Stanley/Stella - Sustainability Report 2020

OUR PATH TO SUSTAINABILITY

THE COVER IS MADE OF 100% RECYCLED COTTON

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“

We are an innovative Belgian apparel company producing premiumand sustainable clothing.We believe that premium quality and timeless fits are key for a sustainable slow fashion industry.And,we are totallycommitted toworking in adifferent way and contributing to driving positive change in the textile industry as a whole. From the beginning, our mission has been to create high- quality garments in the most responsible and ethical way. We therefore integrate sustainability into everything we do. Every day we make deliberate, conscious decisions about who we work with, howwe work and what materials we use. Exacting in our standards of production, we insist on respect for the planet and its people throughout our supply chain, in line with the UN. Sustainable Development Goals. Ecological and ethical imperatives ensure that we deliver products season after season, products that our dealers are proud to sell, products that people love towear, products that help our future generations.

”

Jean Chabert, Founder and CEO Stanley/Stella

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Sustainability Report 2020

SUSTAINABLE SOURCING

OUR CERTIFICATIONS

RESPONSIBLE PRODUCTION

P.08

P.24

P.28

Global Organic Textile Standard Global Recycle Standard People for the Ethical Treatment of Animals Organic Content Standard OEKO-TEX

Proudly made in Bangladesh We are a member of FairWear Foundation (FWF) Towards a living wage Good working conditions Selecting partners

p.29 p.31 p.35 p.36 p.37

p.25 p.25 p.25 p.25 p.25

p.09 p.11 p.13 p.17 p.19 p.21

Organic cotton Better for the planet Better for people We are GOTS certified The cotton journey Recycled polyester

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Contents

INSIDE OUR FACTORIES

OUR ENVIRONMENTAL FOOTPRINT

THE ROAD AHEAD

P.40

P.52

P.60

Path to sustainability Fair-priced Grocery Shops Recycling fabric waste Cotton traceability project GOTS certified printing Stanley/Stella HQ

CO2 emissions, energy Water consumption Transport Warehousing

Transparency Monitoring Ahsan Dird Interstoff Apparels Meghna Aus Bangla Jutex Shuangxi Garment Co

p.61 p.62 p.65 p.66 p.69 p.70

p.53 p.54 p.57 p.57

p.41 p.42 p.43 p.44 p.47 p.48 p.49 p.50

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SUSTAINABLE SOURCING

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

Tereza Hugerman, Product Development and Quality Manager

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Organic cotton flower ready for harvest.

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Sustainability Report 2020

ORGANIC COTTON

WE WORK EXCLUSIVELY WITH ORGANIC COTTON

From day one, we have chosen to work sustainably using only 100% organic cotton because for us, using conventional cotton can never be ethically justified. Organic cotton comes from seeds that have not been genetically modified (non-GMO) and is grown without the use of chemical pesticides or fertilisers. Organic cotton farming uses natural me- thods, such as crop rotation, which benefit not only the soil, fauna and the environment, but create biodi- versity and promote good health and quality of life for farmers and their communities.

A cotton plant needs roughly 180-200 days from planting to be ready for harvest. Cotton is one of the world’s oldest known fibres. Seeds represent 66% of the weight of cotton balls.

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Sustainable sourcing

ORGANIC COTTON REPRESENTS ONLY 0.7%

OF THE 25 MILLION TONNES OF COTTON PRODUCED ANUALLY

OF THE WORLD’S CULTIVATED LAND ... CONVENTIONAL COTTON REPRESENTS 2.4%

16% OF THE WORLD’S INSECTICIDES ... BUT A MASSIVE

and 6% of chemical pesticides used worldwide. Conventional cotton is grown from genetically modified (GMO) seeds, and with the assistance of agricultural chemicals.

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Sustainability Report 2020

BETTER FOR THE PLANET

WE CHAMPION PRACTICES THAT DON’T HARM THE EARTH

Cultivating organic cotton ensures that no chemical insecticides, fertilisers or pesticides flow into the soil or into adjoining rivers, lakes or seas. This also means that the water used for organic farming is not considered as lost water, as it can be reused again and can return to the soil and otherwater sources without causing any harm. The overall positive effect onwater, animals and biodiversity means that the well-being and livelihood of cotton farmers and their communities is respected and protected.

There is only one planet Earth. It's up to all of us to consider how our methods of production affect the soil, lakes, rivers and oceans, the air and countless communities across the globe.

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Sustainable sourcing

BENEFITS OF ORGANIC COTTON

26% LESS POTENTIAL FOR SOIL EROSION

LESS SURFACE AND GROUNDWATER USE 91%

LESS IMPACT ON GLOBAL WARMING 46%

LESS ACIDIFICATION OF LAND AND WATER 70%

Source: Textile Exchange. (2017, June). Quick Guide to Organic Cotton.

