Pentland Positive Business Report
This is Pentland Brands’ fourth annual Positive Business report, evaluating improvements made during the period January 2022 - December 2022 and our plans for 2023 and beyond.
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This is Pentland Brands’ fourth annual Positive Business report, evaluating improvements made during the period January 2022 - December 2022 and 01 CEO’s message 3 our plans for 2023 and beyond. It evaluates our progress against core metrics set out by the World Economic Forum’s International Business Council. It was 02 About 4 approved by the Pentland Brands Executive team on 27/04/23. Our previous Positive Business reports can be viewed here. 03 Highlights 5 We welcome your feedback on how we can improve our policies and approach to corporate responsibility. To get in touch, email us on corporate.responsibility 04 Brands 6 @pentland.com 05 Governance 14 06 People 18 07 Planet 26 08 Prosperity 38 09 Next steps 41
Letter from our CEO As we re昀氀ect on the past year, there’s no denying I’m incredibly proud that our brands have pioneered 3 that 2022 presented our teams with unprecedented bold moments in 2022. Speedo’s Swim United initiative challenges. From the continuing impact of COVID campaigned for children to 昀椀nd joy in the pool while to an ongoing climate emergency and the escalating learning a life-saving skill. Berghaus launched its free cost of living crisis, we faced obstacles that tested repairs service, Repairhaus, which recognises that one our resilience and determination. But, driven by our of the best things we can do to give products a second purpose to pioneer brands that make life better, we life is mend and repair our garments. Another highlight achieved remarkable milestones that demonstrated was Kickers’ vegan footwear launch. Priced the same the immense value of our people and brands. as its leather products, this shows how our brands can in昀氀uence the planet positively. We made strong progress in our 100-1-0 sustainability This commitment extends beyond our organisation, as goals. Launched in November 2021, we’re aiming to help Last year also marked 20 years of Design Pool, our we actively participate in and contribute to many global 100 million consumers live positive, active, sustainable in-house design internship programme that has industry groups and organisations. By working with lifestyles, improve the lives of one million people in our supported over 200 young creatives. others, we can push change further. We choose not to communities and become a net zero business by 2032. work in isolation, and our positive business actions align It’s our incredible people and culture that sustain with the United Nations’ Sustainable Development Goals. In 2022, we helped 19 million consumers and improved our business ambitions. When faced with challenges, the lives of 190,000 people in our communities. We have trusting the capabilities and competency of the brilliant Despite some tough challenges in 2022, teamwork, also signed up to the Science Based Targets initiative people in our organisation has seen us through. We’re resilience and agility were key to unlocking some (SBTi), committing to creating a clear carbon reduction uncompromising in our high standards, focused on doing incredible achievements for Pentland Brands. Looking roadmap to reach net zero. Internally, our sustainability the right thing for our people, planet and partners, and ahead, we remain committed to learning and evolving goals are now an important part of our overall business resolute in our ambition to create a successful business to make an even greater impact. strategy, with our annual employee bonus only being for the long term. paid if we achieve yearly targets against our sustainability goals. As a family business, our culture continues to be anchored in values of trust, compassion and working Chirag Patel together to make a better Pentland. CEO, Pentland Brands
About us Positive business Pentland Brands is the name behind some of the world’s best sports, outdoor and Our positive business strategy sets out three major goals to take action for people 4 lifestyle brands. We own Speedo, Berghaus, Canterbury of New Zealand, KangaROOS, and planet by 2032. This strategy is shaped by the United Nations’ Sustainable Endura, ellesse, SeaVees, Red or Dead and Mitre. We’re also the UK footwear and Development Goals, with this report showing how we tackle global inequalities apparel licensee for Kickers and manage the Fitco business. Our products are sold and environmental challenges. Read more here about our goals and progress. either directly or by licensees and distributors. 100– 1 – 0 * Making life better: We will improve the lives of 1 million Pentland Brands is a division of Pentland Group, a privately owned, global brand people in the management company with retail and wholesale businesses in sports, outdoor communities in and fashion. which we operate. Pioneering Driving +21 +1,500 +190 +100,000 brands for good: a sustainable We will help 100 future: o昀케ces across employees countries people working million consumers to We will be a net 4 continents globally products in our supply live positive, active zero business. and sustainable available in chain lifestyles.
