SUSTAINABILIT Y REPORT 2020 - Bestseller
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B E ST S E L L E R Sustain ability Repor t 2 02 0 Fa s h io n FW D 2 2020 SUSTAINABILIT Y HIGHLIGHTS 84% of our total cotton consump- 76% of NAME IT ’s cotton was sourced tion in 2020 was sourced more from organic sources in 2020, while sustainably with organic SELECTED and Y. A .S achieved 67% JACK & JONES’ Low Impact Denim (LID) cotton accounting for 23%. and 66%, respectively. products now account for approximately 15 percent of the brand ’s denim pro – duction and this year JACK & JONES Together with CYCLO, BESTSELLER has developed a closed-loop further tightened the requirements for system in conjunction with our biggest jersey supplier in Bangladesh when a product can be categorised as LID. – GMS Composite Knitting. CYCLO recycles our brands’ own cutting scraps to make useable cotton yarn and fabric. We trained all our buyers and designers in circular design principles through workshops and online training and several of our brands have included circular styles in their collections. We have set greenhouse gas reduction We increased our use goals in line with the Paris Agreement of more sustainable and a 1.5°C pathway through the Science man-made cellulosic Based Targets initiative (SBTi). fibres from 11% to 34%. Our biggest contributors were We have launched the Fashion FWD Lab, VERO MODA our new experimental platform, which and ONLY, who acts as catalyst for collaboration with respectively reached innovators and entrepreneurs to pilot 54% and 32% of their and test new ideas and solutions. total supply.
B E ST S E L L E R Sustain ability Repor t 2 02 0 Fa s h io n FW D 3 219 Our recycled polyester use suppliers completed a accounted for 10% of all polyester Higg FEM assessment, sourced. SELECTED and Y.A.S representing 86% of our increased their recycled polyester supply chain by value (tier 1 and 2). 96 consumption to respectively 33% suppliers’ results were verified, with and 25% of their overall supply. an average score of 51, improving on 2019's average score of 45. As a member of ACT, we have actively We launched Our People’s Voice – our participated in setting industrial employee engagement survey – and structures and mechanisms for enhancing achieved an engagement score of 79, social dialogue and freedom of association which is seven points higher than the in the global textile supply chain. external global benchmark. By the end of 2020, HERproject TM programmes had reached 81,975 people in BESTSELLER’s supply chain. The launch of HERessentials to combat COVID-19 was intergral to this progress, which saw us achieve our Fashion FWD goal of reaching 100,000 workers in March 2021. Our brands VERO MODA, OBJECT and SELECTED became some of the first fashion brands to produce garments at market scale from Renewcell’s fibre Circulose®, which is made from discarded textiles, such as production waste and worn-out garments.
B E ST S E L L E R Sustain ability Repor t 2 02 0 Fa s h io n FW D 4 A MESSAGE FROM OUR CEO & OWNER As we look back on 2020 and ref lect on a momentous year, it is striking – for all the talk of ‘a new normal ’ – how much the values that define BESTSELLER remain relevant. Honesty, loyalty, a strong work ethic, a willingness to cooperate and an inquisitive mind – all of these factors are as important today as they were when BESTSELLER began almost half a century ago. While the initial shock of COVID -19 has worn off, our indus- a crisis, and in BESTSELLER , we have learned a lot. One of try – like global society – continues to grapple with massive the more important lessons has been that we must accept a cha l lenges related to the v i r us . T he te x t i le supply cha i n certain amount of uncertainty and the best response is to remains seriously disrupted. While we have adapted quick- be proactive. ly to the market, allowing us to continue submitting orders and help keep the wheels in motion at many of our suppli- T here a re a number of si m i la r it ies between the pa ndem- ers, we must accept that the effects of the global pandemic ic a nd the br oad pla neta r y c r i si s . We ca n not bu i ld wa l l s will be long-lasting. Our social sustainability work remains strong or h igh enough , and neither can we run away fast as important as ever to foster safe work ing environments or far enough, to simply avoid the global challenges we are and fair outcomes for everyone in our supply chain. facing – or are about to face. We live in a connected world, wh ich ma kes contemporar y cha llenges and oppor tun ities We never doubted that we would make it through the global so mult ifaceted that our approach must be col laborat ive, pandemic. It was just a matter of how we would manage it in and our solutions must be holistic. Everyone has a respon- the best way possible. There is no learning experience like sibility to do their part. Our actions must be based on the
B E ST S E L L E R Sustain ability Repor t 2 02 0 Fa s h io n FW D 5 measurable needs of our planet, which is why we are pleased our climate goals have been approved by the Science Based Targets initiative in early 202 1 . With 202 1 well under way, we are investing even more time and resources to create a dig ital and susta inable future for “We live in a connected world, which our compa ny. T he consequences of deplet i ng our natura l resources are becom ing ever clearer and even though we do not have all the solutions we cannot allow that uncer- makes contemporary challenges and ta inty to paralyse us. Our sustainability strategy Fashion FWD continues to guide opportunities so multifaceted that our approach us, and its overall impact will be dependent on us striking the right balance between short-term w ins and long-term focus. We must keep an open mind and remain innovative must be collaborative, and our solutions about how we think about our future business, collaborating across our industry and value chain to identify and develop more sustainable solutions. BESTSELLER is committed to must be holistic. Everyone has a responsibility adopt ing and invest ing in innovat ion to futureproof our company. The establishment of Fashion F W D Lab in 2020 was a critical step in our innovation work , as it suppor ts to do their part. Our actions must be based on innovators and entrepreneurs so they can tailor their con- cepts for widespread use in the fashion industry. the measurable needs of our planet.” Ma rke t s a r e c ont i nuou s ly c h a n g i n g a nd ou r c u s tome r s’ e x p e c t at i on s a r e h i g he r t h a n e v e r. We h a v e to r e m a i n focused on continuously improv ing and using our business to create positive impact. By stay ing loyal to our suppliers , bu s i ne s s pa r t ner s a nd c u s tomer s , work i n g h a r d , c ol l ab - or at i n g t h r ou g hout ou r i n du s t r y a n d s e e k i n g out ne w solutions , we can build a more susta inable and prosperous future together. A nde rs Holc h Povl s e n , BESTSELLER 's CEO & O w ne r A nders Holch Povlsen BESTSELLER's CEO & Ow ner
B E ST S E L L E R Sustain ability Repor t 2 02 0 Fa s h io n FW D 6 TABLE OF CONTENTS 07 ABOUT BESTSELLER 08 BRINGING FASHION FWD 10 CLIMATE POSITIVE 24 CIRCUL AR BY DESIGN 45 FAIR FOR ALL 65 SUPPORTING THE SUSTAINABLE DEVELOPMENT GOALS ( SDGs ) 67 MULTI-STAKEHOLDER PARTNERSHIPS & COLL ABOR ATIONS
