Touchpoint Sustainability report 24

SUSTAINABILITY REPORT 2024

www.touchpointww.com

Offices:

1

Pyhäjärvenkatu 5 C

Elimäenkatu 15

www.touchpointww.com/sv

33200 Tampere

00510 Helsinki

Info@touchpoint.fi

CONTENTS INTRODUCTION CEO Greetings………………….…………………….……………………………..3 Touchpoint Highlights 2024..……………………………………………..4 THEME 1: Environment & Climate

5

Supply chain development ………………………………………………….6 Production and supply chain -……………………………………………..7 Logistics…………………………………………………………………………………..8 Materials and material development …………………………………9 ReTouch by Touchpoint………………………………………………………10 Touchpoint’s carbon footprint …..……………………..……………….11 THEME 2 Business and Growth

13

Sustainability act of the year…………………….………………………. 14 Sales..……………………………………………………………………………………..15 Sales Sweden……………………………………………………………..………..16 Telavalue…………………………………………………………………………………17 Projects and partnerships ..…………………………………………………18 THEME 3: People and Well-Being

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Enough is enough webinar…………….…………………………………….20 Cooperation …………………..……………………………………………………….21 Factory visits in Estonia…………………………………………………………22 Personnel ………………………………………………………………………………..23 GOALS Table of Goals……………………………………………………………….………..24 GRI- indeX.………………………………………………………………………………252

INTRODUCTION

ENVIRONMENT AND CLIMATE

BUSINESS AND GROWTH

PEOPLE AND WELL-BEING

GOALS

CEO GREETINGS

The year 2024 was once again dynamic and eventful in many ways, and for us at Touchpoint it was also a period of change and of defining new directions. The years 2020–2023 were marked by major global “shocks,” such as the pandemic and the war in Ukraine, and the complex and often unpredictable consequences they caused in the markets and in our operating environment.

Although 2024 was not free from global turbulence either, we were nevertheless able to focus more strongly on the long-term development of our own operations and on exploring new opportunities.

The market environment remained relatively challenging both in Finland and across the Nordic countries. The overall economic situation and uncertainty — along with the effects of inflation and higher interest rates — created a sense of caution within our industry. As a result, many larger projects and investments were postponed. Fortunately, our 3

long-term customer partnerships remained strong throughout the year. However, in new customer acquisition we did not reach the targets we had set.

Among the year's key achievements were our market entry in Estonia and a new partnership with a major Finnish operator in the transport sector. In product sales, our clear success story was our microfiber care garments: in total, we delivered more than 300,000 units to both new and longstanding partners.

In 2024, we underwent a comprehensive recertification audit for the ISO 9001 quality management system and the ISO 14001 environmental management system. The audit included a thorough review of our processes, our achievement of set objectives, and our continuous improvement practices. We received substantial positive feedback, particularly regarding the consistency and high quality of our team’s work.

Towards the end of the year, our team experienced changes as our long-term colleagues and management team members, Arto and Minja, moved on to new opportunities outside the company. I would like to once again express my sincere gratitude to both of them for their valuable contributions to Touchpoint – thank you.

I wish you an insightful and inspiring reading experience. With this report, we hope to once again share openly how we operate and how we strive to advance more sustainable practices within the textile industry. We warmly welcome any feedback or suggestions for improvement.

– Noora Noora Salonoja CEO,Touchpoint Oy

INTRODUCTION

ENVIRONMENT AND CLIMATE

BUSINESS AND GROWTH

PEOPLE AND WELL-BEING

GOALS

TOUCHPOINT HIGHLIGHTS 2024

BUSINESS HIGHLIGHTS

ENVIRONMENTAL RESPONSIBILITY

40

72 331€

7,9

Customer satisfaction score for the workwear NPS (2023 score was 18)

Income taxes paid in Finland 2024

Customer satisfaction score about the products(0-10)

50

Offsetting CO2 emissions from our own operations (2023) and a Christmas gift for the climate.

SOCIAL RESPONSIBILITY

-25 %

carbon credit units* purchased We made it possible to pass work clothes from one user to another p. 7

7,1 Employee satisfaction remained good

Photo: The Central Chamber of Commerce’s Corporate Responsibility Day , November 2024

Scope 2 carbon footprint reduction compared to 2023

10 Stakeholder Webinar in January 2024

New workwear delivered for 10 Hospital clowns

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INTRODUCTION

ENVIRONMENT AND CLIMATE

BUSINESS AND GROWTH

PEOPLE AND WELL-BEING

GOALS

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

MAIN TARGETS : 1.

