Spectre_ResponsibleBusiness Report 24_25 by spectre

Responsible Business Report

2024/2025

MANAGEMENT LETTER

Being the second generation of the owner family at Spectre, I’m proud to say that doing business responsibly has always been core to Spectre. Over the last few years, we have made a lot of effort to translate that consciousness into a process of identifying and assessing the broad range of impact risks and opportunities of our business model across the value chain and consequently setting measurable targets and specific actions to address those. The process led to the development of Spectre’s Responsible Business Strategy 2030.

”As a garment manufacturer we depend a lot on people to skilfully and consciously develop and produce the garments, and this turns our employees into the very foundation of our business. This is why creating a good and attractive workplace is a logical choice for us, and something that truly makes sense”.

As a specialized, functional garment manufacturer, we are midway in the value chain where many things must come together to create a high-quality product. In this position we have close partnerships both with the brands we produce for and with our fabric and trims suppliers. This relationship defines our role and responsibility towards environmental and social impacts in the value chain. Impacts that are true to the B Corp mindset.

Moreover, more than ever we need to make sure that we produce in an environmentally sound way. Our ambition is to be among the companies that lead the change to a responsible and sustainable industry by setting the example and to excel as a lighthouse among manufacturers.

“We have publicly set Science Based Targets on climate aiming for ambitious reductions by 2030 and net zero by 2047 – the year our company turns 100 years old”

These climate targets put us in the same boat as our likeminded brand partners and suppliers in building a road to a decarbonized apparel value chain and facing these challenges together.

To do so we hope to further build on the strong partnerships that we have and contribute, as much as we can, through industry initiatives like Cascale and European Outdoor Group, and other brave initiatives that we are proud members of.

The journey towards giving back more to the planet than we take, and towards net contributing positively to the local community, which we are part of, is long and with many obstacles to overcome. To remain focused, we concentrate on staying true to our values and make real progress every year.

Results worth mentioning are the reduction in GHG emissions in our own operations by 96% from 2022 by installing on-site solar energy systems, purchasing renewable energy and switching to electric cars.

Furthermore, all our factories in Vietnam are now Fair Trade certified – a testament to our high social and environmental standards and a result of partnering with leading responsible brands.

We have also made sure to implement content claims certifications like GRS, RWS and OCS in our factories. This way we can enable our customers to make reliable claims about the more sustainable choice they have made in sourcing materials for their product.

“With an ambitious action plan in place to secure the strategy implementation I am confident we will continue seeing progress on our responsibility journey year by year.”

Jesper Klausen Co-owner, Chief Business Development & Responsible Business Officer

2024/2025 HIGHLIGHTS

Officially validated near-term and net-zero targets by SBTi

All factories in Vietnam Fair Trade certified

Higg FSLM top quartile target – Driving social performance benchmark.

100% permanent contracts. No temp or zero-hour workers

More than 90% of employees receive a living wage

100% renewable electricity in Vietnam factories

Improved employee satisfaction in Vietnam – Positive trend confirmed by survey.

Targets set to reduce own operations’ emissions by 42% and value chain emissions by 25% by 2030 (from 2022 baseline)

KEY FIGURES

2024/2025

3’671’931 garments produced

1’483 tons of fabric used 47% of fabric composed of recycled materials

7’732 m3 of water consumed

10’182 MWh of energy consumed

3’849 employees worldwide (year average)

Spectre’s carbon footprint

The environmental footprint from Spectre’s manufacturing of a JACKET¹ compared to last year

2.53 kWh of energy consumed: -8% 1.92 liters of water used: -21%

0.05 kg of CO2e emitted in Spectre’s operations: -52%

197 g of waste: -38%

1 For a typical jacket requiring 70 attributable minutes in production

OUR TRAIL

VISION & MISSION

Our vision

We want to become the outdoor sports and activity brands’ preferred development and manufacturing partner for functional garments.

Our mission

We work to strengthen our customers’ brand value through our competence in the development and manufacturing of high-quality functional clothing in a sustainable and responsible way.

OUR BUSINESS MODEL

We are manufacturing partners to some of the world’s leading outdoor and performance brands, and we specialize in transforming globally sourced technical materials into high-quality, functional garments — built to last and produced with care for people and planet.

We believe that when we aim high together, we create more than strong products. We build strong relationships based on the philosophy of the triple bottom line where people, planet, and profit go hand in hand. That’s what drives our shared, long-term success.

“As part of the B Corp community, we believe that our company must serve as a vehicle for creating a positive impact on employees, local communities and the environment.”

Our factories in Vietnam, supported by competence centers in Europe, are where designs come to life. Here, we turn fabrics and trims into finished garments that are quality-assured, custom packed, and shipped to our customers’ distribution hubs across Europe, North America, and Asia.

We collaborate closely with our brand partners to ensure that products are not only technically advanced and manufacturable but also meet growing expectations for sustainable and responsible production. Design, marketing, and distribution lie with the brands. Our focus is on co-developing the product, managing the entire production process, thereby ensuring production is efficient, ethical, and traceable. Responsible sourcing is a shared commitment between our brand partners, our trusted

suppliers, and ourselves, and we’re proud to work with partners who expect more.

Positioned at the center of a complex value chain, we interact daily with suppliers, logistics partners, and global brand teams, and we manage compliance with social, environmental, and quality standards, monitor potential risks, and keep production on track. When challenges arise, we act fast — always with a focus on minimizing impact and maximizing outcome.

As regulatory demands increase, particularly in the EU and US, we are not just keeping pace, we’re moving ahead.

Our ambition is to lead through action and transparency, showing what responsible manufacturing can look like at scale.

We’re proud to be partners of a portfolio of renowned international brands — primarily headquartered in Europe and North America, many of which have an increased focus on the Asian market, and we take our role seriously:

To develop, manufacture and deliver garments with consistent quality, drive progress in our industry, and help strengthen the value of the brands we work with.

OUR LOCATIONS

Office, Group HQ

SPECTRE A/S

Ikast, Denmark

Competence Centers

SPECTRE GMBH Münich, Germany

SPECTRE LATVIA SIA

Kalnciems, Latvia

Production sites

SPECTRE GARMENT TECHNOLOGIES VCL

Nam Dinh, Vietnam

Thai Binh, Vietnam

SPECTRE GARMENT TECHNOLOGIES AN GIANG VCL

An Giang, Vietnam

PEOPLE AND VALUES

At Spectre, we uphold a set of long-standing core company values that reflect our approach and our attitude towards colleagues, customers, and other business partners. Our work is driven by the ambition to achieve the best possible results, create a high-quality working environment, and ensure our customers are always satisfied.

At Spectre, everything we do is driven by one word: Ambitious.

It fuels our innovation, shapes our sense of responsibility, and defines how we build partnerships both inside and outside the company. Ambition is a mindset and a shared promise across teams, locations, and functions. It’s what connects us.

Dedication

We show passion and commitment in everything we do. We strive to perform tasks to the best of our ability and remain loyal to the company and our colleagues. We always go the extra mile for our customers. Through our passion and commitment, our partners experience the clear benefits of collaborating with us.

Responsible

We care about sustainability and act with integrity. We take responsibility for our workplace and the external environment, solving tasks responsibly to achieve the best results for our company, customers, and business partners. This includes finding balanced solutions for long-term sustainable business practices.

Spectre Core Value Model

We trust and help each other and live our valu es

Show passion and commitment in what we do

D R I v e Dedication Responsible

We care for sustainability and act with honesty

Our performan ce exceeds expectations “not just to be good, but to be the best”

Integrity

We trust and support each other, staying true to our values, company policies, and guidelines in our work and interactions with business partners and colleagues. By trusting and helping each other, we form a strong team capable of achieving our goals.

Proactive

Our performance exceeds expectations—not just to be good, but to be the best. By anticipating situations, we strive to find the best solutions and leverage the advantages of being one step ahead. Our ambition to be the best sets us apart, as our customers seek the best business partners in the market.

RESPONSIBLE BUSINESS GOVERNANCE

Spectre has established a responsible business governance framework that emphasizes accountability and transparency, promoting responsible business practices and laying a solid foundation for sustained long-term value creation. At the core of our governance system is the Board of Directors, which holds ultimate oversight of Spectre’s sustainability strategy and performance. It includes a dedicated sustainability specialist, as well as a Responsible Business Director—both of whom bring subject matter expertise and a strong commitment to embedding responsible practices across the organization.

To ensure ongoing visibility and effective decision-making, the Board receives quarterly updates on Responsible Business (RB) performance, integrated within our broader financial reporting. This enables sustainability considerations to be factored into core business reviews and long-term planning.

RB Committee, Vietnam

Meets on a monthly basis

Review progress in non-conformances, key projects/initiatives

Set out plans for the following month

Key responsible person from Responsible Business

Executes RB Strategy, ensuring alignment of RB procedures, policies, initiatives and reporting across the group

Communicates on progress to

Spectre’s Responsible Business committee consists of senior representatives from key business areas, including sourcing, marketing, finance, commercial, executive leadership, and Responsible Business. The committee is collectively responsible for aligning sustainability goals with the overall business strategy and for disseminating priorities and practices within their respective functions. Each member is accountable for sustainability-related performance within their area, ensuring a consistent and embedded approach throughout the company. Responsible business is not a standalone function at Spectre—it is an integral part of strategic and operational planning.

We maintain internal sustainability reporting mechanisms to ensure timely, data-driven decision-making and performance monitoring. In addition to quarterly reports to the Board, internal performance reviews and working group updates allow continuous alignment with our goals.

Spectre also maintains transparent communication with external stakeholders through public sustainability reporting, stakeholder consultations, and our participation in multi-stakeholder initiatives. In order to continuously improve every area of our business we have established Process Excellence Organization (PEx) where dedicated team members meet each month to discuss the progress on ongoing improvement projects and initiates the new ones.

Board of Directors

Ultimate oversight of sustainability/ responsibility

Accountable as a whole, one of BoD being a specialist in RB area

Receives a quarterly RB report which is integrated in the financial report

Group Responsible Business Director

Group RB Committee

Meets quarterly to report on KPIs, progress in the last quarter, plans for the next quarter

Consults on overall direction of RB activities and new initiatives

Oversees all sustainability activities

Accountable for all sustainability activities within their function

Functional responsibilities

Supply chain

CSCO responsible for supplier policies on due diligence and sustainability initiatives in supply chain

Sourcing Manager carries out the supplier due diligence and manages supplier sustainability data

HR+CSR – Vietnam & Latvia

Ensure management of RB according to set procedures and policies in compliance with management standards

Employees as well as employee representatives are involved in decision making

Others (managing directors, Sales, Finance)

Are informed and consulted on sustainability progress by RB Committee and provide minor input to the process (e.g. finance prepares RB related data for the final report)

STRATEGY

Spectre’s

Responsibility Philosophy: TO MANUFACTURE IN A SUSTAINABLE AND RESPONSIBLE WAY

The world is changing rapidly. Consumer beliefs, regulatory frameworks, and industry expectations are evolving at an unprecedented pace, demanding greater transparency, circular material use, and accountability for supplier practices. At Spectre, we recognize that sustainability is not just a choice. It is an essential foundation for long-term success. Our intention is clear: to balance economic growth with environmental and social responsibility. This means continuously evaluating and adjusting how we operate, understanding the impact our business has on the surrounding world, and proactively addressing both risks and opportunities. Most importantly, it means embedding responsibility into the core of our business—not as an afterthought, but as a guiding principle for growth.

At Spectre, we are not here solely for financial profit. On the contrary, we believe in using our company as a force for positive change – fully in line with the B Corp mindset - creating value not just for shareholders but for all stakeholders—employees, environment, customers, suppliers, and society at large.

To achieve this balance, we are committed to:

• Create good jobs that ensure fair wages, safe working conditions, and employee well-being.

• Be on the leading edge among peers on climate and environmental ambition

• Becoming a valuable partner for customers in tackling their sustainability challenges.

• Contribute positively to society, actively supporting social and environmental initiatives.

Recognizing the need for a comprehensive sustainability strategy, Spectre embarked on a structured development process in 2023/2024, which continued through 2024/2025. This strategy aims to address the limitations of our current business model while tackling the most pressing sustainability issues identified through a Double Materiality Assessment.

Customer insights played a crucial role in shaping our priorities. With 80% of our revenue generated from key brand partners, we sought their perspectives through surveys and discussions. Their feedback highlighted GHG emissions as the top priority, followed closely by waste management. In the social domain, brands emphasized working time, human rights, labor conditions, and living wages as critical areas for improvement.

The Double Materiality Assessment identified relevant sustainability topics, but to ensure maximum impact, we have strategically clustered them into three core focus areas:

1. GHG Emissions – Reducing carbon footprints across operations and supply chains.

2. Resource Outflows – Minimizing waste and optimizing material usage.

3. Social Responsibility – Ensuring fair wages, responsible working conditions, and ethical supplier management.

“Only by taking bold steps to reduce our impacts we can grow without becoming part of the problem but instead part of the solution to global and local sustainability challenges.”

- Jesper Klausen, Chief Business Development and Responsible Business Officer (CBRO)

Becoming the outdoor sports & activity and manufacturing partner

Mission : Strengthen the customer brand value by our competence in development and way Vision

ENVIRONMENTALLY HUMAN-CENTERED

We produce high-quality garments in high-quality work environment – and we expect the same of our suppliers

A safe, attractive and engaging working environment at Spectre

We have a net zero climate environmental impact

On a science-based path

Spectre’s supply chain meets high standards of social risk management Spectre is an inclusive workplace and contributes to local communities

Data management & reporting

Governance

Training & capabilities

Reduced impacts on resource

Responsible environmental practices

We want to transparent about the sustainability footprint of

We want to work towards our sustainability targets as one Spectre

We want to continuously educate ourselves to be able to spar

Without decisive action, a linear business model—where materials enter and products exit— would lead to an unsustainable increase in environmental impact. To ensure that growth does not come at the expense of the planet or people, sustainability must be fully integrated into Spectre’s future trajectory.