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Sustainability Report 2020

BETTER FOR PEOPLE

Organic cotton avoids any kind of pesticide poiso- ning which can lead to multiple health problems and even death. 200,000 people die from toxic exposure to pesticides per year across the world, according to the UN. While the yield of organic cotton may be lower than conventional cotton, farmer revenues do not decrease, as their overall expenses are reduced. Crop rotation and intercropping also benefit farmers as it allows them to further supplement their food and income. 300,000 farmers have committed suicide since 1995, in response to the high cost of GMO seeds, pesticides and chemical fertilisers. ORGANIC CULTIVATION PROTECTS THE WELL-BEING OF FARMERS AND THEIR COMMUNITIES

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Sustainable sourcing

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Sustainability Report 2020

01

Sustainable sourcing

Rich organic soil, untouched by chemical fertilisers or pesticides

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Madhya Pradesh, India – 2019

Organic cotton farmers in India use traditional, natural fertilisers, like cow dung, to keep the soil rich in nutrients.

Visiting the home of an organic cotton farmer

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Telangana State, India – 2019

Organic cotton is often used as currency or to bar- ter with in exchange for food. Picture taken during a Stanley/Stella cotton traceability trip.

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Sustainability Report 2020

From day one, we have chosen to work sustainably using only 100% GOTS certified organic cotton in our range of t-shirts and sweatshirts. It is a stringent certification that guarantees cotton is organically grown without the use of genetical ly modified seeds or any harmful chemical products (such as pesticides, fertilisers and insecticides) that are dan- gerous for the environment or the health of farmers or factory workers. It ensures traceability of pro- ducts from the field to the final customer, including transaction certificates at each and every stage of production. While there are many other certifica- tions related to organic cotton, we have chosen towork with GOTS, the most respected and rigorous certifi- cation with the most demanding criteria. Crucially, it covers not only rawmaterials and production but also covers social aspects related to the health and well- being of people in the supply chain. WE ARE GOTS CERTIFIED

The Global Organic Textile Standard (GOTS) is a worldwide leading textile processing standard for the production of organic fibres, and is based on both ecological and social criteria. www.gots.com

Combed organic cotton sliver

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Sustainable sourcing

GOTS STANDARDS

STANLEY/STELLA GOTS CERTIFIED PRODUCTS

ORGANIC TEXTILE

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% .

Organic Certified by Control Union CU 819434

Organic Certified by Control Union CU 819434

MADE OF “X”%

If the organic content is between 70% and 95% of the product weight.

Made with 85% organic cotton Certified by Control Union CU 819434

Most of our sweatshirts are certified made with 85% , as their organic content is 85% of the product weight. (The remaining 15% of the product is recycled polyester.)

Made with 85% organic cotton Certified by Control Union CU 819434

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Sustainability Report 2020

It’s a long journey from the cotton field to the final product and at every step of this complex supply chain we aim to ensure the highest level of responsibility. Ultimately, our aim is to have a positive impact on the society, the environment and the economy. Our organic cotton, sourced from India, goes through a number of stages as it moves from the cotton farm to a finished decorated garment to be sold in Europe. We only and exclusively source organic cotton which is certified according to the GOTS standard. THE COTTON JOURNEY FROM FIELD TO FASHION - HOW OUR T-SHIRTS ARE MADE

Bangladesh - Spinning mill: Yarn manufacturing

India - Ginning mill

Cotton lint only represents around 32-35% of the entire cotton ball. The remnants are used as oil and cattle fodder.

The fibres are twisted and spun into yarn. We only use ring-spun, combed yarn.

ORGANIC COTTON FOLLOWS THIS JOURNEY:

India - Organic cotton farms

We buy our organic cotton from a selection of smallholder farmers.

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Sustainable sourcing

Bangladesh - Partner factories

We work with integrated partner factories meaning that everything from fabric knitting to ironing and packing happens in the same factory. Our QualityControllers are present in all facilities, making sure that they comply with social and safety regu- lations and that all stages of production are running smoothly.

QC

Bangladesh to Brussels

The final garments are shipped by boat from Bangladesh to Belgium.

Bangladesh - Fabric knitting

Dyeing & washing

A process of constructing fabric by interlocking series of loops of one or more yarns. We at Stanley/Stella use the weft knitting method for our t-shirts, polo shirts and sweatshirts.

Cutting & sewing

Antwerp - Warehouse

The warehouse that receives our garments is also GOTS certified.

Ironing & packing

Knitting

Europe - Distribution

The garments are displayed in the showrooms of our dealers and sold across Europe.

