Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Ethics
• Compliance
• Circular Economy

Environmental Achievements

• Investing in businesses that fit with PDS’s vision for sustainability
• Promoting sustainable materials and low-impact manufacturing
• Investing in a sharing circular economy
• LEED Platinum and Gold certified best-in-class facilities

Social Achievements

• Industry experts leading a 40-member team to maintain social, technical, and ethical compliance standards across 200 active factories
• Non-negotiable policies for factories, including a supplier code of conduct and zero-tolerance policy
• Proposed employee incentive plan (ESOP and SAR) to align employee interests with shareholders
• Community investment through partnerships and investments in businesses aligned with PDS's vision

Governance Achievements

• Team reports directly into PDS board, independent of businesses
• Zero tolerance on unauthorized subcontracting
• Regular monitoring of receivables and aged debtors
• Adherence to PDS code of conduct and customer compliance requirements

Climate Goals & Targets

Environmental Challenges

• COVID-19 significantly disrupted business globally
• Large part of UK under lockdown for majority of the year

Mitigation Strategies

• Focus on maintaining margins and cost reduction
• Cautious expansion into new geographies (US, South Africa, Australia)
• Onboarding senior business heads to drive business in new geographies, categories, and with new customers

Supply Chain Management

Supplier Audits: Social, Technical and Ethical Compliance standards across 200 active factories

Responsible Procurement

• Supplier Code of Conduct
• Zero Tolerance Policy

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Implemented rainwater harvesting ponds and solar panels at various facilities.
• Reduced water consumption per piece at Green Smart Shirts Limited and Progress Apparels.
• Restored 700+ mangrove plants in Sri Lanka.
• Transitioned to eco-friendly alternatives in chemical usage at Zamira.
• Reduced sampling lead times and minimized physical samples using Clo 3D technology.
• Achieved a 93rd percentile score for ESG performance in the Textile, Apparel, and Luxury Goods Industry in the S&P Global Corporate Sustainability Assessment.

Social Achievements

• Provided free primary and secondary education to children in India and Bangladesh through Soham projects.
• Established a community kitchen in Sri Lanka distributing hot meals daily.
• Extended assistance and relief to earthquake victims in Turkey.
• Conducted 75 training programs for factory associates, covering Health & Safety, Human Rights, and professional development.
• India and Sri Lanka operations recognized as a ‘Great Places to Work®’.

Governance Achievements

• Established a strong compliance framework encompassing all relevant laws, regulations, and industry standards.
• Implemented a global whistle-blower policy (ETHICS GLOBAL HOTLINE).
• Ensured cotton traceability in the supply chain through partnership with Oritain.
• Achieved a ranking in the 93rd percentile for ESG performance in the Textile, Apparel, and Luxury Goods Industry in the S&P Global Corporate Sustainability Assessment.

Climate Goals & Targets

Environmental Challenges

• Meeting net-zero goals and future regulatory requirements.
• Supply chain disruptions due to global events (e.g., war in Ukraine, inflation).
• Industry lagging behind on climate change commitments.
• Challenges in achieving 100% adherence to Higg FEM assessments due to deadlines and onboarding issues.

Mitigation Strategies

• Collaboration with industry partners, suppliers, brands, and retailers.
• Transforming data into actionable insights for long-term sustainable goals.
• Validating data through the Science Based Targets initiative (SBTi) by 2025.
• Investing in sustainable start-ups through PDS Ventures.
• Advocacy through participation in initiatives like “An apparel supplier’s guide” to legislation.

Supply Chain Management

Supplier Audits: 600+ compliant partner factories

Responsible Procurement

• Code of Conduct
• Supplier sustainability requirements
• Higg FEM assessments
• ZDHC MRSL compliance
• Cotton traceability

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Renewable energy adoption

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC, UN SDGs, SBTi

Certifications: LEED Gold, HIGG Index, Great Place to Work®, Oeko-tex© STeP, Oeko-tex© Made in Green, ZDHC Level 1, BCI, GRS, RCS, GOTS, OCS, ISO 14064, ISO 9001, ISO 14001, ISO 45001, ISO 27001

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 6 (Clean Water and Sanitation)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)
• Goal 4 (Quality Education)
• Goal 1 (No Poverty)
• Goal 10 (Reduced Inequalities)

PDS aligns its operations with the UNSDGs, continuously improving sustainability performance and creating a positive impact.

Sustainable Products & Innovation

• Mono-fibre textiles
• Recycled materials
• Eco-friendly chemicals

Awards & Recognition

• Great Place to Work®

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Generated 1.5 million kWh of clean energy
• Reduced total Scope 1 and 2 emissions to 14,353 metric tonnes
• Reduced carbon footprint by 542.8 metric tons of CO2e
• Restored 700+ mangrove plants
• Reduced water consumption by 1.31 million liters annually at CCP Malwana
• Implemented a rainwater harvesting program collecting 4.5 million liters of water annually at Norlanka
• Implemented a comprehensive travel sustainability program at Poetic Gem
• Incorporated Sustainable Aviation Fuel (SAF) at Poetic Gem
• Implemented digital product passports for garments

Social Achievements

• Empowered 1,000+ children through quality education
• Upskilled 230+ adults for better livelihoods
• Dedicated 5,000+ learning hours to employee development
• 58% women in workforce, 160+ women employees at manufacturing facilities
• Provided free healthcare for factory workers
• Supported the wellbeing of premature babies in Bangladesh
• Transformed 300 kgs of fabric waste into 1,000 tote bags
• Established Apon Fair Shop providing essential products at discounted prices

Governance Achievements

• Aligned goals with the Science Based Targets initiative
• Partnered with several global banking partners for sustainability-linked financing
• Engaged in roundtable discussions with external stakeholders and peers
• Engaged with organisations such as the ILO for internal learning and development initiatives
• Earmarked $50m to invest in new sustainability start-ups

Climate Goals & Targets

Environmental Challenges

• The fashion industry has a short-term lens on the future and tends to look no further ahead than 12 months. Climate change requires a long-term roadmap.
• The gap between what has been achieved and what needs to be achieved continues to widen in the fashion industry.
• Complex supply chains with raw materials sourced from various regions and manufacturing units spread across the globe.
• Adaptation to Higg FEM 4

Mitigation Strategies

• Committed to SBTi for emission reduction.
• Collaboration with several organisations to boost sustainability commitments.
• Partnered with Carbon Trail to automate and enhance carbon accounting.
• Extensive training and hands-on practice sessions to familiarise the team with Higg FEM 4.

Supply Chain Management

Supplier Audits: 600+ compliant partner factories

Responsible Procurement

• Code of Conduct
• Supplier sustainability requirements
• Ethical sourcing practices
• Responsible sourcing of cotton (Better Cotton Initiative)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Renewable energy adoption

Reporting Standards

Frameworks Used: UN SDGs, UNGC, SBTi, Cascale (Higg Index)

Certifications: LEED Gold, GOTS/OCS, GRS/RCS, Oeko-tex© STeP, Oeko-tex© Made in Green, Control Union

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 1
• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 12
• SDG 13
• SDG 15
• SDG 17

Various initiatives across environmental, social, and governance areas contribute to these goals.

Sustainable Products & Innovation

• Everloop collection

Awards & Recognition

• Walmart Giga Guru (Project Gigaton)