Sustainability Report 2020 - KATHMANDU HOLDINGS LIMITED

 
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Sustainability Report 2020 - KATHMANDU HOLDINGS LIMITED
KATHMANDU HOLDINGS LIMITED

Sustainability
Report 2020
Sustainability Report 2020 - KATHMANDU HOLDINGS LIMITED
2                            INTRODUCTION                                                                         3

                             Chairman and
                             CEO report.

                             KATHMANDU HOLDINGS LIMITED
                             With the joining of our three brands,
                             Kathmandu, Rip Curl and Oboz,
                             we're excited to launch our first
                             combined sustainability report this
                             year. And what a year it has been!
                             As our family of brands grows, we
                             have new opportunities and new
                             challenges. We can leverage each of
                             our strengths to work together for
                             an even greater impact.
                             The challenge in the coming years
                             will be to expand our B Corp
                             certification and Fair Labor
                             Organisation accreditation across
                             the group.                              DAVID KIRK   XAVIER SIMONET
                                                                     CHAIRMAN     GROUP CHIEF EXECUTIVE OFFICER
                             Despite the impacts of Covid-19, all
                             three brands have made significant
                             strides in sustainability this year.
                             Kathmandu celebrated 100%
                             responsible cotton across its range.
                             Oboz launched its first range with
                             sustainable materials, and Rip Curl
                             celebrated it's 20th year anniversary
                             of Rip Curl planet day.
                             People continue to be a huge focus
                             for our organisation as we extend
                             our efforts to improve the lives of
                             workers in our supply chain and look
                             for new ways to support our teams.
                             Covid-19 threw many challenges to
                             our brands, but each of them have
                             found ways to learn from these
                             challenges and make the most of
                             the opportunity to rethink the way
                             we operate.
Lake Wakatipu, Queenstown,
New Zealand
Sustainability Report 2020 - KATHMANDU HOLDINGS LIMITED
4                                                                                                                           HIGHLIGHTS                                                                                     5

Kathmandu
Holdings 2020
sustainability
                                                                                                                                  B+
                                                                                                                                                                                     20
                                                                                                                                                                                     ANNIVERSARY
                                                                                                                                                                                                   TH
                                                                                                                                                                                                   YEAR

                                                                                                                                                                                     OF RIP CURL

highlights.
                                                                                                                                                                                     PLANET DAY
                                                                                                                             SCORED A B+ IN THE           COLLABORATED WITH
                                                                                                                             ETHICAL FASHION              KATHMANDU ON
                                                                                                                             REPORT TWO YEARS             DEVELOPING OUR
                                                                                                                             RUNNING                      SUSTAINABILITY JOURNEY

                                                                                       IN OUR RANGE                             30%                     RECYCLED PLASTIC
                                                                                                                                                        IN OUR POLYBAGS              FSC
                                                                                                                                                                                     CERTIFIED
                                                                                                                                                                                                          RECYCLED PAPER
                                                                                                                                                                                                          SWING TAGS ON
                                                                                                                                                                                                          PRODUCTS

           40M
                                                         100%
                                                          SUSTAINABLE                                                        LAUNCHED THE SYPES AND
                                                                                                                             BOZEMAN COLLECTIONS
                                                         COTTON                                                              CONTAINING RECYCLED
                                                                                                                             MATERIALS AND ALGAE
    BOTTLES WORTH OF FRESH WATER                                                                                             BLOOM INSOLES
    SAVED BY MOVING TO
    SOLUTION-DYED FABRICS

                                                                                                                                                                                         3.3
                                                     N   EL STORE IN
    (2017—2020)                                   PA                   AU
                                             AR                                                       OBTAINED THE
                                                                         ST
                                         L

                                                                                                      RAINBOW TICK
                                    SO

                                                                             RA

          30                                       1
                                                                                                      CERTIFICATION IN

                                                           st
                                                                              LI A
                                   1ST

                                                                                                      NEW ZEALAND FOR                             IMPROVED GENDER DIVERSITY
                    M+                                                                                EMBRACING DIVERSITY                         IN OUR TEAM WITH NOW
                                                                                  •
                                   •

                                                                                                      AND INCLUSION

                                                                                                                                                  41%               FEMALE                MILLION
                                                                                 1ST
                                   LI A

          PLASTIC BOTTLES
                                          A

                                                                             SO

          RECYCLED THROUGH
                                       TR

                                                                                                                                                                    REPRESENTATION         TREES PLANTED SINCE
                                                                             L
                                          S

          OUR REPREVE PRODUCT
                                                                        AR
                                              AU                 PA                                                                                                                        THE COMPANY STARTED
          RANGES (2015—2020)                       EL STORE IN      N
Sustainability Report 2020 - KATHMANDU HOLDINGS LIMITED
6                                                                                                                                                                           7

Contents.

            10   Ta matou rerenga                                   64   Our journey                                    96    Our journey
                 – our journey                                           True to the trail comes alive with our brand         We’re excited to move into a new era of
                                                                         compass.                                             sustainability.
                 Beyond B Corp and progress on our
                 five-year plan.

                                                                    72   Our suppliers                                  102   Our suppliers
            18   Nga kaiwhakarato                                        A narrow supply chain leads to deep                  A philosophy of relationships underpins our
                                                                         relationships.                                       supply chain work.
                 – our suppliers
                 Our first report under the Modern Slavery Act is
                 a chance to share our vision.
                                                                    76   Our products                                   106   Our products
                                                                         Bozeman range begins sustainability                  Sustainable collection and recycled
                                                                         exploration.                                         swimwear.
            24   Nga hua
                 – our products
                 100% sustainable cotton and a move to more         80   Our footprint                                  110   Our footprint
                 New Zealand made products.                              Doing the right thing becomes more                   Plastic polybags get greener and a shift to
                                                                         tangible.                                            responsible swing tags.

            36   Ta matou tapuwae
                 – our footprint                                    84   Our community                                  116   Our community
                 First solar-powered store opens on our road to          Partnerships led by our brand compass.               We surf, we care and we’re supporting groms
                 carbon zero.                                                                                                 across the globe.

            46   Ta matou hapori                                    90   Our team                                       122   Our crew
                 – our community                                         Big strides in diversity and culture.                Growing leaders and managers as an equal
                 Using our networks to increase connection to                                                                 opportunity employer.
                 the outdoors.

            54   Ta matou ranga
                 – our team
                 Values shine in challenging times.
Sustainability Report 2020 - KATHMANDU HOLDINGS LIMITED
8                           9

Summit Club member Brando
hiking the Paparoa track.
Sustainability Report 2020 - KATHMANDU HOLDINGS LIMITED
10                                OUR JOURNEY                         11

                                                               Ta matou
                                                               rerenga.
                                                Our journey.
Summit Club members Ronja and
Daniel exploring in Queenstown.
Sustainability Report 2020 - KATHMANDU HOLDINGS LIMITED
12                                                                                                                              OUR JOURNEY                                                                                                      13

Our journey.                                                                                                                    Best for the world
                                                                                                                                2025
Kathmandu CEO Reuben Casey                  that real people are making our             BEST FOR THE PLANET 2025 GOALS          OUR PROGRESS THIS YEAR TOWARDS ACHIEVING
looks at what’s beyond B Corp and           products, and the decisions we make                                                 OUR 2025 SUSTAINABILITY GOALS.
                                                                                        • Net zero environmental harm from
how we’re tracking one year into our        have a real impact on their lives.
                                                                                          our business operations.
five-year plan.
                                            I’m proud of the work we’ve done to
                                                                                        • 100% of products designed,
Last year, we announced our five-year       improve the lives of our employees
                                                                                          developed and manufactured
plan, Best for the World, which has         too such as achieving the Rainbow
                                                                                          using elements of circularity
three pillars: people, planet and           Tick, which is especially important for
practice.                                   making sure the 16% of our staff who
                                                                                          principles.                           BEST FOR PEOPLE
                                            identify as LGBTQIA+ feel safe and
We obtained our B Corp certification,                                                   LOOKING BACK
                                            supported at work. As part of our
and now we’re going further – working
                                            response to Covid-19 we’ve introduced       We can’t talk about this year without
to become a leading global B Corp.
                                            more flexible working policies this year,   mentioning Covid-19, which saw
To achieve this, we need to start at        and we are looking for ways to              stores across Australia and New
the top. This year, we’ll be embedding      support more women into future              Zealand shut in March. We worked
sustainability into our governance          senior leadership roles.                    with our suppliers to minimise the
by introducing sustainability key                                                                                                        ACHIEVED            COVID-19 SUPPLIER       INTRODUCED MORE         PROVIDED EDUCATION
                                                                                        impact on them, and we are pleased
performance indicators for senior                                                                                                      RAINBOW TICK            COMMITMENT        FLEXIBLE WORKING POLICIES     TO 18,969 PEOPLE*
                                            BEST FOR PEOPLE 2025 GOALS                  that they’ve reported fewer than 5%
leadership.                                                                             of layoffs. We see our suppliers as
                                            • Empower our community to
                                                                                        partners, and some have been
                                              change 100,000 lives.
BEST IN PRACTICE                                                                        partners for a very long time.
                                            • All our team members embody our
Being a B Corp comes with a lot of
                                              purpose and values.
                                                                                        Covid-19 has reduced our resources      BEST FOR THE PLANET
responsibility, and if we don’t have                                                    significantly, but we’ve managed to
that responsibility embedded right at       • All direct suppliers across our           protect our commitment to
the top, it can be easy to overlook.          business meet our minimum                 sustainability. Having less money to
Embedding sustainability into senior          expectations on their social              spend means we’ve got to have more
leadership helps formalise our B Corp         and environmental impacts.                focus on what matters. We’re aiming
commitment and also sends a strong                                                      for a ‘less but better’ approach that
statement to our team and our               BEST FOR THE PLANET                         allows us to focus on what makes the
customers that we are committed.                                                        biggest impact.
                                            Our biggest challenges will be
                                            introducing the concepts of circularity                                                 FIRST RANGE USING                            FIRST                              100%
BEST IN PRACTICE 2025 GOALS
                                            to our business. It’s a big challenge for                                                 OCEAN PLASTICS                      SOLAR-POWERED STORE                SUSTAINABLE COTTON
• Become a leading Global B Corp.           our industry as a whole, but we’ll have
                                            to make progress there to achieve our
• Integrate circular economy
                                            goal of integrating circularity into our
  principles within our business.
                                            business by 2025.

