FAQ Sustainability

1. SUSTAINABILITY GOALS

1.1. WHICH ARE THE SUSTAINABILITY GOALS OF ALSICO GROUP?

Our company has two guiding sustainability objectives that define our actions until 2034;

1. Net zero + which has to lead to a reduction of 90% of CO2eq emissions compared to base
year 2022. Tools we will put in place: a yearly carbon footprint, a net zero plan verified by the
science-based targets initiative, an environmental due diligence assessment tool on the whole
supply chain. Two of the 7 SMART-subgoals will be major drivers to reach net zero:
100% of our products shall be eco-designed aiming at maximum lifespan, repairability and
recyclability AND 100% of our raw materials shall comply with our preferred inputs list*
(compliant with the ZDHC roadmap to zero, maximal microfibre reduction, no fossil fuel-based
fibres, recyclable fibres, cotton sourcing from 3rd party verified sustainable sourcing programs).

2. Living wage + which is aiming at continuous monitoring of living wage at all Alsico locations,
closing existing gaps in due time. Tools we will put in place: a Living Wage Calculator (based on
the Anker methodology) for each Alsico location, a social and human rights due diligence
assessment tool on the whole supply chain. We have 5 subgoals ranging from a hardship fund
for our employees that allows them to weather unexpected situations with severe financial
impact, to gender equality, including leadership programs and special protection of young
employees.

Adding to that, we strive to have our processes verified in the context of external
audits/assessments –Oeko-Tex STeP will be the standard for our productions and business units,
as well as Global Recycling Standard/GRS, Fairtrade-FLOCert, ISO 14001 and ISO 9001. Through
this powerful improvement cycle, we can closely monitor our decisions so that we effectively
achieve our objectives.

1.2. HOW WILL YOUR ORGANISATION REDUCE THEIR IMPACT ON THE ENVIRONMENT
AS PART OF THEIR SERVICE OR PRODUCT OFFERING?

The targets are the result of priorities that have emerged thanks to the carbon footprint
measurement Alsico Belgium has been carrying out since 2017 and the due diligence on social
risks it has been systematically carrying out since 2018.
Within this framework, we are able to draw up an annual action plan. All actions therein must
lead to one of the two objectives. Repeating the due diligence and CO2-footprint annually
allows us to evaluate and adjust actions where necessary.

Auteur: Wouter De Broeck www.alsico.com

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Key SMART-actions in achieving the targets are 1. Aligning procurement with our goals, based
on a preferred inputs list and continuous due diligence AND 2. The living wage monitor and
continuous due diligence.

1.3. WHAT IS THE COMPANY’S SUSTAINABILITY POLICY?

Alsico sees sustainability as a continuous impact management based on a long term

commitment with its stakeholders. On the scale of four levels – 1. Compliance 2. above
compliance 3. stakeholder risk management and 4. stakeholder long term commitment. We
choose the highest level because it is in full alignment with our core values: trust, respect and
commitment and with our purpose: making life better for people at work.

1.4. DOES THE COMPANY HAVE A NET ZERO PLEDGE? A SCIENCE BASED TARGETS?

Alsico group has made the commitment with the Science Based Targets initiative, as is published
on its website. The company has committed itself to near term as well to long term targets. The
targets will be planned based on our overall pledge to net zero by 2034, being assessed and
approved over the next 2 years.

1.5. DOES THE COMPANY TRACK / MONITOR AND ANALYSES GHG EMISSIONS?

As from 2022 Alsico Group started reporting on the GHG emissions of all operations, including a
total of 17 business and production units. Carbon footprint will be measured on a yearly basis in
order to track progress.

1.6. WHAT CATEGORIES OF GHG EMISSIONS ARE MONITORED?

The yearly carbon footprint tracks all scope emissions – scope 1, 2 and 3 – which encompasses
upstream and downstream value chains, including end-of-life. Measurement of CO2eq follows
the Green House Gas protocol guidelines. Both general and industry specific guidance of the
Science Based Target Initiative are taken into account.

1.7. ARE THE TARGETS PUBLICLY AVAILABLE?

The net zero pledge is published on our website. And so are the results of our yearly carbon
footprint, that are included in the sustainability report.

1.8. DOES THE COMPANY HAVE THE EMISSIONS DATA VERIFIED?

Alsico Group has partnered with SGS to verify the data collection and the emissions calculation.
SGS verifies data entry and emissions factors used, whilst physically auditing two out of 17
operations. It then gives a ‘limited assurance’ 3rd party verification.

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 1.9. DOES THE COMPANY MONITOR BUSINESS TRAVEL EMISSIONS?

Business travel emissions are calculated as a part of the scope 3 emissions calculation. They are
reported separately in our sustainability report.

