Stanley/Stella - Social Report 2022 - ENGLISH

OUR PATH TO SUSTAINABILITY

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“We are an innovative Belgian apparel company producing premium clothing for printing and decorating and our goal is to contribute to a fully sustainable supply chain. This report shows our commitments and the steps we are taking to improve our supply chain for a healthier planet and happier people. We like to ‘say what we do and do what we say’, as we believe that sustainability is first and foremost a question of commitment and transparency. Through the report, we provide insights into the complex challenges associated with the textile industry, how we tackle those challenges, and what our future aspirations are. At Stanley/Stella, we have some ambitious plans for which the road ahead will be long and winding. We are striving to provide workers in our partner factories (i.e. our Tier 1 suppliers) with a living wage and are working to reduce our carbon footprint across our supply chain. Furthermore, we are excited to share the Stanley/Stella Charter, which will be our guiding framework towards operating as a responsible company in the garment industry.”

Jean Chabert, Founder and CEO Stanley/Stella

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CEO statement

8 10 12 14 3 6

Standing by our commitments

Our people supporting sustainability The Stanley/Stella Charter Our responsible supply chain Our certifications and memberships

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Choosing our materials consciously

Organic cotton Recycled cotton Recycled polyester Recycled nylon Modal Chemicals

18 22 24 26 26 27

Minimising our environmental impact

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Carbon footprint Water

30 32

Caring about people

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Social responsibility Fair Wear Foundation

36 38 42 44

Living wages Local projects

The Stanley/Stella community

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Our suppliers Our distribution network Our logistics partners

48 52 54

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“We want to make sure that our sustainability commitments lead to actions and real impact; the way we work must contribute directly to the achievement of our social and environmental objectives.”

Michel Hublet, Head of Sustainability

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Standing by our commitments Placing focus on sustainability is no longer an option, it’s a must. At Stanley/Stella, sustainability is part of our core values and is fully integrated in our business culture. We believe that a fairer and more sustainable fashion industry is possible and that it’s our shared responsibility to continuously improve how we create and operate. From the cotton field to our collection, to how we manage our waste, our objective is always to act with transparency for people, our planet, and for society. In addition to having dedicated sustainability teams at our Brussels headquarters and also close to our suppliers in Asia, we have confirmed our commitments through the newly introduced Stanley/Stella Charter. These commitments are further reinforced through actions across our supply chain and are supported by various certifications and memberships.

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At Stanley/Stella, People and Sustainability are two of the four core values (in addition to Excellence and Innovation) that guide us on our journey. Across our entire operations and organisation, we actively strive to create working environments that feel positive and empowered, and where consideration for people, our planet, and for society is integrated in everyday decisions and actions. We have several sustainability teams across our locations: Our people supporting sustainability

In our Brussels headquarters, we have a team of four people working on our long-term sustainability strategy and short-term actions. This core team makes sure that sustainability is embedded across functions, and at every level of the company. In Dhaka, we have a team of three people closely monitoring and liaising with our partner factories on a daily basis. Recently, we have inaugurated new offices in Dhaka, which will follow similar principles to our Brussels HQ in terms of sustainable materials and energy efficiency.

In Beijing, our China Operations Manager handles the sustainability- related compliance obligations for our local supplier.

In India, we have a Cotton Sourcing Specialist who supervises local operations.

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Stanley/Stella HQ team, Brussels, Belgium 2022.

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The Stanley/Stella Charter Together with our employees, suppliers, and Official Dealers, we aspire to form a community of like-minded individuals, driven by the common de- sire to positively impact both the Stanley/Stella ecosystem and our industry. The Stanley/Stella Charter, launched in 2022, is our guiding framework which represents what we stand for as a company in the garment industry. It articulates our commitment to addressing critical environmental, social, and governance (ESG) issues in our area of influence, and outlines the ten core principles that guide our behaviour and inspire the entire Stanley/Stella community to care about our planet and its people.

Read the full Stanley/Stella Charter here.

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Nature protection

Carbon footprint

Circularity

Working conditions and well-being —

Diversity, inclusion and equity —

— Preserve soil, water, air and

— Contribute to global carbon neutrality by leading CO 2 reduction activities across our value chain and engaging in compensation initiatives.

— Minimise product and packaging waste at production and consumption levels, taking steps towards circular business models.

Respect human rights by providing and advocating for safe and good working conditions.