BEST FOR PEOPLE                             We’re proud to have our first solar-
                                            powered store in Melbourne this year
We released our social impact               and hope to expand this initiative.
statement intending to positively
change the lives of 100,000 people by       We also achieved 100% sustainable                                                   BEST IN PRACTICE
2025, and this is the area of our plan      cotton in our range and introduced
that excites me the most.                   the Moana range of backpacks made
                                            with recycled ocean plastics.
Every time we talk to our community,
customers and shareholders, human           January’s bushfires in Australia had a
rights is their number one priority.        huge impact on our biggest market,
This drives us to focus on the people in    and we felt compelled to respond.
our supply chain rather than on             With the help of our customers, we          REUBEN CASEY
ticking boxes. I think it’s important for   managed to raise $110,000 for the           CEO
all of us as consumers to remember          bushfire recovery.
                                                                                                                                LOOKING AT SUSTAINABILITY             COLLABORATING WITH RIP CURL
                                                                                                                                KPIS FOR SENIOR LEADERSHIP              ON THEIR B CORP JOURNEY
                                                                                                                                                                                                             * Direct education provided to children
                                                                                                                                                                                                              and adults via AHF and NZHT
Sustainability Report 2020 - KATHMANDU HOLDINGS LIMITED
14                                                 OUR JOURNEY                                                                                                          15

Our partners.    B CORP
                 Certified B Corporations®
                                                       MEMBER
                                                                                                         TEXTILE EXCHANGE
                                                                                                         Our membership with the
                                                                                                                                          AUSTRALIAN PACKAGING
                                                                                                                                          COVENANT ORGANISATION
                 (B Corps™) are for-profit                                                               Textile Exchange supports        We submit an annual report
                 companies that use the                                                                  our materials strategy, and      and action plan to APCO,
                 power of business to build a            ww
                                                              w.T
                                                                 ex t   i l e E xc h a n g e
                                                                                               .or
                                                                                                     g   we also participate in their     which supports our
                 more inclusive and                                                                      Preferred Fiber &                packaging and waste
                 sustainable economy.                                                                    Benchmarking Programme.          strategy.

                OUTDOOR INDUSTRY                                                                         CANOPY                           AUSTRALIAN HIMALAYAN
                ASSOCIATION                                                                                                               FOUNDATION
                                                                                                         We have been partners
                We participated in OIA’s                                                                 with Canopy since 2016.          We have been partners with
                Sustainability Working Group,                                                            We work with them to use         the AHF since 2011. We work
                a collaborative platform of more                                                         our influence in our fabric      with the AHF to support
                than 300 outdoor brands and                                                              supply chain to protect the      communities in Nepal, the
                suppliers working together to                                                            world’s remaining ancient        nation that inspired our brand.
                identify and implement better                                                            and endangered forests
                business practices.                                                                      and endangered species
                                                                                                         habitat.

                SUSTAINABLE APPAREL                                                                      LEATHER WORKING GROUP            HIMALAYAN TRUST
                COALITION                                                                                                                 NEW ZEALAND
                                                                                                         Our work with the LWG helps
                Membership of the SAC gives                                                              us to assess the environmental   We have partnered with the
                us access to the Higg Index                                                              compliance and performance       Himalayan Trust to further
                modules. We’ve been using the                                                            capabilities of our tanneries    improve outcomes in
                index since 2014, which                                                                  and to promote sustainable       education in remote rural
                supports our sustainability                                                              and appropriate                  Nepal.
                strategy. The index guides us                                                            environmental business
                on the environmental and                                                                 practices within the leather
                social impacts of our products                                                           industry.
                and how we can improve.

                FAIR LABOR ASSOCIATION                                                                   CARBON DISCLOSURE                ELEVATE
                                                                                                         PROJECT
                We became the first brand in                                                                                              ELEVATE is our chosen supply
                the southern hemisphere to                                                               We submit an annual report       chain partner and an industry
                achieve FLA accreditation.                                                               to the CDP, which supports       leader in sustainability,
                                                                                                         our carbon measurement           auditing and improvement
                This verifies that our social
                                                                                                         and reduction programme.         services.
                compliance programme in our
                supply chain exceeds the most
                stringent global standards.

                BLUESIGN®                                                                                TOITU ENVIROCARE                 RAINBOW TICK
                Our bluesign® system                                                                     Our membership with              We achieved our Rainbow Tick
                partnership supports our                                                                 Toitu Envirocare helps us        certification this year, which
                chemicals management                                                                     to measure, manage and           demonstrates our commitment
                programme, materials and                                                                 reduce our carbon footprint      to diversity and inclusion in the
                products so that they are                                                                through our annual               workplace and creating a
                environmentally and                                                                      carbonreduce certification.      supportive work environment for
                socially friendly.                                                                                                        our team members.
Sustainability Report 2020 - KATHMANDU HOLDINGS LIMITED
16                                                                                                                                                        OUR JOURNEY                                                                                                                                     17

                                                                                                                                                                                                                                                                                   KEY

Our world.
                                                                                                                                                                                                                                                                                FACTORIES
                                                                                                                                                                                                                                                                                 99 TOTAL
                                                                                                                                                                                                                                                                        China (76), Vietnam (12),
                                                                                                                                                                                                                                                                     Indonesia (3), New Zealand (3),
                                                                                                                                                                                                                                                                       Nepal (1), Italy (1), Spain (1),
                                                                                                                                                                                                                                                                          Taiwan (1), Israel (1)

                                                                Greenland

                                                                                                                                                                                                                                                                         MATERIALS SOURCING
                                                                                                                                                                                                                                                                          China, Taiwan, Australia,
                                                                                                                                                                                                                                                                            New Zealand, South
                                                                                                                                                                                                                                                                           Africa, Germany, India,
                                                                                                                                                                                                                                                                          South Korea, USA, Japan,
                                                                                                                                                                                                                                                                              Costa Rica, Brazil

                                                                                                                                                                                            Russia
                                                                                                           Norway

                                                                                Scotland
                                                                                                England           Germany
                                                                                                                                                                                                                                                                               OPER ATIONS
       Canada                                                                Ireland                            Poland
                                                                                  Wales
                                                                                                      Netherlands                                                                                                                                                              New Zealand
                                                                                                    Belgium    Austria Ukraine                                                                                                                                                   49 stores
                                                                                       France                      Turkey
                                                                                                                                                                                                                                                                           1 distribution centre
                                                                                                                              Macedonia                                                      China
                                                                                                                                                                                                                                                                      1 headquarters – Christchurch
                                                                                            Spain                                                                                                                                                                                 Australia
                                                                            Portugal                      Italy             Greece
                USA                                                                                                                                                                                 South Korea                                                                   116 stores
                                                                                                                                                                                                                                Japan
                                                                                                                    Malta                Lebanon                                                                                                                            1 distribution centre
                                                                                                                                                   Iraq
                                                                                                                                      Israel              Afghanistan
                                                                                                                                                                                 Nepal                                                                                  1 headquarters – Melbourne
                                                                                                                                                                        Bhutan
            Mexico                                                                                                                                                         Thailand                          Taiwan
                                                                                                                                                           Bangladesh
                      Honduras

                         Costa Rica                                                                                                                                        Cambodia
                                                                                                                                                          India                              Vietnam
                                                                                                                                                                                                                  Philippines
                                           Venezuela                                                                                                               Sri Lanka                                                                                                   COMMUNITY
                                                                                                                                                                                         Malaysia
                                                                                                                                                                                                             Indonesia                                                        SPONSORSHIPS
                                 Ecuador
                                                                                                                                                                                                                                                                          24 adventure sponsorship
                                                                                                                                                                                                             Timor-Leste                                                     winners travelled to
                                   Peru                Brazil                                                                         Tanzania                                                                                                                       Philippines, Nepal, India, Bhutan,
                                                                                                                                                                                                                                                                        Greenland, Australia (Coffs
                                                                                                                                                                                                                                                                       Harbour and Tasmania), Peru,
                                                                                                                  Zambia                                                                                                                      Fiji        Samoa       New Zealand, Norway, England,
                                                                                                                                                                                                                                            Tonga                                 Tanzania
                                                                                                                             Zimbabwe
                                                                                                                                                                                                                                                                        698 adventure sponsorship
                                 Chile                                                                                                                                                                                                                                          recipients
                                                                                                                                                                                                                                Australia
                                                                                                                              South Africa

