RAW RESPONSIBILITY G-STAR RAW SUSTAINABILITY REPORT 2020

Page created by Lillian Meyer
 
CONTINUE READING
RAW RESPONSIBILITY G-STAR RAW SUSTAINABILITY REPORT 2020
RAW
                                        RESPONSIBILITY
                                          G-STAR RAW SUSTAINABILITY REPORT 2020
1
G-Star RAW Sustainability Report 2020
RAW RESPONSIBILITY G-STAR RAW SUSTAINABILITY REPORT 2020
WHAT'S INSIDE?

                                        RAW RESPONSIBILITY
                                        07 Transparency
                                        07 Risk Assessment
                                        08 In 2020...

                                                                SUSTAINABILITY
                                                                STRATEGY
                                                                10 Goals & Ambitions
                                                                11 Governance
                                                                12 Partnerships

                                        PEOPLE
                                        14 Workers' Rights
                                        16 Fair Wages
                                        16 COVID-19
                                        17 Reflection on 2020

                                                                PLANET
                                                                19 Circularity
                                                                20 Sustainable Materials
                                                                24 Climate Change
02

                                                                25 Pollution
                                                                28 Reflection on 2020

                                        PHILANTHROPY
G-Star RAW Sustainability Report 2020

                                        31 Education
                                        31 Entrepreneurship

                                                                RISK ASSESSMENT
                                                                35 Annex: Risk Assessment
                                                                36 Methodology
RAW RESPONSIBILITY G-STAR RAW SUSTAINABILITY REPORT 2020
HOW TO USE
                                        THIS REPORT

                                        This report reflects G-Star RAW’s performance                                    G-Star RAW’s Policies:
                                        on key sustainability priorities and our                                         •    G-Star Supplier Code of Conduct
                                        implementation of due diligence within our                                            - Social & Labour Guidelines
                                        value chain. Due diligence, as defined by the                                         - Environmental Guidelines
                                        Organisation for Economic Cooperation and                                        •    G-Star RAW Materials Policy & Animal
                                        Development (OECD), is the process enterprises                                        Welfare Policy
                                        should carry out to identify, prevent, mitigate                                  •    Modern Slavery Act
                                        and take accountability for actual and potential
                                        adverse impact in their value chain1.                                            All downloads can be found here.

                                        G-Star’s sustainability priorities are linked to key                             Explore our RAW Responsibility webpage to find
                                        impact areas that were assessed and analyzed                                     out more about up-to-date actions regarding our
                                        through a risk assessment that is aligned with the                               Sustainability Strategy.
                                        methodology of the OECD. The risk assessment is
                                        a key part of our due diligence process and guides
                                        us in forming and strengthening our Sustainability
                                        Strategy and priorities.
                                                                                                                             Acronyms
                                        This report focusses on the sustainability progress                                  ACT		 Action, Collaboration,
                                        made in 2020, the planned actions for 2021 and                                       		Transformation
                                        our long-term goals and ambitions for 2025 and
                                        20302. In addition to this report, the following                                     AGT		         Agreement on Sustainable
                                        documents, which outline G-Star’s policies,                                          		            Garments and Textile
                                        guidelines and actions, are also part of our
                                        (reporting on) due diligence:                                                        Higg BRM      Higg Brand & Retail Module

                                        Sustainable Supply Chain Handbook                                                    Higg FEM Higg Facility Environmental
                                        This Handbook explains our due diligence process                                     		Module
                                        that identifies (potential) risks and includes G-Star
                                        RAW’s Compliance Policy, a detailed supply chain                                     Higg FSLM Higg Facility Social & Labor
                                        explanation, our sustainability monitoring tools and                                 		Module
03

                                        process, our supplier onboarding process, and our
                                        Supplier Development Program.                                                        OECD 		 Organisation for
                                                                                                                             		      Economic Cooperation and
                                        Sustainability Milestones Overview                                                   		Development
                                        This document shows our sustainability journey
G-Star RAW Sustainability Report 2020

                                        since 2006.                                                                          SAC		         Sustainable Apparel Coalition

                                        Transparency Tools:                                                                  SLCP		 Social & Labor Convergence
                                        •     Manufacturing Map – This tool shows all direct                                 		Program
                                              suppliers with whom G-Star has a business
                                              relationship for over two years.                                               ZDHC		 Zero Discharge of Hazardous
                                        •     Fiber Ranking – This tool scales our fibers                                    		Chemicals
                                              from sustainable to not sustainable.

                                        1 Definition of due diligence as defined in the OECD Due Diligence
                                          Guidance for Responsible Business Conduct.
                                        2 Data disclosed in this report has not been verified by an external party,
                                          unless explicitly stated.
RAW RESPONSIBILITY G-STAR RAW SUSTAINABILITY REPORT 2020
LETTER FROM
                                        THE CEO

                                        In a year that was heavily marked by COVID-19, the importance of
                                        sustainability has become even more evident. These unprecedented times
                                        make us extra aware of our responsibilities. We intentionally work with
                                        a small and durable supplier base, enabling us to establish long-term
                                        relationships. We are in close contact with all of our partners to try to limit
                                        disruptions in our supply chain wherever we can.

                                        Despite the challenging circumstances we continued to push for progress
                                        on key priorities such as the use of sustainable materials and implementing
                                        circular design solutions. We were able to reach and exceed our 2020 goals
                                        of using 90% sustainably sourced materials. We also set some new ambitious
                                        goals for 2025 and 2030 focusing on increasing our use of recycled and
                                        organic materials as well as on increasing our use of Cradle to Cradle
                                        Certified™ fabrics.

                                        Additionally, we worked on a few specific transparency projects such as the
                                        renewal of our RAW Responsibility website which recently launched, and a
                                        brand new sustainability communication tool. This tool, which will launch in
                                        2021, will give consumers full insight into each fiber used in the main fabric of
                                        a G-Star garment. It will show how sustainable these fibers are, according to
                                        existing industry standards.

                                        Sustainability is an everlasting journey that requires constant innovation and
                                        collaboration throughout the entire industry. We look forward to further build
                                        on our journey this coming year.

                                        Rob Schilder
04
G-Star RAW Sustainability Report 2020
RAW RESPONSIBILITY G-STAR RAW SUSTAINABILITY REPORT 2020
G-Star RAW Sustainability Report 2020   05

RAW
RESPONSIBILITY
RAW RESPONSIBILITY G-STAR RAW SUSTAINABILITY REPORT 2020
RAW
                                        RESPONSIBILITY

                                           About G-Star RAW                                                      About RAW Responsibility
                                           Founded in 1989, G-Star RAW’s passion                                 Sustainability is key to how we operate at G-Star
                                           for denim has driven the brand to take                                RAW. It is a process of continuous improvement
                                           craftsmanship to the next level. “Hardcore                            in both the social and the environmental impact
                                           Denim” is the philosophy that pushes us to                            of our products. We have been embedding
                                           invent and explore – down to the smallest                             sustainability in the core of our business
                                           detail. With innovation and sustainability at our                     since 2006. Take a look at our Sustainability
                                           core, we are proud to present pioneering styles                       Milestones Overview to see some of the
                                           and challenge industry standards.                                     highlights throughout that ongoing journey.

                                        We find it important to take our responsibility by constantly improving the impact we have on PEOPLE
                                        and PLANET, as well as give back to the communities in the countries where we produce. That is why we
                                        divide our efforts into three pillars: PEOPLE, PLANET and PHILANTHROPY. These three pillars represent
                                        the core of our Sustainability Strategy.

