Sympatex® Sustainability Management

March 2019

Table of Contents

1 Global Challenges ...... 3 2 The Challenges of the Textile Industry ...... 4 3 Corporate Objective ...... 5 4 Sustainability Strategy ...... 6

5 The water, energy and chemical-intensive Textile Industry ...... 9 5.1 OekoTex® / REACH ...... 9 5.2 bluesign® ...... 9 5.3 ZDHC ...... 10 5.4 PFC-free ...... 10 6 Social Compliance ...... 12 7 Transparency in the Supply Chain ...... 13 7.1 Sustainable Apparel Coalition ...... 13 7.2 Partnership for Sustainable Textiles ...... 13 8 Climate Compensation ...... 14 9 Resource and Waste Reduction ...... 20 9.1 Sympatex Membrane - Pre-consumer Recycling ...... 21 9.2 Recycled and Recyclable Laminates ...... 22 9.3 Recycling of Garments – Close the Loop ...... 23 9.4 Care and Repair ...... 26

10 Overview Performance and Ecology ...... 27 10.1 Technical Comparison ...... 27 10.2 Ecological Comparison ...... 27

Global Challenges

1 Global Challenges

Since Sympatex was founded around 30 years ago, the world population has grown by 50%. At the same time, humankind has increased the use of the Earth’s resources to 1.5 times of the regeneration capability of our planet. Currently, we are using the resources of our children’s generation – and we will leave them growing mountains of waste.

It is therefore not surprising that four of the most likely and high-impact risks, according to the 2016 World Economic Forum, are the failure of climate protection, water crises, collapse of the ecosystem and exploding energy prices.

The "Sustainable Development Goals" (SDGs) adopted in 2015 in the Paris Agreement are intended to counteract these risks. They contain a total of 17 different topics on social and economic developments as well as the protection of our planet.

Sympatex® focuses on its capabilities and strengths and is particularly committed to the following development goals: SDG 8 "Decent Work and Economic Growth", SDG 9 "Industry, Innovation and Infrastructure", SDG 12 "Responsible Consumption and Production”, SDG 13 "Climate Change" and the SDG 17" Partnerships for the Goals ".

As a medium-sized company Sympatex® faces great challenges and opportunities. The company is not only dedicated to sustainability in order to be a reliable and attractive partner to apparel companies, but also as a solution finder for global challenges in the textile industry.

The Challenges of the Textile Industry

2 The Challenges of the Textile Industry

Sympatex, a manufacturer of 100% waterproof, windproof and highly breathable membranes and laminates for footwear, workwear, sportswear, fashion and accessories, faces five major challenges. Each one has potential for progress and the opportunity to improve. These topics are listed below. The measures taken by Sympatex® are described in detail in the following chapters.

1. The textile industry is one of the most water, chemistry and energy-intensive industries in the world. ‰ This promotes global warming, water scarcity and resource consumption. In addition, future generations and nature are endangered by harmful substances.

2. The garment industry employs thousands of people worldwide, often not in accordance with international social standards. ‰ Poverty, hunger and lack of health and education can be the result. A life in human dignity is often not guaranteed.

3. The supply chain is long and intransparent ‰ Environmental measures and safe social standards can only be achieved through transparency. The risks of missing climate protection, the collapse of the ecosystem and social instability are the consequences.

4. Immeasurable environmental impacts ‰ The failure of climate targets, water crises and public disorder will increase.

5. High resource consumption and waste production ‰ Apparel production doubled between 2000 and 2014. Accordingly, the consumption of resources has risen rapidly. This goes along with large waste production.

Corporate Objective

3 Corporate Objective

“Uncompromising transparency is the key to give the end customer the possibility to make well-informed buying decisions at the stores”, says Dr. Rüdiger Fox, CEO Sympatex Technologies about this proactive step. “By not only focusing on the high functionality of outdoor clothing but also showing the ecological price tag that burdens the next generation with the purchase, we can change the industry together in a way that it will sustainably protect what it appreciates most: an intact nature.” Dr. Rüdiger Fox, CEO

Therefore, it is our aim to do not only what is legally necessary but what is technically possible in order to contribute so that the textile industry can close the ecological cycle as soon as possible. Through our own development and a close dialogue with our customers, we would like to create a clothing industry that combines high individual demands with the uncompromising responsibility for the coming generations.