2022 Highlights 5 Help 100 million consumers Improve the lives of 1 million Drive a sustainable live positive, active people in the communities future with net zero and sustainable lifestyles we operate in by 2032 Signed up to 19 million 190,000+ Science Based consumers impacted people supported in our communities Targets initiative to validate our net zero plans Kickers launched 昀椀rst 100% 135,000+ Berghaus certi昀椀ed as vegan collection products donated to charitable organisations B Corp Berghaus repaired 1,000+ Funded the planting of 6,000 charitable organisations supported 7.8 million items for free across 12 global regions trees
Speedo believes everybody has the right swimming outside at New Year with 6 to experience the joy of swimming. Mental Health Swims and by sharing inspirational stories of real outdoor It’s also journeying towards using more recycled materials in its products. swimming communities in the UK. The swimwear brand supports It’s working towards reducing the organisations and initiatives that help environmental impact of its products. communities become water safe. Its In 2022, Speedo increased the Swim United programme has funded volume of products that use recycled over 4,500 swim lessons for kids in the materials as its main materials to 61%. UK and South Africa through the Black It also constructed goggles from Swimming Association, Panathlon materials that use less fossil-based and National Sea Rescue Institute, carbons compared to traditional among others. It’s also petitioning plastics and has a speci昀椀c kickboard the UK Government for greater and pullbouy made from a material equity in the water and to change mix that includes algae. It’s working the downward trend of nearly 1 in towards having recycled materials as 3 children in the UK leaving primary the main material in all its items by school unable to swim. In the USA, 2024. More info on pages 34 and 36. it donated to diverse water safety organisations, including the US Boys Speedo cares about the world’s wild and Girls Club LA, Make a Splash waters with its Trees for Clean Seas Foundation and Rising Tide E昀昀ect. project, planting 2 million mangroves in 2022. It also completed a project Speedo’s Outsiders Club celebrated with Planet Water Foundation in the mental health bene昀椀ts of Vietnam to provide clean water for drinking and sanitation.
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Berghaus’ mission is up to open the began in 1966. It relaunched its repairs 7 outdoors to more communities and service, Repairhaus, in 2021, providing 6,000 free repairs to its customers inspire more people to enjoy nature. in 2022. Berghaus was certi昀椀ed as B Corp and joined a globally recognised Berghaus backed initiatives that community that uses business as a enhance accessibility to the outdoors force for good. It was awarded B Corp for underrepresented groups, status after a rigorous assessment supporting The Outward Bound Trust, that covered governance, workers, It’s Great Out There Coalition, community, customers, and the Millimetres 2 Mountains and Black environment. Berghaus is the 昀椀rst Girls Hike. It’s also committed to brand in the Pentland Brands portfolio conserving the outdoor environment, to achieve the sought-after status. planting 2 million trees through Eden Reforestation Projects and partnering The outdoor brand prides itself on with outdoor organisations including making long-lasting and repairable the John Muir Trust and the European gear, which it has done since it Outdoor Conservation Association. Berghaus use Made Kinder, an internal criterion, to help its consumers see the gear made from materials that minimise impact. As part of the criteria, products must be free from harmful chemicals and made with 100% certi昀椀ed responsible down or sustainable cotton.
The global brand continued to support by its tennis ambassadors including 8 charity initiatives, champion diversity in Paul Jubb, Freya Christie, and the fashion and sports world, and help wheelchair tennis star and world its consumers be authentically bold. number one, Al昀椀e Hewett. ellesse donated clothing to In Kind To celebrate Pride, ellesse collaborated Direct, a UK charity that distributes with independent UK streetwear brand items to charitable organisations Goguy. Together, ellesse x Goguy including community projects, child/ launched a Teletubbies collection, youth care and family welfare celebrating the much-loved children’s organisations across the UK. These TV characters. The collection was items provide warmth and protection hosted by Ru Paul’s Drag Race queen and support physical and mental Baga Chipz MBE and worn by the wellbeing. Teletubbies at London’s Pride parade. It launched a competition to regenerate ellesse partnered with charity: water a local community’s tennis court. to provide clean water access to its Entries were judged and shortlisted communities in India — one of its sourcing markets. The organisation works in communities where access to clean water can be as low as 4%. They build piped water systems so people can access clean water in their homes.
