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SUSTAINABILITY REPORT

2019


HOW THIS REPORT WA S P R E PA R E D

Covering the Eton Group 2019, this is Eton’s third Sustainability Report. It is inspired by the Global Reporting Initiative’s (GRI) Sustainability Reporting Standards of 2016.

TABLE OF CONTENTS

Words from our CEO

C H A P T E R 1 – E TO N ’S V I E W O N S U S TA I N A B I L I T Y Introduction About Eton

GOVERNANCE OF THE S U S TA I N A B I L I T Y W O R K

Etons Management Group is responsible for the overall sustainability direction, goals and strategies. A Sustainability Steering group, headed by the CEO, advices The Management Group. The Sustainability Coordinator coordinates with the different departments to help them develop and reach their goals. The Sustainability Coordinator reports to the Quality Manager, who is part of the Sustainability Steering group. The Quality Manager reports to the CPO at the Management Group level.

C O N TA C T For questions about this Sustainability Report, please contact us at CSR@etonshirts.com

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5 7

CHAPTER ONE: ETON’S VIEW ON SUSTAINABILITY 2019 Our vision: Sustainability is Quality Today’s Challenges Materiality Assessment, Stakeholders & Prioritised Areas Sustainable Development Goals

9 9 10 13 14

CHAPTER TWO: OUR TEAM Our Team Diversity and Equality Education and Training Eton Headquarters Information A Great Place to work Community Engagement

16 16 17 18 19 21 21

Chapter Two: Summary Identified Risks Actions

22 23 23

CHAPTER THREE: A CIRCULAR APPROACH A Circular Approach Start of Life: Material Quality – for the Future Innovation for Increased Sustainability Upcoming: Organic Cotton Materials Principles and Policies A Tight Supply Chain Shirt Production Chain Reaching the End Consumer Responsible Marketing – Communication & Product Labelling Supplier Compliance: Principles and Policies Transportation Product Use and End of Life Mapping of CO2E Impact in Scope 1 and 2

24 24 26 28 30 32 34 32 38 39 40 44 45 46

Chapter Three: Summary Identified Risks Risk Management, Ongoing and Planned

52 52 53

REPORT SUMMARY: GOALS GRI

54 59


WORDS FROM OUR CEO

DAVID THÖREWIK Last summer, when I had just taken on the role of CEO of Eton, I was invited to our production development unit in Gånghester to sew my own Eton shirt. What started off as a fun project, and a suitable start for the new CEO of a proud shirtmaker, turned into something of an education. It was a privilege to get to observe the skill, knowledge and dedication it takes to make an Eton shirt. In a very literal sense, I got an understanding of the investment in time and experience required to make a shirt. The hours I spent sewing, learning and listening to our fantastic seamstresses convinced me that a quality shirt is a piece of clothing intended for longevity. geographically near our HQ, aiming for close collaboration, frequent visits, careful vetting, and third party audits we are in a good position to contribute towards good working conditions beyond our own organization, something that is important to us. We are also proud of our high-quality products, designed for long-term use. Going forward, we believe that by helping our customers to properly care for their shirt, they can extend the lifetime of their favourites even further and lower their environmental impact from clothing by using existing shirts longer. Those are good starting points.

As we enter 2020 I believe that in order for Eton to be known for the best shirts in the world, we have to meet our customers’ needs without compromising on quality, or the ability of future generations to meet their needs. I believe that there is no given discrepancy between sustainability and profitability. In fact, I believe that those two will be linked going forward. As a short-term goal, we are promising our customers and future generations that all our cotton products will be made from 100% organic cotton by 2025, while never stopping our exploration of other new sustainable options. We are also putting one of our long-term goals into action by promising to reduce Eton’s CO2 footprint by 50% 2030 and aim to be climate neutral by 2050, in line with the Paris Agreement.

At the time of writing, we are all facing extraordinary challenges as a result of the Coronavirus (COVID-19). The pandemic has not left anyone unaffected. In all of this, Eton’s priority is the safety and wellbeing of our employees and customers. We are finding new ways of working, offering helping hands where needed and at the same time enabling smart solutions to enhance sales. As we are adapting to the new reality, it has become clear that sustainability will play an even more important role going forward. The pandemic is a tragedy and a major challenge; however, we believe it is also the beginning of our society finding new ways of producing and consuming, and we are determined to make the Eton shirt fit this new reality. We know the road ahead is long, but with continued collaboration, a high dose of empathy, and a sincere and humble understanding of the fact that we are guests of this earth, not masters, we will find a sustainable way forward for years to come, both as a fashion business as well as a company.

Reaching these goals will be challenging, but we believe in Eton: in our ability to think in new ways, develop and adopt solutions, some of which may not even have been created yet. We believe that with creativity and an innovative mindset we will reach our goals, taking one step at a time. We must be the change we would like to see. To that effect, we are starting within our own team and our company: revising and establishing the Eton values for a new generation — beginning with “One Eton: one company, one vision same goals — one planet: respect for its people is a given and a necessity for our business.” Everything we do should be based in what we believe in, internally yes but also to help us drive our development work, contributing positively to the world at large.

David Thörewik CEO, Eton

Within our supply chain, I feel strongly that with our working method, including making a point of choosing suppliers

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ETON’S BUSINESS IDEA

SUPERIOR PRODUCTS FOR ALL OCCASIONS IN LIFE, MADE WITH CONSIDERATION FOR PEOPLE AND THE PLANET, SOLD IN A PREMIUM TO LUXURY SEGMENT TO MEN STRIVING FOR EXCELLENCE.

ETON’S VISION STATEMENT

TO MAKE ETON KNOWN FOR THE BEST SHIRTS IN THE WORLD.

BRAND DNA

SUPERIOR QUALITY

STYLE

MODERN LUXURY

INNOVATION


INTRODUCTION In just over 90 years, Eton has gone from a company small enough to fit around a kitchen table, to a multi-national high-end men’s shirt and accessories brand, available in 50 countries around the world through wholesale and own retail, and on a nearglobal scale through own and eWholsale partner’s digital channels. With growth comes a bigger environmental impact. We know that business activities have an environmental and social impact, and that the fashion industry as a whole faces specific sustainability challenges. We also acknowledge that this is a critical point in time to take on those challenges, referencing the goals set in the Paris agreement within the United Nations Framework Convention on Climate Change (UNFCCC)

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INTRODUCTION

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ABOUT ETON

ABOUT ETON

COMPANY DETAILS

Eton products are available through wholesale and own retail in over 50 countries in Europe, North America, Russia, the Arab World and Asia as well e-Wholesale, and own digital retail, with near worldwide reach. Channels served are clothing retailers including premium department stores and eWholesale platforms as well as direct to cosumer, with end-users being primarily male.

OFFICES Gånghester (HQ) Alpharetta Cantu London New York Stockholm

SHOWROOMS Amsterdam Dusseldorf Köpenhamn London

New York Stockholm Toronto

OFF THE SHELF AND CUSTOM MADE

ETON GROUP IN SHORT 2019

Eton offers shirts and accessories off the shelf. In addition we also sell Custom made shirts. Uncompromising production quality focus, four key areas: • Inhouse design • Development of quality fabrics

SUPPLY CHAIN

• Unique finishing

The Eton supply chain is located in or close to Europe which enables us to actively manage the entire chain, ensuring high quality, short lead times, efficient logistics procedures and compliance with all rules and regulations. Excepting one small production unit at our HQ we do not own any factories. Assemby units are mainly located in Romania, Lithuania and Macedonia, weaving mills in Italy, Switzerland, Egypt and Turkey and the finishing is carried out in Italy, Switzerland, Germany and Turkey.

• Craftmanship in the assembly process Product range: Shirts and Accessories. Gross revenue Eton AB: €95.000.000 For further details, see annual report. Please request from csr@etonshirts.com Main owner: EQT

RETAIL PARTNERS In addition to store interiors for brick and mortar stores, we offer product information and marketing in line with Eton’s Responsible Marketing,Communication & Labelling Aims (see page 39) NUMBER OF MANUFACTURED PRODUCTS 2019 Shirts

97.7%

Accessories

2.3%

Total

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1 179 626 271 775 1 451 401


CHAPTER ONE

SUSTAINABILITY VISION STATEMENT

OUR PURPOSE IS TO SET CLEAR GOALS. WHEN WE CANNOT SET GOALS, WE AIM TO DEFINE AMBITIONS. … AND GET STARTED.

SUSTAINABILITY GOALS

PRODUCTION & PEOPLE

CLIMATE

TRANSPARENCY

A circular approach, with consideration for planet and people from beginning to end.

Taking action for our customers, the future — and our business.

Engage, inform and collaborate with customers and stakeholders.

• On demand production • 100% organic cotton by 2025 • 100% certified sustainable fibers class A and B according to the Made By standard in all shirts and accessories by 2030

• A science-based target in line with Stica recommendations: reduce emissions by 50% by 2030 • Climate neutral by 2050

• Aim for GOTS certification • Longevity and FPU (footprint per use)

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• Public sustainability report • Aim for a public supply chain, countries and rating • Structured dialogue with interested parties to create authentic actions


ETON’S VIEW ON SUSTAINABILITY 2019

OUR VISION: SUSTAINABILITY IS QUALITY Today’s world, and today’s customers, place new demands on the definition of the word quality. It goes beyond the actual product. It includes as sustainable production as is possible, and responsible practices throughout a garment’s lifecycle, including consideration for the people who make the shirt, as well as for the people who buy it.

THE PEOPLE BEHIND ETON

In 2019, we took steps towards expanded measurements, clear, measurable goals in line with science and focused, strategic work in the sustainability area, and took steps towards a 360 approach to climate impact in our business model.

