ST/ST - Sustainability Report 2024 - EN

Right from the beginning in 2012 Stanley/Stella’s founder Jean Chabert had a vision for a B2B lifestyle brand that would manufacture in a more responsible, ethical and sustainable way. Although there is no easy route to sustainability, we work hard every day to make it a reality by making deliberate, conscious decisions about who we work with, how we work & what materials we choose to use. By developing and sticking to concrete, long-term objectives that are guided by the principles of sustainability, we hope to get closer to being an ecological and ethical model for the fashion retail sector.

Our path to sustainability

“Stanley/Stella is an innovative Belgian apparel company producing premium clothing for printing and decorating. Since our origins in 2012, we have worked hard to bring our vision for a more respectful, more equitable, and more sustainable textile industry to life. This report outlines our commitments and the steps we’re taking to improve our value chain for a healthier planet and happier people. We provide insights into the complex challenges associated with the textile industry, how we tackle those challenges, and what our future aspirations are. In 2023, we took great strides in our supply chain approach to ensure good working conditions, lower our environmental footprint and guarantee the integrity of our raw materials. We also finalised our decarbonisation strategy, with an ambitious 2030 objective, and continued to make a tangible difference in the lives of communities close to the cotton fields, to our partner factories in Bangladesh, and to our Brussels headquarters. 2024 will be a year of even stronger collaboration across our ecosystem to reduce emissions, support the economic prosperity and well-being of factory workers and cotton farmers, and continue to source the best materials for our collections. With every step we take, we aim to continue leading the textile industry towards a better future for our planet and its people. Thank you for following our journey.”

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.”

Jean Chabert, Founder and CEO Stanley/Stella

Jean Chabert, Founder & CEO Stanley/Stella

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Highlights of 2023

← Remei Tanzania, our first 'direct-to-farm' project

← Carbon Footprint Strategy After two years of intensive work to measure and understand our carbon footprint across our supply chain, we proudly unveiled our decarbonisation strategy in April 2024. This huge project unites the entire Stanley/Stella ecosystem around a common goal: to reduce our relative carbon emissions by 30% by 2030. See page 46 for more information.

Our new collaboration with Remei brings us even closer to the source of our organic cotton. Remei Tanzania works with around 2,000 smallholder farms in the Simiyu region, providing farmers with secure and fair payment for their organic cotton, as well as ongoing education and support in organic farming practices. See page 32 for more information.

← Mobile healthcare for villagers in Bangladesh

To support the communities where workers from our partner factories live, in 2023 we began financing a mobile hospital project that, as of March 2024, gave over 40,000 people from 35 villages access to free medical consultations and medication, prenatal care, basic screening tests and minor surgery. See page 66 for more information.

↓ Strengthening sustainability actions with field visits

In 2023, we visited key actors in our supply chain. In Turkey, India and Tanzania, we deepened our understanding of organic cotton sourcing and inspected ginning facilities we work with. In Bangladesh and China, we visited fabric and garment factories to review climate-related topics, including verifying carbon data, learning about the machines used, and discussing energy efficiency and carbon emission targets with management.

← New tools to further improve factory working conditions 2023 saw us reinforce our supply chain monitoring and management tools. Through revised audit documents, enhanced processes, and strengthened Corrective Action Plans (CAPs), we aim to accelerate action and continue improving working conditions in our partner factories. See page 52 for more information.

← Enhancing recycled polyester traceability in China

To deepen our understanding of our recycled polyester supply chain and confirm the traceability of the raw materials, we travelled to China in 2023 to meet with actors at different levels of our supply chain, including visits to collection points for post-consumer plastic bottles. This was of course done together with our Beijing-based team. See page 38 for more information.

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5

CEO statement

02

Highlights of 2023

04

Standing by our commitments

08

The Stanley/Stella Charter Our workplace Our products Our certifications Our memberships & collaborations Our responsible value chain

10 12 16

17 18 20

Choosing our materials consciously

26

Organic cotton Recycled materials Dyes & finishing

28 34 40

Minimising our environmental impact

42

44 46 48

Our carbon footprint Our decarbonisation strategy Water

Caring about people

50

Our social responsibility Fair Wear Foundation Fair remuneration Community engagement

52 56 60 62

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Standing by our commitments

Sustainability has been one of our core values since day one, and it is firmly embedded in every aspect of our business culture. It is reflected in how we choose our raw materials, design our products and develop our collections. It shapes decisions about our workplace environment and policies, and it influences how we recruit and empower our employees. It informs our long-term business strategies, our operational planning and our day-to-day activities. And it guides how we choose our partner factories and how we grow our network of decorators and resellers. We are committed to using our business as a force for good, and the Stanley/Stella Charter, launched in 2022, serves as our guiding framework. With goals and engagements on critical environmental, social, and governance issues, our Charter outlines the core principles that guide our behaviour and inspire the entire Stanley/Stella ecosystem to keep raising the bar.