Mitre uses the power of football to Mitre teamed up with the charity 9 encourage players from all backgrounds Shelter to use football to raise to live active and healthy lives. awareness around homelessness in the UK. It raised funds for Shelter’s The football brand clubbed together #NoHomeKit campaign by selling with rugby brand, Canterbury, to bespoke footballs and donating support its Fair Game initiative to 400 balls to be sold in Shelter’s give every primary school child in the charity shops. UK their own PE kit. Mitre donated £100k of footballs and equipment It championed the next generation of to the nationwide campaign. Its female football talent by supporting ambassador, Tyrone Mings, helped the UK non-pro昀椀t, Festival of the Girl. amplify the message and encouraged Mitre donated footballs to kick o昀昀 schools that needed PE kits to the football skills session and inspire sign up. young girls to try football in a fun and safe environment. It continued its long-standing partnership with the UK charity In Kind Direct, donating over 12,000 of its products to 336 charitable organisations. This donation of sports gear and equipment encourages sports participation in local communities.
Canterbury of New Zealand is building people in New Zealand, and the 10 inclusive sporting communities and mental health organisation batyr stepping up its game when it comes in Australia. to its sustainability e昀昀orts. Canterbury established an internal Canterbury continued to champion sustainability criterion for its products, grassroots rugby. It supported outlining that a minimum of 75% of women’s rugby through its Future a product must use materials such as Fund grant programme and its organic cotton or recycled polyester ‘Give It A Try’ programme with Irish with no harmful chemicals. It’s Rugby helped hundreds of girls committed to 50% of its teamwear aged 8-14 give the game a go. product range meeting these criteria in 2024. Canterbury is also on track To support struggling families during to switch to recycled fabrics in its the cost of living crisis, it launched custom rugby jerseys in 2023. Read the Fair Game initiative to provide a more on page 35. free PE kit for every school child in the UK. Canterbury donated £97,000 The rugby brand undertook trials for worth of sports kit to UK schools all packaging and transit packaging through charity partner In Kind to switch to recycled and/or Direct. recyclable materials in 2023. The worldwide rugby brand showed Canterbury planted 500,000 trees its support for mental health through its reforestation partner, initiatives, supporting I Am Hope, an Eden Reforestation Projects, helping organisation o昀昀ering hope to young to restore natural environments.
11 This Scotland-based brand believe by o昀昀ering minor repairs out of its cycling can be a force for change and Scotland production facility. It uplifts communities through mountain introduced PFC-free fabrics in 2018 biking. and all its MTB jerseys are made using post-consumer recycled The Endura Lifecycle Charitable Trust polyester fabrics (more than 50% led hundreds of free mountain bike recycled 昀椀bres). These fabrics sessions for groups that support are made from materials such as people from low-income communities recycled plastic water bottles. in central Scotland and groups that help people with additional needs. Since 2020, Endura has planted These sessions allowed people who 3.6 million trees through Eden might otherwise face challenges Reforestation Projects. The mangrove accessing outdoor activities to enjoy restoration project in Mozambique is the therapeutic e昀昀ect of mountain an initiative that works together with biking. communities to produce, plant and protect trees. It supported the Richmond Cycling Corp in Virginia, USA, a non-pro昀椀t supporting a group of young cyclists through sponsoring gear, training, and 昀椀nancial support. Endura designs durable kit that is built to last a long time and aims to further extend the life of its gear
This footwear brand champions diversity, It launched Kickers Collective, a 12 inclusivity and doing things a little free-to-enter national ambassador di昀昀erently. It’s also working on ways to programme that o昀昀ered 昀椀ve reduce its environmental impact. up-and-coming young creatives paid work experience and live brief Kickers launched a 100% vegan opportunities to support their career footwear range to o昀昀er parents a journey. Its Kickers Presents platform lower-impact option for their ‘Back also pro昀椀les and supports young to School’ shop without trading talent. quality, price, accessibility or style. It also introduced more recycled It kicked o昀昀 its partnership with the materials into its footwear. See more preloved platform Reskinned, allowing on page 35. its customers to trade in their used footwear for online credit. Reskinned It donated footwear to In Kind Direct, reuse, resell or recycle 100% of a UK charity that distributed the products received. items to children and families at 198 organisations. It planted a tree for every pair of Kickers made in 2022, equating to Continuing its partnership with Show over 1 million trees planted through Racism the Red Card, its Wear Red Eden Reforestation Projects. Day activation increased registrations for the fundraising event. Building on last year’s success, the brand also worked with Pentland Brands’ diversity and inclusion team to run internal anti-racism workshops for employees.