                                             Argentina

                                                                                                                                                                                                                                                     New Zealand

                                                                                                                                                                                                                                                                           53 NATIONALITIES
                                                                                                                                                                                                                                                                           ACROSS OUR TEAM

                                                                                                                                                                                                                                                                    Afghanistan, Argentina, Australia,
                                                                                                                                                                                                                                                                   Austria, Bangladesh, Belgium, Brazil,
                                                                                                                                                                                                                                                                     Canada, Cambodia, Chile, China,
                                                                                                                                                                                                                                                                       Ecuador, England, Fiji, France,
                                                                                                                                                                                                                                                                    Germany, Greece, Honduras, India,
                                                                                                                                                                                                                                                                   Indonesia, Iran, Ireland, Italy, Japan,
                                                                                                                                                                                                                                                                      Lebanon, Macedonia, Malaysia,
                                                                                                                                                                                                                                                                    Malta, Mexico, Nepal, Netherlands,
                                                                                                                                                                                                                                                                     New Zealand, Philippines, Poland,
                                                                                                                                                                                                                                                                    Portugal, Russia, Samoa, Scotland,
                                                                                                                                                                                                                                                                       South Africa, Spain, Sri Lanka,
                                                                                                                                                                                                                                                                      Taiwan, Thailand, Timor-Leste,
                                                                                                                                                                                                                                                                          Tonga, Turkey, Ukraine,
                                                                                                                                                                                                                                                                    United States, Venezuela, Vietnam,
                                                                                                                                                                                                                                                                             Wales, Zimbabwe
Sustainability Report 2020 - KATHMANDU HOLDINGS LIMITED
18                                     OUR SUPPLIERS                                19

                                                                        kaiwhakarato.
                                                                        Nga
                                                       Our suppliers.
Thi Thanh Huyen, a worker at TGI
factory outside of Ho Chi Minh City,
Vietnam.
20                                                                                                                                                OUR SUPPLIERS                                                                                                                   21

                                                                                                                                                                                                                             Covid-19 ethical
Our first report                                                                                                                                                                                                             fashion commitments

under the Modern                                                                                                                                                                                                                       WE COMMIT TO SUPPORT
                                                                                                                                                                                                                                       WORKERS’ WAGES BY HONOURING
                                                                                                                                                                                                                                       SUPPLIER COMMITMENTS.

Slavery Act.                                                                                                                                                                                                                           WE COMMIT TO IDENTIFY AND
                                                                                                                                                                                                                                       SUPPORT THOSE WORKERS AT
                                                                                                                                                                                                                                       GREATEST RISK.

“Our Modern                                                  The Australian Modern Slavery Act
                                                             came into force in 2018, requiring all
                                                                                                       therefore moved away from a pure
                                                                                                       compliance model to one that
                                                                                                                                                                                                                                       WE COMMIT TO LISTEN TO
                                                                                                                                                                                                                                       THE VOICES AND EXPERIENCE
Slavery Act                                                  companies operating in Australia to       recognises each supplier’s strengths                                                                                            OF WORKERS.
                                                             report annually from this year on the     and challenges.
statement                                                    risks of modern slavery in their supply
                                                                                                       We have given workers a voice with                                                                                              WE COMMIT TO ENSURING
reflects our wider                                           chains and how they will address
                                                             those risks.
                                                                                                       innovative social media                                                                                                         WORKERS’ RIGHTS AND SAFETY
                                                                                                       communication channels and                                                                                                      ARE RESPECTED.
approach to                                                  We prepared our first report this year,   anonymous confidential worker
sustainability,                                              outlining our unique approach to
                                                             human rights in the supply chain.
                                                                                                       surveys that workers can complete
                                                                                                       using their mobile phones.                                                                                                      WE COMMIT TO COLLABORATE
but it’s much                                                The International Labor Organization      Kathmandu partners with ELEVATE to
                                                                                                                                                                                                                                       WITH OTHERS TO PROTECT
                                                                                                                                                                                                                                       VULNERABLE WORKERS.
more than that.”                                             has reported that 89 million people1      manage our audits and worker
                                                             experienced some form of modern           surveys and facilitate the necessary
                                                             slavery in the last five years, and the   improvement projects in our factories.                                                                                          WE COMMIT TO BUILD BACK
GARY SHAW                                                                                                                                                                                                                              BETTER FOR WORKERS AND
                                                             impact of Covid-19 is expected to                                                    Nguyen Hoang Huy, a worker at
                                                                                                       “Our Modern Slavery Act statement                                                                                               THE WORLD.
CORPORATE SOCIAL                                             increase these numbers.                                                              TGI factory is provided protective
                                                                                                       reflects our wider approach to             gear for his safety.
RESPONSE-ABILITY MANAGER
                                                             As a certified B Corp, our supply chain   sustainability, but it’s much
                                                             approach is framed by a benefit           more than that,” Gary says.
                                                             mindset. This requires a new business
                                                                                                       “For me, it is an exciting invitation to
                                                             model that puts equal weight on
                                                                                                       challenge the existing predominant
                                                             profit and people. As authors Justine                                                They will work to align with our           face desperate circumstances as their     delay some orders, we did not cancel
                                                                                                       business model, which relies on
                                                             Nolan and Martijn Boersma write in                                                   standards, methodology and mindset         only means of income has ended.           any. This helped our suppliers to plan
                                                                                                       growth for growth’s sake. It is this
                                                             Addressing Modern Slavery2, modern                                                   – moving away from a compliance-           There are more beneficial and ethical     for the future while keeping workers
                                                                                                       model that is destroying our planet
                                                             supply chain management tends to                                                     based model to one that relies on          ways to respond to the crisis, and this   meaningfully employed.”
                                                                                                       and is ultimately a very uninspiring
                                                             be more “aimed at treating the                                                       partnership and trust.                     is what Baptist World Aid (BWA),
                                                                                                       and short-sighted way of doing                                                                                                  In April, we sent a survey to all of our
                                                             symptoms than tackling the                                                                                                      Tearfund and the International Labor
                                                                                                       business. What we are proposing is a       Both brands will also work with                                                      suppliers to understand more about
                                                             underlying causes: the very nature of                                                                                           Organization (ILO) are asking of
                                                                                                       new lens through which to see              ELEVATE as their supply chain partner.                                               how they have been affected.
                                                             our business model”.                                                                                                            companies with a new call to action.
                                                                                                       business. If Kathmandu can go all the
                                                             The Kathmandu approach goes               way with this idea, I think we’ll be one   “We all have the same goal when it                                                   "80% of our suppliers replied to the
                                                                                                                                                                                             The decision was made to cancel the
                                                             beyond compliance to working              of the most exciting companies on          comes to our respective supply chains,                                               survey and the results showed that
                                                                                                                                                                                             annual Ethical Fashion Report for
                                                             alongside our suppliers to put people     the globe.”                                which is protecting and enhancing the                                                fewer than 5% had to lay anyone off
                                                                                                                                                                                             2020, and instead BWA and Tearfund
                                                             at the heart of our work. “Over the                                                  wellbeing of workers. This also leads to                                             which was very encouraging."
                                                                                                                                                                                             asked companies that normally
                                                             last five years, we have been shifting                                               a more efficient and profitable
                                                                                                       RIP CURL AND OBOZ ALIGN WITH                                                          participate to outline how they are
                                                             our suppliers to those who share our                                                 business. It is great that we can
                                                                                                       KATHMANDU ON CSR                                                                      responding to Covid-19, given the
                                                             values of transparency and                                                           leverage the combined weight of the
                                                                                                                                                                                             impact on workers in their supply
                                                             collaboration and are willing to work     The Kathmandu team has been                three brands under the Kathmandu
                                                                                                                                                                                             chains.
                                                             together on sustainable                   developing our supply chain                umbrella to facilitate this,” says Gary.
                                                             improvement,” says Corporate Social       management for many years now and                                                     Gary says this was an opportunity for
                                                             Response-ability Manager Gary Shaw.       is recognised by our Fair Labor            WORKER WELLBEING IN THE FACE               Kathmandu to reinforce the
                                                                                                       Association accreditation and B Corp       OF COVID-19                                company’s mindset, approach,
                                                             Audits are the main mechanism used        status as a leader in this area. We are                                               and values.
                                                             to monitor compliance in the supply       excited to report that both Oboz and       When large companies around the
                                                             chain, and they can be useful in                                                     world began cancelling orders due to       “Many countries have no safety net
                                                                                                       Rip Curl have decided to embrace and
                                                             flagging issues. However, they have                                                  Covid-19, it had a devastating effect      for workers who lose their jobs.
                                                                                                       participate in our approach to
                                                             generally failed to make a difference                                                on the garment industry. Millions of       When COVID 19 hit, we called our
                                                                                                       corporate social responsibility (CSR)
                                                             to the lives of workers. We have                                                     workers have been laid off and now         suppliers and while we did have to
                                                                                                       and supply chain improvements.
1.   International Labour Organization and Walk Free Foundation (2017).
     Global Estimates of Modern Slavery: Forced Labour and Forced Marriage.
2.   Nolan & Boersma (2019). Addressing Modern Slavery.
22                                     OUR SUPPLIERS                                                                                                                                         23