To achieve our social and environmental objectives, we need to go, see and understand our impacts in the supply chain and translate our commitments into concrete actions.”

Michel Hublet, Head of Sustainability

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Standing by our commitments

Nature protection — Preserve soil, water, air and biodiversity through responsible material sourcing, manufacturing, distribution and decoration.

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

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

Working conditions and well-being — Respect human rights by providing and advocating for safe and good working conditions.

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 desire 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.

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

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

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

Read the full Stanley/Stella Charter here.

Collaboration —

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

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.

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Standing by our commitments

Our workplace

Across our entire organisation, we seek to create working environments that are positive and empowering, and where consideration for people, the planet, and society is integrated in every decision and action.

employees 201

Our employees

Our people are the beating heart of Stanley/Stella, driven by our core values of Innovation, Excellence, People and Sustainability at every step: seeking game-changing solutions that address real problems, giving the best of themselves in every task, actively working to understand people’s needs, and considering the sustainability-related aspects of every decision.

Our people supporting sustainability

As well as integrating sustainability across all our departments – from design and sales to logistics and customer support – we also have a strong team of 11 who work at the core of our sustainability efforts across locations. In our Brussels headquarters, we have a team of six people working on our long-term sustainability strategy and short-term actions. This core team ensures that sustainability is embedded across functions, and at every level of the company. In Dhaka, we have a team of five people closely monitoring and liaising with our partner factories on a daily basis. We also have colleagues in China, India and Turkey who are closely involved in sustainability initiatives, and who bring invaluable local insights that support our efforts.

55% 45%

women

men

Sustainability is our shared responsibility. By incorporating it into our workplace environment, we strive for a true culture of sustainability.”

nationalities 27

( 2023 )

Raphaël Torfs, Head of HR

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Standing by our commitments

Our offices

In 2021, we moved into our current headquarters in Brussels, which gave us the opportunity to further align our working environment with our commitment to sustainability. As well as prioritising eco-friendly materials, we supplement our purchased green electricity with energy from roof-top solar panels, we reduce our water consumption by using rainwater for toilet flushing, and we optimise our waste management by separating four types of waste for recycling. In Dhaka, our Bangladesh Liaison Office reflects the same sustainability, innovation and excellence principles as our Brussels headquarters. Sustainable raw materials have been chosen where possible and the walls have been decorated with hand-stitched ‘nakshikatha’, a traditional local craft. We also used recycled materials for sofa covers and repurposed stitched cloth for seating tool covers.

We also developed salary policies in 2022 and 2023 with an external provider to establish a more structured salary scale and lay the groundwork for compliance with the EU Pay Transparency Directive. Additionally, to further enhance and promote transparency, we implemented a whistleblowing policy and tools in line with EU directives. To reduce the environmental impact of our operations in Brussels and give our employees more choice, we introduced some transport-related policies. Starting in 2024, only 100% Battery Electric Vehicles (BEV) or Plug-in Hybrid Electric Vehicles (PHEV) are allowed under our sustainable car policy. We also offer an additional bonus, on top of the legal requirement, to employees that join a bike leasing programme.

Education and awareness raising

From the moment new employees join Stanley/Stella, we continually invest in their growth, offering comprehensive induction training and ongoing development in both technical and soft skills. To deepen their understanding of our ecosystem, we organise a Bangladesh Discovery Trip several times a year. This immersive experience lets employees connect with local colleagues, understand the culture, and explore our partner factories and initiatives. Our regular Connect events are another way we reinforce in-person connections and provide opportunities for knowledge sharing. This event, which brings our international team together several times a year, also offers the chance to strengthen everyone’s involvement in our ongoing sustainability projects. Outside of organised events or trainings, the Sustainability Corner in our Brussels headquarters aims to promote awareness about environmental and social issues among colleagues. This cosy library features a wide range of resources on various sustainability topics, from food and travel to fashion and the climate crisis.

Our workplace policies

Our aim is to foster a supportive, transparent, and sustainable workplace, and various policies contribute to that goal. Our remote work policy at our Brussels headquarters aims to balance work-life harmony with our fast-paced growth and business needs.

offices 3

United Kingdom (Sales branch)

Bangladesh (Liaison office)

Belgium (Headquarters)

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Standing by our commitments

Our products

Our certifications

Optimised decoration results

We aim to create best-in-class products that meet the diverse needs of the imprint industry, while always upholding the highest environmental and social standards. Across our ranges – which feature mainly knitted items like t-shirts, sweatshirts, polos, and jogging pants, as well as some woven pieces like jackets and accessories – we use exclusively organic and recycled materials.

Our supply chain is certified by various independent bodies according to the most stringent standards, demonstrating our commitment to more environmentally friendly practices. But our dedication doesn’t end there. Together with our partners, we continue to go beyond certifications to increase our understanding and drive positive action for our planet and its people.