We believe that this doesn’t have to be a contradiction. At the same time, we think that it is not enough to only optimise certain aspects like durability. For us, it is the highest degree of freedom to commit ourselves voluntarily to reach an aim to the best of our ability: closing the loop. We invite our customers to join us in reaching this common aim.

Dr. Rüdiger Fox, CEO Sympatex® Technologies

Sustainability Strategy

4 Sustainability Strategy

Agenda 2020: step-by-step more sustainability

Sympatex® aims at closing the ecological loop in the functional clothing sector by 2020. Sympatex offers its portfolio in five dedicated laminate categories, focusing on sustainable aspects. These range from “10% Sympathy Inside” for the minimum level of sustainability to “100% Sympathy Inside” for the best ecological category that meets all the requirements for a closed apparel loop. The criteria range from the sustainable use of raw materials, consumed energy and water up to avoiding harmful climate gases and the banning of chemical toxins. They also include the ability of recycling valuable material. Now Sympatex invites all manufacturers to the “Sympathy Lab” that has been initiated for this purpose to jointly embark on the journey to completely sustainable outdoor clothing by 2020.

Sustainability Strategy

The water, energy and chemical-intensive Textile Industry

5 The water, energy and chemical-intensive Textile Industry

The global consequences of the resource-intensive textile industry are global warming, water scarcity, eutrophication and scarcity of resources. In addition, future generations and nature are endangered by harmful substances.

Sympatex® has been working intensively on the subject of pollutant management for many years and is playing a pioneering role in the textile functional specialist industry. As a supplier, Sympatex® can help companies implement the use of harmless chemicals along the entire supply chain as well as the reduction of water and energy in the production process, materials and logistics.

5.1 OekoTex® / REACH Sympatex® Technologies is a founding member of the testing and certification system Oeko-Tex® Standard 100. Textile products are tested for harmful substances according to strict standards.

All Sympatex® membranes, laminates and tapes have been tested annually. Thereby, Sympatex® and its customers secure themselves with regard to the European legislation REACH. Since 2017, Sympatex® has also tested all membranes, laminates and tapes according to OekoTex® Standard 100 Appendix 6. Annex 6 contains the limit values according to the DETOX RSL by Greenpeace. The Sympatex® membranes have already been successfully tested and certified according to OekoTex® Standard 100 product class I Annex 6.

5.2 bluesign® As a certified bluesign® system partner, Sympatex meets the strict guidelines for the protection of the environment, health as well as safety and stands for a production chain at a high and ecofriendly level.

Bluesign® also requires the use of best available technologies (BAT), which can reduce energy and water consumption.

Current Bluesign Sympatex® laminates can be found in the bluefinder®. For further information, please contact your local Sympatex® Sales Manager.

The water, energy and chemical-intensive Textile Industry

5.3 ZDHC ZDHC stands for “Zero Discharge of Hazardous Chemicals”. It is an industry forum that was founded by internationally leading brands, and it aims at completely eliminating the discharge of dangerous chemicals into the waste water by 2020. In the meantime, the Partnership for Sustainable Textiles has adopted the mRSL of the ZDHC. As a member of the Partnership for Sustainable Textiles, Sympatex has committed itself to supervising the complete supply chain with the help of the mRSL of the ZDHC.

5.4 PFC-free

To meet requirements related to function and care, the outermost fabric layer used in outdoor clothing generally has a water repellent treatment on the outside and a membrane on the inside. The Sympatex membrane ensures that functional clothing is waterproof. Water repellent treatments also ensure that the textile has durable water repellent properties. A DWR (durable water repellent) treatment is an extremely thin coating of the individual fibres of the fabric which renders possible that water simply forms beads and rolls off. This treatment prevents or delays the ingress of water into the fabric. As a result the garment does not absorb water, you do not start to feel clammy and the good breathability of the garment is retained. DWR technologies and their performance can generally be divided into two groups: Fluorocarbon-based DWR (PFC) and Fluorocarbon-free DWR.

