Transparency report 2023 - 2022 Report

A decade of commitment to sustainability. Founded in Madrid. Since 2012.

Transparency Report 2022

A decade of commitment

LEFRIK 2022 REPORT

INDEX

About Us

5

CEO letter

7

Our values

8

Commitment Code of Conduct

10 12

Products

16

Fabrics Recycling process Credentials

18 20 24

2022 review

26

Key figures Stakeholders Social

28 30 40

Impact

46

Product lifespan Lifecycle analysis Transport & packaging

48 51 56

What’s Next

58

2

PRODUCTS MADE

WITH

COMMON SENSE

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LEFRIK 2022 REPORT

ABOUT US

About Us

For a decade now, Lefrik has been committed to extending the lifespan of recycled plastic bottles by using them as raw materials for the production of our products. We are a group of individuals passionate about the way color and innovative materials can connect with the senses. We incorporate this passion into the design of our high-performance backpacks, bags, and accessories, which are made from recycled plastic bottles, and are both functional and stylish. At Lefrik, we firmly believe that sustainable fashion is achievable.

Founded in Madrid. Since 2012

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“This decade has shown us that if you work hard together as a team, you will be able to make it through whatever it comes.”

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LEFRIK 2022 REPORT

CEO LETTER

CEO Letter

Dear all, As I sit down to write this letter, I find myself optimistic and energized by what lies ahead for Lefrik I’m incredibly grateful to the team that daily dedicated so much time and effort to make 10 years of Lefrik a reality today. Despite the unusual number of simultaneous challenges faced this last decade, the reality has shown us, that if you work hard together as a team, keep faith in your suppliers and partners and fulfil with positiveness the challenges, you will be able to overcome whatever it comes. In 2022, we have not only grown as a brand but also as a committed to sustainable company, we have increased or donations as 1% for the planet member and we have learned more about our impact, measuring our product life cycle. 2022 has been also the year in which we have become a GRS certified company, making a huge step forward in traceability and social commitment. 2022 was indeed an incredible year. We at Lefrik are grateful to our customers for their business and trust, to each other for our hard work, and to our partners and suppliers for their support and encouragement. By working together, we will be an even better, more- connected organization. We will continue to shine and make Lefrik a source of pride for all of us. We will keep winning the future challenges.

Curra Rotondo , CEO and Co-founder of Lefrik

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LEFRIK 2022 REPORT

OUR VALUES

Our Values

At Lefrik, sustainability and timeless design are not just words but integral parts of our core values. Our goal is to create products that are practical, functional, and environmentally responsible, and that you can use for years to come. We achieve this by using lightweight, durable, and innovative materials in every design and paying attention to the smallest details.

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We constantly challenge ourselves to improve our products, seeking out new materials, styles, and concepts. Our focus on mindful consumption means we must continue to make the right choices at every step of the way. We prioritize protecting the planet and fighting social injustices while contributing to causes that care for people and the environment. We are proud of our environmental impact approach, which includes reducing the use of virgin polyester and extending the life of discarded plastic bottles, as well as minimizing waste and saving energy in the production process. Our products are designed in Spain and ethically manufactured in Asia, where the best techniques for making polyester out of recycled plastic PET bottles are available. As a GRS certified company, we measure and evaluate our environmental footprint and work to minimize it as much as possible. We maintain strong relationships with our suppliers, regularly auditing each factory to ensure fair wages, reasonable hours, and a safe environment for workers. In addition to our commitment to the environment, we are also advocates for animal rights. Our products are certified vegan by the animal welfare organization PETA, and our Maverick foldable trolley was awarded as the best vegan luggage in 2019. We believe that our backpacks can be both functional and modern while remaining cruelty-free.

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LEFRIK 2022 REPORT

OUR VALUES

Commitment

Our sustainability policy goes beyond just recycling and applies to all aspects of our brand. — In recent years, we have worked diligently to find partners who share our values and commitment to social and environmental best practices. We prioritize quality, traceability, and sustainability throughout the entire product lifecycle, with the ultimate goal of achieving a circular model that allows the recycling of our products. We strive to be recognized not only for our products, but also for our unwavering dedication to doing what’s right for people and the planet. Our approach is grounded in sensory engagement and centered around people, ensuring that our actions always prioritize their well-being.