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Sustainability Report 2020

RECYCLED POLYESTER

WE RECYCLE TO REDUCE WASTE

At Stanley/Stella we use recycled polyester to add sta- bility to our sweatshirts, strength to our accessories and sustainable aspects to our jackets. We have been using only recycled polyester, as op- posed to virgin polyester, since 2018. Studies show that recycling polyester allows for considerable energy savings in themanufacturing process (33-53%), and it is undeniable that tackling plasticwaste has become one of the major environmental challenges of this decade. Globally, about 450 million metric tons of plastic are produced every year and 9.5 million tons of plastic are thrown into the ocean annually, most of it single-use.

The Unisex Padded Hoodie Jacket enables the recycling of approximately 20 PET plastic bottles.

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Sustainable sourcing

DID YOU KNOW THAT PLASTIC BOTTLES CAN BE TURNED INTO CLOTHING ?

Bottles

Flakes

Chips

Staple Fibre

Melting

Products made from recycled plastic are soft, durable and breathable.We recyclewhat otherwisewould become a pollutingwaste.

Recycled polyester is produced from post-consumer PET bottles, the same clear plastic bottles used for bottled water whichwould otherwise go to landfill or end up in our oceans.

These bottles are first cleaned, melted and purified. Then, the liquid is blown into yarn to create clothing fabrics. Our recycled polyester yarn is sourced mainly fromChina.

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OUR CERTIFICATIONS

“We don’t just say we’re sustainable. We are monitored, regulated and approved by some of the world’s leading bodies.”

Sharif Nehal Rahman, Sustainability Officer

<

An Indian traditional cotton farmer, harvesting organic cotton from the field.

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Sustainability Report 2020

Our supply chain is certified by various independent bodies and standards. Each of these certifications help to demonstrate that we are working towards building healthy environmental practices and greater respect for the planet, every step of the way. WE ADHERE TO THE HIGHEST STANDARDS OUR CERTIFICATIONS

GOTS

GRS

The Global Recycle Standard (GRS) is the world’s leading standard for recycled textiles and certifies recycled materials based on environmental and social practices.

The Global Organic Textile Standard (GOTS) is the worldwide leading certification body for the pro- duction of organic fibres and is based on both ecological and social criteria. It guarantees that cotton is organically grown without the use of GMO seeds, or any harmful chemical products (such as pesticides, fertilisers and insecticides) that are dangerous for the environment or the health of farmers or factory wor- kers. It ensures traceability of products from the field to the final customer, including transaction certificates at each and every stage of production.

www.grs.com

www.gots.com

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Our certifications

PETA

OEKO TEX

OCS

The Organic Content Standard (OCS) verifies the pre- sence and amount of organic material in a final pro- duct. It also tracks the flow of the raw material from its source to the final product, but does not take into account social criteria, such as working conditions.

Stanley/Stella is a PETA-Approved Vegan company, as we do not conduct or commission any animal tests on ingredients, formulations, or finished products and none of our products contain any animal derived components.

OEKO-TEX ® is a safety standard for the assessment of harmful substances in fabrics. Its aim is to ensure products are free from harmful substances and follow REACH, the EU regulation which restricts the toxicity of chemicals and heavymetals in all consumer products.

www.peta.org.uk

www.ocs.com

www.oekotex.com

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RESPONSIBLE PRODUCTION

“Only by being open about who we work with and where, can we have healthy working relationships and make a positive impact.”

Bruno Van Sieleghem, Head of Sustainability and Internal Communication

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Garment workers leaving for their lunch break in Dhaka.

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Sustainability Report 2020

including t-shirts, polo shirts, sweatshirts and bags. 99.6 % OF OUR TOTAL PRODUCTION TAKES PLACE IN BANGLADESH

PROUDLY MADE IN BANGLADESH

With around 15 million pieces bought every year from Bangladesh , Stanley/Stella is proud to have contributed to the country’s economic upgrade, and the social advancement of its workers. Since the beginning, we have worked closely with our partner factories to improveworking conditions for the people who make our clothes and we know that we still have a lot of work to do. WE WORK WITH THE BEST FACTORIES IN BANGLADESH

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Responsible production

41 ST

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4.4

ECONOMY OF THE WORLD

MILLION PEOPLE HAVE BEEN LIFTED OUT OF POVERTY IN THE LAST 20 YEARS

MILLION BANGLADESHIS EMPLOYED BY THE TEXTILE INDUSTRY

Twentyyears ago, Bangladeshwas one of the poorest countries in theworld, yet today its economy is ranked 41st in the world. In the space of just two decades, 20 million people have been lifted out of poverty. In fact, Bangladesh is now considered a rising lower middle-income country thanks to innovation and ambitious economic plans. The textile industry is one of themost critical drivers of annual GDPgrowth and accounts for 80% of the total of Bangladesh's exports (worthUSD35 billion) and employs 4.4million people, most of whom are women.

