THE BLUE BOOK 2025

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The Blue Book

Welcome to the Blue Book

This is the fifth edition of the Blue Book, a concise guide to sustainability practices at Nilörn. Since the previous edition, our practices, ambitions, and achievements have evolved, which are showcased in the following pages. The scope of the book has also broadened to encompass a holistic approach to how we aim to have a more positive impact on people and the planet. You can also refer to our annual Sustainability Report, More Fit for Future, for more detailed information about our targets and improvements.

Table of contents

Why blue and not green?

What we do, A global presence

Nilörn’s in-house production facilities

Sustainability at Nilörn

Policies

A history of sustainability at Nilörn

The CSR and Sustainability Advisory Team

Nilörn value chain

Aligning with external knowledge

United Nations Global Compact

United Nations Sustainability Development Goals

American & Footwear Association

Cotton made in Africa

The Good Cashmere Standards

The European Outdoor Group

WaterAid

Certifications, standards and labels

Climate and nature

Svensk Miljöbas

The Higg Index

Resource efficiency

GHG emissions

Biodiversity and ecosystems

ChemSec

Chemical management

Circularity

Design and product development

Designer’s checklist

How our products promote circularity

Circular textile industry

Nilörn:CONNECT™

Material team and innovation

Offering more preferred materials

People and society

Nilörn core values

Human resource policy

Anti-corruption

Code of Ethics

Wistleblowing function

Supply chain requirements

Auditing tools and organistations

Sedex

Business Social Compliance Initiative

Qarma

Why blue and not green?

You might be wondering why we call this publication the Blue Book and not the (more obvious) Green Book.

“Green” is an easy synonym for the environment, evoking forests and natural terrain. But landmass accounts for just 29% of the Earth’s surface, the remaining 71% being oceans and freshwater. Simply put, we live on a blue planet. Further, as we are part of the textiles industry, water is one of the main resources used in production, and therefore something we feel a responsibility for protecting. So for us, the blue part is as important as the green.

The forests north of Kvikkjokk, Sweden. Close to Pårte on the King’s Trail. Photo by Anders Norén, Unsplash.

Our approach to branding and labelling

We provide solutions and products to help our clients identify and elevate the essence of their brand.

· Nilörn:CONNECT™

· RIS (Barcodes, Care Labels, RFID)

· Labels, Trims & Packaging

· Design

· Logistics

· CSR & Sustainability

· Compliance

What we do

We work hand-in-hand with global partners, crafting the world’s finest solutions for labels, trims, and packaging, which we develop with a firm commitment to responsible production. Our mission is to empower our clients by sharing our expansive knowledge and fostering a culture of trust and collaboration. With innovation and craftsmanship, we want to propel brands to the forefront, enabling them to enhance visibility and position themselves for a thriving future.

More and more, our sales team plays an important role in guiding clients to ensure regulatory compliance, navigate the evolving digital landscape in labelling, and select preferred materials over conventional options. With deep expertise in the latest legislative requirements and the impact of our materials, we are dedicated to sharing this knowledge and contributing to meaningful change in the industry. This aligns with the growing demand from our clients, who are actively seeking our guidance.

A global presence - 19 countries

Offices: Belgium, China, Denmark, India, Japan, Italy, Netherlands, Pakistan, Spain, Sweden, Switzerland, USA West and USA East.

Offices/Manufacturing bases: Bangladesh, Germany, Hong Kong, Portugal, Turkey, the UK and Vietnam.

Nilörn’s in-house production facilities

We have a mix of outsourced and in-house production facilities, which each provide different business opportunities.

Portugal

Portugal boasts a rich textiles and garment manufacturing heritage, and our facilities combine tradition with European innovation. By maintaining our own production unit in Portugal, we have a direct overview of processes, quality control, and alignment with sustainability standards.

Bangladesh

Bangladesh is a global textiles powerhouse known for its skilled workforce and competitive costs. Our production facilities in Bangladesh enable us to ensure consistent quality and meet international standards regarding production, working conditions, human rights and environmental impact.

England, Germany, Turkey and Hong Kong

This is where we operate our printed label production centres, providing proximity to key markets and enabling us to meet diverse customer requirements.

Vietnam

Vietnam is a strategic location for the garment industry. The opening of our Vietnam facility enhances our global footprint, tapping into a fast-growing economy and skilled workforce.

We uphold stringent environmental, labour and human rights certifications and standards at all our in-house facilities, which you can read about later in this book.

Sustainability at Nilörn

As a global company with an international supply chain and clients in multiple countries, our responsibility transcends borders. Nilörn’s initiatives are driven by a combination of proven best practice and innovation. We engage with key stakeholders on sustainability topics and use our knowledge and influence to advocate for positive change.

Nilörn’s sustainability strategy is based on our mission, “To guide our clients in the world of labelling”, together with the UN Global Compact’s ten principles on human rights, labour law, the environment and anticorruption, the Sustainable Development Goals (SDGs) and the materiality analyses carried out together with stakeholders. The strategy is built around three pillars: Climate and Nature, Circularity, People and Society.

