Climate Change Data

Environmental Metrics

ESG Focus Areas

• Ethical Sourcing
• Climate Action
• Environmental Responsibility
• Community Engagement

Environmental Achievements

• Initiated roll-out of energy-efficient LED lighting across store network

Social Achievements

• 100% of Tier 1 and 2 factories audited
• Updated Supplier Code of Conduct
• Provided Modern Slavery training to key teams
• 70% of team members are women, with 67% in senior leadership positions

Governance Achievements

• Reviewed and updated corporate governance policies and charters in preparation for IPO

Climate Goals & Targets

Environmental Challenges

• COVID-19 disruptions and multiple lockdowns impacting sales and operations
• Supply chain disruptions early in the financial year

Mitigation Strategies

• Nimble response to changing consumer preferences
• Increased direct sourcing to improve margins and offset third-party brand disruptions
• Negotiated $1.4 million rent concessions
• Launched Ship from Store and Click & Collect to support online sales growth

Supply Chain Management

Supplier Audits: 100% of Tier 1 and 2 factories audited

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Product Excellence
• Supplier Partnerships
• Community Impact
• Diversity and Inclusion
• Governance

Environmental Achievements

• 100% of existing and new stores equipped with energy-efficient LED lights by 2022
• New office and warehouse integrates environmental design features (carbon-neutral concrete slab and solar panels)

Social Achievements

• Rolled out Supplier Code of Conduct to all private label suppliers (100%) and 89% of third-party suppliers
• 73% of Universal Store team members are women with 50% in senior leadership positions and 50% of the Board of Directors
• Partnership with Upparel to process faulty and damaged stock, diverting textile waste from landfill

Governance Achievements

• Adopted an approach of digestible continual improvement to Governance processes across the Group

Climate Goals & Targets

Environmental Challenges

• Significant mandated store lockdowns and restrictions impacting teams and customers across Australia
• COVID-19 variants causing trade disruptions, lower foot traffic, and supply chain issues
• Increased cost of living pressures impacting consumer confidence
• Highly competitive Australian clothing market
• Maintaining key supplier relationships and product sourcing

Mitigation Strategies

• Strong growth in online channel mitigating physical store closures
• Flexible supply chain allowing for adjustments between domestic and international suppliers
• Proactive market monitoring and data-driven approach to manage stock levels and markdowns
• Investing in digital and online efficiencies
• Diversifying supply chain and reducing reliance on China
• Enhanced monitoring and communications with team members regarding government requirements
• COVID-19 safe plans and policies implemented across all departments

Supply Chain Management

Supplier Audits: 100% of Tier 1 private label factories audited in FY22

Responsible Procurement

• Supplier Code of Conduct promoting 13 key ethical principles

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events and natural disasters

Sustainable Products & Innovation

• Thrills range of products made from hemp and organic cotton

Environmental Metrics

ESG Focus Areas

• Tread Lightly
• Transparency
• Climate Action
• Amplify our Actions

Environmental Achievements

• Initiated the phase out of customer single use plastic bags for reusable totes
• 110kw solar PV system installed at our new Support Office and Distribution Centre
• DC pick accuracy increased to 99.8%
• Increased usage of preferred fibre by 13% in two years

Social Achievements

• 71% women in the team, 41% senior leadership roles filled by women, Board of Directors is equally split at 50%
• Launched a customer textile take back trial in selected VIC stores with Upparel
• National rollout of “Right Team Right Time” to ensure teams are rostered on the right hour of each day, to help with customer service and sales conversion
• “Back to Basics” with enhanced team training focused on customer selling and service skills

Governance Achievements

• Established a Sustainability Committee to oversee the implementation of our Sustainability Plan to 2030
• Adopted an approach of digestible continual improvement to Governance processes across the Group and has focused on the development of the governance of health and safety, cyber security and broader risk management throughout the year

Climate Goals & Targets

Environmental Challenges

• Shifting consumer spending due to cost of living pressures and rising interest rates
• Competition in the Australian clothing market
• Potential supply chain disruptions
• Cyber attacks
• Health and safety incidents
• Compliance with laws and regulations
• Environmental risks (extreme weather events)
• Social risks

Mitigation Strategies

• Proactive market monitoring and responsive stock management
• Superior customer service, inspirational stores, and curated brands
• Supply chain diversification
• Enhanced IT security measures
• Health & Safety committee, training programs
• External assurance and support
• Sustainability targets and ESG committee
• Responsible procurement policy

