Boll & Branch Impact Report

Impact Report

Table of Contents A Letter From our Founders

3

Our Pillars

4

Five Years in Review

5-8

2018 Recap

9-11

The Boll & Branch Standard

12-15

Our Product

16-23

A Peek Inside

24-27

Conclusion and Commitments

28-29

A Letter From our Founders

To our Boll & Branch community, Five years ago, we were disappointed by our experience shopping for new sheets. We dealt with our disappointment by making an unusual choice: to start a new company.

and build out several manufacturing facilities where fair employment is the only way. In this report, you’ll learn the specifics on how we’ve been able to improve the lives of the skilled craftspeople who make our products.

Research told us that textile manufacturing was a rotten

As we have grown and learned as a company, one of our

industry. Corporations took egregious advantage of labor

proudest discoveries is that our conscientious, sustainable

and over-exploited the environment to bring consumers a

process has inarguably led to a better product. Our sheets,

substandard product. They were choosing shortcuts over

towels, blankets, pillows, and mattresses aren’t like anything

integrity, and profit over humanity. But what if we made

else on the market, perhaps because we have earnestly

better choices instead? What if we chose to apply the

questioned every choice that goes into their production.

Golden Rule to making our products?

Complete freedom from convention allowed us to choose

What could the textile industry be if we treated others the way we would want to be treated? What if conscientiousness and respect governed our approach to people, to the environment, and to our products?

the right way, not the easy way, to build our company, codify our processes, and make our products. If our choices were driven by our hearts, the report that follows will show you that they’re also governed by a specific science, and regulated by international organizations

Every day since we asked these questions, we have

whose aim it is to keep people, the environment, and our

learned more answers. First and foremost, it means using

consumers safe. Millions of happy and devoted people tell

100% organic cotton. A startling fact we uncovered early

us that our choices matter. That they sleep well at night.

on was that the average life expectancy for a conventional cotton farmer in India is alarmingly low. This is because of two threats: constant exposure to aggressive pesticides, and overwhelming supplier debt leading to suicide. The upholders of the status quo take this fact, along with irreversible damage to waterways and biodiversity, as an

If we were to go shopping today and find this brand we’ve built among the options, we would find the sheets we were looking for in the first place: sheets that treat the world, and treat us, as we wish to be treated.

And that’s how we know our choice was right.

acceptable casualty. We didn’t, and we never will.

We knew there were some appalling things happening in textile factories, too. Unsafe working conditions, child labor,

Scott & Missy Tannen, Founders, Boll & Branch

cruelty against women, and bonded labor (i.e. slavery) had been the norm for years, if not decades. We knew we wanted no part in it. We have been lucky to partner with

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Our Pillars

Better for People This is our everything. Every decision we make, every product we craft, puts people first — from the farmers who grow our cotton to the factory workers who make our sheets, to the customer laying down to sleep in them at night. The employees at our farms and factories are more than our partners, they’re our family. That’s why fair wages and safe working environments are non-negotiable standards for every single Boll & Branch product.

Better for the Planet Boll & Branch products are thoughtfully designed to give you a great night’s sleep, but there’s no way we would be able to sleep peacefully if our business took a heavy toll on our precious planet.

That’s why we go above and beyond to reduce carbon emissions, limit water usage, and, of course, source the finest sustainable materials. No harmful chemicals, no synthetic pesticides. Ever.

Better for You Since our inception, we wanted to help people get the best, most comfortable sleep of their lives. Boll & Branch was started by two bedding customers, and it fills us with pride to know our products are loved by our fellow customers. People may have come for the luxurious quality of our super soft sheets, but it’s our honest brand story and unyielding devotion to beautiful (and functional!) designs that keep them coming back time and time again.

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Years in Review When we started this company, we did so with the goal of building a fairer and better supply chain from farm, to factory, to customer. We’ve been encouraged to see that consumer’s mindsets are beginning to change and that choosing to buy a sustainably and ethicallysourced product is much more present in today’s social consciousness. We’re pleased to show the progress we’ve made since Boll & Branch’s inception five years ago and there is so much opportunity ahead.

