KATHMANDU HOLDINGS LIMITED Sustainability Report 2020 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 4 HIGHLIGHTS 5 Kathmandu
Holdings 2020 B+ TH 20 YEAR sustainability ANNIVERSARY OF RIP CURL PLANET DAY SCORED A B+ IN THE COLLABORATED WITH ETHICAL FASHION KATHMANDU ON REPORT TWO YEARS DEVELOPING OUR highlights. RUNNING SUSTAINABILITY JOURNEY
RECYCLED PLASTIC IN OUR POLYBAGS FSC RECYCLED PAPER 30% SWING TAGS ON CERTIFIED PRODUCTS
40M 100% LAUNCHED THE SYPES AND SUSTAINABLE BOZEMAN COLLECTIONS CONTAINING RECYCLED COTTON IN OUR RANGE MATERIALS AND ALGAE BOTTLES WORTH OF FRESH WATER BLOOM INSOLES SAVED BY MOVING TO SOLUTION-DYED FABRICS EL STOR AN E IN (2017—2020) P R AU A S T OBTAINED THE L R O A S RAINBOW TICK L T I A CERTIFICATION IN S 1
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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 – our suppliers relationships. supply chain work. 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 24 Nga hua exploration. swimwear. – 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. 8 9
Summit Club member Brando hiking the Paparoa track. Daniel exploring in Queenstown. and Ronja members Club Summit 10 OUR JOURNEY OUR
Our journey. Ta matou
rerenga. 11 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 principles. practice. making sure the 16% of our staff who BEST FOR PEOPLE identify as LGBTQIA+ feel safe and We obtained our B Corp certification, supported at work. As part of our LOOKING BACK and now we’re going further – working response to Covid-19 we’ve introduced to become a leading global B Corp. We can’t talk about this year without 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 ACHIEVED COVID-19 SUPPLIER INTRODUCED MORE PROVIDED EDUCATION by introducing sustainability key impact on them, and we are pleased RAINBOW TICK COMMITMENT FLEXIBLE WORKING POLICIES TO 18,969 PEOPLE* performance indicators for senior 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 Covid-19 has reduced our resources purpose and values. 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 BEST IN PRACTICE 2025 GOALS FIRST RANGE USING FIRST 100% 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 bushfire recovery. all of us as consumers to remember 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 14 OUR JOURNEY 15
B CORP TEXTILE EXCHANGE AUSTRALIAN PACKAGING COVENANT ORGANISATION Our partners. ® Certified B Corporations MEMBER Our membership with the (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,
w w rg power of business to build a w.T e.o we also participate in their which supports our extileExchang 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. 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 OPERATIONS Canada Ireland Poland Netherlands New Zealand Wales Ukraine Belgium Austria 49 stores France Turkey 1 distribution centre 1 headquarters – Christchurch Macedonia China Spain Australia Portugal Italy Greece USA South Korea Japan 116 stores Malta Lebanon Iraq 1 distribution centre Afghanistan Israel Nepal 1 headquarters – Melbourne Bhutan Mexico Thailand Taiwan Bangladesh Honduras
Costa Rica Cambodia Vietnam India 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 Vietnam. City, Minh Chi Ho of outside factory TGI at aworker Huyen, Thanh Thi 18 OUR SUPPLIERSOUR
Our suppliers. Nga
kaiwhakarato. 19 20 OUR SUPPLIERS 21
Covid-19 ethical Our first report fashion commitments
WE COMMIT TO SUPPORT under the Modern 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 therefore moved away from a pure WE COMMIT TO LISTEN TO came into force in 2018, requiring all compliance model to one that 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 chains and how they will address WE COMMIT TO ENSURING innovative social media reflects our wider those risks. 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 surveys that workers can complete human rights in the supply chain. using their mobile phones. WE COMMIT TO COLLABORATE WITH OTHERS TO PROTECT but it’s much The International Labor Organization Kathmandu partners with ELEVATE to 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 BETTER FOR WORKERS AND GARY SHAW impact of Covid-19 is expected to “Our Modern Slavery Act statement Nguyen Hoang Huy, a worker at 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 business model, which relies on They will work to align with our face desperate circumstances as their delay some orders, we did not cancel Nolan and Martijn Boersma write in growth for growth’s sake. It is this standards, methodology and mindset only means of income has ended. any. This helped our suppliers to plan Addressing Modern Slavery2, modern model that is destroying our planet – moving away from a compliance- There are more beneficial and ethical for the future while keeping workers supply chain management tends to and is ultimately a very uninspiring based model to one that relies on ways to respond to the crisis, and this meaningfully employed.” be more “aimed at treating the and short-sighted way of doing partnership and trust. is what Baptist World Aid (BWA), symptoms than tackling the In April, we sent a survey to all of our business. What we are proposing is a Tearfund and the International Labor underlying causes: the very nature of Both brands will also work with suppliers to understand more about new lens through which to see Organization (ILO) are asking of our business model”. ELEVATE as their supply chain partner. how they have been affected. business. If Kathmandu can go all the companies with a new call to action. “We all have the same goal when it "80% of our suppliers replied to the The Kathmandu approach goes way with this idea, I think we’ll be one The decision was made to cancel the comes to our respective supply chains, survey and the results showed that beyond compliance to working of the most exciting companies on annual Ethical Fashion Report for which is protecting and enhancing the fewer than 5% had to lay anyone off alongside our suppliers to put people the globe.” 2020, and instead BWA and Tearfund wellbeing of workers. This also leads to which was very encouraging." at the heart of our work. “Over the asked companies that normally a more efficient and profitable last five years, we have been shifting RIP CURL AND OBOZ ALIGN WITH participate to outline how they are business. It is great that we can our suppliers to those who share our KATHMANDU ON CSR responding to Covid-19, given the leverage the combined weight of the values of transparency and impact on workers in their supply The Kathmandu team has been three brands under the Kathmandu collaboration and are willing to work 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 “Many countries have no safety net chain, and they can be useful in Rip Curl have decided to embrace and world began cancelling orders due to for workers who lose their jobs. flagging issues. However, they have participate in our approach to Covid-19, it had a devastating effect When COVID 19 hit, we called our generally failed to make a difference corporate social responsibility (CSR) on the garment industry. Millions of suppliers and while we did have to to the lives of workers. We have and supply chain improvements. workers have been laid off and now
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 39 FACTORIES KATHMANDU SUPPLIERS KATHMANDU PARTNERS WITH PARTNERS WITH
100% 62 NEW SUPPLIERS SCREENED CORRECTIVE USING SOCIAL CRITERIA ACTION PLANS 12* 10 680
TOTAL AUDITS EXITS 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
Our product team sewing samples in our Christchurch office workshop, that will later be used to create our NZ Made Aotearoa T-Shirts. Our products. Nga hua. 26 OUR PRODUCTS 27
Summit Club members Jared and Hayley wearing our sustainable Why 100% sustainable cotton T-Shirts in Cuba. cotton is not the end of the story.
We set a target to have 100% For pure sustainability, nothing beats “We want to move sustainable cotton in our range by 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 To reach our 100% sustainable cotton Sustainability Manu Rastogi. exploring next.” milestone, we used a mix of organic, 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 relax? Definitely not, says Manu. HEAD OF PRODUCT INNOVATION 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.” %
2020 100 Our sustainable % 2019 99 cotton journey % 2018 78 % 2017 74
% 2016 59 % 2015 38 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.” 30
Our plastic bottle 2019 9.3 recycling journey MILLION MILLION * Against a target of 10 million for FY20. 2020 8.2 AND COUNTING Lower 2020 bottle counts due to Covid-19 reduction in sales. MILLION*
2018 6.7 MILLION
2017 3.9 MILLION
2016 1.2 MILLION
2015 0.84 MILLION Chloe and Jonathan collecting beach waste in our new Moana pack, made from ocean plastics. 30 OUR PRODUCTS 31
Summit Club member Sian in Lyttelton wearing our Solus pack which is made from Saving water to solution-dyed fabrics. save lives.
The United Nations says, “By saving “It is something water, we save lives.” It’s something we can’t afford to take for granted we can’t afford to any more. take for granted Water wastage and pollution have disastrous consequences for the any more.” 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*
2019 12.1 MILLION
2018 11.5 MILLION 2020 8.7 MILLION* 2017 8.5 MILLION Manu Rastogi Head of product innovation and product sustainability * This is based on 500ml bottles. 32 OUR PRODUCTS 33
New Zealand-made
Wool sourced from merino sheep on a Mackenzie Country station in the products hit home. 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 finding a local supply for trims and IN RESPONSIBLE WOOL STANDARD manufacturing industries alive at packaging. #7 “TOP 10 BY VOLUME” home. “It was a good trial programme where The aim was to support local we were able to gain a lot of LISTED IN MCI DOWN INDEX LEVEL 4 — LEADING PERFORMANCE BAND manufacturing and local jobs so that, understanding and learning,” says Manu Rastogi. “Covid-19 has really if the global supply chain is disrupted, IN RESPONSIBLE DOWN we have not got all our production driven home how much we rely on #7 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 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 #8 “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 LISTED IN PREFERRED process our New Zealand merino clip 100% MMCF "100% UPTAKE" into fabric before sending it back to LISTED IN MCI STRATEGY LEVEL 4 us in Christchurch. — LEADING PERFORMANCE BAND 34 OUR PRODUCTS 35
Sean and Michelle wearing our Covid offers a merino face masks in Melbourne. chance to reset.
As stores shut, Covid-19 lockdowns With industry conferences and trade threatened to halt the textile 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 and take the As Kathmandu looks for ways to do opportunity to reset and look for ways more with less, we will be putting to do more with less. 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 “It’s time to look at what it would have the most we can have the most impact,” Manu mean if one of our core lines became says. “What Covid has highlighted for 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 pandemic, everyone has to contribute, MANU RASTOGI 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.
% CARE AND REPAIR SAFETY 2016 0.34 % 2017 0.31 Only one of the reported incidents % were a result of non 2018 0.26 3,377 1 compliance with % REPAIRS REPORTED INCIDENT voluntary codes. 2019 0.20 % 2020 0.15 while in hiking Japan. dry keeping Jonathan and Chloe 36 OUR FOOTPRINTOUR
Our footprint. Ta matou
tapuwae. 37 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 emissions per store by this year based MEASURE, MANAGE, VERIFY, A permanent flexible working policy on 2012 numbers. We safely achieved MITIGATE that now allows staff to work from this. However, the tangible home up to two days a week could Our path to net-zero carbon is paved improvements our business will start to have a big impact on commuting with four simple steps: measure, achieve will come when we set science- emissions, while an increase in online manage, verify and mitigate. 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
5,582 630 40 TONNES CO2e TONNES CO2e 2018 2018 6,251 38.1
6,340 492 40 TONNES CO2e TONNES CO2e 2019 2019 6,862 40.8
5,892 450 5 TONNES CO2e
TONNES CO2e 2020 38.5 2020 6,347
% REDUCTION 46.5
2020 20 OF 2012 CO2e PER STORE TARGET 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
STORE WASTE Reducing the BREAKDOWN waste we pass on to consumers.
As our waste journey continues, we’re posts, plastic matting, buckets and “It acknowledges turning our mind to the waste we 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. Kathmandu Sustainability Specialist % paper/ make and waste Sometimes, it’s little things that add Shannon Ball says, “A key project is 43 cardboard up to make a big difference. Our store getting better information on which approach is not staff started asking a simple question: of our stores have good recycling % polybags and going to sustain “Do you need a bag?” This got options and which don’t. We are 15 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 % co-mingled transaction compared to last year. looking for ways to reduce the size 18 recycling in the future.” of our polybags and introduce We’ve set up a working group to look more recycled content into our % non-recycled at a more sustainable alternative to packaging too.” 24 material OUR PACKAGING FUTURE the plastic delivery satchels we use to New Moana packs made from AUSTRALIAN PACKAGING deliver online orders. ocean plastics. 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 non-profit Tent Collectors. circular. Kathmandu Store Design and Sometimes, little things can make a “Sustainable “This vision recognises that our planet Development Manager Abigail big difference.” The organisation saves tents from Wasmer says the approach to store has finite resources,” APCO says in its This year, we switched 32 new and store design is landfill and collects them from design is about continuous 2020 report our packaging future. refurbished stores to LED lighting, festivals to be redeployed to Syrian improvement. “Sustainable store “It acknowledges that our traditional which has helped us towards our goal not something refugee camps in Europe, including design is not something you achieve take, make and waste approach is not of becoming net-zero carbon by 2025. you achieve and going to sustain our communities in the Greek island of Samos, which and tick a box and are done with. the future.” currently houses 5,900 people in a It’s a constant process of getting tick a box and are military camp built for 600. Tents that better. Every year, we introduce new were returned by customers and elements and new practices.” done with. It’s a PROJECT POLYBAG COMING BACK couldn’t be resold as seconds were FROM DISRUPTION A big focus has been on selecting donated to Tent Collectors. constant process natural and sustainable materials, Our journey to zero waste continues shifting from particleboard to solid of getting better. with a new signpost in place – a zero- CHRISTCHURCH STORE WINS RED and plywood timbers that can be waste target for 2020. Cardboard and AWARD FOR SUSTAINABILITY 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 – built with our focus on sustainable about bringing suppliers and elements and new shut its doors to offshore plastic and reusable materials – was contractors on the journey with us. recycling. recognised with an award for “In Melbourne, our shopfitters have an practices.” sustainability by the New Zealand entirely solar-powered factory, and we We went from 100% of plastic Retail Interiors Association. The RED give contractors reusable coffee cups polybags recycled in all New Zealand ABIGAIL WASMER awards are the country’s premier retail and water bottles so that they can stores in 2018 to just over half our STORE DESIGN AND design awards, and the sustainability reduce their waste. We’ve also put stores last year. Now we are DEVELOPMENT MANAGER category judges fit-outs on materials, 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 Kathmandu Coast to Coast race. race. to Coast Coast Kathmandu first her in competing Spark Molly OUR COMMUNITY OUR
Our community. Ta matou
hapori. 47 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 TOTAL FUNDS TOTAL DONATED TO TOTAL DONATED TO TOTAL DONATED TO We believe adventure is for everyone, adventures. 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 ARTIST SERIES T-SHIRT back to the causes dear to our hearts. “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 Zealand street artist known for his red panda. The pandas were given to and proud of vibrant murals. 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. We promised to match funds donated by our customers up to $50,000. 23,332 $33,940 For 31-year-old Sabina, who TOTAL UNITS SOLD 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 saves for a rainy day. limited edition tee were donated to This was the fourth year that the the work done by Greening Australia $89,586 $110,053 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 4 TOP TIER WINNING STAFF APPLICATIONS ENTRIES
WINNERS VISITED:
PHILIPPINES NEPAL INDIA BHUTAN GREENLAND AUSTRALIA (COFFS HARBOUR AND TASMANIA) 332 698 PERU NEW ZEALAND TOTAL VOUCHERS NORWAY APPLICATIONS DISTRIBUTED 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. months old and our oldest was just Bronwyn says the beauty of the track towards the prevention of early opportunities with free events. KATHMANDU COAST TO COAST 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 We challenged Summit Club members active and healthy lifestyle with a to give young people opportunities to “We saw so many animals and plants Although Covid-19 meant that only to climb the height of Everest to raise shared passion for mountain biking.” participate in the Kathmandu Coast that were just beaming with vitality three of our 16 adventure series events money for our partner charities that to Coast race. Run by the Aspiring This January, Bronwyn and her kids and life we couldn’t help fall in love went ahead, we did connect with 52 support Nepal. The New Zealand Youth Development Trust, the Rangers (now 11, 12 and 13) decided to take on with the Cradle Valley,” she says. participants in this guided hiking event, Summit Challenge, had 220 programme gives kids exposure to the Overland Track (including Cradle “The slow pace allows you to soak up programme. participants who raised $39,295 for outdoor activities as well as Mountain) in Tasmania. With pack the vibrancy, diversity and complexity the New Zealand Himalayan developing lifelong skills and loads varying from 15kg to 24kg, of the environments you pass through, Foundation. The Challenge included RUN CLUB introducing them to sustainable the four spent seven days in the and I loved the places that three group hikes held in Wellington, knowledge and values. mountains and raised $5,000 for conversations go when you have so Run Club is a weekly free trail running Christchurch and Auckland. programme for Summit Club heart research. much uninterrupted time together.” 54 opening in Christchurch.opening store flagship new our at team Our visual merchandising OUR TEAM OUR
Our team. Ta matou
ranga. 55 56 OUR TEAM 57 Our values shine through our people in challenging times.
Like most businesses around the This year has shown our teams to be CELEBRATION He toka world, the Covid-19 pandemic forced resilient and focused on doing their 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 One way we celebrated our diverse AND NOT EASILY SWAYED BY year of change and uncertainty. makes us stronger as a business. 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 this is me video was that, while we’re collaborating and communicating — and identity to work with them each all different, we’re all the same too. from Facebook Workplace updates to day. 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 essential for our team to stay We celebrated women in our business has a place. through participation in events such connected and informed and safe and as the M2 Journey to Excellence, and as discussions about personal We have committed to this journey to we celebrated our New Zealand wellbeing became more crucial inclusion, both within our brand and beyond, as we want to bring our cultural heritage across the year. 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 diversity. (BY THE NUMBERS)
In November, we conducted a team KATHMANDU ACHIEVES THE GEARING UP ON CAPABILITY diversity survey to get a better picture RAINBOW TICK! We took a more strategic approach to of what our workforce looks like. The Rainbow Tick is a certification capability this year launching our As expected, we found a diversity of that helps organisations ensure they Gear Up Curriculum to support the 53 65 25% 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 Our teams can also now look to even are aligned with our people. Ka ora pea i a koe, more internal role models as more ka ora koe i a au The third-party anonymous survey women joined the executive had a high response rate with 42% of leadership team, bringing the number of female senior leaders to five this IN ANY GROUP ENTERPRISE, team members completing the 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. 60 OUR TEAM 61 Next level The world has in retail changed and so development. has Kathmandu.