1.10. WITH WHICH SDG’S DO THE COMPANY SUSTAINABILITY GOALS ALIGN TO?

Alsico Group’s sustainability goals are aligned with the following SDG’S: SDG 1, 3, 4, 5, 6, 7, 8,
10, 12, 13, 14 and 15. Please see below for the specific SDG targets we link our goals to.

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Auteur: Wouter De Broeck www.alsico.com

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2. RAW MATERIAL

2.1. WHAT FABRICS DOES THE COMPANY USE?

The Alsico Group in majority uses polyester rich blends, varying from near 100% polyester in
the cleanroom industry to blends where cotton or man-made fibres take a share of 30% or
more. Increasingly those fibres are made with recycled and/or bio-based renewable origins.

2.2. DOES ALSICO OFFER RECYCLED OR RENEWABLE FIBRES?

We offer several core fabrics that compose of recycled fibres These include ALSIFLEX™; a
group of stretch fabrics in various weights, made from a combination of recycled and
renewable fibres that we have developed in collaboration with our suppliers. In the recently
published 'Fibre Matrix' of the Dutch textile federation Modint - see below - the raw
material components of ALSIFLEX™ are all in the 'preferred' or 'better' category
A production chain analysis showed that this sustainable stretch fabric emits up to 72% less
CO2 than a comparable polyester-cotton fabric of a similar weight and construction.

Compared to other fabrics ALSIFLEX™ emits two thirds less CO2 per kilo of material on
average. The analysis was carried out by an external party using a 'single criterium LCA'
according to the PAS2050 criteria for CO2 product foot printing. Our fabrics are also ideally
suited for recycling into fibres. The large volumes in that fabric could provide the necessary
critical mass for recycling after use. Some of our suppliers are already far enough along in
the mechanical recycling of polyester-cotton into usable fibres. Also, we are part the
European ReHubs platform, where we find the right partners to scale up fibre-to-fibre
recycling project.

Auteur: Wouter De Broeck www.alsico.com

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 2.3. DOES ALSICO OFFER WORKWEAR IN ORGANIC OR FAIRTRADE COTTON?

Offering organic cotton in workwear has proven to be difficult due to premium prices and
limited supply – which is untenable in an industry that requires guaranteed quality over the
time of the contract. Fairtrade sourced cotton is sufficiently available in the market, but only
44% Fairtrade cotton is labelled organic. Customers buying Fairtrade sourced cotton cannot
not be sure whether it is organic. Fairtrade does have a fully traceable scheme – the black
label - where you can trace back the fibre to the plantation and a mass balanced scheme –
the white label – where Fairtrade cotton fibre can be mixed with conventional cotton fibre
at the fibre blend stage just before spinning. Both schemes guarantee a minimum price to
the farmers – adjusting to market price when needed. The Fairtrade premium goes to the
cooperations that manage the small scale production. We partner with Fairtrade and our
major suppliers to offer all of the above options.

2.4. WHAT IS BETTER COTTON?

Better Cotton is a cotton sourcing program that offers training to cotton farmers, focusing
on obtaining more yield with controlled water stewardship and using less pesticides. Better
Cotton farmers are also monitored when it comes to working conditions and avoiding child
and forced labour. It currently uses a mass balanced (volume tracking) system that allows
the mix of verified ‘better cotton’ with conventional cotton at the ginning stage (separation
of cotton fibres from the seed heads).
Over % of ALSIFLEX™ consists of cotton that we purchase through our membership of the
Better Cotton Initiative. The mass balanced system ensures that the cotton volumes we

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 order launch an equal number of tonnes into production at plantations that meet Better
Cotton’s criteria

2.5. WHAT IS A SUSTAINABLE TEXTILE?

Environmental and social impacts occur at different stages of the global and complex textile
supply chain. Therefore it is hard to make a clear ranking of what makes a more/less
sustainable textile due to all the variables.
When it comes to CO2eq emissions it is clear that virgin fossil fuel based fibres can do more
harm than regenerated cellulosics or natural fibres. However, natural fibres such as cotton
(excluding organic cotton) can also have a substantial environmental impact, because
regular cotton is responsible for 16% of worldwide pesticide use and as a monoculture is a
killer of the planets fast degrading biodiversity. Water consumption of 1kg cotton lint can be
as much as 10.000 litres, contributing to water scarcity in regions that have limited – green –
water resources.
With effects of climate change already being felt in some typical cotton growing regions,
conditions are expected to harshen. Additionally, Cotton farming has still documented cases
of forced and child labour, while overall working conditions are harsh and non-compliant
with ILO-conventions.
Impacts like these need to be closely watched in fibres that are often presented as
‘sustainable’. Considerations of the production of man-made fibres and back again into
recycled fibres. Such as the extra energy used and transportation methods and kilometres in
the new to build recycled fibre supply chain need to be made to make accurate impact
calculations. When it comes to a whole life cycle the general rule is that textiles that
guarantee the longest possible use are to be considered the most ‘sustainable’

