Pentland Brands Positive Business Report 2019

for people for

planet and our Taking action Taking Positive Business Report 2019 Contents Building a family of brands, Feedback 1.0 Introduction 3 for the world to love, We welcome your feedback on how A view from our CEO and Head of Corporate Responsibility 4 Who we are and how we work 7 generation after generation. we can improve our policies and approach to corporate responsibility. Performance highlights of 2019 11 This is Pentland Brands’ first annual To get in touch, email us at A new direction: what’s ‘positive business’? 12 Positive Business Report, evaluating [email protected] 2.0 Our brands 14 the progress we’ve made during the period January 2019 to December 2019 3.0 Our footprint 32 and our plans for 2020 and beyond. It has been approved by the Pentland Our supply chain 34 Brands Executive Team. Our materials 45 Our workplace 20 Previously, all Pentland Brands’ corporate responsibility activities were 4.0 Our future 64 recorded in the annual Pentland Group Collaborating for better 65 Corporate Responsibility Review. You Charity initiatives 67 can view these reports here. Circularity 76

5.0 What’s next? 78

2 Positive Business Report 2019

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Introduction

3 Introduction A view from our CEO, Andy Long

Looking back at recent times, it’s clear that the role of are made responsibly in a way that supports communities and outside in and we strive to partner with institutions that corporate responsibility has evolved and accelerated. minimises our impact on the environment. This is made even provide us with valuable insight and understanding. Our More than ever, importance is placed on not just more complex by challenges as a result of COVID-19, which charity partners are going from strength to strength and demonstrating value to consumers but also to society. we talk more about on page 6 of this report. we’ve worked together to make great progress in our Doing the right thing has never been more essential. aims of empowering women in our sourcing markets and Our purpose is to make brands matter and we’re using our helping young people increase their physical activity. For Pentland Brands, 2019 marked a step-change in our influence to champion positive business across our brand approach to corporate responsibility. Reflecting a growing portfolio. 2019 was a Rugby World Cup year for Canterbury We recognise that we no longer operate in a business need to factor our social and environmental impact into of New Zealand, which supplied official apparel for the landscape where corporate responsibility is solely all that we do, we introduced our commitment to ‘positive tournament and brought together players and fans alike to overseen by the corporate responsibility team. This year business’ – our strategy to take action for people and our ‘Be Part Of It’. These global events are integral to promoting we’ve focused on building our overarching ambitions to planet. This includes building brands with purpose, creating diversity and inclusion, health and wellbeing and body support people and our planet and have made changes products sustainably, embracing a diverse and inclusive confidence, creating value for consumers in more ways across many departments and disciplines, reflecting workforce, supporting our communities and protecting than products ever would in isolation. our goal to build positive business into the fabric of all the people working within our supply chain. our operations and processes. That’s when we can truly We continue to adapt to support our people to work at their best. move forward with purpose. Our mandate from our shareholders is to ‘do the right thing’. As the sponsor of diversity and inclusion at Pentland Brands, Our history shows that we have always been committed I personally attain great value from attending regular committee We’re committed to learning and improving, through to doing business the right way, with more than an eye meetings, reviewing our progress and overseeing the evolution being authentic in our actions, true to the purpose of our on how our work impacts the world around us. of the plan. We’re proud to share our targets for increasing brands and focusing on the areas where we can make diversity across our workforce, particularly our senior leadership the most significant difference. I look forward to sharing However, when faced with a volatile retail climate and team, and we’ll continue to track our progress in this area. our progress with you. ever-increasing societal demands, the real challenge is deciphering what this means today. We need to unite the Our ability to have a positive impact increases when we work Andy Long need to fulfil our consumers’ demands for great products as one, so we continue to be guided by our partners, academic CEO, Pentland Brands anywhere, anytime, with a guarantee that those products institutions and charities. We learn and improve by bringing the

4 Introduction A view from Sara Brennan, Head of Corporate Responsibility

With consumers now at the forefront of campaigns A particular achievement for my team was for sustainable causes and a growing investment in attaining ‘achiever’ level by the Ethical Trading the future of the planet and its people, 2019 was a Initiative (ETI), for strengthening our approach year where many businesses took a second look at to ethical trade through NGO collaboration, the impact of their operations. multi-stakeholder initiative representation and monitoring for improvement. Our focus now is ‘Sustainability’ is the word of the moment and arguably on continuing to work with the ETI and our other the theme that most significantly defined our focus partners to further cement our ambitions and areas in 2019. It’s our aim to make brands that matter, reach our targets. and to be able to do this generation after generation, we need to help our consumers choose products that As a business looking to build a sustainable put people and our planet at the forefront. future for the long term, we’re looking for solutions and initiatives that will stand the test In 2019, we set up a sustainability steering committee of time – not a quick fix. While we know we’re and working group. This team of passionate not there yet, we’re committed to listening to individuals from across our business has the sole aim our people and our partners, so that we’re able of improving the sustainability of our brands, products to use our influence to make a difference. and processes. They now make up a global network of representatives driving the projects and initiatives that Sara Brennan continue to shape our business. Many of the results Head of Corporate Responsibility, documented in this report can be credited to their Pentland Brands efforts in 2019. [email protected]

5 Introduction COVID-19

This report was written prior Our employees have been supporting to the impact of COVID-19, through volunteering, fundraising, or making PPE clothing and equipment. which inevitably caused us As a founding member of ACT (Action, to re-work some elements of Transformation, Collaboration), we our corporate responsibility have committed to paying for goods plans. It also provided us with produced for Pentland Brands and we will continue this during the COVID-19 new opportunities to support pandemic to maintain our long-standing our people, partners and relationships with our vendors. communities. Just some Making product and financial donations of our work includes: to some of the UK and international charitable organisations doing incredible work to help those most in need during the pandemic. Our brands and suppliers have also been supporting the global efforts by You can find out more about the work developing and distributing personal we’ve been doing in our COVID-19 protective clothing and equipment for corporate responsibility update. frontline workers.

6 Introduction Who we are and Our brands how we work

Building brands for the Our products are available in over 190 countries and are sold either world to love, generation directly or are represented by after generation licensees and distributors. Pentland Brands is the name behind Pentland Brands is a division of some of the world’s best sports, Pentland Group. You can find out outdoor and lifestyle brands. We more about Pentland Group here. own Speedo, Berghaus, Canterbury of New Zealand, Endura, ellesse, SeaVees, Boxfresh, Red or Dead and Mitre. We’re the licensee for Kickers in the UK and we have a joint venture partnership for Lacoste footwear.

7 Introduction Our story

The business we know today as Pentland our products and the communities in Brands took its first steps as the Liverpool which we operate. We work in a way Shoe Company in 1932. Founded by that’s considerate of our impact on Minnie and Berko Rubin, what began as people and our planet and we pride a small shoe business expanded until ourselves on being a socially and we were both a manufacturer and a environmentally conscious business. wholesaler of footwear. Over the decades, we’ve continued Being a responsible business has been to acquire and nurture brands over important to us from the beginning. As a the long-term. In January 2020, we family business and a family of brands, confirmed the addition of Speedo we believe that our reputation is our North America - uniting the global currency. Our Standards set out our Speedo brand. Today, we’re one of expectations for ourselves, our partners the UK’s leading brand management and our suppliers to ensure that we companies operating in sports, outdoor continue to do business in the right way. and footwear. Just as importantly, we Honesty, respect and hard work run continue to nurture the culture and through all that we do. principles of the family business so we can continue to make brands matter, Our focus is building a long-term, generation after generation. sustainable business that adapts to the changing environment. We aim to make a positive impact through our business,

8 Introduction

How we We open an office in We sell our share Hong Kong, strengthening in Reebok and our ability to source invest in Speedo shoes in Asia and we Europe, International got here become a public company and Australia listed on the London Stock Exchange

Berko and Minnie Outdoor footwear Rubin set up the and clothing brand We acquire

lished Liverpool Shoe Berghaus joins the Californian Company, a small We buy a 55% Pentland family sneaker brand family business stake in a small SeaVees Estab selling shoes athletic footwear brand called Reebok USA

The company name The company is changes to Pentland privatized and Industries Ltd reverts to being a fully owned family business again Endura join us

We’re appointed UK distributors for ellesse and Kickers The rugby brand We expand into Canterbury joins manufacturing shoes We build a strong the group relationship with the Lacoste family and become the worldwide licensee for its footwear

9 Introduction Making purpose a reality

Respect for people and our Our Positive Business planet has long been at the strategy focuses on:

heart of our business. We Helping people to live active, strive to do the right thing, healthy lifestyles by building not the easy thing, and brands with a social purpose make all our decisions in Creating products that are sustainable and supportive good conscience. of wellbeing and confidence

