Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable products
• Occupational health and safety
• Economic performance
• Health and safety of our products
• Environmental compliance

Environmental Achievements

• 30% year-on-year drop in the Lost Time Accident Frequency Rate
• Bentley successfully completed its NSF/ANSI 140 audit
• Balta home launched ten sustainable collections
• Modulyss was awarded Cradle to Cradle Certified ® Platinum, Gold and Silver certificates for 127 sustainable products
• Balta’s first Pureloop re-granulation line became fully operational with a capacity of 1,000 tonnes per year

Social Achievements

• 30% year-on-year drop in the Lost Time Accident Frequency Rate
• Renewed commitment to employee well-being
• Launched employee well-being survey (SENSOR)
• Organised several workshops on teleworking and COVID-19 measures
• Donation of out-of-use smartphones and tablets to Connected Smiles initiative

Governance Achievements

• Installed internal Sustainability Committee
• Clear focus on antitrust policy and setting up a new process and policy for whistleblowing
• Implemented a whistleblowing policy and tool

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on business and employee well-being
• Subdued demand and revenue decline due to COVID-19
• Aging blue-collar population in Belgium
• High attrition rate for white-collar workers in Belgium
• Water scarcity in Flanders, Belgium

Mitigation Strategies

• Swift and decisive measures to protect employees and stakeholders, reduce operating costs, and manage cash flows
• Resumed investment in Lean, supply chain, and procurement initiatives
• Implemented cost-saving measures
• Renewed strategy to improve employee retention
• Investments in water recycling and process changes to reduce consumption

Supply Chain Management

Supplier Audits: Yearly audits of suppliers operating in high-risk countries (India and Bangladesh), cancelled in 2020 due to COVID-19

Responsible Procurement

• Supplier Code of Conduct (finalized in late 2020)

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity, drought, extreme weather

Transition Risks

• EU ETS Directive, stricter legislation on emissions, changes in raw material availability and prices

Opportunities

• Development of energy-efficient products, renewable energy sourcing, water recycling

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 14001, ISO 9001, Oeko-Tex®, Cradle to Cradle Certified®

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 3 (Good Health and Well-being)
• Goal 6 (Clean Water and Sanitation)
• Goal 8 (Decent Work and Economic Growth)
• Goal 12 (Responsible Consumption and Production)

Initiatives related to occupational health and safety, water usage reduction, waste recycling, and sustainable product development.

Sustainable Products & Innovation

• RE_GENERATION rugs (recycled PET bottles), NEW GENERATION rugs (washable, single-material), Cradle to Cradle Certified® products, ecoBack backing

Awards & Recognition

• Cradle to Cradle Certified® Platinum, Gold and Silver certificates, NSF/ANSI 140 certification, Oeko-Tex® certification, QA-CER Recycled Content certification

Environmental Metrics

ESG Focus Areas

• Sustainability
• Occupational health and safety
• Economic performance
• Health and safety of our products
• Environmental compliance

Environmental Achievements

• Reduced total CO2 emission per m² produced by 22% compared to the 2018 baseline.
• 15% reduction in gas consumption per m² and 10% in electricity vs. 2021.
• Increased certified recycled content in European commercial carpet tiles from 30% in 2018 to 52% in 2022.
• Launched Modulyss's first entirely cradle-to-cradle Gold Certified® collection, Artcore.

Social Achievements

• 42% reduction in accident severity rate.
• 28% women in top leadership positions at Belysse Europe.
• 33% women in top leadership positions at Bentley.
• Decreased employee turnover from 7.9% to 6.39%.

Governance Achievements

• Established a clear focus on antitrust and GDPR legislation, as well as on cybersecurity.
• Further development and introduction of a formal Code of Conduct planned.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions, particularly in Europe.
• Unprecedented cost inflation in materials, energy, transportation, and payroll costs in Europe.
• Lower market demand in the European Residential business in the second half of 2022.
• Industry-wide lower supply availability of recycled materials in the US.
• IT split in Europe following the separation and sale of the traditional Balta businesses.

Mitigation Strategies

• Successfully addressed operational challenges in supply chain, finance, and IT.
• Implemented multiple price increases in response to cost inflation.
• Focused on reversing margin pressure through commercial actions, procurement optimization, and supply chain globalization.
• Investigating potential alternative sourcing strategies for recycled materials in the US.
• Upgrading Supply Chain in Europe to enhance delivery performance and increase responsiveness.

