KEYWORD: SUSTAINABILITY«For Benetton social commitment is a return to its origins». Chiara Mio tells us about the company's Corporate Social Responsibility efforts.

VOICES

NUMBER 4 • MAY 2016

FABRICA’S TRADEMARK

Benetton’s communication research center was a protagonist at the latest Salone del Mobile in Milan, with its most recent projects, created in collaboration with some of the most important brands in the field.

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RISING HIGH IN A MILAN HIGH-RISE

On April 5th, United Colors of Benetton wowed the press with the presentation of its Fall/Winter 2016-17 collection in Torre Solaria, the highest residential building in Italy.

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POSITIVE THINKING (ALSO AT WORK)

PEOPLE

Over 400 people attended the first edition of the “Educate Children to Happiness!” workshop, focused on the theme of positive education. Our colleagues' impressions.

BENETTON'S INITIATIVES BRING COLOR TO THE COUNTRY. AND THE PROTAGONISTS ARE THE YOUNG DESIGNERS OF THE MEXICAN UNIVERSITY

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WEAVING THE FUTURE

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Curtains raised on the new Sisley Rich & Raw store in the Greek capital on April 13th

A LITTLE BIT OF PARIS IN ATHENS

G lyfada, a seaside district on the south side of Athens, is like a little corner of Paris. It is here,

in one of the most delightful parts of the city, that on April 13th a new Sisley Rich & Raw concept opened, with a formula inspired by the atmosphere of the 2003 Bernardo Bertolucci film The Dreamers, an evocative flashback to Paris at the time of the student protests.

Enthusiastic participationThe opening event was attended by 90 people, who were thrilled by

their experience in the new store - a true expression of the brand's authentic, contemporary nature - located on Aggelou Metaxa, one of the busiest shopping streets in the district. In addition to Brand Manager Paolo Battacchi, several personalities from the world of fashion - including bloggers, journalists and communications and advertising professionals - were present at the inauguration.One more tile is thus laid in the

group’s mosaic of stores - a total of 170 - in Greece, a country where our brands and products have always been held in high regard and whose faith in us has never failed, even when the economic crisis was at its peak.

The Sisley store window in Athens.Below: snap-shots of the April 13th

inauguration

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Two more important debuts for the loom-inspired retail concept store

T he On Canvas retail concept store shows no sign of slowing the pace of its expansion. In April, curtains were raised in two cities that - for historic reasons one and customer traffic generated the

other - take pride of place in the UCB global network: Prague and Arese.In the Czech capital, one of the most important tourist and cultural centers in the world, the store (the first On Canvas in the country) is situated in the heart of Na Prikope, the

road connecting Wenceslas Square and Republic Square: it is a perfect bridge between the old and the modern city, bringing together ancient palaces and luxury shops.The opening in Arese, however, is particularly significant for its location: the store is set in the former Alfa Romeo factory which has been converted into what its developers claim is the largest shopping center in Europe, an imposing building with over 200 shops where Benetton is present with a store measuring more than 400 square meters.

ISTANBUL’S GRAND BAZAARIN APRIL, BENETTON INAUGURATED A NEW ON CANVAS CONCEPT STORE IN THE TURKISH CITY, WHERE THE GROUP BOASTS A SOLID PRESENCE

From the historic Grand Bazaar to the modern Istinye Park Mall: in April Benetton celebrated the opening of a new flagship store in the most important Istanbul mall, a building that evokes the tradition of the famous covered market wanted by sultan Mohammed II. This inauguration joins those in Italy - in Milan and Venice - and in other locations around the world, including Moscow, Paris and Dubai, to mention a few. A loom weaving two continents togetherLocated on the ground floor of the Istinye Park Mall, the spaces of this new store were redesigned around the loom, the key element as it symbolizes the flexibility and aesthetics characterizing all On Canvas stores. About 370 square meters in size, the location offers a great shopping experience thanks to its large open space where the Spring/Summer 2016 collection is shown: garments and accessories for the whole family characterized by a wide range of colors and the juxtaposition of weaves and patterns.The new store is just the latest opened by Benetton in Turkey, boasts a strong thirty-year experience. The new Istanbul On Canvas is not just about fashion clothing for the public: it wants to put the customer at the core of a real shopping experience involving design, technology and emotions, in typical Benetton style.