                                                     PEOPLE                                                  PLANET                                      PHILANTHROPY

                                          WORKERS’          FAIR WAGES           CIRCULARITY       SUSTAINABLE          CLIMATE     POLLUTION             POSITIVE IMPACT
                                           RIGHTS                                                   MATERIALS           CHANGE
06

                                                                                                         TRANSPARENCY
G-Star RAW Sustainability Report 2020

                                                       PEOPLE                                            PLANET                             PHILANTHROPY

                                               It is our priority to achieve                    We minimize our impact on               Through the GSRD Foundation
                                             fair, safe and healthy working                     the PLANET by selecting the               we want to make a positive
                                            conditions, as well as protect the                 most sustainable materials and              and lasting impact on the
                                              human rights of the PEOPLE                       work towards circular solutions,           lives of people in countries
                                              involved in our supply chain.                    while operating and producing             where G-Star RAW produces.
                                                                                                         responsibly.                    Together with our partners we
                                                                                                                                        provide education and stimulate
                                                                                                                                           entrepreneurship through
                                                                                                                                           PHILANTHROPIC efforts,
                                                                                                                                        including training and coaching.
RAW RESPONSIBILITY G-STAR RAW SUSTAINABILITY REPORT 2020
TRANSPARENCY

                                        To deliver on our strategy, we enable external
                                        stakeholders to hold us accountable when it             Manufacturing Map
                                        comes to assessing our data-backed sustainability       Providing oversight of the supply chain
                                        performance. This includes transparent reporting.       is part of our commitment to the apparel
                                                                                                sector’s Transparency Pledge. Six years ago,
                                        Our first sustainability scorecard was developed        we made our Manufacturing Map public – so
                                        with MADE-BY in 2013, and we progressed to              anyone can trace the origin of a G-Star RAW
                                        a MODE tracker disclosure in 2015 until 2017.           product, now covering approximately 95%
                                        Since 2018 we have reported using the Higg              of our production volume (this differs per
                                        Brand and Retail ‘Beta’ Module (BRM) from the           season). In addition to the map, we publish
                                        Sustainable Apparel Coalition (SAC). This is a global   further details on our direct suppliers, their
                                        sustainability measurement performance tool in the      sub-factories, processing facilities and
                                        apparel and footwear sector. From 2020 onwards,         nominated fabric mills in our Manufacturing
                                        we use the Higg BRM to track, measure and share         List, which is available on the Open Apparel
                                        the social and environmental impact of our value        Registry, an open source tool, which maps
                                        chain. In 2021, the Higg BRM will also be verified by   garment factories worldwide.
                                        an approved third party.
                                                                                                Fiber Ranking
                                        In 2020, we produced our 2019 Sustainability Report     The G-Star RAW Fiber Ranking
                                        that met the reporting requirements of the Dutch        communication tool gives consumers full
                                        Agreement on a Sustainable Garments and Textiles        insight into each fiber used in the main fabric
                                        (AGT), of which we are a signatory, and followed        of a G-Star garment. It shows exactly how
                                        the OECD Due Diligence Guidance for Responsible         sustainable these fibers are, according to
                                        Supply Chains in the Garment and Footwear Sector.       existing industry standards. By doing so, we
                                        This report was a first step to integrate the OECD      allow consumers to decide for themselves
                                        Due Diligence Guidance and its risk assessment          whether a specific garment matches their
                                        methodology in our sustainability communication.        individual sustainability standards.

                                        Risk Assessment                                         More information regarding the Fiber
                                        Over the past year, we have reevaluated our             Ranking can be found in the chapter
                                        Sustainability Strategy and built upon the              PLANET.
07

                                        OECD risk assessment that was included in the
                                        Sustainability Report of 2019. We did this with
                                        the help of industry partners, stakeholders and
                                        external resources. We performed our social and
                                        environmental risk assessment based on the risk
G-Star RAW Sustainability Report 2020

                                        categories identified by the OECD and focused
                                        on G-Star’s main four production countries:
                                        Bangladesh, China, India and Vietnam.

                                        Our risk assessment identifies both the likelihood
                                        and the severity of potential or actual risks within
                                        our value chain. Based on all the information
                                        we collected through different resources, we
                                        determined which risks are most salient in our
                                        supply chain. This led to an updated strategic
                                        framework that focuses on the prioritized topics in
                                        our supply chain. Our complete risk assessment can
                                        be found in the Risk Assessment Annex.
IN 2020...

                                                                                           COVID-19
                                                     …we achieved a

                                            Gold Level
                                                                                           The COVID-19 pandemic is having an
                                                                                           unprecedented impact on our health and

                                         Cradle to Cradle
                                                                                           economy worldwide. Throughout this
                                                                                           pandemic, we are aware of our responsibilities.

                                           certification
                                                                                           Ever since we integrated sustainability into the
                                                                                           heart of our business in 2006, we intentionally
                                                                                           work with a small and longstanding supplier
                                          for denim products and for our                   base, enabling us to establish long-term
                                              Relz Black denim fabric                      relationships. We are in daily contact with all
                                                                                           of our partners in order to limit disruptions in
                                                                                           our supply chain wherever we can.

                                          …the Higg FSLM
                                          self-assessment       …we supported supply
                                                                chain dialogue through     While we constantly work on minimizing
                                        was completed by
                                                                                           financial, social and environmental impact,
                                        Tier 1 suppliers that
                                              represent             ACT                    we realize that these uncertain times have

                                        40%
                                                                participation              affected and will continue to affect businesses
                                                                       in two              and communities involved. We focus on
                                                                     G-Star RAW            finding collaborative solutions in which we
                                         of our production       production countries      can carry the burden of this crisis together
                                              volume                                       and hopefully secure the future of all our
                                                                                           businesses. We engage in ongoing social
                                                                                           dialogues with partners and stakeholders
                                                  …we developed the                        such as ACT to align on these collaborative

                                        Fiber Ranking
                                                                                           solutions.

                                                                                           In our COVID-19 supply chain responsibility
                                                  communication tool                       statement we further explain our purchasing
                                                                                           practices during this pandemic.
08

                                             …we used                 …we used                         …we defined our new

                                        99% 93%                                                   Sustainability
                                                                                                    Strategy
G-Star RAW Sustainability Report 2020

                                            sustainably          sustainably sourced
                                          sourced cotton              materials                 with goals towards 2025 and 2030

                                                                                                                     …our DETOX program
                                           …the Higg verified FEM assessment was                                      covered 75% of our
                                                                                           …we published our
                                           completed by Tier 1 and 2 suppliers that
                                                                                          COVID-19
                                                                                                                       annual production
                                        represents 66% of our production volume and                                   volume, and we saw
                                                 they scored an average of

                                               67.7/100
                                                                                         statement
                                                                                         about our supply chain     90.4% compliance
G-Star RAW Sustainability Report 2020   09

SUSTAINABILITY
STRATEGY
SUSTAINABILITY
                                        STRATEGY

                                        Our long-term focus towards RAW Responsibility               collection. Working with different industry partners
                                        includes key sustainability priorities specified             and tools such as the Higg Index of the SAC and
                                        in goals for 2025 and long-term ambitions for                the programs of Zero Discharge of Hazardous
                                        2030. These are commitments built on many                    Chemicals (ZDHC) with our suppliers has ensured
                                        foundations, such as our risk assessments covering           that we can measure and track impact, and scale
                                        the different phases of our value chain and the              across our value chain. This Sustainability Report
                                        increased use of sustainable materials in our                reflects our annual progress and achievements.

                                        Goals & Ambitions

                                         People                   Priority                                            Goal 2025

                                        Workers’ Rights           Elevate and improve fair, safe and healthy
                                                                  working conditions in G-Star RAW supply chain.
                                                                                                                      Improve current complaint systems towards
                                                                                                                      global independency and confidentiality to
                                                                                                                      strengthen workers’ voices in G-Star RAW
                                        Fair Wages                Collaborate industry wide through “ACT on           supply chain.
                                                                  living wages”, to define the roadmap towards a
                                                                  fair wage framework.                                Work towards an industry wide agreement
                                                                                                                      on regional living wages and support
                                                                  Train responsible G-Star teams and suppliers        implementation in G-Star RAW production
                                                                  on: timely planning & forecasting, defining labor   countries.
                                                                  costing within purchasing prices and discussing
                                                                  fair terms of payment.

                                         Planet                   Priority                                            Goal 2025 / 2030

                                        Circularity               Increase the use of Cradle to Cradle Certified™
                                                                  fabrics in G-Star RAW collection.
                                                                                                                      In 2025, 20% of our collection is made with
                                                                                                                      Cradle to Cradle Certified™ fabrics.

                                        Sustainable               Define roadmap to achieve sustainable               In 2025, 75% of our collection will be made
                                                                  materials goals.                                    of recycled and/or organic/bio-based/
                                        Materials                                                                     compostable materials.

                                                                                                                      In 2030, 100% of our collection will be made
10

                                                                                                                      of recycled and/or organic/bio-based/
                                                                                                                      compostable materials.