Woven label - 100% recycled polyester

Policies

To ensure the proper implementation of our sustainability strategy, we have developed several policies that support our vision and values:

• Policy on raw materials with animal origin

• Anti-corruption policy

• Code of ethics and business conduct

• CSR policy

• Environmental policy

• Human rights policy

The Supplier Code of Conduct, together with responsible sourcing policies in our Supplier Handbook, sets out the expectations of suppliers and business partners.

A history of sustainability at Nilörn

Since integrating our Code of Conduct in 2004, we have been implementing and developing initiatives and practices to reduce our impact on the environment and people year on year. Here are some of the highlights.

2024

Nilorn Bangladesh is a bluesign® system partner and supplier of labels

2021

Nilörn Sweden is certified by the Svensk Miljöbas (The Swedish Environmental Base) for aspects including reduced environmental impact, resource efficiency, long term sustainability and open environmental reporting.

2016

Nilörn becomes a member of Sedex, a not-for-profit membership organisation dedicated to driving improvements in responsible and ethical business practices.

2009

Nilörn launches Earth folder, our first design collection with a focus on sustainability.

Earth, launched in 2009 - Nilörn’s first design concept introducing alternative branding and packaging solutions.

2022

· Preferred Materials Index

· Nilörn:CONNECT™

· Nilorn Germany FSC™ certification

· GRS certificate at Nilorn India

· Qarma internal audit program

· European Outdoor Group member

2020

· Higg Facility Environmental Module

· Nilorn Shanghai and Portugal SMETA audit

· Global employee survey

2018

· Nilörn A/B member of Sedex

· Designer Checklist

2016

· Nilörn B member of Sedex

2023

· Nilorn East Asia Smart Energy reward by CLP

· Voka Charter Sustainable Entrepreneurship award to Nilorn Belgium

· Expansion of Nilörn Material Team

· Nilorn Portugal FSC™ certified

· Supplier Portal launched

· Nilorn Vietnam setup and FSC™ certified

· GRS certificate at Nilorn Turkey

· Nilorn Germany and Nilorn India SMETA audit

2021

· GRS certificate at Nilorn East Asia, Shanghai and Bangladesh

· Svensk Miljöbas, environmental certification Nilörn Sweden

· Chemsec’s No to PFAS movement

· AAFA

· Nilorn UK, Turkey and Pakistan FSC™ certification

2019

· Stakeholder dialogue

· CSR & Sustainability training program

· Biolyftet training

· GRS certificate at Nilorn Portugal

· Solar panels at Nilorn Portugal factory

2017

· 1st Sustainability Report

· Nilorn Dhaka factory established

· Member of RISE Chemical Group

· Supplier handbook

· Nilorn East Asia bluesign® system partner

· Joined the UN Global Compact

· Nilorn Bangladesh FSC™ certification

2004 - 2014

· Nilörn Code of Conduct

· Earth folder

· Earth - Nilörn's first design collection with focus on sustainability

· STANDARD 100 by OEKO-TEX®

· Nilorn Portugal bluesign® system partner

· Nilorn East Asia FSC™ certification and SMETA audit

· Blue Book launched

”We aim to stay abreast of continuous advancements in the field, foster mutual learning and provide support to the Nilörn organisation, our suppliers and clients.”

The CSR and Sustainability Advisory Team

Our CSR and Sustainability Advisory Team (CSAT) was established in 2018. The group aims to further integrate CSR and sustainability into the organisation’s daily operations, to spread knowledge and share experiences.

CSAT helps to anchor our objectives and embed a sustainability mindset throughout the organisation. The team is led by our Sustainability Manager and consists of staff from various Nilörn offices, representing design, product development, production, purchasing, sales and CSR.

Nilörn’s Sustainability Manager is based at our Head Office in Sweden. CSR staff are located in Europe and Asia to strengthen our competence and provide support at a regional level. The team supports Nilörn’s sustainability work alongside local staff in our sourcing countries.

Nilörn value chain

We integrate a sustainability perspective in every part of our value chain, whether directly or by influencing our partners and spreading best practice.

Client

We work closely with our clients to find the most sustainable solutions to meet their needs.

Manufacture

Our products are a part of other products, so our key role in this area is to deliver the correct product on time to minimise potential disruption and waste.

Design

Circular thinking is designed into our products from the drawing board.

Product Development

We strive to ensure the client’s ambitions and our interpretation and design result in products that have as low environmental impact as possible.

Logistics

We have less influence in this area, but where we can, we work close to our client’s production sites to minimise distances and therefore transport emissions and focus on fill rate and joint loading to create efficient solutions.

Consumer

We help our clients use our products as a platform to provide consumers with transparent information.

End of life

End of life starts at the beginning by designing for less waste and with possibilities for reuse and recycling, as well as responsible waste handling in our production.

Production

We monitor and improve the production conditions, including factory environmental performance, occupational health and safety and other labour conditions for the workers.

Aligning with external knowledge

When it comes to the fast-developing world of environmental and social impact mitigation, there is no underestimating the importance of guidance and accountability. We have a great deal of internal expertise, but we are always keen to learn and develop. By working with several external organisations, we can actively participate in future sustainable development by both learning and contributing.