B E ST S E L L E R Sustain ability Repor t 2 02 0 Fa s h io n FW D 7 ABOUT BESTSELLER AT A GL ANCE BESTSELLER BE S T SE L L E R i s a n i nte r n at ion a l , fa m i ly- ow ne d fa sh ion company w ith a strong foundation. 70 markets Founded by the Holch Povlsen family in 1975, BESTSELLER has always rema ined true to the family values at its core. We are proud of our or ig i ns and we work hard ever y day to br i ng people a nd fa sh ion toget her to ach ieve posit ive 2,600 results for ever yone. branded BESTSELLER has a globa l reach , w ith produc ts for chain stores men a nd women of a l l a ges . Fr om c lot hes to acces sor ies , 17,000 BESTSELLER br i ngs fa sh ion to our customers across the world . O u r bra nd s i nc lude JACK & JONE S , V ERO MODA , ON LY, M A M A L IC IOUS , V I L A , OB J EC T, SE L EC T E D, JUNAROSE , Y. A . S, NOISY M AY, PIECES and NAME IT. people 15,000 multi-brand and department stores 24.1 billion DKK net turnover 2019/20
B E ST S E L L E R Sustain ability Repor t 2 02 0 Fa s h io n FW D 8 BRINGING m it i g at i n g r i s k s a n d i n c r e a s i n g t r a n s p a r e n c y, w e c a n f ut u r e - pr o of ou r c omp a ny a n d i n s pi r e p o s it i v e s o c i a l , economic and environmental progress. FASHION FWD To help us chart our course we have developed our North UNTIL WE Star: Bringing Fashion F WD until we are climate positive, fa i r for a l l a nd c i r c u l a r by de s i g n . T h i s i s ou r u lt i m ate ambition – a guiding light for our Fashion FWD strateg y and ARE CLIMATE our f uture susta i nabi l ity ef for ts , a s we str ive to become a s s u s t a i n able a s p o s s ible , a s s o on a s p o s s ible . We a r e POSITIVE, convinced that we need to outline our chosen destination, so we can plan the route to get there. We need to operate our business ethically, produce our products responsibly, build FAIR FOR a resilient supply chain, greatly respect everyone involved and provide value to our stakeholders. We will continue to Climate Positive accelerate each year and we will not stop until BESTSELLER ALL AND Our business w ill have a positive impact on our planet’s climate across has achieved its ultimate ambition. our value cha in by remov ing more g reenhouse gases than we emit. CIRCULAR “Sustainability is increasingly a part of how we see ourselves BY DESIGN at BESTSELLER and this Circular By Design Our business model will be based on design principles that prioritise efficiency and the reuse of resources at every level, from fibres to water and chemicals to shift in mentality is critical post-consumer, in order to minimise waste and keep resources in use. to our company’s future. At BESTSELLER , we wa nt to ma ke our compa ny a nd ou r i n du s t r y m or e s u s t a i n a bl e , s o w e c a n h e lp c r e ate At BESTSELLER, sustainability t he k i nd of f utu r e we a l l ne ed a nd s a feg ua r d t he world w e l i v e i n . We a r e e m br a c i n g c h a n g e b e c au s e t he means creating long-term Fair For All challenges we face are diverse, complex and considerable. Everyone working in our value chain will be empowered by jobs that are safe, value and prosperity.” that protect human rights and provide fair incomes and opportunities for A s a s i g n i f i c a nt a c to r i n t h e g l o b a l f a s h i o n i n du s t r y, everyone to reach their personal potential. BE S T SE L L E R i s w e l l - p o s it ione d to t a k e r e s p on s i bi l it y, do ou r pa r t a nd c r eate genu i ne c ha n ge . Ou r appr oac h i s D or te R ye Ol s e n , a hol i st ic one wher e we work to i nteg rate susta i nabi l it y Su s tai nabilit y Ma nage r, into all elements of our business. By embracing innovation, BESTSELLER .
B E ST S E L L E R Sustain ability Repor t 2 02 0 Fa s h io n FW D 9 A s pa r t of ou r s u s ta i n abi l it y s t rate g y Fa sh ion F W D, we Our commitment to f inding, funding and suppor ting inno - spl it ou r su s ta i n abi l it y work i nto fou r fo c u s a r ea s : Cr e - vat ive a nd d i sr upt ive solut ions ha s si nce been e xpa nded at i n g F W D, Ma k i n g F W D, En ga g i n g F W D a nd De l iver i n g w ith the development of Fashion F W D Lab – BESTSELLER’s F W D. W it h i n eac h of t hes e a r ea s , we h ave s et shor t a nd susta inability innovation hub. med ium-term goa ls to ach ieve by 202 5, wh i le our hol ist ic appr oac h to su s ta i n abi l it y mea n s t h at s ome t heme s c ut across the entire strateg y. STAKEHOLDER Cr eat i n g F W D foc u ses on t he m ater i a l s i n ou r pr oduc t s , ENGAGEMENT M a k i n g F W D r e l ate s to t he e nv i r on me nt a l fo ot pr i nt of our operat ions and supply cha in , Engag ing F W D sets our d i r e c t ion for s o c i a l s u s t a i n abi l it y a nd D e l ive r i n g F W D At BESTSELLER , we ack nowledge that collaboration refers to product use, circularity and packag ing. w i l l b e c r it ic a l to c r eat i n g a s u s t a i n able r ea l it y for t he f a s h i o n i n d u s t r y. U n d e r s t a n d i n g a n d e n g a g i n g w i t h I n add it ion to t he s e fou r fo c u s a r ea s , ou r Fa sh ion F W D ou r s t a k e h o l d e r s i s t h e r e f o r e e s s e nt i a l . We c a t e g o r i s e s t rate g y a l s o u nderl i ne t he c ent ra l r ole i n novat ion w i l l our sta keholders a s those i nd iv idua l s , g roups a nd orga n- pl ay i n pr ep a r i n g BE S T SE L L E R f or a mor e s u s t a i n a ble i sat ion s that i n f luence our busi ness a nd that we have a n f uture. T he strateg y’s launch ma rked the bi r th of Invest i mpac t on . Our sta keholders i nc lude – but a re not neces - F W D – a susta inable investment platform run in collabo - sa r i ly l i m ited to – col leag ues , suppl iers , workers , c iv i l soc i- ration w ith BESTSELLER’s parent company HE ARTL AND. ety, i ndustr y a ssoc iat ion s , customers/wholesa lers , reta i l- ers , end- con sumers , peers , pol ic y ma kers a nd t he med ia . In prac t ice , we engage w ith our sta keholders i n a va r iety CREATING FWD of ways – from sma l ler -sca le meet ings , inter v iews a nd work shops to i ndustr y-level events a nd mu lt i- s ta ke holde r i n it i at ive s a nd or g a n i s at ion s . BE S T SE L L E R is an ac t ive member of the fol low ing industr y-w ide collaborations: The Sustainable Apparel Coalition DELIVERING FWD ( S A C ) a n d t h e A p p a r e l & Fo o t w e a r I n t e r n a t i o n a l R S L MAKING FWD OUR M a n a g e me nt Work i n g G r oup ( A F I R M ), t he B e t te r FOUR FOCUS Cotton Initiative (BCI), Organic Cotton Accelerator ( O C A ) , E t h i c a l T r a d e I n i t i a t i v e ( E T I ) a n d Te x t i l e AREAS Exchange ( TE), the Bangladesh Accord on Fire and Bu i ld i ng Sa fety (ACCOR D) a nd Ac t ion Col laborat ion Tra n sfor mat ion (ACT ). (See page 67 ). ENGAGING FWD
CLIMATE POSITIVE Our business will have a positive impact on our planet’s climate across our value chain by removing more greenhouse gases than we emit.
B E ST S E L L E R Sustain ability Repor t 2 02 0 Fa s h io n FW D 11 CLIMATE POSITIVE GOALS 2020 2021 2025 2025 We will set science-based goals We will set targets to Our energ y consumption We will have 100% approved on greenhouse gas emissions. safeguard future water in our owned and operated and traceable chemistry in In 2018, we have officially resources. buildings globally will be our core products. committed to set these goals reduced by 30%. through the Science Based Targets initiative. Our owned and operated 75% of all product orders will buildings globally will be be consolidated in suppliers powered by 100% renewable that are highly rated in our energ y. sustainability evaluation.
