1888Mills_Sustainability_2013-14_v3

The Sustainability Mission

MISSION STATEMENT

Consistent with our Brand Purpose of 'Weaving a Better World', we at 1888 Mills believe that it is our responsibility to our stakeholders and the economic regions where we operate, to drive innovation in the global marketplace by executing initiatives that promote environ- mental stewardship and contribute to poverty reduction. Our framework for sustainability encompasses environmental and social objectives within our business that impact our world. With our 15,000 associates, we have a profound influence on the communities we serve through the promotion of education, technology, health care and job creation. 1888 Mills has adopted a Triple Bottom Line approach to measure our success: People, Planet, and Prosperity. We continually strive for improvements in our processes through Lean Six Sigma, Waste Management and an Environmental Management Policy. Recogniz- ing that sustainability is multifaceted, our product lines promote energy savings, as well as environmental and social responsibility.

raw materials

social responsibility

manufacturing & processing

end of life/new life

assembly & transportation

end of product use

This booklet walks you through a synopsis of the life cycle of our products. From raw materials to end of life, 1888 Mills is committed to sustainable business practices. This commitment extends to every facet of our business and guides our plans for sustainable growth.

Raw Materials CHAPTER 1:

Raw Materials > Better Cotton Initiative > Fiber Certification CHAPTER 1:

Raw Materials Better Cotton Initiative Fiber Certification CHAPTER 1:

1888 Mills is committed to managing renewable resources responsibly. Through strategic partnerships with global organizations, we are able to ensure the exchange of good practices throughout the complex, farmer to retailer supply chain. Here are a few of the organizations and certifications that 1888 Mills uses to protect our sustainability principals:

The Better Cotton Initiative (BCI) – A holistic approach to sustainable cotton production. 1888 supports the on-going commitment and continuous improvement to create production criteria for sustainable cotton farming. 22% of 1888’s total yarn purchase is BCI, as per customer requirement under the Cotton from More Sustainable Sources (CMSS) program. Fiber Certification Here is a list of trusted organizations that 1888 Mills uses to create a clear and unambiguous understanding of our strict sustainability standards: > GOTS Certification (Global Organic Textile Standard) > Oeko-Tex Fiber Certification – An Independent testing certification system that tests textile products from all stages of production (this helps call attention to any substance that might hold high HVSC) > Lenzing Group – A world leader in high-quality, botanic cellulose fibers with high standards for sustainable production. > Aid by Trade Foundation – An organization that is committed to sustainable cultivation & agriculture, as-well-as improving cotton in regions of Africa, allowing for improved trading and living conditions for the farmer.

Manufacturing & Processing of Materials

CHAPTER 2:

Manufacturing & Processing of Materials > Manufacturing Certification

> Natural Gas/Heat Conservation > Water Conservation/Recycling > Electricity > Waste Recycling

Manufacturing & Processing of Materials Manufacturing Certification ] CHAPTER 2:

Certifications All of the 1888 manufacturing facilities maintain certifications that establish environmental credentials and best practices. These strict standards help 1888 Mills minimize it’s impact on the environment and maintain ethical work environments globally. Here is a list of all current 1888 Mills certifications: > QMS/ISO9001:2008 > SAI 8000 > EMS 14001 > OHSAS 18000

> GOTS > C-TPAT > WRAP > GSV > ISO 15001 > BSCI

> OEKO-TEX > ISO-17025

Manufacturing & Processing of Materials Natural Gas/Heat Conservation ] CHAPTER 2:

Natural Gas/Heat Conservation As a global textile company, 1888 Mills recognizes that climate change is a significant environmental concern, and that reducing GHG emissions can help protect the planet. We continually evaluate and innovate at our global facilities. The following projects are currently in practice within our manufacturing facilities:

Solar Turbines This machine recovers exhaust heat, saves natural gas, and keeps exhaust from being omitted into the environment.

Heat Recycling Exhaust ducts within our facilities route hot air to other operations, reducing the need for natural gas to generate this heat

Gas vs. Propane 1888 employs a dual fuel system. If natural gas demand in the surrounding community is high, we switch to propane tanks. When our propane tanks are activated, we save enough natural gas to heat 5,309 households for one hour. Micro Modulation Boilers Special controls installed on our boilers, conserve energy by measuring emissions and providing only the minimum level of fuel needed to generate steam.

Heat Exchange Hot waste water is used to heat incoming clean water reducing the need for natural gas to generate this heat. Turbine Heat Reclamation 1888 reclaims steam that is generated during production. Instead of this steam wasting away into the environment, we use it to generate energy. An average 5.5 to 6 TPH (Tons per Hour) steam is being generated from the exhaust heat recovery boiler of turbine c-40 at average load of 1850 KWHRS, saving of 440 to 480 m3 of natural gas per hour.