Protecting human rights by doing business ethically and sustainably

Enabling an ethical and transparent supply chain

Reducing the environmental impact of our operations and materials

10 Introduction Performance highlights of 2019

Engage, influence, impact Leaving a positive footprint We rolled out our apprenticeships programme, recruiting three new We have a targeted approach to sustainability We progressed to level ‘achiever’ with apprentices in disciplines across our to make real, tangible improvements across our the Ethical Trading Initiative (ETI), for business. organisation. Our brands led the way in fulfilling strengthening our approach to ethical their own positive business ambitions, working trade through NGO collaboration, multi- Collaborating and connecting as a portfolio to maximise impact. stakeholder initiative representation and monitoring for improvement. We set up our sustainability steering Nurturing brands with purpose committee and working group to push We progressed to ‘strategic member’ ahead with sustainability initiatives Speedo championed diversity and inclusion,  level with the Sustainable Apparel across our business and brands. partnering with inner city swimming club Coalition (SAC). Swim Dem Crew to empower people to We continued to collaborate with our feel good in their skin and renewing its We hosted our third Global Inclusion Week, charity partners, working towards our sponsorship of Team GB at the Invictus celebrating what it means to be a diverse goals of inspiring 5,000 young people Games 2020. business and starting the conversation across the UK to engage in physical about how we can do more to support activity and empowering 10,000 women Endura established its 1 Million Trees  diversity and inclusion in our workplaces. in disadvantaged communities in our initiative – a pledge to plant one million sourcing markets in Asia. trees each year in a bid to make a We built a sustainable materials library for difference to global warming. our Tier Two footwear suppliers and rolled We were inspired by future trends to look out 100% recyclable packaging across six at how we can create new propositions SeaVees created its first sustainable  of our brands. that offset our environmental challenges. footwear collection, SeaChange.

11 Introduction Positive business: taking action for people and our planet

A rapidly changing consumer world and In essence, it means… Owning our footprint an ongoing climate emergency means decisive action is more vital than ever. Having a positive impact on our We focus on wellbeing, creating diverse, Positive business is about accelerating employees, partners, communities inclusive and green workplaces in which our approach to taking action, for people and consumers our people can be at their best. We and our planet. have a transparent supply chain where Operating sustainably, taking positive workers are empowered and we deliver We spoke to people across our action to reduce our impact on the on our environmental targets organisation, analysed the efforts of world we live in businesses like ours and looked closely Circularity and collaboration at our operations to work out areas where Which in practice, We partner with industry bodies, we can have the most impact. The result equates to… academic institutions and charities to is our Positive Business strategy; three develop our industry expertise. We Building purpose-led brands targeted pillars setting out our ambitions innovate for success and we’re not in the areas we believe we can make the We build brands that sell products afraid of change if it means improvement biggest difference. to support health, wellbeing and Positive business means that working confidence. Our products are made ethically, transparently and sustainably sustainably and enhance, not diminish, is the responsibility of our entire the communities in which we operate organisation. By focusing on impact, we have created a plan that will allow us to achieve results faster, together.

12 Introduction We’re part of something bigger

We’re a signatory of the UN Global We support the UN Sustainable Compact through our parent company, Development Goals (SDGs), which Pentland Group. We believe businesses address the global challenges we face. should align their strategies with We’ve selected the eight goals where environmental and societal goals and we believe we can make the biggest we fully support the Global Compact’s difference. These goals underpin our ten principles on human rights, labour, Positive Business strategy to ensure environment and anti-corruption. that we’re focusing on the areas where we can make the most significant contribution to people and our planet.

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Our brands

Our purpose is building brands for the world to love, and we want to make sure we can do this generation after generation.

As a global brand management company, we power all our brands to create more moments that matter. It’s our ambition to build a business that’s sustainable in the long-term, which is why we build purpose into the fabric of our brands. Here’s a snapshot of how our brands are helping to bring our positive business ambitions to life, for people and our planet.

14 Our brands Speedo Made For This

Supporting people sick military service personnel. The partnership will not only see Team UK Speedo believes in embracing every competitors kitted out with Speedo “We want to dispel myths type of swimmer from all communities. Fastskin performance swimwear for the and champion diversity As a brand, it’s serious about breaking main event in 2021, it will also support and inclusion, in order to down prejudices, removing barriers hopefuls with gear for qualification and build a community every and empowering all swimmers to be training events in the lead up to the Games. swimmer wants to be a themselves. Whether it’s tailor-making part of.” competitor suits for the Paralympics In support of its inclusive strategy, Speedo Rob Hicking, or building communities with inner-city will champion swimmers competing in the Brand Director, Speedo swim club Swim Dem Crew, Speedo Tokyo Paralympic Games in 2021. The believes in empowering all swimmers brand will support several teams as part to be comfortable in their own skin. of Team Speedo, as well as providing access to elite swimwear to allow Speedo is proud to take an inclusive unsponsored Olympic and Paralympic approach to sponsorship, supporting nations to compete. Since signing five- athletes from a variety of backgrounds time Paralympic gold medal winner and championing their passion for the Ellie Simmonds as a brand ambassador pool. The brand recently announced in 2019, Speedo has continued to its plans to renew its role as official demonstrate its belief that swimming swimwear provider for Team UK as should be accessible to everyone – part of the next Invictus Games; the whatever unique challenges they may international sporting competition face along the way. undertaken by wounded, injured or 15 Our brands Speedo Made For This

Protecting our planet manufacturing by-products and even carpet into first grade nylon fabric – Our oceans are at risk of being creating a functional fabric that’s contaminated by debris created from also kind to the planet. single-use plastics. This poses a very real threat to marine life, as well as The brand also made sure that human safety, water consumption and environmentally friendly fabrics climate change. featured in its collaboration with House Of Holland, with some items Speedo loves the water and believes in the collection made using recycled it should be protected. This is a yarn created from old fishing nets. belief that is reflected in its products – H20 Active, its environmentally friendly fitness range, is created from 78% ECONYL® yarn. ECONYL is an innovative regenerated fibre which turns waste from fishing nets,

16 Our brands Speedo Made For This

See it in action: saving Following a ‘call for proposals’ from water safety charities locally and lives through water safety globally, Speedo is also proud to A brand that believes that anyone, be supporting projects in countries anywhere, should have the right to including the UK, Cambodia, Sri swim, Speedo helps teach children and Lanka and Jamaica. adults basic swimming skills, promotes Speedo supports the Nottingham-based water safety and encourages a lifelong ‘Every Child a Swimmer’ programme, passion for the pool through its Swim which provides swimming lessons and Generation programme. kit to disadvantaged children locally to Speedo has established an official two- Speedo International HQ. The brand year partnership with the Royal Live also works with ‘Futures For Business’ Saving Society (RLSS) Commonwealth. to give students in Nottingham the The brand will be partnering with opportunity to undertake a water safety the RLSS to support a large-scale qualification to maximise their local project in a developing country. This employment opportunities. will be in addition to the already The brand is also proud to support the established ‘Small Grants Programme’, Sri Lanka Women’s Swimming Project, which supports individual RLSS which is developing an app to teach Commonwealth members with funding women how to swim. The app contains for drowning prevention projects. videos and advice which function as learning aids for water survival skills.

17 Our brands Berghaus Built to last

Supporting people In December 2019, Berghaus was proud to keep ambulance crews in Berghaus continues to encourage the North East of England warm people of all genders and backgrounds during winter callouts by donating to improve their wellbeing by escaping thousands of pounds worth of into the outdoors. As a brand, it’s led waterproof and insulated jackets by its purpose to improve the physical, from its specialist range. mental and emotional health of its consumers. Now in the second year Berghaus is also working with of its #TimeToGetOut campaign, the ex-professional rugby player Ed brand shows no signs of slowing down Jackson, supporting his most recent in its drive to encourage people to expedition in which he became the improve their wellbeing by getting into first person affected by quadriplegia the outdoors. to summit the highest trekking peak in Nepal. The brand will continue Most recently, the brand hosted the working in partnership with Ed to ‘Women In Adventure’ speaker series adapt and create kit to support his at Kendal Mountain Festival, the UK’s future expeditions. main event for outdoor enthusiasts. Speakers included inspirational paraclimber, Anoushé Hussain, and the Ice Maidens, the first all-female team to cross Antarctica unsupported.

18 Our brands Berghaus Built to last

Protecting our planet Berghaus is continuing to work to reduce the environmental impact of Berghaus creates products that are its products. Following a thorough built to last and loved by people all review of its range, and how it could over the world. To encourage people be made more sustainably, the to love their Berghaus products brand has committed that its t-shirt throughout their lifetime, the brand collection will be 100% organic offers a product lifetime guarantee cotton by Spring/Summer 2021. – committing to fix or replace any You can find out more about how item with a fault or defect within Berghaus has been working to make its expected product lifetime. This its products more sustainable on provides an alternative solution to page 45. clothing being sent to landfill and polluting the environment. It also gives consumers the option to fix their items rather than purchase new ones, saving materials and being kinder to the environment.

