Stanley/Stella - Sustainability Report 2021 - ENGLISH

OUR PATH TO SUSTAINABILITY

THE COVER PAPER IS MADE ENTIRELY FROM TEXTILE SCRAPS

Our Path to Sustainability

SUSTAINABLE SOURCING

OUR CERTIFICATIONS

RESPONSIBLE PRODUCTION

We only use 100% organic cotton, as well as other sustainable or recycled materials.

Our supply chain is monitored and certified by some of the world's leading bodies.

We are committing to pay the workers in our CMT factories a living wage by 2025.

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

p.09 p.11 p.13 p.17 p.21 p.25 p.28

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

p.31 p.31 p.32 p.32 p.32

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

p.35 p.37 p.39 p.41

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Contents

INSIDE OUR FACTORIES We are completely transparent about who we work with and monitor conditions daily.

OUR ENVIRONMENTAL FOOTPRINT

THE ROAD AHEAD

We are committing to be climate-neutral by 2030.

We keep pushing for new sustainability initiatives.

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

p.45 p.46 p.47 p.49 p.50 p.53 p.54 p.55 p.56 p.57

Carbon neutral by 2030 Water consumption Transport Warehousing

p.61 p.62 p.65 p.65

Path to sustainability Glossary

p.69 p.72

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01

“

We are an innovative Belgian apparel company producing premium clothing for printing and decorating. Our goal is to achieve a fully sustainable supply chain, but we realise that the road ahead of us is still long and winding. This report shows the steps we are taking to improve our supply chain and global footprint, and our commitment to making change happen. Change for a healthier planet and happier people.We have some ambitious plans for the future which we are excited to reveal: we are committing to pay the workers in our CMT factories a living wage by 2025, and to be Climate Positive by 2030...or even earlier! We like to ‘saywhat we do and dowhat we say’, as we believe that sustainability is first and foremost a question of transpa- rency. In the following pages you’ll find a summaryof ourmain achievements and the actions we’re taking on a daily basis to ensure our production is ethical, responsible and sustainable.

”

Jean Chabert, Founder and CEO Stanley/Stella

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SUSTAINABLE SOURCING

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

Tereza Ungerman, Product Development and Quality Manager

<

Organic cotton flower ready for harvest.

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Our Path to Sustainability

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

0.9%

OF THE 26 MILLION TONNES OF COTTON PRODUCED ANUALLY

Conventional cotton is mainly grown from genetically modified (GMO) seeds, and with the assistance of agricultural chemicals. CONVENTIONAL COTTON REPRESENTS 16% OF THE WORLD’S INSECTICIDES/HERBICIDES

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

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Our Path to Sustainability

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 used again and can return to the soil and other water 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). Quick Guide to Organic Cotton.

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Our Path to Sustainability

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. BETTER FOR PEOPLE ORGANIC CULTIVATION PROTECTS THE WELL-BEING OF FARMERS AND THEIR COMMUNITIES

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Sustainable sourcing

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Our Path to Sustainability

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

Premium organic cotton seeds used by farmers.

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Sustainable sourcing

Raw cotton is checked for impurities

>

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.

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Our Path to Sustainability

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,ouraimistohaveapositive impactonsociety, 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

India - Ginning mill

Bangladesh - Spinning mill: Yarn manufacturing

Cotton lint only represents around 32-35% of the entire cotton ball. The rest is 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

Our Quality Controllers are part of our Bangladeshi Liaison Office. They are present in all the facilities, making sure that the factories complywith social and safety regula- tions and that all stages of production are running smoothly.We have a team of more than 20 people handling our business in South Asia.

QC

Bangladesh to Brussels

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

Bangladesh - Fabric knitting

Dyeing & washing

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

Antwerp - Warehouse

Cutting & sewing

The warehouse that receives our garments is also GOTS certified.

Ironing & packing

Europe - Distribution

Knitting

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

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Our Path to Sustainability

01

Sustainable sourcing

Meeting with organic cotton farmer

<

Telangana State, India 2021

Organic cotton farmers in India use traditional fertilisers to keep the soil rich in nutrients. During harvest they can collect up to 100-150kg of cotton a day. Picture taken during a Stanley/Stella cotton traceability trip.

Cotton farmer village

>

Telangana State, India 2021

We’re currently working on tracing our supply chain, to not only pinpoint the exact origin of our organic cotton, but also to make sure our farmers get a fair price for their work. Picture taken during a Stanley/Stella cotton traceability trip.