B E ST S E L L E R Sustain ability Repor t 2 02 0 Fa s h io n FW D 12 COMMITTED As a global fashion company, we have a responsibility to transform our business so that our environmental footprint is in line with the needs of our planet. Some of the biggest challenges our world faces are related to TO BECOMING our planet’s natural resources and we must rethink the way we consume them throughout our value chain. CLIMATE BESTSEL L ER i s com m itted to becom i n g c l i mate posit ive on t he mos t up -to - d ate s c ienc e a nd d ata ava i l able . T h at POSITIVE t h r ou g h ou r w o rk i n M a k i n g F W D , C r e at i n g F W D a n d i s why BE S T SE L L E R h a s s e t g r e e n hou s e g a s r e duc t ion D e l ive r i n g F W D. To ac h ie ve t h i s u lt i m ate a mbit ion , we go a l s t h r ou g h t he S c ie nc e B a s e d Ta r ge t s i n it i at ive a nd must produce and operate leaner, sig nif icantly and contin- has comm itted to the Fashion Pact. We cannot simply set uously r educ i ng t he ener g y, water a nd chem ica l s we use i nc r e me nt a l goa l s – we mu s t f i nd a w ay to op e r ate a nd and the waste we create. Collaboration and transparenc y g row our business in line w ith science. throughout our supply cha in w ill be v ital to our success , as this is where we have the biggest env ironmental impact. In this chapter, we w ill outline our prog ress w ith regards to c l i m ate i mpac t , ener g y con su mpt ion , a s wel l a s ot her To meet the needs of our planet and remove more g reen- env ironmenta l impac ts such as chem ica l and water man- hou s e g a s e s t h a n we e m it , ou r appr oac h mu s t b e ba s e d agement in our supply cha in.
B E ST S E L L E R Sustain ability Repor t 2 02 0 Fa s h io n FW D 13 “ The Science Based Targets ALIGNING initiative is the major league for OUR BUSINESS climate targets, and when we WITH OUR set our Fashion FWD ambition PLANET to ultimately be climate positive, we knew we had to do it right. The size of our company and our ambitions obligate us to act W hen launch ing Fash ion F W D in 2018, a key focus was to constitutes around five percent of the company’s total GHG and push for change, which is commit to a climate strateg y w ith concrete targets to reduce g r e e n hou s e g a s e s (GHG) . We t he r e for e a n nou nc e d t h at emissions (see page 1 5). The majority of our climate impact comes from scope 3 – our supply chain, the transportation BESTSELLER had off icially committed to setting a nd d i s t r ibut ion of ou r pr o duc t s a nd t he c on su mer u s e why we committed to tackling s c i e n c e - b a s e d t a r g e t s ( S B Ts) o n GHG t h r ou g h t h e S c i - phase (washing and caring for our products). e n c e B a s e d Ta r g e t s i n i t i a t i v e ( S B T i ) – a c r i t i c a l s t e p climate change through science on the way to creating a sol id cl imate strateg y and ac h iev i n g t he fol low i n g goa l : By 2020, we w i l l set 2020 PROGRESS & IMPACT already in 2018.” science-based goals on greenhouse gas emissions. In late 2020, we sent our SBTs to the SBTi for approval to T he SBTi is the lead ing corporate collaboration for ambi- achieve our aforementioned Fashion F W D goal , concluding t ious act ion on cl imate change and is focused on helping a year -long projec t of data col lec t ion to set our basel ine, c o mp a n i e s r e duc e t h e i r c a r b o n e m i s s i on s i n l i n e w it h analysis to understand our climate impact and subsequent the Pa r i s A g reement . In 2 019, BESTSELLER reiterated its m o d e l l i n g of ou r t a r g e t s . O u r t a r g e te d r e duc t i on s a r e c om m it m e nt to SB Ts a n d r e duc i n g ou r c l i m ate i mp a c t based on our baseline year of 2018. by b e c om i n g a n i n au g u r a l me mb e r of t he Fa sh ion Pac t . A nde rs Holch Povl s e n , A compa ny’s ta r get s ca n on ly be va l idated i f t hey a r e i n BESTSELLER 's CEO & O w ne r While BESTSELLER is already on its way to reducing emis- l i ne w it h t he Pa r i s A g r e ement , a nd BE S T SEL L ER ’s SBTs sions in its owned and operated buildings through renewa- were approved in early 202 1 , as they are a l ig ned w ith the ble energ y and reduction in energ y consumption, this only most ambitious goal of a 1 . 5°C pathway.
B E ST S E L L E R Sustain ability Repor t 2 02 0 Fa s h io n FW D 14 BESTSELLER’S APPROVED SBTs ARE: BESTSELLER commits CLIM ATE IMPACT 2018 Calculations show that BESTSELLER’s total GHG inventory across our entire value chain reached approximately 2 million tonnes CO 2 e in the base year of 2018. 95% of BESTSELLER’s greenhouse to reduce absolute scope gas emissions come exclusively 1 and 2 GHG emissions by from scope 3 50% EN D OF L IFE GOING FORWARD by 2030 compared to In t he com i n g yea r s , BESTSEL L ER w i l l r epor t t ra n spa r - its base year of 2018* ently on its SBT progress. We do not have all the answers USE O F SO LD RAW yet and we w i ll learn as we go but in itiatives are already PRO DU CTS MATE RIALS being developed and internal goals and roadmaps are being adopted to set a direction for how we will reach our overall SBTs by 2030. For example, we have developed a programme, BESTSELLER commits to wh ich focuses on reduc i ng energ y con sumpt ion a nd ca r - bon em i s sion s i n ou r s tor es (see pa ge 1 5), wh i le a not her reduce absolute scope 3 GHG prog ra m me – k now n a s Env i ronment F W D – i s bei ng put emissions from purchased together to tackle our supply chain (see page 18). However, OW N our SBTs w ill require massive internal effor t and sig nif i- goods and services and O PER AT I O NS cant collaboration with our partners if we are to succeed. upstream and downstream Apart from our ongoing work to source more circular and transportation by sustainable materials, BESTSELLER will focus on increas- ing traceability and transparency with regards to the fabric 30% mills that weave, knit and dye BESTSELLER’s materials due to the considerable impact related to materials processing. I mpr ov i n g ou r d ata m a n a geme nt– s uc h a s s uppl ie r a nd facility business data improvement and facility energ y data over the same timeframe** verification – will also help us target our efforts. YARN & FABRIC BESTSELLER i s a l so look i ng to a l ig n our c l i mate ta rgets * Scope 1 ( 2 %) a nd 2 (3 %) i nc lude elec tr ic ity use , heat i ng a nd cool i ng T R A NSPORT P RODUCTION of bu i ld i ngs a nd use of veh ic les ow ned or control led by BESTSELLER . w it h S c ienc e -B a s e d Ta r get s for Natu r e – a ne w c onc ept ** Scope 3 (95 %) i nc ludes raw mater ia l , ya r n a nd fabr ic produc t ion , GARMENT developed by SBTi that is focused on global water systems ga r ment ma nufac tur i ng , tra n spor t , pac k ag i ng , use of sold produc t a nd the produc t’s end- of-l i fe – the e x tended va lue cha i n . MAN UFACTURING and biodiversity.