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Sustainability Report 2020

FairWear Foundation (FWF) is an independent organi- sation that works with apparel brands, garment workers and textile industry influencers to improve labour conditions in garment factories. FWF are active in Bangladesh where they audit factories and support trade unions to lobby European governments and other organisations to increase wages and improve working conditions. FWF representatives carry out audits in all our partner factories eve- ry three years and put in place Corrective Action WE ARE A MEMBER OF FAIR WEAR FOUNDATION WE ALWAYS ADVANCE WITH OUR WORKERS’ LIVELIHOODS IN MIND

Plans (CAPs), as necessary. They also regularly or- ganise Workplace Education Programs (WEPs) in partnership with brands, including Stanley/Stella, to help factories reduce and eliminate workplace violence and harassment. FWF also runs an inde- pendent helpline number which ensures complaints are heard and taken care of, should the factory’s internal grievance-handling mechanism fail. Stanley/Stella has been a member of FWF since 2012 and publishes a report every year, detailing the work done on social and environmental issues and the out- comes of monitoring and remediation measures in each of our partner factories.

Responsible production

THE EIGHT PILLARS OF FWF

FWF has eight labour standards based on the conventions of the International Labour Organisation (ILO) and the Universal Declaration on Human Rights.

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

Want to knowmore about Bangladesh and its textile industry? ilo.org

bgmea.com fairwear.org

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Sustainability Report 2020

Our Sustainability Officer from the BLO introducing aWorkplace Education Program

Bangladesh Liaison Office, Dhaka – 2019

Our Sustainability Officer from the BLO presents the FWF’sWorkplace Education Program (WEP) to partner factories. WEPs provide factory ma- nagers and workers with tools to start an open dialogue about issues and opportunities in the workplace. Furthermore, increased awareness about labour standards, together with functioning grievance systems, contribute to improved wor- king conditions.All our factories are now running the same or similar programs.

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Responsible production

On-site childcare

Interstoff factory, Bangladesh – 2020

All our factories offer childcare on site and most offer scholarships to workers’ children.

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Sustainability Report 2020

We choose to work with some of the most ethical and responsible factories in the country. Our partners not only guarantee the legal minimum wage and funda- mental legal requirements such as in-house childcare facilities, maternity leave and medical cover, but also offer additional benefits to their workers. These be- nefits include free transportation, performance and attendance bonuses and increasing pay scales. Other positivemeasures factories have taken are listed under “Notable achievements” on pages 43 to 48. On our side, we invest in projects such as the Fair- priced Grocery Shops *, which subsidise purchases of basic food items for garment workers with a view to increasing their buying power and disposable income. WE ARE WORKING ON CLOSING THE GAP TOWARDS A LIVING WAGE

Through experience, we have found these types of projects to be the best way of increasing worker spending power and improving livelihoods. Increa- sing the amount we pay per t-shirt does not necessa- rily translate to a direct wage increase for the factory workers, and often, when wages go up in an area, so do general costs like rent and food. Local government sets the minimum wage to ensure fair remuneration for garment workers, but also to maintain competitivity for Bangladesh. The last wage increase in Bangladesh was implemented in December 2018, increasing the minimum wage by over 40%. But we certainly won’t leave things there, and remain committed to finding new and innovative ways of paying workers a truly living wage.

Childcare structure

* See “The road ahead” section for more information

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Responsible production

GOOD WORKING CONDITIONS

COMPLAINTS PROCEDURE

It is important to us that all complaints by workers in our partner factories are heard and addressed fairly and promptly. Workers from Stanley/Stella’s partner factories are all informed of the complaints procedure by the FWF and postings on factory floors. At Stanley/ Stella HQ, the Sourcing, Quality and Sustainability Manager handles complaints and discusses them with the suppliers involved.

To ensure the safety of all our workers, wework closely with the FairWear Foundation (FWF).We also support our partners with their Corporate Social Responsibility (CSR) approach, and have put a number ofmechanisms in place to ensure decent working conditions, such as CSR monthly reports, an internal Code of Conduct (CoC), and support of anti-harassment committees. WE ARE DEDICATED TO MOVING FORWARDS

CSR MONTHLY REPORT

Our CSR monthly report works in parallel with the FWF’s formal monitoring. Developed by our local team of Quality Controllers and Sustainability Officers, it allows us to have an update on the working conditions in all our partner factories on an almost daily basis. The report includes checks on social and environmental issues, as well as building and fire safety assessments.

Extra benefit wage

Wage increase by 40 % in December 2018

Living wage

STANLEY STELLA’S CODE OF CONDUCT

Minimumwage

In 2018, Stanley/Stella created its own Code of Conduct based on the eight fundamental conventions of the Inter- national Labour Organisation (ILO.) It has to be signed and respected by all the factories weworkwith. A full copy can be found on our website.

