Sustainability report 2023

Page 1


SUSTAINABILITY REPORT

www.touchpointww.com

www.touchpointww.com/sv

Info@touchpoint.fi

INTRODUCTION……………………………………………………………………….

Sustainability Specialist’s Greetings…………………………………..

Touchpoint Highlights 2023………………………………………………..

New Brand look.……………………………………………………………………..

THEME 1: Environment & Climate.……………………………………….

Materials and material development.…………………………………

ReTouch by Touchpoint……………………………………………………….

Production and supply chain…………………………………………………

Touchpoint’s carbon footprint.…………………………..………………..

THEME 2: Business and Growth.

Sales review 2023………………………………………………………………….

International Touchpoint.…………………………………………..…………

THEME 3: People and Well - Being..

SUSTAINABILITY SPECIALIST’S GREETINGS

In corporate sustainability work, the focus is shifting toward meeting sustainability requirements . Watching this change unfold has been both interesting and rewarding Last year, we set out to clarify what sustainability means for our company : What are our quantitative and qualitative goals for building a sustainable future?

"With the EU's textile strategy, our industry now has clear guidelines that, when followed, will better address the planet’s sustainability challenges.

So, what does a sustainability expert in an SME think about all this? Naturally, there’s a sense of relief, as we no longer need to search for subtle signs of where the industry is headed or for the most sustainable ways to design and produce workwear As frameworks are being developed at the national level, with industry experts invited to participate in working groups, it has been important for Touchpoint to be involved sharing our perspectives and learning how legislative changes and directives are shaping the industry .

One thing is clear : data must be managed and gathered from both stakeholders and the company’s own systems And perhaps most importantly, new information should be broken down and simplified so that all this new knowledge becomes more accessible and understandable

On the other hand, it’s often said that responsibility begins where the law ends . While upcoming legal and regulatory changes will undoubtedly bring these closer together, there will still likely be room to go beyond what the laws and directives require Let’s get to work

Yes, We Comply!

TOUCHPOINT HIGHLIGHTS 2023

RESPONSIBILITY

RESPONSIBILITY

NEW BRAND LOOK

We start with an analysis of your needs, requirements and your sustainability preferences. All in order to ensure that our sustainable workwear solutions will have the desired impact on your business, and on the planet.

Our production chain is highly agile, both in terms of production volumes and type of products. We work with long-term partners and in a fully transparent way. We commit to accepting a quantity of end-of-life textiles corresponding to the collection.

“ Sustainability is present at every stage of the service we provide .

We wanted to capture our holistic approach to sustainability Touchpoint’s new brand look was completed in 2023 Our goal was to bring our image up to date, reflecting a time when discussions around “green” claims and sustainability aim to establish more unified frameworks . As part of the work, we updated our brand colors to several shades of blue, with denim blue as the primary color of our logo a nod to denim as one of the world’s first durable workwear materials

You can explore our brand identity further on our website:

www.touchpointww.com/en

We can create a completely new collection or simply update and improve existing models.

Process aims to reuse textile raw materials, reduce the amount of virgin textiles used and lower CO 2emissions, among other things.

3. PROTOTYPING & TESTING

When the design is done, we make prototypes of the collection to ensure it meets all your requirements of quality, durability, fit, appearance and branding . The suitability of the collection is ensured by internal quality tests as well as end - user testing.

We offer e.g. customised and tailor-made ecommerce solutions, warehousing & fast delivery, customer service, and recycling service for used clothing.

In collaboration with the customer, we develop the design strategy and solutions by, for example, collecting feedback from users, monitoring and analysing key performance indicators and defined metrics, seeking alternative materials and identifying potential environmental and cost-saving opportunities

WORKWEAR SERVICE 6. OPTIMISATION

CUSTOMER FOCUSED SUSTAINABLE PRODUCTS

The best sustainable workwear solutions for us, you and the environment.