For our retail teams, we continue to IT IS OUR PEOPLE THAT WILL develop accessible and relevant content CONTINUE TO DRIVE delivered through our online learning KATHMANDU’S SUCCESS AS A platform Kampus. In addition to core BRAND AND WILL DO SO MORE operational and product knowledge STRONGLY DUE TO THE AGILITY, content, we have diversified to include RESILIENCE, AND SOLUTION FOCUS a wider range of professional and WE HAVE ALL DEVELOPED. personal development content. Tania Griffiths started as casual At the time, Tania remembers, In February this year, Tanya completed We extended eligibility for labour in Kathmandu’s Melbourne “I didn’t have a lot of confidence a course on empowering women in management courses across levels of distribution centre back in 2014. talking to groups of people, managers the workplace from Swinburne management to create a more visible Today, she is a warehouse system and nor staff. It was hard for me to stand University. “The course looked at learning pathway for 3ICs and ASMs to continuous improvement analyst up and talk freely and express if I had being bold at work and having an develop into the next roles in their overseeing the implementation of new an improvement idea or to complete influence in the workforce.” career. WMS systems, creating standard training needs. Daily setup meetings While the distribution centre has a TOP 5 COURSES operating procedures and process were very nerve-wracking.” To develop expertise in our teams, we large percentage of males in the office maps and training casual and full- further extended our Footwear Guide OVERALL Tanya’s confidence got a boost when space, Tania says she’s never felt that time staff. Certification programme, certifying a she joined the Kathmandu TrekBud was a barrier and has only helped her further 50 Footwear Guides this year, Looking back, Tania puts her success Mentor programme, where her gain confidence in her leadership. and partnered with Oboz to create down to hard work and an eagerness mentorship was complemented with “I feel very supported. I’m very online content for our wider teams. to learn. online learning. Tanya’s mentor was RAINBOW TICK thankful to everyone who’s supported INCLUSION AT WORK Nova Knight. In addition to Kampus, workshops and “Upon joining Kathmandu, my main me through my journey. My bosses are in-store training, we utilised Facebook focus was to work super, super hard. I think she’s progressed amazingly,” amazing, and Kathmandu is such Workplace to deliver accessible and I wasn’t aware of what my journey Nova says. “She has gone on to deliver a great company to be a part of,” effective information (sharper, smarter, was going to hold however, I am a training workshops to the whole of the Tania says. faster) and facilitate knowledge very hard worker, and I take pride in distribution centre and put together sharing within teams to drive a culture OBOZ 2020 my work. If I’m doing a task, I want comprehensive engaging training of learning. to know the ins and outs. If there’s material. Her confidence to execute He ao hurihuri an issue, I want to investigate it and and stand up and deliver was Even when stood down, our teams find out what went wrong and how awesome to see.” IT'S AN EVER-CHANGING WORLD sought out development opportunities, I can fix it.” and retail teams took the opportunity “I benefited a lot from those to upskill themselves and prepare to DEALING WITH STRESS As a casual worker, Tania says she modules,” Tania says. “It was really welcome our customers back with AND ANXIETY asked regularly if there were full-time good for highlighting the areas I confidence and exceptional service positions available. “Eventually, I was wasn’t so confident around. when stores reopened. offered a full-time position. I explored We learned about presenting to and gained so much knowledge from team members and the different ways During the initial closure alone, other areas of the warehouse — from people have of learning and tailoring our teams completed 7,002 courses on COVID-19: picking and packing to e-commerce their needs by incorporating different Kampus and took the opportunity for WHAT YOU NEED TO KNOW and dispatch.” learning styles. I became more personal growth as well, as evidenced confident, knowledgeable and by the courses they completed. This well-rounded base of experience accommodating in myself and others. set her up to become a Superuser on It was a super-exciting journey to work our new and first Australian-built with Nova. She’s become a great Crossbelt Automated Sortation friend.” WINTER READY 2020 System when the distribution centre moved into its new 5-star Green Star rated building in 2015. Tania Griffiths, warehouse system and continuous improvement analyst. 62 63 range, the Bridgers. mountain neighborhood Oboz’s of view Aerial 64 OUR JOURNEY OUR
Our
journey. 65 66 OUR JOURNEY 67 Our journey.
Oboz President Amy Beck charts TRUE TO THE EXPERIENCE the company's sustainability We believe in the power of the journey so far. outdoors and that people will live a Oboz was born in 2008 in Bozeman, better life if they can experience Montana. From the very beginning, nature, so our work in this point of the the company was built with the compass is reflected in our support for intention of doing the right thing for conservation partners and our the planet and for the consumer. determination to minimise our own We’ve been planting trees and impacts on the planet. offsetting carbon emissions for 12 years – long before those kinds of TRUE TO YOUR FOOT things became fashionable. Making sure our products stand up But our good intentions have not to our commitment is the core of necessarily translated into a solid this compass point. For Oboz, sustainability plan, so as we mature sustainability is durability. as a brand, we’re now in a phase of Delivering great fit and functionality crafting a clearer way for our journey also sits at this point on the compass. – one that focuses on impact over AMY BECK Jackie Nourse, Bozeman optics. PRESIDENT, OBOZ resident, founder of Traveling TRUE TO OUR COMMUNITY Jackie, and friend of Oboz, looks out from atop the M Trail. To guide us on our journey, we’ve Giving people opportunities to access created a brand compass built on our the outdoors is a key part of this long-held mantra – true to the trail. compass point. Our community This compass will guide everything we programme supports adventure, do at Oboz – from building great education and access to wild places. footwear to how we give back to our It supports the people and the place TRUE TO THE community and the way we treat that we are from. each other and the planet. It’s a TRAIL COMPASS mindset that grounds us in what’s There’s no doubt that our company is most important: doing things the inhabited by people passionate about right way, having fun and exploring sustainability, and this year, we’re our path in life. Any other way just working to build a strategy around wouldn’t be true to the trail. that passion. We’re creating a ‘green team’ that will have members from TRUE TO OUR PEOPLE every department, and we have started work on a three-year This point of the compass reflects our sustainability plan for Oboz, which will commitment to all the people who include goals we can measure our our brand touches – from our progress against. employees to our retailers and suppliers. By joining the Kathmandu We will lean on the knowledge of our family, we are committing to Fair parent company to accelerate Labor Association and B Corp progress on this important journey. assessments. We’ll learn from all the It’s one we’re all excited to undertake. work done at Kathmandu to improve the supply chain. 68 OUR JOURNEY 69
KEY Our world.
FACTORIES 1 TOTAL Vietnam – 3
MATERIALS SOURCING China, Taiwan, Vietnam
Canada Germany UK
China
USA Japan OPERATIONS
United States of America Taiwan New Zealand, Australia United Kingdom, Taiwan Canada, Japan
Vietnam
COMMUNITY SPONSORSHIPS Australia 120 vulnerable teens provided with adventure-based mentorship experiences.
New Zealand
5 NATIONALITIES ACROSS OUR TEAM
Canada, United States of America, Germany, Vietnam, Taiwan 70 OUR JOURNEY 71 A little help from our friends.
CONSERVATION ALLIANCE BLOOM OIA IN SOLIDARITY The Conservation Alliance Bloom transforms green water We participate in OIA’s In Solidarity brings the outdoor harnesses the collective into clean water to make Sustainability Working Group — industry together to build a power of business and performance foams. collaborative platform of more more inclusive future. outdoor communities to Bloom foam is created by than 300 outdoor brands and fund and advocate for the replacing a percentage of suppliers working together to protection of North America’s plastic polymer in conventional identify and implement better wild places. Our CEO Amy Beck EVA with repurposed algae business practices. Through sits on the board, and we biomass harvested from them, we plant a tree for every provide financial support. freshwater sources. Oboz shoe sold. incorporates Bloom’s foam into the footbeds of our Bozeman and Sypes collections.
REPREVE LEATHER WORKING GROUP TREES FOR THE FUTURE CAMBER REPREVE is the world's number The Leather Working Group is a Trees for the Future has a direct Camber Outdoors is a one brand of recycled not-for-profit membership impact on the Earth and lives national non-profit supporting performance fibre. organisation for stakeholders of the people who need it most workplace inclusion, equity, It's high-quality fibres are across the leather supply chain. by helping plant trees and and diversity in the active- made from 100% recycled LWG aims to promote giving families the ability to outdoor industries. We are a materials, including post- sustainable business practices transition from unsustainable Corporate Partner for Camber. consumer plastic bottles and and create alignment on farming techniques to a forest pre-consumer waste. They are environmental priorities garden system. We participate also certified and traceable. throughout our membership in OIA’s Trade Advisory Council, Oboz incorporates REPREVE and the industry as a whole. which reviews U.S. trade policy, fibres into the laces of our relevant federal legislation and Bozeman and Sypes collections. international trade negotiations, develops federal trade policy that may affect OIA membership and recommends policy positions to OIA government affairs staff and OIA leadership. within an Oboz factory. factory. Oboz an within lasts custom of assembly An 72 OUR SUPPLIERSOUR
Our
suppliers. 73 74 OUR SUPPLIERS 75
NRI This year, we switched our distribution True to our people. partner to a California company called NRI. “NRI feels like a like-minded partner,” says Director of Operations Chris Rischke. “They give back to their community and support their staff in further education, which is fairly uncommon in the warehousing industry.” Oboz President Amy Beck knows that “We’ve always practised responsible NRI says it is committed to doing every hand that creates a pair of purchasing and fair labour, but we business ethically but also in an Oboz shoes belongs to someone in our hadn’t written them into formal environmentally and socially global supply chain. policies,” says Chris. “Formalising responsible manner. It defines its these policies is part of our work to approach to corporate responsibility “In this context,” she says, “being true obtain FLA certification and B Corp as starting “at home with our to the trail means an ongoing certification as we work to align with employees”. commitment to their welfare and Kathmandu.” wellbeing as members of the wider “Within the community, we Oboz family and brand. We work We’ve also started training staff on understand that our business and collaboratively to protect their rights, these policies. “We’ve got a small that of our clients do not excel promote their ongoing development team, but we’re making sure we without a healthy environment. and positively impact their lives so educate the entire team on We look for ways to become greener they can also live true to the trail.” responsible purchasing and all policies and encourage our team members to – particularly the ones who travel to bring forward their ideas too. At Oboz, we have a very narrow our factories as we want them to be Community at NRI extends to many supply chain, as Director of on the lookout for any breaches.” A highly skilled laster pulls the different avenues that are important Operations Chris Rischke explains. shoe’s upper leather over the lasting board. to our team members. We support “We have three factory partners. All of The next step for Oboz is to create a and encourage our employees to them are in Vietnam. The factory that three-year strategy for managing participate in events that have makes some of our most iconic styles human rights in our supply chain. meaning to them. This includes we’ve been working with for 10 years This will be guided by our mission to volunteering, donations in kind and now. Building long-term relationships become FLA accredited and to OUR SUPPLIERS fundraising events. At NRI, we are with suppliers is important to us.” undertake the B Corp assessment, but 2020 pleased to say that we contribute one we are also looking for ways to apply Our second-largest supplier is one of full-time team member per year to our true to the trail philosophy to our the top footwear manufacturers in activities in the community!” factory partners and the communities the world. It was one of the first to they operate in. After our move, Rip Curl also switched become certified by the Fair Labor to NRI. The company now manages Association (FLA). “They’ve done “True to the trail is an idea that the entire Kathmandu portfolio in phenomenal work, both on the accepts that everyone has their own 0 North America. trail – and that includes our suppliers 3 100% product side and the social side,” EXITS Chris says. “They have a full training and the people in our supply chain. NUMBER OF % OF NEW SUPPLIERS FACTORIES SCREENED USING SOCIAL programme to elevate staff into In the coming years, we’d like to CRITERIA management roles, and they have a understand more about what their “They give back to parental leave programme.” trail looks like – as a business and as a their community community,” Chris says. As in other parts of our business, * and support their we’ve used the expertise of our parent 3 company to leapfrog our supply chain staff in further work. Like Kathmandu, we’ll be using TOTAL AUDITS ELEVATE supply chain consultants to education, which conduct factory audits, and we’ve worked to identify policy gaps around is fairly uncommon responsible purchasing, child labour in the warehousing and forced labour. 3 76 43 NUMBER OF HOURS CORRECTIVE industry.” SUPPLIERS TRAINING STAFF ACTION PLANS CHRIS RISCHKE
*Our three factories were audited at the very end DIRECTOR OF OPERATIONS of FY19, and corrective action plans were issued to each of them to be worked through in FY20. Spring 2021.Spring launching Mid, W’s Sypes new the in trail Canyon Sypes the on arock atop stands A hiker 76 OUR PRODUCTSOUR
Our
products. 77 78 OUR PRODUCTS 79 Exploring sustainable FROM HARMFUL ALGAE TO SUSTAINABLE SHOES materials. We’ve replaced traditional EVA foam in our Bozeman range with an algae- based blend called Bloom. Bloom is made by cleaning up toxic algae from Our approach to sustainable products polyester and natural fibres that help “While leather is a byproduct of the waterways. Algal blooms around the has three pillars – durability, materials wick moisture. Laces are REPREVE meat industry, we acknowledge the world are harmful to wildlife and and process. Oboz Director of Product recycled polyester, and the woven tanning process is not the most humans. From Chinese lakes choked Merchandising and Development upper textile and webbing environmentally friendly process, with algae to Southern Californian Dan Wehunt says, “If we can do components are 100% GRS-certified and we are constantly looking for beaches where swimmers get sick - better in all three of those categories, recycled polyester. ways to improve. We require all of the problem has been dubbed a we’ll be doing better for the our water-resistant leathers to use global crisis - and it’s driven by rising To reduce the petrochemicals in our environment.” PFC-free treatments. We also support global temperatures and excess foam, we’ve replaced 20% of the and encourage our tanneries to work nutrient runoff. virgin EVA foam in the Bozeman with the Leather Working Group.” DURABILITY range with a product called Bloom, But Bloom founder Ryan Hunt discovered a way to turn the algae Durability comes first. If our product which is made from algae. The Leather Working Group (LWG) is into foam. His company, Algix doesn’t last and ends up in the waste a not-for-profit organisation that Moving forward, we plan on rolling harvests, dries and extrudes the algae stream too early, any other initiatives developed a system to certify leather Bloom algae into more of our insoles into an aglae-blended EVA for the won’t do any good. “Durability is core manufacturers according to their throughout the product line. footwear industry. Each pair of shoes to our brand, core to our product and environmental compliance and helps to clean waterways and core to our approach to sustainability,” We’ve started exploring alternatives performance capabilities. sequester carbon. A single 200g says Dan. to our carbon rubber, which is The certification reflects their scores associated with toxic chemicals and on a large number of indicators product cleans 45 litres of water and We have implemented lightweight deforestation. We’ve started looking including waste management, water 28 cubic metres of air. To date, Bloom polyurethane foam into some of our at compounds that might be longer use and air and noise emissions. has cleaned almost 600 million litres core hiking product franchises. lasting and at rubbers that use a of water and 373 cubic metres of air. Oboz works with two tanneries that Polyurethane performs longer than blend of rubber and rice husk. are rated Gold and Silver under At Oboz, we’re excited to make our traditional EVA, resulting in more We’re also exploring what’s known as the LWG. We’re supporting and shoes part of the solution. durable products. We have also begun regrind rubber, where rubber scraps % to source Cordura-branded textiles, encouraging our suppliers to 8 15 are blended together to create a new improve their scores and achieve which provide best-in-class abrasion product from waste. resistance. Gold certification. STYLES RANGE Size can be a limiting factor for Oboz. Internally, our next step is to set “The goal is keeping our product on Many sustainable materials have high strategic goals for the sustainability people’s feet longer,” Dan says. minimum order quantities that we of our products. This will elevate struggle to meet. “The outdoor sustainability as a priority in our MATERIALS industry is ripe for collaboration. product development and will Bozeman sustainable range. Partnering with other small and mid- This year, we released our Bozeman help us identify short-term and sized brands, we could really make collection. “This range was an long-term goals. opportunity for the Oboz brand to an impact. There is an opportunity begin to explore what’s possible for for us to work together to consolidate sustainable materials in our footwear,” materials and overcome this CARE AND REPAIR SAFETY says Dan. challenge.”
The Bozeman is a lifestyle range with PROCESSES eight styles, which accounts for about The one reported 15% of the entire range. For each As an outdoor hiking footwear incident was a result material, we tried to source a recycled company, we primarily rely on leather 1 of a minor customer alternative. The lining material is for its durability and protection 3,250 3,117 injury from an isolated made from a unique blend of recycled against the elements. LACES REPLACED REPLACEMENT SHOES INCIDENTS manufacturing defect. Ridge Trail. Bridger the down trekking while path to the keeps A hiker 80 OUR FOOTPRINTOUR
Our
footprint. 81 82 OUR FOOTPRINT 83 We plant a tree for every pair sold.
Oboz was founded with an intention President Amy Beck says, “We’ve to do the right thing. We plant a tree always offset carbon, but I think we for every pair of shoes sold, and we can go deeper here, especially have been offsetting carbon since because we’re a relatively small brand. before it was popular. But we know One of the biggest impacts we’ve there is much more we can do, and as seen from COVID is the reduction in we grow and mature as a company, travel, and we hope we can learn from we’re committed to improve the way that to reduce our impact going we measure and track our footprint. forward.” We use a lot of money and carbon TREES FOR THE FUTURE shipping samples around the world. Our 12-year partnership with Trees To reduce that, we’ve started work on for the Future has seen a total of 3D modelling technology that would 3.3 million trees planted. allow us to make this part of our sales process digital. Trees for the Future is a non-profit founded in 1989 that helps As we start to explore what circularity communities around the world plant means for our industry, we’ve trees. The organisation works with partnered with gear rental company communities in Central America, Arrive Outdoors to trial a rental South America, Africa and Asia to programme. incorporate tree planting into their agricultural activities. RENEWABLE POWER This work has empowered rural groups 100% of our office juice comes from to protect the environment and to wind, solar and biomass from preserve traditional livelihoods and northwest Montana and Wyoming cultures for generations. They have through the E+ Green Power planted 187 million trees in the last Partnership. OUR CARBON 30 years. JOURNEY Last year, we supported Trees for WASTE WARRIORS the Future to plant 700,000 trees. We have gone through a process to make all our packaging recycled and TOTAL MEASURED ELECTRICITY EMISSIONS USA CARBON OFFSETTING recyclable. We don’t use polybags, “We’ve always and we have ticked off certifications We carbon offset our shoe shipments for sustainable packing. offset carbon, and also all employee travel, TONNES CO2e 2017 250 commuting (although almost The shoes we don't sell make a but I think we can everybody bikes) and the office utility difference too. We donate our bill with the help of the Bonneville unsellable (but still trail-worthy) go deeper here, TONNES CO2e Environmental Foundation, an shoes, partnering with Project Sole 2018 479 Oregon-based non-profit organisation and local non-profits to find feet especially because that markets green power products in need. we’re a relatively to public utilities, businesses, TONNES CO2e 2019 493 government agencies and individuals. We educate our customers on small brand.” how to properly clean and Last year, we offset 493 tons of CO . condition boots to ensure 2 longevity, reducing product AMY BECK At Oboz we measure our waste, and to limit the total electricity emissions transfer of invasive species. PRESIDENT by calendar year. of the Mountains. Rocky Range Bridger the toward looking Montana, Bozeman, of shot Aerial 84 OUR COMMUNITY OUR
Our
community. 85 86 OUR COMMUNITY 87 Staying true to our community.
The Oboz community is made up of a OPPORTUNITIES FOR VULNERABLE diverse group of like-minded, free- TEENS spirited adventurers exploring some of Big Sky Youth Empowerment’s mission the most amazing places two feet is to provide the most vulnerable can take them. Our community teens in the Bozeman area with partnerships are led by our brand opportunities to experience success compass and our belief that people’s through an adventure-based lives are improved by spending time mentorship programme. To make sure outdoors. This year, we also started the kids have proper footwear for trail taking active steps to explore what hiking, we support the programme we can do to improve diversity, equity with 40 pairs of shoes. We’ve also set and inclusion in our organisation and aside cash and promotional resources our community work. to help the organisation achieve its Oboz Director of Brand and goals to support more than 120 kids Consumer Experience Rich Hohne from grades 8 to 12. We even hit up says, “Our community efforts our friends at Darn Tough to provide reinforce the brand’s pledge of being high-quality hiking socks. true to the trail. Critical to this promise is celebrating the experience PRESERVING WILDERNESS of being on the trail and being true to our community. Oboz’s vast efforts in For more than 50 years, Montana our local community and key areas Wilderness Association (MWA) has across North America support what’s been working with communities important and encourage people to across the state to protect, preserve, get outdoors more – because any connect and restore Montana’s other way just wouldn’t be true to wilderness heritage, quiet beauty and the trail.” outdoor traditions. MWA was critical in securing designation for all 15 wilderness areas in Montana. CONNECTING PEOPLE TO MWA’s activism, trail maintenance, LANDSCAPES educational programmes and The Gallatin Valley Land Trust Wilderness Walks help local connects people to the landscapes communities around the state protect that surround Bozeman through the Montana's wilderness now and for conservation of open spaces and future generations. We provide $1,000 creation of trail systems. We have put in support as well as discounted shoes $7,000 towards the acquisition and for staff. trail development of a property in Bear Canyon. Together with other outdoor industry leaders, we’re working towards better access to 6,000 acres of state land.
