Climate Change Data

Environmental Metrics

ESG Focus Areas

• Decent work agenda
• Human rights
• Environment/climate
• Anti-corruption
• Animal welfare

Environmental Achievements

• PFC eliminated from 56% of HH Sport fabrics and 46% of all fabrics
• Initiatives to reduce single-use plastics in packaging and shipping

Social Achievements

• QuizRR worker engagement tool implemented in 5 Chinese factories
• Internal sustainability training through workshops and sales meetings

Governance Achievements

• Published Sustainability Roadmap
• CSR and Compliance Manager reports directly to Chief Officer Product

Climate Goals & Targets

Environmental Challenges

• Freedom of association challenges in some supply chain locations
• Discrimination issues in Bangladesh, India, Sri Lanka, and Myanmar
• Migrant worker discrimination
• High water consumption in textile production
• Chemical management challenges
• Gender equality issues
• Fire and building safety concerns
• Overtime issues
• Single-use plastic use
• Water pollution
• Material processing in carbon-intense grids
• Pesticide use in cotton farming
• Microfiber shedding and pollution

Mitigation Strategies

• Ongoing engagement with suppliers on freedom of association
• Mapping key suppliers to address discrimination issues
• Developing policies to protect migrant worker rights
• Water risk assessment for key suppliers and HIGG FEM implementation
• Introducing bluesign products and aiming for 100% PFC-free fabrics by 2023
• Addressing gender equality issues through mapping and policy development
• Continued participation in Accord/RSC for fire and building safety
• Improved purchasing practices to reduce overtime
• Initiatives to reduce and eliminate single-use plastics
• Using HIGG FEM and bluesign to evaluate water pollution
• Mapping GHG hotspots and developing a reduction plan
• Transitioning to organic cotton and collaborating with Cotton Connect
• Testing and material development to reduce microfiber shedding

Supply Chain Management

Supplier Audits: Annual audits

Responsible Procurement

• Code of Conduct
• Supplier manuals
• Chemical contracts

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, OECD Due Diligence model

Sustainable Products & Innovation

• Mono-material garments
• Bluesign products
• PFC-free fabrics

Environmental Metrics

ESG Focus Areas

• Decent work
• Human rights
• Environment/climate
• Anti-corruption
• Animal welfare

Environmental Achievements

• Saved 379,692 kg CO2 in 2023 by using solution dyed material.
• Saved 9,000 m3 water in 2022 by dyeing approx. 300 tons of fabric with solution dyed.

Social Achievements

• Implemented Trustrace for supply chain traceability, including 16 vertical suppliers disclosing their full supply chain.
• Continued work with Nirapon in Bangladesh to improve factory safety and worker well-being.
• Addressed two high-priority non-compliance incidents related to verbal/physical abuse and significant health & safety risks.

Governance Achievements

• Ongoing work to update and develop a comprehensive ESG strategy (launching in 2024).

Climate Goals & Targets

Environmental Challenges

• Complex and not always transparent supply chain, making risk assessment difficult.
• Industry challenges related to pollution, water scarcity, and climate change.
• Need to improve evaluation of underlying causes of supply chain challenges.
• Increased stakeholder focus on ESG related topics.

Mitigation Strategies

• Implementing Trustrace for improved traceability.
• Updating Chemical Management Process and guidelines.
• Developing guidelines on green claims.
• Widening Textile Exchange certifications (including GRS, RCS, OCS).
• Participation in decarbonization programs (EOG, OIA, STICA).
• Collaboration with suppliers on reducing environmental footprint (HIGG FEM).

Supply Chain Management

Supplier Audits: 114 Tier 1 suppliers audited, at least every two years.

Responsible Procurement

• Code of Conduct
• Chemical Compliance Contract
• HIGG FEM
• Trustrace
• Amfori BSCI

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Guiding Principles on Business and Human Rights, OECD Due Diligence for Responsible Business Conduct, BSCI, HIGG

Certifications: bluesign, Textile Exchange Content Claims Standard (CCS), Responsible Down Standard, Responsible Wool Standard, Global Recycling Standard, Recycled Claims Standard, Organic Content Standard, ZQ certified merino wool

Sustainable Products & Innovation

• Products using solution dyed materials
• Products using recycled materials (ocean-bound plastic)