Climate Change Data

Nakdcom One World AB

Climate Impact & Sustainability Data (2020-2030, 2021, 2022)

Reporting Period: 2020-2030

Environmental Metrics

Total Carbon Emissions:69514 tCO2e/year (2020)
Scope 1 Emissions:100 tCO2e/year (2020)
Scope 2 Emissions:1770 tCO2e/year (2020)
Scope 3 Emissions:69327 tCO2e/year (2020)

ESG Focus Areas

  • Climate Change

Climate Goals & Targets

Medium-term Goals:
  • Reduce absolute climate emissions by 50% by 2030

Environmental Challenges

  • Substantial environmental impact of the fashion industry
  • High emissions from raw materials and production
Mitigation Strategies
  • Reduce absolute climate emissions by 50% by 2030 across the value chain
  • Decoupling growth from volume
  • Increase full-price sell-through rate
  • Lower emissions in the production of new products
  • Increase circular business solutions
  • Lower overstock

Supply Chain Management

Responsible Procurement
  • Support tier 1 suppliers to change to renewable electricity
  • Increase low-impact fibers (organic, recycled, FSC-certified)
  • Move towards better dyeing processes (continuous and solution dyeing)
  • Increase share of fabric mills using renewable energy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Greenhouse Gas (GHG) Protocol Corporate Standard, Greenhouse Gas (GHG) Protocol Scope 2 Guidance, Greenhouse Gas (GHG) Protocol Corporate Value Chain (Scope 3), Swedish Textile Initiative for Climate Action (STICA)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:65,798 tCO2e/year
Scope 1 Emissions:8.8 tCO2e/year
Scope 2 Emissions:41 tCO2e/year
Scope 3 Emissions:65,749 tCO2e/year
Waste Generated:1,756 tons/year
Carbon Intensity:5.4 kg CO2e per product sold.

ESG Focus Areas

  • Circularity
  • Climate action
  • Sustainable products
  • Diversity and inclusion

Environmental Achievements

  • Decreased absolute emissions by 5%, despite a 22.9% business volume growth.
  • Reduced emissions per product sold by 28%.
  • Increased share of more sustainable materials to 63% of all new products (44% by weight).
  • 100% of shipping bags made from recycled plastics.
  • 87% of waste recycled.

Social Achievements

  • Launched NA-KD Circle, a platform for selling and buying pre-loved NA-KD items.
  • Joined the International Accord for Health and Safety in the textile and garment industry.
  • Improved employee satisfaction to 7.4 out of 10.
  • Launched a new revised internship program.
  • Updated internal Code of Conduct with mandatory training for all staff.

Governance Achievements

  • Updated internal Code of Conduct.
  • Implemented a whistleblower policy, process, and tool.
  • Established an external advisory board, a “Creators’ Council”.

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero emissions before 2050.
Medium-term Goals:
  • Reduce absolute emissions by 50% by 2030.
Short-term Goals:
  • Enable our customers to prolong the life of five million garments by 2025.
  • Reduce emissions from our own operations by 80% by 2025.
  • Reduce emissions by 50% per product sold by 2025.
  • Use 100% more sustainable materials in all denim by 2022.
  • Have 100% circular packaging by 2025.
  • Have 50% of product materials from recycled materials by 2025.
  • Reuse or recycle 100% of packaging materials by 2025.
  • Have 100% of production made in tier 1 factories that work with environmental and social performance according to industry standards by 2025.
  • Reach full supply chain transparency for at least 80% of our production by 2025.
  • 80% of customers perceive NA-KD as “celebrating equality & diversity” by 2025.
  • Factories representing at least 50% of our spend enrolled in concrete social sustainability initiatives by 2025.
  • Factories representing 80% of our spend showing high performance in social audits by 2025.