Promote diversity in recruitment and business practices, an inclusive professional environment, and equal opportunities for all.

biodiversity through responsible material sourcing, manufacturing, distribution and decoration.

Community engagement

Accountability and traceability —

Collaboration

Innovation and empowerment — Reinforce business sustainability through digitalisation and innovative thinking and actions.

Transparency and authentic communication — Openly and accurately communicate with our communities and stakeholders about our social and environmental challenges, the actions we are taking, and where our limits lie.

— Contribute to the economic and social development of communities through fair remuneration, education, and our ecosystem engagement.

— Stimulate open-minded dialogue and collaborate with our communities and stakeholders within and outside the industry for a bigger and better impact.

Take accountability for our actions across our supply chain through full traceability and human rights and environmental due diligence.

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Our responsible supply chain From sourcing sustainable raw materials to working with a committed network of Official Dealers who share our values, we strive to have a positive impact at every step of our journey.

We select the most eco-friendly raw materials — Across our collections, we use GOTS certified organic cotton as well as GRS certified recycled cotton, GRS certified recycled polyester and GRS certified recycled nylon.

We collaborate with state-of-the-art factories —

Our nine partner suppliers in Bangladesh and one in China are GOTS certified, and we have a local team handling our business in South Asia. We have been a member of Fair Wear Foundation (FWF) since 2012.

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We choose partners for sustainable transport and storage — Opting for sea shipment minimises the carbon footprint of transporting our products to Europe, and we partner with GOTS conformed warehouse providers to store our products.

We team up with a dedicated distribution network — Our network of Official Dealers share our vision and values, and we encourage and support them in achieving GOTS certification.

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Certifications Our supply chain is certified by various independent bodies and standards, demonstrating our commitment to healthy environmental practices and greater respect for the planet. But we don’t stop there. We always go beyond certifications to increase our understanding and drive positive action for our planet and its people.

GOTS The Global Organic Textile Standard (GOTS) is the leading worldwide standard for the production of organic fibres. Based on both ecological and social criteria, it is the most stringent certification for organic cotton. It guarantees that cotton is organically grown without the use of genetically modified seeds or dangerous chemicals. It also ensures traceability from post- harvesting of the raw material to the final customer, including transaction certificates at every stage of production. OCS The Organic Content Standard (OCS) is a voluntary international standard that verifies the presence and amount of organic material in a final product. It tracks the flow of the raw material from the source to the final product. This standard applies to Stanley/Stella products that have less than 70% organic cotton. GRS The Global Recycled Standard (GRS) is the world’s leading standard for recycled textiles. The standard applies to the full supply chain and addresses traceability, environmental principles, social requirements, chemical content, and labelling. All the recycled cotton materials, recycled polyester, and recycled nylon we use is GRS certified. OEKO - TEX Standard 100 by OEKO-TEX ® is one of the world’s best-known standards for the assessment of harmful substances in fabrics. Our certification confirms that Stanley/Stella products are processed without chemical substances that are harmful to human health and the environment. Standard 100 also prohibits certain potentially harmful substances even where these are not yet legally banned, and it guarantees that our products comply with the EU REACH regulation.

PETA

Stanley/Stella is ‘PETA-Approved’, which means that we do not conduct or commission any animal tests on ingredients, formulations, or finished products and pledge never to do so. Our products are made from 100% vegan materials and 0% animal fibres, ensuring that no harm is caused to animals.

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Memberships We are proud to approach the environmental and social challenges our industry faces in a collaborative way. Through our memberships of Fair Wear Foundation and Textile Exchange, we aim to reinforce the positive impact we can have across our operations.

Fair Wear Foundation Fair Wear Foundation (FWF) is an inde- pendent organisation that works with ap- parel brands, garment workers and textile industry influencers to improve labour conditions in garment factories. FWF carries out audits in our partner factories on a regular basis, and establishes Correc- tive Action Plans (CAPs) where needed to ensure workers’ rights and safe, dignified, and properly paid employment. Stanley/ Stella has been a member of FWF since 2012.

Textile Exchange

Textile Exchange is a global non-profit organisation that works closely with its members to drive industry transformation in preferred fibres, integrity and stand- ards, and responsible supply networks. Stanley/Stella participates in the annual Material Change Index survey, which maps progress towards more sustainable sourcing at the raw material level.

Stanley/Stella label on a sewing line at Aus Bangla, Dhaka, Bangladesh 2022. <

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Our Commitment

“Organic cotton. Renewable resources. Recycled materials. It’s our blueprint for a better footprint.”

