ALBERTO Sustainability 2021

WE CARE

RESPONSIBILITY CONNECTS

“Sustainability is a stance and fortunately it never ends.”

MARCO LANOWY

4 6 9

10 12

ALBERTO – WE CARE Sustainability is multi-facetted. Climate change, scarcity of raw materials and demographic changes are just some of the many deep changes. We encounter them in all industries and they affect all parts of life – professionally and personally. However, therein also lies an opportunity we have identified at ALBERTO. After all, whatever changes can be jointly remolded. In the best possible sense – for people, the community and nature. On the following pages we would like to give you insights into our sustainability concept as well as our related activities and commitment.

4......GOOD STYLE BEGINS WITH THE ATTITUDE. 5......INTUITIVELY PERFECT. FROM THE START. 6......PRECISION CRAFTSMANSHIP REQUIRES ESTEEM. IN EVERY ASPECT. 7......MADE TO LAST FOREVER. 8......TESTED AND CHECKED THROUGH AND THROUGH. 9......FAIR TREATMENT OF PEOPLE AND THE ENVIRONMENT. 10......CHECKED? INDEED! DETAIL ORIENTED? BUT OF COURSE! 11......MOVING FORWARD WITH GREAT ENERGY. 12......NOTHING IS DONE HALF-HEARTEDLY. 13......PREFERABLY STRAIGHT FORWARD. FROM PERSON TO PERSON. 14......THE FABRIC THE FUTURE IS MADE OF. 3

GOOD STYLE BEGINS WITH THE ATTITUDE. Sustainability has always been deeply embedded into ALBERTO’S DNA. Hence, it is not something we at the headquarters in Mönchengladbach suddenly subscribed to upon passing the Agenda 2030.

For instance because the zeitgeist mandates it. The designation “family-operated company” describes far more than the ownership structure at Alberto. In fact, it is the foundation of our understanding that all employees, partner businesswes and customers around the world are part of this family. The focus is on the human being. In keeping with our slogan “Pants we Love“ we share our passion for pants.

Most importantly, though, we use our joint values as the guidelines. Values such as responsibility, because responsibility connects. It builds bridges. Therefore, in ALBERTO’s eyes it is the determining key factor for economic, social and ecological success in a globalized, increasingly complex world. We are now doing business in 56 countries around the globe.

We look back on close to 100 years of history. This number and the fact that now the fourth generation has joined the company shows that we are pursuing a long-term, generations-spanning strategy.

Instead of short term profit maximization, we have always built on a solid foundation and sustainable growth. For us as a family-operated enterprise, economic action is consistently equivalent to integral conscious action. This means that we – today and in the future – assume active accountability for the interests of our customers and, moreover, in general for the wellbeing of our staff members, suppliers, production facilities, merchants, society and the environment. It is the kind of responsibility that is not only binding – it also connects us.

4

INTUITIVELY PERFECT. FROM THE START.

Over the course of our corporate history, we at ALBERTO have consistently implemented measures and projects aiming at sustainable development, long before the term had the meaning it has today. In fact, one could even s ay that the establishment of the company as such was based on upcycling, i.e. an approach to sustainable manufacturing. Before he later specialized in the production of men’s pants, Dr. Albert Dormanns made jackets, trousers and career clothing from return inventory, sample coupons and acquired surplus merchandise in 1922. This early understanding of sustainability of course sprang from a crisis, just like it always does when it makes an appearance in history. At the same time, the subsequent success story also tells us that this awareness of scarcity was the point of departure – and still is today - the basis for our future development amid our innovative ambitions. It is a fundamental concept from which we are still profiting today.

5

CRAFTSMANSHIP PRECISION REQUIRES ESTEEM. IN EVERY ASPECT.

At our studios in Mönchengladbach we still keep our eyes on fresh new developments, plays with designs, seek out new materials and finetune our cuts, the form and the function of our garments. Every fabric, each button, any type of yarn is carefully chosen before it is allowed to be combined in the collection.

The result of all this passion and experience: the perfect symbiosis of experiments and perfectionism. But this is also a creative process that requires leeway. That is why our corporate culture is characterized by joint respect, esteem, forthrightness, trust and courage and as a result, also by conscientiousness paired with plenty of room for decision-making and readiness to change. This creates dynamics, and it incentivizes us to move forward with our eyes trained on the future.

As an employer we also contribute to a perfect work-life balance and the lasting wellness of our employees through life phase oriented, flexible work time models, financial support for health promoting sports and nutritional offers and the fostering of the professional and personal development of our staff.

6

MADE TO LAST FOREVER.

Great design and quality are givens at ALBERTO and we model these values inside the company every day.

In our eyes, the term quality does not only refer to the use of premium materials and yarns or to excellent workmanship and perfect fits, which ensure that people love to wear our pants for many years thanks to their perfect interaction, even if they are exposed to lots of wear and tear. This distinguishes them from fast fashion in every aspect. This is also evident from our in-house option our customers can use to have their pants mended. Even if they are already ten years or older, the experts in our repair services will do whatever they can to give used favorite pants a new look and let their owners enjoy them for many more years. In particular, we also see the quality of our pants with regard to low emissions and responsible production processes/conditions along the entire value chain.

7

TESTED AND CHECKED THROUGH AND THROUGH. All ALBERTO pants are developed with a great love for detail in Germany at our Mönchengladbach headquarters. When choosing the materials, 95 percent of which are sourced in Europe and 5 percent in Asia, we ensure they are absolutely safe. Uninterrupted traceability, all the way to the top cloth, is a given. We also visit all our suppliers on location. Together we define social, environmental and quality assurance standards and audit compliance. We also give preference to vendors who are pursuing their own sustainability projects, as well as materials that are already Oeko-Tex Standard 100 certified. Our NOS as well as all seasonal collections are uniformly certified with the respective seal. As of 2022, the entire ALBERTO Collection will be Oeko-Tex Standard 100 compliant. In a second step, at the time of sampling, all materials are tested for their physical properties in our own lab, and for chemical characteristics in a third party lab.

