of a circular fashion system, Diesel also expanded the geographical scope of the Diesel Second Hand project by opening four sales outlets in Japan, and continued the initiative in the mono-brand stores in Italy and on the European e-commerce website.

With the support of Staff International, Maison Margiela continued the development of the “Recicla” line launched in 2020, expanding the concept of reusing and reinterpreting existing materials. The project included the selection of additional items to create customised limited editions identified by the iconic white “Recicla” label. This process extends the life cycle of products, enhancing their craftsmanship and uniqueness and promoting greater awareness among customers.

RE.CREA Consortium

In August 2022, the Re.Crea Consortium was established by the OTB Group together with Dolce&Gabbana, Max Mara Fashion Group, Moncler Group, Prada Group, Ermenegildo Zegna Group and the coordination of the Italian National Chamber of Fashion (CNMI), in response to the European Directive on “Extended Producer Responsibility for Textile Waste (EPR)” and related national legislation currently being defined. The Re.Crea Consortium is active in the management of end-of-life textile and fashion products and in the promotion of research and development of innovative solutions to recycle materials.

Spreading a sustainability culture

The OTB Group recognises the fundamental role of education to reach the Sustainability Strategy targets. For this reason, we are promoting specific courses aimed at teaching sustainability principles to ensure its easier integration into the collections development.

Some companies of the Group have developed internal training activities for the Style and Product teams focused on Ecodesign and the principles of circular design, to ensure their integration from the earliest design stages.

Transparent communication & Customer Experience

Customer needs are key drivers of the OTB Group activities. For this reason, we aim at elevating the quality of our products and promoting services that make our customer experience unique. This is possible thanks to a transparent communication, aimed at promoting a cultural change