This Californian brand gives back to of the proceeds were donated to 13 people and the planet and continues generate awareness and advocacy to put its best foot forward to try around mental health support and make shoes more responsibly. resources for youth in Santa Barbara, California. For the past seven years, SeaVees has been a proud 1% For the Planet Its SeaChange sneaker collection member, donating 1% of its annual is made with recycled components, revenue to environmental causes. including recycled canvas uppers, It also supported local causes post-consumer recycled plastic laces, aligned with their values of LGBTQ+ metal-free stitched eyelets and rights, breast cancer awareness, recycled rubber outsoles with mental health awareness, women’s recycled material sourced from PET reproductive health and environmental plastic from single-use plastic causes supporting the Paci昀椀c Pride bottles. In 2022 it evolved the line to Foundation, Un Mar De Colores, include innovative new materials like Mental Wellness Center, Planned vegan corn leather and pineapple Parenthood, Keep a Breast, Xerces yarn. Every pair of shoes sold from Society and Gaviota Coast this collection gives back $1 to Conservancy. SeaTrees, a non-pro昀椀t that works to restore blue carbon coastal Its product collaboration with artist, ecosystems and ocean health Carissa Potter Carlson of People globally. I’ve Loved, created a custom sneaker with positive a昀케rmations. Ten percent
Governance We embed good governance and a culture of ‘doing the right thing’ through robust policies and governance structures, legal training for all employees, and social audits. This ensures 14 we continue to act responsibly to our people, consumers and the communities we operate in. These actions fall under the WEF Metric of ‘Principles of Governance’. Activity 2022 Status Progress SDG Review e-learning training on key Complete These include modern slavery, anti-bribery and corruption, 8 compliance areas. personal data and competition law. We updated the compulsory modern slavery online training module. Continue with risk assessment across Complete The internal group identi昀椀es, monitors and measures risk. 17 key business functions. In 2022 the committee met three times. Review upcoming legislation. Ongoing We reviewed upcoming legislative changes and customer requirements. 8 Continue to review and publish our Complete We reviewed our responsible exit and restricted countries list. 8 ethical trade policies.
Governance Governance structure We strengthen our approach to positive Our In Good Conscience forum We also promote ethical Governance structure 15 business through regular collaboration evaluates the risks and opportunities in behaviour through: across the business. This ensures we are our supply chain, including those related Compulsory online legal training CEO & continuously evaluating environmental, to ethics, integrity and the environment. modules so our people do business Executive social and economic risks and It’s made up of representatives from ethically and responsibly. These team opportunities, allowing us to make more supply chain, sourcing, corporate include modern slavery, anti-bribery informed and coherent decisions. responsibility and legal. and corruption, personal data and In Good competition law. Conscience Our code of conduct, outlined in Our Our Risk committee unites stakeholders forum, led by an Exec Standards, sets out our expectations for across key functional areas to strengthen Managing our risks through social member our employees, suppliers and partners. the e昀昀ectiveness of risk management in audits to ensure compliance with the Our Executive team oversees all the areas the business. They identify, monitor and ethical, social and operational criteria Senior detailed in Our Standards, including measure risk to improve awareness and set out in Our Standards. Our audit leaders responsibility for human rights, supply accountability. data can be viewed in our Modern chain and the environment. Slavery report. Representatives from corporate Our dedicated teams, leaders and Our whistleblowing service ensures responsibility, committees help us put our principles any employee can safely raise an legal, sourcing, and supply chain into practice, each with individual focus issue. This goes together with our areas including diversity, inclusion, Speak Up policy that re昀氀ects our Supply sustainability and charity. commitment to conduct our business chain honestly, ethically, and transparently. Structure for 2022