                                       COLLABORATING WITH OTHER                 TRAINING THE TRAINERS                                  exploitation and how to keep
                                       BRANDS                                                                                          families and children safe from
                                                                                This year, we partnered with a non-
                                                                                                                                       online predators.
                                       Our regular audit schedule was           governmental organisation to run
                                       disrupted by Covid-19. Regular travel    modern slavery prevention training in                  “The supplier came back and said the
                                       was disrupted and in most cases          a Vietnamese factory. When we first                    training was empowering – a huge
                                       restricted. Physical audits would put    approached the supplier about this                     success,” says Gary. “It was certainly
                                       both workers and auditors at risk.       opportunity, there was little interest                 a very cost-effective way for us to
                                                                                as they did not think Vietnam had a                    make a powerful, immediate and
                                       We therefore decided to collaborate
                                                                                problem with modern slavery.                           meaningful difference.”
                                       more closely with other brands and to
                                                                                Tragically, on 23 October 2019, the
                                       share audits more openly. We also                                                               The next step is to look at expanding
                                                                                bodies of 39 Vietnamese nationals
                                       worked with our supply chain partner                                                            this programme to other suppliers.
                                                                                (29 men, two boys and eight women)
                                       ELEVATE to create and use a remote                                                              We were invited to meet with the
                                                                                were found in the trailer of an
                                       assessment process that allows                                                                  Vietnamese Government to discuss
                                                                                articulated refrigerator truck in the
                                       factories that are due for an audit to                                                          this and other CSR initiatives.
                                                                                United Kingdom. They are believed to
                                       submit the relevant documents and
                                                                                have been victims of modern slavery.                   “Unfortunately, the meeting was
                                       photographs digitally for review.
                                                                                The supplier then contacted                            cancelled because of Covid-19, but we
                                       Corporate Social Response-Ability        Kathmandu and agreed to partner                        are hoping this will develop into a very
                                       Manager Gary Shaw says the remote        with us in this trial.                                 cool example of corporate, NGO and
                                       audits are not as robust as an in-                                                              government collaboration,” Gary says.
                                                                                Using a ‘train the trainer’ model, we
                                       person audit. “But it’s better than
                                                                                paid a local Vietnamese NGO to
                                       stopping audits completely. It shows
                                                                                educate trainers about modern
                                       our ongoing commitment to working
                                                                                slavery prevention and the
                                       with suppliers to both respect the
                                                                                circumstances that can lead to people
                                       impact of Covid-19 on their business
                                                                                being more susceptible to slavery.
                                       while continuing to safeguard and
                                                                                It also covered child abuse, sexual
                                       improve the lives of workers.”

                                       OUR SUPPLIERS
                                       2020

                                                                        99
                                                                   FACTORIES KATHMANDU
                                                                      PARTNERS WITH
                                                                                                                                                       39
                                                                                                                                                 SUPPLIERS KATHMANDU
                                                                                                                                                    PARTNERS WITH

                                                                                              100%
                                                                                             NEW SUPPLIERS SCREENED
                                                                                              USING SOCIAL CRITERIA
                                                                                                                                                                      62
                                                                                                                                                                      CORRECTIVE
                                                                                                                                                                     ACTION PLANS

                                                         *
                                               12
                                               TOTAL AUDITS
                                                                                 10  EXITS
                                                                                                                                               680
                                                                                                                                              HOURS TRAINING STAFF
Nguyen Tan An, a worker at TGI
factory outside of Ho Chi Minh City,
Vietnam.
                                                                                              * Due to COVID 19, we approved a lot more copy audits than normal as it was prudent to do so (35).
                                                                                               Kathmandu completed 12 of our own audits, a smaller number than normal because of this.
24                                      OUR PRODUCTS                          25

                                                                       Nga hua.
                                                       Our products.
Our product team sewing samples in
our Christchurch office workshop,
that will later be used to create our
NZ Made Aotearoa T-Shirts.
26                                                                                                                       OUR PRODUCTS                              27

       Why 100% sustainable
                                                                                                                                               Summit Club members Jared and
                                                                                                                                               Hayley wearing our sustainable
                                                                                                                                               cotton T-Shirts in Cuba.

       cotton is not the end
       of the story.
   “We want to move                        We set a target to have 100%
                                           sustainable cotton in our range by
                                                                                     For pure sustainability, nothing beats
                                                                                     recycled cotton, which uses factory
    from not just                          2020, and we are proud to have hit        waste to create a new yarn with no
                                           that goal this year with the release of   dyeing.
    taking resources                       our Summer 2020 range.
                                                                                     “Recycled cotton – like all recycled
    to giving back                     This was an important goal because            materials – fits better into our aims to
                                       cotton production uses a large                move towards a circular economy
    resources. That’s                  amount of water and around 25% of             where we can work towards closing
    what we’ll be                      the world’s pesticides.                       the loop,” says Kathmandu Head of
                                                                                     Product Innovation and Product
    exploring next.”                   To reach our 100% sustainable cotton
                                       milestone, we used a mix of organic,
                                                                                     Sustainability Manu Rastogi.

                                       recycled and Better Cotton Initiative         So now that we’ve reached 100%, is it
       MANU RASTOGI                    (BCI) cotton.                                 time to pat ourselves on the back and
       HEAD OF PRODUCT INNOVATION                                                    relax? Definitely not, says Manu.
                                       Organic cotton is grown with no
       AND PRODUCT SUSTAINABILITY      pesticides or chemical fertilisers.           “Reaching 100% sustainable cotton
                                       This is great, but the difficulty in          only means we are 100% ‘less bad’.
                                       shifting from traditional to organic          Now we need to shift from reducing
                                       cotton meant the transition was slow          our impact to doing good. The next
                                       and the numbers small. Enter BCI –            challenge is to think about what is
                                       now the largest sustainable cotton            beyond sustainability and look at
                                       programme in the world – creating             regenerative agriculture,” Manu says.
                                       long-term change by helping farmers
                                                                                     There are some exciting trials in place
                                       grow cotton in a way that reduces
                                                                                     for regenerative cotton as well as
                                       stress on the environment and
                                                                                     other textiles such as leather and
                                       improves the welfare of farming
                                                                                     wool.
                                       communities.
                                                                                     “We want to move from not just
                                           BCI has trained 1.6 million cotton
                                                                                     taking resources to giving back
                                           farmers in 21 countries on five
                                                                                     resources. That’s what we’ll be
                                           continents.
                                                                                     exploring next.”

                                                                                                                    100%
                                                                                                             2020

                                                                                             99%
                                                                                      2019

       Our sustainable
       cotton journey
                                                                        78%
                                                                 2018

                                             74%
                                    2017

                             59%
                      2016

        38%
2015
28                                                                                                                             OUR PRODUCTS                                      29

       Recycled polyester
       range grows.

       We have recycled 30,423,221 plastic               This year, we expanded our Heli
       bottles since we started counting in              recycled insulation range to include 10
       2015. Although the total bottle count             styles. The Heli range uses a synthetic
       dropped this year because of Covid-19,            ecodown made from recycled post-
       our range of recycled polyester                   consumer PET bottles, which are
       continues to grow.                                broken down into resin and reinvented
                                                         as polyester fibres that mimic down
       The bottle count number comes from
                                                         by trapping warmth in air pockets.
       the growing number of products that
       use REPREVE recycled polyester. Manu              This year, we also introduced the
       Rastogi says there are many other                 Moana day pack range, which is a
       recycled polyester products in the                blend of BCI cotton and recycled
       range, but the bottle count is limited            polyester made from marine and
       to REPREVE products.                              ocean plastic. The recycled yarn
                                                         makers, Bionic Yarn, work with Robert
       “Only REPREVE is able to accurately
                                                         F Kennedy Jr’s Waterkeeper Alliance
       tell us how many plastic bottles go
                                                         to collect and recycle plastics on
       into each of our products, so this is
                                                         Costa Rica’s Nicoya Peninsula.
       the only product we are comfortable
                                                         The programme is a pilot for
       reporting on. If we could get an
                                                         launching into other regions where
       accurate count on other recycled
                                                         there is currently no recycling
       polyesters, we estimate it could
                                                         infrastructure.
       double our recycled bottle count.”

                                                                                                          9.3
                                                                                                                                                     30
                                                                                                                                                     MILLION
                                                                                                   2019

       Our plastic bottle
       recycling journey                                                                                  MILLION
                                                                                                                           8.2                       AND COUNTING
                                                                                                                    2020

       * Against a target of 10 million for FY20.
       Lower 2020 bottle counts due to Covid-19
       reduction in sales.                                                                                                 MILLION*

                                                                                      6.7
                                                                               2018

                                                                                      MILLION
                                                             3.9
                                                      2017

                                                             MILLION
                                            1.2
                                     2016

                                            MILLION
         0.84
2015

         MILLION                                                                                                                                           Chloe and Jonathan collecting
                                                                                                                                                           beach waste in our new Moana
                                                                                                                                                           pack, made from ocean plastics.
30                                                                                                                           OUR PRODUCTS                                                                     31

Saving water to
                                                                                                                                                                             Summit Club member Sian
                                                                                                                                                                             in Lyttelton wearing our Solus
                                                                                                                                                                             pack which is made from
                                                                                                                                                                             solution-dyed fabrics.

save lives.