SUPPLY CHAIN DEVELOPMENT

Strengthen our delivery reliability and increase production flexibility 2. MATERIAL EFFICIENCY Track the amouont of environmentally preferable materials and the use of recycled materials

3. ENVIRONMENTAL AWARENESS AND CARBON FOOTPRINT Calculating our carbon footprint and learning from it

5

INTRODUCTION

ENVIRONMENT AND CLIMATE

BUSINESS AND GROWTH

PEOPLE AND WELL-BEING

GOALS

SUPPLY CHAIN DEVELOPMENT In 2024, the most significant development area was our procurement chain and production network. Our key objective was to strengthen delivery reliability, increase production flexibility and agility, and improve our competitiveness both in terms of quality and cost. As a result of these changes, the share of production in Estonia decreased relative to other locations. Production volumes were divided rather evenly between Vietnam, Estonia, and our new production country, Sri Lanka.

HIGHLIGHT OF THE YEAR 2024

We always aim for long-term partnerships and select new suppliers and manufacturers with great care. For this reason, the final selection and onboarding of these new partners required sustained work that had already begun in 2023. During 2024, we were able to move from planning to execution in the form of concrete orders and deliveries. I am pleased to say that the changes in our procurement chain were implemented successfully, and the integration of new partners has given us a solid foundation and confidence to continue working with our selected network in the years ahead.

–Noora Salonoja, CEO of Touchpoint

Picture: Our team members trip to Sri Lanka, August 2024 6

INTRODUCTION

ENVIRONMENT AND CLIMATE

BUSINESS AND GROWTH

PEOPLE AND WELL-BEING

GOALS

PRODUCTION & SUPPLY CHAIN In 2024, the focus of our garment production shifted from nearshore manufacturing to Asia.

In 2024, the majority of the workwear we produced was manufactured in Asia. In addition, collaboration with our new production partner in Sri Lanka required close coordination and several audit visits linked to the start of the partnership.

PRODUCTION BY COUNTRY We produced 76% of our garments in 2024 through our production partners in the Far East. During the year, Touchpoint had production in Estonia, Lithuania, Bulgaria, Ukraine, Sri Lanka, and Vietnam. We also sourced a smaller share of ready-made products from other Asian countries. The distribution of production volumes by country is presented in the adjacent table. The Baltic region is classified as low-risk. All other mentioned production countries fall under medium-risk countries according to the Amfori BSCI risk classification.

Working with a new production partner typically requires more introduction visits and close cooperation during the first projects.

Our team visited Sri Lanka several times, and within a short time we have already gained valuable insights into collaboration practices and local culture. In the Amfori risk scoring, Sri Lanka receives a score of 38.23, placing it in the medium-risk category.

7

TRANSPORT OF PRODUCTS In 2024, we clarified and improved the way we report transport data.

Transport volumes are now reported in kilograms by mode of transport. In earlier years, reporting was based on transport events.

This change enables more accurate calculation of the carbon footprint generated by transport activities. However, we want to note that the updated calculation method is not comparable with figures reported in previous years.

TRANSPORT OF PRODUCTS 2024

31 % 62 % 6 %

BY LAND

BY SEA

BY AIR

GARMENTS PRODUCED BY COUNTRY(%)

39 % Vietnam

25 % Sri Lanka

24 % Estonia

4 % Pakistan

3 % China

1 % Bangladesh

1 % Bulgaria

1 % India

INTRODUCTION

ENVIRONMENT AND CLIMATE

BUSINESS AND GROWTH

PEOPLE AND WELL-BEING

GOALS

LOGISTICS 2024 The year 2024 was again marked by global geopolitical tensions, which posed challenges to the execution of our projects.

In 2024, the focus of our workwear production shifted to Asia, highlighting the importance of quick reactions, careful planning, and effective collaboration. A successful transition required close cooperation with our freight forwarders and customers to keep logistics under control despite global challenges In Finland, port strikes had a significant impact on logistics. The strikes caused traffic jams at ports and delays in sea and road freight transport even after the strikes had ended. The Port of Helsinki, for example, reported that its cargo volumes fell significantly in the first quarter of the year precisely because of these strikes.

shipping companies to reroute vessels on longer routes around Africa. This significantly lengthened transit times and increased shipping costs. Although global demand was not necessarily at the peak levels seen during the pandemic, certain Far Eastern ports continued to experience bottlenecks and capacity limitations that slowed loading and unloading.

We strove to respond quickly to the prevailing situation and succeeded in keeping our projects on schedule despite the challenges. The year 2024 taught us to react quickly to changing situations and to take risks and challenges into account already during the project planning phase.