We leave no stone unturned when it comes to providing the best possible fabric surface for decoration. Our in-house decoration team of five people test every fabric and colour combination, and support our customers in achieving outstanding and long-lasting decoration results. We also impose decoration standards on our network of dealers and actively support them in achieving GOTS certification by transitioning to sustainable inks and processes.

GOTS

The Global Organic Textile Standard (GOTS) is the leading worldwide standard for organic cotton. Based on both environmental and social criteria, it guarantees that cotton is organically grown without the use of genetically modified seeds or hazardous chemicals. It also ensures traceability from post-harvesting of the raw material to the final customer, including transaction certificates at every stage of production. We offer GOTS-certified products, each labelled individually. See page 29 for more information.

Responsible product development

As we serve a B2B audience, our main collection is relatively stable, with timeless products and colours that often remain available for several years. To keep our offering fresh, we release a spring/summer and an autumn/winter collection each year. These collections, featuring new or updated styles and introducing a palette of trend-inspired colours, are developed around 1.5 to 2 years in advance and produced in full alignment with our suppliers. This long-term planning ensures realistic deadlines and maintains our focus on quality and sustainability.

90.1

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, recycled polyester, and recycled nylon we use is GRS certified. See page 35 for more information.

Sustainable design practices

OEKO-TEX®

<1

Our dedication to innovation drives us to continually seek ways to reduce the environmental impact of our products, including working towards a more circular mindset. In 2021, we launched our RE-Range, made using recycled cutting waste from our own production. While in 2024, we transitioned 14 of our sweatshirt styles (representing 50% of our sales) from an 85% organic cotton/15% recycled polyester blend to a new 100% organic cotton fabric, meaning they can be more easily recycled at end-of-life. We also continue to explore alternative fabrics, fibres and dyeing methods that meet both our customers’ needs and our environmental and social standards.

Standard 100 by OEKO-TEX® is one of the world’s best-known standards for assessing harmful substances in fabrics. Our certification confirms that Stanley/ Stella products contain no chemical substances that are harmful to human health and the environment, and guarantees that they comply with the EU REACH regulation. Standard 100 also prohibits certain potentially harmful substances even where these are not yet legally banned. See page 40 for more information.

2.6

7.3

Materials used at Stanley/Stella (%)

PETA

90.1% 7.3% 2.6% <1%

Organic cotton Recycled polyester Recycled cotton Recycled nylon & elastane

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 with no ingredients of animal origin, ensuring that no harm is caused to animals.

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Standing by our commitments

Our memberships & collaborations

Our collaborations

Remei

Overcoming the environmental and social challenges our industry faces requires a constructive and collaborative approach. We are proud to work with leading membership organisations and partners to amplify our efforts in improving working conditions, sourcing sustainable materials responsibly, and supporting the communities where we operate. These collaborations connect us with a wider network and inspire us to keep raising our ambitions.

Founded in 1983, Swiss-based Remei Group works directly with smallholder farmers in India and Tanzania to offer traceable organic cotton as the first step of a sustainable textile value chain from fibre to ready-made textiles. Their mission is to create value for all those along the value chain, while taking maximum care of people and the environment. Through Remei’s local subsidiaries, organic cotton farmers receive a purchase guarantee for their raw materials, are paid an additional premium above the local market price, and benefit from ongoing support and comprehensive extension services on organic cultivation. In 2023, we started sourcing some of our organic cotton from Remei. See page 32 for more information.

Drip by Drip

Our memberships

Drip by Drip is a non-profit organisation founded in January 2018 that focuses on addressing water issues caused by the fashion and textile industry. In Bangladesh, Drip by Drip partners with Agroho, a local organisation that identifies needs, and suggests, implements, and monitors projects on the ground. In 2023, we started a collaboration with Drip by Drip to provide free medical consultations in the villages where workers from our partner factories live. These communities would otherwise have limited access to healthcare facilities. See page 66 for more information.

Fair Wear Foundation

Fair Wear Foundation (FWF) is an independent organisation that works with apparel brands, garment workers and textile industry stakeholders to improve labour conditions in garment factories. As a FWF member, Stanley/Stella ask FWF to organise third-party audits audits to assess human rights risks and monitor remediation progress in factories. Corrective Action Plans (CAPs) are reviewed and remediated in collaboration with factory management until they can be closed. Stanley/Stella has been a member of FWF since 2012. See page 56 for more information.

Removall

Removall is a project developer specialised in designing and operating certified carbon offset projects. In 2024, we started collaborating with Removall as a trusted partner for carbon offset initiatives. We chose Removall due to the nature of its projects, their proximity to areas where our suppliers operate, as well as the integrity of the projects. For example, carbon credits are certified by independent third parties, and are ‘ex-post’, meaning that the credits we purchase represent carbon savings that have already been realised, rather than promised or expected. See page 64 for more information.