# in Fair Trade, organic cotton consumption1

First Brand to source

bedding with Fair Trade USA2

Ranked in the

top 10

amongst top brands like H&M and Nike for organic cotton consumption1

1. Textile Exchange Preferred Fiber * Materials Benchmark Annual Insights Report, 2018 2. Fair Trade USA Annual Impact Report, 2018 6

Developed a bedding brand with

uncompromising standards that customers love

Nearly

$500,000 in additional wages to farmers and factory workers to sustain living wages1

First Brand to source

bedding with Fair Trade USA

Winner of the 2018 AmeriStar Award for

Packaging Design

2

1. Fair Trade USA Annual Impact Report, 2018 2. 2018 AmeriStar Awards 7

100% Club Product 100% made without harmful chemicals, pesticides or GMOs. 100% made with sustainable raw materials.

100% underwent responsible waste and water management treatment.

100% made in factories that prioritize worker’s empowerment and sustainable incomes.

Packaging

Shippers

100% of our packaging is made from recycled

100% of our outer shippers are FSC certified.

paper and can be repurposed or recycled.

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2018 Recap Our priority is to protect and empower the tens of thousands of people who are responsible for delivering our goods to your home. Our choices of where and how to manufacture, farm, produce, ship, warehouse, etc. all relate back to our belief in better, our mission to put people first. That’s why we prioritize sustainable materials and choose to work with factories who put health, safety and the livelihood of their employees first. We are accountable for our decisions that have a lasting impact on someone’s life, ability to provide support for their family, or protect the natural resources, air quality, and the water of communities who craft our goods.

At the end of the day, we are responsible for each other Boll & Branch tracks on an annual calendar year following reports from Fair Trade USA, released in the Summer 2019, and the Textile Exchange, released in October 2018.

Better for People

Paid nearly

$77K in premiums to farmers

$61K of premiums paid to factory workers

2.8M pounds of Fair Trade seed cotton purchased

resulting in 14.9k

resulting in an extra nine days

remain out of debt1

extra days pay1

per year per employee1

Employed 48 full-time employees

100% of our

in the United States who all earned living wages

sourcing is from

family-owned businesses

helped 12,800 of farmers

Employed over 1,000 factory workers who received fair wages and worked in safe conditions1

1. Fair Trade USA Annual Impact Report, 2018 10

Better for the Planet

2.8M pounds of ginned organic cotton purchased

1

Equals 1,400 master bedrooms

592,923,320 gallons of blue water saved in organic cotton production

2

Equals 12,300 pools

21,252 metric tons of carbon emissions (port to port) saved as a result of boating our goods

3

Equivalent to saving greenhouse emissions from 4,512 passenger vehicles in a year4

8.4 metric tons of carbon emissions off set 3

1. Fair Trade USA Annual Impact Report, 2018 2. Textile Exchange Quick Guide to Organic Cotton, 2017 3. Flexport 4. Epa.gov 11

The Boll & Branch Standard Every stitch in a Boll & Branch product is a physical embodiment of our belief in putting safety, humanity, and financial empowerment above all else. As a family-founded company, it is critical to us that our partners are treated as we would want our family to be treated. Our code of conduct is designed to protect their livelihoods and ensure our supply chain positively impacts every member of the Boll & Branch family.

Going Against the Norm

Traditional Approach Age

Age agnostic, inclusive of minors

Minimum working age (no child labor)5,6

Working Hours

Unrecorded, unpaid or extensive working hours

Established working requirements that ensure manageable working hours, paid and tracked overtime, and required days off5,6

Voluntary Employment

Slave or traffic labor

Pay

People

Our Approach

Health

Treatment

Undocumented immigrants

Documented workers there at will5,6

Minimal pay/does not meet state minimums

Pay stubs tendered5,6

50% of global factory workers can only cover basic expenses1

Living wages5,6

Poor ventilation

Clean working conditions5,6

No access to clean water or waste centers

Access to clean waste center5,6

Retaliation, discrimination, harassment and violence

Protected against discrimination, retaliation, harassment5,6 Equality in pay5,6

Inequality

Maternity leave5

Shoddy building construction Safety

Lack of or blocked emergency exits

Building and safety equipment up to code5,6

Overcrowding

Safety training for employees4,5

Planet

Lack of safety equipment and training (loss of limbs, etc)

Use of natural resources and/or impact to the community

Consumes more water and energy2 Soil erosion2 Hazardous chemicals and pesticides in soil, water and air3

Organic, recycled, natural or byproduct that reduces the need for natural resources Ensures a living soil that can retain more water and nutrients2 Consumes less water, energy, gives off less carbon emissions3 No GMOs4 Prohibits the use of harmful or synthetic pesticides2