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LEFRIK 2022 REPORT

OUR VALUES

Code of Conduct

Lefrik is a company that firmly believes in upholding sustainable environmental and social practices as a core part of our philosophy. We strive to make a positive impact in everything we do. To honor this commitment, we collaborate with our business partners and suppliers to provide value to all stakeholders. This Code of Conduct is applicable to all parties involved in Lefrik’s operations, including the company itself, its business partners, suppliers, and subcontractors, as well as all internal and external employees.

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1.ENVIRONMENTAL PRACTICES I. Protection of the Planet and Its Resources. At Lefrik, we prioritize the following practices in the production of our products: — Utilization of eco-friendly materials and production methods. — Emphasis on high-quality products to enable long life cycles. — Reduction of water use and packaging. — Minimization of pollution caused by transportation. a) All local and country-specific laws in each individual place of operation must be met as a minimum standard. Suppliers are responsible for ensuring that law- respecting practices are implemented throughout their supply chain. b) Suppliers must abide by the precautionary principle when making decisions that involve the use of natural resources and the potential for environmental pollution. c) We encourage businesses to adopt eco- friendly behavior and practices. II. ANIMAL RIGHTS a) We believe in treating all animals with respect and dignity and ensuring their welfare is maintained by all businesses.

2. SOCIAL PRACTICES I. HUMAN RIGHTS a) All parties involved are required to respect and uphold internationally recognized human rights. b) Abuses of human rights in their own or supplying operations are strictly prohibited. c) These standards apply to both employees and external partners. II. LABOR a) Employees must be of legal working age in accordance with their country’s laws. Child labor is strictly prohibited for both our suppliers and their supply chain. b) Employment should be voluntary and discrimination-free. c) Harsh or inhumane treatment of employees is not acceptable, and all disciplinary procedures must be properly documented. d) Parties must ensure workplace safety and health, with access to clean toilets, drinking water, and appropriate Personal Protective Equipment (PPE) where necessary. e) Employees must not face discrimination in employment on any grounds, including but not limited to: race, age, gender, disability, religion, political affiliation, or sexual orientation. f) Employees have the right to freedom of association and to collectively bargain for their interests within the workplace. g) Compensation must adhere to industry and national standards. Payment of minimum wage is guaranteed, and the aim is to provide a living wage. Payments and other compensations must be made regularly and reliably. Employees have

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3. BUSINESS PRACTICES I. PRODUCT DEVELOPMENT

the right to request written statements justifying how their wage has been determined. Remuneration must be equal for workers performing the same work or activity regardless of sex. h) Any leave, such as annual, maternity, or sick leave, must be paid according to legal regulations as a minimum. i) Regular working hours must adhere to legal and national laws, with at least one day off per week being a minimum requirement.

a) Parties are encouraged and enabled to adopt eco-friendly and socially responsible design and production practices. b) Sustainability is best achieved through cooperation, and Lefrik is open to collaboration and exchange to achieve the most sustainable practices possible. II. TRANSPARENCY a) Parties must comply with national regulations regarding transparency and honesty. b) Partners are expected to promote transparency throughout their entire supply chain. c) Corruption, extortion, and bribery are strictly prohibited. d) Partners must provide proof of compliance through video or other visual material to Lefrik or an appointed third- party auditor.

This Code of Conduct serves as an agreement between Lefrik and its business partners to uphold and exceed the above- mentioned standards to the best of their ability .

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LEFRIK 2022 REPORT

OUR PRODUCTS

Our Products

Our collection has evolved following the changes that surrounds us, but always keeping sustainability as our core. From material selection to processing, we are pushing ourselves a step forward towards a circular business model, and that starts with design. — We make sure all of our items will be durable and will be worn throughout years, even decades; so we test any significant issue that could prevent it for all our products: such as colour fastness and strength tests (tear strength, tensile strength, abrasion, and seam slippage). Longevity means quality, not only in terms of product durability as explained above, but also meaning timeless designs. We avoid trends that won’t stood up the test of time and instead we focus on creating pieces that can be an everyday essential.