2.6. WHAT TYPE OF DYES ARE USED IN THE FABRICS?

Fabrics are coloured using dyes which can be applied if a variety of ways. For our workwear
synthetic dyes are the most common type of dyestuff used. Providing good reproducibility,
wash fastness, light fastness and durability.
Dye colouration can be applied at various stages of a fabrics manufacture : Fibre (Dope
Dyed), Yarn Dyed, Piece dyeing, Over dyeing and Printing. For Polyester Disperse dyes are
used and for cellulosics used with the Workwear sector – Vat dyes are the most common
due to their excellent colour fastness and durability.

2.7. HOW RECYCLED COTTON/POLYESTER IS MADE?

The quality of a recycled fibre is dependent upon the type of recycling technology used.
Cotton that is mechanically recycled will result in shorter fibres, which limits the spinning
methods and yarn quality produced. Therefore does not have the same quality aspects :
potentially lower tear strength, Martindale abrasion, tensile strength and other key
durability parameters. As an alternative, ‘ oft mechanical’ recycling – the process which

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 reverses the weaving and spinning processes very gently. This could provide better
consistency and length of fibres, therefore a potential for better quality results. Thermo-
mechanical recycling of monomers, in which the process involves vapourisation – extrusion
and filtration (melting) has provided proof that it can deliver good quality
synthetic/polyester recycled fibre. Chemical recycling of intimate blended polyester cottons;
chemically separating the two fibres back into two separate monomers - are at lab pilot
phase stage. Promising results which are currently being expanded into commercial bulk
processes by various start-ups and organisations world-wide.
Whilst mechanical recycling is cost-effective and has a low energy intensity, thermo-
mechanical and chemical recycling have considerable energy intensity, making the process
less attractive from an economic perspective.

2.8. WHAT ARE THE MAIN ADVANTAGES OF RECYCLED FIBRES?

Recycled synthetic fibres removes the use virgin Petro-chemicals. In the case of recycled
cotton – savings in water consumption, pesticide use and easing of pressure on land and
biodiversity could be experienced
In contrast, no guarantee exists that working conditions will improve with cotton farming
getting under increased pressure. In the polyester supply chain similar savings are to be
expected, as new fossil fuel purchases are avoided. The need for dyeing – with its water
consumption and waste water issues – will however continue to exist in a recycled fibre
supply chain.

2.9. ARE SYNTHETIC FABRICS SUSTAINABLE?

Referring to what we said above about ‘what is a sustainable textile’ there is not one but
several parameters that determine the overall ‘sustainability’ of a textile fabric

Synthetic fabrics have the overall characteristic to be more durable in use.

However, they could be derived from fossil fuels and synthetic spun staple fibres have
shown to produce and increase of microfibre shedding compared to filament yarns. Micro
fibre shedding has been documented, mounting to 35% of all microplastics found in our
oceans.

2.10. DOES POLYESTER RELEASE SIGNIFICANT MICRO PLASTIC IN THE FIRST 5 WASHES?

This is dependent upon whether the fibre is a staple fibre (fixed determined length) or a
filament (continuous) fibre, the fabric composition, the fabric structure and finish applied to
the fabric. Microfibre shedding is said not to be limited to the first washing cycle. The
shedding is a complex problem that occurs at different stages in the upstream and
downstream value chain, including production, cutting and trimming and of course washing.
Available data show that up to 700.000 fibres can be released by each washing.

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 2.11. HOW SUSTAINABLE IS THE ALSI-FLEX FABRIC?

Alsi-flex has a near 80% share of recycled and biobased polyester. The remaining 20% is
cotton sourced through the Better Cotton program. The polyester richness give the fabric a
very high durability – equalling or outperforming all traditional quality standards. This makes
the fabric as such apt for ‘sustainable use’ which is as we saw still the way of reducing most
effectively the social and environmental impacts that are associated with the upstream
supply chain. Being recycled, the polyester in Alsi-flex has also a lower impact in terms of
CO2 emissions compared to virgin polyester. As for the cotton share, we are actively
contributing to a system where cotton production is given incentives to reduces it social and
environmental impacts.

2.12. DO WE USE SUSTAINABLE PACKAGING?

Some business units of the Alsico Group have switched to an approach where plastic
packaging is avoided when possible and replaced by recycled LDPE/polyester where there is
a need to protect the product from over handling.