A hiker takes a break to look upon Bozeman while on the Sypes Canyon trail located in the Bridger Mountain Range. 88 OUR COMMUNITY 89
SUPPORTING RESPONSIBLE CELEBRATING CREATIVITY The project helps families transition COMMUNITY TREKKING from unsustainable farming Live From The Divide hosts songwriters techniques to a forest garden system, BY THE NUMBERS Wildland Trekking is a global leader in in an intimate venue on the north side which is a multi-layered system that the adventure travel industry. of Bozeman. The music venue has combines varieties of crops and trees. They provide responsible and hosted legends like Steve Earle and Trees for the Future says this system sustainable hiking adventures while Sturgill Simpson. Performances are has the potential to end hunger and promoting the conservation of both recorded for radio and online poverty for millions of subsistence natural and human communities. broadcast, and producer Jason farmers struggling to survive We support Wildland Trekking with Wickens interviews visiting acts. throughout the developing world. gear donations and discounted prices The resulting podcasts and broadcasts MILLION for guides and employees. Oboz is the invite listeners to go deeper into the official sponsor of Wildland Trekking’s words and sounds that connect with 3.3 TREES PLANTED Bunsen Peak hike in Yellowstone our collective and individual National Park. experiences. Oboz supports Live From The Divide with $25,000. ENCOURAGING OUTDOOR APPRECIATION TREES FOR THE FUTURE Oboz supports the Banff Mountain Oboz has partnered with Trees for the Film Festival – an international film Future since our inception. $1,000 $24,000 AND DISCOUNTED GEAR FOR FOR THREE YEARS TO SUPPORT competition and annual presentation The organisation works to improve the MONTANA WILDERNESS BANFF MOUNTAIN FILM FESTIVAL of short films and documentaries livelihoods of impoverished farmers by ASSOCIATION about mountain culture, sports and revitalising degraded lands through the environment. Banff is the premier their Forest Garden programme. international film festival for outdoor We work with Trees for the Future to films, and it supports emerging plant a tree for every pair of shoes 120 outdoor filmmakers and artists. sold. This partnership has seen around $7,000 $25,000 We support the festival with $24,000 3.3 million trees planted since the FOR GALLATIN VALLEY TO SUPPORT SONGWRITERS KIDS HELPED LAND TRUST WITH LIVE FROM THE DIVIDE TO GET OUTDOORS for three years. We have also company started. Our trees are sponsored and led a sunrise hike at currently supporting the Tabora Forest the festival for the past three years. Garden project in Tanzania.
Singer/songwriter Colter Wall performs at local venue Live A Bozeman icon, the Genuine Ice From The Divide. For 2020, Cream trailer welcomes summertime Oboz is title sponsor of Live crowds on Main Street. From The Divide, along with its broadcast and podcast series. route in the Beartooth Mountains. Mountains. Beartooth the in route their assess Two backpackers 90 OUR TEAM OUR
Our
team. 91 92 OUR TEAM 93 Big strides in diversity and culture.
Oboz is a small team and so it’s Our teams normally participate in “This improvement natural for us to focus on people. Trails Day with the Gallatin Valley in gender diversity Our turnover rate is generally very low. Land Trust, which we support and Last year, four employees left and we host. Trails Day is a community event is one of the things also added three new roles – taking for building and maintaining trails in our total team number to 27. our region. This year, we couldn’t do I’m really proud of the event as a group, but the Trust This large year of hiring resulted in a didn’t let that stop work on trails. this year.” welcome shift in diversity – our team They kicked off with a virtual event went from 29% women to 41% and encouraged people to spend AMY BECK women. some time working on trails safely PRESIDENT President Amy Beck says, “This and separately. improvement in gender diversity is Many of our team members volunteer one of the things I’m really proud of on community or industry boards. this year.” President Amy Beck sits on the Two roles this year were filled Conservation Alliance Board and is a internally, reflecting our commitment mentor for the Outdoor Industry to promoting professional Association’s leadership programme. development within our team. Rich Hohne, Director of Brand and Consumer Experience, is a long-time We’ve been working with Kathmandu, partner and board member of Big Sky our parent company, to implement Youth Empowerment, which provides more training, mentoring and opportunities for vulnerable teenagers leadership development. in our community to experience We’re establishing key performance success and become contributing indicators around this so we can track members of our community through Looking forward to the future, and review our progress. or in this case, the Beartooth group mentorship and experiential Mountain peaks in the We created a Colture Club this year to adventures. Our newest team Absoroka-Beartooth Wilderness Area of Montana. help us create new ways to build a member, Planning Analyst John supportive and inclusive culture at Nehring, sits on the Gallatin Oboz. Our JEDI task force has been Watershed Council working on enacted to broaden the Oboz team’s restoration projects in the watershed awareness on issues of systemic bias to improve stream health and water BY THE and injustice as well as to research quality and unifying efforts around NUMBERS opportunities for development, addressing water quantity and to recommend actions to Oboz extend water supply planning efforts leadership and reach out to diverse beyond city limits. outdoor and environmental groups to Being true to our people is one of the learn and offer help. We signed our four points of our true to the trail commitment to the Outdoor CEO compass. We’ve made some big Pledge that will track our actions on strides in that internally this year, improving recruitment and and we’re looking forward to pushing representation among Oboz brand further down this path. 41% 59% 27 ambassadors and partners. FEMALE MALE TOTAL STAFF REPRESENTATION REPRESENTATION 94 95
Nathalie Darcas and Leah Thompson wearing My Bikini in the Maldives 96 OUR JOURNEY 97
The Search, Portugal. Our journey. 98 OUR JOURNEY 99 Our journey. Brand values in action.
When I became CEO, we sat down To help face our challenges, we’ve Rip Curl CEO and worked out where we would focus made some changes with our crew to Michael Daly is our sustainability efforts for the next help us ramp things up. We hired decade. We came up with three areas Lucy Nakaroti to fill a brand-new role CUSTOMERS well placed to of focus. of Sustainability Coordinator. WE SUPPORT YOUNG SURFERS WITH OUR GLOBAL GROMSEARCH EVENT SERIES. comment on We’ve also created a sustainability SAVE OUR SURF working group, which is made up of the company’s representatives from departments The first area of focus is on preserving around the business. sustainability and protecting our oceans. This work was already under way with beach Together, we’ll tackle the challenges journey. He’s been cleanups around the world, as well as ahead of us — making sure we focus CREATIVITY AND INNOVATION tree planting and foreshore protection. on the areas where we can have the with the company greatest impact. WE USED RECYCLED MATERIALS TO CREATE BEAUTIFUL NEW SHOP FITOUTS THAT REFLECT OUR BRAND AND HAVE A LOWER ENVIRONMENTAL FOOTPRINT. for 18 years and ENVIRONMENTAL PRODUCTS in the role of CEO This area of focus covers everything from the fabrics we select to swing since 2012. tags and polybags. We are challenging ourselves to push this COMMITTED CREW Rip Curl is a 50-year-old company. area further with our Saltwater WE SUPPORTED PASSIONATE CREW CLIMBING When I started 18 years ago, there Culture Collection. SUMMITS FOR KIDS WHO NEED HEART SURGERY. were only three stores. Now there are more than 200. Rip Curl is a global ACT SUSTAINABLY company with staff on five continents Under this banner are initiatives that and our own manufacturing facility in help us become a better corporate Thailand. citizen – from elevating our supplier When the company founders started base to managing our waste. COMMUNITY AND ENVIRONMENT making plans to retire in the late 90s, OUR PLANET DAY INITIATIVES AROUND THE WORLD PUT CREW TO WORK We are getting better in all of these they put on paper the values and IMPROVING THE ENVIRONMENT IN THE LOCAL COMMUNITIES WHERE WE OPERATE. areas, but we still have a lot of work principles of the brand that they to do. The acquisition by Kathmandu wanted to see carry on. One of those has been a great catalyst for us to values is to actively contribute to the look internally at what we can do communities we operate in, especially better. We are going through the the environment. B Corp baseline assessment, and we HONESTY AND INTEGRITY This is something Rip Curl has done are all in on that. It aligns really well WE’VE JOINED KATHMANDU’S MISSION TO IMPROVE THE LIVES OF PEOPLE MICHAEL DALY very well. We often operate in small with our values. IN OUR SUPPLY CHAIN WITH A TRANSPARENT NEW SUPPLY CHAIN PARTNER. beachside communities where we are CEO I’m very proud that our company is the biggest employers in town. not one that has woken up overnight Here in Torquay, Victoria, there and picked up sustainability because wouldn’t be a facility or organisation it is good for sales. It is something that we haven’t contributed to in that fits the brand values that have some way. I’ve joined our crew been written down for 20 years and planting trees, weeding and removing are lived passionately by our team, rubbish at our annual Planet Day, some of whom have been with the which has run for 20 years now. company for 48 years. Three time World Champion Mick Fanning competing at Pipeline, Hawaii/ 100 OUR JOURNEY 101
Our world. KEY
FACTORIES 98 TOTAL China – 65 India – 15 Bangladesh – 6 Thailand – 3 Vietnam – 3 Australia – 2 France – 1 Indonesia – 2 Italy – 1 Mexico – 1
Sweden
UK Germany MATERIALS SOURCING
Canada China, Taiwan, South Korea, Italy, Thailand, Bangladesh, Indonesia, France India, USA, Japan
China Spain Portugal Italy USA South Korea Japan
Hawaii Mexico Thailand Taiwan Bangladesh
OPERATIONS India Vietnam Stores - 160 Australia 104, NZ 1, Brazil 3, Indonesia Canada 2, Europe 20, Japan 2, USA 28
Tahiti Head office – 8 Brazil Australia 3, Brazil 1, Europe 1, Japan 2, USA 1
Warehouse – 6 Australia 2, Brazil 1, Europe 1, Japan 1, USA 1 Australia South Africa
New Zealand
EVENTS AND ATHLETES
Australia (QLD, VIC, WA), Indonesia, Brazil, South Africa, Tahiti, USA, France, Portugal, Hawaii A total of 10 Rip Curl team-riders attend each of these locations whilst competing on the WSL Championship Tour. 102 OUR SUPPLIERS 103
Kolton Sullivan and Leah Thompson in Indonesia. suppliers. Our 104 OUR SUPPLIERS 105
OUR SUPPLIERS Baptist World Aid. 2019
99 100% 5 EXITS NUMBER OF % OF NEW SUPPLIERS FACTORIES SCREENED USING SOCIAL CRITERIA Rip Curl began contributing to Last year, Rip Curl moved under the “There is always Baptist World Aid’s Ethical Fashion Kathmandu Holdings Limited more to do and Report in 2017. From 2017 to 2018, umbrella, a B Corp with Fair Labor we improved from a C+ to a B+ and Association accreditation. 13 then maintained that score in 2019 This relationship brings a lot of supply more to learn.” TOTAL AUDITS despite increased reporting chain experience, and Rip Curl is ready HELEN SHARP requirements that caused a lot to take the next step up. We have of brands to drop. announced we will align with RIP CURL ETHICAL SOURCING Kathmandu’s supply chain AND COMPLIANCE MANAGER Rip Curl Ethical Sourcing and management under ELEVATE — the Compliance Manager Helen Sharp 53 606 154 same supply chain consultant used by says the approach has been our parent company. NUMBER OF HOURS CORRECTIVE conservative. “Unless we can 100% SUPPLIERS TRAINING STAFF ACTION PLANS back up our claims, we don’t make ELEVATE will help Rip Curl introduce a them, so I think our real position is social media-based grievance probably a bit better than what mechanism for workers that will give we report.” them a voice. “We take it for granted that we can raise an issue if we have Providing all the detail for the report one, but for many people in the world, is a long and arduous process, but it it’s not that easy,” Helen says. has helped give Rip Curl a better picture of where we are and how we “There is always more to do and more Our partners. can improve. to learn,” says Helen. “Working with ELEVATE gives us a presence in- “It can be daunting to look at all the country and allows us to streamline data that is required, but I think things with Kathmandu and even overall we learned that we are doing a share audits. This is a new chapter lot more than we thought we were,” for us. It’s really exciting.” Helen says. “We also became more INTERTEK AUSTRALIAN PACKAGING aware of where we can improve some For 31 years, Rip Curl has owned its COVENANT ORGANISATION We partner with Intertek, a of our processes and procedures.” own factory in Chang Mai, Thailand, (APCO) leading Quality Assurance and which employs 528 people making This year, instead of a report, Baptist testing provider. We are a signatory of the wetsuits and personal floatation World Aid is asking brands to commit Australian Packaging Covenant, devices. to supporting workers in their supply continuing to collaborate with chain as Covid-19 ravages the world. Helen says, “Owning our own factory other industries on sustainable ensures that the workers are fully paid packaging solutions. Rip Curl’s supply chain philosophy is and all rights respected. We also built heavily on relationships — with support many local community some suppliers having been with the projects — including projects to clean company for 25 to 30 years. LEATHER WORKING GROUP AUSTRALIAN INDUSTRY up rubbish, support Children’s Day, “It’s about a partnership based on GROUP support housing the poor and fund Working with a supplier that is mutual respect,” says Helen. medical equipment for the local approved by the Leather AI Group provides unlimited “Empowering the workers is hospital. Working Group helps us to calls to the workplace advice something we can do better with a assess the environmental line, regular award and long-term relationship that allows for compliance, performance compliance updates and improvement.” capabilities, and to promote access to HR, safety and sustainable and appropriate business improvement environmental business resources, webinars, podcasts, practices within the leather networking and knowledge industry. events. 106 OUR PRODUCTS 107
Leilani McGonagle wearing the Saltwater Culture Cheeky Coverage Long Sleeve Swimsuit and Leah Thompson wearing the Saltwater Long Sleeve Surf suit at the beach in Indonesia. products. Our 108 OUR PRODUCTS 109
OUR SUSTAINABLE TOTAL FABRIC SEARCH 152% INCREASE
ORGANIC COTTON REGENERATED POLYAMIDE RECYCLED (ECONYL) POLYESTER
TONNES 3.6 TONNES TONNES 7. 2 2019 6.9 2019 2019
TONNES TONNES TONNES
2020 11.4 2020 22.9 2020 10.3
218% 217% 50%
Molly Picklum wearing the G Bomb Long Sleeve Spring Hi Cut INCREASE INCREASE INCREASE Wetsuit, surfing in NSW.
Made with sustainability One of the biggest challenges with RECYCLED FISHING NETS IN production, reducing the global the Saltwater Culture Collection is SWIMWEAR RANGE warming impact by up to 90%. in mind. managing the extra costs of Senior Swimwear Designer Natalie “I did my research on Econyl because I sustainable products. Consumers Bortolotto had an idea to develop a was sceptical. Some plastic recycling aren’t always willing to pay more for planet-friendly range and then took it uses huge amounts of water and sustainability, so our focus for the a step further. energy, and I wasn’t interested in future is on larger-volume product greenwashing,” Natalie says. “It’s all very well Our Saltwater Culture Collection is Other product divisions were challenged categories where we can have more “I put forward the idea of changing made with sustainability in mind. to create products for the collection. impact and more purchasing power. our entire basics range to be recycled By putting this fabric into a timeless This collection is Rip Curl’s foray into This added Econyl swimwear, organic fabric,” Natalie says. essentials range, Natalie says this to use recycled “Our industry is inherently connected sustainable product development. cotton tees, recycled polyester long-lasting swimwear can be a great with the environment and protecting Eco Surf Essentials launched last year material, but the It’s a place to learn and experiment backpacks and equipment and even part of a carefully considered our environment. We’re also aware using Econyl, a fabric created by with recycled and low-impact footwear made from sugarcane. wardrobe. philosophy is all materials that still deliver the that our industry causes harm, but Italian firm Aquafil that regenerates When the wetsuit division created a durability that Rip Curl products are we all have a vision to make it more industrial plastic and fishing nets. Around 65% of the Rip Curl swim encompassing." recycled polyester rash vest for both sustainable,” Jarrah says. collection now uses recycled elements. famous for. Traditional nylon production uses huge genders, that gave the range a good We’ve used more than 15 tonnes of The next steps are to find ways to amounts of water and produces JARRAH MCDIARMID “The most sustainable thing we can boost in unit numbers. Econyl so far — that’s saved 105 track and measure our impact and nitrous oxide, which is 10 times more do is make really durable products,” barrels of crude oil and 5.71 tonnes of PRODUCT MANAGER EQUIPMENT All Saltwater Culture products use set goals for converting more and potent than carbon dioxide. says Jarrah McDiarmid, Product CO emissions. AND ACCESSORIES recycled polyester trims, recycled paper 2 Manager Equipment and Accessories. more of the range to sustainable It’s estimated that up to 40% of FSC swing tags and string. “That’s what Rip Curl is built upon. fabrics. plastic waste in the ocean is nylon. “We are a brand that is heavily Discarded fishing nets threaten connected to the ocean so I want to It’s one of our key brand values.” “It’s all very well to use recycled “Everyone at Rip Curl is really marine life — trapping whales, make sure we're leaders' in innovation material, but the philosophy is passionate about sustainability, but The first product produced under the dolphins, sharks and turtles. and sustainability. As a designer, all-encompassing. We want to look at it’s still kind of new for us. We’ve got a Saltwater Culture Collection was the thinking about sustainability requires the whole product and how it is shipped, lot to learn in this area. We aren’t Econyl collects this waste and Mirage boardshort, made from me to think outside of the box, which delivered and communicated.” perfect, and neither is this collection. transforms it into a high-quality fabric recycled polyester using recycled I love. And creativity and innovation is But it’s the start, and we’re proud to that uses less water and creates less plastic bottles. one of Rip Curl’s core values, so it fits.” say we are making progress.” waste than traditional nylon 110 OUR FOOTPRINT 111
Pro surfer Mick Fanning surfing in the Maldives. footprint. Our 112 OUR FOOTPRINT 113
Polybag OUR FOOTPRINT footprint BY THE NUMBERS decreased.