A top fabric must meet our in-house quality standards to be included in our collection. A final in-house inspection of the 15 to 20 we perform is conducted before the merchandise is retailed.

8

FAIR TREATMENT OF PEOPLE AND THE ENVIRONMENT. ALBERTO pants are exclusively manufactured by a handful of dependable European and Tunisian partner companies with whom we maintain trustbased relationships. We are of course members of the Foreign Trade Association (FTA) and its Business Social Compliance Initiative (BSCI), the leading European labor rights protection projects, which guarantees, for instance, fair work hours and compensation, workplace safety, social benefits and the protection of the environment. It also undertakes to comply with the UN Global Compact and the OECD Guidelines. All production partners are mandated to work in compliance with the thus defined code of conduct. To ensure adherence to these standards on all levels, we visit and audit our partner operations on location. The laundry facilities, where our pants receive their inimitable look are virtually all DIN ISO 9000 and Oeko-Tex Standard 100 certified. The operators and laundry facilities are also BSCI audited. We have been foregoing the sand blasting process in the finishing of pants for years.

ALBERTO’s cooperation with suppliers and producers is based on partnerships that have endured for years. They are all part of our family and have thus earned our unrestricted attention and support.

Besides continuous exchanges, this also includes periodic training, raising sustainability awareness, hardware consulting and also financial support with new acquisitions in this segment.

9

CHECKED? INDEED! DETAIL ORIENTED? BUT OF COURSE! We also consider the responsible handling of resources an important part of a high quality production process. Leather labels used on ALBERTO pants are, without any exceptions, ancillary products of farm animals that would be thrown away if it were not for this sustainable upcycling option. The degree of usage of our top fabrics is currently 85 percent. The remaining 1 percent are reused. When it comes to the transportation of goods, we also consistently bet on the reuse of transportation packaging and hangers. By the way, the latter are made of 100 percent recycled plastic. For the delivery of pants, we use garment bags made of recycled materials instead of film. Last, but not least, we refresh garments that are returned and donate them to aid organizations to assist people in emergencies.

10

MOVING FORWARD WITH GREAT ENERGY.

11

NOTHING IS DONE HALF-HEARTEDLY. Our consistent corporate policies of assuming responsibility, averting, using and reducing, do notstop at the retail level. For instance, we do not accept lump sum return rates, produce promotional pieces and do push additional flash and interim collections into the market. We know that such practices only result in fake transactions and in reality – including the work stress for employees – represent a huge waste of resources. Ultimately, inventory remains that can no longer be marketed and they are damaging to everyone: The environment, retailers, the brand. The furnishings we provide to our retail partners for the sales floor have long useful lives, can be regularly refreshed and recycled. Other POS materials, e.g. those used for decoration are used very sparingly.

12

PREFERABLY STRAIGHT FORWARD. FROM PERSON TO PERSON ALBERTO has strong regional roots. We are aware of our responsibilities, especially within the region. Being conscious of our origins, we work as initiators, sponsors or donors, primarily in regional projects we see added value in and that we thus consider particularly worthy of support. They include projects that help young talent. For instance, we are fostering members of the Economic Faculty at the Lower Rhine University and advocate for science with our financial involvement in research as well as teachings. ALBERTO also sponsors the German Stipend for Students of the Textile Technology Faculty at the Lower Rhine University. Stipend awards always take into account, besides excellent study results, social engagement and extraordinary personal achievements. Another project we feel passionate about is the revitalization of city quarters in Mönchengladbach. Hence, we are a sponsoring member and active supporter of various initiatives aiming at urban development and giving it new dynamics and sustainability.

13

THE FABRIC THE FUTURE IS MADE OF. For us, sustainability is much more than the use of organic cotton or hiding behind certain seals. In fact, it is an ongoing, uniform process that poses new challenges on every value chain level. Sustainability strategies, the way we understand them at ALBERTO, encompass everything from sustainable designsto the use of innovative materials and processes to the optimization ofworking conditions, resource consumption or recycling and consumer patterns. However, we also know that the global, social and ecological challenges can be assessed realistically and can be resolved only jointly and in the long term. Ultimately, it is important that businesses, policymakers andsociety pull in the same direction. After all, responsibility connects.

And nothing is more attractive than a positive attitude.

14

Vertreten in 50 Ländern Represented in 50 countries Mehr als 2.000 Einzelhändler More than 2,000 retailers Lagerfläche von 10.000 Quadratmetern Storage area of 10,000 square metres 85.000 Hosen täglich verfügbar 85,000 pants available daily 110 Mitarbeiter in Mönchengladbach 110 employees in Mönchengladbach 1.300 Mitarbeiter weltweit 1,300 employees worldwide Produktion in Rumänien, Polen und Tunesien Production in Romania, Poland and Tunisia Familienbetrieb seit 1922 Family business since 1922 Beschaffung von Waren aus Europa Procurement of goods from Europe Wir denken Nachhaltigkeit We think Sustainability

ALBERTO GmbH & Co. KG Rheydter Strasse 19-31 D-41065 Mönchengladbach Phone: +49 2161 8192-0 Fax: +49 2161 206810 alberto@alberto-pants.com www.alberto-pants.com ALBERTO IN SOCIAL MEDIA