Supply Chain Management

Supplier Audits: 100% of Tier 1 private label suppliers audited

Responsible Procurement

• Supplier Code of Conduct
• Preferred fibre guide
• Chain of Custody and Certification process

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, natural disasters

Reporting Standards

Frameworks Used: Australian Accounting Standards

Certifications: GRI, Global Organic Textile Standard (GOTS), Organic Content Standard (OCS), Global Recycled Standard (GRS), Recycled Content Standard (RCS), FSC

Third-party Assurance: PricewaterhouseCoopers

Sustainable Products & Innovation

• Organic cotton tees (AS Colour)
• Recycled cotton tote bags

Environmental Metrics

ESG Focus Areas

• Tread Lightly
• Expect Transparency
• Climate Action
• Amplify our Actions

Environmental Achievements

• Achieved 51% diversion from landfill from Support Office and DC operations.
• 100% of bags and online mailers are reusable, recyclable or compostable by 2025 (on track).
• Adopted a new Sustainable Packaging Policy.
• Procured over 1.3 million units of Preferred Fibre product across Universal Store’s brands and Thrills.
• Met target of procuring at least 50% of all cotton from certified sources by 2025 (55%).
• 100% of stores equipped with energy efficient LED lights (on track).

Social Achievements

• 70% female team, with 43% of senior leadership roles and 50% of the Board of Directors held by females.
• Launched national training roadshows with a “Back to Basics” theme for US and PS stores.
• Implemented ‘Right team, Right time (RTRT)’ to drive labour productivity and lift conversion rates in stores, delivering +$1.9 million annual savings in FY24.
• Embarked on a human capital management project to support our team in making better resourcing and retention decisions.

Governance Achievements

• Strengthened internal resources to enhance certification and packaging compliance.
• Established a dedicated Sustainability Committee to drive our sustainability agenda across all facets of our organisation.
• Joined Seamless, the clothing stewardship scheme for Australia.

Climate Goals & Targets

Environmental Challenges

• Subdued H1 trading environment due to rising cost-of-living pressures.
• Subdued H2 trading environment in wholesale channel for CTC.
• Instability in the AU wholesale channel for CTC.
• Increased discounting from competitors.
• Pandemic Events
• Competition
• Fashion trends and consumer preferences
• Branded supplier relationships
• Product sourcing
• Cyber attacks
• Health and Safety
• Legal and compliance
• Environmental & Social Sustainability

Mitigation Strategies

• Managed costs effectively.
• Offered new premium products and re-engineered offerings for budget-conscious customers.
• Refocused on in-store sales execution.
• Placed more focus on DTC channels for CTC.
• Improved retail execution for CTC.
• Worked more closely with selected wholesale partners.
• Maintain COVID‑19 safe plans and policies.
• Continue to diversify our supply chain.
• Remain relevant and nimble, exceeding customer expectations.
• Enhance the online proposition and build CRM platform.
• Maintain strong private brand close to market strategies.
• Continue exclusive special make up product with third‑party brands.
• Remain relevant, ensuring curated outfits are in demand and on trend.
• Continue to test and trial before investing heavily.
• Maintain respectful and transparent relationships.
• Continue to build relationships based on trust and develop win/win strategies.
• Diversification and reducing reliance on China.
• Limited dependency on a single vendor.
• Monitor and stay close to key suppliers.
• Continue adherence to the CIS security framework.
• Conduct regular penetration testing and risk assessments.
• Enhance network security.
• Continue to invest into our advanced threat detection and response.
• Ensure ongoing compliance with Payment Card Industry Data Security Standard (PCI DSS).
• Collaborate with third‑party suppliers to ensure they adhere to the Group’s security policies and standards.
• Continue to encourage employee assistance program usage.
• Continue to facilitate and mitigate risks by training programs.
• External assurance and support engaged to ensure compliance with all laws and regulations.
• Experienced leadership team ensuring appropriate governance is embedded.
• Monitors performance against published sustainability targets.
• Established an ESG committee.
• Refine and enhance the Group’s responsible procurement policy.

Supply Chain Management

Supplier Audits: 100% of Tier 1 factories audited annually. Targeting 100% of key Tier 2 factories audited by 2026. (50% complete)

Responsible Procurement

• Supplier Code of Conduct
• Certification and green claims process

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events and natural disasters

Reporting Standards

Frameworks Used: GRI, SASB

Sustainable Products & Innovation

• Neovision private brand (10% of total sales)