Climate Change Data

Environmental Metrics

ESG Focus Areas

• People
• Planet
• Product
• Progress

Environmental Achievements

• Climate Neutral certified
• Reduced total greenhouse gas footprint in line with Science-based Targets for a 1.5C pathway
• Launched RefRecycling, a takeback and collection program

Social Achievements

• 100% of manufacturing partners will have fair compensation and worker engagement programs
• Implemented sustainability scorecards and activation plans within each department
• Created, published, and rolled out our company-wide Inclusion Philosophy

Governance Achievements

• Publish The Sustainability Report quarterly
• Align strategy & The Sustainability Report with Sustainable Development Goals
• Completed Circulytics scorecard and baseline report

Climate Goals & Targets

Environmental Challenges

• Reducing Scope 3 emissions
• Ensuring living wage for all direct teams
• Achieving 100% traceability of Tier 1 & Tier 2 suppliers

Mitigation Strategies

• Developing offset projects that directly impact our supply chain
• Implementing worker wellbeing and gender equality initiatives
• Scaling traceability software solutions

Supply Chain Management

Responsible Procurement

• Reformation Fiber Standards
• Restricted Substance List (RSL)
• Fair compensation and worker engagement programs

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB, Sustainable Development Goals

Certifications: Climate Neutral Certified, FSC

Environmental Metrics

ESG Focus Areas

• Circularity
• Climate Positive
• Social Responsibility

Environmental Achievements

• 97% of materials used were recycled, regenerative, or renewable
• 39% of stuff made was textile-to-textile recyclable through RefRecycling
• Reduced CO2e lbs per unit to 2431 (missed target due to improved methodology and increased production in some categories)
• Saved 80,436 metric tons of CO2e and 7,554 million gallons of water compared to conventional clothes
• 82% of dyers and printers have a clean chemical certification
• 67% of garments are designed for low-impact care
• Recycled 23,668 lbs of manufacturing waste from the Ref Factory (1.07 MT of CO2e)
• Avoided emissions of 237 MT of CO2e since the launch of the thredUP program

Social Achievements

• Launched Hemster, altering over 9,946 items and repairing 822 items
• Resold or recycled over 332,703 garments via partnership with thredUP
• 94% of Tier 1 facilities maintained a “Green” or “Yellow” rating in supplier audits
• Increased employee hourly rates to meet Living Wage for US Employer standards
• Added company-paid Short Term Disability insurance and improved healthcare benefits for part-time employees
• Donated $35,550 to Accelerating Circularity and supported local environmental non-profits

Governance Achievements

• 100% of Tier 1 suppliers were audited in 2023
• Expanded supplier assessment requirements to Tier 2 in 2023
• Aligned with the Transparency Pledge and participating in the Open Supply Hub
• Signed onto the Call to Action by The Coalition to End Forced Labour in the Uyghur region

Climate Goals & Targets

Environmental Challenges

• Fiber innovations taking longer to scale than expected
• Difficulty hitting absolute emission reduction targets for direct energy use (Scope 1 & 2)
• Scaling up silk alternatives
• Increase in conventional cashmere sourcing
• Challenges in reducing transportation emissions due to real-time order adjustments
• Limited impact data for silk
• Need to replace polybags in packaging with a 100% plastic-free solution
• Participation in thredUP program dropped initially due to a new consignment model

Mitigation Strategies

• Created Ref’s Circular Design Guide
• Launched new styles using recycled and next-gen fibers (MWool®, Naia™ Renew, Naia™ Renew ES)
• Teamed up with Reverse Resources to recycle manufacturing waste
• Launched The Footwear Collective to address circularity challenges in footwear
• Focus on energy efficiency in facilities and electrification of infrastructure in new stores
• Investing in fiber innovations (Kintra Fibers, Rubi Labs)
• Working with California Cotton & Climate Coalition (C4) on regenerative farming
• Using NATIVA™ regenerative wool
• Organized a coalition to improve lifecycle assessment data for silk
• Launched Ref x TENCEL™ collection
• Created an internal transportation report and onboarded a third-party warehouse in the Netherlands
• Identified opportunities to shift from air to ocean freight
• Implemented Factory Forward program to support supplier carbon reduction
• Working with South Pole to provide suppliers with tools to source Energy Attribute Certificates (EACs)
• Created an internal green business checklist to expand Green Business Certification across stores
• Upgraded company van to an electric vehicle and provided EV charging spots for employees
• Continued recycling factory waste and growing resale program

Supply Chain Management

Supplier Audits: 100% of Tier 1 suppliers audited annually, 15% of Tier 2 suppliers audited in 2023

Responsible Procurement

• Code of Conduct
• Third-party social assessments
• Factory Forward program
• Higg FEM assessments
• Better Buying™ purchasing practices surveys

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products
• Scaling of recycled and regenerative materials