Our commitment to sustainability is now formalized under the Responsible Business Strategy 2030, a framework that replaces the conventional CSR (Corporate Social Responsibility) approach. The shift is not just about terminology—it is a recognition that responsibility is not an initiative, but a fundamental aspect of how we do business.

This strategy is built like a house, structured around key elements:

The roof represents Spectre’s overarching vision and mission to manufacture in a sustainable and responsible way.

Vision activity brands’ preferred development partner for functional garments

and manufacturing of high - quality functional clothing in a sustainable and responsible way

ENVIRONMENTALLY SOUND

climate footprint and minimal across the value chain

path to net zero

LEADING THE CHANGE

We collaborate with our customers to produce garments in the most sustainable and responsible way

• Spectre provides eco-design data and services to customers

resource use

environmental management

• Production relies on responsible suppliers

of our operations, products and suppliers.

Spectre – empowering everyone at Spectre to contribute their best.

spar with our partners on sustainability – for customers, suppliers and internally.

The pillars represent our three core action areas:

Leading the change

Focusing on the commercialization of Spectre’s leading sustainability performance

Environmentally sound

Addressing the environmental impacts in Spectre’s operations and in the supply chain

Human-centered

Bringing into focus our efforts to make Spectre an even better workplace, ensuring social standards in the supply chain, promoting inclusive practices and contributing to society.

The foundation consists of the enabling factors that drive real change—transparency, cohesion and continuous improvement.

Double materiality guides our priorities

As part of our commitment to sustainability and transparency — and being proactive in adopting the Corporate Sustainability Reporting Directive (CSRD) requirements — we conducted our first Double Materiality Assessment (DMA) in 2022, even before the final regulatory framework was approved. In 2024, we reviewed and updated our DMA methodology to align with the latest European Sustainability Reporting Standards (ESRS), ensuring a robust and compliant assessment process.

Our double materiality approach, based on European Sustainability Reporting Standards (ESRS), aligns closely with the B Impact Assessment data points. This ensures that both frameworks work together to provide transparency on Spectre’s sustainability performance.

Our assessment follows the double materiality principle, considering:

Impact materiality: How our business operations affect people and the environment, both positively and negatively.

Financial materiality: How sustainability-related topics create risks and opportunities for the Spectre Group, potentially impacting financial performance.

We will review the DMA annually in a light version unless significant changes occur in our business model or the global market. If major changes are identified, a more extensive review will be conducted, involving relevant stakeholders.

impact

have

4.

Scoring and prioritization of IROs

All IROs were scored using a structured methodology aligned with ESRS 1. Topics above a defined threshold were included in our sustainability reporting. Disclosures that are voluntary or within a phased-in period were excluded from this year’s report

5. Confirming material sustainability matters

The Responsible Business Committee validated the final list of material IROs. Although ESRS E-4 (Biodiversity and Ecosystems) and ESRS S-3 (Affected Communities) were identified as material, they are not included in this year’s report due to the need for additional policy and target development.

No IROs were identified for consumers or end-users, as we operate strictly B2B and do not engage directly with consumers.

Our value chain and shared responsibility

Our brand partners are responsible for design, marketing, and distribution to retailers or end-users. They also nominate most of the suppliers and materials, making supply chain responsibility a shared commitment.

To date, we have gathered insights into Tier 2 material suppliers through their FEM (Facility Environmental Module) and FSLM (Facility Social & Labor Module) assessments.

In the coming year, we will implement a full Responsible Supplier Framework to integrate environmental and social practices into a broader supplier evaluation process. We are aware that many key suppliers are located in high-risk countries — such as Taiwan, China, and Thailand — and this factor is carefully considered in our IRO identification and Due Diligence Management Approach (DMA).

Outcomes of double materiality assessment

As a result of the DMA, we identified 34 material subtopics, categorizing them as follows and colored in the chart: highly material (dark blue) - 9, mildly material (colored in blue) -8 and the rest 17 as moderately material (the green). The identified IROs are detailed in the corresponding topical sections.

The categorization was applied as follows: All IROs were scored on a scale from 1 to 5, with materiality activated at a score of 3 or higher.

Mildly material:

IROs scoring exactly 3 points (classified as either impact material or financially material, but not both).

Moderately material:

IROs scoring above 3 but below 4 (also classified as either impact material or financially material).

Highly material:

IROs scoring above 4 and/or classified as double material (both impact and financial materiality).

DMA topics

E1 Climate change

E2 Pollution

E3 Water

E5 Waste

Category Raw materials

Textile production Apparel

Typhoons and other EWEs in SE Asia

Extreme heat

Contribution to global warming

Switch to renewables

Production processes polluting air

Water pollution of textile production

Water pollution of sea freight

Pollution from chemicals

Substances of concern in products

Microplastics pollution from synthetic fabrics

Water consumption in textiles production

Water withdrawals in textiles production

Grey water and wastewater discharges

Textile waste and leftovers

S1 Own workforce Demand

Limited

Living

S2 Workers in the value chain

G1 Governance, risk management and internal controls

Informality and temporary contracts in materials supply chain

Safe and fair working conditions

Forced labour

Water quality in Asia

Apparel production

Distribution Use Waste

Time horizon changes carbon footprint optimization

culture whistle-blowers lobbying of sustainability related legislation management management compliance accidents employees complaints fluctuations and relocation of operations violations due to peak seasons overtime for white collar employees policy efficiency

Pollution from chemicals

Targets and actions

As previously mentioned, Spectre’s Responsible Business Strategy 2030 was developed based on the findings of the Double Materiality Assessment (DMA).

However, it extends beyond the DMA — the B Corp philosophy and our core beliefs are also embedded in the strategy to ensure Spectre continues growing into the company we aspire to be.

To address the negative impacts and risks identified during the DMA, we must implement policies, set targets, and define key performance indicators (KPIs).

These tools will help measure progress, track performance, and guide the actions needed to reach the Group’s goals.

To support this, we have developed the Responsible Business Deployment Plan, scheduled for execution between 2025 and 2030.

Most of the planned activities, outlined below, will take place within the first two years, as new initiatives are expected to emerge from existing ones. Additionally, several initiatives will establish recurring events over the coming years — including physical events and ongoing reporting and improvement cycles — that will continuously drive Spectre toward its targets.

S1-Own Workforce

S2- Workers in the value chain

E1- Climate change

E2- Pollution

E-3 Water and marine resources

ES.2.3

ES.2.4

Some activities impact targets across multiple pillars — particularly new frameworks or policies. While all targets are addressed through initiatives, some KPIs will not be tackled in the initial years. This is not due to oversight, but because the related initiatives were not prioritized for phase one.

The table below outlines the material topics for which targets have already been set, along with the initial actions planned to achieve them.

G1Governance, risk management and internal controls

Protection of whistle-blowers

Political engagement and lobbying activities

HC.1; HC.3

HC.1; HC.1.4

STRATEGY TARGETS

ES.3.1 Achieve leading environmental performance of Spectre’s factories

ES.3.2 Increase % LEED certified production

ES.3.3 Promote transparency of environmental impacts in the supply chain

ES.3.4 Improve access to safe water for people in Vietnam

ES.3.5 Balance environmental plastic footprint

LC.1 Spectre provides eco-design data and services to customers(1)

LC.1.1 Build capacity to perform product LCAs

LC.1.2 Ensure availability of material/supplier specific information for PEF

LC.1.3 Aid customers in designing products to improve durability and longevity

LC.1.4 Cooperate with customers to improve product end-of-life treatment

LC.2 Production relies on a responsible supply chain

LC.2.1 Develop due diligence processes in line with CSDDD

LC.2.2 Prioritize sourcing from responsible suppliers

LC.2.3 Ensure supply chain traceability of at-risk materials

LC.2.4 Suppliers commited to Spectre's requirements

Science

based targets

Science based targets

In March 2024, by committing to set net-zero Science-Based Targets (SBTs), we reinforced our proactive approach to tackling climate change. By the end of the same year, our targets were officially validated by the Science-Based Targets initiative (SBTi), marking a significant milestone in our sustainability journey.

Our science-based targets reflect our commitment to limit global warming to 1.5°C. Having our commitment publicly verified by a third party demonstrates that we take tracking and reporting seriously — even amidst the challenges faced across the apparel industry.

We commit to:

“...reduce carbon emissions by 42% in our own operations, and by 25% in the value chain by 2030 from a 2022 baseline. These

reductions

will put us on a course to become a net-zero climate impact business by the time Spectre turns 100 years old — in 2047.”

Our plans to grow make these targets more ambitious than the numbers alone suggest. Setting bold targets is an important first step, but real progress comes from concrete action.

We have conducted a comprehensive analysis of our emissions, identifying key impact areas. More than 90% of our emissions originate from our value chain — particularly in materials production, logistics, and distribution. This is where strong partnerships with suppliers, brand partners, and industry stakeholders will be essential to achieving our goals.

At the same time, we recognize the need to address emissions that fall entirely within our own operations, and we are already taking meaningful steps in that direction.

Progress in 2024/2025

Progress in 2024/25

Science-based targets remain one of the cornerstones of Spectre’s Responsible Business Strategy 2030, setting a clear direction for initiatives aimed at reducing GHG emissions. Over the past years, we have made significant strides toward decarbonizing our operations — and these efforts have continued into 2024/25.

Investing in Renewable Energy

Solar panels were installed on the rooftop of our headquarters in Denmark, further accelerating our transition to renewable energy. We continue to purchase Renewable Energy Certificates (RECs), covering the entire amount of grid electricity used in Vietnam.

To further reduce emissions from our own operations, we have begun replacing internal combustion engine (ICE) vehicles with electric vehicles (EVs) in Vietnam.

At our Vietnam facilities, we introduced charging stations for electric scooters last year, allowing employees to charge their vehicles for free. This year, we are launching an awareness campaign on sustainable mobility. As part of the initiative, two employees at each facility won a brand-new electric scooter in our New Year’s lottery.

”An electric motorbike is a great vehicle, fitting perfectly with the trend of doing better for the environment while also saving on fuel. I and others at Spectre support environmental causes.”

Mrs. Nguyen Thi Hoa Pattern Marker Staff from PPD dept. - Nam Dinh

“Using the electric scooter, I can say that it’s easy to drive, lightweight, safe. I am happy about its battery range and that riding it is better for the environment than a regular scooter. In addition, Spectre also provides charging stations which are very convenient and thoughtful.”

Mrs. Nguyen Hai Yen Worker in line 07 – Nam Dinh

Waste management

At the beginning of the fiscal year, we selected a new waste management contractor for our Nam Dinh and Thai Binh facilities. This ensures that fabric waste is either recycled or incinerated with energy recovery, and that paper, cardboard, plastic, and metal waste is systematically recycled.

Even though we’ve already taken major steps — especially in decarbonizing our own operations — we recognize that the biggest challenges still lie ahead. As we move forward, we remain committed to integrating sustainability across all operations, strengthening industry collaboration, and continuously seeking new ways to reduce our environmental footprint.

Decarbonization path

The industry increasingly acknowledges the urgent need for climate action — a fact reinforced by the findings of our DMA. Membership requirements from organizations like Cascale (SBT validation) and EOG (Race to Zero) highlight this growing recognition.

However, many stakeholders still face difficulties turning these commitments into concrete action — particularly in tackling value chain emissions, where influence is limited.

For Spectre, meeting necessary emissions reduction targets requires close collaboration with both suppliers and customers. Through multi-stakeholder initiatives and trusted partnerships, we aim to drive collective progress and contribute to both our own and global climate targets.

We have now maximized rooftop photovoltaic installations wherever feasible. This year, additional solar panels were installed at our headquarters in Denmark.

To offset non-renewable energy use in Vietnam — where most of our operational energy is consumed — we purchase RECs. The remaining fossil fuel energy in Vietnam is used mainly for company vehicles.

This year, we purchased our first EV in Vietnam, increasing the EV share of our global fleet to 48%. Additional charging stations were installed at our offices and factories to support the transition. With employee commuting accounting for 8% of our Scope 3 emissions, switching to EVs remains a key strategy for carbon reduction.

We are also working to optimize inbound shipments by collaborating with our logistics partner, DSV — a company with validated science-based targets. DSV now operates 30% of its truck fleet on biofuel, directly supporting our upstream emissions reduction goals.

Collaboration and data integration

Decarbonization requires strong collaboration — supported by reliable data to guide decision-making. One of our next steps involves integrating Higg FEM data into our GHG inventory.

Before this can be implemented effectively, we must strengthen relationships with our Tier 2 suppliers to better understand their local processes and contributions to material-related emissions.

Upcoming EU requirements such as the Digital Product Passport (DPP) and expanded life cycle assessments (LCAs) will raise the bar for transparency. Meeting these expectations will require collective effort from material manufacturers, brand partners, and Spectre as the final assembler.

Because raw materials are the largest contributor to our emissions, collaboration with brands and producers is critical. Together, we must transition to preferred materials, improve supplier performance, and support our partners in setting climate targets, adopting renewable energy, and enhancing energy efficiency.