2.13. HOW ARE SUSTAINABILITY CRITERIA INTEGRATED IN PROCUREMENT?

The following clear requirements are part of the processes in the procurement policy:

- All fabric suppliers must be able to present an Oekotex Standard 100 certificate for the fabrics
they offer us. This guarantees that no harmful chemicals have been used in the treatment of the
fabrics and at the same time that REACH legislation has been complied with.
- All suppliers must - before starting cooperation - sign our Code of Conduct. The code sets out
our minimum requirements in terms of human rights, working conditions and environmental
protection.
- We have legally binding framework agreements with the most important suppliers, which
include the two previous conditions.
- We only work with trusted suppliers, mostly European suppliers with whom we have a long-
term relationship and who give us access to figures, processes and references.
- All suppliers of fabrics and accessories receive an annual transparency survey in which they
indicate both processes and the origin of yarn and fibres, where possible with the exact name of
their supplier. This survey allows us to carry out due diligence that identifies social and
environmental risks deeper in the chain.
- Based on the information given, suppliers are asked targeted questions regarding transparency
and social and environmental risks during regular meetings. In this way, we can further
supplement and expand due diligence. The answers also weigh into the supplier assessment.
- In our own collections, we have opted for more sustainable raw materials and for a design with
an eye on material reduction and reparability.
- Concrete agreements have been made with our suppliers to shorten transport lines.

Auteur: Wouter De Broeck www.alsico.com

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3. PRODUCTION

3.1. DOES ALSICO HAVE ITS OWN PRODUCTION FACILITIES FOR MANUFACTURING?

Our company has its own production units for the manufacturing of our workwear and
protective garments. The units are wholly owned by the company. Local management and
working conditions on site are controlled through processes that are part of an improvement
cycle. These processes are drawn up at the responsible business unit by the production manager
and the sustainability manager and are audited internally. In addition, all workshops have a valid
audit report, drawn up after external audit. Audits are performed by SEDEX, BSCI Amfori, Oeko-
Text STeP and FLOcert. Two productions units in Morocco and one in Tunisia (Monastir) are
certified to produce Fairtrade-labelled garments.
We buy the fabrics directly from suppliers that are assessed on environmental and social
compliance. Basic requirement for every supplier is to sign and actively comply with the code of
conduct. We also demand to communicate about the composition of the fabrics at all times.
For the yarn, we work with COATS, a listed company that has the most knowledge and the best
reputation in the sector and, thanks to its stock market listing, also communicates fully
transparently. We are currently working in partnership on applications with soluble yarns that
allow garments to be disassembled after use and thus more easily recycled into new fibres.

3.2. WHAT IS THE HEALTH AND SAFETY POLICY AT A SICO’S P OD CTION SITES?

The production of workwear is labour-intensive. Alsico employs more than 8000 people in 20
countries. Their health and safety is crucial to our activity. The health and safety policy has of
Alsico Belgium been verified by Oeko-Tex STeP. The Health and Safety Systems of the
production units are audited by a 3rd party together with the environmental and social criteria.
Some examples of good practices in Health and Safety.
Cindico - Morocco: The health and safety policy falls under an autonomous system. The policy is
determined by the social department, consisting of a company doctor, the HR director,
management and employee representatives. An OHS committee (doctor, management,
workers) meets every three months. They meet with all members (management, company
doctor, employee representatives, safety officer). A fire drill is held twice a year. Staff are
trained in the use of fire extinguishers and first aid by Moroccan Red Moon. Every minor work-
related incident is analysed by a committee and measures are taken to prevent future accidents.
All incidents and committee meetings are reported. The health and safety policy has been
audited by Sedex. The audit reports are available.
Coupe-Inter - Tunisia: Labour policy is under an autonomous system: a health and safety at
work committee meets every two months. It consists of a company doctor, workers'
representatives, the management and the safety officer). All meetings and incidents are
reported. the responsibility of the management. The health and safety committee (doctor,
management, employees) is responsible for safety risk assessment, reporting. Close monitoring
of actual health and safety conditions with the aim of improving them (annual action plans of

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the internal prevention committee). Employees receive regular training to deal with safety risks.
Any employee problems can be reported directly (verbally or in writing) to the hierarchy, the
prevention adviser or the committee. The health and safety policy has been audited by BSCI
Amfori. The audit reports are available.

3.3. DOES ALSICO COMMISSION TASKS THROUGH SUBCONTRACTORS? WHICH TASKS

ARE THESE?

We have sufficient capacity in our own production workshops. In exceptional cases, however,
we may be able to call on a subcontractor platform of the group. For example, when it is
necessary to cope with temporary capacity shortages, which have an impact on delivery times.
When selecting those subcontractors, we use the following procedure:
- On-site visit
- Signing of the Code of Conduct
- Machinery inspection
- Social control: requesting proof of salary, employment contracts, permits and payment of
social security
- Interviews with management

Without this prior selection procedure, a subcontractor cannot work for us. In Tunisia for
example, we have a subcontracting platform consisting only of such selected subcontractors.
The aim is to work with them in a continuous and sustainable way.