MAIN TARGETS:

1. Happy customers

Measurement and improvement of customer satisfaction

2. Environmental awareness

Calculation of our carbon footprint and increasing the use of recycled materials

3. Producer liability

Development and gradual expansion of audit reporting

MATERIALS & MATERIAL DEVELOPMENT

The largest source of emissions in our operations comes from the textile materials used in the workwear we produce . In 2023, we successfully made significant reductions to our greenhouse gas emissions.

Materials

Each year, we calculate our carbon footprint at Scope ( 1 ,) 2 , and 3 levels The main source of emissions in our operations comes from the fabrics and knits used in our workwear As in previous years, we used the emission calculator provided by the Carbon Neutral Textile Industry 2035 commitment for our emissions calculations . Compared to the previous year, our material usage decreased, largely due to producing mostly light workwear Cotton and polyester, both typical for our industry, continue to dominate our material mix .

We source fabrics for our own production directly from fabric suppliers who ensure compliance with the EU’s REACH regulations for materials .

Key Suppliers

Our primary fabric suppliers in 2023 , listed alphabetically, were :

Carrington Textiles / United Kingdom

Concordia Textiles / Belgium

Foxa Oy / Finland

Klopman International / Italy

Utexbel / Belgium

Textile Waste

In 2023 , we received a total of 154 ,119 kg of endof - life textiles from our customers These textiles were recycled at the Rester textile processing plant in Paimio, where Touchpoint is a founding member and major shareholder .

Environment and Climate

RETOUCH BY TOUCHPOINT

Our New Circular Economy Fabric Innovation

In 2023 , we received the first batch of our newly developed workwear fabric, which incorporates recycled textile - to - textile fibers (circular fiber) Retouch was created in collaboration with Klopman /TDV and Rester , with the recycled textiles being used as part of a new workwear fabric Our goal for this project was to create a fabric suitable for the workwear market, so the proportion of recycled fibers was carefully selected to meet the necessary quality standards for workwear . This resulted in ReTouch a unique, closed - loop workwear fabric .

The ReTouch fabric is produced using recycled fiber from Rester , a mechanical textile processing facility The recycled fiber is sourced from end - of - life textiles, making it a significant step toward closed - loop textile production and more

sustainable practices What sets ReTouch apart is that it meets the demanding durability and quality requirements for workwear fabric, even with 10 .5 % of the fiber content coming from Rester’s recycled post- consumer textiles . This allows for the use of discarded sheets and old workwear in the fabric’s production without compromising quality, and the fabric’s emissions are nearly 10 % lower than those of an equivalent fabric made entirely from virgin raw materials .

"We at Touchpoint are excited that the ReTouch material meets the required standards for workwear quality and is suitable for industrial laundering," says Noora Salonoja, CEO of Touchpoint "We can now offer even more sustainable solutions to our broad customer base, from the service sector to the care industry "

"Long - term product development with various partners demonstrates that collecting, sorting, and mechanically recycling post- consumer textiles have a real value in the textile circular economy ecosystem . We have the opportunity to drive change in the textile industry and set new standards for textiles," says Anna- Kaisa Huttunen .

Environment and Climate

PRODUCTION & SUPPLY CHAIN

The nearby production rate of our textile production was about 50 % in 2023.

During the year , we visited new production facilities in Bulgaria and Vietnam and conducted an extensive in - house audit at our partner factory in Vietnam, as well as at our partner factory in Estonia Our internal audits assessed production capabilities along with aspects such as workplace safety , waste management, and energy efficiency Additionally , our production partner in Vietnam holds a BSCI certificate .

Production by Country

In 2023 , 82 % of our products were manufactured through our primary production channels , consisting of subcontracted facilities managed directly by us We source the fabric ourselves and communicate directly with the sewing factories Throughout 2023 , Touchpoint had production sites in Estonia, Latvia, Bulgaria, and Vietnam . The Baltic region is classified as a low - risk area, while other countries mentioned are considered risk countries according to Amfori BSCI's risk classification .