PRODUCTION CHAIN

We also saw a level of commitment and advocacy among our customers and staff that inspired us. In addition, we recognize that Eton as a company and brand has specific opportunities to make a difference. Our close-knit production chain is one. Our obsession with and earned skill in quality, longevity, fabric innovation and the timeless aspects of our product, is another. A third and final one is our customers, with their unusually high commitment level to quality.

PRODUCT QUALITY

THE PEOPLE WHO WEARS OUR SHIRT

While the challenges are great, we have a business model that allows us to take action in a positive way.

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CHAPTER ONE

TODAY’S CHALLENGES One key challenge is to identify the areas that contribute the most to a negative footprint, and identify the changes can have the biggest impact. For example, the steps in the production phase (from yarn production to finished garment) stand for a significant share of a garment’s climate impact. Another challenge— and possibility— is to look at the same problem from another angle: identify areas in which we have the opportunity to have big, or immediate impact. For example, using our know how to have a positive impact in the user-phase.

A sustainable view on the environmental impact we have is and must be circular. As we have identified in our Sustainability goals, the raw material we use is and must be an important area for us as a fashion company. Based on the best information we have today, and the options open to us, we have for example set a goal to completely transition to organic cotton in this, our biggest raw material group. However, the environmental footprint of each product comes, from every aspect of its lifecycle: starting with fibers, production in all different steps, including but not limited to transportation, retail ending with end-of-life treatment.

In this work, we are aware that new options are developed every day, and that the options available to us today may or may not be perfect. Our standpoint is to act in the best possible way we can now, and continue to be innovative and find the best possible way to achieve our set goals going forward.

All energy usage, emissions and other negative impact counts: from the office, to actual production. Greenhouse gas emissions from business activities drive climate change. Eton is mapping its carbon footprint and aims to take actions to reduce its climate impact. In addition, “people” is a key consideration throughout: our staff, the people who contribute to producing our shirts, and the way we influence the men who buy and wear our shirts.

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ETON’S VIEW ON SUSTAINABILITY 2019

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CHAPTER ONE KEY STAKEHOLDERS

OWNER Eton’s main owner since 2016, EQT, has clear requirements when it comes to CSR practises. “Genuine management of environmental, social and corporate governance (ESG) factors is fundamental to business success and strong investment performance.” EQT’s expectations on portfolio companies are outlined in the EQT RI&O Policy, which is aligned with key international conventions and standards, including the Ten Principles of the United Nations Global Compact. Sustainability expectations are also articulated in the EQT Sustainability Blueprint, expressed in a set of KPIs which portfolio companies are reporting on annually. EQT assesses each portfolio company’s maturity against these expectations to track their journey and performance over the ownership period. https://www.eqtgroup.com/globalassets/ responsible-investment/eqt-responsible-investment-and-ownership-policy-190712.pdf CONSUMERS As a consumer-facing company, it is important for us to live up to and listen to our customers’ expectations, whether they are partnering wholesale customers or end-consumers, when it comes to safe and sustainable products, safe and sustainable production and further actions for a successful future. EMPLOYEES We engage with our employees every day. In addition, our biannual anonymous employee satisfaction/engagement survey provides us with formal feedback regarding working conditions at Eton. AUTHORITIES To always be up to date on rules and regulations, Eton participates in a “textile dialogue” with relevant Swedish government authorities such as the Environmental Protection Agency and the Swedish Chemicals Agency. INDUSTRY Eton is a member of the textile trade organisation TEKO, which allows us to exchange information and best practice when it comes to sustainability. NON-PROFIT ORGANISATIONS Eton is also a member of action learning network STICA, The Swedish Textiles Initiative for Climate Action (STICA) and an industrial partner of Mistra Future Fashion, a cross-disciplinary research program focused on improving the environmental performance of the Swedish fashion industry.

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ETON’S VIEW ON SUSTAINABILITY 2019

MATERIALITY ASSESSMENT, STAKEHOLDERS & PRIORITISED AREAS At regular intervals we engage in a dialogue with our stakeholders in different forms to understand their expectations on Eton as a responsible company. With support from sustainability consultancy firm Futerra, Eton has conducted interviews with internal key stakeholders representing the Management Group and Eton’s different departments, as well as external stakeholders. The results of these interviews on behalf of Eton and conclusions are shown in the materiality matrix below.

MATERIALITY MATRIX

HIGH

Key focus areas based on our stakeholder’s input is presented in the below materiality matrix model. The blue boxes represent our most prioritised areas. In addition to these on-going stakeholder conversations, we

are planning an organised forum for all Eton stakeholders to raise specific issues, after which the Materiality Matrix will be updated.

• Water depletion in supply chain

• Fair labour conditions & human rights in supply chain

• Chemical & pollution in supply chain

• Sustainable product development, production and products

I N F L U E N C E O N S TA K E H O L D E R S

• Animal welfare in supply chain

• Working condition in own operations

• Product safety

• Attracting and retaining employees • Transparency & sustainable market position

• Circular and resource efficient product life circle & climate foot print

• Anti-corruption

LO W

• Sustainable packaging materials

LOW

S I G N I F I C A N C E O F E C O N O M I C , E N V I R O N M E N TA L & S O C I A L I M P A C T

HIGH


CHAPTER ONE

SUSTAINABLE DEVELOPMENT GOALS At a United Nations summit in September 2015, world leaders agreed to adopt 17 Sustainable Development Goals (SDGs). Until 2030, countries will mobilise efforts to end all forms of poverty, fight inequality and tackle climate change. All stakeholders, including governments, civil society, and the private sector, are expected to contribute to the realization of the goals. At Eton, we know that as a part of the private sector, those expectations should and do apply to us. Read more about Eton’s efforts to contribute to reaching the Sustainable Development Goals on the following pages.

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ETON’S VIEW ON SUSTAINABILITY 2019

As a garment maker, we have defined Goals 6, 8, 12 and 13 as the focus areas most relevant to our business and the impact we have. SDG 6: Ensure access to clean water and sanitation for all. We are working to find complements that reduce our reliance on cotton as well as striving to adapt more resource efficient production methods, in order to reduce water intensity and water depletion.

SDG 12: Ensure sustainable consumption and production patterns. Eton strives to be the undisputed leading premium shirtmaker in the world, with an uncompromising quality focus in every step of the product development process and throughout production. Our timeless product, quality fabrics and sewing craftsmanship ensures a premium, long-lasting product.

SDG 8: Promote inclusive and sustainable economic growth, employment and decent work for all. Eton is committed to ensuring fair labour conditions and respect for human rights throughout our supply chain, as well as great working conditions for everyone in our own operations.

SDG 13: Take urgent action to combat climate change and its impact. Greenhouse gas emissions from human activites are driving climate change, and continue to rise. Eton is in the process of mapping its climate footprint and working to plan and take action to reduce its climate impact.


CHAPTER TWO

OUR PRIORITIES

LABOUR CONDITIONS Good labor conditions throughout our operations are of key importance. Eton complies with all applicable labor and employment laws wherever we operate and adhere to collective bargaining. WORK ENVIRONMENT COUNCIL Eton HQ has a work environment council that convenes at regular intervals (at a minimum quarterly), to discuss working conditions, health and safety issues etc. Minutes are kept, and actions planned or taken are documented. SUSTAINABILITY STEERING GROUP In 2019 we also established a Sustainability Steering Group and a new position, Sustainability Coordinator 50%, and created a Sustainability Vision stating focus areas, goals in line with the Paris agreement and action points and aims we believe will help us take a step in that direction. OCCUPATIONAL HEALTH CARE AND PSYCHOLOGIST Eton collaborates with external occupational health care service providers. Eton employees are entitled to consultancy and support when needed, as well as rehab and restorative health services for workrelated problems.

OUR TEAM At Eton, we strive to maintain and develop a positive company culture that allows all employees the prerequisites to do their work, and enjoy doing so.

POLICIES

Our actions are guided by our company values as well as formal guidelines and policies, including our: – Code of Conduct – Code of Ethics – Workplace Guidelines – Diversity and Equality Policy

Health and safety are priorities. We want to maintain pleasant, sustainable, and above all safe working environments throughout our operations. We always comply with rules and regulations for safety in the workplace and take preventative measures to engage health professionals if needed.

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Eton respects the personal integrity, privacy and rights of its employees. We also believe in working actively to secure an organization based on equality and diversity, free from discrimination and harassment. A digital onboarding tool ensures that all new employees read and sign relevant policies.


OUR TEAM

HONESTY, INTEGRITY AND FAIR PLAY

As well as requiring all employees to sign the Eton Code of Conduct, all agreements of importance that concerns manufacturing or production in any way (from core product to packaging), also have the Eton’s Code of Conduct attached. In addition, we have policies concerning Anti-corruption and Anti-bribery. We also make risk assessments in our various operations, specifically for employees in business and purchasing positions in countries that are considered at high-risk for corruption. During 2019, there were no confirmed incidents of corruption within any of Eton’s operations.

DIVERSITY AND EQUALITY We believe in an organisation based on equality and diversity. Eton respects the personal integrity, privacy and personal rights of every employee and is committed to maintaining a workplace free from discrimination and harassment.

ETON’S CURRENT GENDER DIVERSITY STATUS Eton actively tries to strive towards gender diversity in the workplace. Pay gaps between the genders are investigated yearly and, if applicable, mitigated by applying Mercer-grading in the yearly revision of renumeration.

We are constantly reviewing our need for new relevant guidelines and policies and implemented a Diversity and Equality Policy during 2018.

GENDER PARITY

In 2019, a training to prevent sexual harassment was rolled out to all Eton sales advisors in the following stores: Eton Kastrup, Madison, Woodbury, Desert Hills, Atlanta, New York.

female male

EMPLOYEES IN TOTAL

52%

MANAGEMENT FULL TIME EMPLOYEES PART TIME EMPLOYEES*

48% 22 %

78 % 53%

47 %

49%

51%

*Part time employees mainly consist of seasonal staff (warehouse) and weekend staff (stores)

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Going forward, we aim to define a roll-out plan for employees to receive training on preventing sexual harassment, in order to ensure a healthy and safe working environment.