Tereza Ungerman, Product Development and Quality Manager

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Choosing our materials consciously

Fibre selection has a considerable impact on how long a garment will last and how easily it can be recycled. This defines both the product quality and its environmental footprint. By choosing the highest quality raw materials, there is less need to blend them with other fibres. However, no material is perfect and there are many trade-offs to be made in finding the best solution. For example, to give our products more stability and longevity, we sometimes need to incorporate synthetic fibres. At all times, we make conscious, carefully weighed decisions about which materials to use.

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Organic cotton From day one, we have chosen to use only 100% organic cotton, grown from seeds that have not been genetically modified (non-GMO) and cultivated without the use of chemical pesticides and fertilisers. We initially sourced all our organic cotton from India, but since 2021 we have diversified our sourcing to include suppliers in other countries such as Turkey. Globally, only a very small portion of the cotton produced annually is organic. Cultivating organic cotton ensures that no harmful chemicals flow into the soil or into adjoining rivers, lakes or seas. This means that the water used for organic farming is not considered as lost water, as it can be used again and can safely return to the soil and other water sources. The overall positive effect on water, soil and biodiversity means that the well-being and livelihood of cotton farmers and their communities is respected and protected.

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Benefits of organic cotton versus conventional cotton

Source: Textile Exchange (2017). Quick guide to organic cotton.

26% Less potential for soil erosion

46% Less impact on global warning

70% Less acidification of land and water

91% Less surface and groundwater use

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GOTS certification —

The Global Organic Textile Standard (GOTS) is based on both ecological and social criteria and certifies that the cotton is organically grown, without the use of genetically modified seeds or any harmful chemical products. Throughout our collections, we chose to work using only 100% GOTS certified organic cotton. Transaction certificates at every stage of production confirm the traceability and organic content of our products from the post-harvested raw material to the final customer.

Transparent mapping of our supply chain

Read more about GOTS here.

In-depth understanding of cotton farming

Regular visits to farmers and ginners

Going beyond certification —

On our journey to source our cotton in the most responsible way possible, we go beyond GOTS certification in order to provide our customers with consistently high-quality organic cotton:

Periodic random testing of our yarns

Diversification of the country of origin

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Made with 85 % organic materials

Organic If the organic content is at least 95% of the product weight. Most of our t-shirts are certified organic, as their organic content is above 95%.

If the organic content is between 70% and 95% of the product weight. Most of our sweatshirts are certified made with 85%, as their organic content is 85% of the product weight. (The remaining 15% of the material composition consists of ‘sustai- nable fibres’, meaning natural or recycled fibres.)

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Recycled cotton

We seek to minimise product waste at production level and strive for circular business models, recycled cotton plays a key role in this. We started using re- cycled cotton in our accessories range in 2017. Since then, we have increased our recycled cotton product range and even decided to start using our own fabric cutting waste to create new products. For instance, our RE-Creator, RE-Blaster and RE-Cruiser are partly made using recycled organic cotton from our own cutting waste.

Our RE-Creator t-shirt is a 50/50 blend of recycled organic cotton from our own cutting waste and un- dyed organic cotton. This gives the garment a natural heather effect. Through this material reuse and the absence of dyeing, we minimise the energy, water and chemicals needed compared to traditional production processes. Stanley/Stella’s RE-Range and production facilities are GRS certified.

Read more about GRS here.

Cutting waste from our own production is collected in our partner factories

The fabric is finely shredded in a spinning mill then blended with virgin organic cotton

The fibers are then spun into new yarn, which is knitted into durable fabric

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Totae perspis tectur ad magnimint face- prat et unt voluptat. Latis ima sequaspe nobisitas volore Stanley/Stella cutting waste at Simco, Dhaka, Bangladesh 2022.

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Recycled polyester

We use polyester to add stability to our sweatshirts, to give strength to our accessories, and to produce our outerwear garments. Since 2018, we have been using only recycled polyester made from post-consumer PET bottles. It’s clear that tackling plastic waste has become one of the major environmen- tal challenges of our time – globally, about 9.5 million tonnes of plastic ends up in the ocean annually, most of it single-use. Recycling polyester allows for considerable energy savings in the manufacturing process compared to non-recycled polyester. For all our outerwear in recycled polyester, we exclu- sively use GRS certified fabrics. Just like with our organic cotton, we seek full traceability of our recycled polyester, including the origin of the PET bottles. Depending on the style, it takes between 38 to 80 plastic bottles of 550ml to produce our jackets. Mainly sourced from China, these bottles might otherwise go to landfill or end up in our oceans.