19 Our brands Berghaus Built to last

See it in action: taking MADEKIND™ is the overarching framework Berghaus uses for all care of our world its product-related sustainability Berghaus collaborated with Gore- initiatives. This ensures that ensure tex® to create a capsule collection of that it creates products which protect jackets made from materials that are the environment and conserve non- kind to the planet. The four jackets in renewable resources. We reviewed the range are all made from a minimum our MADEKIND™ targets for 2025 of 46% recycled fabrics, over 90% and how we can achieve over and Bluesign® fabrics, Colourkind fabrics above the ambitions set out when it and PFC-free durable water repellant first launched in 2015. You can find (DWR). All auxiliary fabrics have either out more about how we’re adapting PFC-free DWR or no DWR to further our materials to be kinder to the reduce their environmental impact. planet on page 10.

20 Our brands Canterbury Changing the game

In celebration of the Rugby World Cup Justin Tipuric, Welsh International 2019, Canterbury launched the ‘Be rugby player and Canterbury Part Of It’ campaign. Centered around ambassador, says, “Now I play at an “We’re passionate about getting togetherness in the rugby community, international level all over the world, more people from a wide range of the campaign brought together it’s even more important for me to backgrounds involved in rugby, so professional players, referees and fans inspire young people to get involved we’re incredibly proud of our work of all ages and genders – demonstrating in the grassroots game – both to give in supporting the RFU All Schools Canterbury’s belief that no individual them that sense of enjoyment and legacy programme, which has is greater than the team. Celebrating physical wellbeing, and, ultimately, introduced the sport to one million inclusion in all its forms, the campaign to secure the future of the sport.” children, from 750 state secondary inspired community spirit by depicting In partnership with the Rugby Football schools, since its launch in 2012”. a wide array of rugby lovers standing Union (RFU), Canterbury continued its shoulder to shoulder with players and Charlotte Cox, support of the All School programme. officials to highlight that everyone can Brand Director, Canterbury The programme invites schools to play their part in the sport. participate in workshops to design As part of the campaign, the brand a new school rugby kit. Canterbury introduced its #BePartOfGood charity turns the students’ drawings into kits initiative, with Canterbury donating over worn by the school’s rugby team. £10,000 worth of rugby kit to schools to support inclusivity in the game and encourage more children to get active.

21 Our brands

Endura Riding in the right direction

See it in action: to home to plant native species of trees in their Scottish homeland. This 1 Million Trees will restore forest systems in Scotland In a move to take action for the planet, and help reduce the quantity of Endura has committed to planting carbon in the atmosphere. one million trees annually. For its first Endura founders, Pamela Barclay and project, Endura will work to restore Jim McFarlane, say, “We continue mangroves in the Maputo Bay region to work hard to drive authentic of Mozambique. The region was once sustainability across the whole covered by huge mangrove forests product offering and the business, and estuaries, which have been but our brand has a long way to go. decimated by human activity in recent We would hate to look back and think decades. Endura will work with the we could have done something and charity Eden Restoration Projects we didn’t. That’s it really. That’s what to help local communities to restore, is driving our efforts. It’s not tinkering replant and protect these vital forest around the edges. It’s not a gimmick. systems, providing important habitats We need to focus on the real things for threatened species of birds and that will make a difference. If we don’t mammals as well as employment for stop climate change, we won’t have residents of the local area. In addition, a world to clean up.” Endura is working on a project closer

22 Our brands

Endura Riding in the right direction

Supporting people Endura stands for cycling, helping aficionados and amateurs alike push physical boundaries every day. The brand collaborated with London-based bicycle manufacturer Brompton, to encourage Londoners to cycle to work. With roughly 4 million people commuting in London every year, Endura supported the 80,000 Londoners beating the rush on their bikes - helping them become fitter, smarter and healthier by taking part in the cycling revolution sweeping cities across the world.

Showing that it’s about more than just hardcore cycling, the Endura Lifecycle Trust delivered 650 ride sessions to disadvantaged children and adults at dedicated cycling trails in 2019.

23 Our brands Endura Riding in the right direction

Protecting our planet Encouraging consumers to maintain their garments reduces the number It’s Endura’s ambition to go above of items going to landfill, taking a and beyond to create kit that has a responsible approach to production. minimal impact on the planet. The brand removed the water repellant Alongside future-proofing its products compound PFC from its production for the environment, 98% of Endura’s processes in Autumn 2018, so its point-of-sale packaging can be latest generation of fabrics are PFC- recycled. However, the brand isn’t free. As part of this commitment, going to stop there – the team at its Endura has put in place long-term HQ in Livingston, Scotland, are now measures to ensure its cycling actively developing alternative solutions ranges are made sustainably while to polybags and hangers in-store. maintaining the same high quality. The brand launched its own PFC cleaning and re-proofing agents.

Both products use environmentally responsible fluorocarbon-free technology and restore the water repellant finish to consumers’ clothing, while protecting the planet.

24 Our brands ellesse Fashion with confidence

Supporting people Each style was branded with the statement ‘Me By Me’ in three ellesse believes in bringing the best languages and encouraged women out of everybody effortlessly and it’s to express their uniqueness through accelerated to meet the needs of their style. consumers around the world. Working with its 65 global partners to be inclusive The brand also supports British in style, pricing and gender, ellesse wheelchair tennis player Alfie believes that celebrating diversity is Hewett and will continue to work crucial to its success. closely with him on his journey to the Tokyo Paralympics in 2021. This year ellesse collaborated with Foot Locker to create the ‘Me By Me’ collection for women. Embracing female identity in all its forms, the collection celebrated female empowerment.

25 Our brands ellesse Fashion with confidence

Protecting our planet See it in action: bringing Alongside supporting people to be at tennis to the masses their best, ellesse has made inroads ellesse has confirmed a three-year into developing sustainable products. partnership with Dutch streetwear In collaboration with its apparel brand Patta, with a shared ambition partner, the brand has developed of bringing tennis to the masses. ‘Sustainable Tech’ - a selection of Their purpose is to make the sport apparel made from recycled fabrics, more accessible by bringing people which will be part of its main range in together to participate in community Autumn/Winter 2020. tennis tournaments. As part of this ellesse also collaborated with ASOS ambition, ellesse is partnering with to produce another sustainable the charity Performance Plus Sport, product range specifically for the high which provides opportunities for street retailer. Created in both men’s young disadvantaged sportspeople. and women’s styles, the products were made from recycled polyester. Plastic bottles and textile waste were used to create new fibres, which saves water and reduces greenhouse gas emissions.

26 Our brands Kickers* It starts in…

Supporting people Protecting our planet Kickers continues to prioritise Kickers is continuing to look at how it diversity and inclusion by making can reduce its environmental impact. its classic styles gender neutral, The brand undertook a review of its expanding its unisex range and ‘Back To School’ range to work out using models that inspire body how it could improve its materials. As positivity in its flagship campaigns. a result, it has switched all its cotton laces to BCI Cotton, approved by the Kickers will also partner with Better Cotton Initiative. Its leather the Young Women’s Trust, which comes from tanneries accredited supports women aged 18-30 to by the Leather Working Group and get into work. the brand has also swapped its polyester footwear linings to recycled PET. Kickers is in the process of transitioning to using 98% recycled material in all its sock linings for footwear, which will be implemented from Spring/Summer 2021.

*UK footwear license 27 Our brands Kickers* It starts in…

See it in action: collaborating with Confetti Crowd In celebration of female empowerment, Kickers launched its collaboration with Confetti Crowd on International Women’s Day. The two brands worked together to product Kickers’ first vegan-friendly style: the Kizziie Qween Boot. The project was in partnership with the Young Women’s Trust, which campaigns for economic justice for young women aged 18-30 in the UK. 10% of all sales were donated to the Trust and the cause.

*UK footwear license 28 Our brands Mitre Two centuries of team spirit

In 2019, Mitre was proud to support the Homeless World Cup Foundation – a pioneering charity which uses football to help change the lives of those living on the streets. The brand donated 640 sets of training kit and 64 training balls for all the teams taking part, plus 100 balls for the tournament.

Mitre continues to support the Walking Football Association, a unique sport for men and women over 50 looking to play football in a safe and social environment. It’s also supporting local charities in Nottingham where the brand’s HQ is based, donating footballs to causes supporting disadvantaged children.

29 Our brands SeaVees

Supporting people SeaVees is a timeless sneaker brand for all people and it is proud to celebrate its core values of equality, inclusivity and diversity every day. A highlight was its collaboration with fashion designer Trina Turk for its Pride collection, which was launched during Pride month in the USA. Proceeds from the shoes sold via the SeaVees website and flagship store were donated to the Pride Pacific Foundation - an organisation local to the brand’s office in Santa Barbara - that provides services for the LGBTQ+ community.