United Nations Global Compact

We joined the UN Global Compact in 2017 and consolidated its ten principles into our sustainability strategy. The UN Global Compact is the largest corporate sustainability initiative with 20,000+ participants in over 160 countries. The principles provide requirements around human rights, labour, the environment and anti-corruption. These are based on the United Nations Universal Declaration of Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, the Rio Declaration on Environment and Development and the UN Convention Against Corruption. As a participant, we submit an annual report outlining how we implement the principles.

Aerial view of Jokulsarlon, Iceland

United Nations Sustainable Development Goals (SDGs)

Based on a stakeholder dialogue, where we considered the challenges and opportunities faced by the fashion/textiles industry in relation to the SDGs, we identified six goals and targets of relevance for Nilörn. We are committed to promoting them throughout our value chain. The six goals/targets are:

Achieve gender equality and empower all women and girls - We regularly monitor and take active measures to prevent discrimination and promote equal rights and opportunities regardless of gender, transgender identity or expression, ethnicity, religion or other belief, disability, sexual orientation or age. Gender equality is a critical issue for global supply chains in particular, as there is an opportunity to make a big impact by creating jobs and sources of income for women.

Ensure availability and sustainable management of water and sanitation for all - In our supply chain, we can work with water issues directly by being more efficient in the processes that require water and ensuring proper waste-water treatment. Access to water and sanitation are human rights, we promote proper WASH-facilities in production and supply chain. We also indirectly help make improvements upstream, through our engagement with WaterAid and in projects such as Cotton made in Africa.

Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all - We commit to implementing social standards, such as living wages and decent working conditions in our supply chain. New suppliers are screened, and we encourage our suppliers to adopt quality, environmental and occupational health and safety management systems and certifications and to include certification schemes used by suppliers in our criteria for the choice of suppliers.

Ensure sustainable consumption and production patterns - We have adopted policies to choose preferred materials, increasing the use of recycled materials and acting for sound chemical management. Nilörn has joined the bluesign® system to put the whole production chain in focus and strive to protect health and the environment across the entire chain of production. Since 2020, we have implemented Higg FEM in our production and supply chain.

Take urgent action to combat climate change and its impacts - Increasing the use of green electricity, installing solar panels on roofs and working to reduce energy consumption in our own units all help combat climate change. We are also implementing Higg FEM to better understand energy use in our supply chain. We assure all employees participate in our Basic Environmental Training. Climate change has a high impact on water, through our partnership with WaterAid we address the issues in our operations and supply chain.

Strengthen the means of implementation and revitalise the global partnership for sustainable development - The achievement of the SDGs depends on the collaboration of many different actors, including businesses. As a small but global player, Nilörn cooperates with others and participates in business initiatives, such as UN Global Compact, Sedex and RISE Chemicals Group. Also, by aligning with standards and certifications like bluesign®, OEKO-TEX® and GRS.

American Apparel & Footwear Association (AAFA)

Nilörn is a member of AAFA, which provides exclusive expertise in supply chain management, trade policy, and brand protection to help its members navigate regulations. Members have access to information and insights on regulation and policy, and opportunities for collaboration.

Cotton made in Africa (CmiA)

Nilörn has been a CmiA partner since 2012. CmiA is an internationally recognised standard for sustainable cotton from Africa. Since its creation in 2005, CmiA has had a goal to protect the environment and help Sub-Saharan African smallholder cotton farmers and ginnery workers improve their living and working conditions. Instead of collecting donations, the initiative follows the principle of helping people help themselves through trade.

The Good Cashmere Standard® (GCS)

GCS is an independent standard for sustainable cashmere, developed by the Aid by Trade Foundation (AbTF), that aims to improve the welfare of cashmere goats, the working conditions of farmers and to protect the environment. Nilörn is proud to be a nominated producer of all GCS standard labels.

The European Outdoor Group (EOG)

Nilörn is an associated member of the EOG. The EOG is built upon three essential priorities: Conducting business in an ethical and sustainable manner, preserving the outdoors, and getting people active in nature. The EOG engages in various activities, such as market insights, corporate social responsibility initiatives, outdoor retail collaboration, event organisation, and industry representation. Nilörn participates together with some other members in the single-use-plastic project, which aims to both reduce the use of plastic, increase the proportion that is recycled and contribute to increased recycling.

Small logo and horizontal logo, used in bottom right or left of slide, not necessary

190 pixels tall (vertical logo) 250 pixels wide (horizontal logo)

WaterAid

WaterAid is an international organisation active in 30 countries that works for a world where all people have access to clean water, toilets and hygiene. Every year, the organisation changes the lives of millions of people through increased access to clean water, toilets and hygiene in the world’s poorest communities. We are proud to support WaterAid’s work and we also participate in “March for Water”.