                                        Climate Change            Define roadmap to achieve climate goals.            Reduce 15% of GHG emissions by 2025.
                                                                                                                      Reduce 30% of GHG emissions by 2030.

                                        Pollution                 Ensure the ban of hazardous chemicals in            Phase out all unsustainable chemical
                                                                  G-Star RAW supply chain.                            applications in G-Star RAW products in 2030.
G-Star RAW Sustainability Report 2020

                                         Transparency             Priority                                            Goal 2030

                                                                  Report on our sustainability performance            Offer full transparency through on-product
                                                                  through a verified industry benchmark (Higg         sustainability ranking, including environmental
                                                                  Brand & Retail Module).                             & social performance.

                                                                  Offer full transparency about the environmental
                                                                  performance of our materials for all garments
                                                                  through our fiber ranking.
SUSTAINABILITY
                                        STRATEGY
                                        CONTINUED
                                        Governance
                                                                                                      Policies
                                        Our Sustainability Department implements the
                                                                                                      At the base of our Sustainability Strategy
                                        Sustainability Strategy within and beyond our
                                                                                                      we have multiple policy documents to
                                        own operations. The team specializes in social and
                                                                                                      uphold our RAW Responsibility. We
                                        environmental sustainability across the supply
                                                                                                      developed the G-Star RAW Supplier Code
                                        chain and has a presence across the Netherlands
                                                                                                      of Conduct representing all standards on
                                        and in Asia. It is their responsibility to define
                                                                                                      Social and Environmental and Safety and
                                        and implement the Sustainability Strategy by
                                                                                                      Health (S&ESH) regulations, to ensure that
                                        integrating the sustainability work throughout our
                                                                                                      G-Star products are made under fair and
                                        own organization.
                                                                                                      safe circumstances. Additional to our Code
                                                                                                      of Conduct, we also have Social & Labour
                                        The departments that help manifest our
                                                                                                      Guidelines and Environmental Guidelines.
                                        Sustainability Strategy include Design, Product
                                                                                                      An overview of all policy document can be
                                        Development, Merchandise, Purchasing & Pricing,
                                                                                                      found here.
                                        Quality Assurance, Sourcing, Logistics, Marketing,
                                        and Communications. Our overall Sustainability                We continuously monitor and collaborate
                                        Strategy is translated into team- and individual              with our suppliers and external industry
                                        goals across these departments, ensuring joint                experts, to uphold these standards and
                                        efforts on achieving our goals. Below image                   improve where needed. How we do that is
                                        demonstrates how we deliver on our Sustainability             explained in our Sustainable Supply Chain
                                        Strategy together.                                            Handbook.

                                        Governance overview

                                                                                          Sustainability
                                                                                           Department

                                                                                    defines and implements our
11

                                                                                     Sustainability Strategy

                                                    Design                                Transparency              support              Marketing

                                                                   are committed
                                              Poduct Development      to goals         Sustainable Materials                          Communication
G-Star RAW Sustainability Report 2020

                                                                     related to

                                                 Merchandise                                Circularity
                                                                                                                                         Logistics
                                                                                                                  contribute to
                                                                                         Climate Change            achieving
                                                                                                                 goals related to
                                                                    uses the Higg                                                          Retail
                                                                     Index tools
                                                   Sourcing          to analyse              Pollution
                                                                       supplier
                                                                   performance on
                                                                                                                   collaborate
                                                                                         Workers’ Rights                            Purchasing & Pricing
                                                                                                                    closely on

                                                                                            Fair Wages                               Quality Assurance

                                                                                        are contributing to
PARTNERSHIPS

                                        G-Star RAW collaborates with many partners                    The overview below shows how these partners
                                        and stakeholders to work on our Sustainability                and stakeholders are involved on a strategic
                                        Strategy and help define our goals.                           level.

                                        Partnerships overview

                                                                     Organisation for Economic Cooperation and Development

                                                                                               is based on

                                                                         Agreement on Sustainable Garments & Textile

                                                                                             is a signatory of

                                                                                                                             works on          Better Cotton Initiative
                                                                                                                            Sustainable
                                                                                                                             Materials
                                                                                                                               with               Textile Exchange

                                                                    works on
                                                  ACT            Fair Wages with
                                                                                                                            works on             Cradle to Cradle
                                                                                                                            Circularity     Products innovation Institute
                                              Social & Labor                                                                   with
                                                                   works on                    G-Star RAW
                                           Convergence Program
                                                                 Workers’ Rights                                             works on
                                                                     with                                                    Climate            UN Fashion Charter
                                                                                                                             Change
                                                ACCORD                                                                         with
12

                                                                                                                                                 Zero Discharge of
                                                                                                                                                Hazardous Chemicals
                                                                                                                            works on
                                                                                                                           Pollution with
                                                                                                                                              Plastic Soup Foundation
                                                                                   monitors and reports with the help of
G-Star RAW Sustainability Report 2020

                                                                                      Sustainable Apparel Coalition

                                                                                            Higg Index Tools
G-Star RAW Sustainability Report 2020   13

PEOPLE
PEOPLE

                                        When it comes to the PEOPLE in our supply                                      Social framework for supplier development
                                        chain, our key focus is on achieving fair, safe and                            Our social framework includes supplier
                                        healthy working conditions, as well as protecting                              development tools to support direct suppliers
                                        human rights. We engage in key industry                                        consistently to apply high labor standards, based
                                        partnerships and make use of tools such as the                                 on our Supplier Code of Conduct. This framework
                                        Higg Index Facility Social & Labor Module (Higg                                consists of supplier trainings, the use of the Social
                                        FSLM) to monitor working conditions. We have                                   and Labor Convergence Program (SLCP), the
                                        a clear understanding of the social risks in our                               Higg FSLM, and the development of a complaint
                                        supply chain and in 2020 we updated our risk                                   system.
                                        assessment following the guidance of OECD3.
                                        Within our supply chain we focus on our Workers’                               Social and Labor Convergence Program (SLCP)
                                        Rights and Fair Wages programs.                                                G-Star RAW has been a signatory of SLCP since
                                                                                                                       2016. The mission of this project is to develop a
                                        Workers’ Rights                                                                common assessment framework – the Converged
                                        To improve fair, safe and healthy working                                      Assessment Framework (CAF) – to measure
                                        conditions in our supply chain, we work closely                                continuous improvement in working conditions
                                        with our suppliers and have built trustworthy and                              and therefore increase the opportunity for
                                        long-term relationships with them. We deliberately                             transparency. According to SLCP, almost two
                                        work with a small and durable supply chain to                                  thirds of social audits in the apparel sector are
                                        ensure continuity in our sustainable initiatives. Our                          duplicates. By working together and sharing data,
                                        Manufacturing Map shows the suppliers we work                                  we can accelerate positive change in workers’
                                        with for over two years and offers background                                  rights. In 2019, the SLCP relaunched and scaled
                                        information for each of them.                                                  the CAF to be rolled-out in 12 countries.

                                        Although human rights are protected by various                                 G-Star also started to implement the CAF into
                                        national and international laws, they can be                                   our supply chain in 2019 starting in China and
                                        restricted in certain situations. We strive for all                            India. This replaced our own internal assessment
                                        workers across our supply chain to have these                                  as well as our request for other third-party audit
                                        rights respected. The United Nations Universal                                 standards. Meanwhile the list of SLCP-operational
                                        Declaration of Human Rights sets out these rights                              countries is growing and a total of 1000
                                        as a common standard of achievements for all                                   completed assessments was reached in August
14

                                        peoples and all nations. We used these and other                               2020.
                                        related resources as the basis for our Supplier
                                        Code of Conduct and our practices.
G-Star RAW Sustainability Report 2020

                                        3 The OECD Due Diligence Guidance for Responsible Supply Chains in
                                          the Garment and Footwear Sector has helped us to conduct an in-depth
                                          risk assessment to address and prioritize the social and environmental
                                          risks in our supply chain. Based on this prioritization we are focusing on
                                          our selected program topics. Check the Risk Assessment Annex for more
                                          information.
PEOPLE
                                        CONTINUED