CHAPTER TWO

EDUCATION AND TRAINING Eton believes that the most important competence development happens “on-the job”. All Eton managers are required to provide yearly dialogue reviews as well as ongoing feedback to their employees, and required on-the-job training and coaching to ensure improvement and development.

Eton education initiatives that took place during 2019:

SITUATIONAL LEADERSHIP EDUCATION

Situational leadership is an adaptive leadership style, encouraging managers to choose the leadership style that best fits their co-worker’s personality, goals and circumstances to develop people and work groups. During 2019 16 new Eton leaders receieved the training, and 20 took a shorter brush-up course to reinforce their knowledge of the method.

EUROPEAN SOCIAL FUND – DIGIRESAN

Staff located in Gånghester had the opportunity to take part in education sponsored by the European Social Fund during 2019. The project aimed to strengthen the skills of manufacturing companies and its co-workers in the western parts of Sweden. In total 30 co-workers participated in14 different courses such as Excel, Photshop, InDesign, leadership and communication, presentation technique, etc.

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OUR TEAM

ETON HEADQUARTERS INFORMATION A Safety Representative for Eton HQ has been appointed by the primary union, Unionen, in collaboration with Eton. This representative not only advocates for and collaborates with the employer in work environment issues, they also monitor that the physical and psychosocial environment is in line with legal demands. Both employer and safety representative has participated in BAM, a course on legal requirements and practical ways of working for a good work environment.

RISK ASSESSMENTS

During 2019, Eton AB underwent a reorganization. As a part of this, a notice to terminate six positions (within sales support and the inhouse sewing facilities) was handed over to Arbetsförmedlingen, the Swedish labor office. In total, however, 14 positions within eight departments were affected by the reorganization (Sewing facilities, Sales support, Retail, eCom, Quality, Strategy and business transformation, ERC and Wholesale). Two of the affected employees were offered and accepted other positions (comparable or non-comparable) within the company. Another two handed in their notice before termination. Nine employees were dismissed by reasons of redundancy and one temporary position was terminated. Three of these (from the inhouse sewing facility) were part of the original notice of termination process. The reorganization was done in negotiation with the unions involved, with the local Safety Representative giving input to secure the impact on remaining employees within the organization (valid for HQ, main warehouse and the Stockholm office only). This was done through risk assessments and safety inspections, including one HQ-wide digital safety inspection focusing on psychosocial health. All HQ employees were informed throughout the process.

POSITIVE RESULTS 14 questions in the following areas received an 80% or higher score (positive) in the following areas: – Colleagues and collaboration – Workload and ability to affect and plan workload – Awareness of mandate and responsibilities, ability to live up to expectations – Threats and violence 1 question received a 75% score: Feeling positive at the start of a workday

CHALLENGES 6 questions in the following areas received a lower, or diverse result (with results differing from department to department): – Repetitive tasks – Coping with workload within work hours – Clear team goals and tasks – Work affecting recuperation time – Open climate

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CHAPTER TWO

UPPEN – TRIVSELGR ESS YEE WELLN FOR EMPLO welled to focus on d ee n n to E ar when rganization 2019 was a ye g. With a reo in ic jo re r fo e and s ject both have com es being and sub gu ea ll co f o s ere a lot the individual at th re and a year wh su e ak gether as the need to m gone, we felt ity to come to n u rt o p p o e given th of Eton were . one once more onsored by group that, sp ry ta n lu vo a is joy at ose to spread Trivselgruppen rp u p n ai m s has as it the year. the company, ts throughout en ev l al sm n go Eton, focusin ! ar we have had ye And what a

ETON CUP The year’s biggest sport event at Eton, a floorball tournament open to all who wished to participate. SUMMER PARTY/GRAND OPENING OF AUTOSTORE

Best, Trivselgr uppen

In August we held a kickoff-dinner for the autumn with food and games, as well as hosted the grand, official opening of our new Autostore solution for the Warehouse.

A GREAT PLACE TO WORK

ETON HOLIDAY MONTH

We want to ensure that Eton is a great place to work, and that our employees are happy, motivated and see opportunities for growth. All Eton employees participate in a yearly dialogue review with their manager as well as have a separate salary discussion, resulting in key personal assignments for the year with measurable goals, as well as a serve to gauge the employee’s motivation level and ability to successfully complete assigned tasks. In addition, it is our set method that all employees participate in a biannual employee satisfaction survey, ”Great Place to Work”, which in 2018 resulted in a 67% score for Eton as a whole. As a result of the COVID-19 pandemic, we have recently decided to postpone our planned biannual survey to 2021. Instead, we will launch a special COVID-oriented Great Place to Work survey in 2020, to help target the issues that define these unprecedented times. Together, the dialogue review, salary discussions and Great Place to Work survey form the foundation of our short and long term efforts to ensure individual development and secure competence needs for the organisation as a whole. 20

Trivselgruppen got the honor of spreading joy and Christmas feeling for all! We planned a whole month of different events for all employees at Eton, where we encouraged our offices outside of Gånghester, Sweden to tag along as well as they could. We had a barista in place for a day, we had a kind note to a colleague-day, we tied wreaths, we had a masseuse visiting, Secret Santa, lunch walk with quiz, Lucia celebration with song and fika, Ugly Christmas Sweater Day and a Holiday breakfast, to name a few of the events. In summary; we spread joy with everything we had! Some of our smaller events included highlighting breast cancer awareness month with information flyers, serving cinnamon buns, decorating the lunch area for Halloween and encouraging our colleagues to spread kind words and appreciation of each other on Valentine’s Day.


OUR TEAM

COMMUNITY ENGAGEMENT At Eton, we have a strong relationship with, and a deep respect for the place in which our company has grown and been a part of life for generations. We proudly sponsor local initiatives and sports clubs, to promote health and meaningful spare time for children and young people, as well as add to the culture and quality of life in Gånghester village, and Borås. We also have sponsorship programmes at the Textile Fashion Center in Borås, and collaborate with students and educators. Eton is a member of Teko, E-commerce City Borås, Marketplace Borås, as well as a member of the board of Proteko/NordicTextile Academy.

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CHAPTER TWO

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SUMMARY

IDENTIFIED RISKS During 2019, Eton AB underwent a reorganization, which had the effect that 14 positions within eight departments were cut. Two of the affected employees accepted other positions, another two handed in their notice, one had a temporary position that was cut and the remaining nine were dismissed by reasons of redundancy. General risks for the organization at large were psychosocial stress and potential workload imbalance for remaining employees.

Lack of gender parity on management level and diversity in decision-making departments, with a relatively homogenous HQ staff in general. Increasing from14% female managers to 22 % is a positive step, but we are not yet at a point where risks are negated, fex. negative effects within primarily HR issues (recruitment, promotion etc) and the risk for bias in decision-making. In addition, we know that we risk not contributing to for example closing the Economic Participation and Opportunity gender gap globally (currently at 58% according to the Global Gender Gap Report for 2019 from the World Economic Forum: http://www3.weforum. org/docs/WEF_GGGR_2020.pdf ) The challenge of growth and gloablisation: growing pains notably resulted in lessened employee retention in specific parts of the company, not closely linked to HQ. Although the remaining technical issues mentioned in the 2018 report are now solved, the launch of new technology naturally resulted in new ways of working especially in the Swedish warehouse where an outomated system was installed, resulting in potental stress.

ACTIONS Continuous dialogue, complemented by formalized annual dialogue reviews, with all co-workers. Safety Representative conducted risk assessments and safety inspection, including to secure the impact of the reorganization on remaining employees. Open door policy for top management. HR team. Recurring meetings. “Trivselgrupp”, a co-worker group for morale boosting activities. Occupational health care provided. Operational excellence a strategic focus, with communication and teamwork encouraged globally. Revision of company values instigated to promote effective ways of working and a positive work climate. Gender pay gaps at office level audited yearly, and action taken with Mercer grading in yearly revision. At the time of writing this report, it is very clear that the COVID 19 pandemic is a major identified risk for 2020, and that in addition to serious health, financial and psychosocial concerns it may also affect already planned actions such as this.

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CHAPTER THREE

A CIRCULAR APPROACH The footprint of a product starts with but is not limited to the fiber with which it is made. It truly is a circle: from fiber, to processing and production (spinning, dyeing, weaving and wet-processing) and sewing, packing, transporting, selling process, facilities and travel to end-consumer use and end of life. Eton is aware of this, and is in the process of mapping and understanding where and how to target and improve its footprint. While every little bit makes a difference, the more strategic the choice the greater the impact, based on our unique possibilities for improvement at a given point and the impact of our product. However, we firmly believe in setting goals and aims — not just in the areas where we have a mapped up plan, but in the areas where we aim to set one.

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A CIRCULAR APPROACH

SUSTAINABLE DESIGN PRINCIPLES Sustainable design means creating long-lasting products in a way that minimises negative environmental and social impact. We know that product design, material, colour, prints and trims — all decisions made in the design phase — represent opportunities that allow for environmental improvements throughout the entire value chain. LONG LASTING QUALITY

DESIGN AND CIRCULARITY Sustainable design principles/product development criteria to be considered during product development:

1

Long-lasting design and style

2

Long lasting quality

3

Fit and comfort that encourages use

4

Our entire assortment consists of men’s shirts and accessories, such as ties, pocket squares and bow ties, traditional types of garments that have and will remain in use regardless of the quickly changing trend cycles of fast fashion.