A good example is how we responded when the Corona pandemic broke out. The same
processes in place in Belgium for hand hygiene, spacing and mask wearing were built in with the
subcontractors. All workers received free mouth masks - made by us - for them and their
families. The platform's management also reports weekly on the local situation; whether there
are cases of contamination, how quarantines are monitored, etc.
Social audit reports exist for the subcontractors in the platform. In terms of quality, they follow
the same processes as those of our own production workshops; all finished products go through
our quality inspection system. We can show reports of that too.
Some of the subcontractors also have certificates and labels, although not always the same
ones. Unifying that is an action point for the future.

3.4. DOES ALSICO MONITOR SOCIAL RISKS IN THE SUPPLY CHAIN?

Based on the results of successive due diligences, we have a very good understanding of social
and environmental risks in the following parts of the production chain: design, CMT, weaving.
Information on T2 and T3 suppliers is incomplete. In this case, we seek assurances from our T1
in the form of audit reports/certificates from their suppliers. The detected risks have been
converted into concrete actions which are reflected in our plan of action. Through our
sustainability report, we communicate the why and the progress of these actions with our
stakeholders.

Auteur: Wouter De Broeck www.alsico.com

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 3.5. DOES ALSICO HAVE A COMMUNITY INVESTMENT PLAN?

There is no community investment plan at Group level. But referring to subgoal 7 of Net Zero +
and subgoal 5 of Living Wage + give room to our units to invest locally/with local partners in
either biodiversity or child care projects. Both can contribute significantly to the wellbeing of
our workers and their families.

3.6. WHAT HAPPENS EXACTLY IN OUR TREE NURSURY IN MADAGASCAR?

Besides the structural actions to improve CO2 emissions, in 2018 we decided to start offsetting
the measured emissions for the part without the purchase of raw materials - transport, energy,
packaging, buildings, end-of-life. We are doing this by working with a Belgian NGO to plant trees
in Madagascar, a country where we also have our own production workshop. We now have our
own tree nursery where local people can work with us in exchange for yield trees such as coffee,
cocoa or lychee. This offers them an alternative to arable farming, which has caused erosion and
the loss of ecosystems and biodiversity in Madagascar.

4. SUSTAINABILITY/GREEN CLAIMS

4.1. WHAT SUSTAINABILITY CERTIFICATIONS DOES ALSICO GROUP HAVE?

At this point Alsico Group has no sustainability certification. There is a good reason for that,
since out units are autonomous from an operational and P&L perspective. Therefore makes
much more sense to have certifications such as ISO or Oeko-Tex STeP at a unit level. As to
this, you can point out that Alsico Group is currently making all of its production units Oeko-
Tex STeP certified.
The next step will be to move towards certifying all units according the Global Recycling
Standard (GRS).
When it comes to bigger commitments this is different. Alsico Group, as a whole, has
become a member of the Better Cotton initiative.
Also the Group has committed to the Science Based Targets, leading to net zero.

4.2. WHICH LABELS CAN WE USE IN TENDERS?

Check the labels at your local business unit and their scope. ISO 9001 and ISO 14001 are
seen as strong indicators of solid management systems. If you have them, use them always.
Never share a label that is not covered by a valid audit. Nor a certificate that does not
cover your unit – for example do not use the Oeko-Tex STeP the GRS or ISO’s of Alsico
Belgium. This will be considered an ‘illegal commercial practice’ by the EU Green Claims
Directive. Be careful and aware of sharing full audit reports of production units, since they
can contain confidential information that we may not wish to disclose.

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 Group membership you can share: the Better Cotton initiative. Commitment to the
Science Based Targets.

4.3. DO YOU HAVE ANY PROCEDURES OR PRODUCTS THAT OFFER AN ENVIRONMENTAL

ADVANTAGE OVER YOUR COMPETITORS WITH RESPECT TO FUNCTIONALITY OR
SUSTAINABILITY?

The EU Green Claims Directive sets huge bars for comparing the claimed environmental
impact/sustainability of certain products with those of competitors, demanding full
comparability based on scientific proof obtained under comparable methods. Therefore we
will refrain from doing so. In order to comply with the EU Green Claims Directive/the UK
Green Claims code, we will refer to LCA (Life Cycle Assessments)/EPD (Environmental
Product Declarations) to substantiate any claims on environmental impact of products. Also
we will use the 3rd party certificates we have as a proof of above law compliance or our
organization, however only and strictly linked to the scope they refer to.