SPECTRE’S MAIN DECARBONIZATION LEVERS

Materials

› Supplier energy efficiency and switch to renewables

› Customer switch to preferred materials

› Recycled fibers, packaging

› More efficient production technologies

› Local sourcing

› Material efficiency

› Reduction of leftovers

› Incoming material quality means less waste

› Waste recycling in own operations and supply chain

Circular business models

› Sustainability services: 3D product development, repair, product developement/enviromental optimization as service etc.

Own operations

› Switch to renewable energy

› Energy efficiency improvement Transport

› Route optimization

› Reduction of airfreight

› Switch to biofuels

› Incentivizing better commute options

ENVIRONMENTALLY SOUND

Energy and emissions

Material impacts, risks and opportunities (IROs)

As a global company with sourcing and manufacturing primarily in Asia and distribution to clients in Europe,North America and Asia, Spectre has a direct impact on climate change and the environment. We have already taken the first steps in analyzing the resilience of our strategy and business model to climate change by assessing the risks. Climate issues are addressed in our Responsible Business strategy, Environmental Policy, Code of Conduct and in our overall business model.

We actively address these impacts through the implementation of our Responsible Business Strategy, which includes decarbonization efforts within our own operations and collaborative engagement with suppliers and brands to reduce GHG emissions across our value chain. While the goals have been defined, not all key performance indicators (KPIs) have been fully implemented yet. Several of these are scheduled to be activated during the upcoming financial year 2025/2026.

Typhoons and other N; R Upstream EWEs in SE Asia Own operations

Actual Yes Downstream

Extreme heat N; R Upstream Potential Yes Own operations

[N- negative impact; R-Risk]

At the same time, extreme heat is an increasing concern. With more days exceeding 35°C, ensuring adequate cooling systems will be essential to maintain production efficiency and protect employee well-being. Similar heat-related challenges may also affect our suppliers across Asia, requiring investments in better cooling infrastructure to maintain material quality and ensure safe working conditions. The financial impact of these risks can be measured through investments in cooling systems, higher electricity costs and decreased efficiency due to poor working conditions in case a proper cooling Identified IRO Category Value chain Actual/Potential Target

A significant portion of Spectre’s production is based in Vietnam, a high-risk country for tropical cyclones and extreme heat, according to the WWF Risk Filter. This year, our Nam Dinh and Thai Binh facilities were impacted by a typhoon, causing production disruptions and minor damages. Similar extreme weather events are likely to recur, posing risks such as building damage, operational halts, and supply chain delays, especially as key Tier 2 suppliers in China and Taiwan face the same cyclone risks. Additionally, typhoons, hurricanes, and floods can have severe social impacts, including job losses, reduced working hours, and economic strain on affected communities. While past natural disasters in Vietnam have not led to significant financial losses, the inherent financial risk remains substantial, as damages from such events are not insured.

system is not in place. These risks are scientifically backed, and we have already witnessed their effects at our Vietnam sites. To mitigate risks associated with climate change—and other unforeseen events, Spectre has established a comprehensive emergency response procedure. This protocol outlines how to act swiftly and effectively in case of emergencies. In many cases, natural disasters such as storms or floods can be anticipated in advance. This allows us to carry out preventive measures and contingency planning to safeguard our employees, assets, and operations.

Ensuring a safe and comfortable working environment during extreme heat conditions is also a key priority. To support this, we have set a target to produce more than 90% of our garments in LEED-certified factories. Our An Giang facility, built in compliance with the LEED Gold certification, is designed to support climate resilience by incorporating energy-efficient systems, enhanced ventilation, and heat-mitigation features. Similarly, our Nam Dinh factory, which is currently working toward LEED O&M certification (expected to reach in 2026/27 fiscal year), is in the process of implementing advanced air quality improvement systems to further enhance indoor environmental quality and employee well-being. While currently only our An Giang facility holds LEED certification, its growing contribution to total production minutes has positively influenced our performance on this KPI. Any new Spectre facility, including our exciting Spectre Garment Technologies Thai Binh (due for opening summer 2026), will also be LEED-certified.

Existing buildings that meet high sustainability standards can attain LEED operations & maintenance certification.

LEED O&M covers the same topics as new building certificate but with more emphasis on energy efficiency and materials used in mainteance:

Integrative process Energy and atmosphere

Location and transportation

Sustainale sites

Water efficiency

Materials and recources

Indoor envrionment

Contribution to

The textile sector is known for its major negative impact on the environment and its contribution to global carbon emissions, with the majority originating from Tier 2 and Tier 3 production processes. These emissions, which we have limited direct influence over, pose a significant negative impact on our sustainability targets.

Additionally, high GHG emissions contribute to climate change, leading to more extreme weather events, ecosystem disruptions, and long-term environmental and social consequences. At the same time, increasing scrutiny on product-level emissions presents an opportunity. While Lifecycle Assessments (LCAs) have traditionally been the brands’ responsibility, we see potential in actively contributing to product development by suggesting lower-carbon materials and innovative designs, as well as focusing on digital solutions that can reduce waste thru better fabric utilization. Though LCA reporting is not mandatory, it aligns with Spectre’s RB strategy, offering a competitive edge.

Switching to renewable energy is a key positive impact in reducing emissions and ensuring long-term energy cost stability. Already 95% of our own operations are powered by renewable energy, and we see further potential in collaborating with brands to encourage our suppliers to transition, thereby reducing the carbon footprint of raw materials.

own operations

Own operations

Business operations and manufacturing processes inherently consume energy, making this the primary source of emissions within our own operations. To reduce our climate impact, we are focused on improving energy efficiency and transitioning to renewable energy sources.

In Vietnam — where most of the Spectre’s production takes place — electricity is the dominant energy source. Air conditioning, which is essential for maintaining safe and comfortable working conditions, accounts for the largest share of electricity consumption. This is followed by production equipment such as sewing machines, air compressors, and various types of specialized machinery.

As such, switching to renewable electricity has been a key strategy in reducing our environmental footprint.

Currently, two out of three Spectre facilities in Vietnam are equipped with rooftop solar panels, supplying 20% of their electricity needs.

However, due to limited rooftop space, we began purchasing Renewable Energy Certificates (RECs) in the 2023/24 financial year to cover the remaining electricity use. Through this combined approach, we have now achieved a full transition to renewable electricity across our Vietnam factories.

The only remaining non-renewable energy consumption in Vietnam comes from fuel used by company cars and other combustion engines — accounting for just 2% of total energy use. Even though this figure is expected to decline, we continue transitioning to electric vehicles.

The first step has already been taken: an electric car was introduced at the Nam Dinh facility in early 2025. We expect to expand the electric fleet further in the 2025/26 business year.

Energy consumption in Spectre Vietnam factories

Energy consumption in Spectre’s operations by percentage by type of energy

At Group level, the share of renewable energy is slightly lower due to non-renewable electricity use at one of our Latvian production sites and the fact that our European car fleets are not yet fully electric — although an increasing number of vehicles have already been replaced with electric models. Despite an 18% increase in overall energy consumption driven by higher production volumes, the proportion of renewable energy has also risen, reaching 95%. This progress is largely attributable to the high output from our Vietnam facilities, which significantly influence the Group’s overall energy profile.

biomass (also comprising industrial and municipal waste of biologic origin, biogas, renewable hydrogen, etc.)

In Europe, we operate production sites — all located in Latvia — along with our headquarters in Denmark and an office in Germany. Although the German office runs on 100% renewable electricity, its energy data is not included here, as the office is rented, and utility invoices are not received. However, its energy use is estimated and reported under Scope 3.

Across our European operations, the share of energy from renewable sources reached 78% in the 2024/25 financial year. The largest contributor is the use of wood pellets for heating at our Latvian sites. At our Danish headquarters, we benefit from municipal district heating, 76% of which is generated from renewable sources. When it comes to electricity, nearly all of it is renewable — with one exception: one Latvian production facility currently lacks access to renewable electricity, accounting for approximately 15% of our total electricity consumption in Europe.

Although our Danish office already operates on 100% renewable electricity, we took an additional step at the end of the financial year by installing rooftop solar panels. This initiative will enable on-site generation of a portion of our electricity, further reducing our environmental footprint and strengthening our energy independence.

Energy sources in Spectre Europe locations

GHG Inventory summary

In the 2024/25 financial year, we observed a slight 3% increase in GHG emissions intensity per minute of production compared to the previous year. However, when benchmarked against our base year of 2022/23, we achieved a substantial 50% reduction, reflecting strong progress toward our long-term climate targets.

We view fluctuations in total emissions and their intensity as a natural part of our decarbonization journey. As our operations expand, we anticipate that major investments in facilities and equipment will lead to temporary increases in absolute emissions. These investments, however, are essential to enable greater production capacity and long-term efficiency gains. This dynamic was visible in the 2024/25 increase in emissions from capital goods, as growing production demands in the latter half of the year required additional workforce and new machinery thus reaching 6% share of total Scope 3 emissions.

One of the key challenges ahead is reducing absolute GHG emissions in alignment with our Science-Based Targets (SBTs), while simultaneously managing projected growth in both output and headcount. This highlights the importance of deploying our climate strategy successfully and embedding sustainability into every operational decision.

Already in 2024/25, employee commuting emissions increased by over 30%, driven by a growing workforce and a 5% increase in average commuting distance. As one of the few Scope 3 categories where we have direct influence, commuting remains a critical area of focus. However, this year total emissions from commuting reached 8% from total Scope 3 emissions being third biggest category after purchased goods and services and downstream transportatioin. In Vietnam, 94% of commuting is still done via fuel-powered mopeds, which emit nearly five times more CO₂ per kilometer than electric alternatives. Encouraging a transition to electric vehicles, especially two-wheelers—will be key to reducing our commuting-related emissions.

We are also encouraged by a 52% reduction in emissions from business travel compared to the base year, demonstrating the impact of more conscious travel decisions resulting in 1% share in Scope 3 emissions. While in-person meetings remain valuable in certain contexts, remote collaboration technologies have proven effective in maintaining alignment and communication without the environmental cost of frequent travel.

Furthermore, improved waste management practices have significantly contributed to our environmental progress. During the financial year, we switched waste vendors at two of our Vietnamese facilities. As a result, fabric waste is now either downcycled or, where that is not possible, co-processed with energy recovery—rather than being entirely incinerated as in previous years. This change along with the total waste reduction generated in European facilities led to a 60% drop in emissions from operational waste compared to the base year. With production volumes expected to grow, ensuring access to the most sustainable waste management solutions remains a priority. We are therefore continuing this effort and working toward a similar vendor transition at our An Giang facility, with the goal of fully eliminating incineration in favor of more environmentally preferable practices. This progress highlights our ongoing commitment to reducing waste-related impacts across our operations.

KPI

GHG emissions 0.5 t CO2e/ employee 0.55 t CO2e/ + >90% from employee employee commute

This year, we achieved a 19% reduction in total GHG emissions from purchased goods and services not included in the bill of materials, bringing us closer to our reduction target of 25%.

The primary driver of this decrease was a significant drop in production volumes at subcontractors, with subcontracted sewing minutes declining by 88% compared to the base year. As part of our commitment to offering the most sustainable production possible, we aim to keep manufacturing in-house. This approach allows us to deliver products with a lower carbon footprint to our customers. However, emissions from consumables and other purchased goods and services—calculated based on their monetary value—have increased. Even after adjusting emission calculations for inflation, overall expenditures in this category rose, which in turn affected the total emissions figure.

Gross Scopes 1,2,3 and Total GHG emissions

In tonnes of CO2e equivalent (tCO2eq)

Scope 1 GHG emissions

Gross Scope 1 GHG emissions (tCO2eq)

Scope 2 GHG emissions

Gross location-based Scope 2 GHG

(tCO2eq)

Gross indirect (Scope 3) GHG

(tCO2eq)

Our goal is to reduce the carbon footprint of our logistics operations, with a specific target of decreasing GHG emissions from upstream transportation by 25%.

This focus on upstream logistics is intentional, as it’s the area where we can make the most impact through decisions such as selecting preferred logistics partners or optimizing routes. More on this topic is shared in Logistic emissions, what can we do? Chapter.

Notably, we have already achieved a 33% reduction in total upstream logistics emissions compared to the base year. This has been largely driven by a 57% decrease in emissions from air transport, as the total weight transported by air has dropped by 30%.

We continue to assess the necessity of air freight, which is now primarily reserved for samples and other urgent shipments. With the introduction of 3D technologies, we expect our reliance on air logistics to decline even further in the future.

The majority of our shipments by weight are transported by sea, followed by road transportation.

The overall distribution of emissions across Scope 3 categories remains similar to previous years, with Category 1 (purchased goods and services) accounting for more than half of total Scope 3 emissions. Within this category, fabric is the dominant emission source, contributing approximately 80%. Trims account for 8%, while other purchased goods and services (including packaging, processing materials etc.) make up the remaining 12% of Category 1 emissions.

Share of Scope 3 GHG emissions 2024/25

Driving down emissions

Our supply chain spans multiple times and countries and with it, complex, energy-intensive material production processes. A significant share of our Scope 3 emissions comes from this very stage. In fact, fabric production alone accounts for 53% of our total Scope 3 footprint, and the total emissions stemming from purchase of products account for 66%.

To meet our Science-Based Targets - including a 25% reduction in Scope 3 emissions by 2030 - we need action where it matters most: at the source of material production. That’s why a key focus of our Responsibility Business Strategy 2030 is supporting the shift to renewable energy among our Tier 2 suppliers.

We use the Worldly platform to collect environmental data from our largest fabric producers through the Higg Facility Environmental Module (Higg FEM). These insights give us a more accurate picture of energy consumption patterns and track where change is happening, and where it is not.