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Sustainability Report 2020

In order to put sustainability at the forefront of our operations, we are very careful when choosing who to work with. New partner factories are sourced, visited and validated by HQ staff as well as the Stanley/Stella Bangladesh Liaison Office (BLO) team. We use rigorous audits and assessment tools to select and monitor suppliers, paying particular attention to health & safety and environmental policies and prac- tices, Code of Conduct compliance and openness to investing in long-term CSR. SELECTING PARTNERS WE ONLY WORK WITH PARTNERS WHO SHARE OUR VISION

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Responsible production

A LIMITED NUMBER OF PARTNERS IN A LIMITED NUMBER OF COUNTRIES

SO THAT WE CAN BUILD LONG-TERM RELATIONSHIPS

SO THAT WE CAN CLOSELY MONITOR OUR SUPPLY CHAIN

SO THAT WE CAN HAVE AN ONGOING, OPEN AND TRANSPARENT DIALOGUE

We collaborate with our suppliers daily to ensure that lead times are realistic and overtime is not excessive.

We have worked with some of our partner factories for over seven year.

We work with a team of 22 people in our Dhaka office (BLO) with 8 Quality Assurance Officers and one Quality Manager who visit these factories on a daily basis. Moreover our Sustainability Officer and Country Manager from BLO also visit the factories on a bi-monthly or monthly basis.

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INSIDE OUR FACTORIES

“Our understanding of our company’s sustainability ambitions combined with our physical presence and inherent local knowledge means we can help to drive positive change in the textile industry in Bangladesh.”

Abdulla Al Rumi, Country Manager-BLO

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Garment workers at the sewing line at Dird.

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Sustainability Report 2020

TRANSPARENCY

Transparency is a fundamental component of any sustainability policy, which is why we made the move in 2018 of publishing the names and contact details of all our suppliers in our Annual Report. At present, we workwith only five partner factories in Bangladesh and one in China, ensuring that we can build supportive, long-term and collaborative relationships with them. WE ARE TOTALLY OPEN ABOUT WHO WE WORK WITH

Dird, Bangladesh, since 2012

Shuangxi Garment Co, China, since 2015

Interstoff, Bangladesh, since 2015

Meghna, Bangladesh, since 2018

Ahsan, Bangladesh, since 2012

Aus Bangla, Bangladesh, since 2017

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Inside our factories

MONITORING

We work closely with the FairWear Foundation (FWF) to systematically monitor the working conditions and practices in our partner factories, and to implement concrete action plans to improve them. Monitoring is carried out in three ways: WE MONITOR WORKING CONDITIONS DAILY

Health & safety policies and practices

Environmental issues

Factory site visits and quality assurance

Certification verification

Regular visits from HQ (2-3 times per year) Daily factory visits by our local team in Dhaka Formal FWF audits (once every 2-3 years)

Code of Conduct adherence

Internal and independent audits

During our visits, Stanley/Stella staff monitor, among others, the following :

A factory’s general approach on social responsibility

As a FWF member, we publish an annual report detailing all monitoring activities that have taken place at each factory in the previous year. In the interest of transparency, this report is available to everyone and can be downloaded at : stanleystella.com/sustainability . Read on for a detailed overviewof each of our factories.

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Sustainability Report 2020

AHSAN

21.3% 3,200

OF OUR TOTAL PRODUCTION

CERTIFICATION

NOTABLE ACHIEVEMENTS FOR 2019

TOTAL EMPLOYEES

Set up fire-fighting systems in the new knitting and store building Fire Safety Committee Training Fire Safety training for all employees Enrolment of women in supervisory roles

GOTS

OEKO-TEX

30% WOMEN 70% MEN

OCS

PRODUCT RANGE

Knitted garments:

FWF AUDIT

Chandar, Kaliakoir Gazipur-1740, Bangladesh

18 & 19 May, 2013

S006 Ahsan

14 & 15 Feb, 2015

6 & 7 Oct, 2018

Inside our factories

DIRD

NOTABLE ACHIEVEMENTS FOR 2019

39.2% 9,804

OF OUR TOTAL PRODUCTION

CERTIFICATION

TOTAL EMPLOYEES

Scholarship programme for children of workers Bus service for workers Performance bonuses

GOTS

Oekotex

36% WOMEN 64% MEN

OCS

Training on health, fire safety, environmental and social issues Childcare Medical services Provision of factory uniforms

GRS

PRODUCT RANGE

Knitted garments:

FWF AUDIT

Rajendrapur, Sreepur, Gazipur-1740, Bangladesh

Third FWF Audit

Seconf FWF Audit

First FWF Audit

S003 Dird unit S003 Dird unit

To be confirmed

27 & 28 May, 2017

8 & 9 Aug, 2012

To be confirmed

27 & 28 May, 2017

8 & 9 Aug, 2012

Sustainability Report 2020

01

Inside our factories

Mohammad Shahin Alam, one of our most efficient sewing operators

<

Dird factory, Bangladesh – 2020

Mohammad has beenworking at Dird for sevenyears now. He is one of the most efficient sewing ope- rators working for Stanley/Stella at the factory. We were able tomeet with himduring a factoryvisit with the BLO team in February.