Our lightweight, mesh-lined Commuter jacket is made with 100% recycled polyester from post-consumer PET waste. To offer protection from the elements in the most eco-friendly way possible, the fabric is treated with a safe and environmentally friendly durable water repellent (DWR). All the fabrics used in Stanley/Stella outerwear garments are GRS certified.

Once the PET bottles are collected, they are cleaned and cut into small flakes.

These flakes are then melted into chips and blown into polyester staple fibre.

The staple fibre is then woven into yarn to create a durable and breathable fabric.

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Recycled polyester fabric with durable water repellent BIONIC-FINISH ® ECO, Brussels, Belgium 2022.

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Recycled nylon

Modal

For some of our accessories and ou- terwear products, we use pre-consu- mer recycled nylon, made from in- dustrial nylon yarn waste. This fabric is known for its durability and stren- gth, while at the same time being ex- tremely lightweight and soft on the skin. We offer nine different products in recycled nylon, all using GRS cer- tified fabrics.

We’re always looking at other sustai- nable materials to broaden our offer. One of these is Modal, a flexible man- made cellulosic fibre, renowned for its exceptional softness. TENCEL™ extract the fibres from naturally grown beech wood and their pulp- to-fibre process is environmentally responsible, self-sufficient in energy and recovers co-products. One of our products in TENCEL™ Modal is OCS Blended certified.

Recycled nylon yarn

Inside the laboratory at GMS, Dhaka, Bangladesh 2022. >

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Chemicals Our priority is to ensure that chemicals and other additives going into our products are managed through ambitious standards throughout the entire supply chain to reduce and prevent harm to people and the environment. At production sites, our chemical management policies include compliance with the highest standards such as GOTS and Standard 100 by OEKO-TEX®. STANDARD 100 by OEKO-TEX® is one of the world's best-known labels for textiles tested for harmful substances. The certification means that every com- ponent of a product, i.e. every thread, button and other accessory, has been tested for harmful substances and that the product is therefore safe for human use. Tests are conducted by an independent OEKO-TEX® partner institute and take into account numerous regulated and non-regulated substances, which may be harmful to human health. In many cases, the limit values for the STANDARD 100 label go beyond national and international requirements.

Read more about OEKO-TEX® here.

OEKO-TEX® complies with the EU’s REACH Annex XVII Legislation. Read more about the REACH legislation here.

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“Today, the question is not if we want to reduce our environmental footprint, but rather how we turn our commitment into concrete actions.”

Sharif Nehal Rahman , BLO Sustainability Manager

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Minimising our environmental footprint Human activities such as burning fossil fuels, clearing forests, and cultivating land for agricultural use contribute to climate change by emitting CO 2 and other greenhouse gases (GHGs) that are devastating for the earth. At Stanley/Stella, we recognise that we have a responsibility to mitigate and reduce our impact on the environment, and we place a specific focus on CO 2 emissions across our supply chain and on water use.

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CO 2 equivalent emissions of a Creator t-shirt in White, size Medium (in gr)

Carbon footprint

End of life

180

In 2022, we worked together with external partners to measure our carbon emissions across our supply chain.

Organic cotton

530

We based our approach on the widely accepted GHG Protocol accounting standard along with the Bilan Carbone ® method and calculated all the carbon emissions at each stage, from raw and recycled material production, manufacturing of the products, decoration by our Official Dealers, to product use and end of life. For most of the stages we have been able to gather real data. For others, such as cotton farming and end-consumer use and end of life, we’ve used standard data from the Agency for Ecological Transition (ADEME) and other organisations. The total CO 2 emissions for 2021 amount to 90,300 tons, of which less than 1% are scope 1 and 2 emissions; the remaining 99% are scope 3 emissions.* Based on these findings, we will establish a detailed action plan to reduce and compensate our carbon emissions.