What’s the difference between Cascale, Worldly and Higg?

• Cascale is the new name of the industry alliance formerly known as the Sustainable Apparel Coalition (SAC). It brings together manufacturers, brands, NGOs and other stakeholders to drive positive changes across the global apparel and footwear industry. Spectre is proud to be a Cascale member.

• Worldly is the tech platform that powers the tools developed by Cascale. It enables manufacturers and brands to measure and manage their environmental and social impacts across the value chain.

• The Higg Index is the name of the suite of tools created by Cascale and hosted on the Worldly platform. These tools provide standardized, credible data on sustainability performance – covering everything from factory working conditions to carbon emissions.

So far, progress has been slower than we had hoped. But we are not standing still.

We are actively engaging with suppliers to explain why transparency is not optional. It is essential. Not just for the brands we work with, but for Spectre too. As a Tier 1 partner to some of the world’s most respected outdoor brands, we see it as our responsibility to help raise the bar across the value chain.

Our RB Strategy 2030 puts this into concrete targets:

25% of energy used by key suppliers should come from renewable sources by 2030

80% of our fabric spend should go to suppliers with verified Higg FEM assessments

These targets are not just numbers. They represent a path forward, towards greater visibility, accountability, and progress. Together with our partners, we are committed to making meaningful changes, one kilowatt at a time.

Solar panels at Spectre Headquarters in Denmark

As part of our strategy to reduce our carbon footprint and achieve 100% renewable energy at our own facilities, we have invested in a solar panel system at our headquarters in Denmark. In connection with this investment, the supplier has advised us on the optimal placement of the panels to ensure the highest possible efficiency of the system.

The new solar panel system will generate approximately 29,351 kWh annually, corresponding to the entire electricity consumption at Spectre HQ in Denmark, of which a large part is consumed for recharging electric vehicles. This results in an annual CO2 reduction of 13,784 kg.

What does this mean?

To put this into perspective, an annual reduction of 13,784 kg CO2 is equivalent to:

• Driving approximately 92,000 km in an average gasoline car

• Avoiding the consumption of 6,000 liters of gasoline

• Planting around 230 trees, which would take a year to absorb the same amount of CO2

Resource use and pollution

In the 2024/25 financial year, fabrics alone accounted for 53% of Spectre’s total greenhouse gas (GHG) emissions – and 80% measured on emissions only from purchased goods and services – underscoring their dominant role in our overall environmental impact. As a Tier 1, OEM garment manufacturer, Spectre does not directly select the materials used in production; instead, we remain largely dependent on the choices made by our brand partners and their nominated suppliers.

Emissions from purchased goods and services

Distribution of GHG emissions in Scope 3 Category 1

“Purchased goods and services”, 2024/25

Due to their significant role in our industry’s value chain, fabrics and fabric suppliers have become a central focus of our decarbonization strategy, and addressing their impact requires close collaboration across the value chain—from material producers to the brands themselves. Several of our strategic goals are directed toward this area, as we recognize that the most effective levers for reducing emissions at the material level include improving energy efficiency and transitioning to renewable energy sources in textile manufacturing.

% of virgin, fossil- 55%

based material of total

While we may not choose our suppliers directly, we do choose the brands we partner with. Working with brands that share our values and climate ambitions makes it significantly easier to influence material choices and ensure alignment throughout the supply chain. With like-minded partners, the challenge of supplier engagement becomes far more manageable—and progress toward shared decarbonization goals is more achievable.

Therefore, as much as we like to prioritize sourcing from responsible, forward-thinking suppliers, the same goes for brands we produce for. As a result, in 2024/25, the share of virgin fossil-based fabrics decreased by 5% compared to our base year, marking some progress toward more sustainable sourcing. Whilst this is a positive trend, it’s worth noticing that only 14%1 of the global, annual production of textile polyester fibers for the apparel industry are recycled and only underline the importance of the industry’s players showing decisiveness.

We’re also seeing a steady shift in the market: more brands are transitioning to preferred materials, such as recycled fibers, whether derived from fossil-based or renewable sources. To credibly communicate these material shifts to consumers, many brands now are interested in Global Recycled Standard (GRS) certification, which provides a transparent chain of custody and verified content claims. GRS certification is not just a label—it builds trust across the supply chain and empowers brands and consumers to make evidence-based, climate-conscious decisions.

Spectre’s facilities in Nam Dinh and An Giang received GRS certification in late 2024, with our Thai Binh facility on track to achieve certification by the end of 2025. These certifications position us to better support our customers’ sustainability goals and increase the traceability and accountability of our own operations.

Fabric circularity properties

Recycled, 47%

Virgin fossil, 50%

Virgin, 53%

Virgin renewable, 3%

Virgin renewable blend, 3%

Distribution of amounts of fabric disagregated by composition fibers by circularity properties, 2024/25

In 2024/25, 47% of all fabrics used in Spectre’s production were made from recycled fibers—a 7% increase from the previous year. While this is a meaningful step forward, we recognize that fabric composition also plays a crucial role in long-term sustainability.

Mono-material fabrics, such as 100% polyester, are generally easier to recycle and have better circularity potential. However, in practice, only 37% of our fabric use in 2024/25 consisted of mono-materials, a decline of 7% compared to the previous year. This drop reflects a persistent challenge: fiber blends are often essential for achieving performance, comfort, and technical specifications demanded by customers. As long as blends remain the norm, innovation in both fabric development and waste management systems will be key to enabling better recyclability and reducing climate impact.

*Includes such fibers as elastane and other polyamide

**Lycra and other polyamide materials recycled

***Includes lyocell, viscose, modal

Although polyester—both recycled and virgin—continues to be our most widely used fiber, accounting for 68% of total purchased fabric by weight in 2024/25 (see fabric mix table above), it is often blended with other fibers to achieve specific functional properties. Other commonly used materials include polyamide-based fibers (such as nylon) and elastane (including spandex and lycra). As a result, the overall fabric mix is heavily technical and synthetic, with only 3% derived from renewable sources such as cotton and wool (and some share of other even less used). This reflects the realities of the outdoor and activewear industry, where performance requirements drive material choices—but it also means we share responsibility for the environmental impacts, including the use of certain chemicals and the release of microplastics.

Our role as a Tier 1 manufacturer means we often work with nominated, pre-selected material compositions, but we are committed to informing and influencing brands through data, dialogue, and innovation partnerships that advance decarbonization at scale.

Addressing PFAS use

Per- and polyfluoroalkyl substances (PFAS) have long been a pressing concern in the textile and apparel industry due to their persistence in the environment and potential risks to human health. Regulatory actions are rapidly advancing across the globe to restrict or ban their use, particularly in consumer goods and textiles. In Europe, the proposed REACH restriction—expected between 2025 and 2026—could significantly limit or prohibit the presence of PFAS in most applications, including water-repellent and waterproof treatments.

Looking ahead, we are expanding our production of waterproof garments that rely on various membrane technologies and durable water-repellent (DWR) treatments (the latter is also used for other fabric categories). Encouragingly, our research indicates that the waterproof laminates currently in use by our brand partners largely employ more sustainable membranes, such as polyester or polyurethane, and are treated with DWR finishes labeled as “C0-DWR” or “PFC-free DWR”, but the data we have still is not sufficient. These are considered more environmentally responsible alternatives to traditional fluorinated chemistries.

Due to evolving legislation, it will become part of our responsibility and future reporting obligations to track, minimize, and eventually eliminate PFAS from our value chain. This includes improving our awareness of current material usage and identifying any PFAS-containing substances still present—particularly in waterproof fabrics and membranes used in our production.

While a complete overview of current PFAS use across our supply chain has yet to be established, it is clear that many of our customers are already taking proactive steps. Approximately 95% of our revenue comes from customers who acknowledge the harmful impact of PFAS. Some have made public commitments —though often specifically addressing PFCs (perfluorinated compounds), a subgroup of PFAS. Still, even those who have not yet formalized a position will likely be required to comply with upcoming legislation to maintain market access.

* Packaging weight data presented in this table is currently estimated, based on average weights of comparable products and packaging types. As detailed tracking of packaging weight is not yet in place, we recognize this as a limitation and are committed to improving the accuracy of this data in the coming year through more systematic collection processes

Packaging plays a significant role in the overall environmental footprint of the garment lifecycle. While it may appear to be a small component of the supply chain, its cumulative impact is substantial. At Spectre, we are continuously working to minimize this impact wherever possible.

The primary materials used for packaging—by weight—are cardboard boxes and cartons. Currently, 97% of these materials are sourced from suppliers who hold valid FSC certification and have shared their certificates with us. However, in order to officially claim that the boxes used in our production are FSC certified, two additional conditions must be met: the FSC claim must appear on the supplier’s invoice, and the boxes or cartons themselves must be labeled accordingly. As of now, we do not have this level of documentation in place. Our current focus is therefore on ensuring that future purchases include the appropriate FSC claim on invoices, providing the necessary proof to support any FSC-related statements. These materials are not only essential for protecting products during transportation but are also among the most sustainable options when managed responsibly. Spectre prioritizes the internal reuse of both boxes and polybags to reduce waste generation. Once these materials can no longer be reused, they are sorted and recycled in accordance with local waste management and recycling systems.

Finished products are packed in accordance with brand-specific guidelines, typically using materials chosen by the brands themselves. This makes collaboration and shared sustainability values critical—brands with similar standards and mindsets provide the most effective path toward adopting more sustainable and innovative packaging solutions.

In the 2024/25 fiscal year, 78% of the polybags used across our operations were made from recycled plastic, significantly reducing reliance on virgin plastic and supporting circularity. An additional 8% were produced using biodegradable materials, offering a more environmentally friendly alternative that breaks down more easily when disposed of appropriately.

Logistics emissions - what can we do?

Logistics emissions, what can we do?

Transportation plays a crucial role in the movement of raw materials, finished goods and waste across supply chains, but transportation also significantly contributes to the emission of greenhouse gases. Every production company knows the challenge of reducing emissions and simultaneously ensuring the delivery of raw materials to the factory and delivering finished goods to the customer.

At Spectre, freight of goods through air, sea and road transportation is the CCCCC source of GHG emissions. In 2023/24, 6,8% of our total GHG emissions came from Inbound, outbound and internal deliveries. Addressing these challenges is essential to meeting our sustainable goals by 2030 and reducing the overall environmental impact.

Consolidation of transportation.

Every year, we work to get a more detailed carbon footprint emissions report, and by consolidating our transportation with one main logistics partner, we can secure high CSR standards, transparency and a more detailed overview of our carbon footprint. This will enhance our ability to continuously measure the carbon footprint for each garment with increasing precision and thereby work on the reduction of our GHG emissions.

We request logistics partners provide us with CSR strategies and reliable, specific GHG data for our transportation operations. By consolidating our transportation with DSV, it is possible to optimise and consolidate shipments and improve the overall efficiency of logistics and align strategies and cooperate on increasing sustainable logistics. DSV’s commitment to achieving sustainable logistics solutions aligns with our commitment to reducing our carbon emissions in our operations and in the value chain.

We have decreased our transport emissions from 10% in FY 2023/24 to 9% in 2024/25 due to our ongoing project of consolidating our transportation with DSV. A continuous struggle is to limit the amount of air

Reducing fabric leftovers

We know that responsible production is not just about the garments we create – it is also about the choices we make along the way, among others, how we manage something as problematic as fabric leftovers.

We want to change this, and therefore, we have set a clear target: by 2030, no more than 5% of fabric from our production should go unused. It is an ambitious goal, but ambition drives us. Achieving it will take innovation, collaboration, and a shift in industry mindsets.

From challenge to resource

Internal electric fleet.

As a part of our commitment to reduce carbon emissions, we have replaced fossil-fueled company cars both in Vietnam and Denmark. This represents a key milestone for us in reducing our direct transportation emissions. Our strategy is to not only encourage the transition away from fossil-fueled transportation and facilitate the possibility of EV charging but to be a leading part of this transition.

Fabric leftovers – the surplus of usable material that remains after production – are an inevitable part of garment manufacturing, and it accounts for up 20% of all material used to produce garments – adding up to millions of tons of waste in the global garment industry, of which the majority is taken for landfill or incineration. In other words, our industry is still at the bottom of the waste hierarchy.

We have chosen another path and are using our fabric leftovers in ways that bring value and turn waste into resources.

Over the past year, we have been busy with various activities:

• Partnered with a local university student to explore scalable reuse strategies.

• Co-developed limited-edition styles with customers utilising leftover stock.

• Worked with local businesses in Vietnam and Latvia to upcycle and repurpose fabrics.

• Recycled more than 214,000 meters of leftover fabric through verified partners in Vietnam.

• Out of the fiscal year 2024/25 the 214.000 m. fabric leftover accounts for 3,73% of our total textile consumption. The fabric leftover was accumulated throughout 2022-2024.

Each initiative brings us closer to our goal and proves that responsible disposal is not only possible but scalable, even in high-volume manufacturing.

The best leftover is the one that never existed. That is why we are also investing in smarter digital design and pattern-making solutions and investing resources in tighter planning from the start, in close cooperation with our brand partners. We apply digital tools that optimise fabric yield, and we have ongoing dialogue with our Tier-2 suppliers. Moreover we are working to reduce waste before it reaches the cutting table. This is done through a thorough revision of our current consumption calculation and marker-making processes.

It is not just about materials. It is about mindset. By treating leftovers as a shared responsibility across the value chain, we are building stronger partnerships and a more sustainable foundation for growth.

do?