30 Our brands SeaVees

Protecting our planet the process by voting for which of the three organisations they’d like SeaVees SeaVees believes nothing is more to support. The SeaVees crew also “Since our relaunch in 2008, we’ve important than community and is spent Earth Day on an informative hike been working with our factories and committed to bettering its shoes, led by 1% For The Planet partners, Los our suppliers on challenging the people and the environment by Padres ForestWatch. The team helped industry norms,” says Tiller. “What ensuring that sustainability is integral remove rubbish from the popular Santa we want to do with SeaVees is try to its business plans. Under the ‘1% Paula Canyon hiking trail located to preserve the California dream for For The Planet’ initiative, it donates locally to the brand’s HQ in the Los the next generation and generations 1% of its net profit sales value to Padres National Forest. going forward.” environmental causes. “We’ve been a proud member of 1% For The Planet SeaVees is also bringing its Steven Tiller, since 2012 and we’re really focused sustainability ambitions to life through Founder and CEO of SeaVees on preserving coastal lifestyle, in and its products. Launched for Spring/ out of the water,” says Steven Tiller, Summer 2020, SeaVees has created Founder and CEO of SeaVees. its first and almost completely recycled men’s and women’s capsule collection, The brand launched a robust campaign SeaChange. The brand is partnering for Earth Month by donating $5 with SeaTrees, a charity that helps fight for every pair of shoes purchased climate change by regenerating ocean on seavees.com to three charities ecosystems, to restore one foot of dedicated to combatting climate Californian kelp forest for every pair change. Customers were engaged in of SeaChange shoes sold.

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Our footprint

32 Our footprint Our footprint Distribution and retail

Branded products / products to support Licensee our business / licensed products Managing our footprint isn’t just about through to wear, use and disposal making sure we’re operating sustainably by our consumers. With suppliers in – it’s about making a positive impact on 22 countries around the world, we the world around us and the communities recognise that the impact of our supply in which we operate. chain is significant and far-reaching. Product manufacturing That’s why we closely monitor each Tier 1.0 We build close relationships with the stage of the process, analysing how we suppliers that manufacture our products can use our influence to protect people and we only work with factories that and the environment throughout the comply with our ethical, social and entirety of the product life cycle. Materials and components environmental standards. Our value Tier 2.0 chain is the sequence of processes used to create our products, from raw materials to manufacturing, all the way

Chemicals and dyes Tier 3.0

Raw materials, farming and agriculture Tier 4.0

33 Our footprint An empowered, transparent and ethical supply chain

We’re committed to doing business We have detailed policies in place executive team to provide advice, ethically, with a focus on supporting to protect vulnerable workers in our guidance and expertise in all the environment and communities supply chain, which are available on supply chain-related issues. in which we operate. We believe our website: More information about how we’re everyone has the right to fair pay, working to create an empowered, safe working conditions, and to be Child labour and young transparent and ethical supply treated with dignity and respect. worker policy chain can be found in our Modern We’re working hard to tackle the risks Migrant worker policy Slavery report 2019. of modern slavery and we strive to protect rights and improve conditions Homeworking policy for everyone in our supply chain. Our executive team oversees all ‘Our Standards’ sets out what we the areas detailed in Our Standards, expect from our employees, partners including responsibility for human rights, and suppliers. It includes guidance supply chain and the environment. Our on how to do business with integrity corporate responsibility team reports and respect, and it’s available in directly to a member of our executive 13 languages. team and works closely with the wider

34 Our footprint Working with suppliers

We own one factory in Scotland through the Endura brand, and we co-own four further factories: three in Sri Lanka and one in Vietnam. We engage with our suppliers and partners to ensure working conditions are safe and that workers are paid fairly and treated with respect.

We’re transparent about who we source from because it means our factories are accountable for their standards and we can work in a way that’s both open and constructive. We publish a list of the tier 1 suppliers that manufacture our products on our website.

For our owned brands, we source directly from 182 factories. For our licensed brands, we work with the licensee to influence conditions in their sourcing factories. For both owned and licensee suppliers, we aim to provide maximum support by stationing corporate responsibility officers in and around our sourcing locations.

Sourcing country 35 Our footprint Our governance

We have an established factory A quarter of our tier two suppliers Facilitating review process, which means that have signed the agreement and improvement we’re able to carry out monitoring we’ll continue to roll it out to from when we first consider working others going forward. with a new supplier and regularly for We conduct regular audits for the duration of our partnership. all our tier 1 suppliers to ensure Supplier All our tier 1 suppliers are required compliance with Our Standards. Training to sign our Supplier Agreement and These audits are performed questionnaire Corporate Responsibility Charter by a combination of certified to commit to Our Standards in third-party audit providers, our protecting people and the planet. corporate responsibility team We’ve also requested our nominated and other organisations, such tier two suppliers to commit to our as Better Work. Supplier Agreement. Initial Regular audit audits

36 Our footprint An ‘in good conscience’ approach Taking action

We have committees that guide how It also ensures that we understand If an issue is identified, our we take action across issues relating business risks and that supplier experienced corporate responsibility to sustainability, diversity and inclusion, communications are aligned. team works with the factory to analyse and supply chain. Our committee that the root cause, remedy the issue and Our In Good Conscience forum has oversees supply chain is known as the make lasting improvements to working contributed to updating our process In Good Conscience forum. Led by our conditions in line with Our Standards. for resolving zero-tolerance issues supply chain executive, this evaluates in factories, reviewing our restricted We recognise the impact that risks and opportunities in our supply substances list and strengthening our terminating a relationship with a chain, including those related to ethics, corporate responsibility approach to supplier could have on their workforce integrity and the environment. new portfolio acquisitions. so, where possible, we avoid doing Made up of representatives from supply so. If a factory consistently fails to chain, sourcing, corporate responsibility comply with Our Standards, we will exit and legal, the forum allows us to make relationships responsibly, following the coherent and informed decisions ACT responsible exit policy to minimise around our supply chain. any negative impact on its employees.

When we acquire new businesses, we carry out audits of new factories and work closely with them to ensure they comply with our standards.

37 Our footprint Audits

We conducted 134 audits in 2019, Type of Number of assessments compared with 104 in 2018. Nine assessment in active, pending and of these were part of the Better inactive factories as of Work programme. We also carried 31/12/19 out 17 Initiative for Compliance and Sustainability (ICS) audits as part Audits by third 85 of our joint venture with Lacoste. party auditors

The increase in audits is a result of Risk assessments 5 changes in our internal corporate and audits by our responsibility processes which are in-house CR team detailed in our Audit Policy. We’ve Follow-up audits 23 also onboarded new factories as a by party auditors result of bringing the production of ellesse apparel back in-house. Better Work 9 assessments

Other organisations 12 (i.e audits submitted by licensees)

Total number 134 of audits

38 Our footprint Factory audits Identifying by location issues

26 Vietnam The majority of issues uncovered by our 3 UK audits were classed as minor, comprising 1 Turkey of 66.5% of all issues identified. 32.7% 3 Thailand of issues were classed as critical (slightly 1 Taiwan up from 31% in 2018). 1 Sri Lanka 2 Spain As part of our audit programme, we 1 Romania identified 9 zero tolerance issues in 3 Portugal 2 Pakistan 2019; the same number identified 1 Myanmar last year. While none of these zero 1 Malaysia tolerances are related to employment 1 Japan being freely chosen, they did fall under 1 Italy safe and hygienic working conditions, 10 Indonesia 5 India business documentation and excessive 67 China working hours. In all cases, the issues 4 Cambodia identified were successfully remediated 1 Bosnia and Herezegovina by the supplier.

39 Our footprint Issues by type

Minor 66.5% Issues which can be more quickly addressed, often by improving management practices.

Critical 32.7% An issue of serious concern that could turn into a zero-tolerance issue.

Zero tolerance 0.8% An issue that has an unacceptable impact on worker rights or conditions, which, if not remediated, could cause us to suspend or end production with a supplier.

40 Our footprint Modern slavery is Everyone’s Business

In 2018, we became one of four Developed in collaboration “Everyone’s Business is an important businesses to develop and pilot the with Carnstone Partners, the tool because it offers a way to involve Everyone’s Business app to support Everyone’s Business app can all factory-facing employees on the people to identify issues associated be used in any country by any responsible labour sourcing agenda. with modern slavery. Since launching employee that visits a supplier. Information gathered from these the app, we’ve used a video and It captures users’ observations many visits can be used by corporate supporting materials to carry out and relays any concerns to our responsibility teams to make informed internal training for factory-facing dedicated in-house corporate decisions when engaging with employees. We’ve provided face- responsibility team. It provides suppliers and managing supplier to-face training to quality assurance a way to access timely and risks. We were delighted to work with teams and merchandisers who work accurate information, engage Pentland Brands and other leading on the ground in factories. Training with suppliers and encourage retailers who helped lead and shape has also been added to sessions responsible labour sourcing. this initiative.” on audit protocol, which has been William Pickett undertaken by our employees in the Partner, Carnstone Partners UK, Hong Kong, China and Vietnam.

