Climate Change Data

Environmental Metrics

ESG Focus Areas

• Water management
• Energy management
• Waste reduction
• Sustainable product development
• Climate change
• Social Responsibility
• Supply Chain Sustainability

Environmental Achievements

• 7.7% reduction of global carbon footprint since 2016
• 7.5% reduction of global water usage since 2016
• More than 70% of applicable inventory is ZDHC MRSL v2.0 conformant
• 68% of cotton is sustainably sourced
• New Zero Liquid Discharge facility in Parras, Mexico saving more than 140 million gallons of water per year
• Zero Waste to Landfill designation at 16 Elevate facilities
• Recycled nearly 380 million plastic bottles to date through the use of recycled polyester (rPET) fiber

Social Achievements

• Significant decrease in Global Safety Incident Rate
• Implementation of a digital safety reporting system in the US (with plans to expand globally)
• Cone Denim completed first quarterly verification of cotton origin with Oritain, finding all samples compliant
• Expansion of ECO100 (100% recycled thread line)
• Development of additional sustainable thread offerings for customers

Governance Achievements

• Joined the Sustainable Apparel Coalition (SAC) in 2020
• Continued participation in UN Global Compact, UN CEO Water Mandate, ZDHC Programme, and UN Fashion Industry Charter for Climate Action
• Implementing ZDHC Chemical Management System (CMS) Framework and Technical Industry Guide (TIG)

Climate Goals & Targets

Environmental Challenges

• Global pandemic impact on absolute and intensity data in 2020
• Scope 3 emissions generated by production, use, or disposal of products outside of Elevate’s operational control
• Achieving 100% MRSL v2.0 conformance for dyes and chemicals

Mitigation Strategies

• Assessment of materiality and impact of each Scope 3 emissions category
• Submission of Science Based Targets for review and approval by Q4 2021
• Continued efforts towards 2025 Sustainability Goals despite pandemic
• Expanding supplier chemical management program to collect detailed chemical safety data on synthetic fibers

Supply Chain Management

Supplier Audits: 9 (2020)

Responsible Procurement

• Elevate’s Vendor Code of Conduct
• ZDHC MRSL v2.0 conformance

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UN Global Compact, CEO Water Mandate, ZDHC Programme, Sustainable Apparel Coalition, Science Based Targets initiative, Greenhouse Gas Protocol, Higg Index, UN Fashion Industry Charter for Climate Action

Certifications: Oeko-Tex Standard 100, Global Recycled Standard (GRS), Better Cotton Initiative (BCI), Organic Content Standard (OCS), bluesign®

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• 6: Clean Water and Sanitation
• 7: Affordable and Clean Energy
• 9: Industry, Innovation and Infrastructure
• 12: Responsible Consumption and Production
• 13: Climate Action

Elevate's decisions and actions are brought in line with relevant UN Sustainable Development Goals (SDGs).

Sustainable Products & Innovation

• ECO100 thread line
• Burlington’s Restora™ collection
• Burlington’s PF Zero™ sustainable repellency technology
• Cone Denim’s Ozone Flash Finish
• Cone Community Collection

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Stewardship
• Energy Conservation
• Waste Reduction
• Sustainable Product Development
• Social Responsibility
• Supply Chain Sustainability

Environmental Achievements

• Became the first global textile manufacturer to receive validation of Science Based Target goals for reducing greenhouse gas emissions.
• Cone Denim completed installation of Zero Liquid Discharge facility at Cone Denim Parras, saving over 100 million gallons of water annually.
• American & Efird installed a rooftop solar project at Dongmei facility in China, utilizing over 1 MW of renewable energy.
• Burlington awarded Responsible Wool Standard at both US and Mexico wool manufacturing operations.
• Increased renewable fuels utilized across facilities by 46% from the prior year (to 19%).
• Added two facilities to those with Zero Waste to Landfill distinction, bringing the total to 18.

Social Achievements

• Surpassed the requirement of evaluating 80% of facilities by production volume against the Higg FSLM, reaching 83%.
• Achieved DART rates 80% below comparable industry averages.
• Completed implementation of a digital safety reporting system globally.
• Expanded the number of certified facilities related to content claim standards (Organic Content Standard and Responsible Wool Standard).