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 standards, and responsible supply networks. As a member since 2012, Stanley/Stella participates in various Textile Exchange initiatives, including the annual Material Change Index survey and the Sustainable Cotton and Polyester Challenges, which are part of the Materials Benchmark survey. These tools map progress towards more sustainable sourcing at the raw material level. See page 28 for more information.

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Standing by our commitments

Our responsible value chain

Our supply chain

Cotton origin

Warehouses

We carefully select our raw materials

India Tanzania Turkey

Germany France United Kingdom

We only use GOTS certified organic cotton and GRS certified recycled cotton, recycled polyester and recycled nylon, and these raw materials are sourced with the utmost care. Alongside India, the world’s largest organic cotton producer, we recently started sourcing organic cotton in two non-GMO countries, Turkey and Tanzania. In Tanzania, we started our first 'direct-to-farm' programme in 2023 in partnership with Remei. Our recycled cotton comes from Bangladesh, while our recycled polyester and nylon are sourced in China.

Recycled polyester & nylon origin

China

We collaborate with state-of-the-art factories

We work with 11 partner factories in Bangladesh which are GOTS and GRS certified, and 1 partner factory in China, which is GRS certified. In both countries, we have local teams on hand to provide support..

TURKEY

Partnership since

Employees (June 24)

Partner factory

Location

Products

CHINA

12

Knitted garments

2012

3660

Ahsan Composite Ltd.

Chandra Pollibidyut Road, Kaliakoir, Gazipur, BD

1

72%

28%

Accessories

2017

940

Aus Bangla Jutex Ltd.

Lengurdi, Fausha Bazar, Arai Hazar, Narayangan, BD

2

INDIA

30%

70%

Outerwear

2021

6067

Croydon Kowloon Designs Ltd.

Ganakbari, Ashulia, Savar, 1349, Dhaka, BD Mirpur Industrial Area, Mirpur, Dhaka, BD

3

38%

62%

Knitted garments

2021

977

Dekko Knitwears Ltd.

4

54%

46%

Knitted garments

2012

7400

Dird Composite Textiles Ltd.

Shatiabari, Dhaladia, Rajendrapur, Sreepur, Gazipur, BD

5

40%

60%

TANZANIA

Knitted garments

7456

2020

Tansutrapur, Kaliakoir, Gazipur, BD

GMS Textiles Ltd.

6

70%

30%

10

Knitted garments

5442

2015

Chandra, Kaliakoir, Gazipur, BD

Interstoff Apparels Ltd.

7

65%

35%

9

6

7 8

5

1

Knitted garments

3491

2022

Shafipur, Kaliakoir, Gazipur, Dhaka, BD Shirirchala, Bhabanipur, Gazipur Sadar, Gazipur, BD

Knit Asia Ltd.

8

11

45%

55%

3

Manufacturing

1436

Knitted garments

2018

Executive Hi-Fashions Ltd.

9

4

45%

55%

2

Dhaka

Bangladesh China

3498

Knitted garment

2018

Mulaid, Sreepur, Gazipur, BD

Executive Greentex Ltd.

10

45%

55%

BANGLADESH

860

Beanie

2020

Outpara, Chandona, Chawrasta, Alauddin Tower, Gazipur, BD

Target Finewear Industries Ltd.

11

60%

40%

348

Outerwear & accessories

2015

Luoyang Industrial Area, Quanzhou, Fujian, CN

Shuangxi

12

38%

62%

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Standing by our commitments

Our partners for transport & storage

France warehouse

Our choice of transportation and warehouse partners is also a key consideration as we strive to reduce our environmental impact while ensuring a high service level. In 2023, we moved our European Distribution Centre (EDC) from Belgium to Germany and introduced a new UK warehouse. We added a third European warehouse, in France, in 2024.

Our French warehouse is managed by ID Logistics and is ranked BREEAM Excellent. BREEAM is a certification that assesses the sustainability performance of buildings by measuring values across various environmental categories. Located south of Lyon, this warehouse started operations in mid-2024 and allows us to significantly enhance our service level in France, and improve deliveries to Spain, Portugal, Italy and Switzerland.

European Distribution Centre

Our EDC is located in Duisburg in Germany and can be reached by barge from the port of Antwerp. The distribution centre is managed by DSV and is DGNB Gold and EcoVadis Platinum certified. DGNB is a certification assessing a building's performance based on environmental, economic and sociocultural aspects, among others. EcoVadis, on the other hand, evaluates a company’s sustainability performance in areas such as environment, labour and human rights, and sustainable procurement. Having our EDC in Germany allows us to offer next-day delivery in Germany, Belgium and the Netherlands, while keeping our carbon footprint as low as possible.