Large logo, 360 pixels tall)
Medium logo, 190 pixels tall

Certifications, standards and labels

Forest Stewardship Council (FSC™)

We offer FSC™ options for paper-based products. FSC™ is an international non-profit organisation dedicated to promoting responsible forestry. FSC™ certifies forests all over the world to ensure they meet the highest environmental and social standards, and products carrying the label help assure consumers that they meet the requirements.

The FSC™ system also provides a way of tracking forest products through independently verified Chain of Custody (CoC) certification, which verifies that a product contains wood from a certified forest and/or recycled material.

OEKO-TEX® STANDARD 100

OEKO-TEX® STANDARD 100 has been the base for Nilörn’s textile product offer for many years, and today we offer woven and printed certified labels as well as some metal and plastic accessories and heat transfers.

OEKO-TEX® STANDARD 100 is a worldwide consistent independent testing and certification system for textile products at all stages of processing. The certification mean that a product, material, accessory, or other textile related good has been tested for substances that could harm human health.

bluesign®

The bluesign® SYSTEM uses strict auditing and chemical management to eliminate harmful substances throughout the supply chain, including responsible use of resources, production with a minimum impact on people and the environment and the highest level of consumer safety.

Third-party certifications, standards and labels are another way we can ensure our products meet high social and environmental standards throughout our supply chain. They also offer assurance to our clients on our commitment.

Cradle to Cradle Certified®

We use a selection of Cradle to Cradle Certified® materials, examples are PLA for hard trims, paper and offset ink. The Cradle to Cradle Certified® Product Standard is an international certification, ensuring product safety for both people and the environment as well as design that promotes recycling and/ or composting of the materials used. It is connected to a fivetiered assessment: material health, material reutilisation, renewable energy and carbon management, water stewardship, and social fairness. The certification helps companies to innovate and optimise materials and products according to advanced science-based measures.

The Global Recycled Standard (GRS)

We provide GRS-certified items across several product categories including woven labels and plastic packaging. GRS helps us verify the recycled content of products and to validate responsible social, environmental and chemical practices in the production. The objectives of the GRS are to define requirements to ensure accurate content claims and good working conditions, and to minimise harmful environmental and chemical impacts.

The Recycled Claim Standard (RCS)

RCS certification is used to verify recycled material content items in our labels and plastic packaging. RCS is an international standard that sets requirements for third-party certification of recycled input and chain of custody. RCS aim to increase the use of recycled materials and it is intended for use with any product that contains at least 5% recycled material.

EuCertPlast

A certification for plastic recyclers. The scheme focuses on traceability of plastic materials throughout the entire recycling process and supply chain, and on the quality of recycled content in the end product, based on the European Standard EN 15343:2007. It aims to accredit plastics recyclers ensuring that recyclable plastic waste is processed in an environmentally sound manner according to legal requirements in EU states.

RecyClass

A non-profit, cross-industry initiative facilitating the transition toward a circular plastic future. RecyClass aims to improve the design of packaging so that it is easily recyclable into a quality secondary raw material to be used in new plastic products. The RecyClass certification covers the traceability of recycled plastics within a process and the verification of a given percentage of recycled plastic content in products.

Blue Angel

Nilörn applies the Blue Angel certification for products made of recycled plastics. The Blue Angel is the ecolabel of the federal government of Germany. The Blue Angel sets high standards for environmentally friendly product design and has proven itself over the past 45 years as a reliable guide for more sustainable consumption. The ecolabel requires that plastic recycling follows the EUCertPlast certification scheme.

OK Compost Industrial

OK Compost is used to certify some of our packaging items. Packaging or products featuring the OK Compost label (based on European standard EN 13432) are guaranteed as biodegradable and compostable in an industrial composting plant and are applied to all components, inks and additives.

OEKO-TEX® LEATHER STANDARD

An internationally standardised testing and certification system for leather and leather goods at all production levels, including accessory materials. The certification supports companies along the supply chain with the implementation of high humanecological product safety.

Leather Working Group (LWG)

Nilörn sources materials from LWG certified tanneries. LWG is a not-for-profit organisation that aims to improve the environmental impact of the leather industry by assessing and certifying leather manufacturers. LWG provides guidance and auditing tools so its members can make informed, sustainable choices.

“Certifications verify that our products meet specific standards, helping our clients make more informed choices.”

Climate and nature

Nilörn is committed to reducing its environmental impact and promoting sustainable practices. The company aligns its operations with the UN Global Compact’s principles, focusing on environmental stewardship. Efforts include evaluating suppliers and vendors ensuring responsible resource use, and striving for reduced emissions across all operations.

Our environmental management system is based on Svensk Miljöbas (The Swedish Environmental Base). The association’s environmental management system is directed towards smaller organisations and their need to present well-functioning and documented environmental work to clients and other stake-

holders. The standard for operations is based on ISO 14001, but with simplified documentation requirements, and focuses on actual environmental improvements and open environmental reporting.