41 Our footprint See it in action: partnering with the Ethical Trading Initiative (ETI)

“Responsible businesses have huge leverage in the countries they source from, enabling them to collaborate with We’ve been a member of the ETI A spokesperson for our corporate national and local stakeholders, including since 1998 and since then, we’ve responsibility team in Asia also governments, trade unions, NGOs worked with them to promote respect participated in a panel discussion and other businesses, to drive change, for workers’ rights across the globe. on homeworking, where she shared ensure labour laws are observed and We recently increased to ‘achiever’ our experiences of supporting workers’ rights are protected. ETI level with the ETI from a previous homeworkers in India. You can members are expected to work with their grade of ‘improver’, as a result of find out more on page 43. suppliers to ensure the ETI Base Code an uplift in factory activities beyond Going forward, we’ll continue to focus is understood, applied, and observed, auditing, supporting our suppliers in on improving purchasing practices to drive continuous improvement in delivering our ethical principles and and developing action plans for the working conditions, to push for greater a strong level of senior support. remediation of supplier issues. transparency within their supply chains We have aligned our work with the to enable them to better identify, and ETI’s principles by focusing on our mitigate the risk of modern slavery, and purchasing practices, raising employee to act quickly to remedy modern slavery awareness of the signs of modern wherever it is discovered.” slavery and developing our dedicated Ethical Trading Initiative corporate responsibility resource.

42 Our footprint Building supplier Training capability our people

Building the capabilities of our suppliers As part of our remediation programme, We’re committed to doing business through dedicated training empowers we carry out targeted training for honestly and ethically. As a business, them to comply with Our Standards and suppliers to comply with Our Standards. we have a zero-tolerance approach to helps negate risks in our supply chain. In China, we carried out bespoke bribery and corruption. We introduced In August, we increased our dedicated training for ten factories; seven due three compulsory online legal training corporate responsibility resources in to critical issues, two with outstanding modules for all employees – covering Vietnam; our second largest sourcing minor issues and one which needed anti-bribery & corruption, personal data market. Since then, we’ve carried out support with understanding audit and competition law - to support our visits to 75% of our existing factories in requirements. Feedback indicated that people in making the right decisions. the region to undertake training on Our all factories found the training useful, We’re committed to addressing the Standards and requirements. We also with all critical issues subsequently complex and often hidden issue of delivered individual support to help one reduced by 70%. modern slavery. In March, we introduced factory understand changes in local a compulsory online training module labour laws, supporting best practice for all employees in identifying and for our suppliers. understanding the different types of modern slavery that are most prevalent in the fashion industry.

43 Our footprint See it in action: supporting homeworkers in India

Homeworkers, who carry out hand- allowed us to ensure are homeworkers stitching for certain styles of footwear, are paid at a higher piece rate and are a vital part of our supply chain. meet minimum standards. However, lack of visibility over their More recently, our supplier employment or working conditions implemented a simple paper-based creates an inherent risk. system to track orders and payments Homeworkers are a vital part of the world to workers, based on tools provided economy. We support their right to work by Homeworkers Worldwide. It’s a at home to earn a wage flexibly and we transparent method of record-keeping want the homeworkers in our supply in which homeworkers are each paid chain to be paid fairly with the same the same rate, with visibility on the rights and protections as other workers. rate for each style of shoe. As well as providing a vital source of We’ve continued to share what we’ve income, homeworking allows people in learned and raise awareness about the rural areas to access employment and importance of protecting homeworkers. provides flexible work with the potential Our collaborative mapping and to also undertake other responsibilities. implementation programme was Since 2016, we’ve worked with shared as a case study at meetings Homeworkers Worldwide and Cividep between fashion brands with the ETI, to map the network of agents and over alongside our detailed policy on how 200 homeworkers used by one of our to protect homeworkers, as an example suppliers. Since 2018, this work has of good practice.

44 Our footprint Our Sourcing materials responsibly

The fashion industry generates 4% of We’re committed to purchasing all our the world’s waste each year. That’s 92 materials from credible sources and we million tonnes. have clear policies for putting this into practice. We map our supply chain so we can better understand and manage social Our Ethical Materials policy outlines Our and environmental risks. Our supply Standards for sourcing raw materials chain is made up of four tiers: responsibly, including those derived from animals such as skins, down and feathers. Tier 1 product assembly We encourage all our suppliers to source Tier 2 materials and components their materials in line with industry best practice for animal welfare. Tier 3 chemicals We’re a member of the Leather Working Tier 4 raw materials Group (LWG) and encourage our suppliers to source leather from tanneries awarded We publish a list of our tier 1 suppliers LWG gold, silver or bronze certification. We on our website. Since reviewing our also ensure that all down used in Berghaus materials sourcing and identifying a jackets is certified to the Responsible preferred selection of tier 2 suppliers, Down Standard (RDS) and is sourced from we’ll add a list of nominated tier 2 a selection of nominated farms with high suppliers to our website from 2020. animal welfare requirements.

Source:http://www.globalfashionagenda.com/pulse/ 45 Our footprint Removing harmful chemicals

We set clear standards for the use of To provide additional guidance, chemicals in our production processes we developed a new Chemicals to ensure the safety of everyone who Management policy. This is an internal makes or buys our products. process document which works alongside our Restricted Substances Our Restricted Substances List sets out List to ensure a consistent approach our requirements, including restrictions to chemicals management. The policy for any potentially harmful chemicals. sets out the process for engaging with We’re a member of the Apparel and tier one manufacturing suppliers and tier Footwear International Restricted two materials suppliers, assessing the Substances List Management Group risks and a comprehensive remediation (AFIRM). Our Restricted Substances process if required. list is aligned with AFIRM’s, which is best practice for our industry. Twice a year, our internal Restricted Substances network brings together All our suppliers are required to teams from across the business, declare compliance with our list of including product development, materials, restricted substances before beginning sourcing and corporate responsibility, production. We’ve translated our to share updates. We invite external Restricted Substances list into Chinese experts to these meetings to inform the to make it easier for our suppliers in group about new legislation and best China to understand and comply with practice. The Restricted Substances our requirements. network will meet quarterly from 2020.

46 Our footprint Using accredited suppliers

We prioritise working with suppliers Fabric Trim Footwear* which have accreditations to validate bluesign® 55% 11% n/a the materials they provide. We’re continuing to engage with our preferred tier 2 suppliers to grow the share of Oeko-Tex® 66% 92% n/a their materials covered by certifications. We look for: Leather n/a n/a 100% Working Group bluesign®: a system for sustainable textile production that eliminates One or more 82% 96% 100% harmful substances across the of the above manufacturing process *includes ellesse, Berghaus and Kickers Oeko-Tex®: a system for testing textiles to show they’re free from over 100 harmful substances

Leather Working Group: an initiative that awards tanneries with good environmental and chemicals management a gold, silver or bronze rating

47 Our footprint Finding the materials of tomorrow

We’re collaborating with others in our industry to reduce the environmental impact of our products. We’re a member of the Sustainable Apparel Coalition (SAC), which works closely with brands, NGOs and manufacturers to promote and implement sustainable production.

We achieved Strategic Level membership with the SAC for increasing our use of SAC Brand and Facility Materials tools, being clear in our accountabilities for Retail Module Environmental Sustainability sustainable production and promoting best To assess our Module Index practice methods to our suppliers. Currently performance relating to To help our tier 1 and tier 2 To evaluate the around 17% of our tier one suppliers use SAC’s corporate responsibility, suppliers self-assess their environmental impact self-assessment questionnaire to evaluate the environmental and environmental performance. of 80 materials using sustainable production in their practices. social impacts of our The tool measures information data to determine We’re planning to increase this to at least products across their life on energy usage, greenhouse sustainable options 25% in 2020 and we’re developing guidance cycle and operations in gas emissions, water use, for different types to help our suppliers improve their scores. our distribution centres wastewater, emissions to of products . We use three of the SAC’s Higg Index tools and retail stores. air, waste management to measure the impact of our business and and chemical usage. our supply chain. These are:

48 Our footprint Finding the materials of tomorrow

See it in action: As a result, we’ve taken the To ensure our research stands innovating for change following actions: the test of time, we’ll review our findings in alignment with the Our innovation team uses SAC tools We’re working with an external to carry out in-depth materials reviews, latest version of the Higg Index partner to analyse the impact when it’s released in 2020. enabling our products to be made of Speedo Biofuse goggles more sustainably. First, we focused across their lifecycle. This will on Speedo and Canterbury, looking at allow us to amend our design reducing the footprint of products with and manufacturing processes the greatest environmental impact. to reduce our impact, the methodology of which can also be applied to other goggles going forward.

We’re actively looking to replace materials used in foam equipment and armbands with bio-based foam, natural rubbers and PFC-free materials.