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LEFRIK 2022 REPORT

OUR PRODUCTS

Our Fabrics

Lefrik’s core value is reducing the use of virgin polyester and rather extending the life of discarded plastic bottles, while saving energy in the production process. — The Textile Exchange recommends recycled polyester as a preferable fiber. Recycling polyester reduces air pollution and offers various other advantages. The feedstock of recycled polyester consists of post-consumer waste that can no longer serve its original purpose and can be recycled mechanically or chemically. Recycled polyester accounts for approximately 7% of the polyester fiber produced. In Lefrik we use 100% RPET fabrics in all our products, with only 5 fabrics we manufacture our entire collection, which makes us very efficient in consumption during the production process and our products are easily recyclable at the end of their life. RIPSTOP FABRIC : this technical fabric is very light, water and scratch resistant. Its unique texture gives our products a premium and distinctive finish as at the same time their raised squares prevent it from ripping and its great for outdoor activities. OXFORD FABRIC : this material has been the main fabric used througout Lefrik’s history. The weaving type gives the fabric durable and breathable properties as well as a soft hand feeling which makes it the perfect choice for our products. It has also water-resistant properties making it versatile.

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Recycling

BOTTLE

CHIPS

PELL

Lefrik uses recycled polyester, whi

The resulting fabric is dyed unde which guarantees that it is free f and coated with TPE to

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g process

LETS

FIBER

FABRIC

ich has been mechanically recycled

er the OEKO TEX 100 standard, from toxic chemical substances, make it water-repellent.

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LEFRIK 2022 REPORT

OUR PRODUCTS

Recycling Process

Lefrik uses recycled polyester, which has been mechanically recycled. To achieve this, PET bottles are collected and transported to a recycling plant, where they are sorted and washed to remove impurities and non-plastic components such as labels. Once cleaned, the plastic bottles are ground into flakes, which are then dried, melted, and shredded into pellets for the manufacture of new products. These pellets are melted again, passed through a spinneret, and spun into long fibers, which are then spun into a new thread. The thread is wound onto spools, baled, and knitted into a new recycled polyester fabric. This fabric is dyed under the OEKO TEX 100 standard, which guarantees that it is free from toxic chemical substances, and coated with TPE to make it water-repellent. Finally, the fabric is transported to Lefrik’s cut and sew supplier, who creates the final backpack.

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LEFRIK 2022 REPORT

OUR PRODUCTS

Credentials

Our actions go beyond words, and our sustainability credentials are concrete evidence of this. These sustainability credentials are a reflection of our commitment to a more sustainable future, and we continue to look for innovative ways to continuously improve our performance in terms of sustainability and social responsibility.

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LEFRIK 2022 REPORT

OUR PRODUCTS

PETA Vegan Lefrik is vegan approved by the animal welfare organization PETA; this label of recognition guarantees that no animals have suffered while making our backpacks. People for the Ethical Treatment of Animals (PETA) is the largest animal rights organization in the world, with more than 6.5 million members and supporters. By meeting all standards and being approved by PETA, we join them on their fight for the animal rights. 1% for the Planet Since 2012 when Lefrik was founded, the main purpose of the brand has been to offer low environmental impact products and make our contribution towards achieving a better world for everyone. Through our continued support to 1% for the Planet and all the non-profit organizations joining this amazing community, we’ve been able to play a part in the global changes our planet needs to survive industry activity. By donating 1% of our yearly revenue to these organizations, we’re increasing our partners network and closely monitoring the project’s development we’re supporting which are aligned with our brand identity. Global Recycled Standard All Lefrik fabrics are certified by Global Recycled Standard (GRS); a certification that ensures not only the recycled content of its products (both finished and intermediate) but also social and environmental practices and the use of chemical substances in its production. GRS works to measure the recycled content of fabrics, ensure good working conditions, and minimize harmful environmental and chemical impacts during the production process. This includes all factories involved in the production of the fiber, spinning, weaving, dyeing, printing and sewing of the fabrics. Recently, Lefrik has also been audited and found to be in conformity with the Global Recycled Standard as a brand.