Nilörn Sweden has received the environmental certificate from Svensk Miljöbas, which helps us to:

· Improve resource efficiency in areas such as energy, purchase and waste collection

· Create a commitment with employees

· Be more competitive for clients

· Increase credibility through an independent review of our environmental work

· Reduce environmental impact

· Ensure long-term sustainability work

The Higg Index

Developed by Cascale (formerly Sustainable Apparel Coalition) in 2012, the Higg Index has become the leading module for the standardised measurement of value chain sustainability. The Index offers a suite of tools for different types of businesses. At Nilörn, we mainly use the Higg Facility Environmental Module (FEM). It allows us to understand our environmental impact and the causes, decide where developments are required and set and follow up on objectives.

Resource efficiency

For production facilities owned by Nilörn, we oversee and have control over the energy and water consumed and the management of our waste. Our operations in Belgium, Denmark, Germany, Portugal, Sweden and the UK all use renewable energy through agreements. However, in some countries where we have production and warehouse operations, the availability of renewable energy is limited and we acquire renewable energy certificates (RECS). We aim to reach 100% purchased electricity from renewable sources by 2025 across our facilities.*

Reusable packaging: Recycled EVA
80% of a product’s environmental impact is determined at the design stage

Source: European Commission, Sustainable Product Policy

GHG emissions

We measure our climate impact through both Scope 1 and Scope 2 emissions, as well as parts of Scope 3 emissions. Being part of the global textile and garment industry, the transportation of goods is a key area. We are currently positioned close to the ready-made garment industry and we are working with alternatives such as sea freight and train, to reduce air transportation.

Bag - FSC™ Glassine paper

Biodiversity and ecosystems

Protecting nature is crucial to achieving the Sustainable Development Goals, and the multifaceted biodiversity topic is paramount for Nilörn. Our impact extends from the materials we use to the delivery of the finished product, including biodiversityrelated human rights for workers in our own production facilities, the supply chain and surrounding local communities.

ChemSec

Nilörn is a member of ChemSec’s corporate PFAS Movement, which informs and assists in the phasing out of toxic PFAS chemicals. Properties where these chemicals occur, such as non-stick, water repellence and anti-grease, are not commonly used in the labels and packaging items Nilörn produces, so their occurrence is rare. However, we still think it’s necessary and important to carry out spot-checks and chemical-use control in our production.

*ChemSec – the International Chemical Secretariat – is an independent non-profit organisation that advocates for substitution of toxic chemicals to safer alternatives.

In 2023, Nilorn Belgium’s office garden underwent a makeover, prioritsing the improvement of biodiversity by providing essential flowers and shelter for insects and birds.

Chemical management

Nilörn participates in the Chemicals Group for Textile Companies at the Research Institutes of Sweden (RISE). The Chemicals Group exists to disseminate the latest findings related to chemicals and their potential impact on the environment and human health to its member companies. The chemical guidance developed by the initiative helps the members avoid importing products containing unwanted substances and we use it to inform our Restricted Substance List (RSL). The manufacture of our products requires chemicals, especially in the dyeing and printing processes. We continuously phase out chemicals based on legal requirements, as well as requests by authorities and non-governmental organisations. Our operations must be compliant with all regulations relevant to our business. All Nilörn partners are required to sign an agreement stating that they are compliant with the REACH regulation and our RSL.

Nilörn has been a member of the Swedish Chemicals Group run by RISE since 2017.
Patch: silicone, bluesign®

Circularity

Our mission to add value to our clients’ brands means ensuring we collaborate and share knowledge. We work closely with our clients to design and develop products that have a reduced environmental impact. Circularity is an important part of this work. We help our clients understand how they can choose materials that can more easily be kept in circulation through maintenance, reuse, recycling or composting thereby reducing their impact.

Design and product development

Nilörn emphasises the importance of circularity in its business model, focusing on the lifecycle of products from design to disposal. The company seeks to create products that are not only high-quality and functional but also designed with endof-life considerations in mind, promoting recycling and reuse to minimise waste.

This can mean removing unnecessary elements, reducing the label size so every millimetre is useful and not just decorative and creating print layouts that minimise off-cuts. We avoid mixed materials in a single product so that it is easier to recycle and, where reasonable, make products reusable. We also design for better transport, using flat-packs to avoid transporting air. Nilörn designers work closely with our Material Specialist and product development team to identify and integrate smart materials with a low impact.

Designer’s checklist

Our designers´ checklist guides product development with a set of questions to ensure we focus on sustainability and circularity. We ask ourselves:

We ask ourselves:

– Does the product serve its purpose and is it functional?

– Could we use recycled or biobased, certified materials?

– Is the material suitable for the product?

– Will the item be easily recyclable?

– How can we reduce resource use and create less waste?

– Is longevity or reuse possible instead of single-use?

– Will it age with beauty?

How our products promote circularity

Labels, trims and packaging might be small parts of a garment, but they are highly relevant for circularity. These components can help encourage garment longevity by providing information on washing, drying and repairing to minimise damage. Clear instructions can also help ensure items are correctly disposed of or recycled, if possible, at the end of life.

We integrate a circular approach into our design and product development by advocating the following principles:

· Keep products and materials in use by choosing recycled and/or recyclable materials and finishes

· Design out waste and pollution by keeping control of hazardous chemicals

· Regenerate natural systems by choosing natural, decomposable materials derived from renewable resources

We aim to design products to be recycled at the end of their useful life. Today there are limitations on the recyclability of textile parts and accessories. We continue to monitor developments in the recycling industry to improve the end-of-life options for our products.