                                        Higg Facility Social & Labor Module (FSLM)
                                        We apply the Higg FSLM – the content of which            In the Higg FSLM the following topics are
                                        is directly informed by the work of SLCP – as a          assessed:
                                        measuring and performance improvement tool               •   Recruitment and Hiring
                                        for our supply chain partners. This information is       •   Working Hours
                                        collected with a self-assessed methodology and           •   Wages and Benefits
                                        verified through an accredited third party. In our       •   Employee Treatment
                                        Sustainable Supply Chain Handbook we explain             •   Employee Involvement
                                        how the information from the Higg FSLM is                •   Health & Safety
                                        analyzed and used to monitor our suppliers.              •   Termination
                                                                                                 •   Managements Systems
                                        In 2019, we started with the implementation of           •   Empowering People and Communities
                                        the Higg FSLM in our supply chain. We focused
                                        on the Higg FSLM self-assessment and requested
                                        suppliers to complete the module to better             Social Dialogue & Factory Complaints System
                                        understand the system. At the end of the year,         In 2019 and 2020 we focused on training our
                                        almost 70% of our Tier 1 Cut-Make-Trim suppliers       suppliers about the concept of a social dialogue
                                        completed the Higg FSLM self-assessment.               and how this could benefit them. During these
                                                                                               trainings we also informed and gave guidance
                                        Next, we set targets to measure the                    on key improvement points for their workers’
                                        implementation and promote the use of the              committee and factory complaint system, aiming
                                        Higg FSLM. To be able to continuously measure          to increase functionality and effectiveness.
                                        comparable data, we decided to change the              Next, we will participate in a cooperation program
                                        way we look at the Higg FSLM adoption of our           on industry level that provides an independent
                                        suppliers and align the methodology with our           complaint system in one of our key production
                                        Higg FEM performance measurement. Instead of           countries. The goal of this program is to enhance
                                        measuring the amount of suppliers who adopted          access to remedy for garment workers and to
                                        the Higg FSLM, we now measure the adoption             collaboratively work on and learn about the
                                        performance based on production volume.                remediation processes.
                                        In 2020, the Higg FSLM self-assessment was
                                        completed by Tier 1 suppliers that represent 40%       AGT Complaints and Disputes Committee
15

                                        of our production volume. Suppliers who also           As part of our signatory to the AGT, we
                                        proceeded with verification represent around 27%       participate in an independent Complaints and
                                        of our production volume.                              Disputes Committee that allows for organizations
                                                                                               and individuals to submit complaints or disputes.
                                        This year, we plan to further engage our suppliers,    The AGT then tries to mitigate the problem with
G-Star RAW Sustainability Report 2020

                                        through various communication channels such as         the help of its signatories (you can find more
                                        annual supplier sustainability webinars, to increase   information here).
                                        the use of the Higg FSLM. This means we can
                                        work towards comparable data sets throughout
                                        our supply chain as well as reducing audit fatigue.
                                        We aim to adopt the Higg FSLM self-assessment
                                        at Tier 1 suppliers that represent 80% of G-Star
                                        RAW production volume and the Higg verified
                                        FSLM at Tier 1 suppliers that represent 40% of
                                        G-Star RAW production volume by the end of
                                        2021. Next year we will also start publishing our
                                        average supplier’s scores per Higg FSLM topic (as
                                        mentioned above) to show in-depth progress.
PEOPLE
                                        CONTINUED

                                        Fair Wages                                             The purpose of these surveys is to analyze our
                                        Based on our risk assessment, one of the               purchasing practices from our own perspective
                                        most important steps to improve fair working           as well as from our suppliers’ perspectives.
                                        conditions is through Fair Wages. Although a           Questions in this survey are related to key topics
                                        minimum wage is the lowest wage permitted              such as sourcing practices, forecasting and
                                        by law in any given country, this doesn’t always       capacity planning, price negotiation, changes to
                                        suffice for a normal standard of living. That is why   order, re-orders and sampling. We will organize
                                        we joined ACT on Living Wages in 2019.                 training sessions for our internal teams based on
                                                                                               any identified knowledge gaps in key purchasing
                                        ACT on Living Wages                                    practices topics.
                                        ACT is a ground-breaking agreement between 22
                                        global brands and retailers and the IndustriALL        COVID-19
                                        Global Union, a global trade union fighting for        The impact of COVID-19 unprecedentedly
                                        better working conditions and trade union rights       disrupted supply chains all over the world,
                                        around the world. It aims to achieve a living          including ours. During the pandemic we focused
                                        wage for all textile workers through collective        our supply chain work on finding collaborative
                                        bargaining at an industry level. By joining, we        solutions and maintaining a continued dialogue
                                        have committed to purchasing practices with our        with our suppliers. Our work in 2020 shifted to
                                        suppliers that will ensure fair terms of payment,      key impacted risks areas due to the disruption. We
                                        full coverage of wage increases, better forecasting    requested our suppliers to update us monthly on
                                        and planning, training and responsible exit            the payment of employee wages, their employee
                                        strategies. With sector common indicators, the         turnover (including lay-offs) and health & safety
                                        ACT accountability and monitoring framework            protocols. We provided training materials focused
                                        will help us measure progress towards more equal       on safety measures for workers, based on the
                                        supplier partnerships.                                 World Health Organization guidelines.

                                        Purchasing practices                                   The ongoing impact of COVID-19 stressed the
                                        Purchasing practices are an important part of          necessity for social dialogue in supply chains. This
                                        interaction between brands and their suppliers.        is also a key element of our Global Purchasing
                                        The way that we buy from and work with our             Practices Commitment to ACT. The ACT dialogue
                                        suppliers can have an impact on the working            platforms that have been built in regard to
16

                                        conditions at their factories. Therefore, we work      this commitment served as a foundation of
                                        on improving our purchasing practices through          communication during this crisis. As a result of
                                        improving our planning and forecasting as much         the dialogue between suppliers, trade unions
                                        as possible with the help of ACT.                      and ACT brands, G-Star RAW committed to
                                                                                               communicating any possible projections on the
G-Star RAW Sustainability Report 2020

                                        In 2021 we will roll out the ACT Purchasing            overall business and stock situation as well as
                                        Practices Self-Assessment (PPSA) Survey within         taking responsibility in cases in which a supplier
                                        our company as well as the Purchasing Practices        has incurred a fabric liability as a direct result of
                                        Assessment (PPA) Survey for our suppliers.             order amendments.
REFLECTION
                                        ON 2020

                                         Strategic Topic   2019 Achievements                2020 Highlights & Progress        2021 Actions & Goals

                                        Workers’ Rights    Almost 70% of tier 1 cut-make-
                                                           trim factories completed the
                                                                                            The Higg FSLM self-
                                                                                            assessment was completed by
                                                                                                                              Adopt Higg FSLM at Tier 1
                                                                                                                              suppliers that represent 80%
                                                           Higg Facility Social & Labor     Tier 1 suppliers that represent   of G-Star RAW production
                                                           Module (Higg FSLM) self-         40% of our production             volume.
                                                           assessment.                      volume. Suppliers who also
                                                                                            proceeded with verification       Adopt Higg verified Higg
                                                           18 direct suppliers were         represent around 27% of our       FSLM at Tier 1 suppliers that
                                                           trained in social dialogue,      production volume                 represent 40% of G-Star RAW
                                                           grievances and worker                                              production volume.
                                                           committees.                      Continued our training
                                                                                            program (on social dialogue,      Train & engage suppliers
                                                           Conducted country-level          grievances and worker             on G-Star RAW social
                                                           assessments to understand        committees) which launched        requirements.
                                                           specific risk exposures.         in 2019 at our suppliers in
                                                                                            Vietnam and Mauritius             Set up an independent
                                                                                            (pre-COVID).                      complaint system in Tier 1
                                                                                                                              factories in India.
                                                                                            Industry engagement on
                                                                                            complaint handling at
                                                                                            suppliers.

                                                                                            Built upon the country-level
                                                                                            risk assessments to include
                                                                                            supply chain specific risk
                                                                                            exposures.

                                        Fair Wages         Joined ACT to support living
                                                           wages through collective
                                                                                            Product Development team
                                                                                            members attended living
                                                                                                                              Start with implementing a tool
                                                                                                                              to monitor wage gap data of
                                                           bargaining.                      wage training of AGT.             our Tier 1 suppliers.