Water & Waste Treatment

Untreated water and waste is dumped into nearby waterways

Water is treated and/or recycled4 Safe handling and disposal provisions required4 Prohibit the use of harmful chemicals, metals or toxins or synthetic pesticides4

Product could contain toxic dyes, chemicals, and metals

Natural and/or low impact dyes4

You

Chemicals

Utilize dangerous chemicals to produce the colors and finishes (example - wrinkle-free is created by a dangerous chemical)

Traceability

Cost

Purchased through agents or licenses Unable to track origin

Middlemen markups

Important legal regulations, such as banned Azo colorants, formaldehyde, pentachlorophenol, cadmium, nickel, etc4 Purchased directly from source so that producers and workers earn wages directly Able to trace from seed to finished good Cost of the good is paid directly to the producers, and not lining the pocket of brokers/middlemen

1. Fair Trade USA Annual Impact Report, 2018 2. Textile Exchange Quick Guide to Organic Cotton, 2017 3. Textile Exchange Life Cycle Assessment of Organic Cotton, 2014 4. Global Organic Textile Standard (GOTS) Version 5.0 Manual 5. Fair Trade Standard for Apparel and Home Goods 6. SA8000 Requirements

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Certifications/Audits

Better for People We utilize the following certifying bodies and/or audits to support and carry out our commitment to treat our partners like we would our family. These ensure that factories are free from discrimination, unfair wages, and child labor.

Certifications

No child labor

Health and safety standards for workers

Voluntary employment, Paid overtime, no abuse, discrimination or retaliation

X

X

X

Fair wages

Traceability

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

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Certifications/Audits

Better for the Planet We utilize the following certifying bodies and/or audits to support and carry out our commitment to sustainable practices. These ensure that we can confidently say that no matter which region we produce in, we remain consistent in our standards

Certifications

Safe for processors and customers.

No harmful chemicals, synthetic pesticides or heavy metals

Proper treatment and/or disposal of water and waste

Organic certifications

Sustainable practices

X

X

X

X

X

X

X

X

X

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Our Product Sustainable materials and labor practices crafted around the world

Our objective is to create long-lasting, safe products crafted from sustainable raw materials, while ensuring we protect the livelihoods, safety and well being of workers across the globe.

We carefully consider each and every partnership and require that they align with our values and standards. We partner with familyowned businesses who prioritize sustainable and ethical practices.

No matter where we produce, our standards and expectations remain the same.

Where Our Goods Come From India What’s Made Here:

Cotton Bedding & Accessories

Towels

Linen Bedding & Accessories

Why: India produces 51% of organic cotton in the world1.

They are also the largest adopter of Fair Trade and India - 85%

GOTS organic practices1 within the bedding industry.

With an extensive background in organic farming and

United States - 9% Portugal - 6%

a long history of textile manufacturing, India was the ideal country to partner with to make a safe, quality, sustainable and ethical product.

2018 purchase data

Portugal

United States

What’s Made Here:

What’s Finished Here:

Flannel Bedding

Pillow Inserts

Mattresses

Duvet Inserts

Why:

Why:

Portugal has a long heritage of flannel weaving and

Whenever possible we look to develop partnerships

finishing. In order to master the softness and product

in the US. While most textile production has moved

longevity, we rely on our Portuguese partners.

overseas, we have been able to assemble our mattresses and fill our duvet and pillow inserts in the

1. Textile Exchange Organic Cotton Market Report 2018

United States.

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Overview

Sustainable Raw Materials Below outlines the attributes of the sustainable raw materials we use in the production of our goods. We classify sustainable materials as organic, recycled, byproduct, or natural.

Organic Cotton

Responsible Down

Recycled Springs

94.7%

3.2%

1%

Natural Latex

Linen

Organic Wool

0.7%

0.3%

0.1%

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Organic Cotton

Sustainable Attributes

Functional Attributes

· 91% less blue water than conventional cotton1

· Comfortable, soft hand feel

· More than 70% of water is rain-fed1

· Good absorbency

· No GMOs

· Good color retention

· 62% less energy used than conventional1

· Machine-washable

· Green houses gases are 60% lower than conventional1

· Good strength

3

· Keeps soil rich due to biodiversity so that they can continue producing cotton and crop year over year1 · Synthetic chemicals and harmful pesticides are banned2 · N atural fertilizers (manure, etc) are used which prevent toxic chemicals from invading the soil1 · Fair Trade certifies the cotton purchased is not sold under value (minimum cost per KG) and farmers receive premiums to distribute towards business and community advancement 1. Textile Exchange Quick Guide to Organic Cotton, 2017