The year 2024 continued to be marked by global geopolitical tensions, which caused uncertainty and occasional disruptions to shipping and port operations in the Far East (e.g., route changes and delays at ports). These disruptions lengthened transit times and increased fuel consumption, which directly impacted carbon dioxide emissions from shipping. For example, the security situation in the Red Sea region deteriorated significantly, forcing

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INTRODUCTION

ENVIRONMENT AND CLIMATE

BUSINESS AND GROWTH

PEOPLE AND WELL-BEING

GOALS

MATERIALS & MATERIAL DEVELOPMENT The largest source of emissions in our operations is emissions from the textile materials used in the workwear we produce. In 2024, we shifted our focus even more specifically to textile materials.

PRODUCT MATERIAL COMPOSITION 2024

63 % Polyester 4 % Polyester (Recycled)

TEXTILE 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 Material usage increased compared to the previous year. In 2024, polyester accounted for the largest share of the materials used in the workwear we produced. This is due to the high production volumes of polyester-based microfiber garments we manufacture for the healthcare sector. At the same time, however, we can note that the expected lifespan of this product group is significantly longer than that of the corresponding cotton/polyester blend material. The rate of use of regenerated cellulose-based fibers as a substitute for cotton fell from seven percent to just two percent in 2024. This is due to the project-based nature of our production.

26 % Cotton

OUR TEXTILE SUPPLIERS

2 % Lyocell

We source fabrics for our own production directly from fabric suppliers who have ensured that the materials comply with REACH requirements in accordance with EU legislation. Our most significant fabric suppliers in 2024 were, in alphabetical order: CarringtonTextiles/United Kingdom Foxa Oy/Finland Klopman International/Italy Utexbel/Belgium Orneule/Finland

2 % Polyamide 1 % Acryl 2 % Other

COMPOSITION OF END-OF-LIFE TEXTILES 2024

TEXTILE WASTE In 2024, we received a total of 128,276 kg of end-oflife textiles from our customers. This lower volume compared to the previous year is due to temporary interruptions in Rester’s collection services and changes in the types of materials accepted.

Polyester 19 % Cotton blend 36 % Polyester blend 32 % Mixed textiles 3 %

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INTRODUCTION

ENVIRONMENT AND CLIMATE

BUSINESS AND GROWTH

PEOPLE AND WELL-BEING

GOALS

RETOUCH BY TOUCHPOINT Our ReTouch fabric has been well received by our customers. We are proud to offer workwear fabric made from raw materials sourced in Finland. This material uses fiber collected from used workwear from customers across the Nordic countries. Our partner Rester handles the fiber recycling at its processing plant in Paimio. Enough virgin raw material has been added to the fabric to ensure it meets the quality criteria required for workwear.

Our long-standing workwear client, Hesburger, is always eager to try out the most sustainable options on the market. It was, of course, easy to know who would be among the first to use our workwear material containing recycled fibers (textile-totextile).

You can see ReTouch aprons in Hesburger restaurants.

Highlight of the year 2024

If you’re not familiar with our innovation, don’t worry.

Visit our website at www.touchpointww.com and read more in our News section.

Photo: Hesburger/ Photographer FiinaThessler

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INTRODUCTION

ENVIRONMENT AND CLIMATE

BUSINESS AND GROWTH

PEOPLE AND WELL-BEING

GOALS

TOUCHPOINT’S CARBON FOOTPRINT

In 2024, the emissions from Touchpoint’s own operations (Scope 2) were most significantly influenced by our energy-efficient office spaces in Helsinki and Tampere, as well as lower emission factors from our district heating provider.

For Scope 3, the most significant changes in emissions were related to the textile materials used. We used more fabrics in our production, and also more heavy fabrics than in the previous year.

Logistics emissions increased because there were slightly more air shipments for production than in the previous year. *In addition, we refined our reporting on product transportation for 2024, so the transportation emissions calculations from previous years are no longer comparable with each other. Transportation is now reported in kilograms per mode of transport. In previous years, reporting was based on individual transport events.

This change allows us to report the carbon footprint of transport with greater accuracy.

Employee business travel abroad increased significantly compared to previous years. We plan to continue conducting systematic audit visits to our production countries in the coming years, so the share of business travel will remain at 2024 levels in the future.

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IDENTIFIED GREENHOUSE EMISSIONS 2024 OFFICE ELECTRICITY DISTRICT HEATING OF OFFICES OFFICE COOLING ((NEW) Transmission and distribution losses in electricity and district heating TEXTILE MATERIALS USED IN PRODUCTION PACKAGING MATERIALS FREIGHT IMPORT/EXPORT* TRANSPORTATION AND PROCESSING OF OFFICE WASTE BUSINESS TRAVEL PERSONNEL COMMUTING