                                                           Utilized Better Buying           Supply chain social dialogue      Roll out ACT Purchasing
                                                           initiative research to improve   through ACT participation         Practices Self-Assessment
                                                           our purchasing practices.        in G-Star RAW production          (PPSA) survey within
                                                                                            countries (Bangladesh and         company and Purchasing
                                                                                            Turkey).                          Practices Assessment (PPA)
                                                                                                                              survey for suppliers.
                                                                                            Incorporated Responsible
                                                                                            Exit strategy as part of          Train internal teams on key
                                                                                            ACT Purchasing Practices          purchasing practices topics
                                                                                            Commitments.                      (including knowledge gaps
17

                                                                                                                              identified from surveys).
                                                                                            COVID-19
                                                                                            Published our COVID-19
                                                                                            Supply Chain Responsibility
                                                                                            statement to explain our
                                                                                            purchasing practices during
                                                                                            the pandemic.
G-Star RAW Sustainability Report 2020
G-Star RAW Sustainability Report 2020   18

PLANET
PLANET

                                        G-Star RAW takes responsibility for any potential      Clean chemistry
                                        environmental impact on our PLANET across all          Over the past years we have collaborated with
                                        stages of our value chain. We consider everything      many partners to innovate new technologies for
                                        from the choice of raw materials and fibers to         sustainable (indigo) dyeing. Read more about
                                        responsible fabric and garment production and          them here. By increasing our use of Cradle to
                                        logistics, from our own operations, all the way        Cradle Certified™ fabrics, as well as specific
                                        through to consumer care and end-of-life of            sustainable dyes, such as Archroma’s EarthColours
                                        the product. We have a clear understanding of          and Recycrom™, we continue to increase our use
                                        the environmental risks and run programs on            of clean chemistry.
                                        Circularity, Sustainable Materials, Climate Change
                                        and Pollution.                                         Packaging
                                                                                               Packaging is an inevitable and important part
                                        Circularity                                            of shipping products from one place to another
                                        If we want to be here as a denim brand in the          without damaging them. However, packaging
                                        future, we need to design in “closed loops” today.     often requires plastics. In 2019, G-Star looked
                                        By this, we mean using only sustainable materials,     into the opportunities to reduce the amount of
                                        clean chemistry and ensuring that garments are         (virgin) plastics in our packaging from business to
                                        designed for reuse.                                    business, as well as from business to consumer. In
                                                                                               2020, we started testing if we could swap virgin
                                        Sustainable materials: Cradle to Cradle                plastic polybags with polybags made from 100%
                                        Certified™ innovations                                 recycled post-consumer polyethylene (PE).
                                        The Cradle to Cradle Products Innovation
                                        Institute helps us to design in closed loops. Their    In 2021, we will scale the use of 100% recycled
                                        certification process is the only in the world de-     PE polybags. We expect that by the end of 2021
                                        signed for a circular product economy. It is the       90% to 95% of our garments will be packed with
                                        most rigorous because it requires unparalleled         these recycled polybags. We are also currently
                                        levels of transparency across the supply chain.        investigating unpacking our products before
                                        Read more about our Cradle to Cradle Certified™        we send them to our consumers, to ensure
                                        journey here.                                          responsible plastic recycling. We would then
                                                                                               replace the plastic packaging from warehouse to
                                        In 2018 we presented the world’s first Cradle to       customer with paper-based bags.
19

                                        Cradle Gold Certified™ denim fabric. Next, we
                                        launched a product range where the certification       Wear and Care responsibility
                                        went beyond the fabric. Here, the full product,        Sustainability starts with the fabrics we choose
                                        including buttons, yarn, dyes and labels was           to minimize our impact. It continues all the
                                        Cradle to Cradle Gold Certified™. This resulted in a   way through manufacturing and transportation
G-Star RAW Sustainability Report 2020

                                        100% recyclable product.                               to our stores, but it does not stop there. The
                                                                                               environmental impact of our products continues
                                        By constantly expanding on these innovations,          throughout the entire lifecycle of a garment.
                                        we are further increasing the use of these circular    Besides informing our consumers on how to wear
                                        fabrics throughout our collection. Right now, 5.2%     and care for their G-Star garments responsibly,
                                        of our products is made with Cradle to Cradle          accelerating post-consumer circular solutions is a
                                        Certified™ fabrics. In 2025, we aim to include         key priority for G-Star.
                                        Cradle to Cradle Certified™ fabrics in 20% of
                                        our collections. While scaling and accelerating        In 2018 we tested a product takeback service in
                                        the implementation of these fabrics, we replace        our mono-brand stores in The Netherlands and
                                        existing fabrics with Cradle to Cradle Certified™      Belgium. The concept focused on giving old
                                        fabrics. This means that we can only achieve this      G-Star RAW jeans a second life. We are aiming to
                                        goal by actively involving our suppliers.              re-initiate this initiative in 2021. Currently, we are
PLANET
                                        CONTINUED

                                        looking into several options to give the collected   Beyond cotton
                                        jeans a new life by exploring a Denim-to-Denim       The remaining 20% of our raw materials includes
                                        upcycling program, as well as finding other          50% polyester and 50% other materials. We are now
                                        appropriate recycling solutions.                     using 93% sustainable materials. Some examples
                                                                                             of the non-cotton sustainable materials we use
                                                                                             include Lycra®T400® EcoMade, Roica(TM) V550,
                                        Sustainable Materials                                Lenzing® EcoVero Viscose, Lycra® 166L, recycled
                                        We are committed to ensuring that all raw            elastane, recycled polyester and TENCEL™ branded
                                        materials used in our products are grown and         Lyocell fibers. We continue to investigate sustainable
                                        manufactured in a responsible way that preserves     alternatives for the remaining 7% of our materials.
                                        resources and respects human and animal rights.
                                                                                             Animal Welfare
                                        Cotton                                               Being a denim brand, the majority of our products
                                        Since we are a denim brand, about 80% of all         is made from cotton or includes cotton. About 1 to
                                        the raw materials we use consists of cotton, a       2% of our products is made from animal fibers such
                                        crop that has historically been associated with      as wool or leather. To ensure that these fibers come
                                        high water and pesticide use. Today, 99% of          from safe and ethical circumstances, we have an
                                        the cotton we use is sustainably sourced. Right      Animal Welfare policy.
                                        now, our sustainable cotton is either organic or
                                        sourced through Better Cotton Initiative (BCI).      Our goal for 2025 is that 75% of our collection will
                                        BCI exists to make global cotton production          be made with materials that are recycled and/or
                                        better for the people who produce it, better for     organic/bio-based/compostable. This means that
                                        the environment it grows in and better for the       – considering wool – we will increase the use of
                                        sector’s future. Our Materials journey and how       recycled wool and potentially organic wool. When
                                        we have achieved our goals in the past and will      it comes to virgin wool, we are currently aiming
                                        achieve in the future, is explained in the case      for RWS-certified wool on yarn level. However, we
                                        study Sustainable Materials goals.                   want to raise the bar and only source organic and/
                                                                                             or RWS-certified wool on yarn level by 2025.
                                        At this moment almost 80% of our cotton is
                                        sourced from BCI and around 20% is organic           Considering leather, G-Star aims to use more
                                        cotton. Although we believe this is a great          recycled leather and/or organic types of leather
20

                                        first step towards more sustainable cotton           (plant-based alternatives). When using virgin
                                        production, we are aiming for 75% of our             leather, we only source from members of the
                                        collection to be made from materials that are        Leather Working Group (LWG). Also the tanneries
                                        either recycled, organic, bio-based and/or           we source from are LWG-certified, which reduces
                                        compostable by 2025.                                 the negative impact on the environment.
G-Star RAW Sustainability Report 2020
PLANET
                                        CONTINUED

                                        CASE STUDY

                                        SUSTAINABLE MATERIALS GOALS                                                      By the end of 2020, 93% of all materials used
                                        G-Star’s Sustainable Materials journey started                                   for our main fabric were responsibly sourced4.
                                        back in 2010 when we launched the first Raw                                      This includes BCI cotton and organic cotton,
                                        Sustainable capsule to experiment with and                                       but also other kind of sustainable materials
                                        boost the use of sustainable materials. In this                                  such as recycled polyester, Tencel® Lyocell and
                                        capsule, we presented garments made from                                         sustainable types of elastanes.
                                        organic cotton, recycled cotton and fibers of                                    As cotton is the material we use the most,
                                        nettle plant. In 2011 we started to implement                                    we particularly focused on increasing the
                                        the use of sustainable materials in our general                                  use of more sustainable cotton over the
                                        collections which led to an increase in sustainable                              past years. While in 2015 we only used 9% of
                                        fiber usage from 1% to 10% within one year. We                                   organic cotton, today 20% of the cotton we
                                        have increased the use of sustainable fibers                                     use is organic. Right now, 79% of our cotton
                                        continuously since then.                                                         is sourced from BCI. The remaining 1% is
                                                                                                                         conventional cotton. The following figures
                                                                                                                         show how much sustainable cotton, polyester,
                                        4 Data displayed was not verified by an external party.                          elastane and viscose we use.