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partner warehouses

UK warehouse

We opened our first partner warehouse in the UK in 2022, allowing us to streamline transport by receiving shipments directly from our partner factories in Asia, and to offer next-day delivery to our UK customers. In early 2024, we moved to a new, more modern facility. Located near Birmingham, this new partner warehouse is certified by the ISO 14001 standard which aids companies to implement effective management systems to improve environmental performance.

of our packaging is re-used or recycled 100%

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Standing by our commitments

The Stanley/Stella ecosystem

Our dedicated distribution network

Our blank garments are brought to life by our exclusive network of partners who transform them using various decoration techniques like embroidery, Direct-to-Film (DTF) printing , Direct-to-Garment (DTG) printing, and screen printing. Once decorated, the garments are destined for different purposes like merchandising, events, or retail brands. To complete the virtuous chain that started with certified organic cotton or certified recycled raw materials, we encourage and train our partners to implement GOTS certified printing techniques that use non-harmful inks and sustainable production methods. By continually working to enhance the sustainability of not only our garments, but also their decoration, we hope to positively impact our value chain further and ensure our products have the least possible impact on the planet.

Official Dealers in Europe 293

112

GOTS certified Official Dealers in Europe

See the Stanley/Stella GOTS certified network of Official Dealers.

( July 2024 )

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Choosing our materials consciously

Fibre selection has a considerable impact on a garment’s quality, durability and recyclability, all of which contribute to its environmental footprint. All the cotton in our knitwear is 100% organic and our outerwear is made exclusively with recycled polyester and recycled nylon. To guarantee the traceability of our raw materials, all our products are certified by GOTS (for organic cotton) or GRS (for recycled cotton, recycled polyester and recycled nylon). With the aim of further ensuring the integrity of our materials, we also go beyond certifications, undertaking various actions. For example, we have local teams in Turkey and India who are in direct contact with the cotton farmers, and we regularly test the lint cotton and yarn to verify its organic content. Alongside environmental considerations, we also strive to foster positive social impact through our value chain. In 2023, we started our first ‘direct-to-farm’ collaboration with Remei Tanzania, whose participatory model ensures organic cotton farmers are supported to improve organic farming practices, are fairly paid and have the resources they need to develop their livelihoods.

By using organic cotton and recycled materials, we are making the best possible choice for the planet, the people in our supply chain and our customers.”

Guido Alvino, Chief Operating Officer

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Choosing our materials consciously

Organic cotton

Since Stanley/Stella began, we have used only organic cotton, grown from seeds that have not been genetically modified and that are cultivated without the use of chemical pesticides and fertilisers. Globally, only 1.4% of the cotton produced is estimated to be organic. We initially sourced all our organic cotton from India, but in 2021, we began sourcing some of our organic cotton in Turkey, and in 2023 we started working with organic cotton farmers in Tanzania. Both Turkey and Tanzania are non-GMO countries, meaning they have banned the use of genetically modified cotton seeds. Cultivating organic cotton ensures that no harmful chemicals flow into the soil or into rivers or lakes. 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 effects on the environment contribute to safeguarding the well-being and livelihoods of cotton farmers and their communities.

GOTS certification

The Global Organic Textile Standard (GOTS) is based on both environmental and social criteria. It certifies that the cotton is organically grown, without the use of genetically modified seeds or any harmful chemical products. Throughout our collections, we choose 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 consumer.

of the cotton we use is GOTS certified organic cotton 100%

Our GOTS certified product ranges

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100% organic cotton

Product example: Cruiser 2.0

Textile Exchange

Through its Materials Benchmark programme, Textile Exchange tracks companies’ progress in more sustainable materials sourcing, creating the largest peer-to-peer comparison initiative across the fashion, textile and apparel industry. In the 2023 Materials Benchmark survey, Stanley/Stella ranked in the top 10 companies out of more than 150 that are using preferred materials, namely organic cotton. In fact, the 2023 Material Change Index (MCI) - a key component of the programme –confirmed that we are one of the largest purchasers of organic cotton in the world. In 2024, we were one of the 154 signatories of Textile Exchange's Sustainable Cotton Challenge. This initiative aims to serve as a catalyst for shifting the market toward cotton grown with improved environmental and social sustainability practices. The challenge showed that we are among the 24% of companies that have already achieved the target of sourcing 100% of their cotton with sustainable programmes such as the GOTS certification.

67

2

85% organic cotton 15% recycled polyester

Product example: Drummer 2.0

Our cotton origin in 2023 (%)

67% 31% 2%

from India from Turkey from Tanzania

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Choosing our materials consciously

Going beyond certification

On our journey to source our cotton in the most responsible way possible, we go beyond GOTS certification to provide our customers with consistently high-quality organic cotton. In addition to diversifying our cotton sourcing to include two non-GMO countries – Turkey and Tanzania – we also map our supply chain for full transparency and take other initiatives to reinforce the traceability and organic integrity of our cotton, including:

Anil, Senior Organic Cotton Sourcing Specialist, Turkey

Gaurav, Global Cotton Sourcing Specialist, India

In-house expertise in cotton sourcing

To deepen our knowledge about the organic cotton industry, ensure we have the necessary in-house expertise in organic cotton purchasing, and be able to guarantee unrivalled quality and supply chain integrity, we now have two organic cotton sourcing specialists, one in India and one in Turkey.