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LEFRIK 2022 REPORT

2022 REVIEW

2022 Review

This past 2022, we commemorate an important milestone for our brand: a decade since our launch. In the past year, our team has persevered through many challenges, but our unwavering dedication and commitment have resulted in remarkable achievements. — Despite the global challenges affecting everyone’s life, from global prices inflation, an on-going war and the consequences of the COVID19 pandemic that we still face nowadays; 2022 has made us realized we are stronger when we stand together and support each other. That’s why we fight everyday not only to put our planet first, but also our people; by strengthening our bonds with our partners around the globe, from suppliers to commercial clients and final customers. We’ve achieved great milestones as a sustainable brand this past year, from analyzing the cradle to gate impact of our main products, to being GRS certified as a brand and our finished products, not only the materials used in our backpacks. By working with our long-term partners and finding new ones committed to the environment as much as we are, we’re moving forward to become a zero- footprint company and offer truly eco-friendly products to our community.

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27

Key fi

+600 POS

5 FAB

Points of sale in 30 different countries

Used to produced t

92.000

4 FACT

Items sold through all chanels

In 3 different co Vietnam &

GRS CERTIFIED

9 PEO

Lefrik has been certified as GRS as a brand. Licence: CU1211138 GRS- 2023-00024272

In our team. All o

28

figures

BRICS

+1.500

the whole collection

Products donated to companies comitted to social and enviromental causes

TORIES

DONATIONS

ountries: China, & Camboia

Multiple donations trough 1% for the planet to non profit environmental organisations

OPLE

6 HERO PRODUCTS

of them women

Life cycle analysis

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LEFRIK 2022 REPORT

STAKEHOLDERS

Stakeholders

As a company committed to transparency and accountability we recognize the inva- luable contributions of our stakeholders, including our esteemed team, trusted su- ppliers, loyal costumers, and the commu- nities we serve through our social actions. — Our team of 9 dedicated and talented professionals is the driving force behind our success. Their hard work, passion and commitment to our mission have been fundamental to achieving our goals. We are proud of our team’s achievements and recognise their invaluable role in the growth of Lefrik. We work from our Madrid office, combining onsite and remote work to enable the work-life balace of all our staff.

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LEFRIK 2022 REPORT

STAKEHOLDERS

Suppliers

Our suppliers play a crucial role in our supply chain, providing us with the resources and support necessary to deliver high-quality products and services to our customers. We value their partnership and are committed to fostering mutually beneficial relationships based on trust, transparency, and fair practices. We base our cooperation with suppliers on durable, long-term partnerships with a few suppliers. We work closely with them in developing our products and in the production planning. We are always striving to improve the quality and finishes, as well as innovate in our products. So, whenever we find ourselves in the need to start a new partnership we follow these steps:

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1

Source and check new supplier references.

2

Establish communication with them letting them know our needs and expectations.

3

Request them proof of sustainable / fair living conditions / recycled certifications.

4

Ask them to sign our Code of Conduct.

5

Start working together!

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LEFRIK 2022 REPORT

STAKEHOLDERS

Our suppliers are located in three di- fferent territories: Vietnam, Cambodia and China. From the very beginning, we decided to produce our products in Asia because we found there the best techniques for processing plastic bottles into recycled polyester fabric. Greenpeace reports that 500 billion plastic bottles are produced worldwide every year, being China de largest producer, with 30% of the total. Our RPET fabric is obtained from the recycling plant in Jiangsu, China. However, despite this significant geographical distance with our suppliers, we work closely together to guarantee the compliance of labour rights, health, safety and work ethics, thanks to the regular audits carried out by entities such as SEDEX, BSCI or SA800, as well as regular trips to the factories to meet in person.

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LEFRIK 2022 REPORT

STAKEHOLDERS

Manufacturing

Camboia/ Pactics

Vietnam / Metric

Pactics is our Cambodian manufacturer- located in Siem Reap, where their factory staff are from, avoiding relocating them to bigger cities pushing them away from their families and hometowns. Their core value is to do right by the people making their products, being certificated by SA8000 International workplace-quality standard: based on the concept of social accounta- bility its major objective is to ensure appli- cation of ethical practices in hiring and treatment of employees and in production of goods and services. Their production facility is made for its employees. Designed by architect Stuart Cochlin, the factory features 120 solar panels, a biodiesel generator, rainwater harvesting, a library, an on-site nurse, a daycare, a canteen (serving up healthy lunches), and of course, plenty of greenery to cool the buildings. Historically, they have produced for the world’s biggest luxury brands. Today their 700+person team across Asia, Europe and North America is focused on sharing their expertise with all the smaller, mission- driven brands whose values are aligned.