                                        Sustainable Materials journey
                                                                                                                                                                                        93%
                                                                                                                                                                        86%              10%
                                                                                                                                                                          8%

                                                                                                                                                         74%                             18%
                                                                                                                                                          4%             13%

                                                                                                                                                          10%
                                                                                                                                           58%
                                                                                                                                             1%
                                                                                                                                            11%
21

                                                                                                                            30%                                          65%            65%
                                                                                                                             1%                          60%
                                                                                                                             5%
                                                                                                                                            46%
                                                                            19%
G-Star RAW Sustainability Report 2020

                                                                                            14%              14%
                                              1%            10%
                                                                                                                             24%

                                            2011            2012           2013             2014            2015           2016           2017           2018          2019            2020

                                           A Ranking - Recycled or mostly recycled fibers         B Ranking - Organic, bio-based or compostable fibers   C Ranking - Better than conventional fibers

                                               “Our Product Development Team has the responsibility to choose materials that are safe for
                                             PEOPLE and PLANET. We are proud of our teamwork with our supply chain partners in reaching
                                              our 2020 Sustainable Material goals and are excited to work together on reaching new goals.”

                                                                                                        Head of Product Development
PLANET
                                        CONTINUED

                                        Materials used for G-Star RAW Products

                                                                                                                                    Recycled
                                                                                                                                    Polyester

                                                                                                                    Organic
                                                                                                       BCI           Cotton

                                                 Better Cotton (BCI)                         Organic Cotton
                                                 Recycled Polyester                          Lyocell (Tencel™) / LENZING™ ECOVERO™
                                                 Roica™ / Lycra T400 Ecomade                 Conventional Elastane
                                                 Conventional Polyester                      Conventional Viscose
                                                 Conventional Cotton                         Other

                                        Breakdown of sustainable materials

                                                                              Conventional                                                      Recycled
                                                                              Organic                                                           Polyester
                                                                              BCI                                                               Conventional
                                                                                                                                                Polyester
22
G-Star RAW Sustainability Report 2020

                                                                              Roica™/ Lycra T400                                                Lyocell (Tencel™)
                                                                              EcoMade Lycra® 166L                                               LENZING™
                                                                              Conventional                                                      ECOVERO™
                                                                              Elastane                                                          Conventional
                                                                                                                                                Viscose

                                        Even though 93% of the materials we use are                 organic, bio-based or compostable materials
                                        sustainably sourced, we aim to increase the                 and by 2030 this will apply for our full collection.
                                        sustainability level of the materials we use even           These goals are closely linked to our Fiber
                                        further. Therefore, in 2025 75% of our collection           Ranking which will help to track and display our
                                        will be made from recycled materials and/or                 progress.
PLANET
                                        CONTINUED

                                        CASE STUDY

                                        Fiber Ranking                                             Index (Higg MSI), the rigorous standards of the
                                        To guide us in our sustainable materials journey          Cradle to Cradle Products Innovation Institute,
                                        we use a Fiber Ranking that lists all the fibers we       CanopyStyle’s annual Hot Button Ranking and the
                                        use and indicates how sustainable these fibers            Preferred Material Benchmark by Textile Exchange.
                                        are, according to existing industry standards. In         The outcome is a living tool, which we will continue
                                        order to rank the fibers, we first categorized all        to update according to adapted standards and
                                        fibers we use, as well as the ones we specifically        industry debates.
                                        choose not to use. The categorization is fully
                                        determined by the environmental impact of each            Right now, we are working on translating this Fiber
                                        fiber. To guarantee the most objective and up-            Ranking into a brand new transparency feature
                                        to-date ranking tool, the categorization of the           that will live on G-Star.com. This sustainability
                                        fibers is completely based on existing industry           communication tool, that will go live within the
                                        tools and scoring mechanisms. We included the             next few months, will give full insight into each
                                        classification of the Higg Materials Sustainability       fiber used in the main fabric of a G-Star garment.

                                        Scaling our fibers from sustainable to not sustainable

                                                              B                                            D E
                                        sustainable                                                                                           not sustainable

                                         RECYCLED OR           ORGANIC, BIO-         BETTER THAN             CONVENTIONAL           DO NOT USE
                                         MOSTLY RECYCLED       BASED OR              CONVENTIONAL            FIBERS
                                         FIBERS                COMPOSTABLE           FIBERS
                                                               FIBERS
                                         Natural               Natural               Natural                 Natural                Natural
                                         Recycled cotton       Organic cotton        BCI cotton              Conventional cotton    Unethical cotton
                                                                                     Hemp
                                                                                     Linen

                                         Synthetic             Synthetic             Synthetic               Synthetic
                                         Recycled polyester    ROICA™ V550           Lycra® T400®            Virgin Polyester
                                         Recycled nylon        Lycra® 166L           EcoMade                 Virgin Nylon
23

                                         ROICA™ EF (Eco                                                      (Polyamide)
                                         Smart)                                                              Acrylic
                                                                                                             Conventional
                                                                                                             Elastane
                                                                                                             (elastomuliester)
                                                                                                             Lycra®
G-Star RAW Sustainability Report 2020

                                         Manmade               Manmade                                       Manmade
                                         TENCEL™ x REFIBRA™    Lenzing® EcoVero                              Conventional Lyocell
                                         Lyocell               Tencel® Lyocell                               Conventional
                                                               Tencel® Modal                                 Viscose/Rayon

                                         Animal                                                              Animal                 Animal
                                         Recycled Wool                                                       Conventional Wool      Fur
                                                                                                             Conventional Leather   Leather from real
                                                                                                             Conventional Alpaca    exotic animals
                                                                                                                                    Down
                                                                                                                                    Angora
                                                                                                                                    Mohair
PLANET
                                        CONTINUED

                                        Climate Change                                                       The past two years, we have carefully analyzed
                                        We focus our climate impact work on our supply                       energy consumption levels of our own operations
                                        chain and consumer engagement, while also taking                     (including offices, stores, distribution centers and
                                        steps in our own offices and stores.                                 car fleet). In collaboration with RESET Carbon
                                                                                                             Limited we analyzed the Scope 1 and 2 carbon
                                        UN Charter for Climate Impact                                        inventory based on 2016-2018 data. We now know
                                        In December 2018, a group of leading fashion                         the carbon hotspots of our own organization and
                                        brands and NGOs launched the Fashion Industry                        where to focus our actions. Emissions are broken
                                        Charter for Climate Action. The Charter’s                            down into three categories; Scope 1, Scope 2 and
                                        commitments include a reduction in greenhouse                        Scope 3, as can be seen in the figure below5.
                                        gas emissions of 30% by 2030, public reporting
                                        of emissions, and development of a common                            Scope 1 emissions are directly emitted from
                                        messaging strategy to communicate the                                our owned and controlled operations. Scope 2
                                        importance of climate action within the industry.                    emissions are coming from the generation of
                                        In July 2019, G-Star RAW signed the UN Charter                       electricity and heat and steam purchased by us.
                                        and publicly committed to addressing the topic of                    Scope 3 includes all our indirect emissions from our
                                        climate change. Read more about the start of this                    value chain activities.
                                        journey here.
                                                                                                             5 The definitions of these scopes are retrieved from the Climate Action
                                                                                                               Playbook that explains the commitment from the Fashion Industry
                                                                                                               Charter for Climate Change.