4.4. WHAT IS GRS?

GRS stands for ‘Global Recycling Standard’ and certifies the origin and manufacturing of
recycled content in products. GRS is arguably the most credible standard in the world when
it comes to building a trustworthy ‘chain of custody’ for recycled materials
Starting from the very origin of the ‘waste’ GRS certifies – through on site audit of document
traceability - the ‘recycling’ and several manufacturing steps that follow, up to the finished
product. The entity that sells the product with GRS-content to an end-customer is the last
one to be audited. In our case, that is the business unit. The GRS-logo can be used on
product from 50% recycled content. From 20% GRS-content we can simply claim it as a ‘GRS
certified product’ The GRS logo can – after approval – be used on websites, brochures and
even our end-of-life certificate we give to clients who returned their used clothing.

5. END-OF-LIFE

5.1. DO YOU TAKE BACK USED CLOTHING?

Alsico has created the first full end-of-life hub for used and discarded clothing at its site in
Belgium. Clients are able to send back clothing the deem end-of-life by simply submitting a
form on our website. Clothing has to be clean and free of contamination. Only textiles are
accepted and, when it concerns non-Alsico clothing, a technical sheet giving the exact fibre
composition, is required. The end-of-life hub is compliant with the future Extended Producer
Responsibility that comes into effect as from 1st of January 2025.

5.2. HOW MANY END-OF-LIFE HUBS ARE THERE?

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 Currently there is one hub at the Ronse/Belgian site. Referring to subgoal 6 of our
Sustainability Goals, we will put in place hubs at the other Alsico Group sites. Logistics will
determine the priority locations, with Spain, Czech republic and UK at the forefront.

5.3. WHAT DO YOU DO WITH FABRIC WASTE?

Fabric cutting waste represents a considerable 15% of the fabrics we purchase. Since it
concerns non manufactured, unused fabrics the cuttings are an interesting stream of inputs
for recycling projects. At several production sites there is material-specific collecting of
cutting waste, that is then sent back to a supplier/recycler who will recycle it mechanically in
to new raw material for fabric. The bulk of cutting waste is still used in local recycling
projects for down and fillings.

5.4. WHAT HAPPENS AFTER RECYCLING?

Once a garment is recycled into fibres, the raw material will be sold by the recycler to next
stage – being insulation compressing, non-woven production, mattresses or spinning and
weaving In the latter case we will have to ‘buy back’ the product made from the raw
material we have supplied. Currently several pilot projects are underway, with mechanical,
thermo-mechanical and chemical recycling.

5.5. WHAT HAPPENS TO CLOTHING CONSIDERD FIT FOR REUSE?

Clothing that is fit for reuse at this moment mostly will be offered to NGO’s and charity
institutions. We are exploring a business model where we can align eco-design with
repairing and reselling of clothing. Such a business model is distant from our current core
business, making the project more fit for a venturing model next to Alsico.

6. SUSTAINABILITY STAFF

6.1. DOES ALSICO HAS A SUSTAINABILITY RESPONSIBLE? WHAT DOES THE FUNCTION
ENCOMPASSES?
The person responsible for sustainability and CSR is responsible for the development and
management of the sustainability policy and actions,: stakeholder mapping, materiality
analysis, setting sustainability objectives, setting up relevant actions, annual reporting,
setting and managing indicators, certificates, maintaining contacts with external
organisations, external communication sustainability initiatives and results. At a Group level
the person gets support from dedicated ‘sustainability work groups’.

The sustainability work groups are working together with Alsico Academy on impacts of raw
materials and increasing insight and transparency into the total production chain up to fibre
production. This with a view to increasingly complete due diligence of social and

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 environmental risks. The insights gathered lead to new actions/improvements in terms of
social and environmental impact.
The sustainability manager collaborates with the production manager to manage the
internal management system that prevents, detects and remedies social risks. The
sustainability manager is responsible for overseeing and leading the internal social and
environmental audits. She/he works with local production managers to prepare and follow
up on external audits. She/he works with product expert to develop circular products and
the sustainable collection. She/he works with HR to ensure social compliance within the
company and is responsible for all other communication to stakeholders, internally as well
as externally (including social media and press).

6.2. WHAT TRAINING DOES YOUR COMPANY HAVE IN PLACE TO LIFT EMPLOYEE
COMPETENCE IN RELATION TO SUSTAINABILITY?

Alsico Group has put in place a strategy on group level that points at a gradual knowledge
building at the business unit level. Key to the sharing of knowledge and building competence
will be the various sustainability working groups that are now in place. The Group reporting
has led to an increased awareness of how we should adapt our ERP systems in order to
catch the data we will need when the Corporate Sustainability Reporting Directive comes in
to effect from January 2025. Meanwhile all channels to provide more specific training –
including Better Cotton , BSCI Amfori and UN Global Compact Academy – are open to all
Group members. Regular training survey will scan for specific needs when it comes to
training.