PRAGUE AND ARESE

ON CANVAS ON A ROLL

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Arese

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Benetton takes center stage in the country: from the presentation of the Autumn/Winter collection to the “Tejiendo futuro” project dedicated to university students

Thanks to Benetton, the streets of Mexico City are bursting with color. On April 21st and 22nd, the city was

at the forefront of a series of events organised by our company. The first of these was the press presentation of the Autumn/Winter 2016-2017 collection, which took place in an apartment on the 14th floor of the Frisco Tower, where the space dedicated to the event was decorated as a studio for the presentation of the new UCB brand concept “Clothes for Humans”.

New Mexican eraBenetton was also in the classrooms, participating in the "Ibero Conference", hosted by the Iberoamerican University, during which John Mollanger – Benetton’s Chief Product & Marketing Officer – outlined the guidelines underpinning the Group’s new path as well as the strategies to obtain greater engagement with the younger generations. Of the strategies

MEXICO AND COLOR

presented, the “Tejiendo futuro” ("Weaving the future") initiative, which involved students from the Mexican university’s Graphic Design course, had a particularly strong impact.

With young people to “weave the future”In April, Benetton also raised the curtains on the renewed store - converted to the On Canvas format - in the Reforma 222 complex in Mexico City. As part of the opening event, young people were asked to make a poster (60x90cm) on the theme of "Color en la Ciudad" ("Color in the City"), using various techniques, including painting, illustration, photography and whatever else their creativity suggested. The project allowed space for interpreting how color could blend with the urban environment of the metropolis.From all of the works submitted by the students, 75 were selected; these then became part of an exhibition held inside the UCB shop, inside the

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Reforma 222 shopping center. The three best images will be printed on T-shirts and sold in-store. All proceeds will be donated to the “Casa Meneses” Foundation, a perfect example of colorful solidarity.

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The new UCB Fall/Winter 2016-17 collection was presented to the press in a Milanese apartment: a triumph of styles encompassing different moods

The new Benetton Fall/Winter 2016-17 collection for women, men and kids presented to the press

on April 5th in Milan is full of colors. In the magnificent scenery offered by the Torre Solaria – the highest residential building in Italy with a stunning view on the new Milan Porta Nuova neighborhood – the journalists were welcomed in an exhibition space created by Fabrica to reproduce, in the welcoming atmosphere of a Milanese apartment, our company’s style department, with worktables and real showrooms. The editors of the main Italian fashion magazines like Danda Santini for Elle, Antonella Antonelli for Marie Claire, Francesca Delogu for Cosmopolitan, Emanuela Testori for Amica, Silvia Grilli for Grazia, Maria Elena Viola for Gioia, Luca Dini for Vanity Fair, Annalisa Monfreda for Donna Moderna and Enrica Ponzellini for Vogue Bambini, attended the event together with representatives of the main national newspapers, like Corriere della Sera and La Repubblica.

“Vertical” collectionGarments and accessories were displayed over three floors of the building – from floor 32 to 34 – to introduce the new “Clothes for Humans” UCB brand concept. The itinerary was divided into “dress up”

CURTAINS RAISED

On Saturday, April 30th, in the shadow of Turin's famous Mole Antonelliana landmark

everything looked a bit more colorful. The city, the capital of the Piedmont region, was chosen as the first of the ten stages of the 2016 Italian Color Run, one of the most original sporting events in the world. And wherever you find color, sharing and athleisure (the pleasure to train with style or wear sports clothes) Benetton is there: this year it is the main sponsor of the event.

From the Village to the storePeople walking around Turin's center were treated to a unique sight: some 20,000 "athletes" covered from head to toe in 100% natural, colored powder running a 5 km course through the heart of the city, united by the passion for a healthy and active life. Benetton also took part in the event with a dedicated area inside the Color Run Village, where the participants could pick up branded gadgets, find inspiration from aphorisms posted on one of the walls and take selfies. Moreover the window display of the UCB store was dedicated to the event and the participants could find more surprises inside the store as well as appreciate the new Benetton Sport Collection - launched in April - which guarantees the best results in terms of performance and comfort.

THE COLORFUL WAVE STARTS IN TURINThousands of people covered in colorful powder made their way through the city. And Benetton was by their side

THE COLOR RUN

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(the most elegant pieces, dedicated to special occasions), “dress down” (informal casual Friday and weekend clothing) and “dress to move” (where outdoor and indoor soft sport activities have the priority), to create an ideal path through the different moods and themes of the Fall/Winter collections. For the day of the presentation, at least, the sky over Milan - which from the Torre Solaria seems a bit closer - was a bit more colorful.