2. Global Organic Textile Standard (GOTS) Version 5.0 Manual 3. Textile Exchange Organic Cotton Material Summary 19

Organic Wool

1

Sustainable Attributes

Functional Attributes

· The sheep are grazed on pesticide-free land that

· Good insulation and thermo-regulating properties

is not overgrazed and is never sprayed or dipped with synthetic chemicals as is commonly practiced in conventional sheep farming · Livestock feed and forage used from the last third

· Naturally odor resistant · C an absorb up to 35% of its dry weight in moisture vapor

of gestation must be certified organic · Use of synthetic hormones and genetic engineering is prohibited · Use of synthetic pesticides (internal, external, and on pastures) is prohibited · Number of animals per hectare is lower than conventional farming to prevent overgrazing

1. Textile Exchange Wool Material Summary 20

Linen

1

Sustainable Attributes

Functional Attributes

· Solely fed on rain water and protects against erosion

· F lax fibers and the resulting linen fabrics have

· Excellent rotation crop (biodiversity) to keep the soil rich and able to produce other crops · Produces optimal soil quality, reduces the need for fertilizers or natural pesticides · All parts of the flax are reused; seeds are sold or

unique thermo-regulating properties, providing insulation in the winter and good breathability and a cool feeling in the summer · Exhibit high moisture absorbency · Superior strength and durability

made into oil, the shive is used for soil amendments for gardening, and the short fibers are sold for paper production · Low overall emissions · C rafted in Belgium and complies with the International Labour Organization governing wages, working conditions, and the employment of minors. Flax growing and processing are qualified labor-intensive procedures, contributing to the preservation of social fabric in rural zones.

1. Textile Exchange Linen Material Snapshot and Summary 21

Natural Latex & Recycled Springs 1

2

Latex

Recycled Springs

Sustainable Attributes

Sustainable Attributes

· Free of solvents

· 95% made of recycled metal2

· Natural, biodegradable ingredients

· N o radioactive materials are used in the

· Rubber trees produce for over 25 years absorbing carbon

making of this product

dioxide and helping to reduce greenhouse gases · Doesn’t off-gas

Latex

Recycled Springs

Functional Attributes

Functional Attributes

· Hypoallergenic

· Prevents movement transfer

· Graphite helps with moisture wicking

· 26% cooler than foam

· Exceptional durability and recovery · Breathable for a cooler sleep · Dust mite resistant · Made using an eco-friendly, water-based process 1. Talalay 2. Leggett & Platt

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Responsible Down

Sustainable Attributes1

Functional Attributes2

· Ducks and geese are protected at all times:

· Soft and compressible

freedom from hunger and thirst, from discomfort, from pain, injury or disease, to express normal behavior, and freedom from fear and distress · Live-plucking (and live-harvesting) of down or feathers is strictly prohibited

· D own is an insulating material that provides unique performance properties that cannot be replicated by any man-made material · D own has a higher warmth-to-weight ratio and is more compressible than synthetic insulation

· Force-feeding is strictly prohibited · Byproduct of the food industry · Prohibit the use of antibiotics and pesticides · Feathers are not dyed

1. Textile Exchange The Essentials of Responsible Down Standard 2. Textile Exchange Down Material Summary 23

A Peek Inside As the saying goes, “it takes a village.” Boll & Branch wouldn’t be the company it is without the hard work, dedication, and enthusiasm of our partners. Because of their help, we’re able to not only craft superior products, but also do so in a way that benefits our farmers, factory workers, and planet. Read on to learn more about their efforts.

Better for People

About the Factory We partner with a state-of-the-art manufacturing facility in the South of India that integrates weaving, sewing and finishing of high-end home textiles. We produce cotton woven fabrics and specialize in the cutting and sewing of home linens with various hem treatments and special finishes. We have about 336 employees in total. to establish a greater connection with the workers

The Importance of Becoming a Fair Trade factory

through a continuous improvement plan that benefits

We have always worked to be fair and provide the

the management and workers to proudly represent

best infrastructure facilities to our workers. What

a company that adheres to the highest social and

we love about Fair Trade is the support they offer

environment standards, stability and safe working

in coordinating premiums to the factory. They help

environments.

the working community at large. Having a Fair Trade Certified™ label also ensures confidence among

We see more smiling faces, loving hearts and eager hands to sew the linens of Boll & Branch.

