Climate Change Data

ODLO International AG

Climate Impact & Sustainability Data (2018-07 to 2019-06)

Reporting Period: 2018-07 to 2019-06

Environmental Metrics

ESG Focus Areas

  • Social Responsibility
  • Ecological Responsibility
  • Product Responsibility

Environmental Achievements

  • Introduced a new transport mode ('rail + truck') saving 1,100 kg CO² per transport from Romania to Germany.
  • Banned single-use poly bags for accessories (FW19) and will extend to other product categories (SS20).
  • Increased environmental monitoring of Tier 1 & Tier 2 suppliers using the Higg Index (88% of total FOB for Tier 1 and 70% for Tier 2).

Social Achievements

  • Continued Living Wage Pilot in Romania.
  • Increased local presence and stakeholder networks in manufacturing countries.
  • Maintained FWF leader status.

Governance Achievements

  • Successfully performed Higg FEM audit at ODLO’s facility in Romania.
  • Implemented Design & Development Module (DDM) to increase awareness and assess concepts early in the product creation process.

Climate Goals & Targets

Long-term Goals:
  • Reduce CO2 footprint significantly through combined rail/road transportation.
Medium-term Goals:
  • Achieve 100% FC-free DWR finish.
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Delayed availability of Higg FEM results.
  • Excessive overtime in some factories.
  • Living wage gap in some factories.
  • Challenges in Myanmar regarding adherence to FWF's eight labour standards.
  • Higher demand than forecasted impacting EU suppliers.
Mitigation Strategies
  • Implemented a new production plan to anticipate and smooth production peaks.
  • Increased local presence and on-site corrective action plan follow-ups.
  • Joined Fair Wear Foundation's Living Wage Incubator.
  • Developed a special due diligence process for high-risk countries like Myanmar.
  • Pulled production forward to flatten out production over the year.

Supply Chain Management

Supplier Audits: 11 facilities audited (70%+ of ODLO’s fabric purchasing volume)

Responsible Procurement
  • ODLO Supplier Code of Conduct
  • Long-term partnerships with manufacturers
  • Higg Index and FWF assessments
  • Open costing principle for pricing

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Fair Wear Foundation (FWF), Sustainable Apparel Coalition (SAC)

Certifications: STANDARD 100 by OEKO-TEX®

Third-party Assurance: Fair Wear Foundation (FWF), independent third-party verifier for Higg FEM audit

Sustainable Products & Innovation

  • Products made from sustainable Tencel materials
  • Increased use of recycled polyester