Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change
• Sustainability

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Climate change impacts including supply chain disruptions, operational impacts, and geopolitical events
• Higher raw material costs and a more challenging supply chain
• COVID-19 pandemic's effects on demand, supply chain, and customer purchasing patterns

Mitigation Strategies

• Developed a company-wide strategy focusing on core customers, value-added services, and exploring acquisition opportunities
• Emphasized cost savings initiatives and cash conservation
• Executed acquisitions of G.A.P. Promotions, Trend Brand Solutions, and Premier NYC
• Retained key customers and employees
• Applied for and received PPP loans and government assistance
• Refocused marketing activities
• Working on finalizing a contract with a third-party emissions auditor to assess and manage carbon emissions

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainability
• Climate Change
• Supply Chain

Environmental Achievements

• Developing a program to assess and manage carbon emissions policies, standards, and goals; working on finalizing a contract with a third-party emissions auditor to help identify baseline Scope 1-3 carbon emissions.

Social Achievements

• Encouraging employee engagement with professional development opportunities; team member serves on the board of directors for NEPPA and a member of Chief, a network of women executives.

Governance Achievements

• Adopted a Code of Ethics and Business Conduct; adopted a Clawback Policy.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to global events and increased e-commerce demand; rising inflation rates and challenges in the supply chain; increased shipping times and prices; shortages of supply of merchandise from suppliers; increases in the price of merchandise and raw materials; customer order cancellations or decreases; difficulties integrating acquired businesses; cybersecurity threats; data privacy and security laws and regulations; compliance with the Consumer Product Safety Improvement Act; intense competition; economic slowdowns; changes in trade regulations; changing fashion trends; climate change impacts; increased focus on sustainability issues; potential product liability claims; periodic litigation; material weaknesses in internal control over financial reporting; increases in the cost of employee benefits; restatement of financial statements; potential impairment charges; environmental regulations; tax law changes; volatility in global financial markets.

Mitigation Strategies

• Redundant network of suppliers; efforts to pass increased costs to customers; monitoring credit risk exposure; due diligence investigations prior to acquisitions; robust cybersecurity measures; leveraging expertise of managed service providers; thorough security assessments of third-party providers; remediation plan to address material weaknesses in internal control; various cost control measures; multiple raw material suppliers; shifting some production out of China; developing a program to assess and manage carbon emissions; working with a third-party emissions auditor; implementing a plan of remediation to remedy material weaknesses; maintaining an allowance for doubtful receivables; maintaining commercial insurance.

Supply Chain Management

Responsible Procurement

• Developing a program to assess and manage carbon emissions policies, standards, and goals; working on finalizing a contract with a third-party emissions auditor to help identify baseline Scope 1-3 carbon emissions.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• The Company's prior auditor, BF Borgers CPA PC, was permanently barred from appearing or practicing before the Commission. This resulted in the Company's financial statements for prior periods no longer being able to be included in filings with the Commission.

Mitigation Strategies

• The Audit Committee dismissed BF Borgers and engaged Marcum LLP as the new independent registered public accounting firm.

Supply Chain Management

Climate-Related Risks & Opportunities