440

Use

1.96 kg CO 2 eq

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Yarn

160

Dealers

40

290

130

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Fabric

Warehouse

Transport

Garment

* Scope 1 covers direct emissions from our owned or controlled sources. Scope 2 covers indirect emissions from the generation of purchased electricity, steam, heating, and cooling consumed by us. Scope 3 includes all other indirect emissions that occur across our value chain. 30

Stanley/Stella carbon footprint in 2021 (in %)

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15

14

12

9

8.5

8

7

3

1.5

Fibre manufacturing

Ginning

Yarn manufacturing

Fabric manufacturing

Garment manufacturing

Transport & warehousing

Dealer's activity

End-customer use

End of life

Stanley/Stella HQ activity

90,300 tons CO 2 eq

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Water We treat water as the invaluable resource it is. Across our entire supply chain, we aim to minimise the amount of water used and reduce its contamination. Just like for all agricultural production, water is a critical input for the successful cultivation of organic cotton. However, unlike for conventional cotton, water used in organic farming is not contaminated by harmful chemicals, thereby avoiding unwanted negative effects on soil and biodiversity. Water is also used for dyeing and washing textiles, and inevitably generates water-based toxic waste. All our partner factories have on-site Effluent Treat- ment Plants (ETPs), in line with legal requirements, and have in-house specia- lists and testing facilities.* This ensures that wastewater can be treated and then released back into nature without harming the environment. At some of our partner factories, the treated wastewater is also used for car washing and gardening. The remaining solid waste is typically preserved for several months until it solidifies fully, and is then sent to contracted brick fields where it is used as fuel.

* To ensure the safety of the treated was- tewater, tests are done for pH, DO, BOD, COD and TDS both on-site and in govern- ment laboratories. pH: pH is a scale used to specify the aci- dity or basicity of an aqueous solution. DO: Dissolved Oxygen (DO) is the amount of gaseous oxygen (O2) dissol- ved in water. BOD: Biochemical Oxygen Demand (BOD) is the amount of oxygen consumed by bacteria while decomposing organic matter under aerobic conditions. COD: Chemical Oxygen Demand (COD) is the amount of oxygen required for the chemical oxidation of total organic matter in water. TDS: Total Dissolved Solids (TDS) repre- sents the total concentration of dissolved substances in water. TDS is made up of inorganic salts, as well as a small amount of organic matter.

Effluent Treatment Plant (ETP) at Dird, Dhaka, Bangladesh 2022. >

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“We believe that we have a duty to support the people that are part of our ecosystem; through fair remuneration and the implementation of specific projects, we take this responsibility very seriously.”

Céline Charveron, Sustainability Ambassador

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Caring about people

At Stanley/Stella, fair and safe working conditions, and well-being in the workplace are at the heart of our operations and organisation.

In our Brussels headquarters and local liaison offices, we have implemented a number of mechanisms to promote well-being and ensure a good and motivating working environment for all those involved in bringing our col- lections to life. On top of this, we work closely with our partner factories to improve working conditions in line with our Fair Wear Foundation membership, and we strive to ensure worker remuneration that is more in line with a living wage. Finally, as we believe it is our duty to support the local communities that are part of our ecosystem, we have initiated various projects to make our com- mitments even more concrete.

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Social responsibility Like most global fashion brands, we don’t own the mills, factories, and production facilities that make our garments. Still, we see it as our res- ponsibility to ensure a safe and fair working environment. That’s why we partner only with suppliers who share our vision. To clearly document and communicate the social require- ments we expect them to adhere to, we have developed various tools and policies.

Stanley/Stella and Aus Bangla team, Dhaka, Bangladesh 2022. 

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Continuous monitoring and reports —

Our local teams in Bangladesh and China keep close contact with our suppliers, visit them frequently, and develop action plans with the support of various monitoring reports and tools. These include:

A daily overtime monitoring tool, allowing us to report any overtime to our partner factories and directly address issues to ensure lead times are realistic. A monthly sustainability observation report, giving us a general view on social safety, building and fire safety, and health safety at our partner factories. A quarterly evalution tool, through our Supplier Sustainability Scorecard. A yearly monitoring tool, with more than 100 social, environmental, and safety criteria through our Sustainability Audit Report tool.

Code of Conduct ​ —

Stanley/Stella’s Code of Conduct states our commitment to fair and ethical work practices. It outlines the principles we consider essential to our business’ operation and it has to be signed and respected by all the factories we work with. The standards of our Code of Conduct are derived from the eight fundamental conventions of the International Labour Organisation (ILO) and are in line with the Fair Wear Foundation’s Code of Labour Practices (CoLP). Our Code of Conduct covers seven pillars:

Prohibition of child labour Non-discrimination Prohibition of forced and compulsory labour and disciplinary measures Freedom of association

— — — — — — —

Working hours Compensation Workplace health & safety.

