Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainable materials
• Net-zero emissions
• Circularity
• Diversity, Equity & Inclusion (DE&I)
• Workplace health and safety
• Employee and community wellbeing
• Supplier social performance

Environmental Achievements

• EcoVerde revenues up 159% to $96 million
• Energy reduction target of 7% (6.9% reduction) achieved a year early
• 83% of employees work in a certified ‘Great Place To Work’ facility

Social Achievements

• 83% of employees work in a certified ‘Great Place To Work’ facility
• 94% participation in Health and Safety survey with an overall score of 92
• 55,000 hours of training delivered
• Over 200 community programmes undertaken, involving nearly 8,000 employees

Governance Achievements

• Establishment of a new Board Sustainability Committee
• 20% of shares granted to senior management linked to ESG measures

Climate Goals & Targets

Environmental Challenges

• Regional Covid outbreaks in Vietnam and India
• Inflationary pressures
• Supply chain disruption
• Labour availability issues in the US
• Supply of high quality recycled fibres
• Labour shortages and skill gaps in various parts of the world
• Freight and logistical challenges

Mitigation Strategies

• Successful pricing and self-help programmes to offset increased costs
• Flexible business model and supply chains
• Strategic projects to improve margins and mitigate labour issues
• Expansion of supplier base for recycled materials
• Focus on talent development and wellbeing
• Increased stocking policy for strategic raw materials
• Expansion of global and local forwarders, monthly tender based on spot rates

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Restricted Substances List
• Conflict Minerals Policy

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Water shortages
• Extreme heat

Transition Risks

• Failure to meet customer expectations
• Carbon taxes
• Renewable energy sourcing
• Recycled raw material sourcing

Opportunities

• Growth in lightweight products
• Increased market share with brands

Reporting Standards

Frameworks Used: GRI Standards, TCFD

Certifications: ISO 14001, ISO 50001

UN Sustainable Development Goals

• Goal 3
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 12
• Goal 13

Initiatives contribute to these goals through various actions related to health and wellbeing, gender equality, clean water and sanitation, renewable energy, decent work, responsible consumption, and climate action.

Sustainable Products & Innovation

• EcoVerde recycled threads
• EcoRegen biodegradable thread
• Lattice Lite Eco footwear composite materials

Environmental Metrics

ESG Focus Areas

• Environmental compliance
• Health and safety
• Sustainability
• Supplier code audit
• Bribery & anti-corruption

Governance Achievements

• Revised delegation of authority rolled out across the Group in 2022
• Enhanced training for managers and customer-facing and procurement roles
• Maintenance of a whistleblower system

Climate Goals & Targets

Environmental Challenges

• Changes in business model and strategies
• Technology changes and integration
• ESG related reporting requirements
• Supplier payment terms
• Auditor transition
• Recruiting talent in audit and assurance

Mitigation Strategies

• Comprehensive assurance mapping exercise
• Commissioning an external advisor for sustainability reporting assurance in 2023
• Ongoing work to formally align to the impending UK-SOX implementation
• Further work on automated controls testing in 2023
• Investments in new skills and technology to facilitate automation and data analytics

Supply Chain Management

Supplier Audits: Rolling compliance audits across our supplier base

Responsible Procurement

• Supplier Code and vendor onboarding process

Climate-Related Risks & Opportunities

Physical Risks

• Climate change

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Human Rights
• Supply Chain Sustainability
• Community Engagement

Environmental Achievements

• Reduced Scope 1 & 2 emissions by 39%
• Increased renewable energy share to 54% (from 29% in 2022)
• Reduced waste to landfill by 37% vs 2022
• Increased water recycling rate by 13.5% vs 2022
• Opened a Sustainability Hub in Madurai, India
• Installed solar panels in Bangladesh, reducing fuel-based energy by 12%

Social Achievements

• Named one of the World's Top 25 Best Workplaces by Great Place To Work®
• Increased female representation in senior leadership roles from 21% to 23%
• Launched 'Coats for Her' program to promote gender diversity
• Launched 'Coats Cares' program for community engagement
• Implemented 'Coats for All' program for equality of treatment
• Provided aid to Turkey earthquake victims

Governance Achievements

• Refreshed Board Diversity Policy
• Completed 131 supplier audits, terminating contracts with 4 suppliers for non-compliance
• Updated Whistleblowing Policy
• Implemented a new operating model with clear reporting and accountability
• Undertook a comprehensive assessment of emerging risks

Climate Goals & Targets

Environmental Challenges

• Industry-wide destocking in Apparel and Footwear
• Customer insourcing of production in Performance Materials
• Customer phasing issues in US markets
• Economic and geopolitical uncertainty
• Inflationary pressures
• Climate change impacts
• Cybersecurity threats
• Supplier non-performance and ethical compliance risks

Mitigation Strategies

• Focused on self-help initiatives, portfolio optimization, and fiscal discipline
• Developed alternative sourcing strategies
• Implemented strategic projects to improve margins and efficiency
• Maintained strong customer relationships
• Increased investment in sustainability and innovation
• Strengthened cyber security controls
• Refreshed Supplier Code and implemented a robust audit program
• Transitioned to renewable energy sources
• Implemented water recycling initiatives

Supply Chain Management

Supplier Audits: 131

Responsible Procurement

• Supplier Code of Conduct
• Sustainable sourcing requirements
• ZDHC MRSL compliance

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding
• Water stress
• Extreme heat

Transition Risks

• Regulatory changes
• Market shifts
• Energy security challenges

Opportunities

• Development of energy-efficient products
• Transition to renewable energy
• Development of sustainable materials

Reporting Standards

Frameworks Used: UN Global Compact, Science-Based Targets initiative (SBTi)

Certifications: GRI, TCFD

Sustainable Products & Innovation

• EcoVerde
• EcoCycle
• Verde
• Cyclea
• Ecostrobe
• FlamePro Arc
• Hi-P
• FlamePro High Visibility

Awards & Recognition

• Great Place To Work® (Top 25)