Side 4

INTRO We are done with throw-away society. Internationally, the clothing industry is responsible for around 4-8% of the emissions of greenhouse gas emissions 1,2 . Additionally, the production of textiles is often marred by pollution of water and air, extensive use of natural resources, poor working conditions and a lack of transparency. T The challenges of the textile industry are exacerbated by low prices and short apparel cycles, which fuel over consump - tion and a degradation of the value of clothes. As a result, many garments are discarded well before they are worn out, simply because they have fallen out of fashion. In all, the planet pays a high pri - ce for cheap clothes. We need to solve these problems together – consumers, producers, environmental organisations, the recycling industry, researchers and the government. Consumers are becoming more aware of the urgent social and environmental challenges of the clothing industry and are demanding more sustainable solu- tions. But us producers must shoulder the bulk of the responsibility, by making high-quality clothes that last over time, reducing our emissions and being trans- parent with the environmental footprint of our garments. Since longevity is key to reducing the environmental impact of a garment, more producers also need to start competing with quality rather than price. The time has come to stop nurturing our throw-away society and start deve- loping a truly sustainable industry. And we want to be part of the solution. That is why we have joined forces with 40 other producers through the Swedish Textile Initiative for Climate Action (STICA) to measure and take concrete actions to reduce our climate impact. It is also the reason why we developed our Environmental Product Declaration, a new standard for objectively measuring the environmental impact of a garment. Finally, we are continuously working to incorporate more and more sustainably produced materials and energy-effi - cient processes when we produce our collections. It is a work in progress, but it is one that gives us hope for the future. 4 FRISTADS SUSTAINABILITY REPORT 2020 1 Quantis. 2018. Measuring Fashion: Environmental Impact of the Global Apparel and Footwear Industries. 2 McKinsey and Global Fashion Agenda. 2020. Fashion on Climate.

Side 5

02 Intro 06 Life Cycle Assessment 08 Governance 10 UN Sustainable Development Goals 14 Key focus areas 16 People – Employee engagement 20 People – Social compliance 22 People – Fristads during the pandemic 24 Planet – Fristads Green 28 Planet – Strategy 30 Planet – Design 32 Planet – About STICA 34 Planet – Quality 36 Planet – Initiatives 39 Planet – Closing the loop 42 Planet – Chemicals 44 Planet – Materials 50 Planet – Our lab 52 Profit – PostNL 54 Profit – Long-term partnerships 58 Sustainability performance indicators FRISTADS SUSTAINABILITY REPORT 2020 5

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