BY EMMANUEL OGBONNA

Italian luxury house Salvatore Ferragamo has taken a significant step toward greater supply chain transparency, announcing that it can now identify the country of origin for a large portion of the leather used in its footwear and handbags. Industry specialists describe the move as an important, though preliminary, milestone in the broader push for traceability within the global fashion sector.

The development comes as European regulators intensify scrutiny of sustainability practices, introducing a sweeping framework that will require fashion companies to account for the environmental and social impact of their products across the entire lifecycle. From raw material sourcing to disposal or recycling, brands operating in the European Union are facing mounting obligations to demonstrate accountability and transparency.

Ferragamo, a family-influenced yet publicly listed company, has published sustainability reports for more than a decade. However, its 2025 report, released at the end of March, marks the first time the company has disclosed detailed metrics on material traceability. The focus on leather is particularly notable, as industry experts widely consider it one of the most complex materials to trace due to the fragmented and multi-layered nature of its supply chain.

James Ferragamo, the group’s chief transformation and sustainability officer and grandson of founder Salvatore Ferragamo, said the company has worked to integrate more responsible practices into its use of leather. He emphasized that many of the tanneries supplying the brand operate under strict environmental and ethical standards, including water management controls, labor protections, and procurement policies aimed at avoiding links to deforestation or poor animal welfare practices.

Within the fashion industry, traceability is increasingly viewed as a foundational requirement rather than a final objective. Francesca Rinaldi, a sustainability specialist at Bocconi University, noted that while tracing materials is essential, it does not in itself guarantee sustainability. Instead, it provides the necessary visibility for companies to implement circular practices and verify claims about environmental impact.

Rinaldi warned that companies lacking insight into their supply chains risk reputational damage and accusations of greenwashing. As regulatory frameworks evolve, the expectation is that brands will move beyond basic mapping toward full circularity—extending product lifespans through repair, reuse, recycling, and responsible end-of-life management.

The European Union is also introducing measures to curb waste, including restrictions on the destruction of unsold goods for larger companies. These policies are part of a broader effort to reshape the fashion industry into a more resource-efficient and environmentally accountable sector.

Founded in 1927 in Florence, Ferragamo has long been synonymous with craftsmanship in footwear and leather goods. Salvatore Ferragamo established the brand after gaining recognition in Hollywood as a shoemaker to prominent film stars, including Marilyn Monroe and Judy Garland. The company’s early history was shaped by material shortages during World War II, prompting creative experimentation with alternatives such as cork soles and unconventional fibers.

Today, footwear and leather goods remain at the core of Ferragamo’s business, accounting for the vast majority of its revenue. In 2025, the company reported sales approaching €1 billion, with these categories representing roughly 86% of total turnover.

Efforts to improve traceability have been incremental but deliberate. The company initially focused on the calf leather used in its signature Fiamma handbag, mapping its journey from animal breeding through to final assembly.

Building on that initiative, Ferragamo expanded its efforts in 2025 by collaborating with key tanneries responsible for the majority of its leather sourcing. Through supplier declarations and internal verification processes, the company now says it can trace more than 80% of its leather to its country of origin, with most materials sourced from Europe.

Davide Triacca, the group’s sustainability director, acknowledged that technological limitations still prevent full traceability back to individual farms. Instead, the company has relied on a combination of supplier engagement and documentation to build a clearer picture of its supply network.

When factoring in other materials such as cotton, silk, and nylon, Ferragamo reports that over 80% of its inputs are certified according to third-party sustainability standards. Even so, experts caution that country-level traceability does not equate to a complete chain-of-custody system, and therefore represents an early stage in the broader evolution toward transparency.

Beyond traceability, Ferragamo has invested in material innovation as part of its sustainability strategy. Previous initiatives include the development of textiles derived from citrus byproducts and the introduction of products made with bio-based nylon sourced from castor oil. More recently, the company launched collections featuring vegetable-tanned leather and lower-impact dyeing processes.

Executives say experimentation remains central to the brand’s long-term approach, even when new materials are not immediately viable for large-scale production. The strategy reflects a broader industry shift toward research-driven sustainability, as fashion houses balance heritage craftsmanship with the demands of a rapidly changing regulatory and environmental landscape.

Original article