49 Our footprint Creating a positive workplace

Our ambition is to create workplaces where people feel welcomed, supported and encouraged to grow and contribute. We’re a global business with approximately 1,500 employees operating in 12 countries around the world, but we work as one team.

We’re committed to paying the Real Living Wage (RLW) to people working at Pentland Brands in the UK. This goes beyond UK National Minimum Wage rates to pay an amount that better reflects the cost of living. RLW rates are published by the Living Wage Foundation in November each year and we align our pay rates the following April as part of our annual salary review. When we acquire new businesses, we develop a plan to roll out the RLW to their employees if this is not already in place.

50 Our footprint A culture that matters

We want to create and nurture a business culture that supports our people to be at their best. Since launching our new manifesto and business principles in 2018, our focus has been on helping our people understand the specific behaviours that can bring them to life. It’s not just what we achieve, it’s how we achieve it.

Over 750 of our people across the UK, Asia and US have participated in a ‘Living our Principles’ workshop. To bring the Pentland story to life, we also embedded the session into other areas of our employee life cycle, including our induction session for new starters.

51 Our footprint Championing diversity Talking about and inclusion (D&I) mental health

Our D&I steering committee and network in their teams. In 2020, we’ll continue We partner with Unmind to support continue to play a part in shaping our to evaluate how we can make our mental health and wellbeing at work. diversity and inclusion agenda. We now people policies more family-friendly, In 2019, we rolled out our Unmind have three D&I networks in the UK, as with a particular focus on shared support tool to all our sites globally. well as a volunteer working group in Asia. parental and paternity leave. Our four focus areas are gender, ethnicity, We believe that being transparent unconscious bias and inclusion. about our goals is crucial to achieving 20.5% of people We believe in raising awareness of the them. When we published our Gender registered on Unmind importance of inclusion by involving our Pay Gap report in April 2019, our people in shaping our initiatives. Through CEO, Andy Long, hosted a D&I the feedback and guidance of the people network meeting to facilitate an open in our diversity and inclusion network, discussion about the findings and our we reshaped our support for people targets for improvement. We continue 15,582 minutes of returning to work after a period of long- to strive to be a business where programmes listened to term leave. We updated our guidelines everyone is encouraged to develop, on returning to work and created new both professionally and individually. resources for managers to support people 174% increase in usage between July and December

52 Our footprint Bringing the outside in

We value different perspectives and believe that being exposed to different views helps enrich us as a business and as individuals. Our global diversity and inclusion speaker series is a quarterly opportunity to hear from an external speaker on their personal and professional experiences based on one of our four focus areas - gender, ethnicity, unconscious bias or inclusion. Our recent speakers included menswear designer and co-founder of the Made In Africa Foundation Ozwald Boateng, Treasurer and Vice President of the World Bank Arunma Oteh and internationally renowned drag queen Cheddar Gorgeous.

We have also trained our people to identify and tackle unconscious bias across our organisation. Our online unconscious bias training has been completed by 82% of our people globally.

53 Our footprint See it in action: Inclusion Week

We’re proud to be a diverse and We also took the opportunity to share inclusive business 365 days a how we’re tracking against our diversity year and we strongly believe that and inclusion targets. In 2017, we set a understanding and appreciating our target of achieving at least 45% women differences is a strength. in our senior leadership team by 2020. As of December 2019, we’re tracking In September, we celebrated our at 41%. We also set a target of 15% third Global Inclusion Week. We representation from Black, Asian and invited our people to join the Minority Ethnic (BAME) communities conversation in a panel discussion and we’re currently tracking at 12.8%. with six speakers from across our You can find out more in our video here. business with varying experiences relating to diversity and inclusion. Topics explored examples of inclusivity in our brand campaigns and functions, as well as how to tackle unconscious biases.

54 Our footprint Getting the right start

This year, we looked at how we could We’re always looking for opportunities improve our entire employee life cycle, to improve our employee experience. from initial recruitment to end-of-year In July, we introduced an onboarding performance reviews. We updated our survey for new starters to complete induction process to allow new starters 30 and 90 days after their first day, to spend time with a dedicated senior and an exit survey, allowing us to leader, within the first two months of understand how we can improve our their arrival in all of our UK offices, employee journey. We also reviewed introducing our positive business our resources for performance and culture from the start. We evolved recognition by taking on feedback our new starter information booklet to from people across our business. We introduce our business principles and updated individual objective-setting share what’s important to us. materials to encourage employees to have regular conversations with their managers, with a particular focus on personal growth. We’ll continue to take on feedback and create more development resources in 2020.

55 Our footprint See it in action: joining the apprenticeship levy

In 2019, we hired our first three early careers apprentices across IT, Finance and Design. “There is so much for everyone to do We’re also using the apprenticeship here at Pentland and even more for levy to support our existing us to learn. We have people from employees to learn and grow. all different design backgrounds – In 2019 we launched our first Industrial, Textiles, Print, Footwear Management Academy to upskill and much more. Everyone is happy to 14 of our current line managers share their knowledge with one another across the UK, in topics including and this makes for a fun and rewarding project management, finance and environment - an environment where communication. We also used the you’re able to do more than just the levy to sponsor one individual to role you were hired for.” participate in an MBA qualification. Jordache Tedeku, Design Apprentice

56 Our footprint Engaging Building leaders our people for the future

We believe in the power of the collective. We’re committed to empowering our In 2019 we partnered with Glint to run two leaders to support their teams to be at all employee experience surveys. As well their best. 12 of our senior leaders have as allowing us to understand what people participated in our Emerging Leaders think about working for Pentland, the tool training programme, with a particular allows our managers to access relevant focus on developing female high potential feedback almost immediately. They use this talent within our business. Delegates were information encourage conversations with individually partnered with a senior mentor their teams and take action at a local and to develop their skills in areas including global level. management, communication and strategy.

In December we celebrated our second We introduced our Leading With Impact annual Pentland People Awards, in which course for senior employees, supporting our people nominated their colleagues for our top talent to become consistent, outstanding individual contributions towards influential and inspiring leaders. Three our principles. 606 nominations were made cohorts totaling 37 delegates have across 23 locations in 11 countries. completed the two-day session and we’ll continue to support our leaders to be at their best in 2020.

57 Our footprint Reducing our environmental impact

We’re committed to delivering on our targets for reducing waste, water and carbon emissions. We believe that every individual can make an impact and we’re committed to reducing our footprint across all our operations.

We’re focusing particularly on:

Our workplaces

Our logistics

Our vendors

Our products

58 Our footprint Our workplaces

While each of our sites is different, Sunderland we’re all aiming to achieve the No single-use plastics, food same goal. We’re working towards waste bins available, LED lighting using 100% renewable energy to save energy, environmentally at our UK offices in London, friendly cleaning products only, Nottingham and Sunderland. battery recycling available, Here’s a summary of the different returned products sold on site activities our offices across the Hong Kong world have undertaken to help All purchased paper is 50% reduce our environmental footprint. recycled, collecting centre London for one-sided paper Removal of single-use plastics, Shanghai disposable coffee cups, food waste Collecting centre for bins available, charging points for one-sided paper electric vehicles, lighting to save energy, battery recycling available

Nottingham No single-use plastics, food waste bins available, solar panels to offset energy usage, LED lighting to save energy, battery recycling available

59 Our footprint CO2 emissions

We track our greenhouse gas emissions to help us reduce our carbon footprint. We’re developing a CO2 baseline for our global workplaces as well as shipping, operations and business travel, so we can more effectively measure and manage our emissions.

We report our greenhouse gas emissions at Group level in line with the requirements of the Carbon Reduction Commitment Energy Efficiency scheme. You can read more in the Pentland Group Corporate Responsibility review.

60 Our footprint See it in action: bringing change to the table

“Vacherin has worked closely with Pentland since opening to introduce sustainability initiatives. In the coming We partner with Vacherin which provides months, we’ll be focusing on increasing catering services at our London the sustainability of our provenance, headquarters. An Edie Sustainability Award people and planet. Specifically we’ll be winning business with a focus on local reducing our carbon footprint through sourcing, they are guided by provenance, cutting food waste, reducing plastic and people and the planet in how they work increasing the vegetarian and vegan and where they source ingredients. options for our customers. We’ve also supported Vacherin’s suppliers, “Our teams have created a collection many of which are also charitable causes. of recipes to minimise food waste All our tea and coffee is now provided and shared the knowledge across the by Change Please; a social enterprise chef team through workshops so all empowering London’s homeless to kitchens are cooking root to fruit. We undertake barista training and attain a follow the waste hierarchy to actively job paying the London Living Wag, as reduce food waste, then look to reuse, well as providing support with housing, recycle and redistribute to assist bank accounts and mental wellbeing. We vulnerable communities.” also support the Luminary Bakery; an East London-based social enterprise that Dan Kelly, Deputy Managing Director supports women from disadvantaged Food & Operations, Vacherin Limited financial or social backgrounds to gain employment through learning culinary skills.