Stanley/Stella’s dedicated sewing line

>

Dird factory, Bangladesh – 2020

Stanley/Stella’s dedicated sewing line at Dird facto- ry.We have nine staffmembers fromour Bangladesh Liaison Officewho visit our factories every day. They not onlymonitor production but also make sure that CSR measures and safety regulations are followed and respected.

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Sustainability Report 2020

INTERSTOFF

21% 4,700

OF OUR TOTAL PRODUCTION

CERTIFICATION

NOTABLE ACHIEVEMENTS FOR 2019

TOTAL EMPLOYEES

Training to promote career progression for women Awareness-raising project around issues of health and personal hygiene Supervisor well-being programme Scholarship programme for children of workers

GOTS

OEKO-TEX

47% WOMEN 53% MEN

OCS

Donations to local schools Worker health insurance Coalition dealing with anti-harassment and investigation procedures Helper to Operator training scheme Vaccination programme Employment of trainees from the Centre for the Rehabilitation of the Paralysed

PRODUCT RANGE

Knitted garments:

FWF AUDIT

Chandar, Kaliakoir Gazipur-1740, Bangladesh

7 & 8 Nov, 2015

S014 Interstoff

8 & 9 Dec, 2018

To be confirmed

Inside our factories

MEGHNA

NOTABLE ACHIEVEMENTS FOR 2019

10.1% 2,850

OF OUR TOTAL PRODUCTION

CERTIFICATION

TOTAL EMPLOYEES

GOTS

Awareness-raising project around issues of health and personal hygiene Training to promote career progression for women Mother @work programme to support newmothers and pregnant women Vocation training for young people Skills training for newworkers Fair-priced Grocery Shop Return toWork scheme, helping injured workers Supervisors Behavioral Training Program Donation of machines to the Centre for the Rehabili- tation of the Paralysed

OEKO-TEX

40% WOMEN 60% MEN

OCS

PRODUCT RANGE

Knitted garments:

FWF AUDIT

Gilarchala, Shreepur,Gazipur-1740, Bangladesh

29 & 30 Sep, 2018

S021 Meghna

To be confirmed

To be confirmed

Sustainability Report 2020

AUS BANGLA JUTEX

2.6% 270

OF OUR TOTAL PRODUCTION

CERTIFICATION

NOTABLE ACHIEVEMENTS FOR 2019

TOTAL EMPLOYEES

Election of Workers' Participation Committee Training on health & safety PPE training and the environment

GRS

76% WOMEN 24% MEN

PRODUCT RANGE

Accessories:

FWF AUDIT

Gulshan South Avenue, Gulshan-1 Dhaka-1212, Bangladesh

22nd & 23rd April, 2017

S022 Aus Bangla

Not Yet Confirmed

Not Yet Confirmed

Inside our factories

SHUANGXI GARMENT CO

0.4% 400

OF OUR TOTAL PRODUCTION

CERTIFICATION

TOTAL EMPLOYEES

OEKO-TEX

80% WOMEN 20% MEN

PRODUCT RANGE

Woven garments:

Luoyang Industrial Area, Quanzhou, Fujian, China

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OUR ENVIRONMENTAL FOOTPRINT

“The earth is what we all have in common and we need to be conscious of our environmental impact.”

Matthieu Leclerq, Head of operations

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Sustainability Report 2020

At present, we cannot fully estimate the carbon foot- print of our garments. A lot of factors are involved, including which region the cotton comes from, the weight of the product, the colour of the product and which factory it is made in. We will continue to collect data from across our supply chainwith the goal of understanding and improving our environmental impact. We do have data from two of our partner factories, showing figures for energy consumption, water usage and CO2 emissions per piece. It is important to note that the consumption figures are subject to many variables based on: the metering and data acquisition procedures; calculation methodolo- gies used; respective fabric shades and garment styles manufactured by respective factories in any given time period etc. CO EMISSIONS, ENERGY WE ARE WORKING ON IMPROVING OUR CARBON FOOTPRINT 2

Energy consumption (kWh / garment piece)

0.32

Water consumption (litres / garment piece)

24.5

CO2 emissions (kg / garment piece)

0.27

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Our environmental footprint

At Stanley/Stella, we treat water as the invaluable resource that it is. By choosing only organic cotton, we ensure that a minimal amount of water is used in crop production and also that it’s not polluted by har- mful chemicals, meaning soil and fauna are protected from contamination. WE ONLY WORK WITH FACTORIES WITH EFFLUENT TREATMENT PLANTS WATER CONSUMPTION

WATER TREATMENT

All our partner factories in Bangladesh have state-of- the-art ETPs with in-house specialists and testing faci- lities. Stanley/Stella periodically monitors the treated waste water for pH, DO, BOD, COD and TDS both in the factory and government laboratories, to ensure its safety.