Materiality Pentland Brands materiality assessment framework We engage with our key stakeholders 16 to identify topics of importance to inform t 10 N A Ethical working conditions decisions on issues that matter to our an B Carbon reduction business. Information on our key 9 F O C Helping consumers to live business decisions and any resulting import A E a sustainable lifestyle stakeholder engagement can be 8 U B D Manufacturing waste found in our Pentland Brands Section emely K G E Use of sustainable materials 172 statement here. eholdersExtr7 C F Sustainable packaging ak Q J H G Diversity and inclusion t 6 L P R T H Transparency in supply chain D I I Governance ernal s 5 S J Supporting our communities xt o e K Chemical use t 4 L Microfibres ance 3 M Employee engagement N Safety of products M O Climate change impacts (extreme Import 2 weather/availability resource) P Renewable energy t 1 Q Water use in production an R Economic/political impacts 0 0 1 2 3 4 5 6 7 8 9 10 S Impact on biodiversity Import T Circular economy and new Important Extremely important business models U Responsible purchasing practices Importance to internal stakeholders
Risk and opportunities Supply chain delays between Russia and Ukraine 17 With lockdowns in China continuing increased the risks of cyber-attacks, into the 昀椀rst quarter of 2022, some so we moved our IT Security of our factory partners continued to Operations team to high alert status operate at a reduced capacity. Despite as a precaution and actively blocked known Russian IP addresses. our best e昀昀orts to keep things running smoothly, restrictions impacted the movement of orders to our freight Cost of living crisis forwarders. This meant we were unable To help our people with the cost of to ship some orders until lockdown living crisis, we applied an in-year restrictions eased in the second salary increase for our lower earners quarter. (5% in UK and varied in other locations) and a further increase for all Ukraine invasion employees from 2023 (7% in UK and Following the invasion of Ukraine the US with various increases across by Russia in February 2022, our other locations re昀氀ective of market priority was on how to support the conditions). We also introduced a package of support for including humanitarian e昀昀orts. See how we supported Ukraine with emergency 昀椀nancial education sessions and relief on page 24. money coaching (UK employees). W e paused trading in Russia on 28th February and suspended actively trading in the market until further notice. The escalating situation
People Our people are essential to our success. We aim to create equitable, supportive and inclusive workplaces that foster a positive and productive work environment. We also strive to improve 18 the lives of workers in our supply chain and support people in our communities. These actions fall under the WEF Metric of ‘People’. Activity Status Progress SDG Collect diversity data for our global o昀케ces. Ongoing We started collecting data and have a roadmap for collecting the rest. 5 Run anti-racism training. Complete We ran a series of global anti-racism workshops with Show Racism the Red Card. 10 Help young people from underrepresented Complete We partnered with The People to launch The Pentland Collective to help 8 communities enter the world of work. young people from underrepresented communities with work experience. Launch a global wellbeing hub. Complete We launched an internal global wellbeing hub to give our people mental, 3 physical, social and 昀椀nancial support. Improve the lives of 100,000 people in our global Complete We exceeded our target and impacted 190,000 people. 10 community through charitable actions. Donate 50,000 products to charitable Complete We exceeded our target and donated 135,000 products. 10 organisations. Continue mapping and assessing risk Complete We are continually increasing visibility in our supply chain. We published 69% 8 for our tier 2 suppliers. of our nominated fabric and 91% nominated trims suppliers on our website.