7. DIFFERENTIATION

7.1. HOW CAN ALSICO DIFFERENTIATE ITSELF FROM COMPETITORS IN SUSTAINABILITY?

Thanks to due diligence and CO2 measurement, our sustainability policy focuses on continuous
improvement, without losing focus on our two main objectives.

We are a founding member of the European ReHubs that works actively towards scaling up
textile recycling. As a result, we guarantee a high-quality end-of-life solution in the bosom of a
unique partnership. Returned clothing can be reprocessed into fibre in this way.

Communication to the end-user about the working conditions, the CO2 and water impact, the
CO2 compensation programme and the end-of-life destination can be done via QR codes on
labels sewn into the garments.

We are completely transparent. The client may visit the production site at any time to see and
inspect the operation.

Auteur: Wouter De Broeck www.alsico.com

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We offer the option of contactless size taking, which is time-saving and a suit more comfortable
for the wearer. This is done either through a scan with the smartphone or through a system
where the wearer answers some questions.

We have the expertise to offer a full range of clothing. Not only purely medical clothing, but also
workwear and CE-standardised protective clothing.

We have a unique durable stretch fabric. We can do a sample in quality that we have now.

We guarantee durability at levels of 1. Product 2. Company and 3. Supply Chain through a

process-driven system of internal and external audits. Every claim we make on any aspect of our
sustainability policy we also have it verified by a third party.

Thanks to the size and geographical spread of our company, we can guarantee sustainability
even when we have to move to another group production site in case of calamities.

8. BEST PRACTICES AT ALSICO NV/BELGIUM

1. BECOMING NET ZERO BY 2034

- At Alsico Belgium CO2 emissions were reduced by 37% in 2021 compared to base year 2016.
So we are doing better than our 2021 target. The ambition is to move to net zero through a
strategic choice of raw materials that demonstrably emit less and a consequent choice of clean
energy throughout the supply chain.

2. INCREASING THE SHARE OF RENEWABLES TO 100% BY 2034

- The near term targets we set in our commitment to the Science Based targets will focus on
choosing renewable energy in scope 1 and 2. From our first group reporting we know that we
have some natural gas to replace. The electrification of the company fleet by 2026 should
contribute to making all travel CO2 free.

3. TAKING BACK ALL CLOTHES SOLD FOR RECYCLING

- Over the past 10 years, we have collected over 800 tonnes of clothing for recycling into
insulation. In 2022, we commissioned our End-of-life hub through which we offer customers the
opportunity to return their garments for recycling via simple request via the website. We sort
the garments according to flow - colour/white/unused/.... - and then direct them to suitable
recycling. This can be insulation material, but also new fibres that we can then use for our own
products. As one of the founding members of CircleTex, our company will ensure that there is
an industry-wide system that reports, takes back and recycles all clothing put on the market
with a view to reusing fibres.

Auteur: Wouter De Broeck www.alsico.com

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 4. FAVOURING NEARBY PRODUCTION

- The 2016 CO2 footprint showed that production in Morocco and Ukraine weighed more
heavily in CO2 emissions - due to road transport. Hence the decision to increase production in
our Tunisian workshops - from where supply is by sea + road. Data from our 2020 carbon
accounting show that, thanks to this shift, we emitted 41% less CO2 than in the first year of
measurement.

5. MAPPING THE PRODUCTION CHAIN DOWN TO FIBRE PRODUCERS

- Fourth consecutive transparency survey conducted among direct suppliers -

fabrics/accessories/trade products. All T1 suppliers are known, > 50% of all T2 are known,
estimated < 20% of T3 are known. A total of 67% of our procurement volume comes from
suppliers that provide full or partial insight into their supply chains.

6. INCLUDE TRANSPARENCY AND ACCOUNTABILITY OF DIRECT SUPPLIERS IN THEIR

EVALUATION

- Procedure includes signing a 'supplier agreement', which among other things requires signing
our Code of Conduct. Questions about transparency, social and environmental risks deeper in
the chain are included in the regular supplier assessment. This is part of our 'sustainable
procurement' process, which focuses on the ISO 20400.

7. CHECK PRODUCTION WORKSHOPS ON THEIR GENDER AND ANTI-DISCRIMINATION

POLICIES

- Has been done as part of a large 'post-corona welfare survey' of workers in Tunisia - Is part of
the processes that ensure that there are no violations of the 8 fundamental ILO conventions in
the workshops - social management system aimed at prevention and improvement.

8. IDENTIFY, ADJUST/IMPROVE EXISTING GRIEVANCE MECHANISMS FOR ANONYMOUS

COMPLAINTS

- Has been done. Meanwhile, we have partnered with &Wider to map the concerns of our staff
in Tunisia. This will give us an insight into the risks and improvements we can pursue in terms of
working conditions. Employees can also use the system to raise abuses if necessary.