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Our Path to Sustainability

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 and 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. FROM THE FIELD TO OUR NETWORK OF GOTS CERTIFIED DEALERS 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. https://www.global-standard.org/

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 material com- position consists of 'sustainable fibres', meaning natural or recycled fibres.)

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

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Our Path to Sustainability

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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OUR GOTS CERTIFIED NETWORK Austria GeschützteWerkstätten Germany Black Star Boender & Beutel – X-Print Dakota Fairtrademerch Laroid Openmind productions RK textil Textildruck europa Subucoola Textilhandel-cotton -n -more

Wildner Slovakia Merchyou Switzerland Many ways France TIP Beyno Main Gauche Brocéliande Belgium Fabric Alfa Shirt Netherlands Superette United Kingdom Shirtworks Get a Grip / Sustainable Supply Ltd Sweden Swagg

Our Path to Sustainability

At Stanley/Stella we use recycled polyester to add stability to our sweatshirts, strength to our accessories and sustainability to our jackets. We have been using only recycled polyester, as opposed to virgin polyes- ter, since 2018. Recycling polyester allows for considerable energy savings in the manufacturing process. It is clear that tackling plastic waste has become one of the major environmental challenges of our time - globally, about 9.5 million tons of plastic are thrown into the ocean annually, most of it single-use. RECYCLED POLYESTER WE RECYCLE TO REDUCE WASTE

The Unisex Padded Hoodie Jacket is made from approximately 20 recycled 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

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

Once cleaned, melted and purified, the plastic from the bottles is blown into yarn. This is used to create clothing fabrics which are soft, durable and breathable.

Our recycled yarn is sourcedmainly from China. We recycle what would otherwise become pollutingwaste.

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Our Path to Sustainability

RECYCLED COTTON WE RECYCLE TO REDUCE WASTE

NO DYEING !

At Stanley/Stella, our jacket range is made from recy- cled PET bottles. And we're now also embarking on a circular economic model by transforming our own organic cotton fabric cutting waste into new t-shirts and sweatshirts. Our RE-creator and RE-blaster are made from 50% recycled organic cotton taken from our own cutting waste and 50% organic virgin cotton. Stanley/Stella’s RE-range and production facilities are GRS certified (Global Recycling Standard).

The blend of 50% recycled cotton in color (black, blue, or white) and natural raw cotton produces a natural "heather" effect. Thanks to this pro- cess, we reduce the energy consumption and eliminate the dyeing process, therefore, the use of chemicals.

Finished fabrics

Waste from fabrication

Knitted in our factory

Recycled yarn process

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Sustainable sourcing

1 KG OF RECYCLED YARN SAVES WATER, PESTICIDES, DYES & CHEMICALS, ENERGY & CO 2 (Source: Cyclo from SIMCO)

20,000 litres of water

200 grams of pesticides & fertilisers

3,2 kWh of energy

50% recycled organic cotton + 50% organic virgin cotton = 100% organic cotton

11 Kgs of CO2 equivalent

2,7 kgs of dyes & chemicals

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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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Our Path to Sustainability

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. OUR CERTIFICATIONS WE ADHERE TO THE HIGHEST STANDARDS

GOTS

GRS

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.

The Global Recycle Standard (GRS) is the world’s leading standard for recycled textiles and certifies recycled materials based on environmental and social practices. https://textileexchange.org/standards/ recycled-claim-standard-global-recy- cled-standard/

https://www.global-standard.org/

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Our certifications

PETA

OEKO TEX

OCS

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.

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. https://textileexchange.org/standards/ organic-content-standard/

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.

https://www.peta.org.uk/

https://www.oeko-tex.com/en/

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RESPONSIBLE PRODUCTION

“This year, I have made it our top priority to positively impact the wages of our workers and farmers. That’s why we’re pledging to pay beyond the government’s minimumwage, and offer a living wage to all our workers in our partner factories by 2025”

Jean Chabert, Founder and CEO Stanley/Stella

<

Garment workers leaving for their lunch break in Dhaka.

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Our Path to Sustainability

PROUDLY MADE IN BANGLADESH

THE MAJORITY OF OUR TOTAL PRODUCTION TAKES PLACE IN BANGLADESH

Stanley/Stel la 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 im- proveworking conditions for the peoplewhomake our clothes but we know that there's still a lot of work to do. WE WORK WITH THE BEST FACTORIES IN BANGLADESH

including t-shirts, polo shirts, sweatshirts and bags.