“It is something                                                  The United Nations says, “By saving
                                                                  water, we save lives.” It’s something
 we can’t afford to                                               we can’t afford to take for granted
                                                                  any more.
 take for granted                                                 Water wastage and pollution have
 any more.”                                                       disastrous consequences for the
                                                                  environment and, in turn, for people.
                                                                  With 700 million people worldwide at
MANU RASTOGI                                                      risk of being displaced by intense
HEAD OF PRODUCT INNOVATION                                        water scarcity by 2030, the United
AND PRODUCT SUSTAINABILITY                                        Nations is calling for a “fundamental
                                                                  shift” in the way water is managed.
                                                                  As Kathmandu moves to align with
                                                                  the UN Sustainable Development
                                                                  Goals, we are determined to
                                                                  contribute to Goal 6 — access to
                                                                  water and sanitation for all. By using
                                                                  more recycled cotton and solution-
                                                                  dyed polyesters, we have been able to
                                                                  keep moving the needle on how much
                                                                  water is used in our products.
                                                                  We’ve saved 40 million bottles of
                                                                  water already.

                                                                                                                                                                 40
                                                                                                                                                                 MILLION
                                                                                                                                                                 AND COUNTING
Water savings                                                                                                                                                    Bottles worth of
* This year’s lower total reflects decreased orders due to Covid-19.
                                                                                                                                                                 fresh water saved*
                                                                                    12.1
                                                                             2019

                                                                                    MILLION

                                                   11.5
                                           2018

                                                                                                                  8.7
                                                                                                           2020

                                                    MILLION
                                                                                                                  MILLION*
        8.5
2017

        MILLION
                                                                                                                                                                          Manu Rastogi Head of product
                                                                                                                                                                          innovation and product sustainability
                                                                                                                             * This is based on 500ml bottles.
32                                                                                          OUR PRODUCTS                                                                                                             33

New Zealand-made
products hit home.                                                                                                                                                                    Wool sourced from merino sheep on
                                                                                                                                                                                      a Mackenzie Country station in the
                                                                                                                                                                                      South Island of New Zealand.

                                                                                            GLOBAL SCOREBOARD
                                                                                            Results from the 2019 Textile Exchange's Corporate
        When we started down the path of           Here we worked with local                Fiber and Materials Benchmark Program.
        creating a New Zealand-made range,         manufacturer Albion Clothing to
        we had no idea that a global               create our range of New Zealand-
        pandemic would arrive to illustrate        made t-shirts. Another challenge was
        just how important it is to keep
        manufacturing industries alive at
        home.
        The aim was to support local
                                                   finding a local supply for trims and
                                                   packaging.
                                                   “It was a good trial programme where
                                                   we were able to gain a lot of            LISTED IN MCI DOWN INDEX LEVEL 4
                                                                                                                                   7
                                                                                                                                   #
                                                                                                                                                 IN RESPONSIBLE WOOL STANDARD
                                                                                                                                                 “TOP 10 BY VOLUME”

                                                                                            — LEADING PERFORMANCE BAND
        manufacturing and local jobs so that,      understanding and learning,” says

                                                                                                                                  #7
        if the global supply chain is disrupted,   Manu Rastogi. “Covid-19 has really
                                                                                                                                                 IN RESPONSIBLE DOWN
        we have not got all our production         driven home how much we rely on                                                               STANDARD “TOP 10 BY VOLUME”
        offshore. Achieving this turned out to     other countries to produce our
        be more difficult than we anticipated      products. In the future, we would like
        with our New Zealand merino range.         to expand this programme and use it

                                                                                                                                  #8
                                                   as a place where we can experiment
        Although there are plenty of merino                                                 LISTED IN MCI COTTON INDEX LEVEL 4                   IN RECYCLED POLYESTER
                                                   and innovate. We’d like to inspire       — LEADING PERFORMANCE BAND
        farms in New Zealand, including right                                                                                                    “TOP 10 BY VOLUME”
                                                   other New Zealand companies to do
        in our backyard here in Canterbury,
                                                   the same. By working together, we
        there is no processing capability left
                                                   can make even more impact.”
        in the country. Eventually, we found
        an Australian processor who could
        process our New Zealand merino clip
        into fabric before sending it back to
        us in Christchurch.                                                                 LISTED IN MCI STRATEGY LEVEL 4
                                                                                            — LEADING PERFORMANCE BAND
                                                                                                                                  100%                          LISTED IN PREFERRED
                                                                                                                                                                MMCF "100% UPTAKE"
34                                                                                                                        OUR PRODUCTS                                                                                    35

Covid offers a
                                                                                                                                                                                        Sean and Michelle wearing our
                                                                                                                                                                                        merino face masks in Melbourne.

chance to reset.

As stores shut, Covid-19 lockdowns
threatened to halt the textile
                                              With industry conferences and trade
                                              shows going digital and online, more
                                                                                       “Our aim is to do
industry’s sustainability                     people than ever are able to              less but do better
transformations. But Manu Rastogi             participate, Manu says.
has taken the pause as an
                                              As Kathmandu looks for ways to do
                                                                                        and take the
opportunity to reset and look for ways
to do more with less.
                                              more with less, we will be putting        time to refocus
                                              ideas like circularity and carbon
“Our aim is to do less but do better          neutrality on the table.                  on where we can
and take the time to refocus on where
we can have the most impact,” Manu
                                              “It’s time to look at what it would       have the most
says. “What Covid has highlighted for
                                              mean if one of our core lines became
                                              carbon neutral. We are starting slowly
                                                                                        impact.”
us is that these are collaborative
                                              but with a bigger vision and looking
pursuits. To get out of a global
                                              at how we can bring our business         MANU RASTOGI
pandemic, everyone has to contribute,
                                              more in line with the United Nations
and the same goes for the challenges                                                   HEAD OF PRODUCT INNOVATION
                                              Sustainable Development Goals,”
facing the textile industry. People are                                                AND PRODUCT SUSTAINABILITY
                                              Manu says.
now realising that collaboration is
really important.”

Quality return rates
Our product return rates for
quality failures are very low, but
we still strive to reduce this year
on year.

                                             0.34%
                                      2016

                                                                                                                              CARE AND REPAIR              SAFETY

                                                             0.31%
                                                      2017

                                                                                                                                                3,377                     1
                                                                                                                                                                                           Only one of the
                                                                                                                                                                                           reported incidents
                                                                                                                                                                                           were a result of non
                                                                                0.26%
                                                                         2018

                                                                                                                                                                                           compliance with
                                                                                                                                                 REPAIRS            REPORTED INCIDENT      voluntary codes.
                                                                                                  0.20 %
                                                                                           2019

                                                                                                                  0.15%
                                                                                                           2020
36                               OUR FOOTPRINT                           37

                                                                  tapuwae.
                                                                  Ta matou
                                                 Our footprint.
Chloe and Jonathan keeping dry
while hiking in Japan.
38                                                                                                                                                        OUR FOOTPRINT                    39

The road to
carbon zero.
Waste and carbon emissions continue                          Covid-19 helped reduce our carbon                On reflection, we realised our target
to have the biggest impact on our                            footprint this year with decreases in air        would be better focused on our
footprint. That’s why we developed an                        travel, commuting and electricity. The           intensity, as this has been where our
ambitious five-year plan to eliminate                        challenge will be to see if we can make          operational improvements have come
both. Our goal is to be net-zero carbon                      some of these carbon savings                     from and still allows Kathmandu to
by 2025.                                                     permanent by encouraging new ways                grow as a business. Our revised target
                                                             of working.                                      is a 20% reduction on our Scope 2
MEASURE, MANAGE, VERIFY,                                                                                      emissions per store by this year based
                                                             A permanent flexible working policy
MITIGATE                                                                                                      on 2012 numbers. We safely achieved
                                                             that now allows staff to work from
                                                                                                              this. However, the tangible
Our path to net-zero carbon is paved                         home up to two days a week could
                                                                                                              improvements our business will start to
with four simple steps: measure,                             have a big impact on commuting
                                                                                                              achieve will come when we set science-
manage, verify and mitigate.                                 emissions, while an increase in online
                                                                                                              based targets. We hope to complete
                                                             meetings could save on air travel.
We are currently working on our fourth                                                                        this process this coming year and can
year certification of our carbon                             In 2014, we set a target of 20%                  set a more aggressive reduction target
footprint by Toitu Envirocare under                          reduction on our Scope 2 emissions by            in line with the level of decarbonisation
the carbonreduce programme.                                  2020, and since then, our store network          required to keep global temperature
                                                             has grown from 125 stores to 165 stores.         increase below 2°C compared to pre-
                                                                                                              industrial temperatures.

OUR CARBON
JOURNEY*
                                                                                                SCOPE 2 AVERAGE CARBON
TOTAL SCOPE 2 EMISSIONS                                              AUS         NZ    UK       EMISSIONS PER STORE
                                                                                                 2018

                                                             5,582    630        40
                                                                                                        38.1
     2018

             6,251            TONNES CO2e                                                                         TONNES CO2e

                                                                         6,340 492    40
                                                                                                 2019

                                                                                                        40.8 TONNES CO2e
     2019

             6,862 TONNES CO2e
                                                                                                 2020

                                                                 5,892     450   5
                                                                                                        38.5 TONNES CO2e
     2020

             6,347 TONNES CO2e
                                                                                               TARGET

                                                                                                        20     % REDUCTION          46.5
                                                                                                2020

                                                                                                               OF 2012 CO2e PER STORE

SCOPE 3 TRANSPORT EMISSIONS

                                                                                                                                                          Jonathan, taking a stroll down
                629 TONNES CO2e                   77 TONNES OF STOCK MOVED                  398 TONNES CO2e           2,396 TONNES OF STOCK MOVED         the road in Japan.