B E ST S E L L E R Sustain ability Repor t 2 02 0 Fa s h io n FW D 15 REDUCING OUR DIRECT CARBON FOOTPRINT green energ y to the electricity network when the solar plant ing hard to reduce our energ y consumption by 30 percent. At BESTSELLER, we believe that E ner g y to bu i ld a 2 0 0 megawatt ( M W ) capac it y subs idy- f ree solar plant . T h i s solar plant w i l l produce more than is connected to the grid, which is expected to be in 2021. A k e y s tep w i l l b e t he adop t ion a nd i mple me nt at ion of all actors in society must work t h e e q u i v a l e nt o f B E S T S E L L E R ’s e nt i r e g l o b a l e n e r g y our Stores F W D prog ramme. To reduce our stores’ energ y BESTSELLER made a number of important changes to our consumption , the focus in 202 1 w i ll be on l ighting , wh ich collaboratively towards a low c on s u mpt ion for ow ned a nd operated bu i ld i n gs u nder a power purchase agreement (PPA) with BESTSELLER . E-Commerce and Logistics operations in 2020 as part of our ty pically accounts for half a store’s electricity use. Fur ther carbon future for our planet. With focus on reducing energy consumption and carbon emissions. dow n the line, BESTSELLER w ill also focus on H VAC ( heat- our stores, distribution centres, The solar plant will cover our use of electricity in the Europe- In E-Commerce, we focused on packaging, transportation and i ng , vent i lat ion & a i r cond it ion i ng ) s ystem s a nd pha si ng an Union and European Economic Area in line with the RE100 zero product waste. For example, all waste cardboard and plas- out ga s , oi l a nd ref r i gera nts f rom 2 02 5. Our d i str ibut ion warehouses and offices across the market boundary criteria. As BESTSELLER also has owned tic packaging is collected, compacted and sold to commercial centres , warehouses and off ices w ill have a similar focus. globe, we can reduce our direct and operated facilities outside Europe, we are currently look- recyclers. We also use extra tall boxes to take full advantage ing into sourcing renewable energy to cover these regions. of the height of transport trailers. In addition, none of our left- In E- Commerce, we are putting an end to the use of plastic footprint with energ y reduction over products are put into landfill or incinerated– clearance deliver y bags. A s we beg in our transition to paper deliver y targets and renewable energ y. There are synergies between energ y reductions and renew- products are offered through various distribution channels bags , all of our current plastic deliver y bags – which con- able energ y. By sourcing renewable energ y, we offset the and tarnished products are sold to second-hand stores. ta in at least 50 percent rec ycled plastic – w ill be replaced em i ssions related to our elec tr ic ity consumpt ion , a nd by by an a lter nat ive made from at least 80 percent rec ycled As part of Fashion FWD, BESTSELLER has set two goals relat- reduc ing our use of energ y – and thereby decrea si ng our Reducing the cost and environmental impact of heating in m ate r i a l . BE S T SE L L E R i s a l s o work i n g on CO ₂ c omp e n- ed to our direct energy consumption and carbon emissions: ener g y dem a nd – we i nc r ea s e t he a mou nt of r ene w able Log istics was a priority last year, w ith a par ticular focus sat ion s ys tem s for a l l ou r e - com mer ce del iver ies hav i n g By 2021, our ow ned and operated buildings globally w ill energ y on the market. on better solutions for the operational offices at our ware- successfully adopted this in Sw itzerland , as well as transi- be powered by 100 percent renewable energ y. houses and distribution centres. tioning to vehicles w ith a lower carbon footprint powered by bio - diesel , hydrogen or electricity. B y 2 0 2 5, o u r e n e r g y c o n s u m p t i o n i n o u r o w n e d a n d 2020 PROGRESS & IMPACT operated buildings globally w ill be reduced by 30 percent. GOING FORWARD BE ST SEL L ER w i l l cont i nue to upg rade a nd opt i m i s e ou r In August 2020, we took a significant step towards 100 per- w a r e hou s e s a n d d i s t r i but ion c e nt r e s to r e duc e e ne r g y Regarding the f irst goal, in 2019, we announced a cent renewable energ y for our ow ned and operated build- In 202 1 , we w ill put our second Fashion F W D goal of reduc- consumption. For example, we are upg rading the lighting p a r t n e r s h i p b e t w e e n B E S T S E L L E R ’s p a r e n t c o m p a n y ings, as construction of the new solar power facility began ing our ow ned and operated energ y consumption in focus. in our warehouses to SM A RT LED and introducing – where HE A RT L A N D a nd r e ne w able e le c t r ic it y pr ov ide r B e t te r in the municipality of Holstebro. It will provide additional Hav ing calculated a baseline from 2018 data , we are work- possible – high-speed doors to minimise heat loss.
B E ST S E L L E R Sustain ability Repor t 2 02 0 Fa s h io n FW D 16 SUPPLIER Chem ica l & E nv i r on menta l tea m s a l s o pr ov ide g u id a nc e and suppor t during routine inspections and after wards. OWNERSHIP One tool we use is the Hig g Fac i l ity Env ironmenta l Mod- Average u le ( H i g g FEM ) Inde x , wh ic h i s des i g ned for t he appa r e l Higg FEM ENVIRONMENTAL a nd fo o t w e a r i ndu s t r y to me a s u r e p e r for m a nc e ac r o s s seven impact areas , env ironmental management systems , verified score water use, wastewater, chem ica l use, waste management , MANAGEMENT energ y use and g reenhouse gas emissions. Higg FEM is an industr y-w ide tool developed by the Susta inable Apparel Coalition (SAC). (See page 67 ). 2018: 36 45 I n Ch i n a , BE S T SEL L ER c o op erate s w it h t he I n s t itute of Publ ic A ffa irs (IPE), a non-prof it env ironmenta l research 2019: organisation based in Beijing that monitors many aspects of env i ron menta l supply cha i n ma nagement a nd record s suppliers’ performance on a public database. 2020: 51 2020 PROGRESS & IMPACT Since 2017, we have found that factories using the Higg FEM for the f irst t ime of ten strug gled w ith data management Our biggest environmental impact Each suppl ier must meet our env ironmental management and track ing. BESTSELLER works w ith independent third requ i rements , wh ich out l i ne sta nda rds a nd e xpec tat ion s par ties to verif y our suppliers’ Higg FEM self-assessment comes from the manufacturing on chemical and env ironmental management in the supply results , and there has of ten been a w ide gap between the Higg FEM coverage of our products. To reduce the cha i n . Our loca l Chem ica l & Env i ronment tea m s mon itor self-assessment and the verif ied data . - Supply chain by value (%) eac h suppl ier’s per for ma nce t h r oug h our Fac tor y Sta nd- consumption of water, chemicals and (Tier 1 and tier 2 Preferred Material Suppliers) ards Prog ramme (See page 49). The env ironmental section This year however, we saw g reat prog ress w ith only a two energy, as well as the production of of the rating applied to each supplier w ill ser ve as par t of percent point difference between the average self-assess- waste, we must work closely with the foundat ion for f u l f i l l i ng the fol low i ng Fa sh ion F W D ment score and the average verif ied score. goal: By 2025, 75% of all product orders will be consolidat- our supply chain partners for our ed in suppliers that are highly rated in our sustainability In 2020, 219 tier 1 and tier 2 (Preferred Materials Suppliers) 2018: 49 mutual benefit. evaluation. suppliers completed a Higg FEM assessment. They covered 80 86 per c ent of ou r or der s by va lue . Ver i f icat ion of t he s e 2019: Our focus is on empowering suppliers to ow n and improve scores was difficult to secure due to the pandemic and each To meet our targets on climate, water, and circularity, our t he i r s u s t a i n abi l it y p e r for m a nc e . We pr ov ide s uppl ie r s countr y’s restrictions. However, 96 suppliers’ results were produc ts need to be consol idated w ith suppl iers that are open and willing to move forward with us on this journey. w ith tra ining, so they can self-repor t their susta inability credentials and performance on an ongoing basis. Our local verified, with an average score of 51. This was an improve- ment on the past two years’ average scores. 2020: 86
B E ST S E L L E R Sustain ability Repor t 2 02 0 Fa s h io n FW D 17 32 nd Our loca l tea m s conduc ted 29 tra i n i ng session s w ith our suppliers, with over 1,1 50 participants attending courses on BESTSELLER ranked topics including Higg FEM, chemical management, waste - water management, and environmental best practices. of 540 in the CITI evaluation 29 BESTSELLER joi ned IPE ’s Globa l Bra nd Map i n it iat ive , a publicly accessible map where you can see 95 of our suppli- training sessions ers’ environmental performance in real time and a history with our suppliers, of our remediation actions. The factory list covers 16 tier 1 garment /f in ished product factories w ith wash ing /dyeing with over process, 30 tier 1 cut-pack factories and 49 tier 2 materials 1,150 ma nu fac tu r er s , r epr esent i n g r oug h ly 8 0 per cent* of our purchase volume in China. participants 2018 2019 2020 CITI rank 4 3/306 39/4 38 32 /540 H a v i n g j o i n e d I P E ’s a u t o m a t e d s u p p l y c h a i n e n v i r o n - menta l ma na gement tool – t he Blue EcoCha i n s ystem Over the past year, BESTSELLER has engaged consultants – i n 2 01 9, we b e g a n u s i n g it to s up er v i s e ou r s uppl ier s i n to accurately map our env ironmental footprint v ia scoping 2 0 2 0. O n top of t h at , BE S T SE L L E R m ade d i s c lo s i n g env i- e xe r c i s e s a nd c r eate de ve lopme nt pl a n s on e n g a ge me nt r on menta l p er for m a nc e d ata to t he E c o C h a i n a r e qu i r e - pr ior it y a nd r eg ion a l r e duc t ion opp or tu n it ie s . T h i s w i l l m e nt f or a ny n e w s uppl i e r s on b o a r d e d i nto ou r s uppl y ser ve as the foundation for setting science -based targets c h a i n . W it h t he s upp or t of ou r c ol lea g ue s , ou r s uppl ier s for our supply cha in. r e m e d i ate d 14 p ol lut i on i s s ue s , wh i c h w e r e v e r i f i e d b y IPE ’s aud itor s . GOING FORWARD Bu i ld i ng on la st yea r’s prog r ess , t h i s yea r 2 4 of our sup - pl ie r s i n C h i n a d i s c lo s e d PR T R ( P u l lut a nt R e le a s e a n d In 2021, BESTSELLER will continue to use Higg FEM as a tool Transfer Reg ister) data to the IPE . By publishing an annual to track and support environmental management improve- PR T R d at a for m , s uppl ie r s de mon s t r ate t he y a r e mon i- ments across our supply chain. We also aim to integrate IPE tor i ng thei r overa l l env i ron menta l footpr i nt a nd sett i ng performance data into our Factor y Standards Programme targets to reduce their impacts. grading matrix (see page 49). This will mean that if a sup- plier has an outstanding environmental violation on IPE or BESTSELLER a l so i mpr oved it s scor e on IPE ’s Cor porate doesn’t report PRTR data as required, they will score poorly. Information Transparency Index (CITI), a scoring system on the environmental management systems and engagement. In connection w ith our overall focus on science -based tar - In 2020, we rose seven places in the rankings, and were 32nd gets , we w ill also be developing science -based targets for *I t i s d i f f icu lt to prov ide a n e x ac t f ig ure rega rd i ng our suppl iers a nd fac tor ies i n Ch i na because contrac ts out of 540 evaluated Chinese and multinational brands. our supply cha in (see page 1 3). a nd pa r tnersh ip between BESTSELLER bra nds a nd suppl iers cha nge over the course of the yea r.