61 Our footprint Our Our production packaging

Since 2012, we’ve carried out We replaced this stage of the We’re taking the first steps towards an annual review of our value process with a steam treatment, using sustainable packaging, with the engineering processes, looking allowing us to reduce our water ultimate aim of making our packaging at how we can deliver a cost consumption by 66%. Since recycled, recyclable or compostable saving in our manufacturing, while trialing the process with one of across our entire portfolio of brands. maintaining or improving the quality our goggle vendors, we’ll launch We package all products purchased and sustainability of our products. this technology to our other via our brands’ websites in boxes Originally a cost-saving initiative, goggle vendors in 2020. made from 80% post-consumer we now use this opportunity to We’re also the first business waste, rather than plastic shipping consider how we can reduce our to launch fully automated bags. This means that we’ll reduce impact on the environment. This manufacturing for goggles the amount of plastic we ship by 27 takes into account our production – ensuring more consistent tonnes every year – equivalent to processes and our packaging. product quality, and thereby nearly a million plastic bottles. In 2019, we focused on reducing waste. The packaging, which is 100% increasing the sustainability of our recyclable and retains a premium manufacturing processes, looking quality, is now used by our brands particularly at Speedo goggles. including Canterbury of New Zealand, Each pair of goggles undergoes a ellesse, Berghaus, Kickers and process to apply anti-fog, which is Boxfresh. We’ll roll it out to our carried out using a water treatment. Speedo and Mitre brands in 2020.

62 Our footprint Taking the Our first steps shipping

To reach our goal of making all our a selection of our goggle packs We’re in the process of establishing wholesale packaging sustainable, from 50% recycled PET to 70% a baseline carbon footprint for our we’re continuing trials and research recycled PET. This will reduce logistics. We estimate that in 2019 into other options, included recycled our virgin PET usage by a further the carbon emissions produced and biodegradable materials. In 2020 23.2 tons from where we were from transporting our products from we’ll transform our standard LDPE4 last year, all helping to create the factories to our distribution centres plastic polybags used for soft goods circular plastics economy. in the UK came to 7,044 tonnes. 76% into 100% recycled LDPE4 bags. of this was attributable to air freight. We’re looking to supplement this This will allow us to reuse materials by standardising the size and We’ve been working to further that would otherwise exist as waste, thickness of packaging across reduce our environmental impact rather than creating virgin plastic from all our sportswear and outdoor by looking at our shipping materials fossil fuels. brands, to limit material waste and processes. In 2019 we reduced We have removed all polybags from and help us work more efficiently. the material usage in our shipping our goggles, replacing them with We’ll then roll this approach out cartons from 5-ply to 3-ply. This a peel-off film. This has made an across our brand portfolio. decrease in shipping weight allows overall annual saving of 17.4 tons us to limit our carbon footprint of plastic. As a next step, we plan through transportation. We’ll work on to increase the recycled content on standardising this size to maximise loading efficiency and further reduce our environmental impact in 2020.

63 Positive Business Report 2019

4.0

Our future

In order to make improvements for future generations, we need more than ever to collaborate with other businesses, charities, NGOs, academic institutions and partners. We believe that success is a team game, and in order to support people and planet, we must work together.

We value the expertise of our people and our partners in leading us towards a better future and we’ll continue to shape our initiatives using their guidance.

64 Our future Our future Collaborating Learning from for better the best

We’re continuing to find new ways in its approach to sustainability so We support a number of academic to ensure the way we operate is we can focus our efforts where we’re institutions that are making sustainable, with a minimal impact able to create the most impact. notable contributions to the arts, on the planet. That’s why we’ve culture and the environment. We also bring together a regular made a conscious effort to increase sustainability working group – a collaboration and engagement with network of internal people working sustainability across our business. on sustainability-related projects In 2019, we established our first ever within our business – who drive our Sustainability Steering Committee. sustainability agenda by ensuring Sponsored by our executive team, that we work collaboratively across this committee is made up of our brands and functions. representatives from across our In the future, we’ll look to evolve business who meet quarterly to provide the accountabilities of both the advice and guidance on projects sustainability steering committee relating to sustainability. It’s led by and working group. We’ll establish our Head of Corporate Responsibility. the governance structure that The team consults across product underpins our ambitions and map development, supply chain, workplace out project streams so we can and brand, and has been instrumental further focus our efforts. in shaping our Positive Business strategy. Their collective aim is to ensure that our business is aligned

65 Our future Our future The Pentland Centre for Sustainability in Business

The Pentland Centre for Sustainability “The idea of incrementalism just isn’t in Business at Lancaster University going to fly anymore. It would if we was founded in 2015 by our parent had 200 years, but the science says company, Pentland Group. The Centre we don’t, so it really is this idea of how supports innovative sustainability we are going to transition and what research to find practical solutions to is the role of the fashion industry in social and environmental challenges. this transition. Fashion is important because it’s something we all use and This year, Berghaus was proud to relate to – while it’s hugely problematic provide kit to UN youth delegates at it has the ability to reach people and the World Economic Forum in Davos. reach suppliers globally to ensure that Endura also provided neck gaiters everyone is working to a united goal. for attendees of Arctic Basecamp; a It has to be a real-world discussion of unique outreach platform, hosted by how fashion can take the leadership former Director of the Pentland Centre, there.” Gail Whiteman, educating participants on global risk, arctic change and Professor Gail Whiteman global climate action.

66 Our future Our future Nottingham Trent A force University for good

We provide a variety of opportunities As a business we give at least 1% of for young people to enter creative our net profit after tax to charitable careers. We work closely with causes every year. This includes students at Nottingham Trent financial donations, pro bono support University, which is situated locally and donated products. to our Nottingham office. In 2019 we At the heart of our business is the offered students the chance to share belief that we have a responsibility their take on a live creative brief for to play our part in being a force for Speedo and Mitre. As a result, one good. Our brands are designed to student was offered a paid summer build health, wellbeing and confidence, work placement and another was through which we aim to make a offered a permanent role in one of positive impact. our brand teams. Our Charitable Giving policy helps us co-ordinate our approach to giving back and provides our people with guidelines for how to get the most out of their personal fundraising activities.

67 Our future Our future Empowering our people to give back

We’re committed to supporting our people Planting trees and donating to make a difference. In August we to a project to rebuild the launched our new Charity Representative Rimbang Baling forest in network. The network is made up of one Indonesia, co-ordinated by or more volunteers from each of our global the World Wildlife Fund. locations. These individuals arrange charity events, identify ways to donate our Support for the Love Lio local charity funds and support worthwhile campaign run by SOS Children’s causes in their regions. They have a direct Villages in Vietnam, which connection to our corporate responsibility provides assistance to children team and they’re passionate about doing living without parental care. positive work in our communities.

So far, the network has co-ordinated:

Donations to four charities in Hong Kong as voted for by employees: Hong Kong Dog Rescue, Joyful Mental Health Foundation, KELY Support Group for upskilling young people and The Conversation Association to preserve Hong Kong’s natural environments.

68 Our future Our future Giving back

We offer all our employees the opportunity to volunteer for one day per year, either individually or as part of their team. Here’s a

snapshot of how our people have Volunteering with the Wildlife Rescue & Supporting the Paralympics in launching Donating books to pupils in rural given back to their communities. Ambulance Service (WRAS) to rescue and their Tokyo 2020 Spirit of Gold campaign primary schools in Vietnam rehabilitate injured animals in New Zealand

Handcrafting tie-dyed t-shirts for children in hospitals Supporting local marine charity SeaTrees Supporting children to get active in London and Providing sporting opportunities for in Thailand. The team also customised bags to used by to regenerate one foot of kelp ocean forest Sunderland with our charity partner SportInspired disabled children with Panathlon hospitals to dispense medicines, replacing the typical for every pair of shoes sold from SeaVees’ plastic bags to protect the environment SeaChange collection 69 Our future Our future Supporting our charity partners

We support four global charity “Our partnership with Pentland makes a real difference for United Purpose and partners, which stand for causes the young women we support in India. that resonate with our business. Their commitment to this project over the years has seen hundreds of girls United Purpose developing their career opportunities and build self-confidence through We work with United Purpose to support a playing sport. Without Pentland’s project which uses sport to teach employability support its fair to say that this wouldn’t skills to young people living in slums in Mumbai, be happening, it’s a great showcase of India. We’ve collaborated on the ‘Fit For The how a company can help make a real Future’ project, improving the wellbeing and difference to people’s lives and the employability skills of young people in Bhiwandi, opportunities open to them.” Mumbai. This supports around 40 young people to develop their skills to access jobs. Kathryn Llewelyn CEO, United Purpose

70 Our future Our future Supporting our charity partners

“British Council Thailand is extremely thankful for the support from Pentland to co-fund the Digital Craft Toolkit Training in 2019, which aimed to reach 120 artisans The British Council and entrepreneurs from across Thailand, ranging from We support the development traditional weavers and indigo makers from the North to of online learning resources women basket weavers in the Deep South. The 10-day that enable more young people, training combined study visits with workshop sessions especially women, in Thailand and hands-on exercises, equipping trainees with tools to to access the craft sector. Our improve their businesses from the planning to marketing ‘Crafting Futures’ programme stage, while empowering them to pass on the tools to has supported over 100 artisans their peers. After attending the training, two makers in Thailand to develop business from a brand called 141 Social Enterprise applied for knowledge and expertise in the additional funding from the British Council in order to set design and textiles industry. up a series of workshops to train an additional 60 brands and individual artisans/entrepreneurs, making the total of 180 trainees, which exceeded the targeted amount in the first year by half. We hope this multiplying effect will continue so that the toolkit will be disseminated and used countrywide in order to reach artisans in remote communities who are in need of training opportunities.”