* 2020 figures are pre-certification estimates.
40                                                                                   OUR FOOTPRINT                            41

New carbon offset
programme restoring
Australian outback.
We offset 1058 tonnes of carbon from        Kathmandu Sustainability Specialist
our 2019 air travel emissions through       Shannon Ball says carbon offsetting is
the Bierbank and Lanherne                   a great way to invest in conservation.
Regeneration Project in Queensland.        “Bush regeneration projects need
                                            money from somewhere. It’s great
The project is part of the Australian
                                            that businesses like ours can benefit
Government’s Emissions Reduction
                                            from the carbon offset they provide.”
Fund and is re-establishing permanent
native forest on land that had been        As we start setting science-based
cleared by grazing and mining.             climate targets and move towards our
The project will provide much-needed       net-zero carbon goal in 2025,
habitat for six endangered species         Kathmandu will look to offset more of
and 21 vulnerable species in the region.   its emissions.
It will also create jobs and economic
activity in an area where
opportunities can be limited.

                                           "Carbon offsetting
                                            is a great way
                                            to invest in
                                            conservation."
                                           SHANNON BALL
                                           SUSTAINABILITY SPECIALIST

                                                                                                     Arthur’s Pass National Park
42                             OUR FOOTPRINT                                                              43

                                               First solar-powered
                                               store opens.

                                               This year, we opened our first 100%
                                               solar-powered store in Blackburn,
                                                                                        The system will
                                               Victoria. This follows a solar panel     eliminate up to 124
                                               installation in our Melbourne
                                               distribution centre in 2016.             tonnes of carbon
                                               Kathmandu Project Manager Dean           dioxide emissions
                                               Smith says the Blackburn store was a
                                               good solar project because it is a       overall.
                                               stand-alone store.
                                               “Because many stores are located in
                                               large shopping centres, it won’t be
                                               possible for solar power to be rolled
                                               out across the entire store network,
                                               but we intend to assess which of our
                                               stores can be adapted for solar power
                                               in the future to help reach our net-
                                               zero carbon target by 2025.”
                                               The system has a solar battery
                                               generator that’s able to deliver 100%
                                               of the store’s annual energy or up to
                                               92,000 kilowatt-hours. The system will
                                               eliminate up to 124 tonnes of carbon
                                               dioxide emissions overall.
                                               The array will use the battery on
                                               overcast days and for backup power.
                                               A live feed of the store’s solar
                                               activities will be displayed on a
                                               monitor within the store, allowing
                                               customers to view power generation
                                               versus usage.

Solar panels on top of our
Blackburn store in Victoria.
44                                                                                                          OUR FOOTPRINT                                                                                                45

Reducing the                                                                                                                                                                                    STORE WASTE
                                                                                                                                                                                                BREAKDOWN

waste we pass on
to consumers.
“It acknowledges        As our waste journey continues, we’re
                        turning our mind to the waste we
                                                                  posts, plastic matting, buckets and
                                                                  other products. Three more stores
that our                send home with our customers and          were added to the Soft Plastics
                        our goal to have 100% sustainable         Recycling Scheme this year.
traditional take,       packaging by 2025.

make and waste          Sometimes, it’s little things that add
                                                                  Kathmandu Sustainability Specialist
                                                                  Shannon Ball says, “A key project is                                                                                             43   % paper/
                                                                                                                                                                                                          cardboard
                        up to make a big difference. Our store    getting better information on which
approach is not
going to sustain
                        staff started asking a simple question:
                        “Do you need a bag?” This got
                                                                  of our stores have good recycling
                                                                  options and which don’t. We are                                                                                                  15  % polybags and
                                                                                                                                                                                                         shrink wrap
                        customers to pause and think,             aiming to process as much recycling
our communities         resulting in 6% fewer bags used per       locally as we can, and we are also
                                                                                                                                                                                                   18  % co-mingled
                                                                                                                                                                                                         recycling
                        transaction compared to last year.        looking for ways to reduce the size
in the future.”                                                   of our polybags and introduce
                        We’ve set up a working group to look

OUR PACKAGING FUTURE
                        at a more sustainable alternative to
                        the plastic delivery satchels we use to
                                                                  more recycled content into our
                                                                  packaging too.”
                                                                                                            New Moana packs made from
                                                                                                                                                                                                   24   % non-recycled
                                                                                                                                                                                                          material

                        deliver online orders.                                                              ocean plastics.
AUSTRALIAN PACKAGING
                                                                  TENT COLLECTORS HELP REFUGEES
COVENANT ORGANISATION   As members of the Australian
                        Packaging Covenant Organisation           Some of our returned tents have
                        (APCO), we subscribe to their vision      found a new home at refugee camps,
                        for a future where packaging is           thanks to the work of Hastings-based
                        circular.                                 non-profit Tent Collectors.
                                                                                                            Kathmandu Store Design and                 Sometimes, little things can make a
                        “This vision recognises that our planet                                             Development Manager Abigail                big difference.”
                                                                                                                                                                                              “Sustainable
                        has finite resources,” APCO says in its   The organisation saves tents from
                                                                  landfill and collects them from
                                                                                                            Wasmer says the approach to store
                                                                                                            design is about continuous
                                                                                                                                                       This year, we switched 32 new and      store design is
                        2020 report our packaging future.
                        “It acknowledges that our traditional     festivals to be redeployed to Syrian      improvement. “Sustainable store
                                                                                                                                                       refurbished stores to LED lighting,
                                                                                                                                                       which has helped us towards our goal
                                                                                                                                                                                              not something
                                                                                                            design is not something you achieve
                        take, make and waste approach is not
                        going to sustain our communities in
                                                                  refugee camps in Europe, including
                                                                  the Greek island of Samos, which          and tick a box and are done with.
                                                                                                                                                       of becoming net-zero carbon by 2025.   you achieve and
                        the future.”                              currently houses 5,900 people in a
                                                                  military camp built for 600. Tents that
                                                                                                            It’s a constant process of getting
                                                                                                            better. Every year, we introduce new
                                                                                                                                                                                              tick a box and are
                        PROJECT POLYBAG COMING BACK
                                                                  were returned by customers and            elements and new practices.”                                                      done with. It’s a
                        FROM DISRUPTION
                                                                  couldn’t be resold as seconds were
                                                                  donated to Tent Collectors.
                                                                                                            A big focus has been on selecting                                                 constant process
                                                                                                            natural and sustainable materials,
                        Our journey to zero waste continues
                        with a new signpost in place – a zero-
                                                                                                            shifting from particleboard to solid                                              of getting better.
                                                                  CHRISTCHURCH STORE WINS RED
                        waste target for 2020. Cardboard and      AWARD FOR SUSTAINABILITY
                                                                                                            and plywood timbers that can be
                                                                                                            recycled and reused.
                                                                                                                                                                                              Every year, we
                        plastic recycling is the cornerstone of
                        our zero waste project, which took a      Our new flagship store in Christchurch    Abigail says the approach is also
                                                                                                                                                                                              introduce new
                        big hit in New Zealand when China
                        shut its doors to offshore plastic
                                                                  – built with our focus on sustainable
                                                                  and reusable materials – was
                                                                                                            about bringing suppliers and
                                                                                                            contractors on the journey with us.
                                                                                                                                                                                              elements and new
                        recycling.                                recognised with an award for
                                                                  sustainability by the New Zealand
                                                                                                            “In Melbourne, our shopfitters have an                                            practices.”
                                                                                                            entirely solar-powered factory, and we
                        We went from 100% of plastic              Retail Interiors Association. The RED     give contractors reusable coffee cups                                             ABIGAIL WASMER
                        polybags recycled in all New Zealand      awards are the country’s premier retail   and water bottles so that they can
                        stores in 2018 to just over half our      design awards, and the sustainability                                                                                       STORE DESIGN AND
                                                                                                            reduce their waste. We’ve also put
                        stores last year. Now we are              category judges fit-outs on materials,                                                                                      DEVELOPMENT MANAGER
                                                                                                            water-filling stations in stores so that
                        expanding our partnership with New        equipment and services.                   anyone can come in and refill a bottle.
                        Zealand-based plastics recyclers who
                        are turning soft plastics into fence
46                                   OUR COMMUNITY                           47

                                                                      Ta matou
                                                                      hapori.
                                                     Our community.
Molly Spark competing in her first
Kathmandu Coast to Coast race.
48                                                                                              OUR COMMUNITY                                                                              49

Positively
changing lives.