Increased use of sustainable materials – Introducing lower impact fibres such as Tencel™ and linen – Organic Cotton

5

Care instructions to prolong garment life

TREND-INDEPENDENT DESIGN

6

Enable product recycling/recyclability and reuse

7

Minimise the use of resources in production and user phase – Energy – Chemicals – Water

8

Minimise production of waste as much as possible, f.ex. fabric waste

9

Minimise emissions (CO2)

Today, we only work with the very best suppliers. Our primary raw material is the highest quality cotton available – spun, woven and finished in the best way possible. Finding materials that are more sustainable yet retain a comparable quality and price level is challenging but we will always do our utmost to secure the best quality materials with the lowest environmental impact, as well as attempt to find new alternatives. TRADITIONAL PRODUCTS

Our main design principle is to not design based on trends, but based on either insight into our customer’s preferences (for classic, formal or business wear) or trend-independent design ideas — for example, our Creative Director has cited a country, such as Japan, an idea of mosaic and tiles, or a book as his sources of inspiration. The result means that an Eton shirt is not sold to fit a trend, but a personal expression. This leads to a potential long life in an end consumers wardrobe and style, regardless of changing trends.

10 Transparent supply chains 11 Respect for people and compliance with the Code of Conduct 12 Respect for animal welfare Black represents actions in process today. Grey represents potential for a reduced environmental footprint.


CHAPTER THREE

START OF LIFE: MATERIAL QUALITY — FOR THE FUTURE Cotton (ELS) is the most important source of raw material for Eton shirts by far. In 2019, our annual consumption was approximately 2 16,4 tons, compared to 903 tons in 2018, and 718 tons in 2017. For 2019, that means that out of Eton’s total production, 94% of the fabric was made with conventionally grown cotton only, while the more sustainable materials presented below stood for a combined 6% — of which 2% is classified, i.e. pure Tencel, 2% is linen and an additional 2% is the conventionally grown cotton used in our cotton-Tencel blend. The majority of our cotton was high quality Extra Long Staple cotton sourced from US and Egypt, with a smaller percentage, mainly used for accessories, coming from other places such as China. Extra Long Staple is considered among the highest quality cotton fibres in the world. It represents less than 2% of the global, annual

cotton harvest and is only grown in select areas with the right pre-requisites. From a sustainability perspective conventionally grown cotton is complex. The fibre itself is a natural cellulose fibre, a renewable and biodegradeable resource. The extra-long or ELS fibres in particular make for high quality, strong, durable fabrics and are indeed the main reason we can make shirts with a long life span. However, conventional cotton production includes a level of water use and intense agrochemical use that has a significant, negative environmental effect, causing soil and water pollution and affecting access to water, eco systems and biodiversity. In addition, social conditions and health of workers must be taken into account.

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A CIRCULAR APPROACH

Finding alternatives that lessen the environmental impact of mainstream cotton cultivation, while retaining the quality and longevity of our shirts is a main concern for Eton going forward. We are beginning to explore and test premium options that are more sustainable and, we hope, able to complement and replace our main source of raw material. During 2019 the materials we have focused on Tencel™, after receiving a positive response from our customers, as well as products in linen and cotton-linen. We also took the step to decide to start shifting to organic cotton in our collections.

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CHAPTER THREE

INNOVATION – FOR INCREASED SUSTAINABILITY To Eton, quality is not a nice to have, it’s a must. And even if everything we do in the production chain is geared towards quality and longevity, the key defining factor is always the raw material. It starts with fiber. Today, we use mainly conventionally grown cotton. But we are taking steps to ensure a significant reduction in environmental impact in the growth phase within shortly. In addition, Eton has built a skilled quality department over the course of many decades, and, with the joint forces of a Head of Fabrics and a Sustainability Coordinator we are testing new, more sustainable alternatives, specifically by exploring materials with a lower environmental footprint in their growth phase and an equally strong possibility for quality and long life.

Tencel™ lyocell Like cotton, Lyocell is a renewable, biodegradeable material. It is made from natural cellulose. Eton uses only lyocell from the Lenzing Group, i.e. Tencel™ — an more sustainable material, derived from sustainably sourced wood, harvested from certified and controlled sources and produced in an environmentally responsible closed loop production process, recycling water and reusing the solvent at a recover rate of 99%.

Linen Flax, a.k.a. linen, is a natrual fibre used in the Eton Spring Summer collections. As a bast fibre from the flax plant, flax is a renewable, biodegradeable material. It is easy to grow, strong and durable, and makes for an equally strong and durable fabric with a longer life span. Even conventionally produced, flax requires less fertilizers and far less water that conventionally grown cotton.

This is an environmentally important material but not as strong and therefore durable as for example cotton. In itself, we do not consider lyocell suitable, but to increase longevity and quality, Eton developed its own premium ELS cotton and Tencel™ blend fabric in 2018, with varying proportions of cotton versus lyocell. Proportion of lyocell may be above or below 30%. The first shirts were presented to customers beginning of 2019.

In menswear, linen is predominately sought after for summer and holiday wear, due as much to tradition as to the material’s cooling and moisture absorbent characteristics — and its natural tendency to crease. To overcome customer hesitancy and make for a wider use, we developed cotton-linen blends with Eton’s Signature Finish, a crease resistant attribute. We are still testing the reception of these, with one test coming out summer 2020.

www.lenzing.com/en/sustainability/ During 2019 4,3% of the fabric we produced was with this cotton/lyocell blend fabric, and we will continue the development. Initial response from customers have been good.

Note: the response to hemp was less positive when tested, and the fiber is no longer in use at Eton.

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A CIRCULAR APPROACH

Wool For certain overshirts, ties, pocket squares and men’s scarves, Eton uses high-quality regular sheep’s wool, virgin wool and merino wool, as well as cashmere wool from goats. From a sustainability perspective, wool is another complex material: on the one hand it is a natural fibre from animal hair, a renewable, biodegradeable material. On the other hand, the sheep industry, like the meat and dairy industry, produces greenhouse gases at high levels. Sheep are ruminants, meaning that they inviably belch, producing nitrate at a level which, turned into its CO2 equivalent, is very high.

Silk Another key raw material in our accessories collection, and a key supporting or additional material in our shirt collection; animal fibre silk is a natural, renewable, biodegradeable material, produced by the silk worm. From a sustainability perspective, mulberry trees, the sole source of food for the silk worm, are hardy and easy to grow in the right conditions, meaning less need for chemicals and water, and the food industry often makes use of the pupae, meaning reduced waste. In conventional silk production the silk worm is killed so that the silk cocoon can be harvested with the silk yarn unbroken. Eton uses conventionally grown silk from China. All our sourcing follows our Animal Right’s Policy, meaning good animal husbandry throughout the production (See page 33)

As with all our products, our processes, collaborations, quality control and trend independent design ensures high quality — from a sustainability perspective, ensuring and a long possible life span means creating the potential for a lower footprint per use.

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CHAPTER THREE

UPCOMING: ORGANIC COTTON Our goal: 100% organic cotton by 2025. At this stage, cotton is a necessity for our business and our product. Because of the quantities involved and the high environmental impact of conventionally grown cotton in the growth phase, we are absolutely certain as a company that we need to make the best choice possible, from a sustainability standpoint.

ORGANIC EQUALS

• Grown without toxic chemicals • 91% less water use through water management • Effective management of soil fertility • Increased bio-diversity • ILO labor standards that ensure social standards for workers • No GMO seeds (genetically modified organisms) • Certified and controlled • Same quality level https://textileexchange.org/organic-cotton-round-table/

Naturally, just like conventionally grown cotton, organic cotton fibres in themselves are natural cellulose fibers, a renewable and biodegradeable resource. However, unlike conventionally grown cotton, organic cotton is produced according to to organic agricultural standards and is certified as such. The effect is stunning: compared to conventional cotton, organic cotton has 46% less impact on global warming. https://textileexchange.org/organic-cotton-round-table/ While organic farming was once a pioneering field, today, organic cotton has reached a quality and quantity levels comparable to the high-quality cotton in ELS and LS Eton uses today. For the consumer, the experience of the product will be the same — with the benefit of knowing that choosing a shirt in organic cotton, rather than one in conventional cotton, really makes a difference. We are happy to say that, as a key step towards reaching our goal to reduce our emissions with 30% by 2050 (in line with the Paris Agreement) in 2019, we decided to start transitioning into using organic cotton, with the end goal of using only organic to cover our cotton needs for shirts and accessories by 2025. While at the same time being open to other future alternatives, we are excited and proud to be one of the first established high-end shirtmakers to take this step.

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A CIRCULAR APPROACH

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CHAPTER THREE

MATERIALS: PRINCIPLES AND POLICIES More sustainable alternatives, suitable for shirt production:

Classifying more sustainable alternatives When classifying alternatives to conventionally grown cotton, Eton follows industry praxis, and specifically follows the recommendations made in the following report:

• Organic cotton • Tencel™ • Linen, conventionally grown and organic

ENVIRONMENTAL BENCHMARK FOR FIBRES. Report by MADE-BY, Version 2.1, December 2013. nn

C L ASS A

C L ASS B

C L ASS C

C L ASS D

C L ASS E

UNCLASSIFIED

Mechanically Recycled Nylon

Mechanically Recycled Nylon

Conventional Flax (Linen)

Modal® (Lenzing Viscose Product)

Bamboo Viscose

Acetate

Mechanically Recycled Polyester

Conventional Hemp

Poly-acrylic

Conventional Cotton

Alpaca Wool

Mechanically Recycled Polyester

Virgin Polyester

Generic Viscose

Organic Flax (Linen)

CRAILAR™ Flax

Cashmere

PLA

Leather Rayon

In Conversion Cotton

Ramie

Mohair Wool

Organic Hemp

Spandex (Elastane)

Recycled Cotton

Monocel® (Bamboo Lyocell Product)

Virgin Nylon

Recycled Wool

Organic Cotton

Wool

Natural Bamboo Organic Wool Silk

TENCEL® (Lenzing Lyocell Product)

More Sustainable

Less Sustainable

© Copyright MADE-BY Label UK Ltd. MADE-BY Benchmarks cannot be printed, circulated or copied without the accompanied MADE-BY logo and website. This Benchmark was made in cooperation with Brown and Wilmanns Environmental, LLC. For further information on this Benchmark see www.made-by.org/benchmarks

In the MADE-BY report fibres are evaluated according to their impact in six areas: greenhouse gas emissions, human toxicity, eco-toxicity, energy input, water input and land use.