The two material cycles in a circular textile industry

CONSTRUCT FABRIC DESIGN GARMENT FABRICATE YARN

DESIGN GARMENT

ASSEMBLE GARMENT

SEED & PLANT

CELLULOSIC FIBRE PRODUCTION

BLENDING & CARDING

COMPOST

REMOVE IMPURITIES

MECHANICAL RECYCLING

CHEMICAL RECYCLING

BIOLOGICAL CYCLE

REUSE RE-WEAR REPAIR

SELL & DISTRIBUTE USE

REUSE RE-WEAR REPAIR

COLLECTING & SORTING

DISMANTLING

Biological materials

Biological materials come from renewable sources. They are natural materials like cotton, lyocell or wool. They can either be recycled or safely decompose into the natural environment (soil, water, etc.) without negatively affecting it, providing food for bacteria and microbiological life.

CONSTRUCT FABRIC FABRICATE YARN

SYNTHETIC FIBRE PRODUCTION

MELTING & EXTRUDING

TECHNICAL CYCLE

DISMANTLING

MECHANICAL RECYCLING

REMOVE IMPURITIES

CHEMICAL RECYCLING

Technical materials

Technical materials originate from non-renewable resources. They are manufactured, inorganic or synthetic materials such as nylon, polyester, plastics and metals. When optimally recycled, they can be used repeatedly in a continuous cycle.

Material team and innovation

We aim to keep ourselves up-to-date and open to exploring next-generation materials and innovative production processes as they emerge. Our Material and Innovation Specialist works with our global Material Team to drive forward innovation at Nilörn and integrate new materials into our product offering.

Preferred Materials

Different materials offer benefits and challenges specific to their functionality and limitations. For each material, we evaluate whether we can source more responsibly produced alternatives. We consider these alternatives “preferred materials”. To provide guidance to alternative material sourcing, Nilörn’s Material Team has developed an internal roadmap: the Nilörn Preferred Materials Index (PMI).

Guidance for new material sourcing

The PMI helps us rate and compare materials within the same category i.e. comparing

conventional products with theirmore responsibly produced sibling.

Each new material that we consider adding to our range goes through an initial funnelling process where we examine aspects such as functional properties, price level and availability together with its sustainability performance and end-of-life options.

The index identifies levels of improvement: From conventional to improved, advanced and ultimately, products we consider fit for the future.

Level D: Conventional

• virgin fossil

• virgin biobased

Level C: Improved

> 30% alternative

fibre content:

• recycled fibres

• organic fibres

Level B: Advanced

• recycled fibres

• organic fibres

• EoL: recyclable, reusable

Level A: Fit for the future

• closed-loop recycled

• regenerative organic

• waste and by-products

• EoL: recyclable, reusable

Responsible chemical management and manufacturing, use of renewable energy.

Based on circular principles

The PMI reflects our vision for the fibres and materials we preference. The index is based on circular principles and covers social, environmental and animal welfare:

• Material health and safety: Raw materials are safe for people and the environment at all use phases

• Renewable resources and energy: Fibres are derived from biobased and/or recycled sources, renewable energy is used for processing

• Material reutilisation: Products and fibres can potentially be reused and/or recycled after end-of-life

• Traceability and transparency: Trace raw materials through the supply chain and back to its origin

Traceability and transparency

Renewable resources and energy

Material health and safety

Traceability and transparency

Regenerative and circular production system

Renewable resources and energy

Responsible use of water

• Water stewardship: Water is used in a way that is socially equitable, environmentally sustainable and economically beneficial

• Positive impact on people, animals and planet: Responsible use of land and soil, ensure human rights and animal welfare

Material health and safety

Positive impact on people, animals and planet

Regenerative and circular production system

Material reutilisation

Responsible use of water

Material reutilisation

Positive impact on people, animals and planet

Our responsibilityOffering more preferred materials

Materials are at the heart of what we do at Nilörn, and we strive to offer not just a wide and varied choice but also an informed and sustainable one. Our material categories for our labels, trims and packaging include woven and printed textiles, plastics, natural materials, metals, heat transfers, leathers, leather alternatives and paper.

Within each category, we offer various options, certifications and standards (see all our standards on page 22-25). The majority of our products are OEKO-TEX® certified and we also offer bluesign® certified products in Europe and Asia.

Our goal is to continuously increase the recycled content of our products and introduce bio-based options over fossilbased where possible. Where animal-based products are used, we ensure high animal welfare standards, as well as offering leatherlike alternatives.

By using recycled, renewable and traceable materials, we hope to substantially reduce the environmental impact of our products. Likewise, when supporting our clients to choose alternative materials, we aim to foster sustainable consumption.