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Professor at Venice’s Ca’ Foscari University and president of Benetton’s Sustainability Committee. We talked to her about Corporate Social Responsibility initiatives that involve our Group

To understand how much professor Chiara Mio cares about environmental and social sustainability issues, all

you have to do is ask her students at Ca' Foscari University in Venice. She possesses a broad curriculum and simply listing all her international collaborations would occupy most of the space dedicated to this interview. As a professor of business administration, she has studied and focused on sustainable development models for at least twenty years. What is her connection with Benetton? Stealing a few minutes from her busy schedule (but she kindly didn't point this out), in a telephone interview we asked her when - and how - it all began.

Professor Mio, when - and how - did you and Benetton cross paths?

and credibility, and the choice fell on me».

Considering your track record, the choice could not be called a risky one...«I must say that, for my part, I found Benetton to be particularly sensitive to social issues. You could say that the company has rediscovered a heritage of values that it has always had in its DNA since its foundation. Benetton has always preferred the great social battles over advertising campaigns for individual products, and many of these campaigns have justifiably become "historical". At the time this was a real revolution in communication methods. The company was also particularly concerned with the environment and this emerged clearly when its new headquarters was built: construction took account of variables that were seldom considered at the time, such

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THE SOCIAL STRUGGLES IN OUR DNA

CHIARA MIO

«We must go back to 2013. My university had organized a conference dedicated to the relationship between the fashion industry and sustainability, and among the guests was a delegation from Treviso. Our dialogue really began then. But it was in March of 2015 that we began a more permanent relationship, when the company asked me to chair its newly formed Sustainability Committee».

And what does this Committee do?«It is an organ that aims to make Benetton a fully sustainable company in each of its processes and whose members include the CEO, Marco Airoldi. Our task is not to outline an ad hoc strategy but rather to apply the values of sustainability to all activities in progress. The company's leaders wanted to appoint an external President to guarantee independence

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as energy impact, ergonomics and the use of light. So, for Benetton, this renewed social commitment is a return to basics».

In your experience, is it possible for a group the size of Benetton to minimize the impact of its activities through CSR projects alone? Isn't there a danger that it might be done solely for image reasons?«I personally do not believe in the 'happy decline' theory. The great challenge of our times is to ensure acceptable living conditions for all, without excluding anyone, but the instruments of change must necessarily come from large companies, because smaller ones can do little on their own. If Benetton has accepted this challenge, it means that they really believe in it. The important thing is not to stop at the factory gates, but to apply sustainability objectives to the entire life cycle of the product and try to educate consumers to cultivate awareness of the issues».

Let's talk about the initiatives undertaken by Benetton. Can you give us an overview?«Beginning with production, Benetton pays a great deal of attention to the conditions and the training of workers, especially those in developing countries, and to adhering to international safety standards. To give an example: I have recently returned from India where we organized an English course for all employees to be held four hours per month, during working hours. Another example is our Women Empowerment Program, a range of initiatives to promote - among others - female education and emancipation, which we believe to be among the main instruments of progress for many countries. Furthermore, for the last two years, we have been included in the Greenpeace list of cutting-edge brands using low-toxicity materials. We have banished angora; instead we use responsible wool... In short, we deal with all stages of the product, from the cradle to the grave».

And what about HR initiatives?«They are also important. It is true that their external impact is minor, but if each of us on 'the inside' is not committed, how can we be credible in the eyes of customers? What we are looking at is the total involvement of our employees. In the future we would like them to be the originators of initiatives. Among the ongoing activities I would like to mention the Welcome Back Mom programme for the gradual

Sergio Spiller, you have known our company for many years. How would you rate its sustainability efforts?«Over the years this issue has been the subject of much debate between the union and the company. We must recognise that significant progress has been made recently in this regard. The company is committed to responding consistently in the countries where it operates, adapting to the ILO Protocols against child labour, forced labour and safety, taking part in concrete initiatives in support of the Rana Plaza victims in Bangladesh and signing up to commitments towards safe work».

What are the key points of this new approach?«The company shares our belief that respect for human rights is an added value to consumers when they choose its products. A further evolving element is the monitoring of compliance with these commitments. We had asked that this task be carried out by independent organizations; the creation of the Sustainability Committee, chaired by a high profile figure like Dr Chiara Mio, was another step forward. As a union, we asked to participate in the Committee's work in order to create stronger links with union entities in countries where the company operates».