PFCs (per and polyfluorinated chemicals / fluorine compounds) are used for textile treatments in outdoor clothing and footwear and guarantee water, dirt and oil repellent properties. These fluoroorganic compounds are regarded as ecologically unsafe, however. The high stability of the fluorocarbon compound produces resistance to a wide range of degradation mechanisms. As a result, PFCs which get into the environment remain there for long periods of time. Fluorocarbon treatments can be replaced by waxes, paraffins, polyurethanes, dendrimers or silicones. Functional alternatives to products containing fluorine were tested in an independent test process initiated by Greenpeace. This showed that water forms bead comparatively well on fluorine-free products. The protection can be reactivated by reimpregnation with PFC-free products.

The Sympatex membrane is PTFE-free which means that it does not contain any fluorine compounds. It is made of perfectly safe polyether/ester, a compound of polyester and polyether molecules, which makes it absolutely environmentally friendly and kind on the skin and also means it can be recycled like a PET bottle.

The water, energy and chemical-intensive Textile Industry

Other membranes such as Gore-Tex and eVent are made of PTFE (polytetrafluoroethylene) whose manufacture, disposal, heating and incineration may release PFCs which are regarded as ecologically problematic. The performance of fluorine-free polyester membranes and PTFE-based membranes are very similar, in terms of them being windproof, breathable and waterproof.

Sympatex has been supplying an eco-friendly, fluorocarbon-free DWR treatment for textiles with its partner Rudolf Chemie, in the form of Bionic Finish® Eco, since mid-2008. Sympatex was the first pioneering functional textiles specialist to coat functional clothing fully with fluorocarbon-free treatments in 2008. FC-free impregnations provide the same performance for all outdoor requirements as impregnations which contain FCs. Oil and dirt repellent effects, which still necessitates the use of products which contain FCs, are not generally necessary. In its apparel business unit, Sympatex supplies products which are PFC-free as a result of their PTFE-free membranes and FC-free treatments.

Since 2012, Greenpeace has repeatedly tested waterproof and water-repellent outdoor products for their pollutant content as part of the "DETOX" campaign. The tests included testing two products made from Sympatex® materials. Twice, the Sympatex® products emerged as test winners. So far, three outdoor brands have committed themselves to the DETOX RSL. This requires limits below the detection limit and thus represents the strictest list of pollutants worldwide. Two of these companies are Sympatex® customers.

To continue this pioneering role, Sympatex® periodically reviews all fluorocarbon-free technologies available on the market to ensure the best available technology for its customers and the environment.

Social Compliance

6 Social Compliance

In terms of social sustainability, many brands audit their garment manufacturers (Tier 1). Sympatex®, as Tier 2, has little influence on these garment manufacturers. Manufacturing workwear and shoes in vertical business the garment factories contracted by Sympatex® are audited according to BSCI (Business Social Compliance Initiative).

The deeper supply chain (Tier 3, such as dyeing plants) is still very modest in terms of social standards across the industry. To enhance this, Sympatex® is in intensive dialogue with the “Partnership for Sustainable Textiles” to improve social standards expertise and is currently focusing on BSCI audits for the deeper supply chain.

BSCI is an initiative of the Foreign Trade Association (FTA), now called Amfori. It is a leading business-driven initiative for companies committed to improving working conditions in factories and farms worldwide. It unites more than 1000 companies around a development-oriented system applicable to all sectors and sourcing countries.

The BSCI Code of Conduct refers to international conventions such as the Universal Declaration of Human Rights, the Children’s Rights and Business Principles, UN Guiding Principles for Business and Human Rights, OECD Guidelines, UN Global Compact and International Labour Organization (ILO) Conventions and Recommendations relevant to improve working conditions in the supply chain.1

The BSCI participants commit themselves to adhering to continuous improvement, cooperation and empowerment.

The BSCI principles include ‘The rights of Freedom of Association and Collective Bargaining’, ‘No Discrimination’, ‘Fair remuneration’, ‘Decent Working Hours’, ‘Occupational Health and Safety’, ‘No Child Labour’ and ‘Special Protection for Young Workers’, ‘No Precarious Employment’ and ‘No Bonded Labor’. In addition, the initiative calls for ‘Protection of the environment and ‘Ethical Business Behaviour’.