                                        Illustration is based on the Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Standard

                                                                                             GREENHOUSE GASES
24

                                                                                   SCOPE 2                   SCOPE 1
                                                                                  INDIRECT                   DIRECT

                                                                                  purchased
                                                                                  electricity,
                                                                                    steam,
                                                                                  heating & SCOPE 3                                                                 SCOPE 3
G-Star RAW Sustainability Report 2020

                                                                                    cooling INDIRECT                                                               INDIRECT
                                                                                   for own
                                                     purchased                        use                                   transportation
                                                     goods and                                                                    and
                                                      services                                                                distribution
                                                                                             leased assets   company                                              investments
                                                       capital                                                facilities
                                                       goods                                                                  processing
                                                                                               employee                         of sold
                                                                                              commuting                        products                              franchises
                                                        fuel and                                             company
                                                     energy related                           business        vehicles
                                                       activities                              travel                          use of sold                     leased assets
                                                                                                                                products        end-of-life
                                                                 transportation       waste                                                    treatment of
                                                                       and         generated in                                               sold products
                                                                   distribution     operations

                                            UPSTREAM ACTIVITIES                                   REPORTING COMPANY            DOWNSTREAM ACTIVITIES
PLANET
                                        CONTINUED

                                        Breakdown of total emissions                           Breakdown of total Scope 1 and 2 emissions
                                        from 2016 - 2018 by scope                              from 2016 - 2018 by source

                                                                                                2%
                                                                                          3%           0%
                                                                                   5%

                                                                             8%
                                                                                                                                 Purchased electricity
                                             16843                                                                               Natural gas
                                                                                                                                 Mobile fuel combustion
                                                              Scope 1
                                                                                                                                 Purchased heating
                                                              Scope 2
                                                                                                                                 Purchased cooling
                                                                                                                                 LPG

                                              2445                                                                      82%

                                                                                               inventory that allows to set a baseline. As most
                                          The key-highlights of our Scope 1 and 2              of our emissions are coming from Scope 3, we
                                          carbon footprint:                                    expect to make the biggest impact there. Once we
                                          • Electricity consumption makes up 80% of            have our footprint baseline for Scope 3, we aim to
                                            G-Star’s total scope 1 and 2 emissions             set science-based targets for all three scopes by
                                          • Almost half of our global emissions comes          2022. This will prepare us to steer our full carbon-
                                            from our HQ offices and warehouses, 		             reduction program towards a 30% reduction by
                                            based in the Netherlands                           2030.
                                          • Our stores have the highest electricity
                                            intensity                                          Pollution
                                                                                               Minimizing pollution and the environmental impact
                                                                                               of hazardous chemicals have been a major priority
25

                                        Based on this analysis G-Star RAW knows that           for us since signing the DETOX Commitment with
                                        we should prioritize efforts primarily on the          Greenpeace in 2013.
                                        electricity consumption of headquarters and
                                        the two warehouses based in The Netherlands.           ZDHC & Supplier Detox Program
                                        Furthermore, by procuring renewable energy             Through the DETOX Commitment with Greenpeace
G-Star RAW Sustainability Report 2020

                                        we could make significant steps in reducing our        we committed to ban the use of hazardous
                                        Scope 1 and 2 emissions, as well as by focusing        chemicals from our products and production
                                        on energy management guidelines for our stores.        processes in our supply chain. This followed our
                                        Specific reduction targets are planned to be set       membership to the Zero Discharge of Hazardous
                                        by 2022, when the Scope 3 baseline has been            Chemicals (ZDHC) initiative. The ZDHC member
                                        defined as well.                                       brands unite around a joint roadmap to ensure safe
                                                                                               and sustainable chemical use in the fashion industry.
                                        In 2021, we will take next steps by doing the          Moving forward, we will continue to work with the
                                        Scope 3 carbon footprint analysis to understand        tools of the ZDHC initiative, as well as applying
                                        our total carbon footprint. We will do this exercise   the Higg Facility Environmental Module (FEM)
                                        in collaboration with RESET Carbon Limited. We         standards and tools to monitor the performance in
                                        will first do a Scope 3 mapping to identify the        production and manufacturing of our garments in
                                        main emission hotspots, followed by a Scope 3          our so-called Supplier DETOX Program.
PLANET
                                        CONTINUED

                                        Higg Facility Environmental Module (FEM)                                     environmental impacts, especially regarding
                                        The Higg FEM allows manufacturing factories                                  average chemical management scores. These
                                        to measure their environmental performance,                                  scores represent 66% of our production volume.
                                        benchmark their results against peers, and identify                          To improve the environmental performance in
                                        areas to make meaningful improvements. The                                   G-Star’s supply chain, we will continue to disclose
                                        Higg FEM guides factories through a step-wise                                the Higg FEM performance of our suppliers. In
                                        approach to environmental management.                                        2021 we aim to publish the Higg FEM verified
                                        The following graph shows that, compared to                                  supplier performance that represents 80% of
                                        20186, our suppliers have improved across all                                G-Star RAW production volume.

                                        Verified FEM assessments of G-Star RAW tier 1 and tier 2 factories

                                                                                                                                             48.41
                                                                                                                                36.3
                                        Average waste score verified                                                            35.39
                                                                                                                                     39.71
                                                                                                                        22.89
                                        Average air emissions score verified                                                30
                                                                                                                                                                              83
                                                                                                                                                                 68.75
                                        Average water score verified                                                                                    58.41
                                                                                                                                                                      73.89
                                                                                                                                                         60.74
                                        Average wastewater score verified                                                                    46.4
                                                                                                                                                    54.19
                                        Average Chemicals Management
                                                                                                                                35.79
                                        score verified                                                          16.88
                                                                                                                                                                              83.4
                                        Average Environmental Management                                                                                    63.54
                                        System score verified                                                                                                  67.9
                                                                                                                                                                                  91.33
                                        Average Energy/Greenhouse                                                                                                             83.4
26

                                        Gas emission score verified                                                                       57.73
                                                                                                                                                            67.7
                                                                                                                                               52.60
                                        Average score total verified                                                                      44.67

                                                                                              0                 20                 40                 60                 80               100
G-Star RAW Sustainability Report 2020

                                            2019         2018        2017                      For definitions of supply chain tiers, please see our Supply Chain Handbook

                                        6 Suppliers are asked in 2020 to disclose data of 2019. Therefore, our
                                          reflection on 2020 includes FEM supplier data from 2019. Data displayed
                                          was not verified by an external party.
PLANET
                                        CONTINUED

                                        MRSL performance per parameter                            The performance per parameter of all factories
                                        As part of our Supplier DETOX Program, all G-Star         included in the program is shown in the overview
                                        RAW's supply chain partners are required to follow        below. As can be seen, a small percentage of
                                        ZDHC’s Manufacturing Restricted Substances List           failures and non-tested parameters require our
                                        (MRSL). We also encourage them to make use                attention. We are working together with our
                                        of the ZDHC Gateway to identify safer and more            suppliers to improve these failures. In 2021, we will
                                        sustainable alternatives and to test wastewater to        continue to engage suppliers to further strengthen
                                        ZDHC Wastewater Guidelines. Our DETOX program             sustainable chemical management practices, for
                                        now covers 75% of our annual production volume            example by requesting suppliers to purchase safer
                                        (including tier 1 and 2 wet processing facilities), and   and more sustainable (ZDHC MRSL conformant)
                                        we have seen 90.4% compliance in the last year.           chemical products.