B E ST S E L L E R Sustain ability Repor t 2 02 0 Fa s h io n FW D 18 ENVIRONMENT FWD PILOT IN BANGLADESH T h is year, in col laborat ion w ith Bangladesh i consul- Sta r t i n g i n Febr u a r y 2 0 2 1 , ke y s uppl ier s i n B a n g l a- ta nt ER I , BE ST SEL L ER h a s c r eated a pr og ra m me to desh w i l l be i nt r oduced to t he pr og ra m me a nd pr o - par tner w ith our suppliers in Bangladesh to make our v ide feedback on how it should be implemented. From supply c h a i n mor e su s ta i n able . O u r pl a n i s to h ave there, we w ill schedule and conduct eight workshops s u s t a i ne d e n g a g e me nt w it h s uppl ie r s t h at fo c u s e s w ith each factor y over two years covering technical , no t ju s t on a s s e s s i n g t he i r e nv i r on me nt a l c r e de n- env ironmenta l , sof t sk i lls and leadersh ip. The tra in- tia ls , but tra in ing teams in hard sk i lls l i ke chem ica l ing areas w ill be determined by a needs assessment. m a n a g e me nt a nd s of t s k i l l s l i k e pr e s e nt at ion a nd communication sk ills. Examples of potential training areas: - Resource Efficient Production and Management T he a i m i s to c r eate a k nowle d ge a nd s k i l l ba s e to - Chemical Management protect and advocate for env ironmental stewardship - Higg FEM w ithin the supply cha in. Over the next two years , all - Environment Management Plan/Environment of our key suppliers in Bangladesh w ill be tra ined on Management Systems how to assess env ironmenta l performance over mul- - Leadership, Soft-skill Development and High-level t iple sessions , prov ided w ith data on their factories’ Communications p e r for m a nc e s , a nd work to ge t he r to f i nd s olut ion s - Steam Engineering and Equipment a nd r emed i ate i s sues . O ver t he fol low i n g t wo yea r s - Energy Efficient Equipment and Process of t ra i n i n g s e s s ion s a nd a s s e s sment s , fac tor y lead- Improvements ership w ill be encouraged to address issues ra ised in the assessments . At the end of the per iod , the focus There will also be four knowledge sharing sessions w i ll sh if t to g iv ing the par ticipants the oppor tun ity toward the end of the two-year period where teams to discuss their experiences w ith other factories and from each factory share and present their experiences, share best practices. hurdles and how they overcame them.
B E ST S E L L E R Sustain ability Repor t 2 02 0 Fa s h io n FW D 19 WATCHING “We are very happy with this service A s p a r t of Fa s h i on F W D , BE S T SE L L E R s e t a g o a l t h at : safely dispose of our suppliers’ waste. By the end of 2020, By 2021, we w i l l s e t ta r ge t s to s a feg u a r d f utu r e w ate r eight suppliers , including GMS Composite Limited – one of resources. W hile our focus on water stewardship is noth- our largest suppliers , had sig ned up to the scheme, which offered by Geocycle because it gives OVER OUR ing new, fram ing a more explicit water strateg y w ill only he lp to add r e s s ou r w ate r r i s k s a nd opp or t u n it ie s i n a is run by one of the plant’s subsidiaries – Geoc ycle. us the ability to safely dispose of WATER mor e ef f ic ient way. We a r e a member of t he A l l ia nce for Water Stewardship (AWS), which has developed a standard GOING FORWARD these hazardous waste products. We framework for major water users to understand their water are encouraging all of our suppliers use and impacts and create holistic benef its w ithin a river In the coming year, BESTSELLER will support more suppli- catc h ment a r ea . BE S T SEL L ER ’s u s e of t he f ra me work i s ers in signing up to the Geocyle project. Geocyle already has to sign up, with the aim of making just one example of how we are work ing w ith stakeholders a similar initiative in India and, if more suppliers sign up in Water is a vital and more or to develop strateg ies to improve our water impact. Bangladesh , Geoc ycle w ill be able to invest in v ital infra- this an industry-wide solution for structure such as specially-designed transport vehicles and less constant component in storage facilities. the country. Bangladesh is a small 2020 PROGRESS & IMPACT textile production and garment and densely populated country and Si g n i f ic a nt ly, t he e x p e r ie nc e we h ave g a i ne d f r om t h i s manufacture, and the fashion In 2020, we have continued to focus on reducing our water projec t a nd our other water -foc used i n it iat ives w i l l a l so we hope this new initiative will help impact throughout our business. This includes identif y ing ser ve a s the foundat ion of a new water strateg y that we industry’s negative impact on new dyeing and wash ing techn iques in the product ion of plan to complete in 202 1 to achieve our Fashion F W D goal. us better protect our waterways and global waterways is substantial. our denim , using Higg FEM to track and improve our sup - We are mapping our water use throughout our value cha in , BESTSELLER is committed to pliers’ water impact , as well as prioritising raw materials ide nt i f y i n g r i s k s a nd s e t t i n g a b a s e l i ne for ou r f ut u r e all those who depend on them.” w ith a more susta inable water footprint – such as organic targets. exploring and sourcing more cotton. (See page 2 3 and 27 ). sustainable materials and adopting For example, with three of our suppliers in Karachi, Pak i- D e wa n Nu r ul Isla m , C he mical & Additionally, BESTSELLER has had a clear focus on eff lu- stan having begun working with AWS’ standard framework new production techniques to ent management in 2020. Eff luent is a by-product of vari- in 2020, we are reviewing their experiences to identify how E nv i ron me nt Ma nage r i n B a ngladesh , reduce our water use and safeguard ous garment production processes , as the water used can they could potentia lly be appl ied to other water -stressed BESTSELLER . conta in pollutants such as dyes , dissolved solids , and tox ic regions in our supply chain. water sources for the future. metal traces at the end of the process. The use of water in the global fashion value chain is wide- A lt houg h mos t ef f luent i s t r eated at ef f luent t r eat ment spread: from crop irrigation to the dyeing of fabric, and the washing of garments. As such, BESTSELLER’s approach to plants (ETP) w ith in the factories , the process does result in leftover sludge that ty pically ends up in landf ill and can We focus on sourcing more water stewardship is comprehensive. We focus on sourcing leak into the water system. sustainable materials that more sustainable materials that involve more efficient water use in their production, while also cooperating with suppliers One solution is to reuse textile m ill sludge in the mak ing involve more efficient water to promote more responsible water management. Additional- of cement. BESTSELLER has par tnered w ith Bangladesh ’s use in their production, while ly, our membership of the Fashion Pact – which has a focus o n l y i nte g r ate d c e m e nt pl a nt t h at c a n t r a n s f o r m E T P on Oceans – supports our overall ambitions regarding water. slud ge t h i s way – t he L a fa r ge Su r m a Ch h ata k pl a nt – to also cooperating with suppliers.