Patch - MADE WITH MIRUM®

Textiles, woven and printed

• Increase the content of recycled yarns and fabrics

• Introduce plant-based options

• Examples: recycled polyester and nylon, organic cotton, TENCEL™ Lyocell

Plastic trims

• Increase the content of recycled plastics

• Introduce plant-based options

• Examples: recycled TPU and silicone, PLA

Natural trims

• Supply natural materials

for trims as an alternative to plastic

• Examples: corozo, coconut and mother-of-pearl

Metal

• We offer alternative options to conventional metal

• Examples: recycled metal and stainless steel

Heat transfer

• Encourage the use of alternative heat transfer labels

• Heat transfers that are made using plant-based or recycled ink, recycled glue and carrier material

Leather

• We aim to ensure high animal welfare standards

• Increase the use of LWG leather

• Supply recycled leather as an alternative to virgin leather

Leather alternatives

• Strong focus on recycled or plant-based alternatives

• Examples: Jacron or Piñatex® and vegan imitation leathers with recycled or plant-based compositions

Paper

• Increase the use of certi- fied and recycled papers for our products

• Introduce paper materials made from alternative and waste fibres

• Examples: sugarcane paper, papers made from agriculture waste or waste cotton

Packaging

• Solutions for packaging in both certified or recy cled qualities

• Polybags and mailers: recycled LDPE from pre or post-consumer plastic waste; fibre-based options: kraft paper, glassine paper or Paptic®

Nilörn’s material targets for core products by 2025:

100% certified paper (FSC™, PEFC) in core products

100% certified recycled polyester (GRS/RCS) in core textile products

The experience when you scan a QR code or tap a NFC tag can be updated over a time.

Adding information to your brand

Nilörn’s Retail Information Service team has developed digital solutions to help our business partners make their products and materials easier to trace and more transparent. With the unique identities used in RFID-tags, NFC-tags and QRcodes, detailed information can be stored and shared between companies and with consumers. Information can be provided by scanning the code with a mobile device on materials, emissions, suppliers, care, how to dispose of responsibly and more. These developments help our clients promote circularity and sustainability.

Photo

People and society

As a signatory to the UN Global Compact, Nilörn upholds principles related to human rights, labour, and anti-corruption. The company fosters a culture that values inclusion, diversity, and ethical practices, ensuring that its global operations respect and enhance the communities they touch.

For Nilörn, as a multinational company operating globally, diversity is essential. It entails responsibility for safeguarding employees’ health and safety and respecting key human rights, such as freedom of expression, freedom of association and the right to fair working conditions. By developing good workplaces and improving in the countries where we have a presence, we can strengthen the welfare and generate positive effects for our most important asset, our employees.

Nilörn core values

Nilörn’s core values help guide every employee on a daily basis in all work situations. They form a common platform and strengthen our teamwork.

Innovation

− offer innovative and superior solutions

Respect – respect and trust each other

Responsibility – take ownership

Human resource policy

The Nilörn HR policy regulates what the company expects of its employees and what employees can expect of the company. The HR policy mainly regulates management responsibility for developing staff, information supplied to all employees, annual performance reviews, payments. The overall objective is that work on gender equality should be a natural and integral part of all our activities and apply to all staff at all levels.

Code of Ethics

This Code provides a guide to the values, behaviours and ways of working for all Nilörn employees; it guides our daily work and covers areas including:

• Compliance with laws and regulations

• Respect in the workplace

• Protection of company property

• Professionalism

Anti-corruption

Nilörn’s Anti-corruption policy outlines the organisation’s mandatory rules and restrictions regarding gifts and other rewards. It also describes the procedures for employees to raise any ethical questions or report any breaches or suspected breaches of the company’s Code of Ethics.

All our employees receive information about business ethics and anti-corruption through our policies.

Whistleblowing function

In accordance with the 2021 Swedish Whistleblowing Act, we have integrated a whistleblowing function to enable employees to report suspected serious irregularities or misconduct. This will help us maintain our strong values and Code of Ethics.

Supply chain requirements

Our goal is to have a fully compliant supply chain and proactively ensure our suppliers adhere to the same high standards we do across social and environmental parameters. New Nilörn suppliers are reviewed by the CSR department, including reviewing previous social audits as well as production capacity and product quality.

New suppliers commit to Nilörn’s policies and guidelines including:

· Supplier Code of Conduct based on the ETI Base Code

· Corporate Responsibility and Sustainability policy

· Animal welfare policy

· Environmental requirements for Nilörn suppliers

· Nilörn supplier handbook

· Nilörn agreement to supply according to RSL

All our suppliers with a specified volume are evaluated annually. Topics evaluated include delivery reliability, product quality, service, product development, economy and environmental approach. The supplier is graded as a result of the evaluation, and, if necessary, an action plan is developed for required improvements.

Auditing tools and organisations

We engage in several external organisations and auditing platforms to ensure a better overview and accountability throughout our own production and supply chain.

Sedex

Sedex, the Supplier Ethical Data Exchange, is a not-for-profit membership organisation dedicated to driving improvements in responsible and ethical business practices. Sedex has created the Sedex Members Ethical Trade Audit (SMETA) – a common audit methodology and report format. At Nilörn, we are audited against SMETA in our own facilities in Bangladesh, China, Germany, Hong Kong, India, Portugal, Turkey and UK. The majority of our external suppliers are also SMETA audited.