Last year, we announced our new           raising more than $10,000 for
social impact goal - intending to         charities that support and celebrate
positively change 100,000 lives by        rainbow youth.
supporting our workers in our supply
                                          The Minus18 Foundation is Australia’s
chain, assisting our partners to grow
                                          youth-driven charity for LGBTQIA+
their education programmes in Nepal
                                          youth. For over 21 years, Minus18 has
and providing adventure
                                          been running high-impact LGBTQIA+
opportunities to our Summit Club
                                          events, workshops and campaigns,
members.
                                          creating peer support, safe spaces
This year, although many events we        and inclusive environments across
planned were interrupted by Covid-19,     Australia.
we’ve still made progress on this goal.
                                          Qtopia is a social service for
                                          LGBTQIA+ young people, their
CELEBRATING DIVERSITY                     whanau and their communities in
We wrapped our International              Canterbury. Using education,
Women’s Day campaign and our              advocacy, support and celebration,
Pride campaign into a project we’ve       Qtopia aims to create positive and
code-named Positive Days of Impact.       lasting social change.

This supports our goal to be best for     We encouraged customers to donate
people and aligns with our new social     online or in store, and we matched
impact strategy.                          donations. We also organised a
                                          fundraising 'micro-adventure' event
For International Women’s Day (IWD),      in Sydney.
celebrated annually on 8 March, we
partnered with the charity ActionAid,
                                          PARTICIPATION
which supports women across the
globe to break the cycle of poverty       Participation means going beyond
and to live free from violence. We        learning about our differences to
asked customers to join us with in-       living and experiencing them. This
store fundraising and donated 1% of       year, we looked to take a more active
                                          role in our community. We partnered
our sales on IWD to ActionAid.
                                          with Maori language immersion
We also put on two fundraising            school Te Whanau Tahi to connect
events in Sydney and Auckland.            students learning about the outdoors
These ‘micro-adventures’ took women       with our teams and share our
into the outdoors with experienced        experience of the outdoors.
female guides.                            We further developed relationships                                                                                         Pride campaign was
                                          with rainbow youth organisations                                                                                           communicated online
As part of the campaign, we profiled                                                                                                                                 and in store.
                                          Qtopia and Minus18 who support our
three inspiring women from our            growing awareness and
community who are working towards         understanding while we support them
gender equality.                          in their objectives.
                                          Our ongoing commitment is to
PRIDE AT KATHMANDU                        support young people in outdoor
We believe adventure is for everyone,     adventures.                             TOTAL FUNDS   TOTAL DONATED TO            TOTAL DONATED TO            TOTAL DONATED TO

regardless of what part of the                                                    DONATED
rainbow you hail from. We celebrated
                                                                                                 MINUS18        $5,684.13    QTOPIA        $6,245.43   ACTIONAID $16,468
Pride from January to March by
50                                                                                                                           OUR COMMUNITY                                                       51

Products that
give back.

We love creating products that give
back to the causes dear to our hearts.
                                          ARTIST SERIES T-SHIRT
                                                                                   “I feel
                                          Our latest Artist series T-Shirt was
Our Nepalese-made Christmas
                                          created by Ash 'Chimp' Sisson, a New     independent
ornament is inspired by the Himalayan
red panda. The pandas were given to
                                          Zealand street artist known for his
                                          vibrant murals.
                                                                                   and proud of
customers who made a $10 donation
to the Australian Himalayan               Armed with a sketchbook and
                                                                                   myself.”
Foundation and New Zealand                Kathmandu gear, Chimp took part in
Himalayan Trust and 100% of the           Kathmandu’s Nepal Treks to Everest       SABINA
donations were passed on to the           Base Camp to draw inspiration from       TRADITIONAL NEPALESE KNITTER
charities. This year, we raised $89,586   the stunning Himalayas – a once in a
with our Christmas giving programme.      lifetime trip that he found eye-
                                          opening.
                                          His design illustrates the story of a
                                          journey between two cultures – Nepal
                                          and New Zealand – through the
                                                                                                                             FUNDRAISING FOR
                                          ambitious upward gaze of an                                                        OUR COMMUNITIES
                                          adventurous woman.
                                          $5 from the purchase of every limited
                                          edition tee goes directly to the
                                          Australian Himalayan Foundation or                                                      KHUSI BEANIE           ARTISTS TEE
                                          the Himalayan Trust of New Zealand.      AUSTRALIAN BUSHFIRE SUPPORT
                                                                                   Last summer was one of the worst
                                          KHUSI BEANIE                             on record for Australian bushfires.
                                          Khusi means ‘happy’ in Nepalese.         We launched an appeal to raise funds
                                          Our Khusi Beanie reflects the support    for the Australian Red Cross Disaster
                                          that this product provides for           Relief and Recovery Fund.
                                          traditional Nepalese knitters.
                                          For 31-year-old Sabina, who
                                                                                   We promised to match funds donated
                                                                                   by our customers up to $50,000.             23,332
                                                                                                                                 TOTAL UNITS SOLD
                                                                                                                                                    $33,940
                                                                                                                                                        AMOUNT RAISED
                                          experienced regular headaches,           Our customers rose to the challenge
                                          knitting is both a livelihood and a      and donated just over $60,000, which
 The panda that gives back.               support unit.                            saw more than $110,000 donated
                                                                                   in total.                                       XMAS GIVING      AUSTRALIAN BUSHFIRES
                                          “I feel a strong connection with the
                                          other knitters. We work as friends and   LIZARD TEE APPEAL
                                          this helps us enjoy our work,” Sabina
                                          says.                                    Our vintage Lizard tee made a
                                                                                   comeback this year to join in the fight
                                          Sabina uses her income on household      for Australian native species impacted
                                          expenses for her family – the rest she   by bushfires. All profits from the

                                                                                                                             $89,586                $110,053
                                          saves for a rainy day.                   limited edition tee were donated to
                                          This was the fourth year that the        the work done by Greening Australia
                                          Khusi Beanie has been part of            to conserve and restore wildlife              FROM CUSTOMERS         AMOUNT RAISED
                                          our range.                               habitat. Sales continue, and $4,000
                                                                                   has been raised so far.
                                                                                                                                                                           Sarah keeping cosy in our
                                                                                                                                                                           Khusi Beanie made in Nepal.
52                                                                                                                                        OUR COMMUNITY                                                                                                            53

                                                                                                  Competitors encounter multiple
                                                                                                  river crossings as part of the annual   ADVENTURE
                                                                                                  Kathmandu Coast to Coast race.
                                                                                                                                          SPONSORSHIP BY
                                                                                                                                          NUMBERS

                                                                                                                                                             24
                                                                                                                                                             TOP TIER WINNING
                                                                                                                                                             APPLICATIONS
                                                                                                                                                                                                            4
                                                                                                                                                                                                            STAFF
                                                                                                                                                                                                            ENTRIES

                                                                                                                                                                                                                                       WINNERS VISITED:

                                                                                                                                                                                                                                       PHILIPPINES
                                                                                                                                                                                                                                       NEPAL
                                                                                                                                                                                                                                       INDIA
                                                                                                                                                                                                                                       BHUTAN
                                                                                                                                                                                                                                       GREENLAND

                                                                                                                                                             332
                                                                                                                                                             TOTAL
                                                                                                                                                             APPLICATIONS
                                                                                                                                                                                                            698
                                                                                                                                                                                                            VOUCHERS
                                                                                                                                                                                                            DISTRIBUTED
                                                                                                                                                                                                                                       AUSTRALIA (COFFS HARBOUR AND
                                                                                                                                                                                                                                       TASMANIA)
                                                                                                                                                                                                                                       PERU
                                                                                                                                                                                                                                       NEW ZEALAND
                                                                                                                                                                                                                                       NORWAY
                                                                                                                                                                                                                                       ENGLAND
                                                                                                                                                                                                                                       TANZANIA

Getting our community                                                                                                                     Adventure
into the outdoors.                                                                                                                        sponsorship
Part of our best for people five-year     members of all levels. Each Run Club      SUMMIT CLUB VOLUNTEERING                              In 2007, Bronwyn Griffin's life was      “The weather on the mountains is           Bronwyn says the trip finished with a
goal is about inspiring and equipping     session offers professional coaching                                                            suddenly and irreversibly changed        notoriously unpredictable, and we          rush of accomplishment for doing it
                                                                                    We worked with charity partner
people to discover their potential        focusing on different skills, then puts                                                         when her husband and the father of       were met with a full spectrum of           together.
                                                                                    Tangaroa Blue to host six volunteering
through education, personal               trail running techniques into practice                                                          her children was taken by a sudden       weather – crushing heat, pouring rain,
                                                                                    events. Across all six events, 318                                                                                                        “Our love for hiking together is now
development and wellbeing.                all over the city. Last year, we held                                                           fatal heart attack.                      snowfall and strong winds that
                                                                                    participants collected 672kg of                                                                                                           firmly embedded, and we can’t wait
We committed to giving 10,000             more than 80 running sessions for                                                                                                        almost swept us off our feet.”
                                                                                    rubbish.                                              “At the time, I was pregnant with our                                               to plan our next adventure together.
Summit Club members access to             2629 participants across Christchurch,
                                                                                                                                          third child, our middle child was nine   Despite some challenging times,            We’ll continue to put our efforts
outdoor adventure and volunteering        Adelaide and Melbourne.
                                                                                    KATHMANDU COAST TO COAST                              months old and our oldest was just       Bronwyn says the beauty of the track       towards the prevention of early
opportunities with free events.
                                                                                                                                          two years old. Since Nick’s death, we    and their fundraising efforts kept their   cardiac death, which is an issue close
                                          SUMMIT CHALLENGE                          We supported the Coast to Coast                       have forged on together to live an       spirits up.                                to our hearts.”
ADVENTURE SERIES                                                                    Rangers again this year in their work                 active and healthy lifestyle with a
                                          We challenged Summit Club members                                                                                                        “We saw so many animals and plants
                                                                                    to give young people opportunities to                 shared passion for mountain biking.”
Although Covid-19 meant that only         to climb the height of Everest to raise                                                                                                  that were just beaming with vitality
                                                                                    participate in the Kathmandu Coast
three of our 16 adventure series events   money for our partner charities that                                                            This January, Bronwyn and her kids       and life we couldn’t help fall in love
                                                                                    to Coast race. Run by the Aspiring
went ahead, we did connect with 52        support Nepal. The New Zealand                                                                  (now 11, 12 and 13) decided to take on   with the Cradle Valley,” she says.
                                                                                    Youth Development Trust, the Rangers
participants in this guided hiking        event, Summit Challenge, had 220                                                                the Overland Track (including Cradle     “The slow pace allows you to soak up
                                                                                    programme gives kids exposure to
programme.                                participants who raised $39,295 for                                                             Mountain) in Tasmania. With pack         the vibrancy, diversity and complexity
                                                                                    outdoor activities as well as
                                          the New Zealand Himalayan                                                                       loads varying from 15kg to 24kg,         of the environments you pass through,
                                                                                    developing lifelong skills and
RUN CLUB                                  Foundation. The Challenge included                                                              the four spent seven days in the         and I loved the places that
                                                                                    introducing them to sustainable
                                          three group hikes held in Wellington,                                                           mountains and raised $5,000 for          conversations go when you have so
Run Club is a weekly free trail running                                             knowledge and values.
                                          Christchurch and Auckland.                                                                      heart research.                          much uninterrupted time together.”
programme for Summit Club
54                               OUR TEAM                      55