B E ST S E L L E R Sustain ability Repor t 2 02 0 Fa s h io n FW D 20 CONTROLLING OUR CHEMICAL USE Chemicals are used in each stage of the production of gar - This is a rise compared to last year, and largely due to the One i n it i at ive t hat i s c ur r ent ly bei n g t r ia l led i s a VOC- AFIRM ments a nd footwea r. A s wel l a s work i ng ha rd to mon itor fact that our manufacturers’ ow n supply cha ins were dis- adsorbing bag developed by Swiss specialty chemical com- BESTSELLER is a member of the AFIRM group whose mission what goes into the products at the star t of the supply cha in , rupted by COV ID -19. This meant, for example, that if chem- pany Clariant. Clariant’s adsorbents are based on a natural- is to reduce the use and impact of harmful substances in the we have a thorough testing prog ramme to ensure all prod- ica ls or raw materia ls were no longer ava i lable, a factor y ly-occurring, non-toxic clay with a unique surface structure, apparel and footwear supply chain. Through our engagement uc t s me et ou r r e qu i r ement s . O u r Re s t r ic te d Subs ta nc e s cou ld i nadver tent ly replace them w ith mater ia l s that do which is dried as granulate and contained in air-permeable i n A FIR M , we ca n align w it h t he i ndu s t r y on r e s t r ic ted L ist (R SL) and Packag ing Restricted Substances L ist not meet our standards. sachets or bags. Because VOCs can accumulate ever y time substances, the limits to be set, test methods and chemical (PR SL) catalog ue chemicals that are banned and restricted manufactured goods are stored in enclosed spaces, in our tri- i nve s t igat ion s a nd r e s p on s e s to le gi slat ive up date s . We in our f inal products. It is updated annually based on the We also upgraded our internal chemical testing data manage- al we are placing Clariant’s VOC-adsorbing bags in contain- have found that AFIRM provides a perfect forum to discuss latest leg islation , as well as precautionar y principles and ment so that all the test data is now uniform and structured. ers before they are shipped from China to our warehouse chemical details, legislative changes and different materials. industr y best practice. This new data platform will enable us to pinpoint areas for i n Den ma rk to see whether we ca n r educe t he potent ia l It is also a great resource for us and other companies like us, i mpr ovement a nd help us ident i f y mater ia l s , c hem ica l s , exposure of shipment handlers, merchants, and consumers as it produces materials in various languages that we can T hrough our Chem ica l Test i ng Prog ramme, we s ystemat- suppliers or countries where we are struggling in terms of to VOCs from the enclosed manufactured products. use in training for suppliers and stakeholders. ica l ly test our produc ts a nd mater ia l s at cer t i f ied g loba l compl iance, enabl ing us to be more proactive in f lag g ing i n d ep e n d e nt l a b or ator i e s appr o v e d b y BE S T SE L L E R to problems and working on solutions to address them. In 2021, we will continue to support AFIRM and participate ensure full compliance w ith our requirements , and rework GOING FORWARD in the associated working groups. those that do not meet these requirements. In 2020, BESTSELLER star ted a projec t to reduce volat i le organic compounds ( VOC) in our products – VOCs are emit- In 2021, we will continue to prioritise areas of concern for ted from cer ta in solids or chemical products and can have product safety. With our new data platform, we will be more 2020 PROGRESS & IMPACT adverse health or env ironmental effects. We are exploring responsive and proactive in collaborating w ith suppl iers , nu me r ou s opt ion s for add r e s s i n g t h i s i s s ue at mu lt iple laboratories and chemical managers. We will also be focus- O u r te s t i n g pr og ra m me te s te d a tota l of 8 ,0 4 4 d i f fer ent points along our supply cha in: in production , transpor ta- ing on ensuring our processes align so that all our stake - s t yle s i n 2 0 2 0, r e s u lt i n g i n a fa i lu r e rate of 6. 5 p er c ent . tion and during storage. holders fully understand our requirements.
B E ST S E L L E R Sustain ability Repor t 2 02 0 Fa s h io n FW D 21 IMPROVING CHEMICAL INVENTORY TRANSPARENCY BESTSELLER has committed to removing the use of hazard- “Historically, the apparel ous chemicals from manufacturing sites during production, and we have a goal that by 2025 all our core products (core industry model has been to products represent 75% of our products by value) will have been produced using approved and traceable chemistry. To check the chemical content of suppor t the ach ievement of th is goa l , we have par tnered products after they have been with sustainability accelerator GoBlu to pilot an innovative platform attempting to bring transparent chemical usage made with chemical testing to the global textile supply chain. programmes. BHive brings BESTSELLER’s suppliers are already required to ma inta in inventories of what chemical products are used on-site and transparency to the start of prov ide a chemical inventor y in a format ag reed w ith our chemical team – a laborious and time - consuming task for the supply chain, marking a big each supplier. leap forward for the industry.” G oBlu’s solut ion i s t he BH ive app – a d i g ita l solut ion for c hem ica l i nventor ies en abl i n g fac tor y m a n a ger s to pho - L a rs D o e me r, tog raph a c hem ica l ’s l ab e l , wh ic h i s t hen c r o s s - c he c ke d a c r o s s BH i v e’s d at a b a s e a n d BE S T SE L L E R ’s R e s t r i c te d co -fou nde r of G oBlu . Substances List, prov iding both the factor y and the brand w ith deta iled product information.