Governance Achievements

• Updated Chemical Management Program in line with ZDHC Technical Industry Guide and ZDHC Chemical Management Framework.
• Provided training on updated chemical management program for all global operations.
• Expanded supplier chemical management program to collect detailed chemical safety data on synthetic fibers.

Climate Goals & Targets

Environmental Challenges

• Global pandemic and its ongoing impact throughout 2021.
• Sourcing sustainable cotton has become a greater challenge due to increased demand.
• Achieving 100% MRSL v2.0 conformance has been slower than anticipated.

Mitigation Strategies

• Working with each owned and operated facility to set annual plant-level emissions targets and reduction strategies.
• Seeking and evaluating other sustainable cotton programs.
• Actively working toward 100% MRSL v2.0 conformance by engaging suppliers and the global chemical procurement team.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Vendor Code of Conduct
• Quarterly verification of cotton origin with Oritain
• ZDHC Chemical Management Framework

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and processes

Reporting Standards

Frameworks Used: Science Based Targets initiative (SBTi), Higg Index (FEM and FSLM), ZDHC MRSL, UN Global Compact, UN Fashion Industry Charter for Climate Action, CEO Water Mandate, Sustainable Apparel Coalition, SLCP

Certifications: Oeko-Tex Standard 100, bluesign®, Organic Content Standard (OCS), Recycled Claim Standard (RCS), Responsible Wool Standard, Cradle to Cradle Certified™

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 6 (Clean Water and Sanitation)
• SDG 7 (Affordable and Clean Energy)
• SDG 9 (Industry, Innovation, and Infrastructure)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)
• SDG 17 (Partnerships for the Goals)

Elevate Textiles aligns its sustainability goals with the UN SDGs, focusing on those where it has the greatest impact.

Sustainable Products & Innovation

• Cone Denim's hemp denim collection
• Burlington's Restora collection
• A&E's ECO100 recycled thread line
• A&E's Mara rPET and Tera rPET threads
• Safety Components' PF Zero™ technology
• Safety Components' WeatherMax fabrics

Awards & Recognition

• First Star Enterprise for environmental responsibility and hygiene performance (Burlington Jiaxing facility)
• Model Facility in the Jiaxing Industrial zone (Burlington Jiaxing facility)
• 650th award for participation in KEFF-Check program (Gütermann Germany)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Stewardship
• Products & Materials
• People

Environmental Achievements

• Reduced absolute Scope 1 & 2 emissions by 23.6% since 2019
• Reduced GHG emissions intensity by 18% since 2019
• Reduced absolute water consumption by 21.8% since 2016
• Recycled more than 4.42 million cubic meters of water since 2016
• Achieved a global water recycling rate of 16% in 2022
• Commissioned two new rooftop solar power projects in 2022 (China and Sri Lanka)
• 95% reduction in waste sent to landfill from A&E India facility
• Successfully completed ZDHC Chemical Management System (CMS) certification at A&E Gütermann Germany, achieving Progressive Level

Social Achievements

• A&E US recognized in Newsweek magazine’s 2023 list of “America‘s Greatest Workplaces for Diversity”
• Safety performance significantly better than industry average
• Expanded engagement with suppliers by asking them to implement Higg FEM and Higg FSLM self-assessment and verification audit programs
• Conducted 21 3rd party social responsibility audits in 2022

Governance Achievements

• Joined the Textile Exchange in 2022
• Implemented Higg FEM and Higg FSLM verification at all Elevate facilities and are currently implementing these tools across our licensees and key suppliers

Climate Goals & Targets

Environmental Challenges

• Complex and dependent supply chains
• Many obstacles and challenges in achieving sustainability goals

Mitigation Strategies

• Collaboration and partnerships with global organizations
• Continuous improvement principles and tools (PDCA)
• Sustainability Roadmaps and Sustainability Index for each facility
• Monthly review of progress by business units and Elevate Leadership Team
• Use of Oritain testing to ensure cotton traceability