                                        All factories - Performance by Parameter (MRSL Substances)

                                        VOCS
                                        Polyaromatic hydrocarbons
                                        Phtalates
                                        PFOA
                                        Organotin compounds
                                        Halogenated solvents
                                        Glycols
                                        Flame retardants
                                        Disperse dyes
                                        Carcinogenic dyes
                                        Azo dyes
                                        Chorophenols
                                        Chlorobenzenes and Chlorotoluenes
27

                                        APEOs/Aps
                                        % of manufacturers
                                                                               0%           20%           40%           60%          80%          100%

                                                                                                                                       .
                                           Not Detected        Detected     Not Tested
G-Star RAW Sustainability Report 2020
REFLECTION
                                        ON 2020

                                         Strategic Topic   2019 Achievements                2020 Highlights & Progress          2021 Actions & Goals

                                        Circularity        Launched 4th generations of
                                                           Cradle to Cradle Certified™
                                                                                            Received Cradle to Cradle
                                                                                            Certified™ Gold certification
                                                                                                                                Define roadmap for the 2025
                                                                                                                                Cradle to Cradle Certified™
                                                           Gold denim Fabric, with the      on product level.                   goals.
                                                           Word’s 1st stretch.
                                                                                            Received Cradle to Cradle           Replace 90-95% of all
                                                           Worked with Fashion Positive     Certified™ Gold certification       polybags with recycled PE
                                                           to define and promote safe       for Black Denim.                    polybags.
                                                           and circular materials.
                                                                                            Set new 2025 goal: 20%              Pilot paper-based polybags.
                                                           Set a new circular roadmap for   of our collection should be
                                                           packaging                        made with Cradle to Cradle          Re-initiate in-store takeback
                                                                                            Certified™ fabrics.                 service to collect post-
                                                                                                                                consumer waste.
                                                                                            Tested if virgin plastic
                                                                                            polybags could be swapped
                                                                                            for polybags made from
                                                                                            100% recycled post-consumer
                                                                                            polyethylene (PE).

                                                                                            Conducted research on
                                                                                            circularity initiatives (pre- and
                                                                                            post-consumer waste options)
                                                                                            and determined to focus
                                                                                            on upcycling and takeback
                                                                                            schemes.

                                        Sustainable        97% of our cotton is
                                                           sustainable cotton.
                                                                                            Reached 99% sustainable
                                                                                            cotton by the end of 2020.
                                                                                                                                Get certified on brand-
                                                                                                                                level for Organic Cotton
                                        Materials                                                                               Standard and explore Global
                                                           86% sustainable materials        Reached 93% sustainable             Recycle Standard brand-level
                                                           across all products.             materials by the end of 2020.       certification.

                                                           Benchmarked materials for        Elaborated Fiber Ranking for        Publish Fiber Ranking for on-
                                                           sustainability in our Fiber      on-product communication            product communication.
                                                           Ranking.                         and aligned with stakeholders
                                                                                            to improve the tool.                Keep involved with new
                                                                                                                                industry tools for fiber
                                                                                            Integrated Fiber Ranking            benchmarking.
                                                                                            within different departments:
                                                                                            Product Development,
28

                                                                                            Sourcing, Design, and
                                                                                            Marketing.

                                                                                            Defined Sustainable Materials
                                                                                            roadmap and set goals for
                                                                                            2025 and 2030.

                                                                                            ANIMAL WELFARE
G-Star RAW Sustainability Report 2020

                                                                                            •   Ban on Down
                                                                                            •   Use of animal derived
                                                                                                fibers is now part of our
                                                                                                Sustainable Materials
                                                                                                strategy (for more details
                                                                                                see Animal Welfare
                                                                                                policy)
REFLECTION
                                        ON 2020
                                        CONTINUED
                                         Strategic Topic   2019 Achievements               2020 Highlights & Progress      2021 Actions & Goals

                                        Climate Change     Deployed the Higg Facility
                                                           Environmental Module (Higg
                                                                                           Aligned / integrated with
                                                                                           other departments on goals
                                                                                                                           Scope 3 footprint mapping
                                                                                                                           (with external consultant).
                                                           FEM) tool to understand our     and priorities (in particular
                                                           carbon impact in the supply     logistics) for Scope 1 and 2    Define 2025 roadmap &
                                                           chain.                          emissions.                      priorities.

                                                           Signed up to the UN Fashion     Aligned with external partner
                                                           Charter for Climate Action:     to prepare for Scope 3
                                                           built an inventory of Scope 1   mapping in 2021.
                                                           and 2 emissions.

                                        Pollution          Deployed the Higg Facility
                                                           Environmental Module (Higg
                                                                                           90.4% average compliance
                                                                                           to the G-Star RAW DETOX
                                                                                                                           Adopt Higg verified FEM at
                                                                                                                           Tier 1 (and 2) supplier that
                                                           FEM) tool to understand our     program.                        represent 80% of G-Star RAW
                                                           carbon impact in the supply                                     production volume.
                                                           chain.                          Completed the ZDHC 2020
                                                                                           Brand Leader programme.         Train and engage suppliers on
                                                           Signed up to the UN Fashion                                     G-Star RAW environmental
                                                           Charter for Climate Action:     The Higg verified FEM           requirements.
                                                           built an inventory of Scope 1   that represents 66% of our
                                                           and 2 emissions.                production volume scored an     Improve supplier compliance
                                                                                           average of 67.7/100.            to the G-Star RAW DETOX
                                                                                                                           program.
29
G-Star RAW Sustainability Report 2020
G-Star RAW Sustainability Report 2020   30

PHILANTHROPY
PHILANTHROPY

                                        The GSRD Foundation was founded in 2007            Education
                                        as G-Star’s corporate foundation. Its mission is   Vocational training and education for young
                                        to create a positive impact on the lives of the    people, focusing on knowledge and skills that
                                        people and communities in the countries where      will help them to learn a trade, improving their
                                        G-Star RAW products are made. It does so by        chances of getting a job and thus of having a
                                        supporting projects that focus on the education,   better future.
                                        training and coaching of young people.
                                                                                           Entrepreneurship
                                        Our ethos is that knowledge, an entrepreneurial    Life-skills training and coaching for young
                                        mindset and self-empowerment are key               people, to help them to become independent,
                                        to economic independence and social                seize initiatives and leverage opportunities in
                                        development. To facilitate this, the Foundation    order to become more self-sufficient, either
                                        supports projects that focus on education and      as proactive employees or through self-
                                        entrepreneurship.                                  employment.

                                        The GSRD Foundation is active in four G-Star RAW production countries:
                                        Bangladesh, China, India and Vietnam.
31
G-Star RAW Sustainability Report 2020

                                        Bangladesh                                         India
                                        • Active since 2008                                • Active since 2008
                                        • Supported 35.825 beneficiaries over the years    • Supported 171.850 beneficiaries over the years
                                        • Currently 6 active projects                      • Currently 7 active projects

                                        China                                              Vietnam
                                        • Active since 2009                                • Active since 2014
                                        • Supported 530.429 beneficiaries over the years   • Supported 15.615 beneficiaries over the years
                                        • Currently 3 active projects                      • Currently 6 active projects
PHILANTHROPY
                                        CONTINUED

                                        The Foundation supports all of its projects through             to strengthen the projects we support and the
                                        partner organizations, which have a proven                      partner organizations that run them. All projects
                                        track-record in education and entrepreneurship                  seek to help people leverage opportunities to
                                        and countries where GSRD is focusing its efforts.               become more self-sufficient, either as proactive
                                        We strive for long-term relationships in order                  employees or through self-employment.

                                        Currently the GSRD Foundation                                   The GSRD Foundation has been
                                        works together with                                             working together with

                                        18
                                        partners.
                                                                                                        54
                                                                                                        partners over the past year.

                                        22
                                        projects are being
                                                                                                        92
                                                                                                        projects have been supported
                                        supported today.                                                since 2008.

                                        Beneficiaries supported through:

                                                                                                        763.046
                                                                                                        lives have been impacted by
                                                                                                        the GSRD Foundation since 2008
32

                                          Education   Entrepreneurship   Education & Entrepreneurship

                                        The COVID-19 pandemic has created                               Support from the disaster fund was not only
                                        unprecedented challenges for our partners and                   used for emergency relief, but also to cover
G-Star RAW Sustainability Report 2020

                                        projects in the countries where G-Star RAW                      operational costs during lockdowns (e.g. being
                                        products are made. Some of our partners also                    able to pay the salary of the teaching staff or
                                        had to suffer from floods, cyclones and other                   the rent of the vocational training center). We
                                        natural disasters on top of the devastating effects             are in close contact with all our partners and
                                        of the pandemic. We supported our partners to                   we will keep on supporting them throughout
                                        adjust to the situation and we provided additional              this crisis.
                                        support for COVID-19 prevention and for the
                                        communities most affected by the virus. We do
                                        so by providing additional funding for specific                 We reached
                                        COVID-19 interventions. Examples of additional
                                        support provided include hygiene packages and
                                        food distribution, awareness raising activities
                                                                                                        73.301
                                                                                                        people during the COVID-19 crisis
                                        and handing out personal protective equipment.                  through our disaster fund.
You can also read