Climate Change Data

Environmental Metrics

ESG Focus Areas

• Occupational Health & Safety
• Fair & Ethical Labour Practices
• Compliance
• Anti-Corruption
• Energy
• Emissions
• Water
• Waste & Effluents
• Community Development
• Employee Engagement
• Training & Development
• Supplier Evaluation
• Supplier Development

Environmental Achievements

• Batticaloa factory recognized as the world’s first Net Zero Carbon Apparel manufacturing facility
• 21% reduction in Greenhouse Gas (GHG) emissions due to solar PV expansion
• 61% reduction in water consumption
• 88% of waste recycled & reused

Social Achievements

• Launched iConnect, a versatile HRIS aimed at strengthening employee engagement
• Partnered with national and international institutions to develop a robust talent pipeline through Shilpa and the Brandix Academy
• Expanded P.A.C.E. program to empower female associates
• Implemented Ran Dharu Thilina program providing school supplies to over 8,501 children

Governance Achievements

• Implemented a comprehensive Enterprise Risk Management framework
• Established a four-part self-assurance and audit process for social and ethical compliance
• Implemented iConnect HR system for streamlined HR processes

Climate Goals & Targets

Environmental Challenges

• Unprecedented challenges due to the COVID-19 pandemic
• Fast fashion trend leading to increased waste
• Diverse product customization challenging waste recycling and reuse goals
• Water footprint rising in correlation with business growth

Mitigation Strategies

• Revised targets in line with the Net Zero Carbon Buildings Commitment
• Exploring material circularity to reduce waste footprint
• Implementing rainwater harvesting techniques
• Upgrading water fittings to Green Seal/LEED rated fittings
• Upgrading on-site STPs to Zero Liquid Discharge (ZLD) plants
• Overhauling the Group Chemical Management System

Supply Chain Management

Supplier Audits: Biennially for existing key suppliers

Responsible Procurement

• Vendor Code of Ethics specifying minimum standards on labour practices, human rights, and environmental compliance
• Avoiding sourcing from disputed or controversial regions
• Compliance with Section 1502 of the Dodd-Frank Act regarding conflict minerals

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 14001:2015 (Brandix Lingerie, Brandix Finishing, Brandix India Apparel City)

Third-party Assurance: DNV GL Business Assurance Lanka Private Limited

UN Sustainable Development Goals

• Goal 6 (Clean Water and Sanitation)
• Goal 8 (Decent Work and Economic Growth)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 17 (Partnerships for the Goals)

Initiatives such as Care For Our Own, Model Village, renewable energy projects, waste reduction and recycling programs, employee training and development, and supplier collaborations contribute to these goals.

Awards & Recognition

• World’s 1st Net Zero Carbon-certified Apparel manufacturing facility (Batticaloa factory)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Achieved 35% of Brandix’s electrical energy requirements in Sri Lanka from solar PV.
• 90% of all waste generated is recycled and re-used.
• Reduction in Energy intensity – 12%
• Reduction in Energy consumption – 20%
• Reduction in Water Footprint – 27%
• Reduction in Water Intensity – 19%

Social Achievements

• Maintained an average 98% cadre fulfillment ratio despite COVID-19 related quarantine.
• Granted increments for all employees during FY 2020/21.
• Provided paid leave for employees who are unable to attend work and need to complete mandatory quarantine.
• Launched “Abhisheka”, a special initiative aimed at empowering Associates to enhance their entrepreneurial skills; over 1,100 entrepreneurs were launched.

Governance Achievements

• Updated Employee Code of Conduct to reflect increased focus on data governance, social media content, confidentiality of information and non-disclosure obligations.
• Consolidated risk management processes to enable more stringent monitoring of significant risks.
• Expanded the scope of the Factory Control Assessment and rolled it out across all functions.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on operations and supply chain.
• Supply chain disruptions due to global lockdowns and travel restrictions.
• Increased occupant water usage due to frequent hand washing and floor cleaning requirements.

Mitigation Strategies

• Aggressive recruitment drive leveraging social media platforms.
• Virtual phone interviews and digital onboarding process.
• Retrospective salary payments and bonuses.
• Paid leave for quarantined employees.
• Increased volume of localised sourcing (Sri Lanka and India) to over 70%.
• Weekly risk assessment with all fabric and trim suppliers.
• Channeling condensed water recovery towards more effective use for the cooling towers of HVAC systems.