B E ST S E L L E R Sustain ability Repor t 2 02 0 Fa s h io n FW D 22 BESTSELLER was one of four companies to pilot BHive. BHive’s “Not only are we able to be more transparent about the chemical database holds over 85,000 chemical products, includ- ing information about each product’s environmental creden- chemicals going into our products, but we are also raising the tials and certifications. Each product in a factory’s inventory can be screened against a brands’ restricted substances list, performance of our suppliers across the board, no matter what brands ensuring full transparency on compliance performance. they produce for, taking leadership at an industry level in a very practical and impactful way.” 2020 PROGRESS & IMPACT In 2020, 7 1 wet processing units ( WPUs) activated accounts Felic it y Tap s ell , w it h BH ive , w it h 2 5 of t ho s e c omplet i n g t he pr o c e s s to share their chemical inventories on the platform. Being a Re sp on sible Sou r c i ng Ma nage r, BESTSELLER . digital solution, WPUs could connect with BHive and begin the process w ithout travell ing for a face -to -face tutoria l , minimising the risk of contracting or spreading COVID -19. Of the almost 7,000 chemical products uploaded to chemical inventory lists in 2020, 74 percent were verified as meeting 2019: 2020: 18 25 industry-standard requirements. This was an improvement on 2 01 9 whe r e 6 7 p e r c e nt of a l l c he m ic a l s uploade d b y WPUs in our supply chain were verif ied as meeting indus- try-standard requirements. factories factories GOING FORWARD BESTSELLER’s suppliers are already expected to maintain chemical inventories and understand what chemical prod- 1,150 chemical products 7,000 chemical products uc t s a r e used on- site a nd whether t hey comply w ith our standards. In 2021, it will be a requirement that all suppliers uploaded uploaded 67% 74% with WPUs to use BHive or provide a chemical inventory log in a format agreed with our chemical team. One of G oBlu’s a ims for 202 1 is to bring cer t if icat ion and aud it i n g b o d ie s on b oa r d to i nte g r ate BH ive i nto t he i r met industry- met industry- ser v ices and prog rammes , reducing the need for multiple standard standard on-site audits, a laborious and often repetitive process for suppliers. requirements requirements
B E ST S E L L E R Sustain ability Repor t 2 02 0 Fa s h io n FW D 23 OUR DENIM EVOLUTION Denim has been central to BESTSELLER’s business are cer tif ied by the Nordic Swan Ecolabel and the model for decades. It is stylish, timeless and versatile. EU Ecolabel, which has evaluated the full lifecycle Unfortunately, traditional methods of denim prod- of Swan Jeans from raw materials to manufacturing uction can be harmful to the environment. Our brands and post-production waste. ONLY re-evaluated every are therefore constantly analysing the denim they use single production process in its development of Swan and working with innovative denim manufacturers to Jeans: all raw materials are either organic or recycled, identify ways to improve the jeans and other denim the clean dyeing process uses minimal water, the trim products they sell. and branding details are recycled and recyclable, and the wash involves low impact treatments. JACK & JONES is the BESTSELLER brand best known for its denim heritage. For the best part of a decade, SELECTED reached two signif icant milestones with JACK & JONES has been working on its Low Impact their denim in 2020. All cotton in their jeans is now Denim (LID) concept. This is a holistic approach that organic, while all new jeans are also Responsibly Washed focuses on f ibre composition, fabric dyeing and the – SELECTED’s finishing process that involves less water, f inishing process. With a commitment to replacing less energy and less chemicals than regular methods. a l l co nve n t io n a l p ro ce ss e s w i t h m o re s u s ta i n ab l e a l te r n a t ive s , L I D jea n s a r e a r g u a b ly s o m e o f t h e Our colleagues at NAME IT have set themselves a goal m o s t s u s ta i n ab l e o n t h e m a r ke t . I n 2 0 2 0 , JAC K & of including styles from their Better Denim concept in JONES further tightened the requirements for when every collection. In 2020, they took orders for around a product can be categorised as LID. LID products 200,000 Better Denim pieces. Better Denim is NAME accounted for approximately 15 percent of JACK & I T’s co m p re h e n s ive a p p roach to m o re s us ta i n ab l e JONES’ denim production last year and acted as the denim, which prioritises more sustainable materials brand’s showcase for what is possible within more and production processes for every element of the sustainable denim. garment. It is made from a blend of organic cotton and recycled polyester, water in the washing process At ONLY, 2020 saw the launch of Swan Jeans – the is recycled and advanced technologies like Waste-Heat- b ra n d’s m o s t s u s ta i n ab l e jea n s to d ate. T h e jea n s Recovery boilers are used.
CIRCULAR BY DESIGN Our business model will be based on design principles that prioritise efficiency and the reuse of resources at every level, from fibres to water and chemicals to post-consumer, in order to minimise water and keep resources in use.
B E ST S E L L E R Sustain ability Repor t 2 02 0 Fa s h io n FW D 25 CIRCUL AR BY DESIGN 2025 2025 GOALS We will have tested and All consumer-facing implemented circular business packaging will be 100% models in selected key markets reusable, recyclable or 2022 2023 2025 with relevant partners. compostable. We will source 50% of our We will have phased out 100% of our man-made We will provide 100% of our wool will polyester from recycled single-use virgin plastic, cellulosic fibres will be our customers and be sourced in line with polyester or other more wherever possible. sourced responsibly in consumers with industry best practice, sustainable alternatives. line with industry best information on such as the Responsible practice, such as the Forest the environmental Wool Standard (RWS). Stewardship Council (FSC). impacts of our core products, and we We will facilitate the We will drive forward post- will show year-on- development of more consumer waste and circular We will source 100% of Within our 100% more year improvements. sustainable fibres and infrastructure solutions, our cotton from more sustainable cotton sustainable alternatives. supply, we will source materials at market scale engaging in collaborative 30% from organic cotton . through innovation and initatives to turn waste into industry collaborations. valuable resources.
B E ST S E L L E R Sustain ability Repor t 2 02 0 Fa s h io n FW D 26 RETURN TO SUSTAI NABLE RES OURCE MATERI ALS RA CK W O M ST AT ER ED FE IA L THE CIRCUL AR CI RCULAR MATERI ALS DESIGN & AND CHEMIST RY TECHNOLOGY LE C YC & DIGITAL P RE RO C IRCUL AR D RECYCL ING U CE TECHNO LOGIE S BUSINESS USE DI GI TAL TRACEABI LI TY & I NTEGRI TY MODEL C IRCUL AR BUS IN E S S MOD E LS DI GITAL TECHNO LOGY At BE S T SEL L ER , we a r e c om m it te d to a c i r c u l a r f utu r e . i nto new c loth i ng , represent i ng a loss of more tha n t hat pr ior it i ses i n novat ive solut ion s con nec t i n g natu r e , t hat ca n be r epur posed or r ec yc led , a nd ident i f y i ng a nd The fashion industr y must move away from its traditional USD 100 billion wor th of materials . * technolog y and fashion to create a sustainable future. We prioritising production technologies that reuse and reduce linear model of take -make -waste and embrace circularity need new ways of thinking throughout our value chain and water and chem ica ls . In th is chapter, we w i l l out l ine our wher e f i n ite r e s ou r c e s a r e pr ote c te d a nd w a s te i s e l i m- To a c h i e v e o u r u l t i m a t e a m b i t i o n o f b e i n g c i r c u l a r from a l l sect ions of our business. Circular principles can work w it h i n Cr eat i n g F W D a nd D e l iver i n g F W D w it h a i n a t e d . E a c h y e a r, i t i s e s t i m a t e d t h a t l e s s t h a n o n e by design, we are working towards a Circular & Digital Busi- already be seen in the way we are reusing our own textile focus on more susta inable materials , innovation , circular per cent of mater ia l used to pr oduce c lot h i n g i s r ec yc led ness Model for BESTSELLER . This is a disruptive approach waste to create new fibres, specifically designing products design, digitalisation and plastics and packaging. * A new te x t i les Economy by El len Mac A r thur Foundat ion a nd Ci rcu la r Fibres In it iat ive.