Manufacturing & Processing of Materials Water Conservation/Recycling ] CHAPTER 2:

Water Conservation/ Recycling Water is a vital resource for all of the 1888 Mills worldwide operations. It is needed to grow cotton crops, and is crucial resource for the manufacturing process. 1888 has implemented water conservation measures and evaluations globally to protect one of our earth’s most precious resources.

fun fact!

fun fact!

last year we harvested & reused 5,700 CUBIC

can save 97,000 GALLONS

of water per day

METERS of water

MCS Rope Washing Machines This machine allows a larger production capacity with less consumption of water and energy resources.

Water Reclamation Rain Water is collected at our facilities and reused for manufacturing.

Waste Water Treatment & Recycling The Primary Purpose of water treatment is public safety and environmental safety/health. Through reverse osmosis, all harmful substances such as chemicals, soap and human waste are removed before the water returns to the environment.

Ultra Filtration Plant Our mills have installed filtration plants that recycle 250,000 gallons of water per day. This provides 240 m 3 per day in water savings from recirculation of WTP back wash water and counter current flow system in the wash box.

Manufacturing & Processing of Materials Electricity ] CHAPTER 2:

Flourescent Phillips Lighting Our mills use energy efficient lighting systems to reduce energy costs. Daily, 1070 KW of electricity is being saved by installing 6500 LED tube lighting. An additional 471.42 KW of electricity is being saved daily by installing needle point LED spot lights in the sewing rooms.

Daylight Processing By using day light as processing shade, we are saving 342 KW electricity per day.

Solar Energy 1888 mills has installed a solar energy plant at one of our locations. Solar energy currently accounts

for 22.5% electricity of total consumption at this plant.

Electricity 1888 Mills has recognized that using less energy is not only better for the environment, it is smart business because it can help mitigate the financial impacts of rising energy costs. Our processes have played a key role in reducing Greenhouse Gas Emissions and improving efficiencies in our factories.

Manufacturing & Processing of Materials Waste Recycling ] CHAPTER 2:

Waste Recycling Every stage of our operations presents an opportunity to eliminate waste. We have been focused on finding many ways to reduce, reuse, or recycle to divert solid waste from landfills.

Yard Waste Recycling Nothing goes to waste, 1888 Mills uses a back-winding process to recover yarn discarded during production.

Shearing Waste Sheared Loops are collected and baled.

These bits of cotton are sold to third party brokers. Sporting goods manufacturers use our discarded loops as stuffing for sporting equipment.

Chemical Waste To ensure that pollutants do not enter the environment, 1888 collects discarded chemicals in collection tanks, and works with licensed agents to keep waste from entering the environment.

Polythene Recycling Plant 1888 Mills has installed a plant to reduce the polythene waste. The plant recycles almost 90,000 kg per month (fresh & recycled).

Assembly & Transportation CHAPTER 3:

CHAPTER 3:

Assembly & Transportation > Shipping Materials

> Space Planning > Carbon Neutral > Sustainable Packaging

Assembly & Transportation Shipping Materials ] CHAPTER 3:

Our sustainable packaging policy is embedded into every packaging and new product initiative at 1888 Mills. Specific considerations include the identification, evaluation and use of environmentally friendly packaging materials such as plant-based materials; minimizing the overall amount of packaging materials consumed; and optimizing designs for transport efficiency.

Shipping Materials

Recycled Content Our warehouses and mills use recycled content corrugate and poly liners for shipping. (up to 35% recycled content) Recycling Programs We take part in recycling programs that purchase and re-use our corrugate, poly liners, and string waste. Extended Box Life 1888 Mills gives extended life to our corrugate boxes by re-using them when shipping between our internal mills and warehouses. Pallet Sharing Program 1888 Participates in a pallet-sharing programwith CHEP. We purchase their pallets and report where we sent them. CHEP recovers those pallets for re-use. Bale Packs When possible, we use compressed bale packs instead of corrugate to increase container loads by up to 70%.

Assembly & Transportation Space Planning ] CHAPTER 3:

Space Planning

Cape Pack Software Our mills use pallet pattern and container fill software called Cape Pack. This software maximizes container space, improves material and cube utilization, helps avoid empty space, saves CO2 emissions, and speeds up loading and unloading.

Assembly & Transportation Carbon Neutral ] CHAPTER 3:

Carbon Neutral

UPS Carbon Neutral Program We participate in the UPS Carbon Neutral Offset Program. This program helps balance out the emissions created by the shipment of our product. UPS gives back to certified third parties that help with reforestation, land-fill gas destruction, wastewater treatment, and methane destruction.

Assembly & Transportation Sustainable Packaging ] CHAPTER 3:

Sustainable Packaging

Toxin Testing Third Party testing labs are used to ensure that our packaging materials are free of harmful toxins. Alternative Materials We use alternative packaging materials such as soy-based inks, synthetic papers made from stone, recycled-content papers, and seed-embedded papers. Bedding Bag Alternatives 1888 offers a wide variety of alternatives to vinyl bedding bags such as: self-fabric, PEVA, EVA, and RCO-EXPE FSC Paper We purchase FSC Certified Papers (Forest Stewardship Council) which uses wood pulp derived from organizations that meet strict federal and international laws that regulate sustainable forestry.

