Climate Change Data

Environmental Metrics

ESG Focus Areas

• People
• Planet
• Commitment

Environmental Achievements

• Reduced CO2 emissions by 395,097 kilograms by using organic cotton
• Saved 922,052,677 liters of water by using organic cotton
• Kept 19,040,840 square meters of earth healthy through organic farming
• Developed Coreva™ sustainable and biodegradable denim
• Developed organic and natural Nature Shell
• BetterRecycling collection saved 12.8 tons of leftover cuttings and yarn scraps
• Achieved carbon neutrality for operations

Social Achievements

• Launched Innovations for Tomorrow Award
• 95.31% of partners audited or visited despite the pandemic
• Leader Status at Fair Wear Foundation (FWF)
• Implemented Fair Wear Foundation Code of Labour Practices
• Supported the “Good Clothes, Fair Pay” campaign
• New Employee Training on hessnatur's values and social standards

Governance Achievements

• Published a new microsite with sustainability content
• GOTS and Green Button certifications

Climate Goals & Targets

Environmental Challenges

• Pandemic-related travel restrictions impacting audits and on-site visits
• Challenges in ensuring living wages and health and safety in some high-risk countries
• Addressing complaints regarding overtime, harassment, and leave policies in some production facilities

Mitigation Strategies

• Increased digital communication, digital factory tours, and regular calls to maintain monitoring during travel restrictions
• Close cooperation with FWF and other brands to address social standard issues
• Implementation of corrective action plans, trainings, and on-site visits to address complaints
• Development of individual solutions with partners to improve working conditions

Supply Chain Management

Supplier Audits: 95.31% in 2021/2022

Responsible Procurement

• Fair prices
• Reasonable lead times
• Close cooperation with suppliers
• Supplier guideline with environmental, delivery, and social standards

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, Fair Wear Foundation Code of Labour Practices, UN's Universal Declaration of Human Rights, ILO Conventions

Certifications: GOTS, Green Button

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 4 (Education)
• SDG 6 (Clean Water)
• SDG 13 (Climate Action)
• SDG 15 (Life on Land)

Supporting projects in Mongolia that contribute to sustainable pasture management, tree planting, community production, and marketing; improving water supply; sequestering CO2; and establishing a tree nursery.

Sustainable Products & Innovation

• Coreva™ denim
• Nature Shell
• BetterRecycling collection

Awards & Recognition

• Bundespreis ecodesign
• German Brand Award 2022
• Red Dot Design Award 2022

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Increased share of natural fibers to 99.6% (from 99.5% in 2021/22)
• Increased share of mono-materials to 69.3% (from 66.8% in 2021/22)
• Launched secondhand platform and take-back service
• Launched online Repair & Care Guide
• BetterRecycling program saved 9.2 tons of textile waste
• Launched Cradle-to-Cradle certified sweat collection
• Reduced CO2 emissions by over 270,800 kg by using organic cotton
• Saved over 631,974,307 liters of water by using organic cotton
• Preserved over 13,050,579 square meters of healthy earth by using organic cotton

Social Achievements

• Launched Innovations for Tomorrow Award
• 74% of employees are women, 60% of executive management are women
• Named a kununu Top Company in 2022 and 2023
• Improved social standards in supply chain through partnerships and monitoring
• No complaints received during the year under review
• Various trainings and capacity building initiatives for suppliers and employees

Governance Achievements

• Regular certifications and audits by non-profit and government organizations
• Transparent communication with stakeholders
• FWF Brand Performance Check confirmed 'leader' status
• Zero-tolerance policy towards corruption

Climate Goals & Targets

Environmental Challenges

• Payment of living wages in various countries
• Effective worker representation in some countries
• Risks to workers' health and safety
• Freedom of association limitations in some countries
• Excessive overtime in some countries
• Forced labor risks in some countries
• Discrimination in the workplace
• Migrant worker vulnerabilities
• Social dialogue challenges

Mitigation Strategies

• Close cooperation with partners to develop individual solutions
• Regular audits and factory visits
• FWF Worker Education Program (WEP)
• Internal grievance mechanisms
• Support for worker representatives' elections
• Training on communication and problem-solving
• Addressing capacity constraints and order management
• Increased wage levels
• Gender data project in Tunisia
• Proactive approach to identifying and addressing risks

Supply Chain Management

Responsible Procurement

• Careful selection of partners
• Fair prices
• Timely payments
• Annual assessment of suppliers
• Zero-tolerance for corruption

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, OECD Guidelines for Responsible Corporate Conduct

Certifications: GOTS, FSC, Oeko-Tex, Fair Trade, SA8000, amfori BSCI, WFTO, WRAP, Bluesign, ICS, Higg

Sustainable Products & Innovation

• Nature Shell
• Coreva™ denim
• BetterRecycling collection
• Cradle-to-Cradle certified collection

Awards & Recognition

• Bundespreis Ecodesign
• German Brand Award
• Red Dot Design Award