Waste water is treated in Effluent Treatment Plants (ETPs), large scale industrial systems that remove all toxic elements to ensure that the treated water is safe enough to be discharged back into inland surface wa- ter. The treatedwater is also reused for carwashing and gardening at the factories.

Water treatment at the fabric and dyeing stage of production is also a key concern for us. The apparel manufacturing process uses water for dyeing, washing and printing textiles, and inevitably generates wa- ter-based toxic waste, or effluent. According to legal requirements this waste water must be treated so that it can be released back into the natural environment.

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Sustainability Report 2020

An Effluent Treatment Plant

Meghna factory, Bangladesh – 2020

On a visit to our partner factoryMeghna, wewere gi- ven a tour around the Effluent Treatment Plant (ETP). We discovered how this technologically advanced plant works and how it makes water reusable at the end of the treatment procedure.

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Our environmental footprint

Our warehouse in Antwerp, one of Europe’s largest ports

Katoen Natie, Antwerp, Belgium – 2020

Our employees all get to visit our warehouse in Antwerp to better understand the complexity of warehousing, and to meet the people who work on Stanley/Stella orders. Based in one of the largest ports in Europe, Katoen Natie is state-of-the-art, very advanced on questions of sustainability and shares our vision.

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Sustainability Report 2020

TRANSPORT

KATOEN NATIE

WE WORK WITH PARTNERS WHO ACT IN A SUSTAINABLE WAY

Finished garment arrives at Antwerp port after a journey of

Based on high-level calculations, we estimate that our garments travel nearly 24,000 km to get from the cot- ton fields in India, to our factories in Bangladesh and then finally to the Port of Antwerp, the Belgian city where our stock is warehoused.

23,650 KM

WAREHOUSE

Our aim is to always work with partners who consi- der sustainability to be as important as we do. Our warehouse in Antwerp is managed by Katoen Natie (KTN) which has taken impressive measures to be as green as possible. By adjusting their infrastructure, KTN have managed to save about 7,000 tons of CO2 and are today almost fully sustainable. Among other initiatives, they use renewable energy produced by local turbines, LED lighting, and 90% of their sourced cardboard comes from fully recycled materials.

16,618 km

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Our environmental footprint

Spinning mill

Beginning of the journey Raw cotton is picked

35 km

Ginning mill

CMT factory From Chittapong port to Antwerp

Ginned cotton is shipped fromMudra port to Chittapong port

300 km

Madhya Pradesh

300 km

Gazipur

Gujarat

300 km

Mudra port

Chittapong port

5,090 km

16,618 km

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THE ROAD AHEAD

“We can’t do everything. But we can do something. And that’s what drives us. We refuse to let what we cannot do interfere with all the good we can do.”

Jean Chabert, Founder and CEO Stanley/Stella

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Cotton farmers in India in meeting with Sustainability Officers.

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Sustainability Report 2020

PATH TO SUSTAINABILITY

WE WORK WITH PARTNERS WHO ACT IN A SUSTAINABLE WAY

At Stanley/Stella we know there is no magic formula for achieving sustainability - it is a constant work in progress, based on ever-changing innovation and improvements. However, what we can do is make deliberate and considered choices in who we work with, how we work and what materials we use, to ensure respect for the people we work with and the planet we live on. Being engaged at every step of our supply chain keeps us on track, as well as having a sustainable and innovative company culture that pushes us to make a difference. With the following projects and initiatives, we are ai- ming to close the loop and guarantee a fully sustainable business from the cotton field to the finished garment. Here are just some of the exciting projects we are working on right now:

Stanley/Stella has been ranked among the top 16 leading brands in sourcing sustainable materials by the Textile Exchange. The only B2B brand to appear on the list. textileexchange.org

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The road ahead

FAIR-PRICED GROCERY SHOPS

We are currentlyworking with our partner factories to set up Fair-priced Grocery Shops (FGS) on site. By providing both practical and financial help, we are supporting factories to offer basic commodities such as rice, oil and other non-perishable daily essentials to their workers at a reduced price. The factories ma- nage the shops themselves, or bring in a third-party service provider. The discounts in the FGS create si- gnificant monetary savings for workers, helping them to increase their purchasing power and improve the overall standard of living for themselves, their families and their communities.

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Sustainability Report 2020

Raw cotton is checked for impurities

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Telangana state, India – 2019

Women in Telangana state picking through raw cotton to check for impurities, before it is sent off to the ginning mills.

Our Sustainability Officer with cotton farmers

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Telangana state, India – 2019

Sustainability Officer joins women farmers for the cotton harvest. Skilfully hand-picking fluffy white balls of organic cotton and carrying colourful textile bags around their waists, they can collect up to 100-150 kg of cotton a day.