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Responsible production

Stanley/Stella is committed to staying in Bangladesh, even though low wages in countries such as Ethiopia and Myanmar are enticing many brands away . This is having a serious impact on the textile industry in Bangladesh. We know that we'll make a lasting and positive impact on working conditions of the fashion industry in Bangladesh bymaintaining and developing our relationships with our partners in Dhaka . WE STAND BY BANGLADESH

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4,5

80%

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

MILLION BANGLADESHIS EMPLOYED BY THE TEXTILE INDUSTRY

OF TOTAL BANGLADESH EXPORTS ARE TEXTILES

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Our Path to Sustainability

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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Our Path to Sustainability

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

Living wage

STANLEY STELLA’S CODE OF CONDUCT

Wage increase by 50 % in December 2018

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 factoriesweworkwith. A full copy can be found on our website.

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Responsible production

> Our Sustainability Officer from our Bangladeshi Liaison Office 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. Fair Wear Foundation Members are committed to supporting trainings for workers in factories, in order to improve awareness and knowledge about their rights.

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Our Path to Sustainability

We choose to work with some of the most ethical and responsible factories in the country. Our partners not only guarantee a legal minimum wage and fun- damental legal requirements such as in-house child- care facilities, maternity leave and medical cover, but also offer additional benefits to their workers. These benefits include free transportation, performance and attendance bonuses and increasing pay scales. Positive measures factories have taken are listed below, under 'Achievements for 2020'. On our side, we invest in projects such as the Fair- priced Grocery Shops. Through experience, we have found these types of projects to be the TOWARDS A LIVING WAGE WE ARE WORKING ON CLOSING THE GAP

best way of increasing workers' spending power and improving livelihoods. Increasing the amount we pay per t-shirt does not necessarily translate to a direct wage increase for the factoryworkers, 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 50%. But we certainly won’t leave things there, and remain committed to finding new and innovative ways of paying workers a living wage.

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

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Responsible production

THE GROCERY SHOP PROJECT

We have long been researching the best way of remunerating fairly the factory workers who work with us in our partner factories. It’s a complex sub- ject that has many layers. To maintain Bangladesh’s competitive advantage in the garment industry, the government has set the minimumwage relatively low. Most garment workers do not receive a living wage, and factories are asked to respect the minimumwage in order not to create civil unrest. Indeed, this stance is supported by the BGMEA. We have therefore looked at creative solutions to sup- port workers without raising wages. In 2020, we set up Fair-Priced Grocery Shops in both Interstoff and Meghna factories.Todate, packages includingessentials suchas rice, red lentils, salt andsugar, discountedat 50%, have been distributed to more than 16,000 workers.

Interstoff has set up it's own "Stanley/Stella Corner" in its grocery shop, and has produced branded bags in-house to give to all its workers. Source: BGMEA (BGMEA,2021). About Garment Industry of Bangladesh. www.bgmea.com

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

<

Garment workers at the sewing line at Dird.

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Our Path to Sustainability

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 work with only six 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

GSM, Bangladesh, since 2020

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 overview of each of our factories.

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Our Path to Sustainability

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

We work with a team of 23 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 the BLO also visit the factories on a bi-monthly or monthly basis.

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

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Our Path to Sustainability

AHSAN

CERTIFICATION

RECENT ACHIEVEMENTS

TOTAL EMPLOYEES 3,200 30% WOMEN 70% MEN

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

OCS

PRODUCT RANGE

Knitted garments:

Chandar, Kaliakoir Gazipur-1740, Bangladesh

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Inside our factories

DIRD

RECENT ACHIEVEMENTS

CERTIFICATION

TOTAL EMPLOYEES 9,804 36% WOMEN 64% MEN

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

GOTS

Oekotex

OCS

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

GRS

PRODUCT RANGE

Training on female empowerment & development Training on environmental management systems

Knitted garments:

Rajendrapur, Sreepur, Gazipur-1740, Bangladesh

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Our Path to Sustainability

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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Our Path to Sustainability

INTERSTOFF

TOTAL EMPLOYEES 4,700 47% WOMEN 53% MEN

CERTIFICATION

RECENT ACHIEVEMENTS

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

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 Fair-priced Grocery Shop

PRODUCT RANGE

Knitted garments:

Chandar, Kaliakoir Gazipur-1740, Bangladesh

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Inside our factories

MEGHNA

CERTIFICATION

RECENT ACHIEVEMENTS

TOTAL EMPLOYEES 2,850 40% WOMEN 60% MEN

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 Vocational training for young people Skills training for newworkers Fair-priced Grocery Shop Return toWork scheme, helping injured workers Supervisors Behavioral Training Programme Donation of machines to the Centre for the Rehabili- tation of the Paralysed Health & safety committee members training