Metric is managed centrally from the UK and their global factory operations is located in Vietnam, where they handle all aspects of production and quality control. All partner factories have been audited by independt organisations such as SGS, STR and Intertek. Their factory plants have also passed audits by various global brands & corporations against their own standards and requirements. As a supplier, Metric has been audited by The Business Social Compliance Initiative (BSCI), an industry-driven movement that aims to monitor and assess workplace standards across the global supply chain.

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China / Igo

China / Tianyou

IGObags is a bags supplier specialized in eco-friendly materials since 2005. Our work with them help us achieve our environmental goals, since they are highly qualitied in green solutions in the industry. They help us to source and discover the latest updates on recycled & sustainable materials. They are certified by the Global Recycled Standard (GRS) is a voluntary product standard for tracking and verifying the content of recycled materials in a final product. The standard applies to the full supply chain and addresses traceability, environmental principles, social requirements, chemical content and labeling.

Tianyou has been Lefrik’s long-lasting partner since our begging. Tianyou is specialised in bags and works as our trader always looking for the best GRS-certified fabric suppliers for Lefrik. They are located in Quanzhou, China. The provide us with all kind of support since the have a strict quallity control sistem and a strong R&D team, so they even supervise the whole recycling process of our fabrics.

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LEFRIK 2022 REPORT

STAKEHOLDERS

Fabric Suppliers

China / Tang Chao

China / Baichuan

Tang Chao focus on the production of various eco-friendly fabrics, and they have been doing so for more than 10 years becoming truly innovators in sustainability. They are certified by the Global Recycled Standard (GRS) is a voluntary product standard for tracking and verifying the content of recycled materials in a final product. The standard applies to the full supply chain and addresses traceability, environmental principles, social requirements, chemical content and labeling.

Baichuan Resources Recycling was founded in 2004 in Quanzhou, China, as a dedicated manufacturer of dope dyed, recycled polyester textiles. Over the past two decades, they have produced 56 patents and 17 industry standards in sustainable polyester textile manufacturing, such as waterless dyieng, a method of dyeing that does not require the use of water. It’s a process that doesn’t need any water and uses less energy than standard dyeing methods while still producing vibrant colors in solids and designs. They are as committed to the environment as they are to their community of customers, employees, and partners. Their passion lies in using their experience to help brands around the world create eco-friendly products. Thats why they are certified as GRS (Global recycled standard).

China / Showtex

They are certified as GRS (Global recycled standard) and their fabrics are approved by Blue Sign, an independent certification that ensures that they have a global seal of approval for environment, health and production safety.

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LEFRIK 2022 REPORT

SOCIAL

Social

As a socially responsible organization, we are committed to giving back to the communities we serve. Our social actions include various initiatives focused on sustainability, philanthropy, and community engagement. We believe in making a positive impact on society and strive to contribute to the well-being of our communities through meaningful actions and partnerships. — Lefrik is always seeking to get involved in new projects where our support can help build the world we want to leave for next generations, by joining forces with courageous organizations who are taking action now for the wellbeing of the planet and most vulnerable communities.

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LEFRIK 2022 REPORT

SOCIAL

Social

CEAR

PSN

The Spanish Commission for Refugee Aid (CEAR) defends and promotes the integral development and human rights of refugees who find themselves in a situation of vulnerability, social exclusion or in need of international protection (asylum seekers). In recent years, we have been supporting different CEAR projects and collaborating in their emergency calls for material, but also getting involved with the communities the organisation is trying to improve their lives. The latest Pride Campaign we developed together with CEAR in June 2022, brought together local artists and refugees supported by CEAR to design a special capsule collection with original artworks expressing their journey and identity. We also participate each year in the Christmas Market to help them raise funds for their ongoing programmes.

Por la Sonrisa de un Niño (PSN) is a certified NGO whose mission is to lift kids out of extreme poverty, leading them to a qualified and decent job, with a fair living wage. They aim to provide quality education to every kid in order to build a more sustainable and equitable world. During 2022, Lefrik made another backpack donation so volunteers can give them as school material to the kids during their yearly program in Cambodia where their facilities are.