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The road ahead

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Sustainability Report 2020

We have started collecting the offcuts of our organic fabrics from our partner factories. The aim is to use this manufacturingwaste fabric to create recycled yarn for the production of our accessories range. RECYCLING FABRIC WASTE

Send to our accessories factory

Waste from fabrication

Finished fabrics fabrication

Recycled yarn process

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The road ahead

Our organic rawmaterial sourcing complies with GOTS and/or OCS protocol and is guaranteed by tra- ceability certifications. But we want to take this even further and get closer to having end-to-end visibility on our full supply chain, from thousands of local Indian cotton farmers to the final product. We are currently identifying and tracing all the farmers, ginners, spin- ners and composite garment manufacturers that work with us. By starting to connect the local farmers and farm groups in our supply chain, we will be better able to understand and support them, and help improve their livelihoods in the future. COTTON TRACEABILITY PROJECT

Cotton premium organic seeds used by the farmer

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Sustainability Report 2020

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The road ahead

Organic cotton farmers greeting Stanley/Stella staff

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Telangana state, India – 2019

Organic cotton farmers in Telangana state warmly greet two Stanley/Stella staff members working in the Sustainability Department, with big smiles and garlands of flowers.

Our Sustainability Officers join farmers for the cotton harvest during a Stanley/Stella cotton traceability trip

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Telangana state, India – 2019

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Sustainability Report 2020

We produce blank apparel andwork with an exclusive network of Official Dealers who transform our gar- ments using various decoration techniques, including screen printing. Once decorated, the garments are destined for merchandising, events and retail brands. Wework closelywith our Official Dealers to encourage and train them to implement GOTS-certified printing techniques, using non-harmful inks and sustainable production methods. By ensuring the sustainability of not only our garments, but also their decoration, we hope to further positively impact our supply chain and offer a fully sustainable product. GOTS CERTIFIED PRINTING

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The road ahead

We strive every day to have a sustainable mindset and apply this to our workplace and our everyday lives.We have set up a Sustainability Taskforce to look at initia- tives that can help reduce our environmental footprint. For example, we source office snacks from local sup- pliers and provide all our teams with reusable water bottles to avoid plastic waste. We recently launched an initiative to co-fund electric bikes for our HQ staff to reduce reliance on cars and public transport for get- ting to work. We also regularly donate extra samples to local charities. Little by little, each of us can make a difference. STANLEY/STELLA HQ

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Sustainability Report 2020

HQ Staff visiting Dird factory with BLO team

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Bangladesh Liaison Office, Dhaka – 2020

At Stanley/Stella we believe that transparency and cooperation is integral to any sustainability work. That’s why all staff members get to travel to Bangla- desh at least once, to see the production process for themselves. Small groups of about five get to spend three days in and around Dhaka, visiting a cotton re- search centre, a ginning mill and one of our partner factories, as well as connectingwith colleagues from the Liaison Office. Everyone returns changed and with a greater appreciation of how our garments are made.

Electric bikes leased by Stanley/Stella

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Stanley/Stella HQ, Brussels, Belgium – 2020

We are not just sustainable in our sourcing practices and through our partner factories’ social measures. We also find ways to be sustainable in our daily lives at HQ. Thanks to our new ‘green mobility initiative’, we lease electric bikes for our staff and can therefore lower our carbon footprint.

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The road ahead

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Sustainability Report 2020

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Conclusion

We thank you for your loyalty, and for believing that the textile industry can act in a responsible way that puts people and the planet first. We don’t need to tell you more about why we are ful ly committed to organic cotton, sustainabi l ity, and trans- parency because we know you feel the same as us. We thank you for being alongside us on our journey with your support, enthusiasm and ideas. If you'd like to find out more about our path to sustainability or get more involved:

PLEASE CONTACT US

stanleystella.com @wearestanleystella info@stanleystella.com

Created by libertetstudio from the Noun Project

Created by Mas Dhimas from the Noun Project

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Contributors: Sustainability Manager: Bruno Van Sieleghem

Sustainability Officer: Veronika Szalai Communication Officer: Lucie Slypen Copywriter: Charlotta Odlind Country Manager, Stanley/Stella BLO: Abdulla Al Rumi Sustainability Officer Dhaka: Nehal Sharif Illustration: Benjamin Valla Graphic Design: Benjamin Valla Printed at: ADM imprimerie contemporaine 44, rue Eugène Carrière 75018 – Paris. On FABRIANO 100% COTTON TRADIZIONE 300 g/m2 Blanc & Offset blanc 140 g/m2 Extra white Arcoprint.

Copyright © Stanley & Stella SA - All Rights Reserved R.E.: Stanley/Stella - Boulevard Louis Schmidt 3/2 - 1040 Brussels - Belgium. Sustainability Report 2020

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