Furthermore, all bluesign® certified laminates are tested for compliance with occupational safety and building security.

1 BSCI Code of Conduct, 2014 12

Transparency in the Supply Chain

7 Transparency in the Supply Chain

Environmental measures and social compliance can only be achieved through transparency. The risks of missing climate protection, the collapse of the ecosystem and social instability are the consequences.

In order to be a reliable partner for customers in terms of sustainability and to contribute to the continuous improvement of the value chain, Sympatex is active in multi-stakeholder initiatives.

They serve to improve networking and provide IT-based tools, workshops and initiatives for measurable and comparable progress towards greater sustainability.

7.1 Sustainable Apparel Coalition

Sympatex is a member of the Sustainable Apparel Coalition (SAC). Sympatex joined the SAC in spring 2015 already, alongside more than 150 global brands, retailers and manufacturers as well as governmental, non-profit, environmental and academic organisations in order to promote together how to improve the supply chain in the clothing and footwear industry.

7.2 Partnership for Sustainable Textiles

The Partnership for Sustainable Textiles is a multi- stakeholder initiative with the aim to reach social, ecological and economic improvements along the complete textile value chain. Sympatex® has been a member of the Partnership since May 2015 and is actively involved in achieving the Partnership’s goals, for example by working in working groups and initiatives.

In order to achieve a constant improvement in the textile value chain, each member draws up a roadmap each year. It contains implementation requirements that each member handles for the corresponding year.

Climate Compensation

8 Climate Compensation

Sympatex® is in constant communication with its supply chain, from the textile and surface manufacturers to the dyeing plants, printing companies, equipment suppliers and adhesive manufacturers. Because of that, Sympatex® can optimize delivery routes, calculate the water and CO 2 consumptions of all products, and provide complete traceability and CO 2 compensation for customers and end users.

As a member of the Sustainable Apparel Coalition (SAC), Sympatex® uses several SAC modules to measure sustainability across the supply chain. One of these modules is the Material Sustainability Index (MSI). It is used to measure environmental impacts, such as greenhouse gases, land and water use and resource consumption. Using this tool,

Sympatex® can measure the CO 2 and water consumption of all laminate components.

Together with the company ClimatePartner® an IT-Tool has been developed, which can calculate the environmental impact of the SAC database, the Sympatex® logistics and process consumption.

Thus, Sympatex® can support its customers to reduce their environmental impact to an unavoidable minimum. By means of the Sympatex® eco-calculator, the ecological footprint and water consumption of each running meter can be measured and, in addition, compensated by the support of climate offset projects.

Sympatex® considers the entire process chain (materials, processes and logistics) from the extraction of raw materials to the customer’s gate.

Climate Compensation

Climate Neutrality

Climate change is the biggest challenge of the 21st century. Even individual companies have to make their contribution. The purchase of climate-neutral membranes and laminates offers customers the opportunity to quickly and easily become active in climate protection.

Climate-neutral membranes and laminates are used to calculate the greenhouse gas emissions generated by the manufacturing process, thereby identifying the largest emission drivers and reduction potentials. By investing in internationally recognized climate offset projects, the unavoidable CO 2 emissions can be compensated and the products can be made climate-neutral.

How does Climate Neutrality work?

• All CO2 emissions arising along the value chain are recorded. All emissions are then reduced as much as possible. For each product, an accurate carbon footprint of the unavoidable emissions can be created. 1st Calculation • The calculation is based on the international standards of the Greenhouse of CO 2 Gas Protocol, the process is certified by TÜV Austria.

• Sympatex® and or the customer supports an internationally recognized climate offset project. By means of this, the same amount of CO2 that caused the laminate is saved elsewhere. All projects are certified according 2nd CO 2 Compensation to the highest international standards.

• Each customer receives a certificate for the climate-neutral laminate and an individual ID number. On www.climatepartner.com you and your customers can use this ID number to check how many greenhouse gases have been 3rd Retrace CO 2- Compensation caused and with which climate offset project they have been saved again.