What is the role of trade unions in these issues?«Trade unions can engage with companies on different levels, from reporting and calling attention to problems to participating actively in efforts to manage and solve them. We believe the latter path is the one to follow, in the context of a continuous dialog that is both frank and in good faith. In addition, the union can nurture awareness to ethical issues, social responsibility and sustainability in those it represents. The implementation of the welfare plan for Benetton employees is proof that the quality of industrial relations between the company and the union is essential to meeting people's needs: we can both take credit for having identified this new frontier that will allow us to face new challenges».

THREE QUESTIONS FOR SERGIO SPILLERBenetton Group's National Coordinator for the Femca-Cisl trade union tells us about the relationship between the union and the company

reintegration of new mothers into the company, Ponzano Children – a kindergarten for our employees' children – and initiatives for the recycling of waste and the optimization of transport».

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Benetton per Te has opened the doors to Positive Education: over 400 colleagues have taken part

in eight editions of the "Educating Children to Happiness" workshop. At the opening ceremony our HR Director, Giuseppe Cavattoni, recalled how positivity should be valued not only in the context of a child's education, but as an attitude for dealing with work projects and the challenges of business, as well. Cavattoni also emphasised that the initiative represented a strong contribution towards our company's commitment in terms of Sustainability and Social Responsibility. The teachers, Marco Masella and Enrico Banchi - from the Scuola di Palo Alto, one of the most important business schools in Italy - spoke about the importance of positive emotions in increasing resilience, a view supported by the latest research in neuroscience, and how essential it is to build relationships of value. Both teachers emphasised how “positivity is contagious”, and this was clearly evident in the numerous comments from our colleagues who took part .

• I think it is possible to make the workplace an experience where, in addition to meeting the fundamental need of having a job, one is offered the opportunity to find answers to other needs that are more "personal," but which can be shared socially. Ermanno Zanatta

• A wonderful course, I' ll recommend it to all my colleagues! Lorenzo Dovesi

• I just wanted to express my gratitude for having been able to take part in

WELCOME POSITIVITY

this meeting. Thanks again for this training opportunity, I hope there will be others soon. Michela Liverotti

• The course was very interesting and I feel it was very useful for improving relationships with colleagues. Verena Marsura

• It was a wonderful afternoon. Marisa De Biasi

• It was a great moment of debate and encouragement, useful not only for those who have children (as in my case), but I think also for all of us with relevant insights and reflections on our daily work lives. Marisa Baggio

• "Happiness and positivity" as the basis for achieving any goal, in our private and business lives. Maria Volante

• I believe that speaking in within the company about positivity and enthusiasm gives us a better way of addressing any situation. Stefania Montirosso

• I think improvements in the environment and relationships within the company can lead to more efficient and effective work practices. Silvia Bottecchia

• I found the course so interesting that I wouldn't be able to decide which points not to continue

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More than 400 parents (and not only parents...) at "Educating Children to Happiness!"

researching on my own! Giuliana Zecchin

• I felt really happy! Federica Carraro• I really appreciated the ability to

talk, with extreme clarity and light-heartedness about a wide range of topics that, while always leading back to the main topic of children, also apply to the workplace and family settings. Barbara Maria Sette

Gabriella Valentinotti, Training & Development Manager, thanks everyone by welcoming Happiness into the company, and announces that a new cycle of initiatives focusing on positivity will start soon.

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"GET TO WORK" WITH ALMALAUREA

"AL Lavoro Milano" ("Get to Work, Milano") - the first of the six stages of AlmaLaurea's Career Day Tour, held on April 13th at Palazzo delle Stelline in Milan - was a great success for Benetton Group. At our stand we received over 500 requests, registered 208 participants and interviewed 400 students and graduates, both Italian and foreign. The AlmaLaurea project - which seeks to provide graduates with the means to find work placements, and so contributes to the enhancement of the human capital developed by universities - was an important meeting point between the approximately 5,000 participants and HR representatives of the largest Italian companies. Throughout the day, the students were able to get to know our brand's philosophy, our recruiting policies, and the various professional opportunities we offer, by enrolling in workshops and ad-hoc meetings. It was a unique opportunity for participants who came into direct contact with our Human Resource Management and, on the other hand, an important opportunity to strengthen our brand identity as an employer. Benetton Group will be present again in Milan on November 16th for the International Career Day.