This year, we’ve learned that small Product by product, gram by gram, things can make a big difference. bag by bag, our search for more 950,000 55,500 Plastic bags do an important job of sustainable ways of operating is SUSTAINABLY SOURCED SWING TAGS COMPOSTABLE BAGS keeping our product safe from turning up big gains through many REPLACED PLASTIC BAGS damage as they move from suppliers small tweaks. through our distribution centres. The next step is to introduce new and Without them, damage to products better ways to measure our impact could result in huge volumes of waste. and then set targets for continued But that doesn't mean we can’t improvement. improve. NEW POLYBAGS CONTAIN We looked into ways to reduce the RESPONSIBLE MATERIALS FOR impact of our protective polybags by SWING TAGS reducing the thickness of the plastic and increasing the recycled content This year, we changed most of our % swing tags and paper trims to 12,500 40 while still retaining the strength to POLYBAGS SAVED LESS PLASTIC BY WEIGHT AND protect goods in transit. responsibly sourced materials – a mix of Forest Stewardship Council (FSC) IN DENIM TRIAL 30% RECYCLED PLASTIC The magic formula that we settled recycled paper and paper from on uses 40% less plastic and 30% controlled woods. recycled plastic. After use, we aim to recycle as many bags as possible, In our first season, this meant but for any that do end up in landfills, 950,000 responsibly sourced we have also included a swing tags would land in shops. biodegradable additive that means Eyewear, watches and footwear they will break down over time and are the last of our products using will not create microplastics. non-responsible paper, so these will be our next challenge. So far, more than 1 million of these greener bags have been ordered. Our accredited swing tag supplier will track the impact of this change. Another part of this polybag project looked for ways to reduce the total “Swing tags might seem like a very number of polybags. We combined small part of our product,” says items like belts into packs of 5 or 10, Women’s Head of Design Amy Findlay, and we removed polybags on all “but we produce upwards of 9.6 million black wetsuits. of them globally per year.” We trialled putting denim products Swing tags are required on every item into a single large bag instead of to house a barcode and important individually wrapping each one. style information, which are used by We saved 12,500 bags in the denim suppliers, warehouses and in store. trial. And a best-selling towel was “Moving our swing tags to FSC- changed from being sold in a plastic certified paper is a small manoeuvre bag to a reusable tote bag. our team thought we could work Bye-bye plastic. through with our supplier to improve Since we converted our online sales our environmental stance,” Amy says. satchels to home compostable bags, we have saved 55,000 plastic bags.
The Search, Alaska. 114 OUR FOOTPRINT 115
Rip Curl store at Sydney Domestic Airport
Rip Curl Group Store Experience Creative Director James Taylor and Crates, plants and other shop fittings constant work in progress.” This more Manager Angie Vendy was concerned they looked hard at what they could were sourced from second-hand sustainable approach to store fit-outs Timeless store and frustrated by the disposable do to reduce the impact. shops. Disposable point of sale items has been applied to six stores around approach to store fit-outs. from the previous concept were the world, and this will be the new “The aim was to use reclaimed or replaced with point of sale that was approach to refitting Rip Curl’s 70 “Retail fit-outs globally are so sustainable timbers throughout, and long lasting and interchangeable with flagship stores in the future. Each store design pushes disposable” Angie says. “Leases come design permanent elements like recycled stocks. is designed individually, and stand- up every five years and as part of the fixtures that were long lasting and alone stores are often stripped back to lease renewal a new fit out is required could be reused at the end of the Angie says the first fit-out was reveal their raw architectural features. back against or a new brand goes into that space.” lease. We also wanted to create a challenging to source the quantities The common practice is to de-fit the timeless, authentic retail environment and ensure all of the reclaimed “There’s so much more we want to do. site and discard all components and that reflected the DNA of our 50-year materials passed airport We would love to have our retail stores disposable start again. We are very passionate old brand.” requirements. “Reaching the vision for Green Star accredited. The biggest plus about changing that for Rip Curl.” this concept required all team from the Sydney Airport store has been Reclaimed hardwood flooring, ceiling members to come together to execute the customer feedback, and the staff When designing the new concept for and wall linings were used along with all elements. We definitely had our love the feeling of working there.” Rip Curl at the Sydney Domestic custom made bespoke fixture items fitout culture. challenges with this concept and it’s a Terminal, Angie partnered with made out of second hand timbers. 116 OUR COMMUNITY 117
Rip Curl surfers comparing equipment on the North Shore Hawaii. community. Our 118 OUR COMMUNITY 119 We surf, we care.
This is the idea that governs our The Great Ocean Road Coast years our crew gets stuck into the less approach to community – whether Committee has been working with glamorous jobs of weeding and we’re planting trees or pulling weeds Rip Curl Planet Day for 20 years. picking up rubbish, and we’re proud around our head office on the Project Manager Evan Francis says that the trees we’ve planted have a Victorian coast or other international Planet Day helps foster community survival rate of more than 80%. offices or supporting communities ownership and appreciation, which he Rip Curl Group CEO and Planet Day who host our GromSearch junior surf says is one of the best ways to protect participant Michael Daly says, events around the world. this unique coastline. “The Rip Curl Planet Day has become Each year for the last 20 years, “Projects have ranged from clearing a popular tradition for our crew, and Rip Curl staff at Torquay swathes of weeds throughout the it’s awesome to see the results from headquarters have allocated one dunes to large revegetation projects, previous years in our coastal areas.” working day to work with local many of which would not have been environmental groups to improve started unless we had the workforce AUSTRALIAN BUSHFIRE SUPPORT the Surf Coast area. provided by Rip Curl.” The Australian bushfires had a big Planet Day, as we call it, has resulted We asked the volunteer groups we impact on our community, and we in more than 100,000 indigenous work with how we can best contribute, showed our support by donating plants reintroduced and more than and they told us what they need most $73,285 from sales of our eco tote bag 17,000 hours of volunteer labour to is hours. There’s no point planting to local rural fire services in each state help those plants survive and thrive. trees if they don’t survive, so some where sales were made. To support threatened wildlife, we also donated to Wildlife Victoria, Port Stephens Koalas and Adelaide Koala and Wildlife Hospital.
PLANET DAY AUSTRALIA 170 20 17,000 STAFF YEARS VOLUNTEER PARTICIPANTS HOURS 3400 100,000 WORKING DAYS COMMITTED INDIGENOUS PLANTS
Nyxie Ryan gets chaired up the beach after winning a GromSearch event in Australia. 120 OUR COMMUNITY 121 Planet Day dispatches from our global crew.
UNITED STATES and participation. But for others, “Right through the event is a springboard to a In partnership with the Surfrider professional surfing career, so the GromSearch Foundation, our US crew spent their participants can also test themselves Planet Day picking up more than series, we always against elite-level surfers from their 1200 “pounds of trash”. Only three of area, their country and, eventually, 11 scheduled cleanups went ahead try to think from around the world.” this year because of Covid-19. carefully about In September, 100 employees The GromSearch events are also an how to reduce collected 50 lb of trash from opportunity to give back to local San Onofre Beach in California. communities, and we leave it to our packaging and In December, 150 volunteers including crew on the ground to come up with Rip Curl staff collected 1100 lb in the best ways to do this. In Brazil, waste, even with Haleiwa, Hawaii, and in February, each participant is given a native tree prizes." 70 volunteers including Rip Curl staff to plant as part of the competition, collected 55 lb from the beach in and we’ve partnered with the Ventura, California. Eco Local Brazil charity to make MARK FLANAGAN Rip Curl GromSearch “the most environmental friendly amateur RIP CURL NATIONAL TEAM, BRAZIL surfing event in Brazil”. EVENT & PARTNERSHIP MANAGER Rip Curl Brazil works with beachfront hotel Jequitimar and their staff to In Bali, they run a beach cleanup run a beach cleanup on International alongside the event, and in Costa Coastal Cleanup Day each Rica, the crew worked with a local September. school to plant trees that would help regenerate the foreshore. At home in Around 80 to 100 people give their Australia this year, instead of a prize time each year to the event, which is trophy, we donated $100 to Australian followed by snacks, drinks and free wildlife bushfire recovery in the name surf lessons. of each winner.
SUPPORTING GROMS ACROSS The GromSearch International final THE GLOBE champs bring the top surfers from every country together. Around the world, Rip Curl fills the development gap between junior “Right through the GromSearch series, talent and the professional surfing we always try to think carefully about tour with our GromSearch junior how to reduce packaging and waste, surfing events. This series runs in even with prizes. We might order more than 10 countries around boxes of towels with no individual the globe. packaging straight from the manufacturer so we don’t bring any Mark Flanagan, Rip Curl National plastic packaging to the event. Team, Event & Partnership Manager, This year, we awarded 124 Rip Curl says the event is designed to mix fun clocks with place ranking plaques and competition. instead of trophies, because they “For some kids, it’s really just about would be more likely to go on to have turning up and hanging with friends a useful life,” Mark says. at the beach, so a big focus is fun 122 OUR CREW 123
Rip Curl crew at Torquay, Australia Head Office. crew. Our 124 OUR CREW 125 Growing leaders.
A development questionnaire at the The search is beginning of the programme identifies not just about areas of opportunity. This was supported with online training waves. It’s materials and one-on-one coaching sessions. They worked at their own about searching pace through the course work and ourselves to be discussed learnings with their coach. the best we can. Internal training sessions were organised to provide the knowledge At Rip Curl, our and understanding of our global business they would need to progress learning and their careers at Rip Curl. During the development programme, participants spent time with sales, retail and distribution programmes are centre teams to learn about the customer experience of their designed to help products. Participants submitted our crew grow worksheets detailing their experience and learnings to their direct managers into new roles and and the GM Product. become better At the end of the programme, 360° feedback was collected and leaders. delivered along with a discussion about their future progression at Rip Curl. Feedback was also gathered from the participants to be used when creating future leadership programmes at Rip Curl.
This year, four Assistant Product Rip Curl Learning, Development and Managers joined a programme that Communications Specialist Lauren combined external leadership Biehl says, “In the modern workplace, coaching with internal development. leaders are more than people The programme was designed to managers. They need to create a provide skills and knowledge to move vision to inspire their teams and into their next roles within Rip Curl. provide support, communication and direction. During the last few months, At Rip Curl, the Product Manager role the global pandemic has shown how requires crew to have a large and crucial having good leaders is to a diverse skill set. They need to business.” understand all aspects of the Rip Curl business to build strong relationships “We developed this programme to with suppliers, wholesalers and other give Assistant Product Managers the contacts. The role requires team tools to reflect and learn to be better members to be agile and change leaders. By giving them the support ideas, orders or products at a now, they will be able to continue to Rip Curl International athletes mixing with crew at the Torquay moment’s notice. kick goals for Rip Curl.” Head Office rooftop. 126 OUR CREW 127
CREW PROFILE: HARRY - His monthly reports document what TRAINEE PROGRAMME he’s learned but also provide an opportunity to suggest improvements Rip Curl worker Claire Dupont on a Harry worked for Rip Curl in retail ‘Summits of My Heart’ charity climb. that he or other departments would before applying to the trainee like to see implemented. programme, where he is learning the ropes on his path to becoming Harry is hoping to secure a product a Product Manager. manager role when his traineeship is finished. He spent time in the warehouse, with the sourcing and development team, “I’ve always wanted to work in the surf with purchasing and planning and industry, and I’ve really connected then in sales before Covid-19 with the brand values at Rip Curl. interrupted the schedule. The product manager role is massive. You’re there from the start to finish, “It’s very hands on. You have to follow and you’re responsible for making sure crew around the office so it’s been a the product is up to Rip Curl bit hard lately,” Harry says. standards. Every day is different, and Harry says the programme has been you get to work with lots of different a huge benefit. “Being a product people – that’s what I love about it.” manager, you have to have good Harry says that being able to see his knowledge of the business as a whole. career path is important. It’s also helped me create relationships and friendships – “To be able to see where I am Harry Mann wearing the Rip Curl Traineeship programme knowing people and their roles has and where I could finish is huge. Fadeout Tee, enjoying a post surf coffee at Flume Beach. searches for tomorrow’s been a huge benefit.” It’s something to work towards.” product managers. COMMITTED CREW: EQUAL Ozmosis Leopold store took Danielle You can only experience it.” OPPORTUNITY WORKPLACE on. Her manager Kristie says, “We Programme directors say employment love having Danielle as part of our Last year, one of the stores in our helps kids like Danielle to grow and be team. We have seen her grow so subsidiary retailer Ozmosis more independent and happier. much in confidence.” Every 12–18 months, a junior Rip Curl in regularly to assess if any extra Claire launched the Summits of collaborated with Ticket to Work to Danielle is still employed at employee is selected to take part in a time with particular departments My Heart project to raise money for support vision-impaired secondary Danielle says, “I feel pretty proud of Ozmosis Leopold. 12-month traineeship programme in is needed. children with cardiac conditions. student Danielle with her first myself for getting a job, and I feel the product division. Trainees learn on Climbing 90 summits in the French employment opportunity. good going to work.” At the end of the programme, the the job from senior members of the Alps with fellow crew, well-known trainee’s performance is reviewed by Danielle joined the Ticket to Work Her teachers say her school work has team. They gain key skills in their athletes and sometimes even her their direct manager and the GM programme after being improved, and her grandmother says division but also spend time learning daughter, Claire raised 1 cent for each Product. If there is an assistant recommended by her learning mentor. she now has the confidence to do about all aspects of the business. heartbeat – more than €90,000 so far. product manager role available, The programme helps students work anything she wants. “Feeling like The programme’s goal is to give the This has paid for two children to have trainees who have exceeded up résumés, practise doing interviews you’re really worthwhile. You can’t trainee all the skills and knowledge heart surgery and has contributed to expectations are likely to be placed and tour different industries. teach that. You can’t buy that. they need to step into an assistant doctor training and supported 10 in this position. product manager role. surgical centres.
Trainees rotate into different SUPPORTING THE PASSIONS OF Rip Curl has contributed to Claire’s departments each month, where they OUR CREW mission financially, physically (with spend time with crew and managers. crew joining Claire on five summits) This gives them a well-rounded Claire Dupont works for Rip Curl and logistically with gear and by understanding of the Rip Curl France. She is the mother of promoting the project on social business and how each area interacts 10-year-old Camille, who was born media channels. with the product division. At the end with a triatrial heart condition and Claire says, “It’s not a race and I’m of each rotation, the trainee compiles had heart surgery as an infant. not a top athlete. I am an outdoor a report on their learnings, which is “She suffered post-operative lover with a strong heart, and this is a shared with their direct manager and conditions and had to have a partial human outdoor adventure in support the GM Product. transplant,” Claire says. “We won this of children with a cardiac condition.” Danielle joined the Ticket to Work war after a long fight. Today, I want programme collaboration with The Learning, Development and Ozmosis after being recommended Communications Specialist checks to share this victory with all the by her learning mentor. people who have supported me.” 128 APPENDICES 129
Sustainability Report 2020: Appendices 130 APPENDICES 131 132 APPENDICES 133
TABLE 1: GRI GENERAL STANDARD DISCLOSURES
IND. DESCRIPTION REFERENCE PAGE # NOTES IND. DESCRIPTION REFERENCE PAGE # NOTES
ORGANISATIONAL PROFILE GOVERNANCE
102 - 1 Name of the organisation Cover page 1 Kathmandu Pty Limited, Kathmandu Limited 102 - 18 Governance and structure Annual Report 2020 Annual Report The Board guides the overall governance of our and Kathmandu UK Limited. For all Kathmandu 2020 organisation. Please from page 78 in our 2020 Holdings subsidiaries see page 63 of the 2020 Annual Report for more information on our Annual report. governance and structure.