Supply Chain Management

Supplier Audits: On-site audits conducted for non-European and non-US suppliers; a number of prospect suppliers in Turkey audited in 2022.

Responsible Procurement

• Supplier Code of Conduct covering compliance with laws, human and labor rights, health and safety standards, environmental impact, and ethical business conduct.

Climate-Related Risks & Opportunities

Physical Risks

• Drought
• Extreme weather

Transition Risks

• Regulatory changes (EU Green Deal, Fit for 55 package)
• Increased demand for low-carbon raw materials
• EPR legislation

Opportunities

• Development of energy-efficient products
• Development of monopolymer products and production processes that reduce emissions

Reporting Standards

Frameworks Used: GRI Core option

Certifications: Cradle to Cradle Certified® (Gold and Silver), NSF/ANSI 140 (Platinum and Gold), ISO 50001 (Zele plant), ISO 14001 (Belgian plants)

UN Sustainable Development Goals

• SDG 3
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 12
• SDG 16

Initiatives contribute to these goals through various environmental and social programs.

Sustainable Products & Innovation

• Artcore collection (Modulyss)
• Products with recycled polyamide and polyester yarns (ITC)
• HAVEN range (ITC)

Awards & Recognition

• Sterpunt Reference Certificate for inclusive employment

Environmental Metrics

ESG Focus Areas

• Sustainability
• People
• Planet
• Business Ethics

Environmental Achievements

• Reduced total CO2 emission per m² produced by 22% compared to the 2018 baseline.
• Increased share of renewable electric energy from 30% to 36%.
• Improved certified recycled content in commercial carpet tiles to 52% in Europe and 34% in the US.
• Expanded Cradle to Cradle certification to 26 collections (from 22).

Social Achievements

• Obtained ISO 45001 certification for Occupational Health & Safety Management System at Zele production site.
• Organized townhall meetings in Belgian production sites to improve employee communication and wellbeing.
• Launched employee wellbeing survey.
• Participated in job fairs and launched employer branding campaign 'The people from Belysse'.

Governance Achievements

• Established an ESG committee to oversee ESG governance and performance.
• Pledged commitment to the Science Based Targets initiative (SBTi).
• Further focused on creating awareness about the global whistleblowing line.

Climate Goals & Targets

Environmental Challenges

• Slowdown of market demand in the US due to high inflation and increased interest rates.
• Pronounced slowdown in market demand in Europe in both Residential and Commercial segments.
• Lower supply of recycled materials in the US in 2022.
• Higher attrition rate for white-collar workers in Europe.
• Higher cost of living affecting Bentley Mills' employees.
• Challenge of attracting new workers with specific textile industry skills.
• Increased demand for low-carbon raw materials resulting in lower availability and higher prices.
• Risks related to antitrust, GDPR, and economic sanctions regulations.
• Cybersecurity issues.

Mitigation Strategies

• Executed a fixed expense reduction program in Europe.
• Shifted production towards Make To Order processes in Europe.
• Successfully completed the transition to alternative yarn suppliers in the US.
• Organized townhall meetings and launched employee wellbeing survey in Europe.
• Participated in job fairs and launched employer branding campaign.
• Increased use of recycled or biobased raw materials.
• Regularly organised antitrust training sessions and awareness programs.
• Implemented additional security measures to strengthen data security.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct based on UN Guiding Principles on Business and Human Rights

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Drought
• Water scarcity

Transition Risks

• Increased cost of sourcing raw materials
• EU Taxonomy
• Carbon Border Adjustment Mechanism (CBAM)
• Extended Producer Responsibility (EPR)

Opportunities

• Development of energy-efficient products
• Increased demand for sustainable products

Reporting Standards

Frameworks Used: GRI Core option

Certifications: ISO 45001 (Zele site), ISO 50001 (Zele site), ISO 14001 (Belgian sites), LEED EB: O+M Gold (Bentley Mills)

Sustainable Products & Innovation

• EcoBack carpet tile
• ComfortBackeco backings
• Products with 100% recycled polyester yarn
• Ecoluxe backing