Member

Business Social Compliance Initiative (BSCI)

We have external suppliers that are audited and part of the BSCI. BSCI, an initiative of Amfori, is a common and standardised approach for monitoring social standards in all supplier countries for all consumer goods. BSCI is not a certification system; rather it provides a specific process with uniform management instruments for members, suppliers, auditors and qualifiers.

Qarma

We use Qarma’s powerful software and digital checklists for quality control and audits during internal supplier visits. It enables us to efficiently plan, report, review and improve performance.

Head office

Nilörngruppen AB

Wieslanders väg 3 Box 499

501 13 Borås

Sweden

Tel: +46 33 700 88 00 info@nilorn.com www.nilorn.com

Subsidiaries and Partners

Nilörn AB

Wieslanders väg 3 Box 499

501 13 Borås

Sweden

Tel: +46 33 700 88 00 info@nilorn.com

Bally Labels AG

Schachenstrasse 24 5012 Schönenwerd

Switzerland

Tel: +41 62 855 27 50 info@bally.nilorn.com

Nilorn Bangladesh LTD Plot 1361, 5th and 6th fl. Avenue 10 Mirpur DOHS Dhaka -1216

Bangladesh Tel: +88 02 8835912 info@bd.nilorn.com

Nilorn Belgium NV

Brusselsesteenweg 525 9090 Melle

Belgium

Tel: +32 9 210 40 90 info@be.nilorn.com

Nilorn Denmark A/S Kongensgade 31B

5000 Odense C

Denmark

Tel: +45 70 23 16 23 info@dk.nilorn.com

Nilorn East Asia LTD

Unit 1701, 17/F, Westley Square 48 Hoi Yuen Road, Kwun Tong Kowloon

Hong Kong

Tel: +852 2 371 2218 info@hk.nilorn.com

Nilorn Germany GMBH

Itterpark 7

40724 Hilden

Germany

Tel: +49 2103 908 16 - 0 info@de.nilorn.com

Nilorn India PVT. LTD 71/1 First Floor, Industrial Area Najafgarh Road

Moti Nagar

New Delhi - 110015

India

Tel: +91 11 47093583/47091003 info@in.nilorn.com

Nilorn Italy Via Enrico Fermi 40 41012 – Carpi (MO)

Italy

Tel: +39 3381611351 info@it.nilorn.com

Nilorn Japan 9th floor GranDuo IKEJIRI Bldg. 2-32-9 IKEJIRI, Setagaya-ku, Tokyo 154-0001

Japan

Tel: +81 3 64455 5290 info@jp.nilorn.com

Nilorn The Netherlands Brusselsesteenweg 525 9090 Melle

Belgium

Tel: +32 9 210 40 90 info@.nl.nilorn.com

Nilorn Pakistan (PVT) LTD 2nd Floor, Yasir Chambers Gulshan –E-Iqbal, Block 13A

Main University Road P.O. Box 75300

Karachi

Pakistan

Tel: +92 21 349 92151 info@pk.nilorn.com

Nilorn Portugal –Indústria de Etiquetas, LDA

Rua Central de Barrosas, 304 4585 - 902 Recarei – Paredes

Portugal

Tel: +351 22 411 95 80 info@pt.nilorn.com

Nilorn Shanghai Limited

Rm 605, No.258, Chengjiaqiao Road

Minhang District, Shanghai 201103

China

Tel: +86 21 345 512 90 info@sh.nilorn.com

Nilorn Spain

Gran Via de les Corts Catalanes N. 583, Office 302 08011 Barcelona

Spain

Tel: +34 93 609 11 40 info@es.nilorn.com

Nilorn Turkey

Baģlar Mahallesi 49

Sokak No: 50 K:3

Bağcilar, Istanbul

Turkey

Tel: +90 212 657 76 76 info@tr.nilorn.com

Nilörn has been recognised as a Nasdaq ESG Transparency Partner since 2019. To become a partner, companies must display a high level of transparency to their investors regarding Environmental, Social and Governance (ESG) issues.

Nilorn UK LTD Station Works Green Mill Court Cononley N Yorks BD20 8FE

United Kingdom

Tel: +44 1535 673 500 info@uk.nilorn.com

Nilorn USA (East coast) Box 365

Macungie, PA 18062

United States

Tel: +1 201 874 5515 info@us.nilorn.com

Nilorn USA LLC (West coast) 3499 Meier Street

Los Angeles, CA 90066

United States

Tel: +1 949 636 0343 info@us.nilorn.com

Nilorn Vietnam Co. LTD No 65-67 B4 Street

An Loi Dong Ward Thu Duc City Ho Chi Minh City Vietnam

Follow us on

www.nilorn.com

@nilornworldwide

@nilornworldwide

@nilorn worldwide

@nilorn worldwide

Cover - Conqueror Laid 300 g

Body - Scandia 2000 120 g

FSC™ certified paper

Print; Stema Specialtryck AB, Borås, Sweden

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