Supporting customer claims

As our customers increasingly seek transparency in their sustainability claims, we’ve taken concrete steps to meet that need. One of those steps is Global Recycled Standard (GRS) certification, now implemented at our Nam Dinh and An Giang factories. This internationally recognized standard verifies the presence and flow of recycled materials in our products, while also enforcing strict social, environmental, and chemical criteria throughout the supply chain.

In addition to GRS, both sites are certified under the Responsible Wool Standard (RWS) and Organic Content Standard (OCS), giving consumers confidence that the materials we use, and most often nominated by our brand partners, are sourced and processed responsibly.

We believe in building the foundations for long-term change. Transparent certification helps our partners make informed choices and ensures that sustainability claims are built on more than just good intentions.

What does GRS, RWS and OCS certifications mean?

GRS (Global Recycled Standard): Goes beyond recycled content. It demands full supply chain traceability and compliance with strict environmental, chemical, and social requirements. Certified products must be stored and processed separately to maintain integrity.

RWS (Responsible Wool Standard): Ensures that wool comes from farms with a progressive approach to land management and animal welfare.

OCS (Organic Content Standard): Tracks the presence and amount of organic material in a final product and verifies the sourcing and handling through the supply chain.

A changing landscape

Looking ahead, we aim to expand our certification framework to our Thai Binh factory and pursue LEED Operations & Maintenance certification at Nam Dinh. As part of this journey, we are also considering how to streamline our approach, as we go forward, and focus on the most impactful standards.

Standard Description Nam Dinh, Thai Binh, An Giang, /initiative Vietnam Vietnam Vietnam

Human

ISO 14001 Environmental

ISO 9001 Quality management system standard Certified Certified Certified

Higg FEM Environmental performance assessment Verified Verified Verified

Higg FSLM Social and labour performance assessment Verified Verified Verified

Fair Trade Human rights, labour

worker premium management

H&S

GRS Content claims, social & labour, environmental & chemical standard

A

smarter approach to waste manage-

A smarter approach to waste management

One of our most pressing environmental challenges from our own operations remains the fabric waste, particularly the scraps left over from cutting operations. Today, these offcuts account for more than 60% of our total production waste.

By repurposing leftover fabric into new products or integrating it into future designs, we reduce the amount of material sent to landfill or incineration. In fact, well-structured reuse and recycling programs are essential to achieving our long-term goals of waste minimization and resource efficiency.

Generated waste composition, t

In 2024, we took an important step forward by partnering with a new waste contractor for our Nam Dinh and Thai Binh factories in Vietnam. As part of our onboarding process, we carried out thorough due diligence to ensure full alignment with our environmental and social standards. These checks confirmed that recyclable waste is handled responsibly and as agreed.

The result? We increased the share of recycled waste across the group to 31%. Importantly, fabric waste that cannot be recycled is now used for co-processing, recovering energy, rather than being incinerated without purpose.

Our next focus is our facility in An Giang, where we are working to strengthen waste handling systems and identify new reduction opportunities.

Across all sites, our waste strategy starts with prevention. We aim to avoid generating waste in the first place through smarter patterning, improved cutting efficiency, and tighter production planning. In 2024/25, this approach helped us reduce total waste generated per million produced minutes by 34% - a clear result of our teams’ efforts in efficiency and material savings.

While our total waste volume also declined, this was partly due to reduced activity at our European facilities. Still, the trend is clear: less waste, handled more responsibly.

Looking ahead, we are setting the bar higher. Fabric waste is not only a significant topic in our own operations, but also a growing challenge across the textile industry. That is why we have set a strategic target: by 2030, 90% of our waste should be diverted to recycling.

We are fully aware of the limitations in today’s textile recycling infrastructure. The fiber blends we work with are notoriously hard to recycle, and synthetic materials can take centuries to break down, releasing harmful substances along the way. But standing still is not an option.

Textile waste and N

We are actively exploring partnerships that can enable us to feed our fabric scraps into textile-to-textile recycling systems. While mechanical and chemical recycling technologies are still evolving, we are encouraged by the industry’s momentum and the push from both regulation and public awareness.

We aim to be among the first to adopt viable, scalable recycling solutions as they emerge.

Hazardous waste and chemicals

We are committed to protecting the people in our facilities, the brands we work with, and the planet we all share. While our production does not involve hazardous chemicals in the manufacturing of garments (therefore pollution from chemicals not being material in own operations), we do use certain substances in areas like maintenance, R&D, and limited spot cleaning of garments. These are carefully selected to meet strict safety standards, posing minimal risk to workers, wearers, and the environment.

All chemical handling is conducted in line with legal requirements and aligned with the Higg Facility Environmental Module (FEM) best practices. This ensures high standards of health and safety, pollution prevention, and responsible waste management.

Our key measures include:

• Maintaining up-to-date Safety Data Sheets (SDS) and full documentation for all substances.

• Training employees regularly in safe handling, storage, and disposal procedures.

• Strict adherence to customer-specific Restricted Substances Lists (RSL) and phasing out any non-compliant substances after review.

Though the volume of hazardous waste from our operations is low, we take its management seriously. Most hazardous waste originates from:

• Maintenance activities: including expired chemicals, used rags, containers, and fluorescent lighting.

• Office operations: such as batteries, e-waste, and ink cartridges.

• Medical supplies: including expired first-aid materials.

We work exclusively with certified waste treatment partners to ensure safe disposal. Last year, 162 kg of hazardous waste was recycled, and 64 kg was safely incinerated by authorized facilities.

Pollution across the value chain – Our shared responsibility

Pollution is a shared challenge across the textile industry. Our Double Materiality Assessment confirmed that while the most significant pollution occurs upstream (see the table below with identified material IROs) - especially in dyeing, finishing, and raw material production - we also identified impacts in our own operations.

Issues such as microplastic release, PFAS chemicals, and coal-based energy use continue to negatively affect the industry and its stakeholders. While our own operations do not directly contribute to these impacts, we recognize their harmful effects on the environment and the impact to employees handling materials containing such substances. At Spectre, we strive to reduce our own footprint, while contributing to a more responsible value chain.

We rely on sea freight for most logistics, particularly between Vietnam, Europe, and North America and for inter-Asia shipments, because of its lower emissions profile. But we also acknowledge the environmental trade-offs, including marine pollution and biodiversity impact.

Identified IRO Category Value chain Actual/Potential Target

Production N

Yes processes polluting air

Water pollution N

Yes of textile production

Water pollution of N

Yes sea freight Own operations Downstream

Pollution from N

chemicals Downstream

Substances of N

concern in Own operations products Downstream

Microplastics N

pollution from Own operations synthetic fabrics Downstream

[N-negative impact]

Moving towards LEED certification in Nam Dinh

As part of our ongoing commitment to improve the environmental standards across all Spectre facilities, we have completed the analysis and screening phase for LEED certification at our factory in Nam Dinh, Vietnam.

The next steps are clearly defined. Four key areas have been identified for improvement, three of which have already been implemented: waste management, cafeteria performance, and environmental control. The final task of upgrading our fresh air ventilation system is underway. Construction is expected to be completed by mid-2025, followed by a one-year performance tracking period. Based on this timeline, we aim to complete the certification process by the end of 2026. The total investment for these improvements is approximately USD 170,000 and we are targeting a LEED Silver certification at minimum depending on final performance.

For Spectre, this is not just about achieving another certification. It is about using LEED as a structured tool to improve energy efficiency, air quality, and environmental performance benefiting both people and planet.

“The certification matters, but the long-term commitment to improvement is what really drives us. LEED helps us raise the bar, and we’re already making solid progress,” Kiet Nguyen, Managing Director, Spectre Vietnam states.

What is LEED?

LEED (Leadership in Energy and Environmental Design) is a globally recognized green building certification system developed by the U.S. Green Building Council. It promotes buildings that are energy-efficient, water-saving, and environmentally responsible.

What does it mean for employees?

LEED-certified buildings are designed with people in mind. For our employees, this means:

• Better indoor air quality

• More natural light

• Comfortable temperatures and acoustics

• Safer materials and healthier workspaces

This contributes to improved well-being, focus, and satisfaction at work—key elements in a responsible and forward-thinking production environment.

Reducing impaxt where it matters most

From commitment to action

As part of our Responsible Business Strategy, we are taking proactive steps to reduce our environmental and social footprint. This includes setting measurable targets, fostering alignment with our suppliers, and supporting initiatives in Vietnam focused on safe water access and microplastic reduction.

We know that responsibility doesn’t stop at our factory gates. It is embedded in our partnerships, our processes, and our promise to always strive for better.

Reducing impact where it matters most

While water is essential in the global textile industry, Spectre’s direct use of water is limited. Our manufacturing processes rely primarily on domestic water use: for drinking, sanitation, facility maintenance, and small-scale sample washing. In contrast to water-intensive processes like dyeing, which take place higher up in the value chain, our own operations have a relatively low water footprint.

That said, we never take resources for granted. Our An Giang factory in Vietnam was designed from the ground up with water responsibility in mind—including a rainwater harvesting system that reduces pressure on municipal supply and supports the reuse of greywater. As shown in the chart, over 30% of the factory’s total water inflow comes from harvested rainwater, which is primarily used for plant irrigation and sanitation. Naturally, the effectiveness of this system depends heavily on weather conditions, and due to unusually low rainfall this year, the share of rainwater has decreased compared to the previous year. In 2022/23, when An Giang facility had just begun operations, water meters had not yet been installed, so rainwater usage was estimated. However, meters have been in place since last year, and water usage now is measured on monthly basis.

Rainwater share in An Giang

Because most of our textiles are made from polyester, our water use is significantly lower than that of natural fiber production, which is often associated with high water consumption. Still, we know that responsible management means looking beyond our immediate footprint.

Identified IRO

Water consumption in N Upstream Actual Yes textiles production

Water withdrawals in N Upstream Actual Yes textiles production

Grey water and N Upstream Actual Yes wastewater discharges Own operations [N-negative impact]

Our Environmental Policy defines water as a material topic—particularly at our Thai Binh facility, where we operate an on-site wastewater treatment system to ensure all water is responsibly treated before re-entering the environment.

To deepen our understanding of local risks, we’ve used the WWF Water Risk Filter to screen all production sites. The assessment highlighted:

• Very high-risk levels in Vietnam, related to flooding, water quality degradation, and environmental threats like mismanaged plastic waste, high salinity, and elevated BOD (Biological Oxygen Demand) levels, indicating contamination risks.

• Moderate risks in Latvia, with focus on water quality challenges related to total dissolved solids and surface water contamination.

This insight strengthens our ability to act locally while thinking systemically.

From policy to practice We’re committed to reducing our water footprint across all operations. Key initiatives include:

• Rainwater collection and water-saving measures wherever feasible. Our An Giang factory is a prime example of how early planning can embed sustainability.

• Quarterly monitoring of water use, based on meter readings and invoices, to ensure we stay efficient and accountable.

• Community commitment: Our Responsible Business Strategy includes a goal to improve access to safe, clean water in high-risk areas. This target is defined; we are now working to translate it into action.

including areas of high-water stress

Water withdrawal includes all municipal blue water used across our facilities for both domestic and operational purposes. Data is sourced from invoices and meter readings.

Water discharge calculations vary by location:

Vietnam:

In accordance with governance regulations, we estimate that 80% of incoming water is discharged as wastewater. Discharge at our Nam Dinh and An Giang facilities is documented through invoices, while Thai Binh uses internal calculations.

Latvia & Denmark: A 95% discharge ratio is applied based on established industry standards.

Water consumption is calculated as the difference between total withdrawal and discharge.

While our direct operations have a relatively limited water footprint, we acknowledge that most water use and pollution in the apparel supply chain occurs upstream — particularly at Tier 2, where dyeing and finishing processes are concentrated.

To influence where it matters most, we will:

• Prioritize suppliers that demonstrate strong performance in water efficiency and wastewater treatment.

• Use the Worldly (formerly Higg Index) platform to assess supplier performance through their Facility Environmental Module (FEM), which provides verified data on water, energy, emissions, and waste.

Responsible water use is not a checkbox — it’s a long-term commitment.

Our ambition to be the preferred partner for sportsand outdoor apparel brands includes integrating water stewardship into supplier selection, factory operations, and local engagement.

HUMAN-CENTERED

A safe, attractive and engaging working environment

Spectre does not employ temporary workers. Everyone working for the company holds a formal contract and is classified as a direct employee.

During the 2024/25 fiscal year, Spectre employed over 3,800 individuals across Europe and Vietnam — with more than 3,500 based in Vietnam. Managing such a large workforce while maintaining high social standards requires a structured and well-defined approach. These standards are set at Group level and are further reinforced through SA8000 and Fairtrade certifications.

To support this, Spectre has developed and implemented a comprehensive set of employee-related policies. These policies form the foundation of our commitment to building a responsible and ethical workplace. The key document — Spectre’s Corporate Social Responsibility Policy — covers a range of social topics aligned with ILO conventions, including:

• Child labor

• Forced labor

• Health and safety

• Freedom of association and the right to collective bargaining

• Discrimination and harassment

• Disciplinary practices

• Working hours

• Remuneration

These policies ensure that all employees are treated with dignity, fairness, and respect, and that decent working conditions are maintained across all locations.

All employees have access to the Employee Handbook, which is available on the company intranet and at each facility. The handbook outlines the core values that guide our business conduct and reinforces our commitment to ethics, integrity, and mutual respect. It also includes key information on employee representation and is posted on noticeboards at each site to ensure visibility and accessibility.

In addition, Spectre has implemented a robust Anti-Corruption and Whistleblowing Policy. This policy defines expectations related to gifts, conflicts of interest, and potential corruption. It also provides a safe and confidential mechanism for employees to report concerns — without fear of retaliation.