(Ready-Made Garment – production)

To provide our customers with a comprehensive , high - quality ,

competitive , and responsible workwear selection , we also source production - related services outside our primary subcontracting network When using this so - called RMG ( Ready - Made Garment) model

Catalog Purchases

We also purchase some products from established finishedgoods manufacturers specializing in ready - made workwear collections We require transparency and valid quality certifications from all our suppliers . We also perform inspections at production sites , especially during the manufacture of large production batches . These catalog product suppliers are chosen as partners because they offer a wide range of responsible and/ or environmentally friendly products. We evaluate the sustainability of these secondary - level production partners primarily through certifications

In 2023, purchases from suppliers outside our primary subcontracting network accounted for 18% of the products we sold to customers ( measured i n pcs ).

CARBON FOOTPRINT

Emissions from Our Operations

In 2023 , the largest impact on emissions from Touchpoint's own operations was due to the relocation of our Helsinki office to more energy - efficient premises , along with a reduction in the emission factor of the district heating provider for our Tampere office

Scope 3 Emissions

For Scope 3 emissions , the most significant reduction was associated with the textile materials used . In 2023 , we used considerably lighter fabric types in our production

Logistics Emissions

Emissions from logistics decreased due to a reduction in air and land transport for production compared to the previous year

Business Travel and Employee

Commuting

Reductions in emissions related to business travel and employee commuting were achieved through increased use of electric and other low - emission transport options

CIRCULAR ECONOMY CREATING NEW BUSINESS

We offer our customers solutions for circular textile.

MAIN TARGETS:

1. Service model development:

New international customers and development of an international textile waste service model

2. Closed-loop workwear quality

Launch of a closed-loop workwear quality in 2023

3. Textile waste

Increasing the volume of textile waste (kg) delivered to Rester

SALES REVIEW 2023

(1/2)

For Touchpoint, 2023 was a year of rebuilding in terms of sales , as our reorganization efforts led us to focus more comprehensively on customer relationship development, expanding our service concepts , and refining our material and product management.

New public procurement contracts brought a number of successful opportunities , where our skilled product development team was able to showcase its expertise . In collaboration with the airport service company Airpro , we expanded our product range to include "heavy - duty " workwear , in addition to the uniforms for customer service personnel already provided .

Throughout the year , inflationary pressures heightened the importance of carefully timing purchases and ensuring supply reliability

" The lesson from this year , as in previous years , is that change is constant and continuous , and preparing for it is essential for business success . ”

Customer Surveys

In spring 2023 , we conducted our annual customer satisfaction survey . It was encouraging to see that sustainability is also an important value for our partners We received much positive feedback on our solution - oriented and responsive approach to resolving issues A majority of respondents were satisfied with our products and found the price - to - quality ratio favorable . Satisfaction with Touchpoint’s customer service improved compared to 2022 , and our Net Promoter Score (NPS) increased by 4 points , reaching 18 in 2023 .

2023 Sales by customer segment

SALES REVIEW 2023

(2/2)

Touchpoint AB

During the end of last year ( 2022 ) focus was on establishing Touchpoint Workwear AB as a company and setting up the legal and practical aspects surrounding this, while also starting to penetrate the Swedish workwear market.

By the end of 2022 a new Sales Assistant working with the Swedish market was employed and during 2023 the Sales Assistant has been actively working with the Swedish clients and co - operation partners in order to strengthen the service offering to the Swedish market.

” For Touchpoint Workwear AB 2023 was a year of development and continuing to build brand awareness among our desired client base as well as continuing to learn more about the Swedish workwear and uniform market. ”

During 2023 the deliveries to Sweden showed an impressive growth from the previous year and Touchpoint continued building brand awareness among the target segments and co - operation partners

In summary 2023 was a good year for Touchpoint Workwear with substantial growth in deliveries . 2023 was also a great year with lots of lessons learnt and internal development in order to utilize on Touchpoints strengths as a company and to be able to adapt these strengths for the Swedish market in the best possible way for the future Now we look forward to a new and exciting 2024

Country Manager Sweden

Touchpoint AB

Marko Ruotsalainen

Business and Growth

PROJECTS AND PARTNERSHIPS 2023

In 2023, our development efforts were heavily focused on advancing the Telavalue consortium project, led by VTT and supported by Business Finland. We continued to explore the Swedish market and other Nordic regions , and participated in our first Nordic public procurement process . Alongside product requirements , we examined various customer needs in these markets , particularly from the perspectives of additional services and systems . Our closed - loop ReTouch workwear fabric advanced from a pilot batch to a small production run , and we successfully launched this unique fabric in January 2024. You can read more about this under the "Environment and Climate " section

In this page there is a summary of our memberships and partnerships at an international level . In Finland, we actively participate in industry groups and sustainability initiatives led by the Finnish Textile and Fashion Association.

