Climate Change Data

Environmental Metrics

ESG Focus Areas

• Supply Chain Sustainability
• Product Sustainability
• Employee Well-being
• Community Engagement

Environmental Achievements

• 100% green electricity in all operations
• Reduced total CO2e emissions by 17% from 2015 to 2019
• 97% of cotton sustainably sourced
• 66% of the 2020 collection made with more sustainable materials
• 90% of men's and boy's swim shorts made from recycled materials
• 77% of leather from LWG certified tanneries
• 63% of factories (all tiers) certified to environmental systems (Higg FEM, ZDHC, BEPI, Oekotex, LWG)
• Reduced waste by 10% in operations
• 25% increase in organic waste separation

Social Achievements

• Launched Responsible Buying Manual
• 80% of PPSA and PPA tool questions scored 3.5 or higher
• 63% of factories have good working conditions
• 93% WE Fashion remediation score for Transition Accord
• 45,000 workers in continuous training program
• 75% of employees are female, 38% of senior management is female
• 20,000 online courses followed by WE employees
• Donated more than 10,000 kg of samples to the Salvation Army
• 8,600 euro funding collected for the WE Get Together Foundation
• 45% of workers have access to the Transition Accord complaints mechanism
• 23% of factories in risk countries have an effective grievance mechanism

Governance Achievements

• Established a Diversity and Inclusivity committee
• Signed the Call to Action on human rights in Xinjiang
• Signed a commitment to end child labor by 2025

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic disruptions to supply chain and logistics
• Worker wage issues during lockdowns
• Risk of forced and bonded labor in various sourcing countries
• Risk of child labor in various sourcing countries
• Lack of transparency and effective grievance mechanisms in many factories
• Environmental risks related to materials and production processes

Mitigation Strategies

• Developed a Covid-19 action plan
• Extended payment terms (initially)
• Agreed not to renegotiate prices, apply cost compensation, negotiate discounts, or cancel orders
• Implemented a responsible exit strategy
• Published WE Forced Labour and Child Labour Policies
• Banned sourcing cotton from Xinjiang
• Engaged in projects to improve worker committees and address root causes of child labor
• Utilized multiple grievance mechanisms (Transition Accord, amfori BSCI, AGT)
• Collaborated with NGOs to address forced labor and child labor
• Implemented a new mapping tool to track lower-tier factories
• Increased use of sustainable materials and clean production techniques

Supply Chain Management

Responsible Procurement

• Responsible Buying Manual
• WE Code of Conduct
• Sustainable materials sourcing
• Factory compliance program

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Guiding Principles on Business and Human Rights, Sustainable Development Goals (SDGs), OECD Guidelines for Multinational Enterprises, ILO fundamental labour standards

Certifications: BSCI, BCI, LWG, SA8000, SMETA, SLCP, Higg FEM, ZDHC, BEPI, Oekotex 100, Oekotex Step, GRS, RCS, FSC

UN Sustainable Development Goals

• SDG 1
• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 10
• SDG 12
• SDG 13
• SDG 15
• SDG 17

WE Fashion's sustainability strategy and partnerships contribute to various SDGs through improved working conditions, sustainable materials, waste reduction, and community engagement.

Sustainable Products & Innovation

• Men's Fundamentals collection with 365-day guarantee
• Swim shorts made from recycled materials

Environmental Metrics

ESG Focus Areas

• Working conditions
• Sustainable products and processes
• Optimizing the way we work
• Contributing to society

Environmental Achievements

• Reduced CO2 emissions from headquarters and stores by 40% compared to 2019.
• Sourced 100% of cotton as Better Cotton, saving an estimated 2 billion liters of water and 1206 kg of pesticides.
• Increased use of recycled polyester in collections from 1.4% (2020) to 7.1% (2022).
• 100% of leather used came from LWG-certified tanneries.

Social Achievements

• 73% of products came from factories with 'good' working conditions.
• 98% of products came from factories free of child labour, discrimination, and gender issues.
• 66% of management positions filled by women.
• Launched Health & Wellbeing programme for employees.
• Donated €79,210 to dozens of different charities through the WE® Get Together Foundation.

Governance Achievements

• Signed the Transparency Pledge and published factory list online.
• Participated in multi-stakeholder initiatives (International Accord, Better Cotton, Sustainable Apparel Coalition, etc.).
• Established a D&I Council.

Climate Goals & Targets

Environmental Challenges

• Supply chain complexities and traceability challenges.
• Ensuring living wages across the supply chain.
• Addressing risks related to forced labor and human rights violations (e.g., in Myanmar, Xinjiang).
• Reducing waste despite post-COVID increase.
• Achieving ambitious targets for sustainable materials and cleaner production processes.

Mitigation Strategies

• Mapping lower-tier facilities and engaging with suppliers.
• Participating in projects focused on social dialogue and living wages (Amplify Project, Factory Support Programme).
• Implementing policies and enhanced monitoring for forced labor and human rights.
• Revising waste reduction plan and banning paper coffee cups.
• Updating sustainable materials goals and working with suppliers on cleaner production techniques.

Supply Chain Management

Supplier Audits: 187 active factories in database, audits conducted using BSCI, SA8000, SEDEX SMETA, WRAP, SLCP, FSLM HIGG

Responsible Procurement

• WE® Code of Conduct, ethical buying practices manual, focus on social performance in supplier relations

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: OECD Guidelines for Multinational Enterprises, UN Guiding Principles on Business and Human Rights, Sustainable Development Goals (SDGs), Higg BRM, FEM, FSLM

Certifications: BSCI, SA8000, SEDEX SMETA, WRAP, SLCP, FSLM HIGG, GOTS, OCS, Oekotex 100, Oekotex Steps, BEPI, LWG, ZDHC, GRS, Fairtrade, Better Cotton, FSC

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 1, 4, 5, 6, 8, 10, 12, 13, 15, 17

Goals and actions contribute to various SDGs through improved working conditions, sustainable materials, waste reduction, GHG emission reduction, community investment, and transparency.

Sustainable Products & Innovation

• Products made with recycled materials, sustainable cotton, certified wool, LWG-certified leather

Awards & Recognition

• Not disclosed