Employees are encouraged to raise concerns or provide feedback, either directly or anonymously. Several communication channels are available:

• Anonymous submission forms at both local and Group level

• Physical suggestion boxes in all facilities

• Direct access to employee representatives and Human Resources

Spectre actively involves employees not only in day-to-day operations but also in long-term planning, as described in the table in section Stakeholder engagement in double materiality assessment. This includes regular surveys and close collaboration with employee representatives to ensure the workforce remains engaged, informed, and empowered to help shape a better working environment.

Workplace safety is a core priority for Spectre and is identified as a material topic in our Double Materiality Assessment. A clear target has been set. All Spectre employees are covered by a health and safety management system, which is based on legal requirements and recognized by SA8000 and Fair Trade.

While we maintain high standards across the board, certain areas — including special technologies, sewing operations, and warehouse logistics — pose a higher risk of physical injury and require targeted safety measures. [N-negative

Employee survey statement

“Spectre does not compromise work safety for performance”

Number of minor and major accidents in Spectre’s operations

Employee satisfaction survey 2025 results across Spectre’s Vietnam facilities

Nam Dinh

Thai Binh

An Giang

Health, safety, and job security

Despite our strong commitment to safety, two major accidents occurred in 2024/25, each resulting in more than three days of absence. To prevent future incidents, we implemented additional safety mechanisms on machines and equipment where factory-default protection was insufficient. We also reinforced strict worker training and emphasized that safety features must never be removed.

The absence of minor accidents suggests that our training and safety measures are having a positive effect. At Spectre, we view workplace safety not as a one-time effort, but as a continuous commitment — deeply rooted in our values, processes, and management systems. We remain dedicated to improving safety standards, always striving for a zero-accident workplace.

Accidents per 0.95 0,249 + 0

1 000 000 working hours

Listening to our employees

In addition to risk assessments, safety training, and procedures, we actively monitor how employees perceive safety across our operations. Through internal feedback mechanisms, we ensure that operational efficiency is never prioritized at the expense of worker protection.

Our latest Employee Satisfaction Survey in Vietnam confirmed that employees feel safe at work and believe that well-being takes precedence over production targets. Four of the highest-scoring responses further affirm that both physical and emotional safety are embedded in our culture:

• “I have never been harassed at work.”

• “I am fully trained to perform my job safely and without negative impact on my health.”

• “I can keep my workplace clean and tidy.”

• “I have not been treated unfairly or discriminated against based on race, age, sexual orientation, disability, political views, nationality, or religion.”

These findings show that a culture of fairness, respect, and safety is not just policy — it is practiced daily across all levels of the organization.

Picture: Fire safety drills in cooperation with police and fire services in Nam Dinh

Job security and social stability

Safety also includes emotional and psychological well-being, ensuring that every employee feels secure in their role. Our social policy prohibits informal employment and guarantees all employees formal contracts with legal protections — including coverage for sickness, injury, disability, parental leave, and retirement

Identified IRO Category Value chain Actual/Potential Target

Demand fluctuations and N Own operations Actual Yes relocation of operations

[N-Negative impact]

Number of employees *calculated as average during the reporting period

While secure employment may not always appear as a material issue, our data shows it has a significant impact on employee well-being. Last year, reductions in working hours and workforce were necessary due to high inventory levels and inflation in key markets. This year, while Vietnam saw growth in production and workforce, we had to close our European production facilities due to continued global challenges.

These fluctuations highlight that employment security is a material concern. Our first step to addressing this is clear:

All Spectre employees are permanent — we do not hire temporary or zero-hour contract workers. In 2024/25, 810 employees left the company for reasons unrelated to downsizing. Encouragingly, our employee turnover rate improved by 30% compared to the previous year.

Employee turnover rate by country and gender 2024/25

Employee representation and social dialogue

Our social management model ensures that employee representatives are present at all facilities — 100% of our workforce is covered. Regular consultation with these representatives allows for informed management decisions and ensures employee interests are heard and respected.

We recognize that a lack of social dialogue can lead to dissatisfaction and mistrust. At Spectre, we uphold the principle that employee representatives — including freely elected trade unions — must be involved in all discussions that affect employee rights, grievances, and workplace conditions. All employees in Vietnam are covered by collective bargaining agreements.

Based on our DMA, social dialogue is recognized as having a positive material impact on our workforce.

Social dialogue P Own operations

Handling employees’ N Own operations

Yes

Yes complaints

[P-positive impact; N-negative impact]

Psychological safety and reporting mechanisms

Creating a respectful workplace also means offering safe and accessible ways to express concerns — without fear of retaliation. For this reason, we have identified violence and harassment prevention as a material topic.

We receive various types of grievances from employees. While the issues may be serious, we view reporting itself as a positive sign — it means employees feel safe to speak up. We aim to resolve all reported grievances within three months, although most are resolved faster.

To strengthen this, we are improving our reporting tools to enable secure, anonymous two-way communication. At present, limited functionality makes it difficult to follow up on anonymous submissions. Addressing this is key to maintaining trust and psychological safety.

Employee satisfaction and feedback

In 2025, we conducted our latest Employee Satisfaction Survey across our Vietnam facilities. The results showed improvements across all sites, with employees expressing greater satisfaction with their working environment, leadership, and management practices.

As in any large organization, there are always opportunities for improvement. The most frequent suggestions related to infrastructure (e.g., parking), canteen food variety, supervisory relationships, and salary expectations. We view this feedback as constructive and essential for improving the day-today experience of our employees.

All these efforts support our ambition to achieve Higg FSLM scores that exceed the top quartile industry benchmark. The FSLM assessment is detailed and demanding — which is why our clearly defined targets and strong social management systems are crucial to delivering meaningful progress.

Employee overall satisfaction rating by production location

working hours

Working hours

Working hours are a key focus for our company, our customers, and the industry as a whole — and rightly so. Excessive overtime not only reduces efficiency and affects worker well-being, but it also compromises workplace safety, as fatigue increases the risk of accidents.

During our busiest production periods, overtime is sometimes required to meet delivery deadlines. Many workers are also interested in working overtime to increase their income. However, without strict management, this creates a risk of exceeding legal limits — potentially impacting health, quality, and efficiency.

To address this, we’ve introduced mitigation measures to strengthen managerial responsibility and prevent violations. These efforts are supported by our robust systems, including SA8000 and the Higg FSLM tool.

Recognizing working hours as a material topic with negative impact, we’ve set a target to reach 0% overtime violations, with monitoring beginning in the next financial year. Overtime among office employees is discouraged and only allowed in exceptional cases with managerial approval, reinforcing our commitment to work-life balance. This approach contributes positively to our DMA assessment.

Identified IRO Category Value chain Actual/Potential Target

Overtime violations due to N Own operations Actual Yes peak seasons

Limited overtime for white P Own operations Actual Yes collar employees

[N- negative impact; P- positive impact]

Human rights and data privacy

While child labor and forced labor are not present in our operations — due to our strict social policies — we acknowledge these as potential risks in our DMA. Even isolated incidents, particularly if identified by brand partners, could result in significant reputational damage.

Similarly, data privacy remains a critical issue, particularly in our European operations where compliance with the General Data Protection Regulation (GDPR) is mandatory. Violations of GDPR could lead to substantial penalties and reputational harm.

Although we have strong processes in place to ensure compliance, even minor lapses carry significant risk. For these reasons, both human rights violations and data privacy breaches are considered material

risks. While their likelihood is low, their impact justifies continued vigilance and proactive management.

We have not established formal targets for these risks. However, as a certified B Corp and a company aligned with standards such as SA8000 and Fair Trade, we do not tolerate — nor do we accept — any instance of such practices in our operations or supply chain.

[P-positive impact]

As of now, over 90% of our employees across the Spectre Group receive at least a living wage, based on the latest benchmark from the Global Living Wage Coalition.

Considered a good result, we see this as a positive impact on our DMA, with a target to improve it to 100%.

Location-wise, 13% of employees in Latvia, 14% in An Giang, and 4% in Nam Dinh did not receive a living wage according to our applied standards.

While this figure has slightly decreased at the Group level, the change is primarily due to temporary efficiency challenges on some production lines, a high inflow of new employees still progressing through the learning curve, and the annual increase in the living wage benchmark.

These factors are being actively addressed.

To reinforce our commitment, we have established a strategic target to ensure that 100% of employees receive at least a living wage by 2030, and, to support this, we are working on developing a new wage structure designed to both close the remaining gap and maintain alignment with future living wage benchmark updates.

While ensuring a safe, attractive, and engaging working environment within the Spectre Group remains a top priority, we fully recognize our broader due diligence responsibility across the entire value chain. Just like our own employees, every worker within our supply chain deserves the same level of security, respect, and protection.

As a result of our DMA, we have identified four material negative impacts in our upstream supply chain (in the table below). Our largest suppliers are in China, Taiwan, Hong Kong, and Vietnam — regions where issues such as informality and forced labor are well-documented concerns in the textile industry.

While Tier 1 suppliers, including Spectre, are subject to increasing regulation and monitoring, Tier 2 and Tier 3 suppliers often lack sufficient oversight. These deeper tiers are where working conditions can be more precarious, with limited protection for workers and fewer compliance checks in place. Employees in fabric and textile processing facilities in China and Vietnam are at elevated risk of violence and harassment. This is often worsened by power imbalances, weak enforcement of labor protections, and cultural norms that may perpetuate gender-based discrimination.

Without robust monitoring systems, clear anti-harassment policies, and accessible grievance mechanisms, such risks can remain unaddressed, leading to potential human rights violations, reputational harm, and supply chain instability.

We are actively responding to this challenge by finalizing a new supplier evaluation framework that integrates a responsible business approach and strengthens our due diligence practices. This framework will be rolled out in the upcoming fiscal year.

For now, we have developed a Code of Conduct that is updated annually and sets out key principles in areas such as human and labor rights (such as wages and working time, occupational health and safety, freedom of association and the right to collective bargaining, and freedom from discrimination and harassment), environment, anti-corruption, and ethics. Spectre stands firmly against forced labor and child labor. All suppliers and subcontractors are asked to sign it.

Additionally, environmental risks such as poor water quality have been flagged through tools like the WWF Risk Filter, particularly in China, Vietnam, and Taiwan. Limited access to clean and safe water for daily use — including drinking and food preparation — pose health risks to workers in these regions.

Given the textile industry’s contribution to soil and water contamination, including chemical and microplastic pollution, addressing water-related risks is crucial. Poor water quality can negatively affect worker health, well-being, and productivity, ultimately impacting supply chain resilience and performance.

Fair Trade in action: First premium payout invests in people

We’re proud to share a new milestone: the first official payout from our Fairtrade Premium agreement has been received, and the funds are already making a difference for our employees

Fair Trade USA

Factory Production Standard

1. Empowering workers to manage the spending of the premium

2. Ensuring fundemental rights at work

3. Fair conditions of employment for workers

4. Occupational health and safety

5. Responsible management of environmental impacts

6. Transparency and traceability of Fair Trade product

7. Robust internal management system

Guided by our belief that progress starts with people, the Spectre Fair Trade Committee; comprising 12 employees from our Vietnamese factories, has decided to allocate the premium toward a gesture of appreciation for every employee. Each team member has received a gift package of up to five items, totaling a value of 1,950,000 VND (~77 USD).

A partnership rooted in shared values

This initiative is part of our ongoing Fairtrade certification project, developed in close partnership with Arc’teryx and all our Vietnamese factories are Fairtrade Certified. For us, it’s more than a label; it’s a framework that strengthens local communities, empowers employees through democratic decision-making, and reinforces our position as a responsible and attractive employer.

Why it matters

Fair Trade Premiums are collected through sales and redirected into programs chosen by the employees themselves. This democratic approach ensures that every initiative, whether gifts, infrastructure improvements, or community development, is deeply relevant and widely supported. In this first round, our team chose to invest directly in our people, reflecting the shared values that define Spectre’s culture. This first premium payout is just the beginning. As we move forward, we’ll continue to prioritize projects that benefit employees and their communities. Our goal is long-term, sustainable impact, one that reflects the ambition, responsibility, and integrity that drive us.

At Spectre, we don’t just talk about values. We put them to work. And through Fair Trade, we ensure that our brand partners – when desired – directly contribute to making positive change for our workers, because when our people thrive, so does our business.

Diversity

At Spectre, we are committed to fostering an inclusive and supportive work environment where every individual is valued. We recognize that embracing the full spectrum of our employees’ diverse backgrounds and experiences is essential to driving sustainable growth, innovation, and long-term success. Gender and age are the first lenses through which we have begun analyzing the impacts of diversity on our employees and organization.

Women represent a significant majority across the Spectre Group, accounting for 70% of all employees. In terms of demographics, our Vietnamese production sites have the youngest overall workforce, particularly in our factory in An Giang, which not only reflects youthful energy, but also shows a closer-to-balanced gender composition, with 65% of employees being women.

In contrast, our Danish and German offices have the highest proportion of older employees, showcasing a depth of experience and long-term commitment to the company. Interestingly, these offices also show the most balanced gender distribution, with women comprising almost 60% of the workforce. On the other hand, Latvia exhibits the greatest gender imbalance, with 92% of employees being women.

Vietnam also leads in gender equity at the senior management level, reflecting our ongoing efforts to promote equal leadership opportunities.