Regular visits to farmers, ginners and spinners

samples tested for GMOs and pesticides ( 2023 ) 53

In 2023, our team visited partner spinning mills in India on several occasions. There, we also met with ginners and cotton farmers to better understand the realities and needs of suppliers further along our supply chain. We also visited ginners, spinning mills, and warehouses in Turkey to discuss organic cotton bale quality and organic integrity, and met with cotton farmers in Tanzania to further enhance our understanding of their activities and conditions in the country.

Read more about GOTS here.

30

Choosing our materials consciously

Remei Tanzania, our first 'direct-to-farm' project

← Organic cotton support and control The first step in producing organic cotton is using seeds that are not genetically modified. In Tanzania, GMO seeds are banned by the state which handles the controlled distribution of non-GMO seeds to farmers. Farmers then use natural methods to control pests and improve soil fertility, and Remei’s extension services closely monitor production through detailed farm records.

In 2023, we embarked on an exciting collaboration with Remei Tanzania, part of the Swiss-based Remei Group. Remei is committed to creating value for all those involved in the textile supply chain, starting with organic cotton farmers in India and Tanzania. Remei Tanzania provides farmers with continuous local support, including training in organic practices and access to natural pesticides. It also ensures fair pricing for organic cotton farmers through a purchase guarantee and a 15% premium on market prices, fostering financial stability and long-term commitment. After harvesting, the organic cotton is

ginned in Remei’s nominated organic-certified ginning facility in Tanzania.

Through this collaboration, we are supporting 2,000 farmers across 32 villages in the Simiyu Region’s Meatu and Maswa areas. Remei’s participative model fully aligns with our commitment to sustainable practices, positively impacting both the environment and the lives of those who cultivate the land.

← Organic cotton ginning and certification Remei operates with an exclusive ginning facility in Tanzania for the organic cotton from the 2,000 farmers it supports. This ensures there is no contamination possible from conventional cotton. Thanks to its qualified extension officers, Remei also manages and controls the quality of the organic cotton and its Global Organic Textile Standard (GOTS) certification.

← Natural pesticides Remei provides farmers with quality natural pesticides, allowing them to avoid being exposed to harmful chemicals. This, combined with crop rotation, ensures long-term soil fertility, which is critical for smallholder farmers’ livelihoods. ↓ Education and training Smallholder organic farmers have access to Remei’s unique guidance services for coaching and training courses to continuously improve their knowledge and skills in organic cultivation. Remei organises different types of training, such as need-based farmer training and training specifically for female family members. They also have demo farms in each village where farmers can see farming techniques and learn them.

© Remei .

← Supporting livelihoods and communities Farmers’ payments are secured thanks to Remei’s commitment to purchase their organic cotton and pay an additional 15% premium above the market price. As well as empowering business growth, Remei also supports community projects. For example, a water project in Tanzania, which provides safe and accessible drinking water to villages.

© Remei .

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Choosing our materials consciously

Recycled materials

As part of our quest to reduce the environmental impact of our products, all the materials we use other than organic cotton are recycled materials. Recycling waste into textiles not only keeps waste out of landfills, it also decreases reliance on virgin resources, and typically requires less energy than producing new materials. Our RE-Range uses pre-consumer recycled cotton from cutting waste, while our outerwear garments are made using recycled polyester from post-consumer PET bottles. We also use recycled nylon from pre-consumer industrial waste.

GRS certification

Like GOTS, the Global Recycled Standard (GRS) provides assurance that products are made from verified recycled materials and in a way that respects both the environment and those involved in the value chain. It covers aspects such as traceability, environmental principles, social requirements, chemical content, and labelling. All the recycled cotton we use is GRS certified.

Made with 42% GRS recycled cotton and 15% GRS recyclec polyester Certified by Control Union CU 819434

of the recycled cotton we use is GRS certified 100%

Recycled cotton

Our GRS certified recycled cotton product range

We seek to minimise waste at production level and strive for more circular business models. Recycled cotton plays a key role in this. In 2017, we started using recycled cotton in our accessories range. Since then, we have increased our recycled cotton product range and even started using our own cutting waste to create new products. For our RE-Range, our black, navy and white cutting waste is taken to a spinning mill where it is finely shredded before being blended with virgin organic cotton. These fibres are then spun into new yarn, which is knitted into durable fabric. Blending this cutting waste with virgin organic cotton creates a unique natural heather effect, eliminating the need for dyes and drastically reducing the amount of water used per garment.