SUCCESS OF THE CAREER DAY

FRANCHISING STORE MANAGERS AND CUSTOMERS AT THE COREOn April 12th and 13th, 21 Franchising Store Managers took part, for the first time, in a training course entirely dedicated to them. The two training days were held at our headquarters and focused on the attention that must be provided to customers who are shopping in the store. The course's main goals were to share the Franchising Store Manager’s main areas of responsibility, become familiar with and internalize Benetton's Golden Rules for sales, and "test" their ability to deliver key messages during in-store training sessions. A distinctive feature of the two days was the Benetton Experience during which Daniele Fregnan, Logistics Director, Paola Innocente, External Relations Supervisor, and Greta Gamba, External Relations Specialist, accompanied the Franchising Store Managers around the various offices

of our headquarters, retracing the company's history with a visit to the logistics area, historical archives and to the Studios.The training activities with these stores do not end here, but continue in the coming months with 25 daysof Store Lab: the in-store training that will involve the entire staff of the point of sale.

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The first phase of the Performing Up project, launched on April 6th and considered the pillar of the new Benetton People Strategy, has commenced. In order to support the resources involved in this first phase, the training sessions dedicated to "Goals Setting & Empowerment" were launched.Participants in the training program, about 80 employees from various corporate departments, analysed in-depth the details of the project itself, and focused in particular on some key concepts such as: what is Performance Management, how are goals defined, what are the SMART goals and how is our management model structured. The training activities, which started on April 27th and 28th, will continue through May and will involve 400 employees.

CORPORATE TRAINING PORTFOLIO 2016 IS TAKING OFF!

In April the CSP-Communication Skills Program, the training course on communications skills, inaugurated the 2016 Corporate Training Portfolio, the catalog of training courses dedicated to headquarters colleagues. Designed to meet the cross-training needs of various business functions, the 2016 Corporate Training Portfolio includes six different training courses in the Leadership and Management area, four independent modules from the Communication Skills Program in the Soft Skills area and four types of courses for the English and Linguistic Courses area. The main corporate training partner is the Luiss Business School, a high-

THE TRAINING PROGRAM FOR HEADQUARTERS EMPLOYEES IS LAUNCHING

level specialization and management consulting school which is a branch of the Luiss Guido Carli University in Rome. The language training on, the other hand, is offered in a collaboration with the British Institute's Levent School and is offered by mother-tongue teachers. About 60 people have already been involved in the early editions of the programs created in the Benetton Training Center: "Effective Communication", held by teacher Alberto Castelvecchi, "Relational Styles", held by teacher Giulio Carè, and the "Project Management Program", held by teachers Terenzio Paone, Rocco Corvaglia and Renato Bonanni.

PERFORMING UP: TRAINING PHASE LAUNCHED

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CREATIVITY ON DISPLAY

IDENTITY

Fabrica took part in the Milan’s Salone del Mobile presenting, along with other companies, some interesting projects

The Salone del Mobile (Milan Furniture Fair) and the events surrounding it - a true celebration of Italian and international creativity - are a fixture for Fabrica, Benetton Group's communication centre,

which has been participating in the Salone for many years. Fabrica was also a key player at this year's edition, held April 12-17, and in partnership with prestigious brands, it presented its latest creations.

DomusFabrica and United Colors of Benetton chose original ways to pay tribute to the thousandth edition of the historic architecture magazine Domus. Initiatives included: decorating the ten windows of Benetton's flagship store in Piazza Duomo; promoting an exhibition in the city about color, design and experimentation; and inviting some of the leading Italian and international design firms to customise a few of their products with Serenity and Rose Quartz, the Pantone® colors for 2016.

BeyondTogether with Veuve Clicquot, the historic champagne producer, Fabrica celebrated the 200th anniversary of the famous table de remuage, the table on which bottles are placed at an angle in order to obtain a clear and pure wine.

The result was Beyond, an exploration trail focused on the theme of travel, hosted in the Royal Pavilion of Milan's Centrale train station.

Earl and other initiativesTogether with Piaval, a company that produces seating, Fabrica presented Earl, a collection of innovative and sustainable furniture accessories made from wood. These were designed by Daniel Rous, a young British designer and scholar in Fabrica's Design department.Among many other events at the Salone where Fabrica was the star, there was also the "Design Parade", dedicated to design and organized by Seletti, as well as the show "W. Women in Italian Design", presented at Milan's Triennale design museum.