102 - 2 Activities, brands, products Introduction Kathmandu is an outdoor lifestyle and STAKEHOLDER ENGAGEMENT and services adventure brand. We sell our own branded gear including other brands through our online, retail 102 - 40 List of stakeholder groups Our journey, 14-15 — and wholesale network. Our stakeholders table Table 3 on pg 138 102 - 3 Location of headquarters Our world 16-17 Kathmandu Head Office, 223 Tuam Street, Christchurch 8011, New Zealand. 102 - 41 Collective bargaining This appendix Table 10 on pg — agreements 142 102 - 4 Location of operations Our world 16-17 — 102 - 42 Identifying and selecting Our journey, —— 102 - 5 Ownership and legal form This appendix This appendix Kathmandu is a publicly listed company. For stakeholders Our stakeholders table more information, please see page 78 in our 2020 Annual Report. 102 - 43 Approach to stakeholder Our journey, 14-15 — engagement Our stakeholders table Tables 3 & 4 102 - 6 Markets served Our world, this appendix 16-17 Kathmandu sells products through our store on pg 138-139 network in Australia, New Zealand and the UK. We also sell online and have begun to sell 102 - 44 Key topics and concerns Our journey, 14-15 — through wholesale partners internationally. raised Our stakeholders table Tables 3 & 4 on pg 138-139 102 - 7 Scale of the organisation Our world, Our team 16-17 For full financial disclosures, please see from Annual Report 2020 54-61 page 23 in our Annual Report 2020. REPORTING PRACTICE
102 - 8 Information on employees Our team, this appendix 54-61 — 102 - 45 Entities included in the Annual Report 2020 — Kathmandu Pty Limited, Kathmandu Limited and other workers Table 7 on pg consolidated financial and Kathmandu UK Limited. For all Kathmandu 141 statements Holdings subsidiaries see page 63 of the 2020 Annual report. 102 - 9 Supply chain Our world, Our suppliers, 16-17 — Our products 18-23 102 - 46 Defining content and topic Our journey, 10-17 — 24-35 boundaries Our stakeholders table, Tables 3 & 4 Our Impacts table on pg 138-139 102 - 10 Significant changes to the Our world, Our suppliers, 16-17 — organisation and its supply Our products 18-23 102 - 47 List of material topics Our journey, 10-17 — chain 24-35 Our stakeholders table, Tables 3 & 4 Our Impacts table on pg 138-139 102 - 11 Precautionary principle Our suppliers, customer 18-23 We use a precautionary approach across each approach health and safety, 24-35 department of the business to ensure we do not 102 - 48 Restatements of information This appendix — No restatement this year. Our footprint 36-45 harm the environment or people. 102 - 49 Changes in reporting This appendix — This is our fourth year using the new GRI 102 - 12 External initiatives Our journey 10-17 We collaborate with specialist organisations Standards reporting framework. to support our sustainability strategy and outputs. Collaboration is absolutely core to our 102 - 50 Reporting period This appendix — 1 August 2019 to 31 July 2020. development as a business. 102 - 51 Date of most recent report This appendix — Kathmandu Holdings Sustainability Report 2020 102 - 13 Membership of associations Our journey, 14-15 Collaboration is fundamental to our 01/08/2019 — 31/07/2020 Our suppliers, sustainability strategy and programme. Without Our products, our memberships, we would not understand the 102 - 52 Reporting cycle This appendix — Annual (01/08/2019 — 31/07/2020). Our footprint, complexities of our impacts and outreach to Our community global initiatives and communities. 102 - 53 Contact point for questions This appendix — Olivia Barclay [email protected] regarding the report STRATEGY
102 - 54 Claims of reporting in — — This report has been prepared in accordance 102 - 14 Statements from senior Chairman and CEO 3 — accordance with the GRI with the GRI Standards Core option. decision maker report standards
ETHICS AND INTEGRITY 102 - 55 GRI content index This appendix — —
102 - 16 Values, principles, standards, Our team 56-57 See our Code of Conduct 102 - 56 External assurance This appendix — Kathmandu has adopted numerous and norms of behaviour certifications, partnerships and programmes that verify our various sustainability initiatives. This report has not been externally assured. 134 APPENDICES 135
TABLE 2: GRI TOPICS
TOPIC REFERENCE PAGE # NOTES TOPIC REFERENCE PAGE # NOTES
GRI 407: FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING GRI 412: HUMAN RIGHTS ASSESSMENT
GRI 103: 103 - 1: Explanation of the Our journey, 16-17 GRI 103: 103 - 1: Explanation of the Our journey, 16-17 Management material topic and its boundary Our suppliers 18-23 Management material topic and its boundary Our suppliers 18-23 approach Table 4 on approach Table 4 on pg 139 pg 139
103 - 2: The management Management Table 5 on 103 - 2: The management Management Table 5 on approach and its components approach table pg 140 approach and its components approach table pg 140
407 - 1: Operations and suppliers in which Our suppliers 18-23 78% of our suppliers are in China. Due to the communist 412 - 1: Operations that have been subject Our suppliers 18-23 Nil. workers’ rights to exercise freedom of government, individual worker rights including freedom to human rights reviews or impact association or collective bargaining may of association and collective bargaining are inevitably assessments be violated or at significant risk. at risk. Collective bargaining is almost unheard of, and independent unions do not typically have any real power 412 - 2: Employee training on human rights Our suppliers 18-23 680 hours of training and around 50% of Head Office to leverage change in wages or working conditions. policies or procedures staff have received the training. Updating our code of conduct and terms of trade documents; creating a new CSR strategy that puts 412 - 3: Significant investment agreements and Our suppliers 18-23 Every one of our 99 factories has to enter into an more emphasis on performance and partnership and contracts that include human rights agreement with Kathmandu, which includes signing less emphasis on policing and compliance; investing in clauses or that underwent human rights and agreeing to abide by and be assessed against our a new CSR professional services company specialising screening code of conduct. A significant investment includes in sustainability and supply chain analytics; designing any and every supplier because no matter how much and implementing customised programmes that reflect we spend with a supplier, our commitment to our our unique supply chain; worker surveys and improved stakeholders and shareholders is to invest our resources grievance mechanisms; supplier training and education. into our supply chain to ensure that human rights are protected. GRI 408: CHILD LABOUR GRI 412: SUPPLIER SOCIAL ASSESSMENT GRI 103: 103 - 1: Explanation of the Our journey, 16-17 Management material topic and its boundary Our suppliers 18-23 GRI 103: 103 - 1: Explanation of the Our journey, 10-19 approach Table 4 on Management material topic and its boundary Our suppliers 18-23 pg 139 approach Table 4 on pg 139 103 - 2: The management Management Table 5 on approach and its components approach table pg 140 103 - 2: The management Management Table 5 on approach and its components approach table pg 140 408 - 1: Operations and suppliers at significant Our suppliers 18-23 Child labour is common in the international apparel risk for incidents of child labour industry, especially in Tier 2 and 3. We created 414 - 1: New suppliers that were screened using Our suppliers 18-23 100% and implemented a mandatory child labour and social criteria forced labour policy company wide. We also have a partnership with a consultancy specialising in advising 414 - 2: Negative social impacts in the supply Our suppliers 18-23 12 audits conducted in FY20 prior to Covid-19, which businesses in child rights and improving the lives of chain and actions taken required greater sharing and acceptance of copy children in supply chains across Asia. audits (35 accepted). Four suppliers were identified as having significant actual and potential negative social GRI 409: FORCED OR COMPULSORY LABOUR impacts. They participated in remediation, training and improvement actions as a result. GRI 103: 103 - 1: Explanation of the Our journey, 16-17 Management material topic and its boundary Our suppliers 18-23 GRI 301: MATERIALS Approach Table 4 on pg 139 GRI 103: 103 - 1: Explanation of the Our journey, 16-17 Management material topic and its boundary Our products 24-35 103 - 2: The management Management Table 5 on approach Table 4 on approach and its components approach table pg 140 pg 139
409 - 1: Operations and suppliers considered Our suppliers 18-23 Forced labour is still common in the international 103 - 2: The management Management Table 5 on to have significant risk for incidents of apparel industry. Migrant workers are especially approach and its components approach table pg 140 forced or compulsory labour vulnerable to forced labour. China, Taiwan, Vietnam, India and Indonesia are all high risk for forced labour No indicator We do not collect recycled materials as a percentage and these are all areas from where we source our according to topic indicator requirements. We collect product. We created and implemented a mandatory data and information in accordance with the Higg child labour and forced labour policy company wide. Index and Textile Exchange reports. We also invested in a new CSR professional services company specialising in sustainability and supply GRI 303: WATER chain analytics with the ability to access worker voice through social media, effective grievance mechanisms GRI 103: 103 - 1: Explanation of the Our journey, 16-17 and anonymous worker surveys. Management material topic and its boundary Our suppliers Table 4 on approach pg 139
103 - 2: The management Management Table 5 on approach and its components approach table pg 140 136 APPENDICES 137
TABLE 2: GRI TOPICS (CONTINUED):
TOPIC REFERENCE PAGE # NOTES TOPIC REFERENCE PAGE # NOTES
GRI 416: CUSTOMER HEALTH AND SAFETY GRI 401: EMPLOYMENT
GRI 103: 103 - 1: Explanation of the Our journey, 16-17 GRI 103: 103 - 1: Explanation of the Our journey, 16-17 Management material topic and its boundary Our products 24-35 Management material topic and its boundary Our team 54-61 approach Table 4 on approach Table 4 on pg 139 pg 139
103 - 2: The management Management Table 5 on 103 - 2: The management Management Table 5 on approach and its components approach table pg 140 approach and its components approach table pg 140
GRI 416 - 2: Incidents of non-compliance 35 Kathmandu takes customer health and safety GRI 401 - 1: New employee hires and employee Table 8 on concerning the health and safety seriously. Kathmandu has implemented practices to turnover pg 142 impacts of products and services safeguard the wellbeing of its customers while in store and using their purchased products. Any health and GRI 401 - 2: Benefits provided to full-time Table 6 on safety-related incidents are treated as high priority employees that are not provided to pg 141 and investigated accordingly with the appropriate temporary or part-time employees. corrective action to prevent reoccurrence. GRI 401 - 3: Parental leave Table 9 on GRI 418: CUSTOMER PRIVACY pg 142
GRI 103: 103 - 1: Explanation of the Our journey, 16-17 GRI 403: OCCUPATIONAL HEALTH AND SAFETY Management material topic and its boundary Our products 24-35 approach Table 4 on GRI 103: 103 - 1: Explanation of the Our journey, 16-17 pg 139 Management material topic and its boundary Our team 54-61 approach Table 11 on 103 - 2: The management Management Table 5 on pg 143 approach and its components approach table pg 140 103 - 2: The management Management Table 5 on GRI 418 - 1: Substantiated complaints concerning This year there was no substantiated complaints in approach and its components approach table pg 140 breaches of customer privacy and regards to breaches of customer privacy and losses of losses of customer data customer data. GRI 403 - 1: Worker representation in formal joint Table 5 on management-worker health and pg 140 GRI 305: EMISSIONS safety committees
GRI 103: 103 - 1: Explanation of the Our journey, 16-17 GRI 403 - 9: Work-related injuries Table 13 on Management material topic and its boundary Our footprint 36-45 pg 144 approach 103 - 2: The management Management Table 5 on GRI 403 - 10: Work-related ill health Table 12 on approach and its components approach table pg 140 pg 143
GRI 305 - 2: Energy indirect (Scope 2) GHG Our footprint 36-45 We account for our greenhouse gas (GHG) emissions GRI 404: TRAINING AND EDUCATION emissions in alignment with the Greenhouse Gas Protocol. Our emission figures are derived from Scope 2 GRI 103: 103 - 1: Explanation of the Our journey, 16-17 purchased electricity usage across our stores, Management material topic and its boundary Our team 54-61 distribution centres and support offices. Our emissions approach factors are sourced from government GHG reporting 103 - 2: The management Management Table 5 on guidance documents published in each jurisdiction approach and its components approach table pg 140 that we operate in. Our FY19 - FY20 Scope 2 emissions have been audited by Toitu Envirocare and certified GRI 404 - 2: Programmes for upgrading employee 54-61 under the carbonreduce programme. skills and transition assistance programmes GRI 305 - 3: Other indirect (Scope 3) GHG Our footprint 36-45 We have aligned our Scope 3 emissions quantification emissions with the Higg Index scoring requirements. We used GRI 404 - 3: Percentage of employees receiving 54-61 There were no end-of-year reviews undertaken due to the carbonreduce software platform to calculate regular performance and career Table 5 on Covid-19 impacts on the business. All staff prepared our Scope 3 emissions using the certification's latest development reviews pg 140 a development plan for the year and had a mid-year emission factors. Our FY19 - FY20 emissions have been review (see Table 14 for Kathmandu figures on page audited by Toitu Envirocare and certified under the 144). carbonreduce programme. GRI 405: DIVERSITY AND EQUAL OPPORTUNITY GRI 305 - 4: GHG emissions intensity Our footprint 36-45 Scope 2 emissions are measured and tracked per store. GRI 103: 103 - 1: Explanation of the Our journey, 10-17 GRI 306: WASTE Management material topic and its boundary Our team 54-61 approach GRI 103: 103 - 1: Explanation of the Our journey, 16-17 103 - 2: The management Management Table 5 on Management material topic and its boundary Our footprint 36-45 approach and its components approach table pg 140 approach Table 4 on pg 139 GRI 405 - 1: Diversity of governance bodies and 54-61 employees Tables 15 & 103 - 2: The management Management Table 5 on 16 on page approach and its components approach table pg 140 145
GRI 306 - 2: Waste by type and disposal method 44-45 138 APPENDICES 139
TABLE 3: OUR STAKEHOLDERS TABLE 4: OUR IMPACTS: WHERE DO THEY OCCUR? Material topics were selected based on their importance to stakeholders and significance of impacts. STAKEHOLDER GROUP ENGAGEMENT MECHANISM FREQUENCY OF KEY ISSUES RAISED The selection of material topics followed the GRI Standards (101) Materiality Principle. ENGAGEMENT MATERIAL TOPIC WHO IT APPLIES TO WHERE IT APPLIES LIMITATIONS Customers — Social media Ongoing — Animal welfare IN ORDER OF PRIORITY AND BOUNDARIES — Customer insights — Waste management — In our stores — Community investment OUR SUPPLIERS — Our website opportunities and sponsorship — Via our customer services team — Human rights in our supply chain Freedom of association and Kathmandu factories and Our supply chain — collective bargaining suppliers — Summit Club member — Product care and repair communication — Microfibres Child labour Kathmandu factories and Our supply chain — suppliers Staff — Performance mechanisms Ongoing — Health and safety — Questionnaire and surveys — Waste management Forced or compulsory labour Kathmandu factories and Our supply chain — — Dream Team meetings — Training suppliers — Other engagement committees — Sustainability leadership Supplier social assessments Kathmandu factories and Our supply chain — Suppliers — Meetings Ongoing — Fair and open procurement suppliers — Site visits practices OUR PRODUCTS — Fair working conditions — Environmental impacts Materials Suppliers, Kathmandu Our operations Our overall sustainable — Product quality and safety materials percentage use against conventional materials Factories — Meetings Ongoing — Fair working conditions is too complex to calculate to — Site visits meet topic requirements. — Audits Products and services Kathmandu, consumers Our operations —
Local communities — In our stores and offices Ongoing — Our impact on communities Customer health and safety Kathmandu, consumers Our operations — — Community events — Social investment and sponsorship — Social media Product labelling Kathmandu, consumers Our operations — — Website Water Suppliers, Kathmandu Our operations — Government — Meetings Quarterly and as required — Economic performance and regulators — Reports — Environmental impacts Marketing Kathmandu, consumers Our operations — — Site visits — Community impacts Customer privacy Kathmandu, consumers Our operations — Shareholders — Our annual reports Quarterly and as required — Economic performance OUR FOOTPRINT — Annual general meeting — All sustainability material issues — ASX and NZX announcements Economic performance Kathmandu, investors Our operations — — Website — Investor roadshows, briefing Energy Kathmandu Our operations and stores — forums Emissions Kathmandu Our operations and stores — Industry associations — Meetings Annually — Environmental impacts — Reports — Community impacts Waste Kathmandu, customers Our operations and stores — — Workshops — Human rights in our supply chain Transport Kathmandu, supply chain Our operations We report on sea and air freight port to port Scope 3 Investment community — ASX announcements Quarterly and as required — ESG performance emissions. — Website — Investor briefings and forums OUR TEAM
Civil society — Social media Ongoing — Human rights in our supply chain Employment Kathmandu Our operations — and community — Requests for information — Environmental impacts organisations Occupational health and safety Kathmandu Our operations — — Fair working conditions — Product materials stewardship Training Kathmandu Our operations — — Supplier management Diversity and equal opportunity Kathmandu Our operations —
Compliance Kathmandu, consumers Our operations — 140 APPENDICES 141
TABLE 5: MANAGEMENT APPROACH TABLE 6: EMPLOYMENT
TOPIC POLICIES AND ACTIVITIES EVALUATION ACCOUNTABLE BENEFITS THAT ARE STANDARD FOR FULL-TIME EMPLOYEES OF THE ORGANISATION BUT ARE NOT PROVIDED TO TEMPORARY OR MANAGEMENT DEPARTMENT PART-TIME EMPLOYEES
Workers' rights: Supplier code of conduct We are members of the We assess our programme Quality and CSR Life insurance freedom of association Fair Labour Association. against the 10 FLA and collective Its 10 principles guide principles to ensure Heath care New Zealand staff only, not offered to part-time store employees bargaining, child our Corporate Social our programme is labour, forced or Responsibility team's comprehensive for Disability and invalidity compulsory labour, strategy working towards accreditation. We recently human rights accreditation in 2018. The evolved our CSR strategy Parental leave assessment, supplier 10 principles and strategy based on the evaluation social assessment corroborates GRI's workers' process. Retirement provision rights indicators, which we respond to. Stock ownership Yes - wider leadership team only Materials, water Azo Dyes Policy, Down Our materials priority We participate in the Product Feather Policy, Leather list guides our materials Textile Exchange report Others Policy, Uzbek Cotton Policy, sustainability strategy. rankings. We use the Higg Nano-Silver Technology Index as a key driver for Statement of Intent, better materials. Perflourinated Chemicals Statement of Intent, Sheep TABLE 7: INFORMATION ON EMPLOYEES AND OTHER WORKERS Mulesing Statement of Intent, Man-Made Cellulosics AUSTRALIA NEW ZEALAND UK TOTAL Policy, Restricted Substances List. BY EMPLOYMENT TYPE
Customer health We research and complete Our quality department We review our research Quality Full-time employees 384 299 1 684 and safety all compliance requirements reviews products before and completion processes before entering new entering the market. Market to achieve continuous Part-time employees 552 273 0 825 products into the market. compliance research. improvement.
Casual 288 56 0 344 Customer privacy We have a stringent policy Our relevant customer Reviews are completed on Customer and process to protect services team are briefed any incidents to achieve Services the privacy of our Summit on the details of the policy continuous improvement. Total employees 1,224 628 1 1,853 Club members and online to ensure no breaches are account customers. made. Communication is BY CONTRACT TYPE highly prioritised with the customer following any Permanent 843 540 1 1,384 incidents. Fixed-term full-time 53 4 0 57 Waste We issued a zero-waste to We engage with all key We review our strategy Brand, landfill by 2025 strategy in stakeholders internally and goals and objectives twice Finance, Retail Fixed-term part-time 40 28 0 68 2019. This strategy is core to externally in managing our a year to evaluate how we Operations the management approach. operational waste. are managing waste. Casual 288 56 0 344
Carbon emissions We have a goal to reduce We report annually to the We evaluate main sources Brand, Total workforce 1,224 628 1 1,853 our Scope 2 emissions per Carbon Disclosure Project. of energy usage across Finance, Retail store by 20% by 2020 from We annually offset our Scope 2 and 3 areas. Operations BY GENDER 2012 levels. We have issued a business staff air travel carbon strategy that aligns at a local offsetting and with the carbonreduce conservation project in Male 522 226 0 748 certification. We are also Australia. Using the Higg using the Higg Index as a Index. Female 702 402 1 1,105 guideline for understanding our Scope 3 emissions. BY AGE GROUP
Team development: As part of our People Plan We engage with all key We conduct interviews and Human <30 710 307 0 1,017 new employee strategy, we integrate these stakeholders internally and surveys as a way to inform Resources hires and turnover, material topics as part of externally in managing our our strategy approach. 30–50 398 264 1 663 benefits for full-time our continuous improvement strategy. employees, parental management approach. 50+ 116 57 0 173 leave, occupational health and safety, BY CATEGORY training and education, diversity, Executive 2 4 0 6 equal opportunity
Senior management 15 33 0 48
Management 328 177 0 505
Non-management 879 414 1 1,294 142 APPENDICES 143
TABLE 8: HIRING AND TURNOVER TABLE 11: OCCUPATIONAL HEALTH AND SAFETY
AUS NZ UK AUS NZ UK OCCUPATIONAL HEALTH AND SAFETY MANAGEMENT SYSTEM
NEW HIRES TURNOVER A statement of whether an occupational health and safety Health and safety management system has been implemented management system has been implemented, including because of legal requirements: Permanent Total 161 122 0 Permanent Total 516 287 9 whether: • Model Work Health and Safety (WHS) Act • Model WHS Regulations Indefinite Total 140 98 0 Indefinite Total 311 157 9 i. the system has been implemented because of legal • Model Codes of Practice requirements and, if so, a list of the requirements • Occupational Health and Safety Act 2004 (Vic) • Occupational Health and Safety Regulations 2017 (Vic) BY GENDER BY GENDER ii. the system has been implemented based on recognised • Health and Safety at Work Act (HSWA) 2015 risk management and/or management system standards/ • Occupational Safety and Health Act (United States) Permanent Male 74 46 0 Permanent Male 217 123 8 guidelines and, if so, a list of the standards/guidelines Kathmandu is transitioning to the International Safety Permanent Female 87 76 0 Permanent Female 299 164 1 Standard ISO 45001 over the next 18 months.
Indefinite Male 67 37 0 Indefinite Male 129 58 8 A description of the scope of workers, activities and workplaces Scope of workers - support offices, distribution centres, stores, covered by the occupational health and safety management casual, part-time, full-time, fixed-term. Indefinite Female 73 61 0 Indefinite Female 182 99 1 system and an explanation of whether and, if so, why any workers, activities or workplaces are not covered Activities include-logistics, administration, customer service BY AGE GROUP BY AGE GROUP and sales, stock management, manual handling, staff management, product management. Permanent <30 104 85 0 Permanent <30 365 194 3
Permanent 30–50 52 36 0 Permanent 30–50 127 76 5
Permanent 50+ 5 1 0 Permanent 50+ 24 17 1 TABLE 12: WORK-RELATED ILL HEALTH
Indefinite <30 90 65 0 Indefinite <30 194 99 3 ALL EMPLOYEES Indefinite 30–50 46 31 0 Indefinite 30–50 97 45 5 Number of fatalities as a result of work-related ill health 0 Indefinite 50+ 4 2 0 Indefinite 50+ 20 13 1 Number of cases of recordable work-related ill health 0
Main types of work-related ill health N/A
TABLE 9: PARENTAL LEAVE ALL WORKERS WHO ARE NOT EMPLOYEES BUT WHOSE WORK AND/OR WORKPLACE IS CONTROLLED BY THE ORGANISATION
MALE FEMALE Number of fatalities as a result of work-related ill health 0
1 Report the number of employees by gender who were entitled to parental leave. 602 875 Number of cases of recordable work-related ill health 0
2 Report the number of employees by gender who took parental leave. 2 57 Main types of work-related ill health N/A
3 Report the number of employees who returned to work after parental leave 2 45 WORK-RELATED HAZARDS THAT POSE A RISK OF HIGH-CONSEQUENCE INJURY ended, by gender.
