Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Gender Equality
• Health
• Capacity Building

Environmental Achievements

• Installed Steam boilers in place of electrical boilers
• Replaced old office electrical items with energy efficient ones
• Installed 200 KW capacity of solar energy plant at its factory located at Chennai
• LEED Platinum Certified Facility in Chennai
• Ultra Filtration Plant; To facilitate re-use of discharged water from laundry
• Ozone Machine for green laundry
• Enabling low water/chemical consumption by using spray system
• Laser Machine: Eco friendly approach compact machine jeanologia
• Sustainable Fabric: Sourcing BCI cotton, FSC/Canopy certified Rayon/Tencel/Ecovera, Recycled poly
• ETP & STP: All facilities equipped with effluent Treatment Plants (ETP) and Sewage Treatment Plants (STPs)

Social Achievements

• Health Camps for workers across all facilities, every quarter
• Scholarship funding education for more than 200 primary & middle school children
• Personal Advancement and career enhancement (P.A.C.E.) empowering women
• Training on menstrual hygiene & sanitary napkins vending machine
• HER health programme to raise health related awareness
• Gender equality project, in partnership with M&S British High Commission
• Company paid COVID 19 vaccination drive for all employees across IndiaPearl Global factories

Governance Achievements

• Established various policies as per the Companies Act, 2013 and listing agreement / SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, like, CSR policy, Vigil Mechanism policy, Related Party Transaction Policy, Whistle Blower Policy and Directors appointment and remuneration policy
• Various committees established: Audit Committee, Nomination and Remuneration Committee, Stakeholders Relationship Committee, Corporate Social Responsibility Committee, Finance Committee

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and subsequent lockdowns
• Disruption of international trade, travel, consumer behaviour and economies
• Disrupted global supply chains
• Rising logistics costs
• Rising consumer preference for sustainable fashion
• Growing awareness about the lack of equality in the manufacturing process and the value chain

Mitigation Strategies

• Resumed operations post-lockdown in a phased manner
• Recalibrated business models to balance agility and change with financial discipline
• Building more sustainable supply chains
• Focus on local consumers and their preferences
• Investing in sustainable and tech-enabled businesses

Supply Chain Management

Responsible Procurement

• Procuring goods and services from local & small producers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Ind AS

Certifications: LEED Platinum

Third-party Assurance: B.R. Gupta & Co. Chartered Accountants

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Significant drop in energy consumption from 0.569/Pc in 2019 to 0.46/Pc in 2021
• Over 45% decline in water consumption during manufacturing in the past couple of years
• Installation of 20 solar lights in Begampur Khatola village
• Installation of 500-litre capacity RO water system in Melavalam village, aiding 700 families and 800 school students
• Reduction of greenhouse gas emissions by 92% in 2023 (projected) through technology upgrades and solar panels
• Planting trees to eradicate approximately 800 tonnes of CO2

Social Achievements

• Vaccination drive in Bangladesh factories with almost 99% first-dose coverage, nearly 98% second dose, and 88% third dose
• Phulki's HER project improving women's health in Bangladesh over the past six years
• Employee survey with 92% response rate showing high employee engagement and satisfaction
• Various employee welfare initiatives including scholarship programs, rice distribution, yoga at work, and celebrations
• Recognition as “Most Preferred Workplace 2022-23” by Marksmen Daily

Governance Achievements

• Award of Honorary Doctor of Philosophy Degree (PhD) to Mr. Deepak Seth, Founder & Chairman
• Recognition as The Economic Times Best Organisation for Women 2022
• 48% women employees globally, 45% in India, with women-centric trainings like PACE

Climate Goals & Targets

Environmental Challenges

• Significant downturn in the international fashion industry due to the Russia-Ukraine war
• Impact on availability and cost of raw materials
• Increased logistics costs due to high crude oil prices
• Inventory stockpiling at retailers
• Order cancellations
• Under-utilized factory resources
• Aggressive pricing tactics and faster turnaround times from vendors

Mitigation Strategies

• Maintaining contact with customer product development teams for continuous innovation
• Focus on DTIF (Disruptive Technologies In Fashion) and OTIF (On-Time In-Full Delivery)
• ESG assessment of environmental and social impact
• Technology, automation, and analytics to create high-quality products
• Responsible business practices to reduce risks in garment manufacturing and supply chain

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• 99% organic & chemical-free garments for MUJI

Awards & Recognition

• The Economic Times Best Organisation for Women 2022
• Most Preferred Workplace 2022-23

Environmental Metrics

ESG Focus Areas

• Sustainability
• Environmental Responsibility
• Social Accountability
• Governance

Environmental Achievements

• 85% reduction in water usage in denim production
• Implementation of solar power generation in Chennai and planned for other facilities
• Use of eco-friendly fabrics with extended lifespans
• Environmental Impact Score consistently within the green zone

Social Achievements

• PACE programme trained over 559 female workers in India
• SST programme trained 147 supervisors in India
• Transformation of a 0.5-acre plot in Gurugram into a vibrant green belt
• Various HER project programmes implemented, training over 3,500 workers
• Project Badhtey Kadam engages with over 700 girls in Gurugram

Governance Achievements

• Appointment of Big 4 accounting firm as Statutory Auditors for overseas companies
• Engagement of E&Y as internal auditors in India and Bangladesh
• Automation of several processes related to group consolidation, MIS review, concurrent audits, and factory MIS reviews
• Improved Company credit ratings over the past two years

Climate Goals & Targets

Environmental Challenges

• Global economic risks
• Supply chain disruptions
• Geopolitical tensions
• Fluctuations in global economic conditions
• Demand slowdown in key markets (US, Europe)
• Inventory overhang in the US market

Mitigation Strategies

• Diversified geographical presence
• Robust risk management framework
• Strategic partnerships
• Investments in modernisation and digitisation
• Asset-light business model
• Natural hedging in international operations
• Proactive demand forecasting and early booking of raw materials
• Near-shore production in Guatemala

Supply Chain Management

Supplier Audits: 100%

Responsible Procurement

• Sustainable sourcing (23-25%)
• Compliance with OCS and GOTS

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, UNGC, ILO

Certifications: ISO 14001:2015, ISO 45001:2018, SLCP/FSLM, SMETA, GOTS, OCS, GRS, Standard 100 by OEKO-TEX, USCTP, FLAX European Linen

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Eco-friendly fabrics
• Recycled materials

Awards & Recognition

• Icon of the Indian Apparel Industry