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Fundación Sancho y Marina

This entity based near the city of Madrid, where Lefrik’s headquarters are located, works to prevent exclusion and assists children in vulnerable situations. Through its Volunteering and Child and Youth Protection programmes, it promotes the integral development of children and young people and their families (psychological, academic, social and welfare). Lefrik has developed an educational workshop for the children who come to the foundation’s facilities, in which they talk about the responsible consumption of resources, precise recycling processes and creative solutions to extend the useful life of products. We will continue to collaborate in this workshop in 2023 with another group of children assisted by this organization.

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LEFRIK 2022 REPORT

SOCIAL

Social

Healthy Seas Since we became members of 1% for the Planet, we’ve been committed to this NGO which was as founded in 2013 to tackle the ghost fishing phenomenon which is responsible for the needless death of marine animals. Through cleanups with volunteer divers and by working with stakeholders of the fishing sector toward marine litter prevention, they collect waste nets and ensure they become a valuable resource. Lefrik has funded different dives to recover fishing nests in the past, and during the last Black Friday campaign in November 2022, we partnered again with Healthy Seas to support the planet thru a campaign to bring awareness during a massive and irrational sales period. Lefrik CEO and Co-Founder also joined the Healthy Seas team in a very special podcast about overconsumption, sustainable shopping and company ethics. You can listen it here. Fundació Miranda They focus on rescuing and recovering horses that live in difficult situations, abuse, isolation or abandonment, and grant them a dignified life by accompany them in the process of becoming free, healthy and safe in large natural spaces. As they frequently get help of many volunteers, we have donated backpacks and accessories to help them carry out their tasks in the fields while we extend the lifespan of our products.

Through our partnership with 1% for the planet this year we have collaborated with multiple organisations around the world, dedicated entirely to caring for the planet and biodiversity. Each of these partnerships is detailed below:

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Plastic Tides Is a nonprofit ocean conservation orga- nization looking to inspire action throu- gh education and youth empowerment toward a plastic free future. It’s one of our partners in the US where we donate all return backpacks from our final clients so they can have a second life and be used for better purposes. Village Walter their projects are developed in Zambia and Mozambique where they improve health and opportunity to their communities by supporting lasting, local solutions to reach everyone with water, sanitation and hygiene. Lefrik donated backpacks help them arise founds for their projects when sold on their e-shop, but are also used as work material for their volunteers when taken to fieldwork. Arbor Day Foundation This nonprofit organization uses reforestation and urban forestry to solve issues of climate change, community, and biodiversity. Their different tree recovery programs are carried across the United States but also internationally; residents who have lost trees in major disasters caused by wildfires, floods, hurricanes, tornadoes, and insects can receive free trees to plant in their yards, re-establishing neighborhood trees as well as a sense of community. In 2022, Lefrik backpacks were donated to this organization in order to contribute to their efforts to recover major green areas and bring people together for a better future.

Jane Goodall Institute One of the most well-known animal researchers, Dr. Jane Goodall, has been working for decades in the protection of chimpanzees and inspiring people to conserve the natural world we all share, improving the lives of people, animals and the environment. Lefrik has supported the J.G. Institute by donating backpacks to their team so they can be used during their expeditions and be a helpful accessory for their everyday tasks while their volunteers help restoring critical habitat to save chimpanzees from extinction. Plastic Oceans Europe this charitable organization is dedicated to raising awareness on the issue of plastic pollution and on solutions to the problem. Some of their projects include the “Blue Generations” which is an education program to inspire youth to protect nature and the ocean. Because we wanted to be a part of the prevention and not only the solution in terms of massive plastic consumption and recyclable process, Lefrik organized together with Plastic Oceans Europe a volunteer cleaning day in one of the biggest green areas of Madrid, an activity framed during the World Clean Up Day in September 2022.

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LEFRIK 2022 REPORT

IMPACT

Impact

At Lefrik we are committed to mitigate and reduce any negative impact we may have on the environment. Here we would like to share with you the efforts and results achieved over the last year in relation to our environmental performance. Our approach is based on the identification and evaluation of the potential environmental impacts of our operations and activities, as well as the implementation of measures and policies to minimize them. Through careful and responsible management of our resources, we work to protect the environment and contribute to the sustainability of the planet.