How these hazards have been determined Near-miss and incident 4 Report the number of employees who returned to work after parental leave 2 14 reporting, risk assessments ended who were still employed 12 months after their return to work, by gender.
Which of these hazards have caused or contributed to cases of ill health during the Manual handling 5 Report the return to work rate of employees who returned to work after leave 100% 79% reporting period ended, by gender.
Actions taken or under way to eliminate these hazards and minimise risks using the Multiple 6 Report the retention rate of employees who returned to work after leave ended, 70% 80% hierarchy of controls by gender.
WHETHER AND, IF SO, WHY ANY WORKERS HAVE BEEN EXCLUDED FROM THIS DISCLOSURE, INCLUDING THE TYPES OF WORKER EXCLUDED
Workers that have been excluded from the disclosure 0 TABLE 10: COLLECTIVE BARGAINING AGREEMENTS ANY CONTEXTUAL INFORMATION NECESSARY TO UNDERSTAND HOW THE DATA HAS BEEN COMPILED, SUCH AS ANY STANDARDS, METHODOLOGIES AND ASSUMPTIONS USED COLLECTIVE BARGAINING AGREEMENTS
Percentage of total employees covered by collective bargaining agreements 0 144 APPENDICES 145
TABLE 13: WORK-RELATED INJURIES TABLE 15: DIVERSITY
GENDER DIVERSITY AGE DIVERSITY FOR ALL EMPLOYEES
MALE FEMALE <30 30–50 50+ Number of fatalities as a result of work-related injury 0 EXECUTIVE EXECUTIVE Number of high consequence work related injuries (excluding fatalities) 2 2019 9 1 2019 8 3 Number and rate of recordable work-related injuries 129 2020 4 2 2020 5 1 Main types of work-related injury Bruising/swelling, cuts, sprains, strains.
FOR ALL WORKERS WHO ARE NOT EMPLOYEES BUT WHOSE WORK AND/OR WORKPLACE IS CONTROLLED BY THE ORGANISATION: SENIOR MANAGEMENT SENIOR MANAGEMENT
Number and rate of fatalities as a result of work-related injury 0 2019 32 18 2019 45 11
Number and rate of high-consequence work-related injuries (excluding fatalities) 0 2020 31 17 2020 1 37 10
Number and rate of recordable work-related injuries 1 MANAGEMENT MANAGEMENT Main types of work-related injury Cut finger 2019 176 316 2019 183 272 44 Number of hours worked Unable to calculate hours for contractors. 2020 185 320 2020 193 273 39
WORK-RELATED HAZARDS THAT POSE A RISK OF HIGH-CONSEQUENCE INJURY
NON-MANAGEMENT How these hazards have been determined Near-miss incidents NON-MANAGEMENT
2019 613 859 Which hazards have caused or contributed to cases of injury during the 0 2019 1,012 378 95 reporting period 2020 528 766 2020 823 348 123 Actions taken or under-way to eliminate these hazards and minimise risks using the hierarchy Engineering controls, of controls administrative controls, substitution.
ACTIONS TAKEN OR UNDER WAY TO ELIMINATE THESE HAZARDS AND MINIMISE RISKS USING THE HIERARCHY OF CONTROLS
Whether the rates have been calculated based on 200,000 or 1,000,000 hours worked N/A - no rates calculated TABLE 16: DIVERSITY (KATHMANDU HOLDINGS BOARD AND GROUP EXEC.) Whether and, if so, why any workers have been excluded from this disclosure, including the N/A types of worker excluded GENDER DIVERSITY AGE DIVERSITY
Any contextual information necessary to understand how the data has been compiled, such N/A MALE FEMALE <30 30–50 50+ as any standards, methodologies and assumptions used BOARD BOARD
2019 5 1 2019 6
TABLE 14: PERCENTAGE OF TOTAL EMPLOYEES BY GENDER AND BY EMPLOYEE CATEGORY WHO RECEIVED 2020 5 1 2020 6 A REGULAR PERFORMANCE AND CAREER DEVELOPMENT REVIEW DURING THE REPORTING PERIOD*
EXECUTIVE SENIOR MANAGEMENT NON- TOTAL GROUP EXECUTIVE TEAM* GROUP EXECUTIVE TEAM* MANAGEMENT MANAGEMENT 2020 5 2020 4 1 Number of employees receiving 6 46 398 956 1,406 performance reviews/appraisals
Male 4 30 179 344 557
Female 2 16 219 612 849
Total number of employees 6 48 505 1,294 1,853
Percentage of employees receiving 100% 96% 79% 74% 76% performance reviews/appraisals
* There were no end-of-year reviews undertaken due to Covid-19 impacts on the business. All staff prepared a development plan for the * Kathmandu Holdings Limited executive team was established in FY20 after the acquisition of Rip Curl. year and had a mid-year review. These numbers are taken from Kathmandu's mid-year reviews. 146 APPENDICES 147 148 APPENDICES 149
TABLE 1: GRI GENERAL STANDARD DISCLOSURES
IND. DESCRIPTION REFERENCE PAGE # NOTES 102 - 18 Governance and structure Annual Report 2020 Annual The Board guides the overall governance of our Report organisation. Please see from page 78 in our ORGANISATIONAL PROFILE 2020 Annual Report 2020 for more information on our governance structure. 102 - 1 Name of the organisation Cover page 1 Oboz Footwear LLC. For all Kathmandu Holdings subsidiaries see page 63 of the 2020 IND. DESCRIPTION REFERENCE PAGE # NOTES Annual Report. STAKEHOLDER ENGAGEMENT 102 - 2 Activities, brands, products Introduction Oboz is a leading North American brand of and services handmade outdoor footwear. We sell our 102 - 40 List of stakeholder groups Our journey, 64-71 — own branded footwear through our wholesale Our stakeholders Table 4 on network. pg 155
102 - 3 Location of headquarters Our world 68-69 201 South Wallace Suite A-1 102 - 41 Collective bargaining This index Table 10 on — Bozeman, Montana, United States of America agreements pg 159
102 - 4 Location of operations Our world 68-69 — 102 - 42 Identifying and selecting Our journey, 64-71 — stakeholders Our stakeholders 102 - 5 Ownership and legal form This appendix 68-69 Oboz is a publicly listed company. For more information, please see from page 78 in our 102 - 43 Approach to stakeholder Our journey, 64-71 — Annual Report 2020. engagement Our stakeholders Tables 3 & 4 on pg 102 - 6 Markets served Our world, this appendix Oboz sells products through our wholesale 154-155 network in the United States, New Zealand, Australia, United Kingdom, Taiwan, Canada 102 - 44 Key topics and concerns Our Journey, 64-71 — and Japan. raised Our stakeholders Tables 3 & 4 on pg 102 - 7 Scale of the organisation Our world, Our team. 68-69 For full financial disclosures, please see page 23 154-155 Annual Report 2020 90-93 in our Annual Report 2020. REPORTING PRACTICE 102 - 8 Information on employees Our team, this appendix 90-93 — and other workers Table 7 on 102 - 45 Entities included in the Annual Report 2020 Annual Oboz Footwear LLC. For all Kathmandu pg 157 consolidated financial Report Holdings subsidiaries see page 63 of the 2020 statements 2020 Annual report. 102 - 9 Supply chain Our world, Our suppliers, 68-69 — Our products 72-75 102 - 46 Defining content and topic Our journey, 64-71 — 76-79 boundaries Our stakeholders, Tables 3 Our impacts & 4 on pg 102 - 10 Significant changes to the Our world, Our suppliers, 68-69 — 154-155 organisation and its supply Our products 72-75 chain 76-79 102 - 47 List of material topics Our journey, 64-71 — Our stakeholders, Tables 3 102 - 11 Precautionary principle Our suppliers, Customer 64-71 We use a precautionary approach across each Our impacts & 4 on pg approach health and safety, 72-75 department of the business to ensure we do not 154-155 Our footprint 76-79 harm the environment or people. 102 - 48 Restatements of information This appendix — No restatement this year. 102 - 12 External initiatives Our partners 70-71 We are starting our journey of collaborating with external specialist organisations 102 - 49 Changes in reporting This appendix — This is our first year using the new GRI and Kathmandu Limited to support our Standards reporting framework. sustainability strategy and impacts. 102 - 50 Reporting period This appendix — 1 August 2019 to 31 July 2020. 102 - 13 Membership of associations Our journey, 70-71 Collaboration will drive our future three Our suppliers, year sustainability strategy. Our current 102 - 51 Date of most recent report This appendix — Kathmandu Holdings Sustainability Report 2020 Our products, memberships allow us to understand the (01/08/2019 — 31/07/2020). Our footprint, complexities of some of our impacts. Our community 102 - 52 Reporting cycle This appendix — Annual (01/08/2019 — 31/07/2020).
STRATEGY 102 - 53 Contact point for questions This appendix — Amy Beck [email protected] regarding the report 102 - 14 Statements from senior Chairman and CEO 3 — decision maker report 102 - 54 Claims of reporting in Back cover — This report has been prepared in accordance accordance with the GRI with the GRI Standards Core option. ETHICS AND INTEGRITY standards
102 - 16 Values, principles, standards, Our team 90-93 See our Code of Conduct. 102 - 55 GRI content index This appendix — — and norms of behaviour 102 - 56 External assurance This appendix — Oboz is on the journey to expand our GOVERNANCE partnerships and programmes that verify our sustainability initiatives. 150 APPENDICES 151
TABLE 2: GRI TOPICS
TOPIC REFERENCE PAGE # NOTES TOPIC REFERENCE PAGE # NOTES
GRI 407: FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING 412 - 3: Significant investment agreements and Our suppliers 72-75 Every one of our three suppliers has to enter contracts that include human rights into an agreement with Oboz which includes GRI 103: 103 - 1: Explanation of the Our journey, 64-71 clauses or that underwent human rights signing and agreeing to abide by and be assessed Management material topic and its boundary Our suppliers 72-75 screening against our Code of Conduct. A "significant approach Table 3 on investment" includes any and every supplier pg 154 because no matter how much we spend with a supplier, our commitment to our stakeholders 103 - 2: The management Management Table 5 on and shareholders is to invest our resources into approach and its components approach table pg 156 our supply chain to ensure that human rights are protected. 407 -1: Operations and suppliers in which workers Our suppliers 72-75 100% of our suppliers are in Vietnam. We are rights to exercise freedom of association unclear on their ability to exercise freedom of GRI 412: SUPPLIER SOCIAL ASSESSMENT or collective bargaining may be violated or association or collective bargaining. We have at significance risk updated our code of conduct and terms of trade GRI 103: 103 - 1: Explanation of the Our journey, 64-71 documents; created a new CSR strategy that puts Management material topic and its boundary Our suppliers 72-75 more emphasis on performance and partnership approach Table 3 on and less emphasis on policing and compliance. pg 154
GRI 408: CHILD LABOUR 103 - 2: The management Management Table 5 on approach and its components approach table pg 156 GRI 103: 103 - 1: Explanation of the Our journey, 64-71 Management material topic and its boundary Our suppliers 72-75 414 - 1: New suppliers that were screened using Our suppliers 72-75 100% approach Table 3 on social criteria pg 154 414 - 2: Negative social impacts in the supply Our suppliers 72-75 Our three factories were audited at the end of 103 - 2: The management Management Table 5 on chain and actions taken FY19 and corrective action plans were issued to approach and its components approach table pg 156 each of them to be worked through in FY20.
408 - 1: Operations and suppliers at significant Our suppliers 72-75 Child labour is common in the international Dieu Duc Viet Nam Co., Ltd risk for incidents of child labour apparel and footwear industry, especially in Tier 2 Audited 31 May 2019 and 3. We created and implemented a mandatory 23 corrective action plans were issued child labour and forced labour policy for all Tier 1 suppliers. General Shoes Vietnam Audited 11 June 2019 GRI 409: FORCED OR COMPULSORY LABOUR 15 corrective action plans were issued
GRI 103: 103 - 1: Explanation of the Our journey, 64-71 Pouyuen Vietnam Company Management material topic and its boundary Our suppliers 72-75 Audited 13 June 2019 approach Table 3 on 5 corrective action plans were issued. pg 154 GRI 301: MATERIALS 103 - 2: The management Management Table 5 on approach and its components approach table pg 156 GRI 103: 103 - 1: Explanation of the Our journey, 64-71 Management material topic and its boundary Our suppliers 72-75 409 - 1: Operations and suppliers considered Our suppliers 72-75 Forced labour is still common in the international approach Table 3 on to have significant risk for incidents of apparel and footwear industry. Migrant workers pg 154 forced or compulsory labour are especially vulnerable to forced labour. Vietnam is high risk for forced labour and this is where our 103 - 2: The management Management Table 5 on 3 factories are. Our suppliers have labour unions, approach and its components approach table pg 156 therefore forced labour is highly uncommon. No indicator We do not collect recycled materials as a Oboz created and implemented a mandatory percentage according to topic indicator child labour and forced labour policy company requirements. wide. GRI 303: WATER GRI 412: HUMAN RIGHTS ASSESSMENT GRI 103: 103 - 1: Explanation of the Our journey, 64-71 GRI 103: 103 - 1: Explanation of the Our journey, 64-71 Management material topic and its boundary Our suppliers 72-75 Management material topic and its boundary Our suppliers 72-75 approach Table 3 on approach Table 3 on pg 154 pg 154 103 - 2: The management Management Table 5 on 103 - 2: The management Management Table 5 on approach and its components approach table pg 156 approach and its components approach table pg 156 GRI 303 - 1: Water withdrawal by source Our products 76-79 412 - 1: Operations that have been subject Our suppliers Suppliers to human rights reviews or impact 72-75 assessments
412 - 2: Employee training on human rights Our suppliers 72-75 100% of head office staff were trained, which policies or procedures equated to 76 hours. 152 APPENDICES 153
TABLE 2: GRI TOPICS (CONTINUED):
TOPIC REFERENCE PAGE # NOTES TOPIC REFERENCE PAGE # NOTES
GRI 416: CUSTOMER HEALTH AND SAFETY GRI 401 - 1: New employee hires and employee Table 8 on turnover pg 158 GRI 103: 103 - 1: Explanation of the Our journey, 64-71 Management material topic and its boundary Our suppliers 72-75 GRI 401 - 3: Parental leave Table 9 on approach Table 3 on pg 158 pg 154 GRI 403: OCCUPATIONAL HEALTH AND SAFETY 103 - 2: The management Management Table 5 on approach and its components approach table pg 156 GRI 103: 103 - 1: Explanation of the Our journey, 64-71 Management material topic and its boundary Our suppliers 90-93 GRI 416 - 2: Incidents of non-compliance 79 We have not identified any non-compliance with approach Table 11 concerning the health and safety regulations and/or voluntary codes. on pg 150 impacts of products and services 103 - 2: The management Management Table 5 on GRI 418: CUSTOMER PRIVACY approach and its components approach table pg 156
GRI 103: 103 - 1: Explanation of the Our journey, 64-71 GRI 403 - 1: Occupational health and safety Table 12 Management material topic and its boundary Our suppliers 72-75 management system on pg 159 approach Table 3 on pg 154 GRI 403 - 4: Worker representation in formal joint Table 6 on management-worker health and pg 157 103 - 2: The management Management Table 5 on safety committees approach and its components approach table pg 156 GRI 403 - 9: Work-related injuries 90-93 GRI 418 - 1: Substantiated complaints concerning — This year there was no substantiated complaints Table 13 breaches of customer privacy and in regards to breaches of customer privacy and on pg 160 losses of customer data losses of customer data. GRI 403 - 10: Work-related ill health 90-93 GRI 305: EMISSIONS Table 12 on pg 159 GRI 103: 103 - 1: Explanation of the Our journey, 64-71 Management material topic and its boundary Our suppliers 80-83 GRI 404: TRAINING AND EDUCATION approach Table 3 on pg 154 GRI 103: 103 - 1: Explanation of the Our journey, 64-71 Management material topic and its boundary Our suppliers 90-93 103 - 2: The management Management Table 5 on approach approach and its components approach table pg 156 103 - 2: The management Management Table 5 on approach and its components approach table pg 156 GRI 305 - 2: Energy indirect (Scope 2) GHG Our footprint 80-83 Our emission figures are derived from Scope 2 emissions purchased electricity usage from our support GRI 404 - 2: Programmes for upgrading employee 90-93 office. skills and transition assistance programmes GRI 305 - 3: Other indirect (Scope 3) GHG — We do not measure our Scope 3 emissions. emissions GRI 404 - 3: Percentage of employees receiving 90-93 This year, there were no end-of-year reviews regular performance and career undertaken due to Covid-19 impacts on the GRI 305 - 4: GHG emissions intensity — We do not measure our emissions on an intensity development reviews business. All staff had prepared a development basis. plan for the year.