Assembly & Transportation CHAPTER 3: Su tainable Product Benefits 4

Sustainable Product Benefits > Energy Savings > Durable / Long Life > Dirt to Shirt > Sustainable Fibers CHAPTER 4:

CHAPTER 4: Sustainable Product Benefits

]

Energy Savings

Our sustainable packaging policy is embedded into every packaging and new product initiative at 1888 Mills. Specific considerations include the identification, evaluation and use of environmentally friendly packaging materials such as plant-based materials; minimizing the overall amount of packaging materials consumed; and optimizing designs for transport efficiency.

Energy Savings

Quick Dry Dries quicker in the dryer saving energy and time Guest Ready (Whole Solutions™) Anti-microbial finish eliminates need to pre-launder saving on water, gas, electricity, chemical usage

CHAPTER 4: Sustainable Product Benefits

]

Durable/Long Life

Durable / Long Life

EnduraWeave™ This durable base construction prolongs the life of the towel

CHAPTER 4: Sustainable Product Benefits

]

Dirt to Shirt

Dirt to Shirt

Made Here™ 100%Made in USA product, that is made fromSupima Cotton that is grown, spun, and woven in the USA. This product saves on transportation/shipping costs.

CHAPTER 4: Sustainable Product Benefits

]

Sustainable Fibers

Sustainable Fibers

Cotton Made in Africa Cotton purchased directly from farmers in sub-Sahara Africa to ensure fair trade for their cotton crop. Improves the lives of the farmers and their families. Naked ™ (Modal® Body) Fibers Beechwood fibers are processed in a closed loop processing system to reduce the release harmful chemicals into the environment Organic The reduction of pesticides during the production of cotton.

NA KED

End of Life/New Life CHAPTER 5:

End of Life/New Life > Recycled > Regenerated > Charitable Contributions CHAPTER 5:

End of Life/New Life Recycled ] CHAPTER 5:

1888 Mills’ focus on solid waste reduction has spanned from our North American operations to factories around the world. Our goal is to recycle and reuse what some may consider “waste”. We’re committed to reclaiming and transforming our valuable resources into beautiful products that are themselves recyclable.

Recycled Content Product

RPET (Recycled Polyethylene Terephtalate) Portions of product can be produced from polyester recycled from plastic bottles that were gathered by approved bottle plants. Foundations™ Lightweight Comforter Inserts These bedding comforters have cover fabric that is made from 100% recycled polyester, and can be used in hotels around the world.

Regenerated ] End of Life/New Life CHAPTER 5:

Regenerated Content Product

Unused cotton fibers frommanufacturing are re-spun into cotton yarns to reduce unnecessary waste.

Charitable Contributions ] End of Life/New Life CHAPTER 5:

Charitable Contributions

Overuns and extra samples are generously donated to organizations such as The Red Cross, Salvation Army, and Disaster Relief Efforts.

Social Responsibility CHAPTER 6:

Social Responsibility > Employees > Healthcare > Health Awareness CHAPTER 6:

Social Responsibility Employees ] CHAPTER 6:

1888 Mills has built an enduring legacy as an industry leader when it comes to supporting the health, safety and well-being of the individuals who work for us and the communities where our offices and manufacturing facilities are located.

Employees Programs

Adult Literacy Program Educational opportunities to teach employees to read and write Scholarships Annual scholarships are offered to the children of employees in the USA, as well as, Child Education Assistance offered in our overseas facilities Meal Plans Subsidized meals are offered to our locations Financial Aid Provided to employees during times of hardship Flood Relief Programs During times of global disaster, aid is offered to employees for recovery Weaving a Better World Day 1888 Mills holds a global corporate holiday each year to remind every member of the 1888 family of their impact on the world and each other.

Healthcare ] Social Responsibility CHAPTER 6:

Healthcare

Medical Clinics and Ambulance Service Clinics are available at our locations free of cost to employees Red Cross CPR Certified Training Medical training is provided for management and section leaders at all USA manufacturing facilities Tabba Heart Institute A state of the art Cardiac Facility available to employees

Health Awareness ] Social Responsibility CHAPTER 6:

Health Awareness

Health Mela An event organized for staff, and their families to visit doctors and be treated free of charge. World Heart Day A day when employees can visit the factory physician and have their blood pressure checked. Blood Donation Days World Diabetes Day A day when employees can visit the factory physician and have their blood sugar checked.

Thank you!

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This sustainability information was prepared by 1888 Mills For internal use only by 1888 Mills, LLC. NOT FOR SALE OR DISTRIBUTION ©2014

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