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LEFRIK 2022 REPORT

IMPACT

Product Lifespan

Lefrik products are built to last, taking care of every detail of the entire life cycle, from sourcing to manufacturing to distribution and disposal. We follow our four principles from the beginning: reduce, reuse, repair and recycle. — The goal of circularity can only be achieved with the help of our customers, who will extend the life of our backpacks by repairing them when they break or giving them a second life by donating or reselling them when they are no longer in use, or even deconstructing the backpack for proper recycling. To extend the life of our backpacks we offer a repair service, where possible, in collaboration with local repair shops, and we have created a collaborative map on our website where you can find or add a repair shop in each city, engaging our community in our sustainable and cooperative journey.

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Our minimalist designs make the backpacks easy to repair and we also offer the possibility to send our customers replacement trimmings, such as cords or zips, so that they can fix them themselves. Alternatively, in our shop in Madrid we have a collection service for worn or old backpacks and offer a discount to get a new one. Sample Sales are another way of giving our backpacks a second life. In them you can find styles with different sizes, colours or ornaments that were changed for the final production, samples that we use to present the collection or products that in the end were not developed, all at a fair price.

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“We only use 5 fabrics to create the whole collection, which makes the production process more efficient at the same time that making our backpacks easily recyclable”

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LEFRIK 2022 REPORT

IMPACT

Lifecycle Analysis

One of our core values is to reduce the use of virgin polyester through the use of recycled fabrics, but how does the use of RPET fabrics reduce our carbon footprint? — By recycling 1 ton of PET, we free up space of 5.7 m2 of landfill. · The water usage is reduced by 90% when producing recycled polyester instead of virgin. · RPET also requires 70% less energy than producing virgin polyester. · 1 Kg of RPET (made from 100% post-consumer waste) avoids 60 plastic bottles from ending in landfills. · By recycling 1 plastic bottle the energy savings equals 60- watt light bulb for 3 hours. · 51.000 million of plastic bottles end up in the landfill every year across the world. · The current amount of plastic bottles kept in United States landfills could wrap planet Earth five times.

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LEFRIK 2022 REPORT

IMPACT

Enviromental Impact Measure

At the beginning of the year, together with our partner Dcycle, we published the Life Cycle Analysis study of our bestselling products. This was key for addressing all environmental impacts associated with every stage of our production process. The results of the study have led us to measure our whole production in 2022; getting to know the real impact of our business activity from the recycling plant where we source the plastic, to the factory where the fabric is made and the manufacture factory, considering transportation to our warehouse and our final customer. During 2022, Lefrik produced 92.000 backpacks (backpacks, luggage, bags and smaller accessories), which resulted in: - Aprox. 2.430.000 recycled 1.5L plastic bottles. - Water consumptions savings up to 314.604 M3 of water approximately, comparable to 1.052 full bathtubs. - 1.193.292 KG less CO2 emissions, equivalent to 12.409 car trips from Madrid to Barcelona. - The depletion of fossil fuel resources were reduced by 314.604 MJ, which equals to 20.988 refrigerators class A++ fully operational. The following chart shows our environmental and social impact measured from 2020 until today, and a forecast for the following years until 2025.

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In 2022 Lefrik manufactured 92.000 products, which means:

1

Recycling approximately 2.430.000 1,5L plastic bottles.

2

Savings of 1.193.292 kgs of C0 2 emissions equivalent to 12 Madrid-Barcelona car journeys.

3

Savings in water consumption of 314.604 M 3 , equivalent to 1.052 full bathtubs.

4

Reduction of 14.999.430 MJ in fossil fuel resources, equivalent to 20.988 fully A++ fridges.

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LEFRIK 2022 REPORT

IMPACT

Evolution of resources use

2021

2020 2021

2022 2023 2024 2025

1,5L plastic bottles used in the production. In Units

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CO2 emmisions avoided. In Kgs.