                                                        Ta matou
                                                        ranga.
                                            Our team.
Our visual merchandising
team at our new flagship store
opening in Christchurch.
56                                                                                                             OUR TEAM                                                                 57

Our values shine
through our people
in challenging times.
He toka                    Like most businesses around the
                           world, the Covid-19 pandemic forced
                                                                     This year has shown our teams to be
                                                                     resilient and focused on doing their
                                                                                                               CELEBRATION
                                                                                                               It’s not enough to simply accept our
tu moana                   us to do things differently. We have      best under unfamiliar circumstances.      difference so we believe they should
                           seen our core values come through in      Our people have been the driving          be embraced and celebrated.
PEOPLE WHO ARE STEADFAST   the way our teams responded to a          force behind the positive change that
                           year of change and uncertainty.           makes us stronger as a business.          One way we celebrated our diverse
AND NOT EASILY SWAYED BY                                                                                       workforce was with a diversity video
STRONG COMPETITION         We witnessed resourcefulness as our                                                 featuring four team members sharing
                           people adapted with agility to new        OUR JOURNEY TO INCLUSION                  their stories and experiences of same-
                           ways of working in the absence of         Kathmandu is an incredibly diverse        sex families, gender transition, spina
                           travel and the closure of office spaces   workplace and each team member            bifida, use of a wheelchair and
                           and embraced new ways of                  brings their own experience, values       autism. The message behind our
                                                                     and identity to work with them each       this is me video was that, while we’re
                           collaborating and communicating —
                                                                     day.                                      all different, we’re all the same too.
                           from Facebook Workplace updates to
                           utilising available technology for        This diversity is core to our business,   In March, we achieved our Rainbow
                           collaboration and communication.          and our goal is to leverage this          Tick a celebration for 17% of our
                                                                     strength and strive to be a truly         workforce that identifies as LGBTQIA+.
                           Openness and directness were
                                                                     inclusive organisation where everyone     We celebrated women in our business
                           essential for our team to stay            has a place.                              through participation in events such
                           connected and informed and safe and
                                                                     We have committed to this journey to      as the M2 Journey to Excellence, and
                           as discussions about personal
                                                                     inclusion, both within our brand and      we celebrated our New Zealand
                           wellbeing became more crucial                                                       cultural heritage across the year.
                                                                     beyond, as we want to bring our
                           than ever.
                                                                     industry and community so that            We have challenged ourselves to
                           More than anything, the passion and       everybody we reach feels seen, heard      celebrate diversity more in our brand
                           determination of our teams drove          and valued.                               and marketing content from now on.
                           them to find new ways to deliver          Our diversity programme has three         Our future diversity strategy includes
                           results and keep our business             objectives: education, participation      a celebration of the faiths, cultures
                           operating.                                and celebration.                          and other differences that make our
                                                                                                               people who they are.
                           These changes led to the introduction
                           of a permanent flexible working policy    EDUCATION                                 The journey continues.
                           that allows support staff to manage       We strive to educate ourselves but
                           their workload and personal               also look at how we can influence our
                           requirements through flexibility in       wider communities. We create
                           work time and location, with the          opportunities to learn from others
                           ability to work 40% of their hours        both in and out of our business.
                           from home for many team members.          This year, we have grown our whanau
                                                                     by developing new relationships in our
                           We have also flipped our approach to      wider communities.
                           performance management on its
                                                                     These included Bros for Change, who
                           head and supplemented annual
                                                                     shared Maori culture, and Anton
                           reviews (look back) with regular          Matthews, who led group classes on
                           ongoing coaching (look forward) to        cultural awareness and te reo Maori.
                           drive development and results.

                                                                                                                                                        Sharmali exploring the native
                                                                                                                                                        bush on the Paparoa Trail in
                                                                                                                                                        New Zealand.
58                                                            OUR TEAM                                                                                                                   59

                                                              Measuring the
                                                              diversity in our
OUR DIVERSE TEAM
(BY THE NUMBERS)
                                                              diversity.
                                                              In November, we conducted a team           KATHMANDU ACHIEVES THE                     GEARING UP ON CAPABILITY
                                                              diversity survey to get a better picture   RAINBOW TICK!

53                              65          25%
                                                                                                                                                    We took a more strategic approach to
                                                              of what our workforce looks like.                                                     capability this year launching our
                                                                                                         The Rainbow Tick is a certification
                                                              As expected, we found a diversity of       that helps organisations ensure they       Gear Up Curriculum to support the
                                                              nationalities, ethnicities, faiths,        are safe and welcoming workplaces          development of the core skills and
 DIFFERENT                      LANGUAGES   SPEAK MORE THAN   cultures and abilities and were able to    for rainbow team members.                  competencies that allow our teams to
NATIONALITIES                                ONE LANGUAGE     form a picture of our team.                                                           be successful. The curriculum was
                                                                                                         To achieve the Rainbow Tick,               designed to support our Next Level
                                                              There is a lot of diversity in our         Kathmandu was found to have fully          business strategy, providing key
                                                              diversity. Our teams encompass the         achieved success in five areas:            competencies to drive our business
                                                              cultures, faith, values and personal       strategy and policy, employee              success, including critical thinking,
                                                              characteristics of the world we live in.   engagement and organisational              influence skills and change leadership.
                                                                                                         support, external engagement,
                                                              We discovered that 11% of                  organisational development, and            Individuals work with their managers
                                                              respondents identified themselves as       monitoring.                                to identify development objectives
                                                              having a health issue (including                                                      and create an individual develop plan
                                                                                                         The Rainbow Tick is a New Zealand-         from the curriculum and annual
                                                              mental health) or disability that          based certification. We believe this
                                                              prevents them from doing activities                                                   training calendar. Gear Up means
                                                                                                         certification reflects our business        learning and development can be
                                                              that others do. This broad definition of   across all locations, while we work        planned strategically and resources
                                                              'disability' gives us a new perspective    towards achieving a ranking in the         used more effectively to the benefit of
                                                              on supporting our teams.                   Australian Workplace Equality Index.       our teams and the business.
                                                              We learned that about 25% of our
                                                              team speak more than one language          SUPPORTING WOMEN IN OUR
                                                              and that after English, Spanish and        BUSINESS
                                                              French are the most common                 This year, we looked for new ways to
                                                              languages spoken by our team               support and develop women in our
                                                              members.                                   business to thrive in their roles and as
                                                                                                         leaders. Women from across the
                                                              The data collected will help us to         business attended conferences and
                                                              make sure that everyone in our             forums to network with and learn
                                                              workplace has representation and a         from other successful women.
                                                              voice and that our diversity activities
Ka ora pea i a koe,                                           are aligned with our people.
                                                                                                         Our teams can also now look to even
                                                                                                         more internal role models as more
ka ora koe i a au                                             The third-party anonymous survey
                                                              had a high response rate with 42% of
                                                                                                         women joined the executive
                                                                                                         leadership team, bringing the number
                                                              team members completing the                of female senior leaders to five this
IN ANY GROUP ENTERPRISE,                                                                                 year.
THE PERFORMANCE OF EACH                                       survey, well above the industry
MEMBER IS KEY TO ITS SUCCESS                                  benchmark standard of 30%.                 The next step is the development of a
                                                                                                         formal policy and framework to
                                                                                                         support women in their career
                                                                                                         development at Kathmandu.

                                                              Whakamanahia
                                                              te wahine
                                                              EMPOWER WOMEN
Sharmali exploring the native
bush on the Paparoa Trail in
New Zealand.
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