Supply Chain Management

Supplier Audits: Annual audit for suppliers sourced by Brandix.

Responsible Procurement

• Vendor Code of Ethics (VCE)
• Prohibition of forced labor and human rights abuses.
• Regionalization of supply base.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN SDGs, UNGC Principles

Certifications: WRAP, BSCI, ETI, ISO 14001, ISO 9001, LEED, GreenMark, GOTS, GSV, GRS, RCS, OCS, OEKO TEX

Third-party Assurance: DNV Business Assurance Lanka (Private) Limited

Sustainable Products & Innovation

• PPE
• Face masks
• Sustainable raw materials

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Social Sustainability
• Corporate Governance

Environmental Achievements

• Achieved Net Zero Carbon status (Scope 1 & 2) in five Sri Lankan manufacturing facilities.
• Increased renewable energy share to 43.2% across the Brandix Group.
• Achieved 36% green water percentage.
• Recycled or reused 90% of solid waste.
• Maintained a high average Higg Index score of 86%.

Social Achievements

• Launched various training and development programs (ATS, Shilpa, PACE, STEP, Mechanics Training) benefiting thousands of employees.
• Implemented robust grievance mechanisms, including FICs and CICs, to address employee concerns.
• Maintained a strong commitment to diversity and inclusion, with initiatives like the IDEA Council and RISE for HER.
• Supported local communities through CSR programs under the “Provide, Educate, Engage” pillars, benefiting over 200,000 individuals.
• Received recognition for best practices in fostering a safe and inclusive work environment (Top 25 Safest Workplaces in India).

Governance Achievements

• Implemented a comprehensive ESG Management Framework.
• Integrated ESG into the Enterprise Risk Management (ERM) framework.
• Established a two-tier board structure with three sub-committees (Risk, Audit, Talent).
• Maintained a zero-tolerance stance towards anti-corruption and bribery.
• Undertook independent assurance of the ESG report by DNV.

Climate Goals & Targets

Environmental Challenges

• Economic uncertainty in Sri Lanka, including inflation, interest rates, and currency risks.
• Slowdown in global economic growth leading to low consumer demand.
• Cybersecurity risks and IT system failures.
• Economic crisis and regional competition for talent.
• Risks of injury and fatalities to staff.
• Supply chain disruptions due to geopolitical uncertainties and economic crisis.
• Climate change related risks (transition and physical risks).

Mitigation Strategies

• Developing business continuity plans.
• Strengthening customer relationships and offering innovative solutions.
• Implementing NIST framework for cybersecurity.
• Strengthening succession planning and employee engagement initiatives.
• Implementing systematic HIRA and risk management for OHS.
• Driving near-shore sourcing strategy.
• Periodic self-assurance on social compliance and independent audits.
• Investing in renewable energy and implementing green building features.
• Exploring opportunities for sustainable materials and chemicals.
• Formulating business continuity plans for natural disasters.
• Implementing wastewater recycling initiatives and condensed water recovery projects.

Supply Chain Management

Supplier Audits: 100 existing suppliers assessed on environmental and social criteria (7% of total supplier base); 300 suppliers assessed cumulatively over the past three years (43% of total supplier base).

Responsible Procurement

• Vendor Code of Conduct
• Supplier assessments for environmental and social criteria
• Regional sourcing
• Traceability solutions
• Use of sustainable materials (BCI cotton, organic cotton, recycled materials).

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, floods, landslides, droughts.

Transition Risks

• Unstable crude oil market, increasing fossil fuel regulations, transition to low-carbon technologies.

Opportunities

• Increased demand for sustainable fashion; material circularity; development of energy-efficient products.

Reporting Standards

Frameworks Used: GRI Standards 2021

Certifications: ISO 14001, ISO 45001, WRAP, BSCI, ETI, LEED Platinum, Net-Zero Carbon

Third-party Assurance: DNV Business Assurance India (Pvt) Ltd

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 16
• Goal 17

Various initiatives contribute to these goals through environmental stewardship, social responsibility, and good governance.

Awards & Recognition

• Overall Women Friendly Workplace Award (2022)
• Sustainable Development in Exports Award (2022)
• Top 25 Safest Workplaces in India (2023)