Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Impact
• Sustainable Sourcing
• Regenerative Agriculture

Environmental Achievements

• Reduced environmental impact by 8% compared to 2016 (using updated methodology), despite business growth and addition of menswear collections.
• 16% lower EP&L intensity in 2017 compared to 2015 despite 20% higher total sales.
• 18% lower impact associated with raw material production in 2017 compared to 2016 pro forma.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Increased Tier 0 impacts (stores, offices, warehouses) by 20% due to new store openings.
• Lack of good quality LCA datasets for denim production.

Mitigation Strategies

• Reviewing EP&L methodology to be more specific to Stella McCartney's supply chain.
• Working with suppliers to incorporate facility data into the EP&L.
• Commissioning more Life Cycle Analyses (LCAs) for raw materials and processes.
• Working with wool suppliers to collect primary data to better reflect farming practices.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Elimination of virgin cashmere
• Increased use of steel and aluminum alternatives to brass chains
• Increased use of recycled materials

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Regenerative agriculture and grazing practices

Reporting Standards

Frameworks Used: Product Environmental Footprint Category Rules (PEFCRs)

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

• Climate Change
• Biodiversity
• Circular Economy
• Human Rights
• Social Sustainability

Environmental Achievements

• Launched the world’s first garments and bag crafted from Mylo™, a mycelium-based vegan alternative to animal leather
• Improved the iconic Falabella bag’s composition, incorporating more recycled content, reducing reliance on virgin synthetic materials
• Increased the use of organic cotton to 78% of total cotton used.
• Sources all viscose used in ready-to-wear from certified-sustainable forests in Sweden.

Social Achievements

• Launched SpeakUp®, a global anonymous grievance and whistleblowing mechanism for workers.
• Launched new policies and guidelines outlining social sustainability requirements and expectations to suppliers (Code of Conduct, Responsible Sourcing Guide, Modern Slavery Policy, Subcontracting Policy).
• Initiated a multi-brand collaborative effort in Italy focusing on increasing awareness around social sustainability and empowering suppliers.
• Implemented a holistic supplier improvement programme in China to build better HR management systems and improve working conditions.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic.
• Data losses in certain areas due to changes in the business model, impacting comparability with previous years.
• High environmental impact from raw material extraction (Tier 4), particularly greenhouse gases and land use.
• High water pollution impact driven by brass usage and high water consumption impact driven by silk production.

Mitigation Strategies

• Increased data collection across direct operations.
• Transition to regenerative sourcing of cotton and wool.
• Development of lower-impact materials like Mylo™.
• Optimisation of transportation through specialised management systems and supply chain network engagement.
• Reduction and optimisation of packaging across operations.
• Transitioning global stores, offices and warehouses to renewable energy by 2030.
• Supplier engagement through Clean by Design initiative to reduce energy and water consumption and transition to clean energy sources.
• Initiatives to address water footprint of key raw materials (organic cotton, linen, recycled fibres).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Code of Conduct
• Responsible Sourcing Guide
• Modern Slavery Policy
• Subcontracting Policy
• Human Rights Policy (in development)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Regenerative agriculture

Reporting Standards

Frameworks Used: Environmental Profit & Loss (EP&L)

Certifications: LEED (Dallas store), Cradle to Cradle Certified Gold-level (wool knitwear yarn)

Third-party Assurance: PwC

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Mylo™
• Recycled content in Falabella bags
• COREVA™ plant-based stretch denim

Awards & Recognition

• Not disclosed