Wolford Sustainability Report 2021 (corrected version- now included: reporting on the EU taxonomy)

The Future is

GREEN

Sustainability Report 2021

CONTENTS

Company

The Misson

Letter From the Management Board

General Information About This Report

Company Profile and Business Model

Sustainability

Responsible Corporate Governance and Compliance Material Sustainability Issues and Stakeholders Involved Conclusions for the Sustainability Strategy Disclosure according to EU Taxonomy (2021)

Responsibility

Responsibility for Our Environment

Responsibility for Our Employees

Responsibility for Our Supply Chain

Further Information

GRI Content Index 2021

Contact & Imprint

  04 

05 

06 

08 

• • 09
• 14 

17 

26 

30

32  

• 36 
• • 39
    46 
    53 
• 56 

58 

63 

01	02	03	04
Company	Sustainability	Responsibility	Information

01

	The
		COMPANY
		The Mission
05
		Letter From the Management Board
06
		General Information About This Report
08
		Company Profile and Business Model
		09

004

01	02	03	04
Company	Sustainability	Responsibility	Information

The

MISSION

For us, the focus is on human beings. Their well-being and the quality of their future depend on the decisions we make today in our daily lives - in the interest of the climate, in the interest of society, and in the interest of the company. We take this responsibility seriously. Day after day.

005

01	02	03	04
Company	Sustainability	Responsibility	Information

Letter From the Management Board

The Wolford­ AG Management Board: Andrew Thorndike (COO)

and Silvia Azzali (CCO)

Dear reader,

Climate change is the biggest challenge of our era. At the same time, it also offers the opportunity to develop a new economic paradigm. The European Green Deal of 2019 is the basis for this transformation. All 27 EU Member States have committed to making the EU climate-neutral by 2050.

Regardless of this, Wolford­ had already formulated a sustainability strategy in 2012 that aimed to gradually switch over to recyclable products. By 2025, half of our products should be able to circulate in a biological or technical cycle in accordance with Cradle to Cradle®.

006

01	02	03	04
Company	Sustainability	Responsibility	Information

By 2025, half of our products should be recycled either biologically or technical cycle according to Cradle to Cradle® circulation.

Wolford­ is one of the first textile companies with its own Cradle to Cradle® collection of over 32 Gold-certified styles, both in the biological and technical cycles, which means that we fulfill the five criteria of the Cradle to Cradle® Gold Standard. We are also the first skinwear brand in the world whose legwear products all fulfill the bluesign® sustainability standard, which ensures the safe use of chemicals for people and the environment.

The durability of our products is a key factor in their sustainability and our reputation relies entirely on the quality and comfort of our products - in addition to continually monitored manufacturing processes, this also requires the careful selection of the materials we use. The Purchasing department continually monitors existing suppliers and is engaged in close dialogue with them.

The new strategy aims to use measures that extend throughout the entire life cycle of a product to prepare our company for a greener future and to strengthen our competitive edge while protecting the environment and manufacturing innovative, fashionable, durable, recyclable and exceptionally comfortable products for our customers.

We rely on our highly motivated and qualified staff to implement our sustainability plans. To do this, we offer good working conditions and advanced training to ensure that everyone is up to date on the latest requirements and technologies, and that they are applied accordingly. We would like to thank our employees for their commitment and we are relying on them to continue integrating sustainability and climate protection into their work, thus helping ­Wolford to implement its sustainability strategy and to continue to develop it.

We hope you enjoy reading this report and welcome any positive feedback, as well as comments and criticism.

Bregenz, June 17, 2022

Andrew Thorndike	Silvia Azzali
COO	CCO

(102-14,102-51)

007

01	02	03	04
Company	Sustainability	Responsibility	Information

General Information About This Report

01	02	03	04
Company	Sustainability	Responsibility	Information

Company Profile and

Business Model

This report is the consolidated non-­ financial report (sustainability report) for the 2021 financial year (January 2021 to

December 2021) for the Wolford­ Group (in accordance with Section 267a ­Austrian Commercial Code, UGB) and for

Wolford­ AG (in accordance with Section 243b UGB). The statements in the report make reference to the ­Wolford Group

("Wolford")­ . Any deviations are disclosed separately below. All descriptions of management strategies and concepts regarding the major sustainability topics (relating to environmental, social and labor matters, compliance with human rights, and combating corruption and bribery) apply both to the Wolford­ Group and ­Wolford AG. (102-50,102-51)

This report presents the major topics that are relevant to the future growth of the company. The major topics are determined based on the significance of their economic, environmental and social impact - taking into account the perspectives of various stakeholders. (102-46)

The topics of "Environment" and "Supply chain" were only identified as major

topics­ for the manufacturing sites

(Wolford­ AG Bregenz [AT] and ­Wolford proizvodnja in trgovina d.o.o. Murska So- bota [SI]). This is due to the fact that the energy consumption and potential for emissions that are harmful to the climate are comparatively low there, which is why they are not taken into account in the external reporting. The indicators disclosed for these topics therefore refer exclusively to the manufacturing sites.

This report is oriented to ­Wolford's value chain and addresses all stakeholders, i.e., employees of the ­Wolford Group, customers, partners / suppliers, NGOs, shareholders and the general public.

The Wolford­ AG Sustainability Report was compiled on the basis of the international Global Reporting Initiative (GRI) standards, "Core" option. For a detailed GRI index, please refer to the Annex (page 54). Reports are issued annually. The numbers in parentheses refer to the relevant disclosures in accordance with GRI requirements. (102-52,102-54)

The content of this sustainability report has not been externally reviewed. (102-56)

Contact:

Investor Relations & Corporate Communications [phone] [e-mail]

(102-53)

KEY FACTS ABOUT		75% of total revenue, followed by North
WOLFORD		America (23 monobrand stores) and
­Wolford, which was founded in 1950 in		Asia (32 monobrand stores).
Bregenz, Austria, designs, manufac-		02 // NET SALES BY
tures and sells premium skinwear (leg-
	PRODUCT CATEGORY, in percent
wear and bodywear), as well as exclu-
sive lingerie and select accessories,			Merchandise 1% 2% Accessories
such as belts and scarves. With an av-
erage of 1,081 employees (FTE), it			Lingerie 16%
achieved revenue of € 109.50 million				37% Legwear
during the 2021 financial year. In com-			Beach-
pliance with the highest environmental			wear 1%
standards (partner of the bluesign® sys-
tem), ­Wolford designs and manufac-
tures its products at two sites in Austria
and Slovenia. The brand belongs to the
global luxury fashion conglomerate
Lanvin Group, which was founded by
­Wolford's Chinese majority shareholder			Ready-to-wear 43%
Fosun. With its 229 monobrand POS
(points of sale), including 101 of its own
boutiques, and over 2,500 retail part-		During the 2021 financial year, Wolford­
ners, the brand is represented in around			achieved revenue of € 109.50 million
45 countries around the world. Europe			and an operating profit (EBIT) of € 0.54
is the most important market, with 169			million. The balance sheet total came to
monobrand locations and a share of		€ 140.99 million, equity amounted to

01 // NET SALES BY MARKET, in percent

Asia/Oceania 7%	20% North America

Rest of Europe 34%					15% Germany
UK & Ireland 8%		7% Austria
9% France

008

009