Andrew Glass, Country Director, British Council Thailand

71 Our future Our future Supporting our charity partners

“Panathlon has been able to successfully develop new opportunities for disabled swimmers across the country during 2019. This wouldn’t have been possible without Panathlon the support of Pentland Brands and we are delighted that We’re helping Panathlon expand in year one we are 16% ahead of our 3-year target of its swim programme to support involving 5,000 children in swimming activities, many for over 5,000 disabled swimmers. the first time over the next three years. It’s been great to Together, we’ve hosted 39 involve staff from Pentland, and the Speedo brand, in our swimming competitions across the swim competitions so they can experience it first-hand. UK, with 1,757 children and 379 I feel it’s really important that companies get directly young leaders participating – a 16% involved with the charities or organisations they’re increase on our original target. supporting, so they truly understand the impact they are making in their communities. Panathlon will continue to expand its swim programme to new cities over the next few years and involve Pentland and Speedo in the expanding relationship. This will enable thousands of children who wouldn’t normally get the opportunity to enjoy the wider benefits of sporting participation, such as healthier lifestyle and increased confidence, resilience and social interaction, to be involved.”

Ashley Iceton CEO, Panathlon

72 Our future Our future Supporting our charity partners

“Four million children grow up in poverty in the UK. Wellbeing, a fundamental human right, is often out of reach for these children, which is why Pentland and SportInspired joined forces SportInspired in 2019. This unique partnership overcomes the very real We’re working with SportInspired barriers to activity that children face in deprived communities. to tackle childhood obesity in Together we work to increase physical activity levels and disadvantaged communities improve mental health by giving children the opportunity to find through fun and inclusive sports a sport, participate long-term and reap the lifelong benefits of programmes for schools. Over becoming active. Together so far, Pentland and SportInspired 90 Pentland Brands volunteers have hosted two “Pentland Community Games” in London and helped host inclusive sports Sunderland. Working with eight schools, we have inspired 442 programmes for local schools in primary school children to find a sport they love and helped London and Sunderland, giving 80 secondary school children to develop leadership and over 400 primary school children communication skills through being Young Leaders. In 2020 the opportunity to discover a Pentland and SportInspired will host two more Community sport they love. Games, in Blackburn and Nottingham supporting hundreds more children and young people. We will continue to work in partnership to bring together sports clubs and schools across the regions to build a lasting impact for school children in disadvantaged communities through grassroots sports.”

Richard Raynes CEO, SportInspired

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Supporting young people: “I’m passionate about the National Saturday Club. You meet young people Saturday Club Trust and see the moment in their eyes when The National Saturday Club offers they realise that they can actually have young people aged 13-16 an a career in the subject they love. I was opportunity to engage with a subject lucky. My Dad was a graphic designer they love at their local school, so grew up surrounded by creativity college or university, free of charge. and design. That’s what’s special about We collaborate with the National the National Saturday Club – it enables Saturday Club Trust to run creative young people to see how creativity can masterclasses, facilitating the be a career and it enables opportunities development of aspirational, creative and builds aspirations for the future.” individuals and offering opportunities Katie Greenyer, to young people from diverse and Creative Talent & Network Director disadvantaged communities. Our latest creative masterclass was delivered at the University of Central Lancashire, where students were briefed to design prints for Speedo, inspired by the 2021 Tokyo Olympics.

74 Our future Our future Collaborating for better

In addition to our charity partners, Sustainable Apparel we work with a number of not-for- profit organisations that share Coalition (SAC) our goal of being a socially and Developing tools to improve environmentally responsible and standardise the reporting business. We are active members of environmental impact across and supporters of the following: supply chains.

Ethical Trading AFIRM Initiative (ETI) A collaborative effort to reduce the use Forging an alliance to improve the and impact of harmful substances in lives of workers around the world. the apparel and footwear supply chain.

Action, Collaboration, The Microfibre Consortium Transformation (ACT) Developing practical solutions for the textile industry to minimise microfibre Bringing together brands, retailers, release to the environment from textile manufacturers and trade unions to manufacturing and product life cycle. address the issue of living wages in the textile and garment supply chain.

75 Our future Our future Embracing circularity

As part of our Positive Business SeaVees in-store recycling lack of sustainable products, we’re strategy, it’s our ambition to using innovation to find solutions to embrace circularity across our SeaVees trialed a recycling programme this real-life challenge. brands and products. By finding which allowed customers to return One such project is a sustainability small ways to reduce our waste their old trainers to its Santa Barbara scheme that creates products such and use the resources we already store. In return, customers received a as tote bags and t-shirts out of our have, we can create a much larger discount on a new pair of SeaVees. surplus materials. This has started life benefit to the environment. The brand has since announced its plans to make the programme a in partnership with Berghaus and is We recognise that we can make permanent feature. a welcome opportunity to re-evaluate a bigger impact by embedding how we can use the excess materials circular processes into the heart Disrupting the industry from our manufacturing processes. of our operations. Teams across Our ideas incubator programme, known The team have piloted prototypes and our business have worked to as ‘Disruption Lab’, brings together a will look to expand the project in 2020. review our surplus materials and cross-section of employees who work products, and in particular, how in teams to create new brands or ways they could be put to good use to of working in response to popular prevent waste. Here are some consumer frustrations. A a frequent examples of our efforts in action: issue in the minds of consumers is a

76 Our future Our future Embracing circularity

The good, the bad and In Kind Direct the Uglies For many years, we’ve partnered with In Kind Direct to help channel ‘Uglies’ is a range of clothing made by our surplus stock to good causes. Canterbury using surplus materials from other areas of production. Recently In 2019 we donated products, with relaunched, the brand has used 12,000 an estimated retail value of over metres of excess fabric to create 11,500 £100,000, to 522 charities. t-shirts. As well as developing robust Surplus stock is also given a new processes to prevent wastage, ‘Uglies’ lease of life through our people. We gives Canterbury a solution to dealing sell lightly worn returns in two of our with obsolete materials created during UK locations and carry out regular the production process. sample sales to give our surplus stock, development and salesman samples a second home.

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5.0

What’s next?

We’re proud of our work in 2019, but we know there’s still more to be done. We’ll continue to be guided by our Positive Business strategy, so we can focus our efforts on the areas where we can have most impact. Through this, we’ll continue to review our approach to sustainability so we can act where it matters most.

78 What’s next? What’s next?

Our focus is: Our targets for our planet:

Taking action for people Make our products sustainably and our planet. and enhance, not diminish, the communities in which we operate To operate sustainably, taking positive action to reduce our impact Own our footprint with a on the world we live in (planet). transparent supply chain in which workers are empowered Our targets for people: Deliver on our Build purpose led brands that environmental targets support health, wellbeing and confidence Focus on circularity and collaboration, partnering with Create diverse, inclusive and industry bodies, academic green workplaces institutions and charities

Deliver initiatives that narrow our gender pay gap and support internal career progression

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Pentland Brands

Lakeside Squires Lane London N3 2QL

To find out more about CR at Pentland Brands, please contact [email protected] or visit our website

© Pentland Brands 2020. All rights reserved.

Airborne Footwear Limited is the UK licensee for footwear under licence from Kickers International B.V. Pentland Chaussures Limited is the worldwide licensee for footwear under licence from Lacoste S.A. and its associated companies.

BERGHAUS and are registered trade marks of Berghaus Limited. CANTERBURY and are registered trade marks of Canterbury Limited. ELLESSE and are registered trade marks of Ellesse International S.p.A. ENDURA and are registered trade marks of Endura Limited. KANGAROOS and are registered trade marks of Asco Group Limited. KICKERS is a registered trade mark of and used under licence from Kickers International B.V. LACOSTE and are registered trade marks and used under licence from Lacoste S.A. and its associated companies. MITRE and are registered trade marks of Mitre Sports International Limited. RED OR DEAD is a registered trade mark of Red or Dead Limited. SeaVees and is a registered trade mark of SeaVees, Inc. SPEEDO and are registered trade marks of Speedo Holdings B.V. PENTLAND is a registered trade mark of Pentland Industries Limited.

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