MADE-BY was a not-for-profit organisation with a mission to ”make sustainable fashion common practice”. As of October 2018, the organisation is in administration due to financial reasons, but prior to that it worked with over 100 brands and retailers.

32

Black represents materials we use today.


A CIRCULAR APPROACH

ANIMAL RIGHTS

At Eton, we support animal rights and work to ensure that the rights of animals are respected in all our production processes throughout the entire value chain. We are continuously working to secure our supply of raw materials from an animal welfare perspective, through tough supplier requirements and full traceability. We require our suppliers to maintain good animal husbandry and meet our strict animal welfare requirements. Eton does not accept mulesing, a procedure performed on merino sheep to prevent fly strike. Neither do we tolerate plucking, shaving or picking wool or fur from live animals in a way that harms the animal or causes suffering in any way. We never endorse the use of any materials from vulnerable or endangered species.

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CHAPTER THREE

A TIGHT SUPPLY CHAIN While we do not own any production facilities apart from our inhouse assembly unit at Eton HQ in Gånghester, our way of working today includes relationships with select qualified specialist partners located in Europe Egypt and Turkey, i.e. geographically close to the Eton team.

Way of working Our aim is always the best quality product, with longevity as a result. To do that, we carefully select a small number of suppliers to collaborate with, in a way that ensures close contact, and multiple visits a year (in some cases even weekly). All our partners have to Sign our General Agreement and Code of Conduct to ensure compliance with environmental regulations, health and safety regulations, fair working conditions and

fair pay as well as freedom of association. In addition, we carefully review potential suppliers’ environmental and social ways of working and ask to review any certifications. We routinely visit potential suppliers to ensure we, in addition to certifications etcetera, have a chance to form our own opinion. Our process also includes cross-departmental discussions and decision-making to ensure all perspectives are covered, as well as if needed references from other clients. Once a supplier is deemed suit-

It is important to us that our customers can feel safe in the knowledge that our products are safe and follow chemical laws and other product applicable regulations All production follows EU regulation, REACH, and in addition The Textile Importers Chemical Guide (Textil-importörernas kemikalieguide). In addition, all Eton fabrics fulfil OEKO-TEX® 100, a standard for limiting dangerous substances in textiles such as harmful chemicals, including legally banned and controlled substances, chemicals known to be harmful to human health but not yet legally restricted and other parameters for health protection.

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able, we test the quality of their work, ensuring the quality and longevity of our product. However, third party audits are crucial for compliance and control. As is a close working relationship where we, together with existing suppliers, develop our collaboration and review developments in environmental and social issues.


6

Assembly units: Romania, Lithuania, North Macedonia and Sweden

8

Accessories Suppliers: England, Scotland, Italy

11

Fabric Mills: Italy, Switzerland, Egypt, Turkey

4

Finishing Providers: Switzerland, Germany, Turkey and Italy

A CIRCULAR APPROACH

At our end, contact areas include our design team, located in Stockholm, Sweden and Como, Italy, our Head of Fabrics, located in Milan, Italy and a team of buyers, production and logistics, quality and compliance controllers, including a CSR coordinator located at our headquarters in Gånghester.

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CHAPTER THREE

SHIRT PRODUCTION CHAIN FABRIC SUPPLIERS: WEAVING MILLS

Unlike the garment-making industry as a whole Eton focuses on developing most of its own fabrics for its shirt range. This means that rather than buying fabrics directly, we collaborate with weaving mills, mainly located in Italy and Switzerland, to actively choose weaving techniques and influence a fabric’s quality and longevity, as much as its aesthetic value. All weavers are certified to OEKO-TEX® Standard 100. For more information, see www.oeko-tex.com

FABRIC SUPPLIERS: ASSEMBLY UNITS

Eton works with seven contracted assembly units in Romania, Lithuania and North Macedonia. We conduct weekly visits to guarantee the highest possible quality. In addition, we have a smaller production unit at our headquarters in Gånghester for the purpose of product development, limited, mainly sample, production, technique tests and as a showcase for visitors. All our assembly units sign our Code of Conduct, ensuring good working conditions etcetera.

In total 1,2 million shirts and accessories produced in 2019

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A CIRCULAR APPROACH

SUPPLIERS: FINISHING

ETON SYSTEMS

When it was first introduced in 1992, the Eton’s finishing process, making fabrics permanently crease resistant, was the first in the world to be used in shirt-making. Today, it is a feature customers seek from our brand specifically, to keep a shirt looking crisp from early morning to late night. Eton uses independent third-party finishing providers to ensure high quality. This top performance remains even after frequent washing. As shirtmakers, we are naturally aware of the environmental impact of wet treatment and are as of 2019 in discussions with providers to explore the possibilities of options ensuring our products high quality with a lower footprint. While we are not yet at a stage where we are able to draw conclusions, this investigation witll be ongoing during 2020.

We offer all our assembly units active support to ensure an efficient, quality production process with ergonomic benefits that translate directly into reduced load on the operators and reduces the risk of strain injuries while also increasing the facilities efficiency and quality control. Some facilities have installed the Eton System.

All our finishing providers are certified by Sustainable Textile Production (STeP) by OEKO-TEX® with the highest result level (3). STeP is an independent system for certification of sustainable manufacturing processes in the textile industry, addressing following areas: • chemical management • environmental performance • environmental management • health and safety • social responsibility and quality management

ACCESSORIES PRODUCTION CHAIN

The Eton range of soft men’s accessories and styling details include scarves, ties, bow ties, bandanas, pocket squares and and knitted products such as beanies and cold-weather scarves, designed either inhouse or in collaboration with suppliers. The production is controlled by our inhouse accessories team located in Como, Italy, with trusted partners, who are among the top producers in their field such as heritage suppliers in Scotland and Italy. Materials used include wool, virgin wool, merino wool, silk or cotton, and cashmere. Design and make are always geared towards longevity.

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REACHING THE END CONSUMER As a global brand, we are aware of and take sustainability in production into account. However, a garments footprint over a lifetime extends further than that. We also consider the sell-in phase, how our products reach their end-consumer, and the end-consumer part of its life cycle. With garments designed for longevity, extending it is a given. Eton has a legacy of adaptation and innovation dating back to1928. Today, we have developed in a way that enables us to interact with customers in increasingly varied ways in more markets. We reach consumers in around 50 markets through Wholesale and eWholesale, own retail and digital store.

OW N C H A N N E LS

S A L E S C H A N N E LS Eton Brand Stores, brick and mortar Eton Online Brand Store etonshirts.com

W H O L E S A L E PA R T N E R S

Own outlets

Premium resellers, i.e. department and multi brand stores, brick and mortar stores and online, for example Nordstroms, Zalando

Specialist stores, including airport wholesale partners

Sales, all channels: Purchase with awareness In 2019, we have started to revise our routines for purchasing with the double goals of reduced stock-levels and a more sustainable purchasing patterns going forwards. While this work is in its infancy, we are excited to see the future outcomes.

Wholesale: Launching a Digital Showroom 2019 represented a landmark step, with digitalization having positive effects on the wholesale sell-in process from a sustainability point of view. In the fall, we launched a digital showroom, where partners can explore our assortment through pictures and informative content, and through which we can place and handle orders. This has the intended effect of reducing the need for Sales representatives to travel. For 2020, the goal is for the Sales Team is to reduce travel by 25%. In addition, the team no longer reqiures printed catalogues, and its general need for printed materials is greatly reduced. We aim for all business partners, such as Wholesale and eWholesale partners, printers, delivery partners etcetera to sign our General Agreement and Code of Conduct.

Custom Made: Getting a shirt made for you We strongly believe in offering shirts adjusted to fit the clients actual needs, rather than limit clients to a set of fits and sizes, as a way of ensuring that our products are set up to be appreciated and in use for a long time, equaling a low footprint per use. Eton Custom Made allows customers to adjust measurements and fit, for example for different arm length or body width, as well as customize shirts to their taste. In addition, Custom Made is an on-demand product, that is to say each product is ordered before it is produced, reducing the risk of overstock and unnecessary resource use or waste. Custom Made is promoted in stores, including eCom and is available to order through a digital application.

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RESPONSIBLE MARKETING – COMMUNICATION & PRODUCT LABELLING Following the Brand DNA “Quality”, “Style”, “Modern luxury” and “Innovation” we create communication to achieve Eton’s vision, to become known for the best shirts in the world, propelled by our brand purpose: to empower the modern man to be the best he can be. All with rooted in sound communication practices: in line with industry practices and never intentionally misleading, false or inappropriate. We actively work towards digital-first, which reduces the need for materials and transportation. By 2020, we aim to cut down on printed material for own stores, showrooms and retail partners, with an estimated reduction from14 400 units to 50 during 2020. (This excludes window communication). For sell-in to wholesale customers, one of the most positive changes of 2019 was the beginning of a transition to our digital sell-in platform, the Digital Showroom. This has allowed us to begin the transition from a traditional approach sales meetings in person, meaning a reduction in printed materials and travel. The Marketing Photo Studio supports with content that allows sales representatives to reduce the need to travel.