GRI 306: WASTE GRI 405: DIVERSITY AND EQUAL OPPORTUNITY
GRI 103: 103 - 1: Explanation of the Our journey, 64-71 GRI 103: 103 - 1: Explanation of the Our journey, 64-71 Management material topic and its boundary Our suppliers 80-83 Management material topic and its boundary Our suppliers 90-93 Approach Table 3 on approach Table 3 on pg 154 pg 154
103 - 2: The management Management Table 5 on 103 - 2: The management Management Table 5 on approach and its components approach table pg 156 approach and its components approach table pg 156
GRI 306 - 2: Waste by type and disposal method — We do not currently measure our waste footprint. GRI 405 - 1: Diversity of governance bodies and 90-93 employees Tables 15 GRI 401: EMPLOYMENT on pg 161 and Table GRI 103: 103 - 1: Explanation of the Our journey, 64-71 16 on pg Management material topic and its boundary Our suppliers 90-93 145 approach Table 3 on pg 154
103 - 2: The management Management Table 5 on approach and its components approach table pg 156 154 APPENDICES 155
TABLE 3: OUR IMPACTS: WHERE DO THEY OCCUR? TABLE 4: OUR STAKEHOLDERS
MATERIAL TOPIC WHO IT APPLIES TO WHERE IT APPLIES LIMITATIONS STAKEHOLDER GROUP ENGAGEMENT MECHANISM FREQUENCY OF KEY ISSUES RAISED IN ORDER OF PRIORITY AND BOUNDARIES ENGAGEMENT
OUR SUPPLIERS Customers — Social media Ongoing — Animal welfare — Customer insights — Waste management Freedom of association and Oboz factories Our supply chain — — Our website — Community investment collective bargaining — Via our customer services team opportunities and sponsorship — Human rights in our supply chain Child labour Oboz factories Our supply chain — — Retailer insights — Product care and repair Forced or compulsory labour Oboz factories Our supply chain — Staff — Performance mechanisms Ongoing — Health and safety Supplier social assessments Oboz factories Our supply chain Not tracking. — Questionnaire and surveys — Diversity and inclusion — Weekly company meetings — Training OUR PRODUCTS — Other engagement committees — Sustainability leadership
Materials Suppliers, Oboz Our operations Not tracking. Suppliers — Meetings Ongoing — Fair and open procurement — Site visits practices Products and services Oboz, consumers Our operations Not tracking. — Fair working conditions — Environmental impacts Customer health and safety Oboz, consumers Our operations Not tracking. — Product quality and safety Product labelling Oboz, consumers Our operations — Factories — Meetings Ongoing — Fair working conditions Water Suppliers, Oboz Our operations Not tracking. — Site visits — Audits Marketing Oboz, consumers Our operations — Local communities — In our stores and offices Ongoing — Our impact on communities Customer privacy Oboz, consumers Our operations — — Community events — Social investment and — Social media sponsorship OUR FOOTPRINT — Website — Commitment to sustainability and climate Economic performance Oboz, investors Our operations Not tracking. Government — Meetings Quarterly and as required — Economic performance Energy Oboz Our operations and stores Not tracking. and regulators — Reports — Environmental impacts Emissions Oboz Our operations and stores Not tracking. — Site visits — Community impacts
Waste Oboz, customers Our operations and stores Not tracking. Shareholders — Our annual reports Quarterly and as required — Economic performance — Annual general meeting — All sustainability material issues Transport Oboz, supply chain Our operations We are currently tracking our — ASX and NZX announcements team travel and our shipments — Website from our factories. — Investor roadshows, briefing forums OUR TEAM
Industry associations — Meetings Annually — Environmental impacts Employment Oboz Our operations — — Reports — Community impacts Occupational health and safety Oboz Our operations — — Workshops — Human rights in our supply chain
Training Oboz Our operations — Investment community — ASX announcements Quarterly and as required — ESG performance — Website Diversity and equal opportunity Oboz Our operations — — Investor briefings and forums
Civil society — Social media Ongoing — Human rights in our supply chain and community — Requests for information — Environmental impacts organisations — Fair working conditions — Product materials stewardship — Supplier management 156 APPENDICES 157
TABLE 5: MANAGEMENT APPROACH TABLE 6: EMPLOYMENT
TOPIC POLICIES AND ACTIVITIES EVALUATION ACCOUNTABLE BENEFITS THAT ARE STANDARD FOR FULL-TIME EMPLOYEES OF THE ORGANISATION BUT ARE NOT PROVIDED TO TEMPORARY OR MANAGEMENT DEPARTMENT PART-TIME EMPLOYEES
Workers' rights: Supplier code of conduct We are members of the We assess our program Operations and Life insurance freedom of association Fair Labour Association against the ten FLA Product and collective as part of Kathmandu. principles to ensure Heath-care Yes bargaining, child Their ten principles guide our programme is labour, forced or our Corporate Social comprehensive for Disability and invalidity compulsory labour, Responsibility team's accreditation. We recently human rights strategy working towards evolved our CSR strategy Parental leave Yes assessment, supplier accreditation. The ten based on the evaluation social assessment principles and strategy process. Retirement provision corroborates GRI's workers' rights indicators, which we respond to. Stock ownership Yes
Materials, water Azo Dyes Policy, Down Our materials priority We participate in the Product Others Feather Policy, Leather list guides our materials Textile Exchange report Policy, Uzbek Cotton Policy, sustainability strategy. rankings. We use the Higg Nano-Silver Technology Index as a key driver for Statement of Intent, better materials. Perflourinated Chemicals TABLE 7: INFORMATION ON EMPLOYEES AND OTHER WORKERS Statement of Intent, Sheep Mulesing Statement of TOTAL Intent, Man-Made Cellulosics Policy, Restricted Substances BY EMPLOYMENT TYPE List. Full-time employees 27 Customer health We research and complete Our quality department We review our research Quality and safety all compliance requirements reviews products before and completion processes Part-time employees 0 before entering new entering the market. Market to achieve continuous products into the market. compliance research. improvement. Casual 0 Customer privacy We are building a policy Our relevant customer Reviews are completed on Customer and process to protect the services team are briefed any incidents to achieve Services Total employees 27 privacy of online account on the details of the policy continuous improvement. customers. to ensure no breaches are BY CONTRACT TYPE made. Communication is highly prioritised with the Permanent 27 customer following any incidents. Fixed-term Full-time 0
Team development: As part of our People Plan We engage with all key We conduct interviews and Leadership Team Fixed-term Part-time 0 new employee strategy, we integrate these stakeholders internally and surveys as a way to inform hires and turnover, material topics as part of externally in managing our our strategy approach. Casual 0 benefits for full-time our continuous improvement strategy. employees, parental management approach. Total workforce 27 leave, occupational health and safety, BY GENDER training and education, diversity, equal opportunity Male 16
Female 11
BY AGE GROUP
<30 6
30–50 17
50+ 4
BY CATEGORY
Executive 1
Senior management 7
Management 5
Non-management 14 158 APPENDICES 159
TABLE 8: HIRING AND TURNOVER TABLE 10: COLLECTIVE BARGAINING AGREEMENTS
NEW HIRES TURNOVER COLLECTIVE BARGAINING AGREEMENTS
Permanent Total 7 Permanent Total 4 Percentage of total employees covered by collective bargaining agreements 0
Indefinite Total 7 Indefinite Total 4
BY GENDER BY GENDER TABLE 11: OCCUPATIONAL HEALTH AND SAFETY Permanent Male 2 Permanent Male 3
Permanent Female 5 Permanent Female 1 OCCUPATIONAL HEALTH AND SAFETY MANAGEMENT SYSTEM
Indefinite Male 2 Indefinite Male 3 A statement of whether an occupational health and safety Health and safety management system has been implemented management system has been implemented, including because of legal requirements: Indefinite Female 5 Indefinite Female 1 whether: • Occupational Safety and Health Act (United States)
BY AGE GROUP BY AGE GROUP i. the system has been implemented because of legal requirements and, if so, a list of the requirements Permanent <30 2 Permanent <30 0 ii. the system has been implemented based on recognised risk management and/or management system standards/ Permanent 30–50 5 Permanent 30–50 3 guidelines and, if so, a list of the standards/guidelines
Permanent 50+ 0 Permanent 50+ 1
A description of the scope of workers, activities and workplaces Scope of workers - support offices, distribution centres, stores, Indefinite <30 2 Indefinite <30 0 covered by the occupational health and safety management casual, part-time, full-time, fixed-term. system and an explanation of whether and, if so, why any Indefinite 30–50 5 Indefinite 30–50 3 workers, activities or workplaces are not covered Activities include administration, logistics, customer service, sales, stock management, manual handling, staff Indefinite 50+ 0 Indefinite 50+ 1 management, product management.
TABLE 9: PARENTAL LEAVE TABLE 12: WORK-RELATED ILL HEALTH
MALE FEMALE ALL EMPLOYEES 1 Report the number of employees by gender who were entitled to parental leave. 0 11 Number of fatalities as a result of work-related ill health 0 2 Report the number of employees by gender who took parental leave. 0 0 Number of cases of recordable work-related ill health 0 3 Report the number of employees who returned to work after parental leave 0 0 ended, by gender. Main types of work-related ill health N/A
4 Report the number of employees who returned to work after parental leave 0 0 ALL WORKERS WHO ARE NOT EMPLOYEES BUT WHOSE WORK AND/OR WORKPLACE IS ended who were still employed 12 months after their return to work, by gender. CONTROLLED BY THE ORGANISATION
5 Report the return to work rate of employees who returned to work after leave N/A N/A Number of fatalities as a result of work-related ill health 0 ended, by gender. Number of cases of recordable work-related ill health 0 6 Report the retention rate of employees who returned to work after leave ended, N/A N/A by gender. Main types of work-related ill health N/A
WORK-RELATED HAZARDS THAT POSE A RISK OF HIGH-CONSEQUENCE INJURY
How these hazards have been determined Near-miss and incident reporting, risk assessments
Which of these hazards have caused or contributed to cases of ill health during the N/A reporting period
Actions taken or under way to eliminate these hazards and minimize risks using the N/A hierarchy of controls 160 APPENDICES 161
TABLE 12: WORK-RELATED ILL HEALTH (CONTINUED) TABLE 14: DIVERSITY
GENDER DIVERSITY AGE DIVERSITY WHETHER AND, IF SO, WHY ANY WORKERS HAVE BEEN EXCLUDED FROM THIS DISCLOSURE, INCLUDING THE TYPES OF WORKER EXCLUDED MALE FEMALE <30 30–50 50+
Workers that have been excluded from the disclosure 0 EXECUTIVE EXECUTIVE
ANY CONTEXTUAL INFORMATION NECESSARY TO UNDERSTAND HOW THE DATA HAS BEEN 2019 1 2019 1 COMPILED, SUCH AS ANY STANDARDS, METHODOLOGIES AND ASSUMPTIONS USED
2020 1 2020 1
SENIOR MANAGEMENT SENIOR MANAGEMENT TABLE 13: WORK-RELATED INJURIES 2019 6 2019 4 2
ALL EMPLOYEES 2020 7 2020 1 4 2
Number of fatalities as a result of work-related injury 0 MANAGEMENT MANAGEMENT Number of high consequence work related injuries (excluding fatalities) 0 2019 3 2 2019 3 2 Number and rate of recordable work-related injuries 0 2020 2 3 2020 3 2 Main types of work-related injury N/A
FOR ALL WORKERS WHO ARE NOT EMPLOYEES BUT WHOSE WORK AND/OR WORKPLACE IS CONTROLLED BY THE ORGANISATION: NON-MANAGEMENT NON-MANAGEMENT Number and rate of fatalities as a result of work-related injury 0 2019 9 4 2019 3 9 1 Number and rate of high-consequence work-related injuries (excluding fatalities) 0 2020 7 7 2020 5 9 Number and rate of recordable work-related injuries 0
Main types of work-related injury N/A
Number of hours worked Unable to calculate hours for contractors
THE WORK-RELATED HAZARDS THAT POSE A RISK OF HIGH-CONSEQUENCE INJURY, INCLUDING
How these hazards have been determined Near-miss incidents
Which hazards have caused or contributed to cases of injury during the N/A reporting period
Actions taken or under way to eliminate these hazards and minimise risks using the hierarchy N/A of controls
ACTIONS TAKEN OR UNDERWAY TO ELIMINATE THESE HAZARDS AND MINIMISE RISKS USING THE HIERARCHY OF CONTROLS.
Whether the rates have been calculated based on 200,000 or 1,000,000 hours worked N/A - no rates calculated
Whether and, if so, why any workers have been excluded from this disclosure, including the N/A types of worker excluded
Any contextual information necessary to understand how the data has been compiled, such N/A as any standards, methodologies and assumptions used 162 APPENDICES 163 164 APPENDICES 165
TABLE 1: GRI GENERAL STANDARD DISCLOSURES
IND. DESCRIPTION REFERENCE PAGE # NOTES IND. DESCRIPTION REFERENCE PAGE # NOTES
ORGANISATIONAL PROFILE STAKEHOLDER ENGAGEMENT
102 - 1 Name of the organisation Cover page 1 Rip Curl Group Pty Ltd. For all Kathmandu 102 - 40 List of stakeholder groups Our journey, 96-101 — Holdings subsidiaries see page 63 of the 2020 Our stakeholders table Table 4 on Annual Report. pg 171
102 - 2 Activities, brands, products Introduction — Rip Curl is a surfwear brand. We sell our 102 - 41 Collective bargaining This appendix Table 9 on — and services branded gear through our online, retail and agreements pg 175 wholesale network globally. 102 - 42 Identifying and selecting Our journey, —— 102 - 3 Location of headquarters Our world 100-101 101 Surfcoast Highway, Torquay VIC 3228. stakeholders Our stakeholders table
102 - 4 Location of operations Our world 100-101 — 102 - 43 Approach to stakeholder Our journey, 96-101 — engagement Our stakeholders table Tables 4 & 102 - 5 Ownership and legal form This appendix This Rip Curl is a publicly listed company. For more 5 on pages appendix information see from page 78 in our Annual 171-172 Report 2020. 102 - 44 Key topics and concerns Our journey, 96-101 — 102 - 6 Markets served Our world, this appendix 100-101 Rip Curl sells product globally through online, raised Our stakeholders table Tables 4 & wholesale and our own retail store networks. 5 on pages 171-172 102 - 7 Scale of the organisation Our world, Our crew. 100-101 For full financial disclosures please see from Annual Report 2020 page 23 in our Annual Report 2020. REPORTING PRACTICE
102 - 8 Information on employees Our crew, This appendix 122-127 — 102 - 45 Entities included in the Annual Report 2020 — Rip Curl Group Pty Ltd. For all Kathmandu and other workers Table 7 on consolidated financial Holdings subsidiaries see page 63 of the 2020 pg 174 statements Annual Report.
102 - 9 Supply chain Our world, Our suppliers, 96-101 — 102 - 46 Defining content and topic Our journey, 96-101 — Our products 102-105 boundaries Our stakeholders table, Tables 4 & 106-109 Our impacts 5 on pages 171-172 102 - 10 Significant changes to the Our world, Our suppliers, 96-101 — organisation and its supply Our products 102-105 102 - 47 List of material topics Our journey, 96-101 — chain 106-109 Our stakeholders table, Tables 4 & Our Impacts 5 on pages 102 - 11 Precautionary principle Our suppliers, Customer 102-105 We use a precautionary approach across each 171-172 approach health and safety, 106-109 department of the business to ensure we do not Our footprint harm the environment or people. 102 - 48 Restatements of information This appendix — No restatement this year.
102 - 12 External initiatives Our journey 105 We are reaching out to organisations that can 102 - 49 Changes in reporting This appendix — This is our first year using the GRI standards support us on our sustainability journey. reporting framework.
102 - 13 Membership of associations Our journey, 105 We are looking into organisations to collaborate 102 - 50 Reporting period This appendix — 1 August 2019 to 31 July 2020. Our suppliers, with on our sustainability journey. Our products, 102 - 51 Date of most recent report This appendix — Kathmandu Holdings Sustainability Report 2020 Our footprint, (01/08/2019 — 31/07/2020). Our community, Our crew 102 - 52 Reporting cycle This appendix — Annual (01/08/2019 — 31/07/2020).
STRATEGY 102 - 53 Contact point for questions This appendix — Lucy Nakaroti: [email protected] regarding the report 102 - 14 Statements from senior Chairman and CEO 98 — decision-maker report 102 - 54 Claims of reporting in Back cover — This report has been prepared in accordance accordance with the GRI with the GRI Standards Core option. ETHICS AND INTEGRITY standards
102 - 16 Values, principles, standards, Our crew 99 See our Code of Conduct. 102 - 55 GRI content index This appendix — — and norms of behaviour 102 - 56 External assurance This appendix — Rip Curl is in the process of adopting GOVERNANCE certifications, partnerships and programmes that verify our various sustainability initiatives. 102 - 18 Governance and structure Annual Report 2020 Annual The Board guides the overall governance of our Report organisation. Please see from page 78 of our 2020 Annual Report 2020 for more information on our governance structure. 166 APPENDICES 167
TABLE 2: GRI TOPICS
TOPIC REFERENCE PAGE # NOTES TOPIC REFERENCE PAGE # NOTES
GRI 407: FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING 412 - 2: Employee training on human rights Our suppliers 102-105 policies or procedures GRI 103: 103 - 1: Explanation of the Our journey, 100-101 Management material topic and its boundary Our suppliers 102-105 412 - 3: Significant investment agreements and Our suppliers 102-105 approach Table 4 on contracts that include human rights pg 171 clauses or that underwent human rights screening 103 - 2: The management Management Table 5 on approach and its components approach table pg 172 GRI 412: SUPPLIER SOCIAL ASSESSMENT
407 - 1: Operations and suppliers in which Our suppliers 102-105 Workers' rights to freedom of association and GRI 103: 103 - 1: Explanation of the Our journey, 100-101 workers' rights to exercise freedom of collective bargaining are at significant risk, with Management material topic and its boundary Our suppliers 102-105 association or collective bargaining may 72% of our suppliers based in China. Through approach Table 4 on be violated or at significant risk government restrictions, independent unions pg 171 have no real power to help the workers to improve their wages or working conditions and collective 103 - 2: The management Management Table 5 on bargaining is limited. approach and its components approach table pg 172 We are investing in a new CSR programme to help us to evaluate and analyse the risks within 414 - 1: New suppliers that were screened using Our suppliers 96-101 100% our supply chain provides supplier training and social criteria 102-105 education, introducing a grievance mechanism for workers updating our code of conduct and creating 414 - 2: Negative social impacts in the supply Our suppliers 102-105 13 audits were conducted last year. 10% of our a terms of trade document. chain and actions taken suppliers were identified as having significant actual and potential negative social impacts. Of GRI 408: CHILD LABOUR this, 8% had improvements agreed upon as a result of assessment. In the supply chain, 5% had GRI 103: 103 - 1: Explanation of the Our journey, 100-101 significant actual and potential negative impacts Management material topic and its boundary Our suppliers 102-105 identified. Five suppliers were exited as a result approach Table 4 on of assessment as part of a company strategy of pg 171 moving to a consolidated supplier base for all of our regions. 103 - 2: The management Management Table 5 on approach and its components approach table pg 172 GRI 301: MATERIALS
408 - 1: Operations and suppliers at significant Our suppliers 102-105 Unfortunately, in the apparel industry, child GRI 103: 103 - 1: Explanation of the Our journey, 100-101 risk for incidents of child labour. labour can be located in all tiers, more so in Tier 2 Management material topic and its boundary Our suppliers 102-105 and Tier 3. We have created a child labour policy approach Table 4 on and updated our code of conduct. pg 171
GRI 409: FORCED OR COMPULSORY LABOUR 103 - 2: The management Management 100-101 approach and its components approach table 102-105 GRI 103: 103 - 1: Explanation of the Our journey, 100-101 Table 5 on Management material topic and its boundary Our suppliers 102-105 pg 172 approach Table 4 on pg 171 GRI 303: WATER
103 - 2: The management Management Table 5 on GRI 103: 103 - 1: Explanation of the Our journey, 100-101 approach and its components approach table pg 172 Management material topic and its boundary Our suppliers 106-109 approach Table 4 on 409 - 1: Operations and suppliers considered Our suppliers 102-105 Forced labour is commonplace throughout the pg 171 to have significant risk for incidents of apparel industry, with migrant workers being at forced or compulsory labour. particular risk. By updating our code of conduct 103 - 2: The management Management Table 5 on and through our new CSR partnership, we are approach and its components approach table pg 172 looking at creating a programme to evaluate the risks within our supply chain to be able to GRI 416: CUSTOMER HEALTH AND SAFETY provide supplier training and education as well as introducing a grievance mechanism for workers. GRI 103: 103 - 1: Explanation of the Our journey, 101-101 Management material topic and its boundary Our suppliers 106-109 GRI 412: HUMAN RIGHTS ASSESSMENT approach Table 5 on pg 172 GRI 103: 103 - 1: Explanation of the Our journey, 100-101 Management material topic and its boundary Our suppliers 102-105 103 - 2: The management Management Table 5 on Approach Table 4 on approach and its components approach table pg 172 pg 171 GRI 416 - 2: Incidents of non-compliance — We have not identified any non-compliance with 103 - 2: The management Management Table 5 on concerning the health and safety regulations and/or voluntary codes. approach and its components approach table pg 172 impacts of products and services
412 - 1: Operations that have been subject Our suppliers 102-105 to human rights reviews or impact assessments 168 APPENDICES 169
TABLE 2: GRI TOPICS (CONTINUED):
TOPIC REFERENCE PAGE # NOTES TOPIC REFERENCE PAGE # NOTES
GRI 418: CUSTOMER PRIVACY GRI 403: OCCUPATIONAL HEALTH AND SAFETY
GRI 103: 103 - 1: Explanation of the Our journey, 100-101 GRI 103: 103 - 1: Explanation of the Our journey, Table 10 Management material topic and its boundary Our products 106-109 Management material topic and its boundary Our crew on pg 175 approach Table 4 on approach pg 171 103 - 2: The management Management Table 5 on approach and its components approach table pg 172 103 - 2: The management Management Table 5 on approach and its components approach table pg 172 GRI 403 - 1: Occupational health and safety Table 11 on management system pg 176 GRI 418 - 1: Substantiated complaints concerning — We have not identified any substantiated breaches of customer privacy and complaints concerning breaches of customer GRI 403 - 4: Workers representation in formal Table 5 on Safety and worker health is of great importance losses of customer data privacy and losses of customer data. joint management-worker health pg 172 and training/information is provided through and safety committees email, documents in-store and on the Myagi GRI 305: EMISSIONS learning platform. Incidents and risks are managed through the GRI 103: 103 - 1: Explanation of the Our journey, 100-101 Operations & HR Teams and are monitored Management material topic and its boundary Our footprint 110-115 through excel/word documents and other approach Table 4 on documents. These are stored in a secure location pg 171 for reference.