Environmental Challenges

  • Increased costs and price volatility of raw materials.
  • Supply chain disruptions due to extreme weather events and social unrest.
  • Changing consumer attitudes and purchasing behavior.
  • Energy price increases.
  • Shortage of recycled materials.
  • PR risk if supply chain working conditions are not managed well.
  • Difficulties in recruitment and retention due to potential negative PR events.
  • Legal risks if social working conditions are not managed well in own operations.
  • Financial risks if working conditions are not managed well and a PR crisis leads to loss of sales.
  • Material supply shortage due to working conditions in supply chains.
  • New and rapidly changing legal and regulatory landscapes.
  • Lack of harmonisation in legislation.
  • Changes in regulations impacting how we work with influencers.
  • Insecure supplier relationships following delayed payments.
  • Financial risks: price on carbon / import tax on carbon to Europe / textile tax.
  • Legal and PR risks if we do things wrong.
Mitigation Strategies
  • Prepare for price fluctuations in budgets. Increase variety of more sustainable materials.
  • Nearshoring manufacturing.
  • Alternative business models (NA-KD Circle, rental).
  • Improve planning and buying accuracy.
  • Proactive agreements for own energy supply and increase own production of renewable energy.
  • Continue to proactively look for new innovative alternatives to polyester.
  • Continue with risk-based human rights due diligence through social audits.
  • Communicate transparently on our actions, challenges and progress.
  • Continue to train our managers on internal policies. Launch of managerial handbook.
  • Execute on our strategy for supply chain traceability.
  • Monitor legal and regulatory developments closely.
  • Monitor development closely.
  • Continued close, transparent and proactive dialogue with all our suppliers.
  • Monitor development closely and work to move away from carbon-intense materials and production processes.
  • Secure anti-corruption training of employees.

Supply Chain Management

Supplier Audits: 143 audits in 2021 (87.25% of business volume).

Responsible Procurement
  • amfori BSCI Code of Conduct.
  • Higg Index FEM and FSLM.
  • Supplier Code of Conduct.
  • Restricted Substances List.
  • Material Ethics & Animal Welfare Policy.

Climate-Related Risks & Opportunities

Physical Risks
  • Higher temperatures and water shortages affecting raw material supply.
Transition Risks
  • Energy price increases.
  • Shortage of recycled materials.
  • Price on carbon, import tax on carbon, textile tax.
Opportunities
  • Alternative business models (NA-KD Circle, rental).

Reporting Standards

Frameworks Used: GRI Standards “Core” option

UN Sustainable Development Goals

  • Goal 5: Gender equality
  • Goal 8: Decent work and economic growth
  • Goal 12: Responsible consumption and production
  • Goal 13: Climate action

NA-KD's initiatives contribute to these goals through various programs and actions detailed in the report.

Sustainable Products & Innovation

  • Herbal/vegetable dye denim
  • Natural clay-based dyes
  • Swimwear in recycled ocean plastics
  • Naia
  • Hemp (and linen)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:46,062 tCO2e/year
Scope 1 Emissions:8.9 tCO2e/year
Scope 2 Emissions:37.5 tCO2e/year
Scope 3 Emissions:46,015 tCO2e/year
Renewable Energy Share:2.7%
Waste Generated:1,295 tons/year
Carbon Intensity:4 kg CO2e per product sold in 2022.

ESG Focus Areas

  • Climate action
  • More sustainable materials
  • Transparency
  • Circular products and business models
  • Diversity and inclusion
  • Female empowerment

Environmental Achievements

  • Reduced absolute emissions by 35% since 2020 while maintaining turnover.
  • Reduced emissions per product sold by 27% in 2022 compared to 2021.
  • Increased fossil-free deliveries to 21%.

Social Achievements

  • Launched NA-KD Circle, a second-hand marketplace.
  • Improved employee Net Promoter Score (eNPS) from -11 to 18.
  • Mapped supply chain worker wages and set a living wage strategy.

Governance Achievements

  • Updated internal Code of Conduct and provided training to 82% of employees.
  • Implemented a safety representative group, safety committee, and crisis group.
  • Joined the PFAS Movement.