Eton always aims to correctly and fairly represent the Eton products, offers and price levels to end consumers and customers and for a clear, transparent communication as a whole. Eton is not political, religious or ideological nor do we align ourselves with any such parties, organisations, representatives or informal spokespersons at any time. Eton is a global, modern brand that understands the value of representation and positive storytelling: we consciously aim for marketing and PR material that is diverse, equality-based and does not reflect negatively on people because of for example but not limited to race, cultural or religious background, orientation or if they are people who have a disability. Nor do we accept the objectification of women, men or any other genders. Eton aims for a diverse, fair, open and respectful online climate and conversation.

All our products are thoroughly labelled with the legally required information about material composition, country of origin and care instructions.

Packaging material To keep our shirts and accessories protected as well as for branding reasons, we require packaging and support material.

We have strict environmental requirements for all packaging material, based on a combination of legislation (European Commission Decision 94|62|EC) and Eton’s own requirements.

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In 2019, we initiated a review of our packaging material from a sustainability perspective.


SUPPLIER COMPLIANCE: PRINCIPLES AND POLICIES As the makers of high-quality shirts and accessories it is important to us to be a high-quality partner to our suppliers. Initiating a relationship with a new supplier or continually placing orders with one creates an amount of influence. With influence comes responsibility. We work with third party auditors as well as own controls to ensure that we collaborate with producers that are certified. We use our close working relationship to encourage producers to continuously comply with our Code of Conduct. The control of third tier suppliers is equally key.

Product safety Any clothing manufacturer must take a stance on chemical regulations, for environmental and human safety reasons. To dye, process and finish our products requires chemicals. To ensure that our baseline is responsible use and management, we ensure that any Eton products are high quality, safe and follow REACH, EU regulations. All of our suppliers are required to sign agreements pledging that the products meet the legal requirements regarding use of chemicals.

Procedure when starting a collaboration with a new supplier All suppliers are required to sign the Eton Code of Conduct in order to sign a business agreement with Eton. A valid audit report is requested to confirm compliance with the Code of Conduct before the supplier can start working with Eton on a long-term basis. If the supplier cannot show any report, an audit is requested to be done at the earliest possible date.

In addition, all suppliers are contractually obligated to follow Eton’s Chemical List, regulating chemicals we ourselves do not permit in our production or finished products. To ensure compliance, we regularly have independent laboratories carry out chemical tests. Comprehensive risk and safety assessments are made for every product and regular product testing is also carried out. Should a product test negatively, we immediately cancel that order.

The Eton Code of Conduct is aligned with: The UN Global Compact The UN Universal Declaration of Human Rights The International Labour Organisation Conventions The UN Convention against Corruption

No products rejected during the chemical test phase are ever made available for sale. Our end-consumers’ safety is very important to us.

The UN Rio Declaration on Environment and Development

Eton is a member of the Chemical group managed by Swerea who is a part of the Swedish research institute RISE Research Institute of Sweden. www.swerea.se

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DAVID THÖREWIK, CEO

”PEOPLE MATTER: WHETHER THEY WORK AT ETON OR IN OUR PARTNERING FACTORIES, A SAFE, POSITIVE WORK ENVIRONMENT IS SOMETHING WE TAKE GREAT CARE TO PROMOTE.”

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Audits To verify that our suppliers comply with the Code of Conduct, we perform regular reviews, as well as external audits by independent third-party organisations. An independent third party of our choice conducts audits in order to evaluate compliance with our Code of Conduct, mainly but not limited to Intertek, and its Workplace Conditions Assessment (WCA) — a program to efficiently improve workplace conditions in accordance with widely accepted industry standards and best practices.*

The audit must cover following areas: • Labour (Child/Forced Labour, Discrimination, Discipline, Harassment, Freedom of Association, Contracts) • Wages and Hours (Wages and Benefits; Working Hours) • Health and Safety (Work Facility, Emergency Preparedness, Occupational Injury, Machine Safety, Safety Hazards, Chemical and Hazardous Material, Dormitory, Canteen)

WCA covers five main areas:

• Management Systems (Documentation, Records, Participation, Audits and Corrective Action Process)

Labour Wages and Hours Health and Safety

• Environment (Legal Compliance, Management Systems, Waste and Air Emissions)

Management Systems Environment *Approved Audits reports and systems: WCA, Workplace Conditions Assessment (Intertek), BSCI, SMETA (Sedex), SA8000, WRAP.

Work place Performance shirt factories: Labor

High performance

Wages & Hours

Medium performance – further improvements needed

Health & Safety

Low performance – significant action required

Management Systems

Very low performance – urgent actions required

Environment 0

P E R C E N TA G E O F A U D I T S

Corrective actions All non-compliance means that the supplier must provide proof of correction to Eton in a limited time frame. Timelines for achieving compliance should be defined and agreed upon. Eton follows up the implementation of the plan to correct the non-compliance and verifies that violations have been remedied.

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10 0


Audits Audits are important to secure working conditions and compliance within 3rd party suppliers. With the initiation of a new, dedicated sustainability role in 2019, Eton is very happy to have the opportunity to review, improve and set a new plan for continued audits. Along with a sustainability strategy, this is planned to be set during 2020. TODAY: 2015–2018 Tier 1: Assembly units, shirts

Tier 1: Suppliers, accessories

High risk countries identified: Romania North Macedonia Lithuania

As our number of suppliers has fluctuated, we identified 10 suppliers we work with, and 5 major suppliers based on volume of products bought and prioritized these.

All units (6 in total) audited. Completed in 2018.

All the major 5 audited 2017. Results positive.

Result: Only one failed to achieve the highest performance level. We noted minor violations: for example, first aid kits not available in all places of work, the evacuation door was not clearly marked, and a smoke detector was not properly installed.

Continued audits of remaining 5 suppliers producing a lower volume of Eton products begun 2018.

Outcome: The supplier has since taken action. New audit planned but delayed due to organizational changes.

2020 As a result of our organizational changes, we are now in a position to review and set a new plan for audits. Tier 1: Assembly units, shirts Review audit plan for assembly units, shirts, and set plan, based on, but not limited to, risk factors, volume and time since last audit into account.

Tier 1: Suppliers, accessories Review suppliers, accessories and determine which suppliers to move forward with. Set plan for continued and revised audits (see assembly units).

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Tier 2:

Tier 3:

Set plan for audit process, taking into account and prioritizing the minority of suppliers in identified higher risk areas, with Western Europe being a secondary focus unless the current pandemic should produce different conditions.

With even fewer suppliers in identified higher risk areas, we aim to begin a review of our audit process during 2020, focusing on areas where we can make the greatest impact now while having the full scope in mind for the future.


TRANSPORTATION Over the course of a year, Eton transports a large number of shirts, accessories and more on a near global market. Besides shirts and accessories, Eton transports fabrics, packaging material, marketing material and store furnishings.

To do this, we use our own distribution centre in Gånghester, Sweden and Atlanta, USA, as well as a third-party partner solution in Toronto, Canada.

Transportation and sustainability At Eton, we constantly strive to make our transports as efficient and low impact as possible. By planning and co-operating throughout the group, we can consolidate shipments and combine modes of transport more efficiently —both environmentally and economically. By working towards as correct deliveries as possible —quality in every part of the Eton experience is our constant aim—we reduce the risk of returns, with an added transport footprint. This has resulted in a comparatively low return rate, 11% of pieces sold, from our online brand store. Industry standard is as far as we know 20-30%.* (See https://cfr.handels. gu.se/digitalAssets/1662/1662593_euroma-conference-paper-2017.pdf)

All shipments are sent directly from the production sites by third-party forwarders. Shipments are made by truck to recipients in Europe, for example our warehouse in Gånghester, from which deliveries to North America are made. Presold products are shipped to a third-party forwarder hub, where they are consolidated in order to minimise the number of outbound shipments. Outbound shipments are made by truck and, depending on order type and customer location, sometimes by air.

We are looking into how we can work with our transport providers to reduce indirect emissions from deliveries globally. All our third-party forwarders need to comply with our Code of Conduct — naturally, so do we in our own facilities, ensuring for example fair working conditions, written employment contracts, limited overtime and fair compensation.

Returns and claims are sent directly to the distribution centres, to make it as efficient as possible for the sender. Parts of the larger seasonal returns are sent directly to factory outlet stores, in order to cut unnecessary transports and goods handling. For our internal transports between the Eton distribution centre in Gånghester and the headquarters, we use a transport bicycle in order to minimise our footprint.

Satisfaction and access Our customers are our most important stakeholders, and their satisfaction is our main priority. Therefore, it’s crucial that our customers can reach us for feedback or claims, whether through our customer service, phone, website or social media. Feedback that could potentially lead to an improved product is given particular attention. We are currently not measuring the number of customer feedback interactions, but we do measure the amount of claimed products, which was 0.34% in 2018 and 0,13% in 2019.

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PRODUCT USE & END OF LIFE Eton shirts are designed for longevity. We know that to further extend the lifespan of a shirt or accessory is beneficial to both the customer and the environment. The right garment care has the ability to extend that life and reduce the individual garment’s environmental footprint throughout its life. There’s a section on our website [www.etonshirts.com/global/eton-care giving traditional advice on washing, drying and removing stains in three different languages, however there are possibilities to further develop this advice with energy consumption, even further increasing longevity and the best possible way to finish a garment ownership. During 2019, we started reviewing this and are considering looking into a 360 approach to longevity, end-consumer care and the best possible way to finish a garment ownership. During 2019, we also reviewed how to handle waste, both in form of unsold products and waste products. We never send any usable products to incineration or landfills in our own production. In 2019, we also found a partner to re-sell, re-use or re-cycle products we have left over. We have set new goals and practices to reduce future leftovers, including a large number of saved, unsellable articles we had stored while looking for such a partner. Fabric waste is sent to incineration for energy recovery. But we know that we, as a manufacturing company, have a way to go and will stay open to future solutions for reducing and recycling material. A boosting highlight for us during 2019, if not in quantities, so in inspiration for the future was a collaboration with Borås Textile Academy targeting the development of possible new products to be made from Eton’s waste products and left overs.