SCOPE

2021

2022

2023

2024

scope 2

0

0

0

0

scope 2

18,59

16,68

8,89

7,11

scope 2

0

0

0

0

scope 2

0,47

scope 3

1799,49

3 199,81

2128,04

2 726,90

scope 3

9,8

5,03

5,53

6,86

scope 3

31,02

92,46

60,5

317,33

scope 3

0

0

0

0

scope 3

8,02

19,93

12,99

38,99

scope 3

5,12

5

2,79

3,42

1872,04

3338,91

2218,736

3101,08

TONS PER YEARA

Photo from our Team visit to Sri Lanka, August 2024

12 12

INTRODUCTION

ENVIRONMENT AND CLIMATE

BUSINESS AND GROWTH

PEOPLE AND WELL-BEING

GOALS

BUSINESS AND GROWTH

MAIN TARGETS

1. HAPPY CUSTOMERS Measuring and Improving Customer Satisfaction 2. GOING INTERNATIONAL New customers 3. STAKEHOLDER ENGAGEMENT Project and Development Cooperation

13

Photo: Hesburger/ Photographerr FiinaThessler

INTRODUCTION

ENVIRONMENT AND CLIMATE

BUSINESS AND GROWTH

PEOPLE AND WELL-BEING

GOALS

SUSTAINABILITY ACT OF THE YEAR 2024

We made it to the finals of the “Sustainability act of the Year 2024" competition organized by the Central Chamber of Commerce!

We entered our reTouch fabric innovation in the “Responsibility Initiative of the Year” competition organized by the Central Chamber of Commerce, and we were delighted to make it to the finals. The “Corporate Responsibility Day” event took place on November 13, 2024.

Highlight of the year 2024 Photo Touchpoint: Suuri yritysvastuupäivä 2024 Anna-Kaisa Huttunen /Rester, Noora Salonoja/Touchpoint Oy 5

The event’s first panel discussion featured an inspiring conversation about the circular economy, in which our CEO, Noora Salonoja, participated alongside author Pasi Nokelainen and researcher Pekka Leskinen. We learned that we need more regulation, incentives, and collaboration. And that the circular economy is a combination remedy for many of today’s sustainability challenges.

Touchpoint did not win the Sustainability Initiative of the Year competition. The competition was deservedly won by a multi-stakeholder collaboration project, an innovation called “Circular Economy Brick.”

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INTRODUCTION

ENVIRONMENT AND CLIMATE

BUSINESS AND GROWTH

PEOPLE AND WELL-BEING

GOALS

SALES REVIEW: FINLAND AND THE BALTICS 2024 In 2024, we set out to revise our sales strategy and focus on developing key customer relationships and acquiring new customers in a targeted manner, while divesting ourselves of a few customer accounts as part of our operational restructuring. One major success was the successful delivery of larger-than-expected order volumes for a single large project, all on schedule.

SALES BY CUSTOMER SEGMENT 2024

7,9

40

Customer satisfaction with products (0-10)

Customer Satisfaction NPS Last year's result 18

In Finland, the schedules for expected requests for proposals in public procurement tenders were delayed, which affected the development of our order book in line with our targets. Following successful bids, we secured significant new customer contracts. A new important customer relationship opened up for us, among other things, to activate our service and logistics operations.

We also achieved success in Estonian procurement, where we have found suitable customer segments for us in this still unfamiliar territory by researching and exploring procurement opportunities.

Our strategic shift will continue in the coming years and is expected to bring clarity to our operations, as well as a positive boost beyond Finland’s borders.

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Care/Laundry sector 50 % Joni Mäenpää

Security 27 %

Sales Director

Service/Retail 16 %

Touchpoint Oy

Transportation 3 % Other industries 4 %

INTRODUCTION

ENVIRONMENT AND CLIMATE

BUSINESS AND GROWTH

PEOPLE AND WELL-BEING

GOALS

OVERVIEW OF THE SWEDISH MARKET 2024 TOUCHPOINT AB For Touchpoint Workwear AB last year (2024) was much about continuing to develop within the Swedish workwear market and as such establishing and developing relationships with both existing and potential Key Account customers and partners. In order to continue Touchpoint’s development and understanding of the Swedish healthcare market Touchpoint decided to be part of SIS (Swedish Institute for Standards) work with the Swedish Standards for healthcare textiles from the start of 2024.

Here Touchpoint is part of the Committee for Medical Textiles and also part of the team that works with the revision of SIS-TR 11 Textile Handbook. This has strengthened our knowledge regarding the Swedish healthcare market, the requirements and requests in a very positive way.

Despite the challenges in the Swedish economy as such Touchpoint has continued to advance in the workwear market and sees increasing interest in Touchpoints products, services and solutions which is encouraging for the future. In conclusion 2024 was another year of development for Touchpoint Workwear with new experiences, lessons learnt and lot of internal development. All this so we can continue to build on Touchpoints strengths as a company and use and adapt these strengths for the Swedish market for the future.