9. TRAINING FOR BUYERS/PLANNING ON THE SOCIAL AND ENVIRONMENTAL RISKS THEY

CAN INFLUENCE THROUGH THEIR DECISIONS.

- Purchasing and planning are closely involved in the transparency survey, due diligence and
evaluation of T1 suppliers. After the supplier agreements are issued, support and training will be
provided to ensure the implementation of the processes based on ISO 20400 at all levels.

Auteur: Wouter De Broeck www.alsico.com

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10. Encourage bicycle mobility

- A mobility survey was conducted which showed that many employees are willing to come to
the office by bicycle. To meet this demand, a bicycle leasing programme was introduced to
which our employees can subscribe. The programme started in 2021 and has since managed to
convince 20% of all employees to lease a bicycle.

Sustainability best practices at Alsico Belgium and their background:

Carbon footprint - since 2017:

The carbon footprint is the prime example of an initiative that has caused a chain reaction
within the company. The first measurement took place in 2017.

Within the measurement both scope 1 and 2 - the direct emissions and those caused by energy
purchases and the - less frequently measured - scope 3, which also takes into account emissions
via all purchases/raw materials.
The measurement allowed us to determine the indicative emissions per garment. Moreover, we
gained insight into the items that weighed most heavily: transport, buildings and heating, but
also, and especially, raw materials.
In the course of 2018, 'green teams' were formed internally, which set up targeted and
structural actions to reduce CO2 emissions in each of those items. The teams are made up of
employees who volunteered to help devise solutions. The great interest in the actions/teams
indicates that the project has great internal support.
In 2021, we conducted another CO2 footprint measurement, using the same methodology and
across the same scopes. Compared to the first measurement, CO2 emissions from our activity
decreased by 21%. Part of this can be attributed to reduced production - which meant that
fewer raw materials were used. But when extrapolated to the same amount of production, it
turns out that emissions have also been structurally reduced by as much as 29%. Which means
that the green teams' actions have also produced results.
We have also refined the calculation, so that we now know the emissions per substance type.
This makes it possible to start calculating the exact CO2 impact of a garment in a project like
this.

Sharing chain insight/ due diligence - urban client - since 2018:

In April 2018, we started working with a large urban client. The framework agreement for the
supply of sustainable workwear did not envisage a one-off statement on CSR, but a trajectory
whereby we provide a review at regular intervals of our understanding of the production chain
in terms of the raw materials used - and the progress made in that respect.
For the clothing purchased by the client in question, we have built up a full insight today,
starting with fibre production and ending in our own workshops. That insight forms the basis of
our due diligence, where we identify, prioritise and prioritise social and environmental risks and
link actions to them.

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The due diligence is prepared annually based on information we request from our suppliers, the
ateliers or other stakeholders in the field. But the exercise can be focused on the suppliers
involved in a particular assignment.
The most recent example of an action resulting from due diligence is the post-corona welfare
survey we conducted in June 2020 among our employees in Tunisia. As many as 87%% of all
employees completed the survey, a particularly high response rate that shows commitment and
trust. One of the most striking results from that survey was a need for more childcare. We have
since contacted UNICEF Tunisia to explore how best to fill that need.

A life-cycle approach with built-in end-of-life solution - since 2019

From the design stage, we consider the raw materials that guarantee the longest lifespan for the
specific need of the carrier in question. We continue this line with eco-design, which is the basic
principle for every design and is expressed through the built-in reparability or personalisation of
the garments. At our workshop in Ronse, we have a repair shop where we carry out minor life-
extending repairs. In doing so, we offer work to people who would find it difficult elsewhere on
the labour market. Sorting, weighing and storing the used clothing also provides additional local
work.
The life cycle approach allows us to calculate the cost - including external environmental costs
such as CO2 - over the entire life cycle. Thanks to our CO2 footprint, we also have all this data at
our disposal. The final element of this circular approach are the end-of-life solutions we offer -
which are also included in the cost. For example, we offer the possibility of reusing or remaking
unworn clothing for other purposes. In most cases, we collect the used clothing and recycle it
into insulation material. The client then receives a certificate for all recycled clothing.

Communication to the end user - A+A 2019

For largest workwear trade fair ; A+A, Dusseldorf, we specifically created a QR label where we
show information about the sustainability of the clothing to the end user.
By scanning the code, the user gets all the data about where her/his garment was made and the
impact in terms of CO2 and water consumption that the garment has caused - up to and
including transport to the customer.
This form of direct communication can be extended at will, for example with video material
about the production, explanation of CO2 offsetting or a feedback form.

Auteur: Wouter De Broeck www.alsico.com

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