In addition to these pillars, our suppliers must commit to additional social, environmental, and safety standards.

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Fair Wear Foundation Fair Wear Foundation (FWF) is an independent, non-profit organisation that works with brands, factories, trade unions, NGOs, and governments to provi- de better working conditions for garment workers around the world. Stanley/ Stella has been a member since our company was founded, and now, thanks to our achievements, we’ve been awarded Leader status. Every year, we publish a detailed Brand Performance Check report, describing our efforts on social issues and the results of monitoring and remediation measures in each of our partner factories. Three of the main actions linked to our FWF membership are social audits and Corrective Action Plans (CAPs), an easily accessible complaints helpline for factory workers, and training for workers to improve awareness and knowledge about their rights.

Leader This category is for member companies who are doing ex- ceptionally well, and are operating at an advanced level. Leaders show best practices in complex areas such as living wages and freedom of association.

Read our latest Brand Performance Check report here.

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The eight pillars of FWF

Safe and healthy working conditions

Payment of a living wage

No discrimination in employment

Employment is freely chosen

Freedom of association

Reasonable hours of work

A legally binding employment relationship

No exploitation of child labour

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Audits and Corrective Action Plans (CAPs) —

Workplace Education Programmes (WEPs) —

We commission audits at our suppliers to gain an in-depth understanding of the social conditions of their workers and of their internal processes. In 2021, six of these audits were carried out in Bangladesh. Fair Wear Foundation representatives carry out formal FWF audits in our partner factories every three years, including talks with factory management and interviews with workers, both on and off site. Once the audit is completed, the findings are summarised in an audit report and shared with the factory and the Stanley/ Stella Sustainability team. Based on this report, a CAP is set up if needed.

Training programmes provide factory management and workers with an opportunity to openly address issues and opportunities in the workplace. Together with Fair Wear Foundation, we organise these programmes in all our partner factories. The goal is to raise awareness on labour rights and give everyone the knowledge and skills they need to improve their wor- king environment and relations, from setting up an anti-harassment com- mittee to strengthening the commu- nication between management and the workers.

FWF helpline —

All our partner factories have their own internal mechanism for raising concerns and complaints, including workers’ committees. If workers don’t feel comfortable with this internal solution, the Fair Wear Foundation external helpline makes sure that their issues are properly followed up by its member brands. All our partner factory workers are aware of the complaints procedure and FWF helpline. Our Sustainability Manager in Dhaka handles complaints and discusses the root cause with suppliers until a solution is found.

Our Sustainability Manager from our Bangladesh Liaison Office introducing a Workplace Education Program, Dhaka, Bangladesh 2019. >

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Fair-priced Grocery Shop at Interstoff, Dhaka, Bangladesh 2022.

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Living wages We choose to work with some of the most ethical and responsible factories and strive for all of them to pay fair wages that cover the cost of living. In Bangladesh, the local government sets the minimum wage to ensure fair pay for garment workers, while at the same time, maintain competitiveness for garment producers. Our partner factories guarantee this legal minimum wage and fundamental legal requirements such as in-house childcare facilities, maternity leave, and medical cover, but they also offer additional benefits like free transportation, performance and attendance bonuses, and progressive pay scales. However, this minimum wage does not correspond to a living wage as defined by the Global Living Wage Coalition (GLWC).* On our side, we strive to get all our partner factories to pay a fair wage that covers the cost of living and we remain engaged to finding new and innovative ways of paying workers a living wage. With the commitment and support of our CEO and top management to achieve living wages, we continue to invest in concrete projects such as the Fair-priced Grocery Shops to directly increase workers’ spending power and to improve their livelihoods. Since 2020, we have supported Fair-priced Grocery Shops for almost 38,000 workers in Interstoff, Meghna and Aus Bangla, providing food such as rice, red lentils, salt and sugar at an almost 50% discount to factory workers.