” Touchpoint continued to build brand awareness among its target groups and partners”

Marko Ruotsalainen Country Manager Sweden Touchpoint AB

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INTRODUCTION

ENVIRONMENT AND CLIMATE

BUSINESS AND GROWTH

PEOPLE AND WELL-BEING

GOALS

TELAVALUE In 2024, we completed our company’s Telavalue (Value chains for sustainable production, use and cycles of Textiles) project. This project, led by VTT from 2022 to 2024 and supported by Business Finland, enabled companies to participate in their own projects. The key objective of Touchpoint’s project was to develop an international workwear service model while also exploring the various possibilities for textile recycling in international markets.

A significant portion of the project’s resources was allocated to analyzing the Swedish market, and more limited research was also conducted in other Nordic countries and Estonia. During the project, we established a subsidiary in Sweden and built connections with numerous potential customers and partners.

As the project progressed, we quickly identified the differences between the workwear markets in Finland and Sweden. This insight guided the development of our market strategy and enabled us to focus on selected customer segments. The concrete goal of the project was to pilot the workwear service model we developed in Sweden during the second half of 2024. Although there was a slight delay in the schedule, we expect the pilot to take place during 2025.

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In addition to market research, our corporate project involved analyzing market-specific service models and product requirements. We studied Nordic tenders and product standards. Based on this, we also produced product samples and participated in several tender processes.

Our exploration of the Nordic workwear market sparked several internal development projects related to, among other things, fabric procurement, supply chain structure, and procurement models. Additionally, we investigated local textile recycling solutions and the pricing of end-of-life textiles in Sweden.

As part of the project, we implemented a closed-loop workwear model in collaboration with the end-of-life textile facility Rester, fabric supplier Klopman/TDV, and Lindström.

This innovation, the ReTouch fabric, was launched in January 2024. ReTouch is the first woven workwear fabric to contain fibers recycled from workwear. More information about the ReTouch fabric is available on our website.

As part of the project, we also familiarized ourselves with life cycle assessment (LCA) and carbon dioxide emissions

calculations, and gradually developed Touchpoint’s own emissions calculation capabilities. We provide our customers with emissions calculations for both the workwear they purchase and the textile waste they return.

In summary, Touchpoint’s corporate project Telavalue generated significant insights into the Nordic workwear market and its key players. This has helped us tailor our offering to these markets. In addition, we gained a concrete understanding of customer requirements, which has been essential in developing our service model. Touchpoint now has a clear plan for moving forward in the Nordic market, and we are confident that the resources invested in the project will yield results in the coming years.

INTRODUCTION

ENVIRONMENT AND CLIMATE

BUSINESS AND GROWTH

PEOPLE AND WELL-BEING

GOALS

PROJECTS AND PARTNERSHIPS 202524 Touchpoint is an active player in the textile and apparel sector in the Nordic countries. The year 2024 was no exception. We participated in the UN Global Compact’s SME Sustainability Group, where we thoroughly reviewed all aspects of corporate due diligence.

In 2024, we became a member of the Swedish Standards Institute (SiS) and are part of the Swedish healthcare standards working group. As a member, we work together with partners, customers, and end users to develop workwear for the Swedish healthcare sector and the processes surrounding it.

Our Sourcing Manager participated in a study tour organized by the City of Paimio and the EU, titled “Collaboration for a Sustainable Future,” to explore textile recycling in Turkey. The group visited Uşak, Turkey, where 72% of the country’s textile recycling takes place. Pre-consumer textile waste from the apparel industry is mechanically opened into fibers, which are then used in products such as blankets, rugs, felt, socks, and furniture. In addition to factory visits, the trip included meetings with Usak municipal council members and an introduction to Turkey’s traditional rugmaking.

Touchpoint also participated in the Cirpass 2 Lighthouse project, which began in 2024, where a digital product passport for workwear companies was developed in collaboration with the project’s partner companies.

HIGHLIGHTS OF OUR MEMBERSHIP IN 2024 • • • • • • • •

FIBS Swedish Chamber of Commerce Swedish Standards Institute (SiS) Finnish Chamber of Commerce Finnish Textile & Fashion Association Finnish Packaging Recycling RINKI Ltd Sverige Textil- ock modeföretag UN Global Compact

Photo: Collaboration for a Sustainable Future event

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INTRODUCTION

ENVIRONMENT AND CLIMATE

BUSINESS AND GROWTH

PEOPLE AND WELL-BEING

GOALS

PEOPLE AND WELLBEING MAIN TARGETS

1. OUR DUE DILIGENCE Development of customer and stakeholder engagement 2. ACTING AS A STRONG VOICE FOR RESPONSIBILITY Organising and participating in customer and stakeholder events 3. MOTIVATED AND SKILLED EMPLOYEE Improving employee satisfaction and maintaining an employee turnover rate below 10%

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Photo from our team's summer retreat, June 2024

INTRODUCTION

ENVIRONMENT AND CLIMATE

BUSINESS AND GROWTH

PEOPLE AND WELL-BEING

GOALS

ENOUGH IS ENOUGH! In January 2024, we organised a stakeholder webinar together with Rester. The aim of the webinar was to increase understanding of upcoming EU regulatory requirements in the textile sector and to support procurement professionals in making more sustainable choices. The webinar was highly successful, attracting well over 200 participants from 15 different countries.