CHAPTER THREE

MAPPING CO2E IMPACT IN SCOPE 1 AND 2 :

OWN OFFICES, WAREHOUSES, STORES & VEHICLES the greatest impact can be had. Focusing on CO2 is key because of the rapidly increasing concentration of CO2 (carbon dioxide) and CO2e* in the atmosphere and its relation to global warming, which in turn may have dramatic effects such as melting polar ice and a changing climate. Regarding the human aspect, climate refugeeism, and climate conflicts are a growing concern.

We need to look beyond the raw material, and look at energy and CO2 emissions. One of the biggest steps we have taken in 2019 is to map our emissions according to scope1 and 2 together with STICA, for our own (owned or rented) facilities and vehicles (excludes suppliers, production chain etcetera). Measuring is key because a sound, fact-based analysis allows targeted action where

SCOPE 1

SCOPE 2

SCOPE 3

Emissions are direct emissions from owned or controlled sources. 

Emissions are indirect emissions from the generation of purchased energy.

All other indirect emissions that occur in a company’s value chain.

About STICA STICA stands for The Swedish Textiles Initiative for Climate Action. https://www.sustainablefashionacademy.org/STICA The purpose of STICA is to support the apparel and textile industries and their stakeholders in the Nordic region to, at minimum, reduce greenhouse gases in line with 1.5°C warming pathway, as outlined by the United Nations Framework on Climate Change and the Paris Agreement. Ultimately STICA’s aim is to ensure the Swedish and Nordic textile industry does more than its share by becoming the first climate positive apparel and textiles industry in the world well before 2050.

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A CIRCULAR APPROACH

ETON’S RESULT EMISSIONS BY SOURCE (TON CO 2e)

COMPANY OPERATED VEHICLES

18,1% (118,2)

(Refrigerant leakage has been excluded)

Emissions by source (ton CO2e)

ELECTRICITY

51,2% (334,8)

ELECTRICITY FOR HEATING/ DISTRICT HEATING/ COOLING AND STEAM

26,3% (171,8)

FUEL USE IN FACILITIES AND PRODUCTION

4,4% (28,9)

Emissions from electricity consumption is the largest source, a total of 335 tons, or about 51% of the total emissions. Heating, cooling and steam is another significant emission source, at 172 tons, or about 26% of the total emissions.

TON CO 2e

WAREHOUSE

STORES

13,2% (67)

OFFICES

55,4% (280,8)

WAREHOUSES

31,3% (158,8)

STORES

Ton CO2e

OFFICES

*CO2e stands for Carbon dioxide equivalent and is a term for describing different greenhouse gases in a common unit.

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CHAPTER THREE

TOTAL EMISSIONS PER UNIT REVENUE, COMPARED TO OTHER STICA MEMBERS

3,00

2,50

2,00

1,50

1,00 Eton Average

0,50 Median 0,00

Other Stica Members

CO2 “cost” compared to money made In comparison to other STICA members, Eton also has a comparatively high CO2e per unit revenue, meaning we spend more CO2e for the profit we make than the average member. Taking into account that part of this effect depends on estimated emission data (we lack data in certain cases) and that our business model includes a comparatively low volume/high time investment product (consequently sold at a higher price) compared to for example fast fashion brands the numbers are still significant, in a way that presents us not only with a challenge, but with an opportunity to target CO2e emissions covered in Scope 1 and 2 in a smart, effective way.

48


A CIRCULAR APPROACH

STICA WRITES:

“If Eton used renewable energy in all of their facilities, the scope 2 emissions would be reduced by 506,6 ton CO2e (77,5%). Changing to renewable energy could be done by purchasing Guarantees of Origin (GOs) and Renewable Energy Certificates (RECs), investing in renewable infrastructure for the facilities or by changing to a climate neutral contract with the local district heating provider.”

ANALYSIS

1

An analysis of Eton emission patterns according to scope 1 and 2 (own facilities only) clearly states that the single most important action we can take to lower our CO2 emissions within our own offices, stores, warehouses etcetera is to ensure that we use renewable energy only. This would help reduce the CO2 cost per Krona made.

2

Even more important to our over-all CO2 footprint is to map, review and set a strategy for and implements actions in Scope 3: Eton’s total value chain. This is where significant impact can and must be made, from production to end-consumer phase and end of life.

3

We will work strategically and based on defined goals in order to create as big an impact as possible. However, we will also review low hanging fruit and other possibilities. One potential example would be replacing company-owned fossil fueled cars. That would represent a reduction of 52,3 tons of CO2 emissions.

4

But every step is a step in the right direction. While Eton as a whole will strive to set specific goals and action plans during 2020, geared towards the most effective action based on analysis, we also know that one of the most efficient ways to encourage change and turn aims into goals through new ideas is for every team and employee to consider sustainability improvements that could be made in their role, big or small.

WE EXTEND AN INVITATION TO ALL ETONIANS TO ASSIST IN REACHING THE GOALS STATED IN THE PARIS AGREEMENT.

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Starting 2019, Eton is a proud member of STICA:

Initiative Aims

The Swedish Textiles Initiative for Climate Action (STICA)

The Swedish Textile Initiative for Climate Action will:

Official Communications Text for Action Learning Network Members

• Support apparel and textile companies operating in both Swedish and international markets to set science-based targets and reduce their greenhouse gases in line with 1.5 C warming pathway, as outlined by the United Nations Framework on Climate Change and the Paris Agreement. We will also go further, ensuring we exceed this goal by becoming climate positive. 

The purpose of The Swedish Textiles Initiative for Climate Action (STICA) is to support the apparel and textile industries and their stakeholders in the Nordic region to, at minimum, reduce greenhouse gases in line with 1.5 C warming pathway, as outlined by the United Nations Framework on Climate Change and the Paris Agreement. Ultimately STICA’s aim is to ensure the Swedish and Nordic textile industry does more than its share by becoming the first climate positive apparel and textiles industry in the world well before 2050.

• Provide a neutral, non-competitive platform for companies and organizations to learn best practices for reducing their GHG emissions as well as to track and publically report on their progress on a regular basis.  • Support the development of joint projects and cross-sector collaborations in order to reduce the Swedish apparel and textile industry’s GHG emissions while stimulating climate solutions that can also be exported outside of Sweden, thus increasing the Swedish apparel and textile industry’s global competitiveness. 

• Supporting apparel and textile companies operating in both the Nordic and international markets to set science-based targets and reduce their greenhouse gases in line with 1.5 C warming pathway, as outlined by the United Nations Framework on Climate Change and the Paris Agreement.

• Develop a roadmap and implement an action plan for how the Swedish apparel and textile industry will reduce its GHG emissions beyond the 1.5°C warming target in order to become climate positive.

• Providing a neutral, non-competitive platform for companies and organizations to learn best practices for reducing their GHG emissions as well as to track and publicly report on their progress on a regular basis. • Supporting the development of joint projects and cross-sector collaborations in order to reduce the Nordic apparel and textile industry’s GHG emissions while stimulating climate solutions that can also be exported outside of the Nordic region, thus increasing the Nordic apparel and textile industry’s global competitiveness. • Working with industry stakeholders to develop a roadmap and implement an action plan for how the Swedish and Nordic apparel and textile industries will reduce their GHG emissions well below the 1.5 C warming target in order to become climate positive, while also becoming a global leader in developing climate positive solutions for the global apparel and textiles industry. STICA’s Action Learning Network Companies participating in STICA’s action learning network commit themselves to reducing their greenhouse gas emissions in line with 1.5 C warming pathway, as outlined by the United Nations Framework on Climate Change and the Paris Agreement. Companies also commit to publicly reporting their progress on an annual basis and to working collaboratively in order to develop joint solutions for accelerating GHG reductions. 

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51


CHAPTER THREE

IDENTIFIED RISKS As a part of the garment industry, we identify and target a number of general risks on design, raw material and production level. While we do not own our own factories, apart from a small unit at our HQ, we recognise that these risks must be of importance to us, as to the industry as a whole.

Worker’s rights, including: • Child labour and bonded labour. • Limited freedom of association and rights to negotiation. • Being denied a written contract.

Environmental costs, including: • As a company producing physical products, we recognise that producing, selling and owning our products has an environmental impact throughout a garment’s lifecycle.

• Unfair or insufficient wages (does not cover basic needs for the worker and their family and provide some discretionary income). • Excessive and/or involuntary overtime.

• A significant factor is greenhouse gas emissions from the production of raw materials, supplier processes and transportation, but also from our own stores, travel habits and facilities, with heating and electricity origin in our own facilities being identified as a key initial step for Eton, with scope 3 (the entire chain) as even more important second. Another key risk is water use in raw material production and production processes, which is especially impactful in areas with limited access to water. • As is chemical use and wet treatment — with a negative environmental impact, risk of impact on workers’ health and consumer health. • We recognise that our main source of raw material, conventionally grown cotton has a comparatively high environmental impact, primarily from water and chemical use. As is animal welfare violations.

• Being denied fair work conditions on company, supplier or subcontractor level. • Hazardous physical work environment, including but not limited to health risks and fire risks. • Being denied the right to a work environment free of abuse in any form, including physical, sexual and emotional, discrimination in any form, including gender, race, age, pregnancy, religion, sexual orientation, caste, political opinions, nationality, ethnic origins, social background, disease or disability at any occasion, such as hiring, compensation, training, promotion, termination and retirement. Corruption, including: Bribery, facilitation payments and nepotism.

• In addition, we realize that the consumer phase contains its own risks and possibilities, from shipping and transportation to store to garment care and longevity.