42% recycled organic cotton 43% virgin organic cotton 15% recycled polyester

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Made with 42% GRS recycled cotton and 15% GRS recyclec polyester Certified by Control Union CU 819434

Product example: RE-Cruiser

partner factories collect cutting waste for our RE-Range

colours used to produce our RE-Range

50% recycled organic cotton 50% virgin organic cotton

Made with 50% GRS recycled cotton Certified by Control Union CU 819434

tonnes of our cutting waste was made into new products ( 2023 ) 200 +

Product example: RE-Creator

80% recycled cotton 20% recycled polyester

Made with 80% GRS recycled cotton and 20% GRS recycled polyester Certified by Control Union CU 819434

Product example: RE-Tote

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Choosing our materials consciously

Recycled polyester & nylon

We use recycled polyester for our outerwear garments and blend it with organic cotton for some of our sweatshirts and accessories. Since 2018, we have exclusively used recycled polyester made from post-consumer PET bottles, sourced mainly in China. Depending on the style, it takes between 38 to 95 plastic bottles of 550mL (the standard size of a bottle in China) to produce our jackets. For all our outerwear in recycled polyester, we 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. In 2023, we visited collection points, spinners and factories in China to better understand our value chain and how the recycled materials come from waste. We also have an Operations Manager and Fabrics Manager in China whose expertise helps us ensure quality and supply chain integrity. For two of our outerwear styles, we use pre-consumer recycled nylon, made from industrial nylon yarn waste. This GRS certified fabric is durable and strong, while at the same time being extremely lightweight and soft on the skin.

How many bottles are used to create our styles?

Our GRS certified recycled polyester & recycled nylon product range

100% recycled polyester

Product example: Stanley Climber

Made with 100% GRS recycled polyester Certified by Control Union CU 819434

Puffer 70 bottles

94% recycled polyester 6% elastane

Product example: Navigator

Made with 94% GRS recycled polyester Certified by Control Union CU 819434

Puffer Gilet 38 bottles

Read more about GRS here.

100% recycled nylon

Made with 100% GRS recycled nylon Certified by Control Union CU 819434

Product example: Tracker

Liner 64 bottles

Trekker 71 bottles

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Choosing our materials consciously

Strengthening the recycled polyester supply chain through field visits

← From waste to resource The shredded PET flakes are then melted and extruded into tiny pellets. These pellets serve as the raw material for creating new fibres, marking a pivotal moment where discarded plastic starts to gain new value as a reusable resource.

As we stand by our promise to deliver garments that meet the highest quality, environmental and social standards, we constantly strive to deepen our understanding of our supply chain. Field trips are a key part of this process. In 2023, our Sustainability and Sourcing teams travelled to China to trace the origin of our recycled polyester back to the collected post-consumer PET bottles collection and observe all steps of their transformation until the final material. We visited collection points, spinners and factories, meeting the people who make this transformation possible.

← A new life begins The pellets are melted again and spun into fine polyester fibres through a process called melt spinning. The thickness and length of the fibres are adjusted according to the needs of the fabric being produced. At this stage, the material moves from a solid plastic form to soft, flexible fibres that can be woven into textiles.

← Starting at collection points The journey begins with the collection of PET bottles, commonly used for beverages and other consumer products. Once discarded, these bottles often end up in recycling bins or collection centres. The bottles are carefully sorted by colour and type to ensure the purity of the recycled material. ↓ A complex, multi-phase transformation Once sorted, the bottles undergo a thorough cleaning process to remove labels, adhesives and any residual contents and impurities. After cleaning, the bottles are shredded into small flakes. These flakes are the building blocks of the recycled polyester.

← The people that make it possible Turning PET bottles into garments is a collaborative effort, starting with those who gather and sort the discarded bottles at the collection points. Their efforts, along with the work of everyone involved in every step of the process – from cleaning and processing to spinning, weaving, and garment production – are crucial in transforming waste into something new and valuable.

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Choosing our materials consciously

Dyes & finishing

Our priority is to ensure that dyes, finishing 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®.

OEKO-TEX certification

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 component 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 that may be harmful to human health. In many cases, the limit values for the STANDARD 100 label go beyond national and international requirements.

of our product are Oeko-Tex® certified 100%

Read more about OEKO-TEX® here.

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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 and water use across our supply chain.

Unveiling our decarbonisation strategy in early 2024 was a big step. Now, we have a clear and common agenda within the entire organisation to reduce our relative emissions by 30% by 2030.”

