ENVIRONMENTAL POLICY

Background

As a textile company, we are aware that our operations affect the environment in a negative way. Consequently, it is our obligation to pursue environmental due diligence – during which process the major impact areas described below were identified. DK Company is committed to reduce this negative impact through-out our value chain, e.g. by working with suppliers to reduce CO2 emissions, reducing our own CO2 emissions and by choosing materials with a lower environmental footprint.

The environmental tasks of DK Company are guided by the UN Sustainable Development Goals (SDGs) in particular: Goal 7: “Affordable and Clean Energy” and Goal 13 “Climate Action. By addressing the contents of these goals, we aim to strengthen our ability to deal with the impacts and influence our business to achieve a better and more sustainable future for all. This policy describes our overall commitment to protect the environment and our key focus areas.



Scope

This policy applies to the value chain of DK Company, and our overall business operations.

At DK company we focus on 2 key areas of reducing our major environmental impacts: Chemical management in the textile production and reducing our CO2 emissions. We know, we are part of an industry that is responsible for 8-10 % of all greenhouse gas emissions yearly. Indeed, we acknowledge, we are a part of the problem and we are determined to change that around to become a part of the solution:



Chemical restrictions

One of our biggest environmental impacts derives from the use of chemicals in the textile production. To ensure our products do not contain any harmful chemicals and is safe for both our customers and the environment, we operate a strict chemical program. The chemical restrictions are included in our Supplier Manual, which our suppliers are obliged to communicate and share for compliance with all sub-contractors and suppliers of raw materials and components throughout the supply chain.

The program implies that all products must comply with our Restricted Substance List (RSL), which is based on the REACH* regulation, the European Union’s legislation on chemicals, including the chemicals on SVHC**. The chemical restrictions apply to all suppliers and their sub-contractors who are manufacturing for DK Company. Our RSL is updated annually, and with assistance from international external experts.

To ensure that our products comply with the requirements, we operate a chemical testing program. We cooperate with internationally recognized test agency, where selected garments are picked for test before they are shipped from our suppliers. We test for chemicals that may be harmful to people and the environment, in accordance with our requirements.



CO2 Emissions

In accordance to the Danish National Climate Law of December 2019, DK Company is committed to reduce our CO2 emission by 70% by 2030 (based on CO2 emission in 1990)
This ambition calls for new approaches and solutions.
Consequently, DK Company has signed licensing agreement with CEMAsys, Norway for reporting climate footprints.
The calculations are made in accordance with to the principles of GHG protocol (The Greenhouse Gas protocol) and ISO 14064.
It is our ambition that we via this agreement will have tools to collect data for covering the overall reporting of Scope 1 and 2. Data collection Scope 1 started Q4 2020.

DK Company has signed amfori BEPI (The Business Environmental Performance Initiative)
It is our ambition to collect data regarding Environmental performance from Tier 1 and/or beyond=Scope 3.
BEPI provides a useful framework that can support all product sectors in all countries to reduce their environmental impact, business risks and costs through improved environmental practices.
Via this tool we will focus on CO2 emission in Tier 1 for making YoY commitments w. our 5 Strategic Suppliers to make a platform to start this journey.

With these engagements we will be able to work systematically with reducing our CO2 emissions.



Responsible sourcing & Material Targets

At DK Company cotton, polyester, and viscose are the primary fibers.
As part of our commitment to protect the environment, we have developed a material strategy focusing on gradually increasing our use of more responsible materials across our products. The implementation of the strategy relies on collaboration and partnerships with other organizations dedicated to developing more responsible materials. In our material strategy, we have set below targets:

• In 2017 we became member of BCI. As a member of BCI, we contribute to be part of the movement which is transforming the cotton industry.
By 2022 we will source 100% of our cotton from more sustainable alternatives. (e.g. Organic cotton, BCI and recycled cotton)

• In 2019 we became member of Leather Working Group (LWG). The focus of LWG is managing environmental and chemical issues on the tanneries.
By 2021 we will source 100% of our leather from tanneries with a minimum of Bronze level according to LWG (Leather Working Group).

• In 2020, we became a member of FSC. As member of FSC Denmark we are proud to support the promotion of environmentally appropriate, socially beneficial, and economically viable management of the world’s forests. We work together with FSC Denmark to increase our use of FSC certified materials. This goes for both viscose, paper and cardboards. By 2025 we will source 100% of our viscose from more responsible alternatives.(e.g. Eco Vero and FSC® certified materials)

• By 2025 we will source 50% of our polyester from more responsible alternatives.(e.g. recycled polyester).

As part of our material strategy we have developed a material guide, which is an internal tool for employees and partners, to use when choosing an alternative to a conventional fiber. Our materials guide is continuously updated with information on fibers that constitute preferred alternatives compared to conventional fibers.



Targets on packing materials

Our ambition is to reduce the packaging materials in general and in future to use materials deriving from more responsible sources:
By 2020 we will source 100% of our paper and cardboard boxes as Recycled or FSC® certified materials.
By 2020 we will source 100% of our poly- and master bags as recycled plastic.



Approval

This statement was approved by the Parent Company DK Company A/S and relates to all the companies in the DK Company Group