ClimatePartner® calculates the CO 2 consumption of garments and shoes FREE OF CHARGE for Sympatex® customers, so that they can be made completely carbon-neutral.

Climate Compensation

Overview of Climate Offset Services

Marketing Description Graphic material ClimatePartner® ClimatePartner stands for transparency and Logo credibility in climate protection. In order to inform our customers about our cooperation with ClimatePartner as a competent partner in climate-neutral products, Sympatex can provide the ClimatePartner company logo. Label with By printing an identification label with an individual ID individual ID number, the production of climate- number and QR neutral products is completely transparent for code the customer. These labels are available in different languages. On the right you can see an exemplary label. By entering the ID number on www.climatepartner.com or scanning the QR

code, information about the amount of CO 2 and the climate protection project supported for the compensation can be seen.

Use of the All CO 2 emissions resulting from the production graphic climate are initially calculated. The offset of these CO 2 neutrality emissions is achieved by supporting recognized climate protection projects that effectively

reduce CO 2 emissions. ID -link We provide the HTML code of the ClimatePartner® ID query window. With this HTML code, you can integrate the input field of the ID number of climate-neutral products into your homepage. This can then be used to query the ID numbers. In this way, the service of climate-neutral products for you and your customers is traceable. Pictures of Pictures of the climate offset projects can be www.climate- climate offset provided. The picture material for the climate project.com/1004 projects offset project Kasigau Wildlife Corridor, Kenya can be found here: Climate -neutral Customers get a certificate about their climate e.g. Sympatex certificate certificate neutrality and the amount of CO 2 compensated next page

Climate Compensation

Resource and Waste Reduction

9 Resource and Waste Reduction

SDG 12 "Responsible Consumption and Production" deals with recycling. According to this, the volume of waste should be significantly reduced by 2030 by avoiding, reducing, recycling and reusing it. However, the latest figures from the textile industry show that apparel production doubled between 2000 and 2014. Accordingly, the consumption of resources has risen rapidly. This goes along with large waste production.

As a supplier of membranes, laminates and garments, Sympatex® is working intensively on recycling and resource efficiency and offers recycling solutions on all three possible levels, ie membrane, laminate and garment.

The company's goal is to reduce resources and waste through textile recycling while maintaining a high level of recyclables.

Great opportunities lie in the core product, a polyester-ether membrane , PTFE-free and PFC- free, produced in the EU. It enables the purity of highly functional, recyclable products.

The lamination of the Sympatex® membrane with polyester upper and lining materials results in varietal polyester laminates .

Sympatex® is already involved in various R & D projects to create the closed loop. In May 2017, Sympatex® presented the wear2wear concept together with various European industrial partners. This is the first fully recycled and 100% recyclable PES garment in the functional textile sector.

Resource and Waste Reduction

9.1 Sympatex Membrane - Pre-consumer Recycling

The Sympatex® membrane consists of ecologically harmless polyetherester. The Sympatex membrane can be recycled following standard methods – just like PET bottles.

Regarding the production of the membrane, Sympatex and its partners have developed a procedure for the first time that helps to reduce the material input quantities by up to 15%. The material and the energy savings are achieved by a mono-material recycling of waste membrane particles that were created during the production and that had to be disposed of before.

During the development of this procedure, Sympatex managed to essentially guarantee the product properties of the highly functional membrane at the same level without any loss of quality. The pre-consumer recycling procedure has been used since the beginning of 2011 for a selection of Sympatex membrane qualities and represents an important step towards an improvement of the eco-balance.

Resource and Waste Reduction

9.2 Recycled and Recyclable Laminates

The lamination of the Sympatex@ membrane with outer materials and linings made of polyester results in mono-material polyester laminates. This material combination is the ideal precondition for a direct recycling process using existing technologies.

The recycled outer materials and linings made of polyester are part of the sustainability strategy of Sympatex. The material basis of these fabrics is a yarn that is produced with recycled PET bottles The 100% recycled functional laminate is the combination of the 100% recycled Sympatex membrane and a 100% recycled PES lining or outer fabric. This is where the Sympatex recycling loop closes.