Marten Verheugt, Sustainability Ambassador

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Minimising our environmental footprint

Our carbon footprint

Our 2023 carbon footprint

In 2022, we started collecting data on our Tier 1 (garment), Tier 2 (fabric) and Tier 3 (yarn) suppliers to build a more complete picture of our climate impact. Now, in our third year, we have primary data for all suppliers up to Tier 3, giving us a precise view of emissions and emission drivers per supplier. Our carbon footprint is calculated according to the leading GHG Protocol Corporate Accounting and Reporting Standard, complemented with the Bilan Carbone method. Every year, we strive to improve our data collection and adjust our calculations where necessary. Based on the most up-to-date information, we have adjusted our previous years’ total CO 2 emissions to provide a more accurate baseline for our decarbonisation strategy and objectives: Changes to our previously reported 2022 emissions are due to a more granular understanding of our supply chain actors and shares, more granular primary data including validated and corrected data, and corrections to some emission factors, mainly natural gas. In 2023, although we sold a similar number of products compared to 2022, 26% fewer products were produced. This is the main reason our absolute emissions dropped by 8%. Emissions did not drop in line with production as more yarn was produced and more lint cotton ordered in 2023 compared to 2022. This was in anticipation of production for 2024, including the launch of the Iconics 2.0 as well as our entry into the US market. Starting in 2024, we are also measuring specific product impacts from the raw materials to end-of-life using Life Cycle Assessments (LCAs), which include CO 2 emissions and other factors like water use. In a first phase, we worked with experts to collect primary

data from our suppliers, and we validated the data through on-site visits. We expect to release the first product impact information on ten products before the end of 2024. Knowing the impact of our products is not only important in our quest for transparency, but it also helps our customers to make informed decisions and guides us in developing ever more sustainable collections.

124,712 tCO 2 e

2030 target -30%

28.9%

2022 result (baseline) 15.38

16.4%

16.5%

2023 result 14.33

9.3%

7.3%

6.8%

6.3%

3.9%

3.2%

1.4%

reduction between 2022 and 2023 -7%

Fibre manufacturing

Ginning

Yarn manufacturing

Fabric manufacturing

Garment manufacturing

Transport & warehousing

Stanley/Stella HQ activity

Dealer activity

End-customer use

End-of-life

(relative emissions in tCO 2 e/t product )

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Minimising our environmental footprint

Minimising our environmental footprint

After two years of intensive work mapping every aspect of our operations and value chain to measure our total carbon footprint, we have embarked on an ambitious decarbonisation mission: to reduce our relative carbon emissions by 30% by 2030, from a 2022 baseline. Our decarbonisation strategy

← More energy-efficient manufacturing In May 2024, after alignment and commitment meetings with each CEO and top management of our Tier 1 suppliers (garment level), we launched a pilot programme to identify energy-efficiency opportunities at supplier level. Accompanied by engineers, we measured each step of the fabric and garment manufacturing process to establish concrete actions we can take together to reduce their emissions. We plan to scale this programme to all our suppliers, and estimate it has the potential to reduce our total emissions by up to 10%.

Given our historic and projected growth, working with absolute reduction targets presents challenges. Our decarbonisation strategy therefore uses a relative target, taking the total absolute emissions and expressing them in relation to the weight of products produced and sold. This allows us to see, by produced and sold products, how we can reduce our relative impact by 30% in just under eight years.

← Full-company commitment to action Setting an ambitious corporate goal is one thing, but achieving it requires a solid plan and a deep sense of ownership that is felt throughout the entire company. In April 2024, we brought all our employees together for an inspiring event to share the steps we have taken so far, explain the details of our decarbonisation strategy and our 2030 target, and reinforce the fact that we all have a role to play in this huge and exciting project. Collaboration across the value chain With most of our emissions linked to activities outside our own operations, we know we need to work closely with those in our value chain to achieve our goal. Rather than simply setting benchmarks for our suppliers and partners, we are actively helping them to identify opportunities based on the primary data collected, and develop ambitious yet feasible action plans to transform their operations. Central to this approach are 12 multistakeholder working groups that unite our suppliers and partners, Stanley/Stella employees, and independent experts. Since launching our strategy at the beginning of 2024, some working groups have already started making progress.

← Lower-impact logistics Although transportation from the cotton fields to end customers only represents around 5% of our total emissions, we aim to further reduce our impact. Our logistics working group is collaborating closely with our transportation partners to reduce their emissions by transitioning to lower-emission fleets. We have also given our partner warehouses a 25% emissions reduction target and have established strict emissions criteria for selecting future warehouse partners.

← Greener offices Emissions from our own offices account for less than 1% of our total emissions, but through specific actions, we can reduce those emissions even further. For example, in 2024, we hope to install geothermal heat pumps at our Brussels headquarters – subject to a feasibility study by the building owner – which could potentially reduce natural gas consumption for heating by 50%. This, in addition to our green electricity sourcing, our 317 rooftop solar panels with a 90 kWp installed capacity, and our use of rainwater for toilet flushing, would help us turn our workplace into an even more resource-efficient space. We have also defined a new green company car policy and travel policy to cut our carbon footprint. These and other actions should help us achieve our ambitious target of a 60% reduction in office emissions by headcount by 2030.

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