*The GLWC defines a living wage as the “remuneration received for a standard work week by a worker in a particular [time and] place sufficient to afford a decent standard of living for the worker and her or his family. Elements of a decent standard of living include food, water, housing, education, healthcare, transport, clothing and other essential needs including provision for unexpected events”. 43

Local projects

Beyond striving for safe and equitable working conditions and fair remunera- tion in our partner factories, we also aim to contribute directly to the develop- ment of factory workers’ local communities. Some projects are already under way and we aim to develop more in the future. Enabling access to clean, safe, and reliable water is not only key to maintaining people’s health and dignity, it also plays an essential role in many people’s livelihoods, such as small food-related industries. In 2022, we initiated a first project through our partner ginner Pratima in India for a remote community in Odisha known as Bhejiguda, in the district of Ba- langir. Clean and safe drinking water has always been a challenge there, as the community is not connected to the electrical grid, making it difficult to access water. Open wells and ponds are the only source of water, but these dry up during the summer, meaning that women had to travel long distances to collect drinking water. In July 2022, we installed a solar-powered submersible pump to offer reliable, year-round access to safe drinking water. This project is financially and envi- ronmentally sustainable thanks to its use of solar power, and has enhanced quality of life for the whole community.

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Inauguration of the solar water pump, Bhejiguda, Odisha, India 2022.

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Social

“Joining the collective effort of the international community, we want to take the lead with our partners to deliver and scale up solutions that address the global challenges of the textile industry.”

Abdulla Al Rumi, BLO Country Manager

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The Stanley/Stella community

Building strong partnerships and taking a collective approach is essential to the development of our activities.

Every supplier we work with is chosen very carefully. We only work with a limited number of partner factories, and every new factory is rigorously audited and monitored by our Sustainability team and validated according to various social and environmental criteria. The decorators, resellers, and Print-on-Demand suppliers who make up our exclusive partner network are trusted collaborators who we consider as an extension of the Stanley/Stella family. They, along with our logistics partners, share our sustainable DNA and commitment to quality.

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Our suppliers Transparency is a fundamental component of any sustainability policy, which is why, since 2018, we have published the names and contact details of all our manufacturing suppliers in our annual Sustainability Report. At present, we work with nine partner factories in Bangladesh and one in China. Working exclusively with such a small number of suppliers ensures that we can build supportive, long-term, and collaborative relationships with each of them. Just like for Stanley/Stella, sustainability is a key priority for our suppliers. Through close collaboration with our partner factories, and thanks to the daily presence of our Bangladesh Liaison Office staff on site, we make sure that actions are put in place to constantly improve working conditions and reduce the impact on the environment.

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Target Fine Wear Industries, Bangladesh

Dird, Bangladesh

Interstoff, Bangladesh

Shuangxi Garment Co, China

Meghna, Bangladesh

Ahsan, Bangladesh

GSM, Bangladesh

Aus Bangla, Bangladesh

Croydon Kowloon, Bangladesh

Dekko Knitwears, Bangladesh

Dhaka

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Discover all the partner factories that made our collections in 2021 —

For each factory, you can see the location, the number of workers, the ratio of male and female employees, the type of products they make, and the year our partnership started.

Ahsan — Location Chandra, Pollibidyut Road, Kaliakoir, Gazipur,1750, Bangladesh — Products Knitted garments

Interstoff — Location Chandar,

Meghna — Location Gilarchala,

GMS — Location Tansutrapur,

Dird — Location Rajendrapur,

Kaliakoir, Gazipur 1740, Bangladesh — Products Knitted garments

Shreepur, Gazipur, 1740, Bangladesh — Products Knitted garments

Kaliakoir, Gazipur, 1750, Bangladesh — Products Knitted garments

Sreepur, Gazipur, 1741, Bangladesh — Products Knitted garments

— Partnership since 2012 — Workers 3,785

— Partnership since 2015 — Workers 5,470

— Partnership since 2018 — Workers 3,678

— Partnership since 2020 —

— Partnership since 2012 —

Workers 25,688

Workers 11,224

Women 28%

Men 72%

Women 45%

Men 55%

Women 47%

Men 53%

Women 39%

Men 61%

Women 36%

Men 64%

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Aus Bangla — Location Lengurdi, Araihazar, Narayangonj 1450, Bangladesh — Products Accessories

Croydon Kowloon — Location Dhaka EPZ (Extension), Ganakbari, Ashulia, Dhaka, 1349, Bangladesh — Products Outerwear & accessories

Dekko Knitwears — Location Mirpur Industrial Area, Mirpur, Dhaka, 1216, Bangladesh — Products Knitted garments

Target Fine Wears — Location Outpara, Chandona Chowrasta, Gazipur, 1702, Bangladesh — Products Beanies

Shuangxi Garment Co — Location Luoyang Industrial Area, Quanzhou, Fujian, China — Products Outerwear