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050.
Medium-term Goals:
  • Reduce absolute emissions by 50% by 2030 (compared to 2020).
  • Have 100% organic, recycled, or lower-impact materials in all products by 2030.
  • Have 75% of production volume made with renewable energy by 2030.
  • Have 75% of last-mile truck deliveries fossil-free by 2030.
  • Reduce emissions by 45% from product materials by 2030.
  • Have 20% of turnover generated from circular business models by 2030.
  • 50% of business volume produced in high-performing factories by 2025.
Short-term Goals:
  • Reduce emissions from own operations by 80% by 2025 (compared to 2020).
  • Reduce emissions by 50% per product sold by 2025 (compared to 2020).
  • Reach full supply chain transparency for 80% of production by 2025.
  • Have 100% circular packaging by 2025.
  • 80% of customers perceive NA-KD as “celebrating equality & diversity” by 2025.

Environmental Challenges

  • Increased costs and price volatility of raw materials.
  • Supply chain disruptions due to extreme weather events.
  • Changing consumer attitudes and purchasing behavior.
  • Energy price increases.
  • Shortage of recycled materials.
  • PR risk if supply chain working conditions are not managed well.
  • Difficulties in recruitment and retention due to potential negative PR events.
  • Legal risks if social working conditions are not managed well in own operations.
  • Financial risks if working conditions are not managed well and a PR crisis leads to loss of sales.
  • Material supply shortage due to working conditions in supply chains.
  • New and rapidly changing legal and regulatory landscapes.
  • Lack of harmonisation in legislation.
  • Changes in regulations impacting how we work with influencers.
  • Insecure supplier relationships following delayed payments.
  • Financial risks: price on carbon / import tax on carbon to Europe.
  • Legal and PR risks if we do things wrong.
Mitigation Strategies
  • Prepared for price fluctuations in budgets. Increased variety of more sustainable materials.
  • Nearshoring manufacturing to reduce transportation risks.
  • Opportunity for alternative business models (second-hand, rental).
  • Proactive agreements for own energy supply and increased renewable energy production.
  • Proactively looking for new innovative alternatives to recycled polyester.
  • Risk-based human rights due diligence through social audits.
  • Transparent communication on actions, challenges, and progress.
  • Training of managers on internal policies. Continuous Code of Conduct training.
  • Supply chain traceability to identify raw material origin and secure diverse sourcing.
  • Monitoring legal and regulatory developments closely. Executing on sustainability strategy.
  • Monitoring legal and regulatory development closely, and advocating for harmonised legislations.
  • Monitoring development closely.
  • Close, transparent, and proactive dialogue with suppliers on payment terms.
  • Monitoring development closely and working to move away from carbon-intense processes.
  • Anti-corruption training of employees. Continuous Code of Conduct training.

Supply Chain Management

Supplier Audits: 92 audits in 2022, covering 82% of spend.

Responsible Procurement
  • amfori BSCI Code of Conduct
  • Living wage strategy
  • Environmental Performance Program using Higg Index

Climate-Related Risks & Opportunities

Physical Risks
  • Higher temperatures and water shortages affecting raw material supply.
  • Extreme weather events disrupting manufacturing and distribution.
Transition Risks
  • Energy price increases.
  • Shortage of recycled materials.
  • Changes in consumer attitudes.
Opportunities
  • Alternative business models (second-hand, rental).
  • Increased renewable energy use.

Reporting Standards

Frameworks Used: GRI Standards

Third-party Assurance: EY (Swedish Annual Accounts Act compliance only)

UN Sustainable Development Goals

  • Goal 5: Gender equality
  • Goal 8: Decent work and economic growth
  • Goal 12: Responsible consumption and production
  • Goal 13: Climate action

NA-KD's initiatives contribute to these goals through various programs and actions.

Sustainable Products & Innovation

  • NA-KD Reborn collection using innovative materials.
  • Patchwork denim collection from leftover fabrics.