Gender pay gap across locations 2024/25 - in total

The diverse distribution of age and gender across Spectre’s global workforce presents both unique challenges and valuable opportunities. A strong predominance of one gender, for instance, can limit the breadth of perspectives and lead to communication barriers at various organizational levels. Similarly, while the experience and knowledge of older employees are significant assets, they may sometimes bring more traditional mindsets or a slower pace compared to the agility and energy of younger colleagues.

In production environments, where speed and efficiency are critical, the presence of a younger workforce offers clear advantages. Conversely, leadership and strategic roles benefit greatly from a mix of experience and fresh perspectives — making diversity in both age and gender essential at the management level.

Is gender pay the same as equal pay?

Gender pay and equal pay are not the same. Equal pay deals with the pay differences between men and women who carry out the same job, similar jobs or work of equal value. Gender pay gap shows the difference in the average pay between all men and women in a workforce.

Spectre finds strength in this balance: our younger teams in large production facilities across Vietnam bring dynamism and adaptability, while our more experienced professionals in European group management offices offer stability, long-term insight, and deep organizational knowledge.

Ultimately, Spectre is committed to empowering all employees — regardless of age or gender — to reach their full potential. By embracing different viewpoints and capabilities, we strive to foster an environment where diverse talents contribute to shared success.

We also recognize that the balance between talent and diversity strategies can influence outcomes related to the gender pay gap. The gender pay gap presents itself differently across our locations. The largest disparities are observed at our headquarters in Denmark and Germany, primarily due to a higher proportion of management roles held by male employees. In contrast, Latvia shows an opposite trend, where most managers are female, resulting in a reversed gap.

The most equal pay levels are observed within the worker category, where roles are more standardized and comparable, involving large numbers of employees performing similar tasks with similar remuneration. However, pay gaps are more pronounced in production support roles and salaried office positions not directly tied to production. These roles vary more widely in responsibility and composition, which contributes to the greater differences in pay between genders.

Group top management (board of directors) gender balance currently is 20% and 60% are non-executive members. In other management levels women make up 27%.

gender distribution 2024/25

LEADING THE CHANGE

We believe that growth should not only be measured in revenue but also in accountability. As we expand our operations and are on a growth path to double our turnover by 2030, we are equally committed to doubling down on our positive impact. Our recent B Corp certification marks a pivotal milestone — embedding purpose into our Articles of Association and turning responsibility into a guiding principle across the business. “Leading the Change” is not just a pillar in our Responsible Business Strategy 2030; it is our promise to remain at the forefront of climate and social ambition in the textile industry.

This means offering more than just high-quality garments — we offer solutions.

From helping small and mid-sized brands navigate complex sustainability requirements to supporting material and supplier due diligence, we position ourselves as a proactive partner, not just a vendor. Our ability to align with customers’ net-zero targets, leverage our sourcing networks, and deliver innovation-driven, low-impact products is a testament to our ambition: to be the partner of choice for brands who want to lead — not follow — on the sustainability agenda.

Our journey is just beginning, but the direction is clear: Ambition fuels our responsibility, and responsibility defines our growth.

Spectre Factory Model

Spectre Factory Model: One global company standard

Spectre is committed to maintaining equally high social, environmental, quality, and efficiency standards across all our factories. These principles are embedded in the Spectre Factory Model, which guides our operations and sets a unified direction for continuous improvement.

Evolving standards for Spectre’s factories

As we grow and adapt to a changing regulatory and commercial landscape, we’re seeing increasing overlaps between audits and certification schemes. Certifications like Fairtrade and GRS come with rigorous assessments that often review the same processes as existing standards such as SA8000 and ISO 14001. To use our resources where they matter most—and to avoid audit fatigue—we are consolidating. This means prioritizing certifications that are more aligned with our industry and customer needs. For example, we increasingly intend to favor in Cascale’s industry specific standards and tools (Higg FEM and FSLM) over SA8000 and ISO14001.

As active members of Cascale, we also endorse the beforementioned Higg tools as robust, transparent tools for due diligence and performance management. These assessments form the core of how we measure and drive progress at each site, setting annual targets and promoting accountability across our global operations.

Rethinking responsibility in the supply network

The textile industry is undergoing a transformation and at Spectre, we are committed to being a part of that change. As a responsible sourcing and manufacturing partner, we see it as our obligation to help reshape the way functional garments are made, from the first thread to final shipment.

Every product journey involves many hands and decisions. That is why a truly responsible supply network must be built on ethics, transparency, and sustainability and not just in isolated pockets, but throughout the entire value chain. Changing our industry requires close partnerships throughout the value chain, and we are especially focusing on the partnership between brand, T1 (Spectre) and T2 suppliers as the key to driving the change.

Our role: Strategic advisor and active partner

We aim to be more than a supplier. We want to be trusted advisors and strategic partner —hence the “Leading the Change” pillar of our RB strategy 2023, supporting our brand partners in building stronger, more responsible supply networks. This includes guiding material and supplier choices and keeping them ahead of evolving legislation.

Currently, we are developing a long-term sourcing strategy aligned with upcoming EU regulations, including the Ecodesign for Sustainable Products Regulation (ESPR) and the Corporate Sustainability Due Diligence Directive (CSDDD). While not all legislation affects Spectre directly, we see it as our responsibility to monitor developments closely and support our customers in navigating the landscape with confidence.

Our ambition remains the same as before:

We want not just to comply with the legislation, but to be ahead.

Shared ambitions, shared action

Being a part of the Science Based Targets initiative and having approved targets, we have set a clear path toward significant near-term reductions (2030) and net zero by 2047; a commitment we share with many of our brand partners.

As raw materials, particularly fabric, account for most of our emissions and tackling this requires more than individual action, we are initiating joint collaborations with selected customers to find new ways of reducing emissions from fabric sourcing, to align strategies and share data where relevant

bulding a responsible supply network

Building a responsible supply network – Together In 2024/25, Spectre sourced fabric and trims from 334 suppliers. Our suppliers are mainly situated in the same geographic area and therefore 90% of our total purchase value originated from 5 countries.

43% of suppliers were fabric suppliers, accounting for 75% of total purchasing value. All suppliers are required to sign our Code of Conduct, and we systematically track their certifications and CSR credentials through our internal “certificate table” to ensure alignment with our standards and to provide our customers with transparent, informed guidance.

In logistics, we are working with our main partner, DSV, to reduce emissions through our “Green Logistics” initiative. This initiative aims to reduce emissions and increase transparency. This is done through optimisation and consolidation of shipments, detailed tracking of emissions from transportation and documented usage of sustainable fuel. We believe that this initiative will not only support our ambitions to reduce emissions but also support decarbonisation in the supply chain.

Local sourcing is another key enabler, and we are seeing positive development here as an increasing share of materials is now sourced from Vietnam. In 2024/2025, we sourced from 63 local suppliers and accounting for 7% of our total purchase amount. Local sourcing reduces transport emissions, strengthens local economies, and increases responsiveness in the supply chain.

Since 2022, Spectre voluntarily contributes information about our owned factories and subcontractors used in garment production to the OSH platform to provide transparency about our operations.

Open Supply Hub

Data in the Open Supply Hub is contributed to and use by organizations worldwide, including major global brands, civil society organizations, multi-stakeholder initiatives, certification schemes, and factory groups. OS Hub’s vision is to build a world there supply chain data is open, trusted, and harnessed to benefit people and the planet.

By working closely with regional suppliers, we help our customers make responsible sourcing decisions that benefit both people and the planet, without compromising on quality or performance.

Driving compliance across our value chain

As part of our long-term PLAN30 strategy, we are strengthening our approach to strategic sourcing, not only to ensure compliance but to build a value chain that lives up to the trust our partners place in us.

Responsibility is a cornerstone of how we operate. That means staying ahead of evolving legislation and using our expertise to help our partners do the same. As legislation such as the EU’s Corporate Sustainability Due Diligence Directive (CSDDD) and Corporate Sustainability Reporting Directive (CSRD) takes shape, we want to be more than compliant.

We want to be a partner our customers can rely on for guidance and foresight

To keep our Code of Conduct (CoC) aligned with both customer requirements and legislative frameworks, we work closely with the Danish Fashion and Textile Association. Their advice ensures our CoC reflects current expectations and continues to support best practice across the industry.

We ask all Tier 2 suppliers to sign our CoC or a brand-specific equivalent that meets the same standards. This is not a quick fix but a continuous process. As a first step, we have mapped our suppliers by purchasing volume. Today, suppliers representing 80% of our procurement spend are asked to commit to our CoC framework.

Currently:

• 62% of our T2 suppliers have signed our CoC

• 21% have signed an equivalent brand CoC

• The remaining suppliers have declined, arguing that Spectre is not their direct customer

This gap highlights a broader industry challenge. To address it, we are intensifying collaboration between our purchasing teams and our brand partners. To support this, we have expanded our Supply Chain Management (SCM) team, equipping ourselves to work more closely with suppliers and partners. Our aim is to identify risks early, ensure a high level of compliance, and deliver on our ambition to be best in class.

Transparency is key. You can access our full Code of Conduct here:

Responsible transitions

Responsible transition and future commitment in Latvia

At Spectre, treating people with dignity is more than a principle - it’s a promise. As we navigate the difficult decision to discontinue production in Latvia during the summer of 2025, our approach is guided by responsibility, respect, and care for every employee affected.

Far ahead of the decision being made, representation from Spectre’s ownership informed all employees at personal meetings at all branches about the overall, challenging market situation for garment manufacturing in EU and our considerations switching to local business and/or finding new owners who would be able to offer job continuation for our employees.

From the very first communication about the actual decision, we prioritized openness and empathy. The decision was personally communicated by Spectre’s leadership team in Kalnciems and Auce and Rezekne, underlining the deep appreciation we have for our teams and the meaningful contributions they have made over the years.

We are committed to going beyond the minimum legal requirements. Hence, in addition to providing full severance packages as mandated by law, we are offering more generous terms to all employees in the form of a loyalty bonus, as well as ongoing practical support. This includes transparent communication, individual transition planning, and the involvement of local municipalities to ensure that no one stands alone during this time.

We are actively exploring opportunities to secure future employment for our staff, including advanced discussions with potential partners who may continue operations in two out of three facilities.

Although we are stopping our production, we are not walking away. As part of our ongoing growth strategy in this dynamic environment, we are proud to maintain a long-term presence in Latvia with the establishment of the new Spectre Group Competence Center. This center is now officially being established and will play a critical role in supporting our future development and scaling our business across all locations.

The Competence Center is designed to strengthen Group-level capabilities and drive key areas like technology development, product innovation, industrial engineering, PEx, and responsible business. It brings together highly skilled specialists, each focused on their area of expertise, contributing to both local and Group-wide projects. This initiative reflects our commitment to building strong, future-ready teams and ensuring that Latvia continues to be an essential part of Spectre’s story going forward.

Our commitment in Ukraine

In parallel with our production closure in Latvia, we have also made the difficult decision to end our remaining production activities in Ukraine. Over the years, we have been proud to support our Ukrainian team, especially through times of great uncertainty and hardship.

The decision was not taken lightly, but is driven by the continued instability in the region, which makes long-term operations untenable at this time. That said, our commitment to Ukraine remains strong. When the situation allows for it, we will actively explore how we can revisit our ambition to re-establish production in the country.

Corporate governance and associations

As part of our double materiality assessment, we identified key topics within corporate governance that are particularly relevant to Spectre: corporate culture, whistleblower protection, and political engagement and lobbying activities. All these topics were assessed as having a positive impact, which reflects Spectre’s long-standing commitment to responsible business (RB) conduct.

Spectre has established a value-based corporate culture across all its operations, clearly communicating our core values and goals to employees to ensure these are reflected in day-today activities. The effectiveness of our corporate culture is regularly evaluated through employee satisfaction surveys, which help us track employee sentiment and identify areas for improvement. This strong internal culture also positively influences our external reputation, particularly with brand partners who frequently visit our production sites and assess working conditions.

Our corporate culture is shaped and nurtured by all levels of leadership—administrative, management, and supervisory bodies. It forms a consistent part of our communication with employees, partners, and stakeholders. Key aspects of our culture are discussed during Management Board and RB Committee meetings, as well as during annual strategic reviews, which include evaluations of initiatives, goals, and the overall performance of cultural and governance-related activities.

To strengthen and maintain our standards, Spectre has implemented several tools and policies, including:

Employee Handbook: A comprehensive guide outlining expected behaviors, ethical standards, and corporate values. All new employees are introduced to the handbook during onboarding, and it is accessible in all production locations as well as on the internal intranet. It serves as a daily reference for aligning individual behavior with Spectre’s values.

Anti-corruption policy – sets clear expectations for ethical behavior, prohibiting all forms of bribery, facilitation payments, and unethical business practices. It provides guidance for employees on handling gifts, hospitality, and potential conflicts of interest, ensuring transparency in all interactions. It helps employees recognize and prevent corruption risks.

Whistleblower policy and mechanisms: We have clear procedures in place to report irregularities or

unethical behavior. Multiple channels are available for both anonymous and open reporting, supported by strong whistleblower protection mechanisms to prevent retaliation. To date, no reported cases have resulted in retaliation, which reinforces the trust employees have in these systems.

Training and education: We offer regular training to employees to ensure they understand Spectre’s values, ethical expectations, and applicable procedures. These sessions support the ongoing internalization of our responsible business principles.

Employee onboarding: We have implemented a standardized onboarding procedure to ensure all new employees are properly introduced to our company. On their first day, all new hires receive a brief introduction and initial training from Human Resources. This is followed by department-specific training: blue-collar employees undergo six days of hands-on training at their assigned sewing lines, while white-collar employees receive tailored onboarding within their departments, which varies depending on the role. After one month, all new employees participate in a more in-depth training session led by HR, covering company policies, regulations, and internal procedures in greater detail.