For the outer material of a standard Sympatex men’s jacket, for instance, 27 PET bottles (0.5 liters) are recycled and thus reused. The outer materials that are made of recycled yarns represent up to 90% of a final Sympatex laminate product. They are a 100% recyclable product due to the 100% recyclable PES membrane. The performance of recycled and non-recycled PES materials is comparable at a high level.

Resource and Waste Reduction

9.3 Recycling of Garments – Close the Loop

As a logical consequence and an important next step, Sympatex® aims to recycle the recyclable membranes and laminates that are processed in the garment to create a closed loop. Sympatex® claims to return the mono-material garments to the recycling process in such a way that high-quality granules are produced and the product can be "upcycled".

Sympatex developed a patent in 1996 already, which is to help with the product development of a mono-material piece of clothing in order to provide a mono-material raw material for the following recycling process that is as valuable as possible. This patent for the “completely recyclable jacket made of synthetic polymer material” (formerly Akzo Nobel) can be downloaded at www.sympatex.com . In the mid-1990s, the first attempt was made together with industry partners to recycle recyclable jackets from end consumers. Due to the low returns, the project was terminated. Now Sympatex starts again - with new technological possibilities and higher public awareness of sustainable clothing.

wear2wear wear2wear is an innovative industrial partnership dedicated to high-quality, as well as sustainable clothing. Five European companies, representing each phase of the recycling process, have joined together to develop cutting-edge production systems that will turn textile fibres from used clothing into new functional fabrics. The sustainable wear2wear concept is synonymous with high-quality, responsible clothing. In Europe, textile fibres from used garments will be used to produce new functional fabrics. Depending on the area of intended use, they also meet strict waterproofing, breathability, protection and comfort requirements. To ensure that the raw material cycle comes full circle, these textiles can be recycled again when they reach the end of their service life. As a result, there is no waste, and they go on to be used in the production of additional garments. All wear2wear partner companies guarantee that – from the quality of the raw materials to the guaranteed recycling end process– these are 100 percent recyclable, functional fabrics made of recycled textile fibres. Water- and dirt-repelling technologies based on renewable raw materials, along with the most advanced membrane technology, will ensure that the textiles are developed and manufactured entirely without the use of PFC in the future, too.

Resource and Waste Reduction

9.4 Care and Repair

A real plus for the Sympatex membrane – it has no pores and instead works on a purely chemical and physical principle. The hydrophilic (water-attracting) components of the Sympatex membrane absorb moisture from the body and transport it to the outside so that it can evaporate. At the same time the poreless structure of the membrane prevents the ingress of rain. This means clothing which features Sympatex products are extremely easy to look after. Since unlike porous membranes (Gore-Tex, eVent) the Sympatex membrane cannot be blocked by either sweat (salt crystals) or dirt. That means washing the garments each time after wearing is not necessary as to maintain the function of the membrane. But detergent residues (tensides) can also not affect the poreless membrane which means that the garments retain their full performance even after frequent washing. So it does not matter whether you wash the garments more or less often – 100% function and optimal breathability remain guaranteed.

Proper care extends the life of a product. For washing, drying and ironing, dry cleaning and post-impregnation, visit www.sympatex.com .

If functional clothing is damaged, it does not need to be thrown away. Cracks and holes can be re-sealed with the right materials and the know-how of our repair partners. Even broken zippers, torn pockets or too long sleeves are no problem. In terms of sustainability, Sympatex would like to introduce its authorized ‘repair partners’.

Germany Switzerland France

www.outdoor -service.com www.atelierkartal.ch www.green -wolf.fr

Outdoor Service Team Atelier Kartal 21 Rue Joseph Thoret 74190 Am Dorfanger 20 Tellistrasse 92 PASSY D-16515 Oranienburg CH-5000 Aarau Vallée du Mont-Blanc +49 (0) 30 / 992 720 86 +41 (0)62 822 16 15 +33 (0)6 07 04 34 88 [email protected]

Overview Performance and Ecology

10 Overview Performance and Ecology

Performance is an important sustainability factor in terms of longevity and clothing comfort. Below is the overview of sustainability at a glance.

10.1 Technical Comparison

10.2 Ecological Comparison