Reporting Standards

Frameworks Used: Science Based Targets initiative (SBTi), SASB, UN SDGs, Higg FEM, Higg BRM, Textile Exchange's Corporate Fiber & Materials Benchmark (CFMB), Circulytics (discontinued)

Certifications: Climate Neutral Certified, Green Business Certified (6 California stores and corporate office)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Aligned sustainability framework with UN SDGs

Sustainable Products & Innovation

• Ref x TENCEL™ collection
• 90% recycled cashmere sweaters
• Recycled cashmere and organically grown cotton sweaters

Awards & Recognition

• Biodiversity and Water Award (CNMI Sustainable Fashion Awards 2023)
• Best Carbon Footprint Initiative (Drapers Sustainable Fashion Awards)
• Top score in Remake’s Fashion Accountability Report

Environmental Metrics

ESG Focus Areas

• Circularity
• Climate Positive
• Social Responsibility

Environmental Achievements

• 98% of materials used are recycled, regenerative, or renewable
• 54% of products made are textile-to-textile recyclable through RefRecycling
• 48% CO2 savings
• 59% Water savings
• 94% of Tier 1 facilities maintain a “Green” or “Yellow” rating in supplier audits
• 87% of dyers and printers have a clean chemical certification
• 79% of garments are designed for low-impact care
• 100% of energy used in factory, offices, and retail facilities offset by renewable energy credits
• 208,003 lbs of manufacturing waste recycled (0.36 MT of CO2e saved)
• Avoided emissions since launch of thredUP program = 254 MT of CO2e

Social Achievements

• Launched Climate Tees, donating 50% of proceeds ($46,048) to Accelerating Circularity
• Partnership with Homeboy Threads to divert manufacturing waste
• Repaired or altered almost 20,000 items through Hemster
• Over 123,000 garments resold or recycled via partnership with thredUP
• RefRecycling program diverted over 3,500 pounds of clothing from landfill
• 84% of employees strongly agree they are proud to work at Reformation
• 81% of employees strongly agree they would recommend Reformation as a great place to work
• 75% of employees strongly agree their manager shows genuine interest in their career aspirations
• $25,000 donation to Vote.org through campaign with Monica Lewinsky

Governance Achievements

• Joined Ellen MacArthur Foundation’s Network and participating in The Fashion ReModel project
• Climate Neutral Certified
• Transparency Pledge signatory
• Participating in Open Supply Hub (OS Hub)
• Signed Call to Action by The Coalition to End Forced Labour in the Uyghur region
• 100% traceability into Tier 1 & 2 suppliers

Climate Goals & Targets

Environmental Challenges

• Gaps in business model, operations, and product for achieving circularity (identified 12 areas for focus)
• Need to scale recycled & next-gen materials
• Supplier Renewcell bankruptcy impacting Circulose™ sourcing
• Complexity of shoe recycling hindering circularity efforts
• Recycling manufacturing waste (10-20% of fabric roll)
• Finding a 100% plastic-free packaging solution
• Limited impact data for silk
• High carbon footprint of virgin cashmere
• Transportation emissions (26% of total emissions last year)
• Reducing emissions from supply chain (majority of total carbon footprint)

Mitigation Strategies

• Created Ref’s Circular Design Guide
• Increased sourcing of deadstock materials (14% YTD, up from 7.5% last year)
• Increased use of Naia™ Renew (28% of silk/silk-like sourcing, up from 18% last year)
• Maintained Circulose™ orders despite supplier bankruptcy
• Launched The Footwear Collective (TFC) to address shoe recycling
• Partnered with Reverse Resources to map textile waste streams and connect to recycling networks
• Participating in SMEP program for textile waste management in Pakistan
• Switched to 100% recycled plastic bags with biodegradable polymer (BDP)
• Testing FSC™ certified paper bags for shipping
• Working with suppliers to implement recycling solutions by 2030
• Introduced recycled cashmere sweaters and yarn
• Using FibreTrace technology for supply chain visibility
• Working with California Cotton & Climate Coalition (C4)
• Sourcing NATIVA™ regenerative wool
• Organized a coalition to improve lifecycle assessment of silk
• Task force to reduce transportation emissions by shifting to ocean freight
• Factory Forward program to support supplier carbon reduction
• Using Higg Facility Environmental Module (FEM) and Apparel Impact Institute (AII) resources

Supply Chain Management

Supplier Audits: 94% of Tier 1 facilities maintain a “Green” or “Yellow” rating

Responsible Procurement

• Code of Conduct
• Third-party social assessments
• Factory Forward program
• Better Buying™ purchasing practices surveys
• Farm-forward programs (NATIVA™, FibreTrace)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Science Based Targets initiative (SBTi)

Certifications: Climate Neutral Certified, bluesign® system partner

Sustainable Products & Innovation

• Recycled cashmere sweaters
• Swimwear made with regenerated nylon and plant-based fiber
• Sunglasses made with plant-based and biodegradable materials