The discussions highlighted the need for transparent and traceable value chains, more responsible material choices, and solutions that promote the circular economy. These elements are central to meeting the objectives of the EU Strategy for Sustainable and Circular Textiles and forthcoming regulations such as Extended Producer Responsibility (EPR), the Ecodesign for Sustainable Products Regulation (ESPR), the Digital Product Passport, and the Corporate Sustainability Reporting Directive (CSRD).

The speakers emphasised that the workwear sector is particularly well positioned to act as a frontrunner in building a sustainable textile ecosystem, as the sector benefits from eco-design approaches, material circulation, and close collaboration between value chain actors. The webinar discussions concluded that advancing sustainability requires, above all, transparency, reliable data, collaboration, and long-term development efforts across the entire value chain.

Watch the recording of this insightful discussion, Webinar Speakers: Stéphane Popescu, CEO, COSE361 Sustainable Apparel & Footwear Consultancy Hanna Lehmuskoski, Environmental Manager, Kesko Tomi Hilvo, Nordic Way Group Noora Salonoja, CEO, Touchpoint Oy Anders Mixe, Category Manager, Capio Nordic Anna-Kaisa Huttunen, Partnership Manager, Rester Oy

Highlight of the year 2024

Photo: Behind the scenes of our webinar, January 2024

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INTRODUCTION

ENVIRONMENT AND CLIMATE

BUSINESS AND GROWTH

PEOPLE AND WELL-BEING

GOALS

COOPERATION CUSTOMER RELATIONSHIPS Our responsibility extends deep into our collaboration with customers. We invest in partnerships and believe that open dialogue is key to success. The best outcomes are achieved when we have a thorough understanding of our customers’ needs. For this reason, we actively visit our customers and jointly review materials, collections, and other requirements with them. This approach enables us to ensure that we can provide solutions tailored precisely to their needs and serve them in the best possible way.

We also communicate openly about challenges and risks, allowing us to transparently offer more responsible solutions to our partners.

CUSTOMER AUDITS Touchpoint has many highly responsible companies among its customers and partners, many of whom also conduct their own audits. In 2024, Touchpoint’s operations were audited by one of our long-standing customers. In addition, one of our customers carried out an extensive production site audit at our manufacturing facility in Asia. As a result of these customer audits, we received a great deal of positive feedback on our sustainability practices.

NON-PROFIT COLLABORATION The collaboration between Hospital Clowns and Touchpoint continued in 2024.

Together with our partners, we produced new clown jackets for the Clowns. The jacket collaboration involved Marimekko as well as the garment sewing students from Keuda, the Central Uusimaa Vocational College.

ADVOCACY

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Photo: Our team’s visit to Rester, June 2024

Our team actively participates in the advocacy work of the Finnish Textile & Fashion Association. Upcoming EU regulation requires close monitoring and the clear articulation of our perspectives to ensure that future regulation is truly effective and supports the advancement of our industry.

INTRODUCTION

ENVIRONMENT AND CLIMATE

BUSINESS AND GROWTH

PEOPLE AND WELL-BEING

GOALS

FACTORY VISITS IN ESTONIA FACTORY VISITS IN NUMBERS

VISIT

VISITS IN TOTAL (2024)

General quality inspection visits at factories

5

10

General visits by all team members to our Estonian partner factory

55

Visits to factories by our quality inspector

60

Photo: Our team’s visit to our Estonian partner factory 2024

Estonia continues to be a key partner for us, although its operating environment has recently been challenging due to the geopolitical situation and high inflation. Despite these circumstances, we have maintained close cooperation, which has also opened up new business opportunities for us. Collaboration with Estonia plays a central role, for example, in pattern making and sample sewing, supporting the agile development of our products.

At the core of our sustainability efforts is extending the lifespan of our products. The role of nearby regions in enabling garments to be quickly circulated from one user to another is of primary importance. We have introduced a new storage and reuse service that allows products to be circulated from one customer to another. This service is one of our most important circular economy initiatives in 2024, helping us reduce environmental impacts and promote more sustainable consumption.