— Partnership since 2017 — Workers 661

— Partnership since 2021 — Workers 4,626

— Partnership since 2021 — Workers 1,005

— Partnership since 2016 — Workers 800

— Partnership since 2015 — Workers 161

Women 70%

Men 30%

Women 85%

Men 15%

Women 55%

Men 45%

Women 40%

Men 60%

Women 64%

Men 36%

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Our distribution network

We produce blank apparel and work with an exclusive network of Official Dealers who transform our garments using various decoration techniques, including embroidery, Direct-to Garment (DTG) printing, and screen printing. Once decorated, the garments are destined for merchandising, events, and retail brands. We work closely with our Official Dealers to encourage and train them to implement GOTS certified printing techniques, using non-harmful inks and sustainable production methods. By enhancing the sustainability of not only our garments, but also their deco- ration, we hope to further positively impact our supply chain and ensure our products have the least possible impact on the planet.

Showroom of our Official Dealer Black Star GmbH, Berlin, Germany 2022. >

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Our GOTS certified Official Dealers —

This map shows our GOTS certified dealer network as of 1 July 2022. You can find the up-to-date list of our network on our website.

Austria Geschützte Werkstätten Galvi Promotion Germany Black Star Boender & Beutel – X-Print Dakota Die Textilmacher Eco Merchandise / Luvgreen Fairtrademerch Graphic Idee Textilwerbung Holfelder Laroid Monkeydrive Printing Factory Noenow Printworks Textildruck RK textile Spreeprint Textildruck Texgroup Textildruck Europa Textilhandel-cotton-n-more Wildner Willy Maisel Wizard Gesellschaft Textilkonzepte GMBH Subucoola Lithuania Eurospadas Poland Lynka Sema-Print KNK production & development Slovakia Merchyou

Switzerland Many Ways France Kokolo Affective TIP Beyno Main Gauche Brocéliande Brodelec Fair Fibers Indieviduals Pubos Belgium Fabric Alfa Shirt Biznizpoint BV Maison Clothes Wazabi The Netherlands Fox Originals Groenewas Katoenfabriek Reklatex BV Superette United Kingdom 2 Surface Leather Get a Grip / Sustainable Supply Ltd My Needs Are Simple Shirtworks Sweden Swagg

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Our logistics partners

Based on our calculations, we estimate that our garments travel nearly 24,000 km to get from the cotton fields in India, to our partner factories in Bangla- desh, and finally to the Port of Antwerp, the Belgian city where our stock is warehoused. Most of this transport is by sea and road. Our warehouse in Antwerp is managed by Katoen Natie (KTN) which has taken impressive measures to be as green as possible. By adjusting their infrastruc- ture, KTN have managed to save thousands of tons of CO 2 . Among other initiatives, they rely on renewable energy produced by local turbines, use LED lighting, and 90% of their sourced cardboard comes from fully recycled materials.

Belgium — Finished garment arrives at Antwerp port after a journey of

23,650 km

United Kingdom — We also recently opened a new warehouse in the United Kingdom to meet the demands of our UK customers.

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Beginning of the journey — Cotton fields Raw organic cotton is picked

Spinning mill

35 km

Ginning mill

Partner factory From Gazipur to Chittagong

Ginned cotton is shipped from Mudra port to Chittapong port

300 km

Madhya Pradesh

300 km

Gazipur

Gujarat

300 km

Mudra port

Chittagong port From Chittagong port to Antwerp

5,090 km

16,618 km

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We believe that the textile industry can act in a responsible way and care about people, the planet, and society. We don’t need to tell you more about the reasons why we’re fully committed to sourcing organic cotton, reducing our carbon footprint or urging our suppliers to pay a living wage to their workers because we believe these points are important to you too. We thank you for joining us on our journey, and for sharing your support, enthusiasm and ideas. If you'd like to find out more about our path to sustainability or get involved:

Please contact us —

stanleystella.com @wearestanleystella sustainability@stanleystella.com

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Paper — Cover Gmund Cotton - Max White 300g/m²

Pages Magno Volume - Matt 135g/m²

Contributors: — Head of Sustainability (HQ, Brussels): Michel Hublet

Sustainability Ambassador (HQ, Brussels): Céline Charveron Sustainability Manager (BLO, Dhaka): Sharif Nehal Rahman Assistant Sustainability Officer (BLO, Dhaka) : Jahin Rahat Khan Illustrations and graphic design (HQ, Brussels): Benjamin Valla

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