Identified IRO Category Value chain Actual/Potential Target

Political engagement P Own operations Potential Yes and lobbying activites

[P-positive impact]

As part of a global value chain, Spectre recognizes that many of the impacts we face are global and complex, requiring collaborative solutions across the industry. Spectre does not make political contributions and currently has no formal targets related to political advocacy. However, we recognize the importance of participating in industry-wide discussions that influence sustainable policy development. Therefore, we have joined several organizations and initiatives dedicated to promoting sustainability worldwide.

We are actively engaged through membership in these industry associations, which offer opportunities for collaborative lobbying on sustainability-related regulations:

Danish Fashion and Textile Association (DM&T):

Representing over 375 companies, DM&T provides expert guidance in corporate responsibility, HR law, and international trade. Spectre co-owner Jacob Klausen serves on its board.

Business Council Herning & Ikast-Brande: Representing more than 800 businesses in Central Jutland, Denmark, this council is involved in lobbying at local, regional, and national levels. Spectre co-owner Jesper Klausen acts as deputy chairman.

Aside from that we are members of:

Cascale (formerly Sustainable Apparel Coalition):

Through our involvement, we contribute to the deployment of Higg tools and work collaboratively with peers to improve sustainability across the value chain.

European Outdoor Group (EOG):

Allows for knowledge exchange and collaborative efforts in managing sustainability issues and engaging with policy development.

UN Global Compact:

As members since 2010, we align with the Ten Principles of the ILO covering human rights, labor, environment, and anti-corruption. We submit an annual Communication on Progress (https://cop-report.unglobalcompact.org/COPViewer/2024?responseId=R_8ceSNlNTMKaW6Nb), which ensures accountability and transparency. The platform also provides us with valuable sustainability training to support continuous improvement.

One of the key challenges in promoting transparency within global supply chains is the standardized identification of factories, as company names and addresses may vary. To address this, Spectre voluntarily contributes to the Open Supply Hub (OSH), a global, open-source map of apparel production facilities. Since 2022, we have shared information about all owned and subcontracted production sites on OSH. This initiative supports greater industry transparency and allows stakeholders to access verified data on our supply chain operations.

Target value 2030

HC.1 A safe, attractive and engaging working environment at Spectre

factory Higg vFSLM

score/industry top quartile

Corp Financial Security, Career Development, Engagement & Satisfaction score

HC.1.1 Accident-free workplace Accidents per 1 000 000 working hours

HC.1.2 Pay no less than a living wage for all employees % of employees

HC.1.3 Ensure compliance with overtime limits % overtime violation occurrence rate

HC.1.4 Effectively resolve non-conformances and grievances

% major non-conformances found in social audits and employee grievances remediated within less than 3 months

HC.1.5 Foster employee development through continuous training h of training per employee per year N/A - - Set

HC.1.6 Continuously monitor and improve employee wellbeing

% Employee engagement score in employee satisfaction survey

HC.2 Spectre’s supply chain meets high standards of social risk management Define by 2025

HC.2.1 Ensure scrutiny of preferred suppliers Define by 2025

HC.2.2 Assess supplier social performance Define by 2025

HC.2.3 Ensure social compliance of process and on-site contractors % of process and on-site contractors by spend audited for social compliance within last FY and NCs remediated

HC.2.4 Proactively manage supplier critical nonconformances Define by 2025

HC.3 Spectre is an inclusive workplace and contributes to local communities

and action plans

Corp Civic Engagement & Giving

HC.3.2 Improve employee work-life balance % work-life balance score in employee satisfaction survey

HC.3.3 Contribute paid employee voluntary work for local community benefit activities % of employees participated per year

ES.1 On a science-based path to net zero

ES.1.1 Improve

- - Set by 2026

by 2026

ID Target wording KPI Baseline value 2022/23

HC.1 A safe, attractive and engaging working environment at Spectre

Spectre factory Higg vFSLM total score/industry top quartile score

ES.1.3 Reduce GHG emissions from purchased goods and services not included in the product GHG emissions in purchased goods and services not including BoM(2)

B Corp Financial Security, Career Development, Engagement & Satisfaction score

HC.1.1 Accident-free workplace

ES.1.5 Reduce carbon footprint of logistics % GHG emission reduction in upstream transportation

ES.2 Reduced impacts on resource use

Accidents per 1 000 000 working hours

ES.1.4 Promote switch to renewable energy among suppliers % of renewable energy of total material suppliers adjusted by spend 0.3% 3.3% + >25%

HC.1.2 Pay no less than a living wage for all employees % of employees receiving a living wage(2)

Virgin, fossil-based material to turnover ratio

- 100%

(2022)

HC.1.3 Ensure compliance with overtime limits % overtime violation occurrence rate N/A - - 100%

of waste repurposed 26% 31% + 90%

ES.2.1 Reduce the amount of virgin, fossil-based material used % of virgin, fossil-based material of total 55% 50% + < 28%

ES.2.2 Reduce leftover fabric in stock % of fabric leftovers in stock for the last 4 seasons 4% 3.73% + 1%

HC.1.4 Effectively resolve non-conformances and grievances % major non-conformances found in social audits and employee grievances remediated within less than 3 months

ES.2.3 Own production waste is repurposed % of solid waste repurposed 26% 31% + 90%

HC.1.5 Foster employee development through continuous training h of training per employee per year N/A - - Set by 2025

ES.2.4 Switch to circular packaging materials % of packaging materials - - - 100%

HC.1.6 Continuously monitor and improve employee wellbeing

ES.3 Responsible environmental management practices B Corp Environmental score 39% -* n/a 65%

% Employee engagement score in employee satisfaction survey N/A - - Set by 2025

HC.2 Spectre’s supply chain meets high standards of social risk management Define by 2025 N/A - - Set by 2026

ES.3.1 Achieve leading environmental performance of Spectre’s factories

Spectre factory Higg vFEM total score / industry top quartile score 85% 86% + >110%

ES.3.2 Increase % LEED certified production % of LEED certified production 24% 31% + >90%

ES.3.3 Promote transparency of environmenal impacts in the supply chain

Share of spend on suppliers with verified Higg FEM assessment 16% 34% + 80%

HC.2.1 Ensure scrutiny of preferred suppliers Define by 2025 N/A - - Set by 2026

HC.2.2 Assess supplier social performance Define by 2025 N/A - - Set by 2026

HC.2.3 Ensure social compliance of process and on-site contractors

ES.3.4 Improve access to safe water for people in Vietnam # of people benefitting from improved access to clean water or safely managed sanitation

ES.3.5 Reduce microplastics pollution # of initiatives identified and completed - - - 6

LC.1 Spectre provides eco-design data and services to customers

by 2026

% of process and on-site contractors by spend audited for social compliance within last FY and NCs remediated N/A - - >90%

HC.2.4 Proactively manage supplier critical nonconformances Define by 2025 N/A - - Set by 2026

HC.3 Spectre is an inclusive workplace and contributes to local communities

Average PEF score of products produced by Spectre N/A - - Set by 2025

LC.1.1 Build capacity to perform product LCAs Yes/No N/A - - Yes

B Corp Civic Engagement & Giving score

LC.1.2 Ensure availability of material/supplier specific information for PEF % of materials by spend covered N/A - - Set by 2025

HC.3.1 Set and implement localized DEI targets and action plans

LC.1.3 Aid customers in designing products to improve durability and longevity

Share of targets reached N/A - - 100%

# of styles improved 0 - - Set by 2026

# of customers

LC.1.4 Cooperate with customers to improve product end-of-life treatment

LC.2 Production relies on a responsible supply chain B Corp Supply Chain Management score

- - Set by 2025

HC.3.2 Improve employee work-life balance % work-life balance score in employee satisfaction survey N/A - - Set by 2025

HC.3.3 Contribute paid employee voluntary work for local community benefit activities % of employees participated per year N/A - - >25%

LC.2.1 Develop due diligence processes in line with CSDDD

ES.1 On a science-based path to net zero

LC.2.2 Prioritize sourcing from responsible suppliers

Average supplier sustainability score spend weighted N/A - - Set by 2025

LC.2.3 Ensure supply chain traceability of at-risk materials % at risk materials accurately traced by spend

ES.1.1 Improve energy efficiency in own operations MWh per million minutes 35.6 36.1 - 30

LC.2.4 Suppliers commited to Spectre's requirements % of suppliers by spend signed Spectre’s Code of conduct

-* B Corp is recertified every 3 years, therefore we will measure our progress acordingly. Our recertification is scheduled in 2026

- - Set by 2025

ES.1.2 Reduce GHG emissions from employee commute GHG emissions from employee commute 0.5 t CO2e/ employee 0.55 t CO2e/ employee - -25% Target value 2030

Detail and annexes

Detals and annexes

ESRS Mapping

As stated in Report details section, we do not claim full compliance with ESR requirements just yet, but we are on our way to it. The list of disclosure requirements fulfilled following the double materiality assessment (ESRS content index) is provided below.

ESRS

ESRS 2 SBM-3

ESRS S1 S1-1 Policies related to own workforce

ESRS S1 S1-2

ESRS S1 S1-3

ESRS S1 S1-4

ESRS S1 S1-5

ESRS S1

ESRS S2 S2.SBM-3

ESRS S2 S2-1

ESRS S2 S2-5

ESRS G1 G1-1

ESRS G1 G1-5

Processes for engaging with own workers and workers’ representatives about impacts

Processes to remediate negative impacts and channels for own workers to raise concerns

Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions

related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities

Stakeholder engagement in double materiality assessment; A safe, attractive and engaging working environment; 33-37; 92-99;

Report Details

We structure this report around the three pillars of our Responsible Business Strategy 2030 — Human-Centered, Environmentally Sound, and Leading the Change. While ESG (Environmental, Social, and Governance) refers to how a company’s sustainability performance is assessed, and CSR (Corporate Social Responsibility) focuses on the ethical implementation of business practices, we use the term Responsible Business to combine and expand on both concepts. This approach better reflects our philosophy, which is aligned with Spectre’s DRIVe values and the principles of B Corp certification. It underscores our commitment to positively contributing to the well-being of our employees, society, and the environment, guided by the best knowledge and practices available.

The reporting period covers the financial year from April 1, 2024, to March 31, 2025. This report is prepared on a consolidated basis, using the same scope of consolidation as our financial statements. It includes information on material ESG topics identified through a Double Materiality Assessment, conducted in alignment with European Sustainability Reporting Standards (ESRS) requirements. Where relevant, we also include key developments from previous years to provide additional context and comparability. The time horizons applied are consistent with ESRS 1: short-term (current fiscal year), medium-term (1–5 years), and long-term (more than 5 years).

Spectre is currently in a transition phase toward full implementation of the European Sustainability Reporting Standards (ESRS). At this stage, we are fully meeting all current reporting requirements applicable to our type and size of company, as we are not yet in scope for mandatory ESRS reporting. While selected elements of the ESRS framework have been incorporated into this report, we do not claim full compliance with the Corporate Sustainability Reporting Directive (CSRD) at this time, in order to maintain transparency during this transition period.

Wherever possible, historical data is provided for KPIs and other performance indicators. This information has been updated where changes in methodology have occurred compared to previous reporting years.

Spectre_ResponsibleBusiness Report 24_25

Responsible Business Report

MANAGEMENT LETTER

2024/2025 HIGHLIGHTS

KEY FIGURES

Spectre’s carbon footprint

OUR TRAIL

VISION & MISSION

OUR BUSINESS MODEL

OUR LOCATIONS

PEOPLE AND VALUES

Dedication

Responsible

Spectre Core Value Model

D R I v e Dedication Responsible

Proactive

RESPONSIBLE BUSINESS GOVERNANCE

RB Committee, Vietnam

Board of Directors

Group Responsible Business Director

Functional responsibilities

Supply chain

HR+CSR – Vietnam & Latvia

Others (managing directors, Sales, Finance)

STRATEGY

Spectre’s

Responsibility Philosophy: TO MANUFACTURE IN A SUSTAINABLE AND RESPONSIBLE WAY

ENVIRONMENTALLY HUMAN-CENTERED

ENVIRONMENTALLY SOUND

LEADING THE CHANGE

Double materiality guides our priorities

TOP RANKING MATERIAL TOPICS

4.

Outcomes of double materiality assessment

Distribution Use Waste

Pollution from chemicals

Targets and actions

Targets and actions

Science

based targets

Science based targets

Progress in 2024/2025

Progress in 2024/25

Investing in Renewable Energy

Waste management

Decarbonization path

Collaboration and data integration

SPECTRE’S MAIN DECARBONIZATION LEVERS

Materials

Circular business models

Own operations

ENVIRONMENTALLY SOUND

ENVIRONMENTALLY SOUND

Energy and emissions

Energy and emissions

own operations

Own operations

Energy sources in Spectre Europe locations

GHG Inventory summary

Gross Scopes 1,2,3 and Total GHG emissions

Share of Scope 3 GHG emissions 2024/25

Driving down emissions

Driving down emissions

What’s the difference between Cascale, Worldly and Higg?

Solar panels at Spectre Headquarters in Denmark

What does this mean?

Resource use and pollution

Resource use and pollution

Emissions from purchased goods and services

Fabric circularity properties

Addressing PFAS use

Logistics emissions, what can we do?

Consolidation of transportation.

Reducing fabric leftovers

From challenge to resource

Supporting customer claims

A changing landscape

smarter approach to waste manage-

A smarter approach to waste management

Generated waste composition, t