Climate Change Data

Takko Bidco S.A.

Climate Impact & Sustainability Data (2022-02 to 2023-01, 2023-02 to 2024-01)

Reporting Period: 2022-02 to 2023-01

Environmental Metrics

Total Carbon Emissions:31,158 t CO2e (Scope 1 & 2)
Scope 1 Emissions:7,715 t CO2e
Scope 2 Emissions:23,443 t CO2e
Renewable Energy Share:58.1% (Germany), 100% (Netherlands)
Total Energy Consumption:88,116,676 kWh
Water Consumption:98,650 m³
Waste Generated:708.78 tons

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Saved more than 19 million m³ of water and more than 12,000 kilograms of pesticides by sourcing sustainable cotton since 2018.
  • Converted 769 stores to LED lighting, saving over 13 GWH and more than 6,800 metric tons of CO2 per year.
  • Reduced plastic shopping bag use by more than 75% since 2018.
  • Winsen logistics center awarded gold seal of quality as a “Green Building” by the German Sustainable Building Council.

Social Achievements

  • Achieved “Good” status in Fair Wear Foundation’s annual Brand Performance Check.
  • Implemented Worker Education Program (WEP) in Bangladesh factories.
  • Launched two Living Wage Projects in India.
  • Donated over €150,000 through Takko hilft e.V. in 2022.

Governance Achievements

  • Implemented a compliance management system (CMS) and a risk management system (RMS).
  • Updated Code of Conduct in January 2023.
  • Introduced a reporting system for Takko Fashion as part of the new German Supply Chain Due Diligence Act.

Climate Goals & Targets

Long-term Goals:
  • Reduce GHG emissions to net zero by 2045.
  • Reduce Scope 1, 2, and 3 emissions by 30% by 2030.
Medium-term Goals:
  • By 2030, 90% of products to be made from more sustainable or recycled materials.
  • By 2030, 100% of animal materials to be certified.
  • By 2030, the share of sustainable viscose to amount to 100%.
Short-term Goals:
  • Source all cotton from more sustainable cultivation by 2027.
  • Reach 90% OEKO-TEX® Standard 100 certified textiles by 2025.
  • By 2025, the share of sustainable viscose should already be 70%.

Environmental Challenges

  • Coronavirus pandemic effects, particularly China's Zero COVID policy, causing production delays and fluctuations in container rates.
  • War in Ukraine causing challenges in transportation, energy, and raw material production.
  • Poor availability of organic cotton due to worldwide supply difficulties.
  • Lack of knowledge of existing labor and social standards in production facilities.
Mitigation Strategies
  • Close communication with business partners to find solutions and track risks.
  • Paid upcharges for freight and cotton to support partners.
  • Changed Incoterm from CFR to FCA to help suppliers.
  • Regular training on labor standards and conflict resolution.

Supply Chain Management

Supplier Audits: 464

Responsible Procurement
  • Code of Conduct for Suppliers and Business Partners
  • Human rights due diligence
  • Long-term order planning
  • ZDHC MRSL commitment

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: German Sustainability Code (DNK), GRI Standards

UN Sustainable Development Goals

  • 4
  • 5
  • 6
  • 8
  • 12
  • 13
  • 17

Contribution to SDGs through various initiatives.

Sustainable Products & Innovation

  • Products with recycled materials
  • Products with sustainable viscose (Lenzing EcoVero, Tencel™)

Reporting Period: 2023-02 to 2024-01

Environmental Metrics

Total Carbon Emissions:875,843 tCO2e (Scope 3 upstream) + 31,980 tCO2e (Scope 1 & 2)
Scope 1 Emissions:8,086 tCO2e
Scope 2 Emissions:23,894 tCO2e
Scope 3 Emissions:875,843 tCO2e (upstream)
Renewable Energy Share:100% (Winsen and Telgte sites)
Total Energy Consumption:91,632,000 kWh
Water Consumption:99,042 m3
Waste Generated:644 tons
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Governance
  • Social
  • Environment

Environmental Achievements

  • Converted 1,370 shops to LED lighting, saving 23.3 GWh of energy and more than 12,100 t of CO2 equivalents.
  • Purchased electricity from 100% renewable sources for Winsen and Telgte sites, saving 722.7 t of CO2 equivalents.
  • Reduced plastic bag consumption significantly (from 20.1 million units to 18,250 units).

Social Achievements

  • Launched Living Wage projects in two Indian factories.
  • Implemented Worker Education Program (WEP) in all Bangladesh factories.
  • Introduced anti-harassment committees in Bangladesh factories.
  • Achieved 83% trainee retention rate.

Governance Achievements

  • Implemented a compliance management system (CMS) and risk management system (RMS).
  • Conducted a comprehensive risk analysis to implement the Supply Chain Due Diligence Act (LkSG).
  • Renewed the International ACCORD for Health and Safety in the Textile and Garment Industry.

Climate Goals & Targets

Long-term Goals:
  • By 2045, reduce GHG emissions to net zero (base year 2022/2023).
  • From 2027, source all cotton from more sustainable cultivation.
  • By 2027, 80% of suppliers will submit a wastewater report at or above the Foundational level of the ZDHC.
Medium-term Goals:
  • By 2030, 100% of materials sourced from animals in our products will be certified according to a recognised standard.
  • By 2030, the share of sustainable viscose is to amount to 100%.
Short-term Goals:
  • By 2025, 70% of viscose in products should come from sustainable sourcing and production.
  • By 2025, at least 90% of textile articles certified according to OEKO-TEX® Standard 100.

Environmental Challenges

  • Global supply difficulties impacting the availability of organic cotton.
  • Difficulties in conducting building safety inspections in Pakistan due to a lack of uniform legislation.
  • External dynamics (e.g., Suez Canal crisis) impacting goods transport.
  • Lack of knowledge about existing labor and social standards among suppliers.
Mitigation Strategies
  • Working with Better Cotton Initiative (BCI) to improve cotton farming.
  • Establishing a uniform standard for building safety in Pakistan in collaboration with TÜV Nord.
  • Switching to air transport at short notice when necessary to preserve goods.
  • Regularly training suppliers on labor standards and communication methods for resolving conflicts.

Supply Chain Management

Supplier Audits: 549 audits in 2023/2024 (115 external, 434 internal)

Responsible Procurement
  • Long-term partnerships with suppliers.
  • Distribution of orders among a fixed set of suppliers.
  • Preference for placing orders in the low season.
  • Use of Better Cotton and organic cotton.
  • Implementation of the Code of Conduct.

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: German Sustainability Code (DNK), Global Reporting Initiative (GRI)

Certifications: Oeko-Tex Standard 100, GRS (Global Recycled Standard), RCS (Recycled Claim Standard), Lenzing EcoVero, Tencel™, GCS (Good Cashmere Standard)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • SDG 4
  • SDG 5
  • SDG 6
  • SDG 8
  • SDG 12
  • SDG 13
  • SDG 17

The report mentions that Takko's sustainability strategy is guided by the UN's 17 Sustainable Development Goals (SDGs), particularly SDGs 4, 5, 6, 8, 12, 13, and 17.

Sustainable Products & Innovation

  • Products with TENCEL™ lyocell and modal fibers.
  • Products with LENZING ECOVERO viscose fibers.
  • Products with recycled polyester padding.

Awards & Recognition

  • Not disclosed