Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Took a first step in collecting information and measuring emissions to establish a baseline for future reduction efforts.
• Participated in the Chemicals Group at Swerea IVF to disseminate the latest findings related to chemicals and their potential impacts.

Social Achievements

• Strengthened the team with a sustainability manager in 2017.
• Appointed a Supply, Sourcing and CSR Manager in Nilorn East Asia.
• Implemented a supplier evaluation program in Asia (second year in 2016), focusing on close dialogue and frequent meetings with prioritized suppliers.
• Constructed a new factory in Dhaka, Bangladesh (opened in 2017), aiming to improve worker health and safety and environmental performance.

Governance Achievements

• Became a signatory to the UN Global Compact in January 2017.
• Implemented an anti-corruption policy, requiring employees to sign it during induction.
• Planned to increase focus on business ethics and introduce specific training for employees in 2017.
• Updated the Code of Conduct in 2017 to align with the UN Global Compact.

Climate Goals & Targets

Environmental Challenges

• Ensuring implementation of the Code of Conduct across suppliers in countries with different traditions and legal requirements.
• Collecting consistent and transparent sustainability data from various internal and external partners.

Mitigation Strategies

• Dialogue with suppliers who had not yet signed the Code of Conduct.
• Focus on improving data collection methods in 2017.

Supply Chain Management

Supplier Audits: SEDEX/SMETA audits in Hong Kong, Portugal, and Turkey factories.

Responsible Procurement

• Code of Conduct for suppliers; review of social audits and production capacity; site visits before production; use of BSCI, SEDEX, and other certification schemes.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: bluesign® (textile, plastic and metal accessories), OEKO-TEX® 100 (class 1), ISO 9001 (Portugal factory), FSC (for paper products)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Recycled polyester products; FSC-certified paper labels.

Awards & Recognition

• Hightex Award (Munich Fabric Start)

Environmental Metrics

ESG Focus Areas

• Sustainability
• Human Rights
• Environmental Impact
• Supply Chain Responsibility

Environmental Achievements

• Reduced inventory levels by almost 50 million SEK (contributing to reduced environmental impact)
• Working with Higg Facility Environmental Module (FEM) to measure and track climate impact in own and external production units
• Majority of production units certified or audited for FSC™, Higg, OEKO-TEX®, GRS, and SMETA
• Nilorn Portugal and Hong Kong factories are bluesign® SYSTEM PARTNERS

Social Achievements

• Launched Nilörn:CONNECT platform for increased traceability and transparency, allowing brands to communicate with end consumers
• Average number of employees in the Group at year-end 2023 was 593 (587), of which 250 (247) were women
• Committed to realizing and integrating the ten principles of the UN Global Compact on human rights, labor law, the environment, and anti-corruption
• Nilörn's Code of Conduct is based on the Ethical Trading Initiative’s Base Code

Governance Achievements

• Established a compensation committee for handling salary levels, pension benefits, incentive matters, and other terms of employment for the president and other members of Group management
• Nilörn has zero tolerance for bribery and corruption. All employees are subject to an anti-corruption policy
• Annual statements published in accordance with the UK’s Modern Slavery Act

Climate Goals & Targets

Environmental Challenges

• Unsettled world affecting general consumption, particularly in the sport/outdoor segment due to large finished goods inventories
• Weaker development in Turkey due to high inflation
• Difficulties in gaining control over quality, working conditions, and sustainability in Bangladesh
• Increased EU legislation linked to the Green Deal requiring adaptation

Mitigation Strategies

• Investing in expanded production capacity in high-growth countries (Bangladesh, Vietnam, Portugal)
• Intensifying efforts on Nilörn:CONNECT to strengthen digital presence and enhance customer experience
• Investing in digital products and guiding customers on sustainability and compliance
• Strategic cooperation agreement with Worldfavor to strengthen Nilörn:CONNECT and sustainability position
• Own production in Bangladesh to gain control over service, quality, and CSR

Supply Chain Management

Supplier Audits: SMETA supply chain audit

Responsible Procurement

• Supplier code of conduct
• Environmental requirements
• Chemical list
• REACH compliance

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact, IFRS

Certifications: bluesign®, FSC™, GRS, RCS, OEKO-TEX® STANDARD 100, RecyClass, SMETA

Third-party Assurance: Third-party verification for Nilorn Bangladesh, Nilorn East Asia, Nilorn Portugal, Nilorn Turkey, Nilorn UK, and Nilorn Distribution Centre in Germany

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

Nilörn's activities contribute to these goals through sustainable product development, responsible supply chain management, and commitment to the UN Global Compact principles.

Sustainable Products & Innovation

• Nilörn:CONNECT platform
• Sustainable label and packaging options

Awards & Recognition

• Nasdaq ESG Transparency Partner

Environmental Metrics

ESG Focus Areas

• Sustainability
• Digital Product Passport

Social Achievements

• Expanded marketing department to increase market focus and activity

Governance Achievements

• Strategic collaboration with Worldfavor to strengthen Nilörn:CONNECT solution and offer for Digital Product Passport

Climate Goals & Targets

Environmental Challenges

• Lag in the outdoor segment
• Slowdown in some luxury brands
• Packaging increased as a share of turnover, slightly negatively impacting gross profit margin

Mitigation Strategies

• Margin-enhancing measures in purchasing and increased in-house production
• Guiding customers on sustainability and adaptation to EU Green Deal legislation
• Strategic partnership with Worldfavor

Supply Chain Management

Climate-Related Risks & Opportunities