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INTRODUCTION

ENVIRONMENT AND CLIMATE

BUSINESS AND GROWTH

PEOPLE AND WELL-BEING

GOALS

PERSONNEL In 2024, our team was successful in numerous tenders and key projects. Due to the nature of our operations, we often manage several overlapping projects at the same time, which continuously challenges and develops our project management capabilities. In 2024, we adopted OKRs (Objectives and Key Results) as a management tool. This goal-oriented framework helps translate our strategy into everyday actions and supports the prioritisation of our team’s work. Even in a busy environment, we strive for openness, constructive interaction, and a strong team spirit.

Employee well-being is supported through the ePassi sports and culture benefit, which is offered to all permanent employees. Other employment benefits include, among others, flexible working hours and opportunities for professional development both during and alongside work. Employee satisfaction is measured twice a year. In 2024, our entire team completed up-to-date information security training provided by our ICT partner.

In June, we spent a summer team day in the charming surroundings of Mathildedal and Teijo National Park. We were also joined by our Quality Manager from Asia, Sumedha. The adjacent image shows a moment from our forest excursion during the summer team day.

The only constant is change. In 2024, we said goodbye to a few members of our team and initiated a recruitment process to welcome a new Touchpoint colleague.

TOUCHPOINT

BY GENDER

TOUCHPOINT

BY AGE

EMPLOYEE TURNOVER

25

Men

20 15

2022

10

2023

5

2024

5

Women

77 %

0 20-29

0 23

23%

10

Employee on average

Employee at the New employees Changes within end of the year the year

30-39

40-59

INTRODUCTION

ENVIRONMENT AND CLIMATE

BUSINESS AND GROWTH

PEOPLE AND WELL-BEING

Tavoitteet

GOALS

TABLE OF GOALS Sustainability Strategy

Customerfocused sustainable products

Circular economy creating new business

Positive social impact

Goal achieved Goal 2025 -2026 in 2024

Indicator

Status

Customer satisfaction survey report

Customer satisfaction improved 2024. NPS 18->40

Yes

2024: Improving customer satisfaction scores

Carbon footprint calculation

Our operational carbon footprint was calculated for 2024.

Climate units purchased for own emissions in 2024.

Yes

Obtain primary data on CO2 emissions from fabric suppliers. Develop a carbon footprint calculation method and report on it annually.

Target changed

Monitoring the utilisation rate of the following materials: 1. Recycled fibers 2. Cellulose fibers that replace cotton 3. Synthetic fibers produced from renewable natural resources.

Utilisation rate of 1. 9700 kg environmentally preferred 2. 4400 kg materials 3. 80 kg Audit reports

2024: Conducted audits at four production sites.

Yes

2024: Conduct 4 audit on the production sites.

End-of-life textile recycling

In 2024, efforts were made to further specify and update the most appropriate recycling options for end-of-life textiles by material type.

Yes

We will update our goals during 2025.

Active closed-loop project

Promoting the use of recycled fibres from textiles. (Circular textile)

Yes

A textile waste service model for international customer

Project finished 2024. Read more

Yes

New international customers

No new international clients in 2024

The goal was not achieved

Stakeholder events

Active participation in events. “Enough is Enough” webinar..

Read more. Final round of the Central Chamber of Commerce’s 2024 Corporate Social Responsibility Award.

Yes

Employee satisfaction grade

Employee satisfaction surveys are conducted twice a year.

The average employee satisfaction score for the year was 7.1 (7.22 in 2023), and the NPS was 5 (the figure for 2023 was -5).

The goal was partially achieved

Employee satisfaction and NPS are improving.

Employee turnover (%) during the calendar year

Change in staff: 15%.

The goal was not achieved

Employee turnover remains below 10%.

We will update our goals during 2025..

We will update our goals during 2025.

4 new international customers 3 participating in events as an influencer or organizing your own events

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INTRODUCTION

ENVIRONMENT AND CLIMATE

BUSINESS AND GROWTH

PEOPLE AND WELL-BEING

GOALS

Description and scope of reporting The report covers Touchpoint Oy's operations for the period 1.1.-31.12.2024 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 Anni Wulff-Kokko.

GRI STANDARD CATEGORY

INDEX

REPORT SECTION

2-1 Organizational details

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

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

Description and scope of reporting

2-3 Reporting period, frequency and contact point

Description and scope of reporting

2-4 Restatements of information

Touchpoint's carbon footprint

2-5 External assurance

The 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

GRI 2: General Disclosures

GRI-INDEX 1/4

Personnel

2-9 Governance structure and composition

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

2-10 Nomination and selection of the highest governance body

The 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

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

2-23 Policy commitments 2-24 Embedding policy commitments 2-28 Membership associations

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

Projects and partnerships

2-29 Approach to stakeholder engagement

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 GRI 3: Material Topics

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3-2 List of material topics 3-3 Management of material topics

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

Table of Goals

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.