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SUMMARY

RISK MANAGEMENT

ONGOING AND PLANNED

Our main existing tool is the Eton Code of Conduct, targeting these identified risks and stipulating and defining what Eton requires of its suppliers and employees, including an animal rights policy and an anti-corruption policy. All finishing providers should be STeP certified.

All suppliers and employees must sign the Code of Conduct. Aim for other business partners to sign the Code of Conduct.

In addition, Eton follows EU regulations, REACH, regarding chemical use.

Supplier compliance is audited by third party auditors as well as by Eton itself. Eton reserves the right for un-announced audits.

In addition, anti-corruption training is mandatory for all Eton employees. For 2018, 75% had finished the training. We continuously train new employees and aim to resume training existing employees in 2020.

Eton believes in cooperation and are willing to work with our suppliers and other business partners to achieve sustainable solutions and to promote suppliers and other business partners who are in compliance.

To establish an efficient CSR work we set up a Sustainability Steering Group, introduced a Sustainability Coordinator role (50%) and set, measurable sustainability goals. (See following pages)

Relevant documentation must be maintained for auditing purposes.

Move towards Organic Cotton Climate neutral by 2050

Eton’s audits aim to identify gaps between the requirements in the Code of Conduct and the actual practices and conditions in the workplace. The audited company will always be given the opportunity to propose and implement a corrective action plan.

Transparency: Public Sustainability Report

A supplier failing to undertake sustainable improvements within the stipulated time frame would seriously damage its relationship with Eton. Eton’s mission is to cooperate with suppliers to address the underlying causes to the non-compliance and to implement continuous improvements. Terminating business with existing suppliers will take place in the events of repeated failure or unwillingness to carry out corrective actions. All fabric suppliers should be Oeko 100 certified.

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REPORT SUMMARY

PRODUCTION & PEOPLE

CLIMATE

TRANSPARENCY

A circular approach, with consideration for planet and people from beginning to end.

Taking action for our customers, the future — and our business.

Engage, inform and collaborate with customers and stakeholders.

• On demand production • 100% organic cotton by 2025 • 100% certified sustainable fibers class A and B according to the Made By standard in all shirts and accessories by 2030

• A science-based target in line with Stica recommendations: reduce emissions by 50% by 2030 • Climate neutral by 2050

• Aim for GOTS certification • Longevity and FPU (footprint per use)

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• Public sustainability report • Aim for a public supply chain, countries and rating • Structured dialogue with interested parties to create authentic actions


GOALS GOALS & AIMS – COMPANY 2019

OUTCOME

Preventing harassment: All employees to receive training on preventing sexual harassment.

Rolled out to selected stores (see page 17).

Continue work to review possibility for gender-diversification on management level (Assigned responsible Eton Legal Manager).

Positive development (see below).

Anti-corruption: Implement a global whistleblowing program/ mechanism and complete anti-corruption training for all employees.

Delayed

Workplace satisfaction: Every department to actively work to improve and develop a great place to work based on the 2018 results per department and as a company.

In process, measured biannually

Community: To continue contributing on a local level.

Achieved

Anti-corruption: Training to be rolled out to all new employees and employees who have not yet completed the training. We aim to complete implementation of whistleblower applicationduring this year or in the near future.

2020

Workplace satisfaction: Great Place to Work biannual survey Community: To continue contributing on a local level.

GOALS & AIMS

2016

2017

2018

2019

TARGET

Total employees, Eton AB

188

234

235

321

Women

52%

49%

46 %

48%

50%

Men

48%

51%

54 %

52%

50%

7

8

7

9

Women

43 %

25%

14 %

22%

Men

57%

75%

86 %

78%

Sickness absence, Sweden, Eton AB

4.34%

2.78%

2.66%

2.27%

”Great place to work” Index

Other system

72

67

Biannual

85

Management group

55


SUMMARY

Product & production

Goals & aims

More sustainably sourced Not applicable (2018) fibers 10% (2019) 15% (2020)

Result 2019 Goal was clarifed and split into two parts: 100 % Organic Cotton by 2025 (main raw material) 100% More Sustainabily sourced fibers to 2030

Fabric supplier, Oeko-tex 100 2018: 100% 2019: 100%

100%

Finishing providers, STeP 2018: 100% 2019: 100% Audits shirt assembly units 2018: 100% 2019: 100%

100%

100%

Audits accessory suppliers 2018: 100% 50% (2017) 2019: 100% 72% (2018)

GOALS & AIMS – MATERIALS 2019

OUTCOME

To launch a test case internally named The Most Sustainable Luxury Shirt; a capsule collection allowing the organisation to explore alternatives, test and define new production processes moving forward. 10% of our articles to be made with or partly with more sustainably sourced fibres.

Set specific, defined and measurable short and long-term goals for sustainably sourced materials and for other possible sustainability actions during the next few years.

2020

15% of our articles to be made with, or partly with, more sustainably sourced fibres.

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Cancelled

4,3% of meter fabric. During 2019, we implemented a new, set standard for measuring more sustainable fibers in kilograms and meters, rather than in % of products. Sustainability goals and vision in process, sustainability steering group in place


GOALS

GOALS & AIMS – CUSTOMER JOURNEY 2019

OUTCOME

Promote and launch of Eton Cotton-Tencel™ to customers in store and in own online brand store.

Tencel™ stood for 4,3% of meters of fabric used. in 2019 and is an integral part of the 2020 range

Successfully promote and launch capsule collection with the internal working title The Most Sustainable Luxury Shirt to customers. Exploring stakeholder interest for more sustainable options.

Project postponed

Expanding our ability to respond to customer and press sustainability questions through new information material from Sustainability department — a key foundation that enables the organisation to move forward with sustainability as a part of our business practice.

Established new Sustainability Coordinator role as an essenital first step.

Update and expand information to customers regarding sustainable garment care practices.

Moved to later date due to platform change.

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AUDITOR’S REPORT

AUDITOR’S REPORT ON THE STATUTORY SUSTAINABILITY REPORT To the general meeting of the shareholders in Eton Group AB, corporate identity number 556876-2677

Engagement and responsibility It is the board of directors who is responsible for the statutory sustainability report for the year 2019 and that it has been prepared in accordance with the Annual Accounts Act. The scope of the audit Our examination has been conducted in accordance with FAR’s auditing standard RevR 12 The auditor’s opinion regarding the statutory sustainability report. This means that our examination of the statutory sustainability report is substantially different and less in scope than an audit conducted in accordance with International Standards on Auditing and generally accepted auditing standards in Sweden. We believe that the examination has provided us with sufficient basis for our opinion. Opinion A statutory sustainability report has been prepared.

Borås 15 June 2020 Öhrlings PricewaterhouseCoopers AB

MICHAEL BENGTSSON Authorised Public Accountant

MATTIAS PALMQVIST Authorised Public Accountant

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GRI INDEX 1. Organizational profile

DISCLOSURES

PAGE

102-1

Name of the Organization

102-2

Activities, Brand, Products, and Services

7

102-3

Location of Headquarters

7

102-5

Ownership and Legal Form

7, AR 2019

102-6

Markets Served

7

102-7

Scale of the Organization

7, AR 2019

102-9

Supply Chain

34–37

102-10

Significant Changes to the Organization and its Supply Chain

19

102-11

Precautionary Principle or Approach

10

102-12

External Initiatives

13

102-13

Membership of Associations

12

2.    Strategy

102-14

Statement from Senior Decision-Maker

3

3.    Ethics and Integrity

102-16

Values, Principles, Standards, and Norms of Behavior

4–5, 8–9, 14–16

4.    Governance

102-18

Governance Structure

2

102-43

Approach to Stakeholder Engagement

13

6.    Reporting Practice

102-45

Entities Included in the Consolidated Financial Statements

AR 2019

102-47

List of Material Topics

13

102-48

Restatements of Information

102-49

Changes in Reporting

102-51

Date of Most Recent Report

2019

102-53

Contact Point for Questions Regarding the Report

2

102-54

102-54 Claims of Reporting in Accordance with the GRI Standards

2

102-55

102-55 GRI Content Index

58

NOTE Eton AB

More information in the Financial Annual Report

MATERIAL TOPICS ECONOMIC GRI 201: Economic Performance (2016)

GRI 205: Anti-Corruption (2016)

103-1,2,3

Disclosures on Management Approach

AR 2019

More information in the Financial Annual Report More information in the Financial Annual Report

201-1

Direct Economic Value Generated and Distributed

AR 2019

103-1,2,3

Disclosures on Management Approach

17

205-1

205-1 Operations Assessed for Risks Related to Corruption

17

Omission, Not in place

205-3

205-3 Confirmed Incidents of Corruption and Actions Taken

17

Omission, Not in place

ENVIRONMENT GRI 301: Materials (2016)

GRI 305: Emissions (2016)

103-1,2,3

Disclosures on Management Approach

26–37

103-1,2,3

Disclosures on Management Approach

46–50

305-1

Direct (Scope 1) GHG Emissions

46–50

305-2

Energy indirect (Scope 2) GHG Emissions

46–50

103-1,2,3

Disclosures on Management Approach

24–25, 40, 42–44

GRI 308: Supplier Environmental Assessment (2016)

SOCIAL GRI 405: Diversity and Equal Opportunity (2016) GRI 414: Supplier Social Assessment (2016)

103-1,2,3

Disclosures on Management Approach

16–17

103-1,2,3

Disclosures on Management Approach

34–35, 42–43

103-1,2,3

Disclosures on Management Approach

38–40

GRI 416: Customer Health and Safety (2016)

416-1

Assessment of the health and safety impacts of product and service categories 

38–40

GRI 417: Marketing and

103-1,2,3

Disclosures on Management Approach

38–39

labeling (2016)

417-1

Requirements for product and service information and labeling

38–39


Profile for etonshirts.com

Sustainability Report 2019