B E ST S E L L E R Sustain ability Repor t 2 02 0 Fa s h io n FW D 27 MORE SUSTAINABLE COTTON Cotton is natural and renewable, while its production also 2020 PROGRESS & IMPACT supp or t s m i l l ion s of p e ople a r ou nd t he world . Howe ver, c o nv e nt i o n a l c o t t o n g r o w i n g c a n h a v e a c o n s i d e r a b l e In 2020, 8 4 percent of the cotton BESTSELLER sourced was LEADING THE WAY WITH impact on the env ironment, which is why we are actively suppor ting more susta inable cotton farming practices and mor e su sta i nable , w it h or ga n ic cotton accou nt i n g for 2 3 percent. This is a considerable increase compared to 2019. FUNDAMENTAL FIBRE work ing towards only sourcing more susta inable alterna- t ive s . BE S T SE L L E R ’s mor e s u s t a i n able c ot ton p or t fol io Our improvement in 2020 was recog nised by the Susta ina- consists of organic, rec ycled , Cmi A (Cotton made in A frica) ble Cotton Rank ing – an organisation committed to accel- and BCI (Better Cotton Initiative) cotton. erating the demand and uptake of more susta inable cotton. BESTSELLER was the big gest improver between 2017 and BESTSELLER has committed to sourcing 100 percent of our 2020, achiev ing ‘Leading the Way’ status for the f irst time. As our most important raw material by volume, cotton has been a cotton from more sustainable sources by 2022 as part of We are one of 1 1 companies to achieve the Susta inable Cotton our Fashion FWD strateg y. In addition, 30 percent of our R a n k i n g ’s h i g he s t c l a s s i f icat ion . BE ST SEL L ER a l s o key focus of BESTSELLER’s transition to more sustainable materials more sustainable cotton supply must be organic by 2025. ac h ieved t he h i g hest pos sible scor e (4 poi nt s) for cotton for many years. In 2020, we again took significant strides forward. W it h ou r r elat ively h i g h cotton footpr i nt , we have a bi g in Texti le E xchange’s Corporate Fiber & Materia ls Bench- oppor tunity to use our inf luence to promote change in the mark for 2020. fashion industr y and to stimulate both demand and supply of mor e s u s t a i n able c ot ton . For e x a mple , BE S T SE L L E R h a s i mplemente d a d i r e c t-to -fa r m appr oac h to i nve s t i n t he g r ow t h a nd i nteg r it y of t he or ga n ic cotton i ndu s t r y 84% more and – by extension – secure our future supply. A direct-to - From BE S T S E L L E R farm approach helps protect farmers mak ing the sw itch to sustainable cotton Seed to Fin ished G oods organic cotton by ensuring the organic premium ends w ith (target 100%) t hem . W it h g loba l dema nd for or ga n ic cotton i nc r ea si n g T-shirt (C ut- M a k e -Tr i m ) and far outweighing current supply, it is v ital that brands Direct-to-farm like BESTSELLER invest in the industr y’s g row th. approach Fa b r i c ( M i l l s) BESTSELLER is a proud member of BCI, which is the largest cotton susta inability prog ramme in the world. With mem- bers spann ing the ent ire cotton va lue cha in , BCI focuses on t ra i n i n g cotton fa r mer s i n mor e su s ta i n able fa r m i n g Ya r n ( S p i n n e r s) prac t ices . L icen sed BCI fa r mers produce cotton i n a way t hat ca r es for t he env i r on ment a nd fol lows decent work principles. The more Better Cotton we source, the g reater impact we can achieve. By actively contributing to the BCI L i nt C o o n ( F P O s , Tr a d e r s) Grow th and Innovation Fund , BESTSELLER is also helping BCI expand its work through strateg ic investments. Better Cotton is sourced v ia a system of Mass Balance and is not S e e d C o o n ( F P O s , Fa r m e r s) physically traceable to end products. CONVENTIONAL BCI ORGANIC
B E ST S E L L E R Sustain ability Repor t 2 02 0 Fa s h io n FW D 28 Ou r bra nd s have been i nteg ra l to t h i s t ra n sit ion , w it h a nu mb er of t hem fo c u s i n g a l mo s t e xc lu s ive ly on or ga n ic Top 3 brands NAME IT: 76 sourcing organic cotton 67 cotton. To suppor t the brands’ effor ts and to invest in the SELECTED: g row th of the organic cotton industr y, BESTSELLER off i- by % of their total cotton 66 cially became a par tner of the Organic Cotton Accelerator (OC A) in 2020. OC A is the only multi-stakeholder organisa- consumption for 2020 Y. A .S: t ion ful ly ded icated to organ ic cotton . It is comm itted to bring ing integ rity, supply security and measurable socia l and env ironmental impact to organic cotton. Through OC A , BE S T SE L L E R s i g ne d a g r e e me nt s w it h t wo f a r m g r oup s Through OCA, BESTSELLER i n I nd i a – tot a l l i n g appr ox i m ate ly 1 , 8 0 0 or g a n ic c ot ton fa r mers – to source 1 , 10 0 ton nes of orga n ic cotton d i rec t signed agreements with two from farmers , wh ich is the equivalent of eight percent of BESTSELLER’s organic cotton consumption in 2020. farm groups in India. In addition , BESTSELLER committed to purchasing Cmi A's ne w or g a n ic s t a nd a r d i n 2 0 2 0. W h i le ou r or de r w a s not of the same mag n itude as our OC A ag reement , the Cm i A- Orga n ic dea l represents BESTSELLER’s w idespread ded i- cation to direct-to -farm sourcing of organic cotton. Cmi A- Organic cotton w ill be f irst used in some of our products in 202 1 . O u r on goi n g suppor t of t he B CI Gr ow t h a nd In novat ion 1,800 Fu nd c ont r ibute d to B CI fa r me r pr oje c t s s upp or t i n g 1 . 8 Organic farmers m i l l ion cotton fa r mer s i n A s i a a nd A f r ica i n t he 2 01 9 -2 0 g r ow i n g s ea s on . We w i l l c ont i nue t h i s s upp or t a nd B CI + cotton w ill rema in central to our more susta inable cotton sourcing strateg y in 202 1 . 1,100 tonnes of organic cotton sourced directly = 8% of BESTSELLER's organic Photo cred it : STAC cotton consumption in 2020
B E ST S E L L E R Sustain ability Repor t 2 02 0 Fa s h io n FW D 29 “This is the start of a VERO MODA learning process for VERO ITEMS CERTIFIED MODA and we are not WITH THE stopping here. VERO MODA is EU ECOLABEL aiming to have the majority of its jersey styles certified In 2020, VERO MODA achieved EU Ecolabel cer tif i- within the next couple of cation for its jersey supply chain for three AWARE styles and sold 32,663 items carrying the label last years. The circular mindset year. The certif ied styles contained organic cotton, LENZING™ ECOVERO™ and/or TENCEL™ LYOCELL. that EU Ecolabel promotes G e n e ra l ly k n ow n fo r c e r t i f y i n g h o u s e h o l d i te m s , is very important for us and the EU Ecolabel is increasingly popular in the central to VERO MODA’s fa s h i o n i n d u s t r y a s i t i s w i d e ly r e c o g n i s e d a s a l a b e l o f e nv i r o n m e n ta l e x c e l l e n c e , s e tt i n g s t r i c t sustainability journey. e nv i r o n m e n ta l a n d c h e m ica l r e q u i r e m e n ts fo r p r o d u c ts a n d s e r v i c e s , w h i l e a l s o p r o m o t i n g t h e We are investigating other circular economy. GOING FORWARD to be included . Add it iona l ly, BESTSELLER is look ing into supply chains and additional how we c a n f u r t he r s upp or t fa r me r s lo ok i n g to t r a n s i - T h e e f f or t s to t r a n s it i on f r om c onv e nt i on a l c o t ton to tion from traditional cotton farm ing to organ ic methods. certifications where we can mor e susta i nable sources ha s unea r t hed cha l lenges t hat see a global potential.” BESTSELLER w ill focus on in 202 1 . For example, as organic T h i s c onv e r s ion r e qu i r e s i nv e s t me nt a nd c om m it me nt , cotton is estimated to account for just one percent of the g loba l c ot ton supply, a nd i nteg r it y a nd t ra n spa r enc y of as it ty pica lly ta kes three years for a farm’s soi l to reach t he level r equ i r ed befor e a c r op ca n be label led or ga n ic . 32,663 Maria Højholt Jensen, Sustainability supply is becoming an ever-increasing priority throughout I n 2 0 2 1 , BE S T SEL L ER i s t her efor e i nve s t i g at i n g how we DK /016/066 items sold Responsible, VERO MODA. t he m a rketpl ace , t her e i s a l ac k of cer ta i nt y a r ou nd ou r cou ld i nc lude t h i s ‘ i n-t ra n s it ion’ cotton , wh ic h i s g r ow n ability to source enough organic cotton. BESTSELLER has from organic seeds and according to organic principles but an ambition to fur ther expand our direct-to -farm approach isn’t off icially cer tif ied ‘organic’, in our more susta inable i n 2 0 2 1 , w it h Pa k i s ta n a nd Tu rkey a mon g s t t he m a rket s cotton por tfolio.
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