Water saved. In M 3

Fossil fuels avoid. In MJ

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LEFRIK 2022 REPORT

IMPACT

Transport & Packaging

Initially, we aimed to keep our entire supply chain within the same country to minimize unnecessary and long-distance transportation. However, in 2021, we decided to relocate part of our production to Vietnam, where we believe we can find better quality fabrics and sustainable trimmings. We prioritize sea freight for our goods whenever possible, as it is the most climate and environmentally friendly transportation option available. We ensure that containers are fully loaded to guarantee logistic efficiency, without any free space. We strictly avoid air shipments. Our factories in either China, Vietnam or Cambodia, handle the transportation of goods to the port by land, where they are then loaded into containers. Once the goods reach the port in Valencia, they are transported by trucks to our warehouse in Madrid. To optimize transportation efficiency, we also aim to deliver directly from the country of origin to nearby regions such as other Asian countries, Australia, New Zealand, and the United States.

We follow our sustainable mission by keeping the packaging minimalist and free of plastic as posible. We recycle all cardboard boxes and polybags from the factory to the warehouse and final customer, and they are FSC certified. Furthermore, we reuse the boxes in which we receive goods from the factory to send them to various retailers. In 2022, we have taken an additional step toward becoming a more sustainable business by replacing recycled cardboard boxes with compostable bags that are carbon-negative, biodegradable, and partially made from corn starch. Our customers can use these bags as compost to help grow their plants at home. At Lefrik’s flagship store, we use paper bags but always provide customers with the option to use a reusable bag and to receive an electronic ticket. We are constantly seeking more sustainable alternatives to reduce our use of natural resources while also protecting our goods.

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LEFRIK 2022 REPORT

IMPACT

In order to be more efficient and sustainable in our logistics operations, we have implemented a storage and distribution strategy based on the strategic location of our warehouses in different geographical regions. Our main warehouse is located in Spain, which allows us to effectively serve the European markets where we have a strong presence. Keeping our main warehouse in Europe allows us to minimise transport costs and reduce our carbon footprint by avoiding long shipping distances. In addition, to supply all of Asia and Oceania, including countries such as the Philippines, Kuwait, Australia and New Zealand, we maintain some stock in our factories located in China. This allows us to reduce lead times and improve customer satisfaction in these regions. In 2022, in line with our expansion and growth plan in the Americas, we have opened a new warehouse there. This allows us to efficiently serve all our customers in the Americas, where we are experiencing strong growth. This storage and distribution strategy is designed to be flexible and scalable, so that we can adapt to the changing needs of our markets and continue to provide quality service to our customers around the world.

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LEFRIK 2022 REPORT

WHAT’S NEXT

2023 Goals

— Designing with circularity in mind is at the core of our business, so we are conti- nuously seeking for innovative sustainable sourcing options that also meet our quality standards. In 2023, we’re looking at increa- sing our curated fabric selection adding SEAQUAL fabric to some items of our co- llection. SEAQUAL fabric is a high quality recycled polyester yarn made from 100% recycled materials including post-consu- mer plastic bottles and plastic captured from the sea, that’s why it contributes to preserving natural resources and reducing the waste in the planet’s water. — Another step forward to reduce our impact in the production process is the Waterless Dyeing technique used by one of new suppliers. This method of dyeing doesn’t require the use of water and uses less energy than standard dyeing methods while still producing vibrant colors in solids and designs.

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— The impact measurement of our whole production analyzed during 2022, has hel- ped us to estimate and implement an im- pact reduction strategy until 2025. In this respect, we’ll also be partnering again with Dcycle to compensate the carbon foo- tprint of our bestselling products, Scout and Scout Mini, through a United Nations project during the second term of 2023. — By defining our impact strategy, we’re committed not only to reduce our carbon footprint along our supply chain, but also to compensate it by giving back to the planet through environmental and social projects. We’ve analyzed the donations we’ve done in the past years and set a budget for the coming years so we never stop suppor- ting organizations aligned with our brand mission and fighting together for a better world to live in.

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LEFRIK 2022 REPORT

WHAT’S NEXT

What’s Next

As we mark the 10-year milestone since the launch of our brand, we are proud of our achievements in 2022. Despite the challenges, we have emerged stronger and we extend our deepest appreciation to our dedicated team, loyal customers, partners and stakeholders for their unwavering support. With a clear vision, sound strategies and a resilient team, we look forward to a bright and successful future for Lefrik in the years to come. Here’s to the next decade of excellence!

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