103 - 2: The management Management Table 5 on GRI 403 - 9: Work-related injuries 122-127 approach and its components approach table pg 172 Table 12 on pg 177 GRI 305 - 2: Energy indirect (Scope 2) GHG — We do not currently measure or record emissions. emissions GRI 403 - 10: Work-related ill health 122-127 Table 11 on GRI 305 - 3: Other indirect (Scope 3) GHG — We do not currently measure or record emissions. pg 176 emissions GRI 404: TRAINING AND EDUCATION GRI 305 - 4: GHG emissions intensity — We do not currently measure or record emissions. GRI 103: 103 - 1: Explanation of the Our journey, 100-101 GRI 306: WASTE Management material topic and its boundary Our crew 122-127 approach Table 4 on GRI 103: 103 - 1: Explanation of the Our journey, 100-101 pg 171 Management material topic and its boundary Our footprint 110-115 approach Table 4 on 103 - 2: The management Management Table 5 on pg 171 approach and its components approach table pg 172
103 - 2: The management Management Table 5 on GRI 404 - 2: Programmes for upgrading employee 122-127 approach and its components approach table pg 172 skills and transition assistance Table 5 on programmes pg 172 GRI 306 - 2: Waste by type and disposal method — We do not currently measure or record waste. GRI 404 - 3: Percentage of employees receiving 122-127 GRI 401: EMPLOYMENT regular performance and career Table 5 on development reviews pg 172 GRI 103: 103 - 1: Explanation of the Our journey, 100-101 Management material topic and its boundary Our crews 122-127 GRI 405: DIVERSITY AND EQUAL OPPORTUNITY approach Table 4 on pg 171 GRI 103: 103 - 1: Explanation of the Our journey, 100-101 Management material topic and its boundary Our crew 122-127 103 - 2: The management Management Table 5 on approach Table 4 on approach and its components approach table pg 172 pg 171
GRI 401 - 1: New employee hires and employee 122-127 103 - 2: The management Management Table 5 on turnover Table 7 on approach and its components approach table pg 172 pg 174 GRI 405 - 1: Diversity of governance bodies and 122-127 GRI 401 - 2: Benefits provided to full-time — employees Tables 15 employees that are not provided to on pg 178 temporary or part-time employees. and Table 16 on pg GRI 401 - 3: Parental leave 122-127 145 Table 8 on pg 175 170 APPENDICES 171
TABLE 3: OUR STAKEHOLDERS TABLE 4: OUR IMPACTS: WHERE DO THEY OCCUR?
STAKEHOLDER GROUP ENGAGEMENT MECHANISM FREQUENCY OF KEY ISSUES RAISED MATERIAL TOPIC WHO IT APPLIES TO WHERE IT APPLIES LIMITATIONS ENGAGEMENT IN ORDER OF PRIORITY AND BOUNDARIES
Customers — Social media Ongoing — Waste management and OUR SUPPLIERS — In our stores environment maintenance Freedom of association and Rip Curl factories and suppliers Our supply chain — — Our website — Product warranty collective bargaining — Events — Plastic packaging — Wetsuit programme, battery — Customer services Child labour Rip Curl factories and suppliers Our supply chain — recycling — Service centre Forced or compulsory labour Rip Curl factories and suppliers Our supply chain — Staff — Team Myagi software Ongoing — Health and safety, waste — Sustainability Working Group management, supply chain, Supplier social assessments Rip Curl factories and suppliers Our supply chain — emissions management, training — Company updates and sustainability projects OUR PRODUCTS
Suppliers — Meetings Ongoing — Product quality and safety Materials Rip Curl factories and suppliers Our operations Our overall sustainable — Site visits — Fair working conditions materials percentage use — Fair and open procurement against conventional materials practices is too complex to calculate to meet topic requirements. — Environmental impacts Products and services Rip Curl, consumers Our operations — Factories — Meetings Ongoing — Fair working conditions — Site visits Customer health and safety Rip Curl, consumers Our operations — — Audits Product labelling Rip Curl, consumers Our operations — Local communities — Planet Day Ongoing — Ensuring long-term survival of — Grom Search events plant species indigenous to the Water Rip Curl factories and suppliers Our operations — region — Social media — Beach cleanliness, waste Marketing Rip Curl, consumers Our operations — — Website reduction Environment Rip Curl staff, consumers Our operations Government — Meetings Quarterly and as required — Economic performance and regulators — Reports — Environmental impacts Customer privacy Rip Curl, consumers Our operations — — Site visits — Community impacts OUR FOOTPRINT Shareholders — Our annual reports Quarterly and as required — Economic performance Economic performance Rip Curl key stakeholders Our operations — — Annual general meeting — All sustainability material issues
— ASX and NZX announcements Energy Rip Curl factories, suppliers, Our operations and stores We don’t currently report on — Website office, warehouse and stores energy use. — Investor roadshows, briefing forums Emissions Rip Curl factories, suppliers, Our operations and stores We don’t currently report on office, warehouse and stores emissions. Industry associations — Meetings (quarterly) Annually — Environmental impacts, supply — Reports chain, human rights, waste, Waste Rip Curl factories, suppliers, Our operations and stores We don’t currently report on audits office, warehouse and stores waste . — Workshops — Community impacts Transport Rip Curl supply chain, Our operations We don’t currently report on Investment community — ASX announcements Quarterly and as required — ESG performance warehouses, stores emissions through transport. — Website OUR TEAM — Investor briefings and forums Employment Rip Curl Our operations — Civil society — Social media Ongoing — Human rights in our supply chain and community — Requests for information — Environmental impacts Occupational health and safety Rip Curl Our operations — organisations — Fair working conditions — Product materials stewardship Training Rip Curl Our operations — — Supplier management Diversity and equal opportunity Rip Curl Our operations —
Compliance Rip Curl Our operations — 172 APPENDICES 173
TABLE 5: MANAGEMENT APPROACH TABLE 6: INFORMATION ON EMPLOYEES AND OTHER WORKERS
TOPIC POLICIES AND ACTIVITIES EVALUATION ACCOUNTABLE AUS NZ EUROPE BRAZIL JAPAN INDONESIA THAILAND CANADA USA TOTAL MANAGEMENT DEPARTMENT BY EMPLOYMENT TYPE Workers' rights: https://www.ripcurl. Through our code of conduct We have merged our CSR freedom of association com.au/company/social- and auditing. supply chain management Full-time 371 6 169 73 17 80 500 4 135 1,355 and collective compliance.html programme with our employees bargaining, child parent company under the labour, forced or service provider ELEVATE Part-time 59 10 25 0 0 17 0 6 177 294 compulsory labour, - following the same CSR employees human rights approach. assessment, supplier social assessment Casual 1,066 0 82 25 3 0 0 0 17 1,193
Materials, water Point fabric inspections, Our policies and Through reporting and Product performance standards, management help guide assessment. Total employees 1,496 16 276 98 20 97 500 10 329 2,842 quality inspections, apparel and ensure our sustainability safety, supplier garment strategy. wash test procedure. BY CONTRACT TYPE
Customer health We research and complete Our quality department We review our research Sourcing/ Permanent 426 16 194 73 17 80 500 10 312 1,628 and safety all compliance requirements reviews products before and completion processes Development before entering new entering the market. Market to achieve continuous Team, Fixed-term products into the market compliance research. improvement. Compliance 2 0 0 0 0 17 0 0 0 19 Team full-time
Fixed-term Customer privacy We have a stringent policy Our relevant customer Reviews are completed on Customer 2 0 0 0 0 0 0 0 0 2 and process to protect the services team are briefed any incidents to achieve Services part-time privacy of our customers. on the details of the policy continuous improvement. to ensure no breaches are Casual 1,066 0 82 25 3 0 0 0 17 1,193 made. Communication is highly prioritised with the customer following any incidents. Total workforce 1,496 16 276 98 20 97 500 10 329 2,842
Waste We have begun the journey We will engage with all key We are yet to audit our Finance, Retail BY GENDER to track our waste. stakeholders to come up waste streams. Operations with a solution to manage and track our waste. Male 517 6 130 53 12 51 87 5 162 1,023
Carbon emissions We have begun the journey Engaging to measure Scope We currently do not report Finance, Retail to track our emissions. 1 and Scope 2. on our carbon emissions. Operations Female 979 10 146 45 8 46 413 5 167 1,819
Team development: Rip Curl has global and The global HR team We collaborate and gather Human BY AGE GROUP new employee local people strategies that works closely with feedback whilst developing Resources hires and turnover, are focused on enhancing internal stakeholders and and implementing benefits for full-time the support we provide to management in order to strategies from all relevant <30 1,119 12 96 42 3 29 128 7 243 1,679 employees, parental our crew. Our People Plan execute strategy in a way stakeholders. leave, occupational encompasses ongoing that compliments other health and safety, reviews of these functional strategies and activities 30–50 321 4 137 54 15 64 335 3 69 1,002 training and areas so that our crew are occurring in the business, education, diversity, best placed to deliver on Collaboration is the key equal opportunity organisational and individual to ensuring our People 50+ 56 0 43 2 2 4 37 0 17 161 goals. Plan aligns to the overall organisational strategy. BY CATEGORY
Executive 8 0 1 0 0 0 0 0 1 10
Senior 10 0 14 5 0 5 5 3 9 51 management
Management 10 0 11 3 3 14 10 0 7 58
Non 1,468 16 250 90 17 78 485 7 312 2,723 management 174 APPENDICES 175
TABLE 7: HIRING AND TURNOVER TABLE 8: PARENTAL LEAVE
AUS NZ EUROPE BRAZIL JAPAN INDONESIA THAILAND CANADA USA TOTAL MALE FEMALE
NEW HIRES 1 Report the number of employees by gender who were entitled to parental leave. 734 1,454
Permanent Total 78 3 9 23 2 13 184 9 251 572 2 Report the number of employees by gender who took parental leave. 6 38
Indefinite Total 851 0 75 0 1 0 0 4 22 954 3 Report the number of employees who returned to work after parental leave 6 24 ended, by gender. BY GENDER 4 Report the number of employees who returned to work after parental leave 6 11 Permanent Male 26 1 3 10 2 5 25 3 128 203 ended who were still employed 12 months after their return to work, by gender.
Permanent Female 52 2 6 13 0 8 159 6 123 369 5 Report the return to work rate of employees who returned to work after leave 100% 63% ended, by gender. Indefinite Male 301 0 24 0 0 0 0 3 12 340 6 Report the retention rate of employees who returned to work after leave ended, 100% 98% Indefinite Female 550 0 51 0 1 0 0 1 10 614 by gender. BY AGE GROUP
Permanent <30 50 3 5 11 0 10 102 12 257 450
Permanent 30–50 23 0 4 12 1 3 82 0 9 135
Permanent 50+ 5 0 0 0 1 0 0 0 4 10 TABLE 9: COLLECTIVE BARGAINING AGREEMENTS Indefinite <30 780 0 54 0 0 0 0 1 0 835 COLLECTIVE BARGAINING AGREEMENTS Indefinite 30–50 58 0 17 0 1 0 0 0 0 76 Percentage of total employees covered by collective bargaining agreements 0 Indefinite 50+ 13 0 4 0 0 0 0 0 3 20
AUS NZ EUROPE BRAZIL JAPAN INDONESIA THAILAND CANADA USA TOTAL TABLE 10: OCCUPATIONAL HEALTH AND SAFETY TURNOVER OCCUPATIONAL HEALTH AND SAFETY MANAGEMENT SYSTEM Permanent Total 151 6 8 22 4 14 201 9 295 710 A statement of whether an occupational health and safety The company operates in a number of different countries Indefinite Total 714 0 65 0 5 0 0 1 29 814 management system has been implemented, including around the world, and has yet to implement a consistent whether: Occupational Health & Safety Management System across all BY GENDER of its regions. Management systems are however in place to i. the system has been implemented because of legal meet the expected minimum legal standard of each country Permanent Male 59 2 4 13 4 5 26 3 141 257 requirements and, if so, a list of the requirements that we operate within. This includes all of our support offices, warehouses and retail stores. Permanent Female 92 4 4 9 0 9 175 7 154 454 ii. the system has been implemented based on recognised risk management and/or management system standards/ Indefinite Male 273 0 30 0 0 0 0 0 15 318 guidelines and, if so, a list of the standards/guidelines
Indefinite Female 441 0 35 0 5 0 0 0 14 495 A description of the scope of workers, activities and workplaces — BY AGE GROUP covered by the occupational health and safety management system and an explanation of whether and, if so, why any Permanent <30 86 5 1 2 1 10 127 9 263 504 workers, activities or workplaces are not covered
Permanent 30–50 46 1 5 18 1 3 66 0 26 166
Permanent 50+ 19 0 2 2 2 1 8 0 6 40
Indefinite <30 671 0 46 0 2 0 0 1 29 749
Indefinite 30–50 39 0 15 0 3 0 0 0 0 57
Indefinite 50+ 4 0 4 0 0 0 0 0 0 8 176 APPENDICES 177
TABLE 11: WORK-RELATED ILL HEALTH TABLE 12: WORK-RELATED INJURIES
ALL EMPLOYEES ALL EMPLOYEES
Number of fatalities as a result of work-related ill health 0 Number of fatalities as a result of work-related injury 0
Number of high consequence work related injuries (excluding fatalities) 0 Number of cases of recordable work-related injury (excluding 0 fatalities) Main types of work-related ill health — Physical — Ergonomic Number and rate of recordable work-related injuries 4.3 — Psychosocial — Biological Main types of work-related injury — Ergonomic — Physical ALL WORKERS WHO ARE NOT EMPLOYEES BUT WHOSE WORK AND/OR — Biological WORKPLACE IS CONTROLLED BY THE ORGANISATION — Machine
Number of fatalities as a result of work-related ill health 0 ALL WORKERS WHO ARE NOT EMPLOYEES BUT WHOSE WORK AND/OR WORKPLACE IS CONTROLLED BY THE ORGANISATION
Number of cases of recordable work-related ill health 0 Number and rate of fatalities as a result of work-related injury 0
Main types of work-related ill health — Number and rate of high-consequence work-related injuries 0 (excluding fatalities) WORK-RELATED HAZARDS THAT POSE A RISK OF ILL HEALTH Number and rate of recordable work-related injuries 0 How these hazards have been determined — Incident/hazard reports — Workspace inspection checklists Main types of work-related injury - — Employee awareness — OH&S representatives Number of hours worked Unable to calculate hours for contractors — Occupational therapist reports — Safety committee WORK-RELATED HAZARDS THAT POSE A RISK OF HIGH-CONSEQUENCE INJURY
Which of these hazards have caused or contributed to cases of ill health — Manual handling How these hazards have been determined — Incident/hazard reports during the reporting period — Stock level/location — Employee awareness — OH&S representatives and checklist Actions taken or under way to eliminate these hazards and minimise risks Multiple — Occupational therapist visits using the hierarchy of controls — Auditing — Safety committee
Which of these hazards have caused or contributed to cases of 0 injury during the reporting period
Actions taken or underway to eliminate these hazards and — minimize risks using the hierarchy of controls.
ACTIONS TAKEN OR UNDERWAY TO ELIMINATE THESE HAZARDS AND MINIMIZE RISKS USING THE HIERARCHY OF CONTROLS.
Whether the rates have been calculated based on 200,000 or 200,000 1,000,000 hours worked
Whether and, if so, why any workers have been excluded from — this disclosure, including the types of worker excluded.
Any contextual information necessary to understand — how the data have been compiled, such as any standards, methodologies, and assumptions used.
TABLE 13: PERCENTAGE OF TOTAL EMPLOYEES BY EMPLOYEE CATEGORY WHO RECEIVED A REGULAR PERFORMANCE REVIEWS/APPRAISALS
The company policy is that all full time employees have a mid year and full year performance review and we have put in place mechanisms to track the number of reviews formally completed and documented prospectively, and will report on that in future reports. 178 APPENDICES 179
TABLE 14: DIVERSITY
GENDER DIVERSITY
AUS & NZ EUROPE BRAZIL JAPAN INDONESIA THAILAND CANADA USA TOTAL
EXECUTIVE
Male 5 1 0 0 0 0 0 1 7
Female 3 0 0 0 0 0 0 0 3
SENIOR MANAGEMENT
Male 7 11 4 0 1 2 3 7 35
Female 3 3 1 0 4 3 0 2 16
MANAGEMENT
Male 6 10 2 3 8 4 0 4 37
Female 4 1 1 0 6 6 0 3 21
NON-MANAGEMENT
Male 512 108 43 8 40 81 2 150 944
Female 972 142 47 9 38 404 5 162 1,779
AGE DIVERSITY
AUS & NZ EUROPE BRAZIL JAPAN INDONESIA THAILAND CANADA USA TOTAL
EXECUTIVE
<30 0 0 0 0 0 0 0 0 0
30–50 4 1 0 0 0 0 0 1 6
50+ 4 0 0 0 0 0 0 0 4
SENIOR MANAGEMENT
<30 0 0 0 0 0 0 1 0 1
30–50 8 11 5 0 5 5 2 7 43
50+ 2 3 0 0 0 0 0 2 7
MANAGEMENT
<30 0 0 1 0 0 0 0 0 1
30–50 9 8 2 2 13 9 0 5 48
50+ 1 3 0 1 1 1 0 2 9
NON-MANAGEMENT
<30 1,131 96 41 3 29 128 6 243 1,677
30–50 304 117 47 13 46 321 1 56 905
50+ 49 37 2 1 3 36 0 13 141