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Higg FEM and Higg FSLM self-assessment and verification audit programs
• Oritain testing for cotton traceability
• ZDHC MRSL and ZDHC Wastewater Guidelines implemented at all facilities

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: SBTi, ZDHC, Sustainable Apparel Coalition (SAC), Textile Exchange, UN Fashion Charter, UN Global Compact, UN CEO Water Mandate, UNGC

Certifications: bluesign, GRS, OCS, RCS, Oeko-Tex, Cradle to Cradle, ISO 50001 (A&E Gütermann Gutach facility), ZDHC MRSL, ZDHC Wastewater Guidelines

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• 3
• 6
• 8
• 9
• 12

Elevate’s Ten Threads of Sustainability program and ongoing efforts align with the UN Sustainable Development Goals (SDGs) in water stewardship, carbon footprint reduction, energy conservation, waste reduction, and sustainable product development.

Sustainable Products & Innovation

• Cone Denim’s hemp collection
• Cone Denim’s Nothing Goes to Waste initiative
• Burlington’s Restora™ Collection
• Burlington’s MCS® family of technologies
• Burlington’s PF Zero™ technology
• Burlington’s bio-based wicking technology
• Burlington’s Green Circle recycled component
• A&E’s ECO100 100% recycled thread line
• Safety Components PF Zero™ technology
• WeatherMAX fabrics

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Stewardship
• Products & Materials
• People

Environmental Achievements

• 35% reduction in scope 1 and 2 greenhouse gas emissions since 2019
• 36% reduction in overall water use since 2019 baseline year
• Installation of a new 100 kWp photovoltaic system in Gutach, Germany
• NOx emission concentration reduced by 77% in Dongmei, China
• Cone Denim’s Parras, Mexico facility recognized with Kontoor Brands Indigood program’s Bronze status for verified water savings
• 62.9% reduction in absolute water usage at Cone Denim from 2016 baseline (exceeding 2025 goal)

Social Achievements

• Annual training on the Company’s Global Code of Conduct
• Completed 23 Higg FSLM/SLCP social compliance assessments across facilities in 2023
• Implementation of Layered Process Audits globally in 2023
• A&E in the US recognized for the second time in Newsweek magazine’s list of “America’s Greatest Workplaces for Diversity”

Governance Achievements

• Elevate is on track to meet or exceed the majority of its 2025 goals
• Leadership roles in key organizations such as Cradle to Cradle and AAFA and active participation in ZDHC, Textile Exchange, and the UN Fashion Industry Charter

Climate Goals & Targets

Environmental Challenges

• Unexpectedly low sell-through of recycled polyester due to cost premium compared to virgin polyester

Mitigation Strategies

• Collaboration between product and sustainability teams to monitor new fiber developments and opportunities
• Sustainability incubator for incorporating new sustainable fibers
• Optimism for improvement as the industry pivots toward textile-to-textile and circular fiber offerings

Supply Chain Management

Supplier Audits: 23 audits in 2023; goal of at least 50% of suppliers audited by 2030

Responsible Procurement

• Sustainable Procurement Policy
• Higg Index suite of sustainability and social compliance tools
• Vendor Code of Conduct aligned with ILO fundamental conventions

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Market shifts related to recycled polyester

Opportunities

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

Reporting Standards

Frameworks Used: Science Based Targets initiative (SBTi), UNFCC Fashion Industry Charter, Higg Index, ZDHC MRSL, SLCP, UN Global Compact

Certifications: GRS, RCS, OCS, bluesign, OEKO-TEX, Cradle to Cradle Certified®

Third-party Assurance: Cascale-approved assessors; third-party verification audits

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Cone Denim’s Bonzai fabric
• A&E’s ECO100 thread
• Burlington’s Restora™ Collection
• Safety Components’ PF Zero technology
• Burlington's MCSRenew finish

Awards & Recognition

• US EPA’s SmartWay Excellence Award (semifinalist)
• Newsweek’s “America’s Greatest Workplaces for Diversity” (A&E)