Our sustainability work is also supported by a diverse range of memberships in international networks and commitments . If you would like more information on these , please feel free to contact our Sustainability Specialist

In 2023, our most important memberships were

ADVANCING SUSTAINABILITY BOTH FOR

EMPLOYEES AND SOCIETY

Touchpoint aims to drive positive and sustainable development for both its employees and stakeholders.

MAIN TARGETS:

1. Acting as a spokesman for sustainability

Organizing and participating customer and stakeholder events

2. Motivated and competent personnel

Higher employee satisfaction and keeping employee turnover below 10%

PEOPLE AND WELL-BEING

Non-Profit Partnerships

Our partnership with Hospital Clowns continued in 2023 , and with the support of our collaborators , we produced new clown coats for them . This coat project was made possible through the contributions of Marimekko and the clothing design students from Keuda, the Central Uusimaa Vocational College

The Taitaja event annually gathers talented professionals from various fields to compete , inspire , and celebrate their expertise In 2023 , Touchpoint proudly supported the Taitaja event’s Sustainable Development Award . (Read more in our blog)

Breakfast Events and Webinars

In March 2023 , we hosted a breakfast event for our clients and partners This time , we were pleased to welcome Ali Harlin, who shared the success story of Infinited Fiber Company, and Arttu Lahti from Green Carbon , who spoke about the basics and updates in carbon footprint calculation .(Read more in our blog)

Diversity

In 2023 , we signed the FIBS Diversity Commitment This commitment is a tool developed by FIBS to help companies and other organizations in Finland advance their practices in diversity and inclusion (D&I) leadership . (Read more in our blog)

People and Well-Being

PERSONNEL

The year 2023 was challenging for our industry , prompting us to reassess Touchpoint’s cost structure We held organizational restructuring negotiations with our employees , which resulted in scaling back the team growth and future investments we had implemented in the previous year . Despite the difficult circumstances , we successfully completed the relocation of our Helsinki office , and from August onward , our team has enjoyed the historical ambiance of the Vallila Tie Factory

You can find details on the total emissions from our team's business travel in the Carbon Footprint section of this report

Aisti -Survey

In addition to our biannual employee satisfaction survey, in autumn 2023 we conducted an extensive Aisti survey with our occupational health partner, Aava According to the survey on workplace vitality, a successful workplace is made up of energetic people, a motivating environment, and an inspiring culture Touchpoint ranked well above average as a workplace with strong employee resources The survey comprehensively assessed employee perspectives on the work environment, company culture, and individual wellbeing

Occupational Health and Safety Committee

Touchpoint’s Occupational Health and Safety Committee continued its active work in 2023 , meeting four times annually or as needed . In 2023 , the agenda included updating the “ emergency procedures ” for the new Helsinki office and providing refresher courses for employees trained in first aid . For more information on employee benefits and opportunities , please refer to the employee section of our 2022 sustainability report.

TABLE OF GOALS

Sustainability Strategy

Customerfocused sustainable products

Indicator Status

Customer satisfaction survey report

Carbon footprint calculation

Utilisation rate of environmentally preferred materials

Customer satisfaction improved in 2023, with the Net Promoter Score (NPS) increasing from 14 to 18.