OEKO-TEX

OCS

PRODUCT RANGE

Knitted garments:

Gilarchala, Shreepur,Gazipur-1740, Bangladesh

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Our Path to Sustainability

GMS COMPOSITE KNITTING IND. LTD

TOTAL EMPLOYEES 17,245 40% WOMEN 60% MEN

CERTIFICATION

RECENT ACHIEVEMENTS

Tree Plantation program Waste Management programme Scholarship programme for workers children All the medical facilities for the workers & employees

GOTS

Oekotex

OCS

are free of cost Fair Price Shop

GRS

Women empowerment programme Opportunities for disabled people Donation of garments for people in need Training center for enhancing skills

PRODUCT RANGE

Knitted Garments

Mohakhali, Dhaka, 1206, Bangladesh

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Inside our factories

AUS BANGLA JUTEX

TOTAL EMPLOYEES

350

CERTIFICATION

RECENT ACHIEVEMENTS

76% WOMEN 24% MEN

Election of Workers' Participation Committee Training on health & safety PPE training and the environment Creation of anti-harassement committee

GRS

PRODUCT RANGE

Accessories:

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

56

Our Path to Sustainability

SHUANGXI GARMENT CO

CERTIFICATION

TOTAL EMPLOYEES

400

80% WOMEN 20% MEN

OEKO-TEX

PRODUCT RANGE

Woven garments:

Luoyang Industrial Area, Quanzhou, Fujian, China

Inside our factories

Aworker from our production line

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Dird factory, Bangladesh - 2021

Working collaborativelywith our partner factories , we have proved that we can make positive, lasting change happen.

58

OUR ENVIRONMENTAL FOOTPRINT

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

Matthieu Leclercq, Head of operations

60

Our Path to Sustainability

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. It is important to note that consumption figures are subject to many variables based on: metering and data acquisition procedures; calculation metho- dologies used; respective fabric shades and garment styles manufactured by factories in any given time period etc. Our commitment is to assess the carbon footprint of our global supply chain and to start offsetting it. We will do this through a carbon sequestration project (ie reforestation), along with community projects to help improve life conditions. CARBON NEUTRAL BY 2030 WE ARE WORKING ON IMPROVING OUR CARBON FOOTPRINT

Energy consumption (kWh / garment piece)

0.32

CO2 emissions (kg / garment piece)

0.27

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Our environmental footprint

WATER CONSUMPTION

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 harmful chemicals, meaning soil and fauna are pro- tected from contamination. WE ONLY WORK WITH FACTORIES WITH EFFLUENT TREATMENT PLANTS (ETP'S)

WATER TREATMENT

Water treatment at the fabric and dyeing stage of production is also a key concern for us. The garment manufacturing process uses water for dyeing, was- hing and printing textiles, and inevitably generates water-based toxic waste, or effluent. This wastewater must be treated per legal requirements so that it can be released back into the natural environment.

Effluent Treatment Plants (ETPs) remove all toxic ele- ments fromwastewater to ensure that it’s safe enough to be discharged back into inland surface water. The treated water is also used for car washing and garde- ning at the factories.

All our partner factories in Bangladesh have state-of- the-art ETPs with in-house specialists and testing faci- lities. To ensure the safety of the treated wastewater, Stanley/Stella tests it for pH *, DO *, BOD *, COD * and TDS * onsite and in government laboratories.

*: Please refer to the glossary p.72

62

Our Path to Sustainability

An Effluent Treatment Plant

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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.

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

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Katoen Natie, Antwerp, Belgium – 2020

Based inAntwerp, one of the largest ports in Europe, Katoen Natie is state-of-the-art. Very advanced on questions of sustainability (e.g. roofs covered with solar panels), it shares our vision.

55

Our environmental footprint

56

Our Path to Sustainability

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 our calculations, we estimate that our gar- ments travel nearly 24,000 km to get from the cotton 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 thousands of 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

Beginning of the journey: Raw cotton is picked

Spinning mill

35 km

Ginning mill

CMT factory From Gazipur to Chittagong

Ginned cotton is shipped fromMudra port to Chittapong port

300 km

Madhya Pradesh

300 km

Gazipur

Gujarat

300 km

Mudra port

Chittagong port From Chittagong port to Antwerp

5,090 km

16,618 km

66

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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Our Path to Sustainability

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 all our projects and initiatives, we are aiming to close the loop and guarantee a fully sustainable business from the cotton field to the finished garment. PATH TO SUSTAINABILITY FROM WORD TO ACTION

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

We strive every day to have a sustainable mindset and apply this to our workplace and 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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Our Path to Sustainability

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