INTRODUCTION

ENVIRONMENT AND CLIMATE

BUSINESS AND GROWTH

PEOPLE AND WELL-BEING

GRI STANDARD CATEGORY INDEX

REPORT SECTION

GRI 201: Economic Performance 201-1 Direct economic value generated and distributed

Touchpoint highlights 2024

GRI 205: Anti-corruption

GRI 206: Anti-competitive Behavior GRI 301: Materials

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.

205-1 Operations assessed for risks related to corruption

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

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

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

205-3 Confirmed incidents of corruption and actions taken

No known incidents

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

No known incidents

301-1 Materials used by weight or volume

Materials and material development

301-2 Recycled input materials used

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

302-1 Energy consumption within the organization

Touchpoint’s carbon footprint

302-2 Energy consumption outside of the organization

Touchpoint’s carbon footprint

302-4 Reduction of energy consumption

Touchpoint’s carbon footprint

302-5 Reductions in energy requirements of products and services

Materials and material development , Touchpoint’s carbon footprint

303-5 Water consumption GRI 303: Water and Effluents

COMMENTS

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

301-3 Reclaimed products and their packaging materials

GRI 302: Energy

GRI-INDEX 2/4

GOALS

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.

26

INTRODUCTION

ENVIRONMENT AND CLIMATE

BUSINESS AND GROWTH

PEOPLE AND WELL-BEING

GRI STANDARD CATEGORY INDEX

GRI-INDEX 3/4

GOALS

REPORT SECTION

305-1 Direct (Scope 1) GHG emissions

Touchpoint's carbon footprint

305-2 Energy indirect (Scope 2) GHG emissions

Touchpoint's carbon footprint

305-3 Other indirect (Scope 3) GHG emissions

Touchpoint's carbon footprint

COMMENTS

GRI 305: Emissions

305-4 GHG emissions intensity 305-5 Reduction of GHG emissions

Emissions/Turnover not calculated Touchpoint's carbon footprint

306-1 Waste generation and significant waste-related impacts

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

GRI 306: Waste 306-2 Management of significant waste-related impacts

Materials and material development

308-1 New suppliers that were screened using environmental Production & Supply chain criteria GRI 308: Supplier Environmental Assessment 308-2 Negative environmental impacts in the supply chain and Materials and material development actions taken

GRI 401: Employment

401-1 New employee hires and employee turnover

Personnel

401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees

Personnel

Presented in more detail in the 2022 report.

401-3 Parental leave

Personnel

Presented in more detail in the 2022 report.

403-1 Occupational health and safety management system

Personnel

Presented in more detail in the 2022 report.

Personnel

Presented in more detail in the 2022 report.

GRI 403: Occupational Health and 403-2 Hazard identification, risk assessment, and incident Safety investigation

27

INTRODUCTION

ENVIRONMENT AND CLIMATE

GRI STANDARD CATEGORY

BUSINESS AND GROWTH

PEOPLE AND WELL-BEING

INDEX

REPORT SECTION

404-1 Average hours of training per year per employee GRI 404: Training and Education

GRI 406: Non-discrimination

COMMENTS Not counted for year -24, but all employees have participated in both internal and external training.

404-2 Programs for upgrading employee skills and transition Personnel assistance programs 404-3 Percentage of employees receiving regular performance and career development reviews

GRI 405: Diversity and Equal Opportunity

GRI-INDEX 4/4

GOALS

Personnel

405-1 Diversity of governance bodies and employees

Presented in more detail in the 2022 report.No age distribution given.

405-2 Ratio of basic salary and remuneration of women to men 406-1 Incidents of discrimination and corrective actions taken

Unable to notify in a small business without risk to personal data protection No known incidents

407-1 Operations and suppliers in which the right to freedom GRI 407: Freedom of Association of association and collective bargaining may be at risk and Collective Bargaining

No known cases. We are working to increase our own audits at production sites. We actively visit production sites.

GRI 408: Child Labor

408-1 Operations and suppliers at significant risk for incidents of child labor

No known cases. We are working to increase our own audits at production sites. We actively visit production sites.

GRI 409: Forced or Compulsory Labor

409-1 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.

GRI 414: Supplier Social Assessment

GRI 416: Customer Health and Safety

414-1 New suppliers that were screened using social criteria 414-2 Negative social impacts in the supply chain and actions taken 416-1 Assessment of the health and safety impacts of product and service categories 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 417-2 Incidents of non-compliance concerning product and GRI 417: Marketing and Labeling service information and labeling

GRI 418: Customer Privacy

417-3 Incidents of non-compliance concerning marketing communications 418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data

Production & Supply chain Production & Supply chain

No known cases. We are working to increase our own audits at production sites. We actively visit production sites.

Materials and material development No known cases.

We follow customer requirements and local regulations regarding labelling No known cases.

No known cases.

No known cases.

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