Our operational carbon footprint was calculated for 2023, achieving carbon neutrality within our own operations a successful outcome of our 2023 goal

We used 9,300 kg of recycled materials in 2023, although our usage decreased by 30%, falling short of our target to increase the proportion of recycled materials

Goal achieved in 2023 Goal 2024 -2025

2024: Improvement of the customer satisfaction

Target changed

Target changed

Obtain primary data from fabric suppliers on CO 2 emissions.Develop and report carbon footprint calculation annually Further development of carbon footprint calculation and reporting annually

Following the use of: 1. Recycled fibers 2. Cotton replaced by other cellulose - based materials 3.Synthetic fibers from renewable sources .

Audit reports 2023: Conducted audits at four production sites Yes 2024: Auditing of 4 production sites

End - of - life textile recycling

Circular economy creating new business

Active closed - loop project

Met our 2023 goal of increasing textile waste collection by 50% compared to 2022.

Target changed

Achieved the goal of producing workwear samples from the initial 500 - meter pilot batch and launched the new ReTouch workwear material . Yes

In 2024, the aim is to refine and update the best options for the recycling of discarded textiles by material .

This project was completed in 2023. New goal : Promote the use of recycled fibre from textiles to textile . A textile waste service model for international customer

For 2024, we aim to develop a service model suitable for international clients, including textile recycling services, with pilot testing planned This 2023 objective was successfully completed .

Target changed The target for 2024 is to complete the project.

New international customers No new international clients were acquired in 2023. Target not met 2024: 4 new international customers

Stakeholder events

Hosted one breakfast event in March 2023, but did not fully meet our target for events.

Target changed 3 attending events as an influencer or organising our own events

Positive social impact

Employee satisfaction grade

Employee satisfaction surveys were conducted twice in 2023. The average satisfaction score was 7.22, a slight decrease from 7.35 in 2022. The employee NPS dropped to - 5 from in 23 .

Employee turnover (%) during the calendar year

Target not met 2024: Improved employee satisfaction and NPS.

Our 2023 goal was to keep employee turnover below 10%. Target not met 2024: Employee turnover remains below 10 %.

Description and scope of reporting

The report covers Touchpoint Oy's operations for the period 1.1.-31.12.2023 and follows the GRI standard where applicable Touchpoint has prepared an annual sustainability report starting in 2020. The contact person for Touchpoint's sustainability work and reporting is Development Director Minja Kokkonen.

GRI STANDARD CATEGORY INDEX

2 - 1 Organizational details

2 - 2 Entities included in the organization’s sustainability reporting

2 - 3 Reporting period, frequency and contact point

REPORT SECTION COMMENTS

and scope of reporting

and scope of reporting

2 - 4 Restatements of information Touchpoint's carbon footprint

2 - 5 External assurance

report has not been verified ny 3rd party

2 - 6 Activities, value chain and other business relationships The production chain is described in more detail in the 2020 report: www.touchpointww.com/vastuullisuusraportti Sales, Production and supply chain, stakeholders and cooperation: presented in more detail in the 2022 report.

2 - 7 Employees

2 - 9 Governance structure and composition

2 - 10 Nomination and selection of the highest governance body

governance and management system is presented in more detail in the 2022 report

2 - 11 Chair of the highest governance body The governance and management system is presented in more detail in the 2022 report

2 - 13 Delegation of responsibility for managing impacts The governance and management system is presented in more detail in the 2022 report

2 - 14 Role of the highest governance body in sustainability reporting CEO approves Touchpoint's Sustainability Report

2 - 22 Statement on sustainable development strategy Table of Goals

2 - 23 Policy commitments

2 - 24 Embedding policy commitments

2 - 28 Membership associations Projects and partnerships

2 - 29 Approach to stakeholder engagement

GRI 3: Material Topics 2021

Sustainability and strategy presented in more detail in the 2022 report.

The governance and management system is presented in more detail in the 2022 report

Stakeholders and cooperation presented in more detail in the 2022 report.

2 - 30 Collective bargaining agreements Equality and non- discrimination presented in more detail in the 2022 report.

3 - 1 Process to determine material topics

3 - 2 List of material topics Table of Goals

3 - 3 Management of material topics

Sustainability and strategy presented in more detail in the 2022 report.