Fair Trade Process Above all, the journey to be Fair Trade Certified™

empowering them to understand the benefits the

(about eight months) has been wonderful. The process

program gives to the industry. The employees have

started in November 2018 and we underwent massive

enjoyed every meeting and program that made them

operational and structural change and better defined

understand the importance of a long and healthy

our policies and standards. Our company

working life, and that there is life after work and a life

established committees involving active work

to cherish.

floor workers, engaging them in partnerships with management to explain the need of Fair Trade and 25

Better for the Planet

About the Cooperative We partner with a cooperative which aims to enhance the livelihood of farmers dependent on rain-fed agriculture by making their farming systems more profitable and sustainable. Currently, they have a

Odisha and Maharashtra (Vidarbha region), with more

membership of around 15,000 farmer members from

than 8,000 members fully organic and Fair Trade

the three rain-fed regions of North Telangana, South

Certified™ and the rest at various levels of conversion.

Companies need to strive to be fair and ethical in their business practices.

The Importance of Organic Farming Converting to organic farming, in the truest sense,

organic farming significantly reduces carbon and water

is beneficial in many ways, including but not limited

footprints. From a cotton and textiles perspective, “fast

to: improving and sustaining soil health, conserving

fashion� comes with discounted prices but quickly

soil moisture, lowering use of groundwater, adapting

ends up in landfills. Higher quality and traceable

to the vagaries of climate and associated stress,

organic and Fair Trade cotton products are better for

empowering women in agriculture, ensuring safe food

our planet.

and nutrition security, and reducing risks from farmers to consumers. Specifically, in regards to sustainability,

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Better for You

About the Manufacturing Process We partner with an independent company that acts as the main quality control and inspection arm for Boll & Branch’s supply chain. Everything starts with the fabric; we test for multiple factors including

production sample for each one of Boll & Branch’s

construction, weight, pilling, etc. to ensure each

specially-vetted factories, a pilot run, and several

lot is consistent with the original standard. Pacific

inspections to manufacture the highest quality

Wave goes through multiple steps, including a pre-

products possible.

Thoughtfully selected partners that care as much about quality as Boll & Branch does helps produce products of unparalleled craftsmanship.

Boll & Branch’s Standards

AQL Standard vs. Industry Standards

Boll & Branch insists on maintaining the very high

Using AQL 2.5 on a 10,000 piece lot, 200 units are

standard of Accepted Quality Levels, AQL 1.0 on all

audited and a shipment is considered failed if more

products. Most companies accept AQL 2.5 for their

than 10 defects are observed. Using AQL 1.0 on the

products, which is much lower. Though these AQL

same sample lot size, 5 defects or less are allowed.

standards are nearly unparalleled, the extra effort is

This pre-rejects many more issues on shipments

worth it to ensure a better product for the customers.

before any Boll & Branch product leaves the factory.

This compels suppliers to be extremely careful in their manufacturing processes, knowing that defects will be found if they do not meet these extremely high standards.

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Conclusion and Our Commitments While we are so proud of the work we’ve done to date, this is only the beginning. We are wholly committed to cleaning up the textiles and manufacturing processes and set a new standard for all future generations. We firmly stand behind our belief in better and will continue to focus our efforts on achieving our vision of a cleaner, safer, more efficient way of doing business.

In conclusion, we’re happy to share a few important commitments that we are focused on achieving in the year ahead.

Double our U.S. production We strongly recognize the need to encourage growth within U.S. factories, employment and increasing our finished good production at home. We will be doubling our domestic assembly in the year ahead and hope to grow that number moving forward.

At least 65% of our business will be from Fair Trade factories, doubling contributions to factory workers Treating people — the makers of our product, all employees, all people — fairly is a core tenant of our business and we are enthusiastically committed to working with Fair Trade to ensure that they have the necessary tools at their disposal to develop both their professional lives and their standard of living. Our goal is for at least 65% of the factories we work with to be certified, but we will strive to exceed that expectation. In doing so, we also commit to doubling contributions to factory workers to ensure that they have the necessary tools at their disposal to develop both their professional lives and their standard of living.

99% of our procurement of organic cotton will be Fair Trade certified As we expand our product line, we will also be expanding our sourcing practices to other regions of the world. As our business grows, we are committed to having 99% of our cotton to be procured from farms which are Fair Trade Certified.

Thank you for reading and please share any questions or feedback you may have for us at: feedback@bollandbranch.com.

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