HVEG Fashion Group
Climate Impact & Sustainability Data (2023)
Reporting Period: 2023
Environmental Metrics
ESG Focus Areas
- Improving Working conditions
- Embedding sustainability in our culture
- Improving knowledge on sustainability
- Implementing ecodesign for circularity
- Increasing sustainable packaging
- Reducing impact production and HVEG internally
- Offering more sustainable products
- Creating sustainable business models in the HVEG lab
- Being Transparent
Environmental Achievements
- Increased use of responsible materials (recycled/organic) in products from 27% in 2022 to 46.8% in 2023
- Reduced CO2 emissions from company cars by 12%, to 86 grams per kilometer
- Remediated 95.8% of Accord findings in 2023 (Bangladesh and Pakistan)
Social Achievements
- 36% of Tier 1 garment factories for Private label achieved BSCI ratings A and B
- 80% of colleagues participated in the Sustainable Education Program
- Employee engagement index rose to 81% in 2023 from 79% in 2022
- Sustainability score increased to 3.7 out of 5 in 2023 from 3 in 2022
Governance Achievements
- Acquired 100% of shares of MAGIC Bodyfashion B.V. in July 2023
- Continued work towards 100% transparent supply chain, with 100% of Tier 1 and 90% of Tier 2 suppliers known for main customers
Climate Goals & Targets
Medium-term Goals:
- 80% (Brands) and 50% (Private label) of garment factories (Tier 1) to have BSCI rating A and B by 2025
- 100% of colleagues to participate in the education program by 2025
- Sustainability score of 4.5 out of 5 by 2025
- x% of products using at least 50% certified materials by 2025 (percentage depends on baseline measurement)
- Full visibility into Tier 1 and Tier 2 suppliers by 2025
- Use ecodesign strategies fitting all customer groups by 2025
- Develop at least one successful sustainable business model or concept by 2025
- Reduce production impact with x% of top 10 products by 2025 (percentage depends on baseline measurement)
Short-term Goals:
- 60% (Brands) and 45% (Private label) of garment factories (Tier 1) to have BSCI rating A and B by 2024
- Baseline measurement for top 10 products by 2024
- Identify ecodesign strategies aligning with customer needs by 2024
- Concrete input for a sustainable business model or concept by 2024
Environmental Challenges
- Decreased percentage of BSCI A and B ratings for Brands in 2023 compared to 2022, partly due to increased production in China and challenges in meeting working hours compliance
- Challenges in accurately assessing the impact of CO2 emissions (scope 3), energy usage, water consumption, chemical usage, and waste generation across various components of products
- Balancing sustainability with affordability in a low-margin market segment
Mitigation Strategies
- Continued efforts to increase the percentage of A and B rated factories
- Initiated Life Cycle Analyses (LCA) test phase to gain insights into environmental impact
- Developing tailored solutions and design adaptations for ecodesign strategies in different product categories
- Identifying like-minded customers who prioritize sustainability
Supply Chain Management
Supplier Audits: 115 audits in Bangladesh, 57 in China, 15 in Pakistan in 2023
Responsible Procurement
- BSCI Code of Conduct
- Accord on Fire and Building Safety in Bangladesh
- Pakistan Accord
- Code of Conduct prohibiting exotic skins, real fur, and materials from endangered species
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: CSRD
Certifications: BSCI, Accord on Fire and Building Safety in Bangladesh, Pakistan Accord
Sustainable Products & Innovation
- Use of post-consumer waste materials in Bamboo Basics collection
- Increased use of recycled materials in various product categories
- Increased use of organic cotton
- Increased use of vegetable-tanned bonded leather