Sustainability and strategy presented in more detail in the 2022 report.

Sustainability and strategy presented in more detail in the 2022 report . A sustainability specialist will monitor developments in this area Discussions , developments and decisions are taken in the Management Group.

COMMENTS

201 - 1 Direct economic value generated and distributed Touchpoint highlights 2023

GRI 201: Economic Performance 2016

201 - 2 Financial implications and other risks and opportunities due to climate change

GRI 205: Anti - corruption 2016

205 - 1 Operations assessed for risks related to corruption

205 - 2 Communication and training about anti- corruption policies and procedures

205 - 3 Confirmed incidents of corruption and actions taken

GRI 206: Anti - competitive Behavior 2016

206 - 1 Legal actions for anti - competitive behavior, anti - trust, and monopoly practices

301 - 1 Materials used by weight or volume

301 - 2 Recycled input materials used

GRI 301: Materials 2016

301 - 3 Reclaimed products and their packaging materials

GRI 302: Energy 2016

The potential economic impacts of the climate crisis impacts have not yet been calculated. The most significant environmental impact of Touchpoint's operations is the materials used in its textiles, so the search for new, more environmentally friendly material alternatives is an ongoing effort at Touchpoint.

Anti - corruption is a key topic in Touchpoint's Code of Conduct

Anti - corruption guidance is included in the induction plan for new employee.

No known incidents

No known incidents

Materials and material development

Materials and material development

302 - 1 Energy consumption within the organization Touchpointin hiilijalanjälki

302 - 2 Energy consumption outside of the organization Touchpointin hiilijalanjälki

302 - 4 Reduction of energy consumption Päästöt

302 - 5 Reductions in energy requirements of products and services Matriaalit ja materiaalikehitys, Touchpointin hiilijalanjälki

303 - 5 Water consumption

GRI 303: Water and Effluents 2018

Complaints have their own reporting process and are monitored internally. As a matter of principle, we do not individually package products.

In the textile sector , water use is most significant in the production of materials We do not use much water in our own operations, but we can influence water use through material choices in product design.

305

305

305

305

305

306

not calculated

Comment: Touchpoint's Take back commitment aims to collect discarded textiles and put them back into circulation, saving natural resources. 306 - 2

GRI 404: Training and Education

404 - 1 Average hours of training per year per employee

404 - 2 Programs for upgrading employee skills and transition assistance programs Personnel

404 - 3 Percentage of employees receiving regular performance and career development reviews Personnel GRI 405: Diversity and Equal Opportunity 2016 405 - 1 Diversity of governance bodies and employees

Not counted for year - 23, but all employees have participated in both internal and external training.

Presented in more detail in the 2022 report.No age distribution given. 405 - 2 Ratio of basic salary and remuneration of women to men

Unable to notify in a small business without risk to personal data protection

- 1 Incidents of discrimination and corrective actions taken

known incidents GRI 407: Freedom of Association and Collective Bargaining 2016

407 - 1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk

GRI 414: Supplier Social Assessment 2016

GRI 416: Customer Health and Safety 2016

- 1 Operations and suppliers at significant risk for incidents of forced or compulsory labor No known cases We are working to increase our own audits at production sites We actively visit production sites.

414 - 1 New suppliers that were screened using social criteria Production & Supply chain 414 - 2 Negative social impacts in the supply chain and actions taken Production & Supply chain No known cases. We are working to increase our own audits at production sites. We actively visit production sites

416 - 1 Assessment of the health and safety impacts of product and service categories Materiaalit ja materiaalikehitys

416 - 2 Incidents of non- compliance concerning the health and safety impacts of products and services

417 - 1 Requirements for product and service information and labeling We follow customer requirements and local regulations regarding labelling

GRI 417: Marketing and Labeling 2016

417 - 2 Incidents of non- compliance concerning product and service information and labeling

417 - 3 Incidents of non- compliance concerning marketing communications

Customer Privacy 2016 418 - 1 Substantiated complaints concerning breaches of customer privacy and losses of customer data

known cases.

known cases.

known cases.

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