Diversity and inclusion We’re committed to creating a culture Supporting young talent We have four networks of passionate 19 of inclusivity and diversity and shaping As a business, we’re working hard to people across our global business “Being part of the Black Colleagues and our activities around these three pillars: incorporate diversity and inclusion that drive change and help Pentland their Allies network has been a source of pride. A highlight was the amazing into everything we do, from our brand become a better place to work: collaboration between Pentland and Positive: Our people and brands power campaigns to our recruitment Black Colleagues & their Allies, The People, where I, along with leaders diversity and inclusion. processes. We partnered with The LGBTQ+ Colleagues & their Allies, from around the business, mentored People, a mission-led start-up, to help a Network for Women & their Allies individuals from ethnic and underserved backgrounds.” Mark Williams, Black Inclusive: Everyone feels a true sense young people from underrepresented and a Wellbeing Network. Some of Colleagues & their Allies Network of belonging. communities break into the world of their actions for 2022 included: work. Called the Pentland Collective: the free mentoring Diverse: Striving for better representation programme helped A global anti-racism allyship across our business to re昀氀ect the diverse young people from Black, Asian, programme through Show Racism the consumers we serve. minority ethnic and underserved Red Card. We showcased our diversity “I’m very proud that Pentland puts communities develop their skills, work to MPs in UK Parliament. LGBTQ+ agenda front and centre, with an employee network that strives to We cultivate an inclusive culture in con昀椀dence and network. make it a welcoming place for everyone several ways: Our 昀椀rst-ever Pride celebrations to be their true authentic self.” Louis Kwong, LGBTQ+ Colleagues & their Allies across our global o昀케ces, a podcast Learning series “We are proud to partner with Pentland celebrating Coming Out Day and Our D&I knowledge series o昀昀ers Brands, a company that is engaged introducing the ability to add our people practical tips on how to and willing to listen, learn and support preferred pronouns to email a new generation of talent from be more inclusive in the workplace, underrepresented communities. I have signatures. covering topics like neurodiversity, had the privilege to be a mentee and disability inclusion, and inclusive mentor and it has had a major impact on Raising awareness around women my personal and professional growth.” leadership. Rochelle Livingstone, Programme -centric issues such as menopause. Manager at The People Employee networks
Equal opportunity Living wage high standards and processes to make Our people 20 We pay the Real Living Wage, as sure that pay is determined on a fair and outlined by the Living Wage Foundation, comparable basis, for every role in our for people working at Pentland Brands organisation. This includes consistent in the UK. This goes beyond the role evaluation processes and internal statutory National Living Wage and and external salary and bene昀椀ts Female Male minimum wage to pay an amount that benchmarking for roles. 51% 44% better re昀氀ects the cost of living. We *Undeclared ensure we pay at least the statutory Gender pay gap 5% minimum wage for our employees Workplace 昀氀exibility impacts gender across our global sites. We maintain equality, with data showing childcare responsibilities more likely fall to women. *The figure represents our employees We introduced ‘smart’ working policies across our global offices. It excludes 77 people who chose not to share to tackle this so that, wherever possible, their data. we can give people increased 昀氀exibility around where, when and how they UK Executive team work, which will ultimately open up more career opportunities, particularly for women. We’re mindful that the area to improve is the disproportionate number of men within the director level of our Female Male organisation. We are doing this through 40% 60% a combination of continued succession planning, talent pipeline development and external recruitment. See our Gender Pay Gap report here. *(April 2022)
Health and wellbeing We understand the bene昀椀ts of physical We launched a global wellbeing hub Twenty-four employees were 21 and mental activity. We promote physical, 昀椀lled with resources to help our people accredited as Mental Health First mental and emotional wellbeing in access support for mental, physical, Aiders by MHFA England. many ways. social and 昀椀nancial wellbeing. Gym access and other great facilities We are proud to support those are available at some o昀케ces. going through menopause, hosting interactive talks with menopause ‘Smart’ working to split time between experts and providing employee working from home and the o昀케ce education and training. to help our people better manage childcare, wellbeing or personal Expert talks helped raise awareness commitments. for prostate cancer mental wellbeing. Our wellbeing hub also o昀昀ers We o昀昀er enhanced shared parental information and advice on menopause, and neonatal leave and paid time o昀昀 endometriosis and ovarian cancer. for women to attend IVF appointments. Additionally, all employees have Volunteering is good for emotional unlimited access to Unmind, a platform and mental health. With that in mind, dedicated to mental wellbeing. we give our people paid time o昀昀 to volunteer for a cause they care about. Con昀椀dential, 24/7 access to counsellors and information specialists in emotional health, management, legal, debt, elder and younger care and 昀椀nancial advice.
Learning and development We believe in equipping our people helped us build our updated principles, 22 to reach their potential and supporting which shape how we behave. One of them in their personal and professional these behaviours is ‘Doing the right thing’, which encourages our people, learning journeys through experience, exposure and education. particularly those in leadership roles, to do the right thing even if it isn’t the Talent development easiest. We’re implementing these We support our people to unleash updated principles in 2023 and will their career potential in several ways, be including them in personal development plans. including o昀昀ering mentorship and development opportunities for young talent and upskilling our commercial Positive business bonus teams with our in-house learning In 2022, we introduced a new programme. In 2022 we launched approach to embedding positive a digital-昀椀rst learning channel to business across our business. enhance the digital skills of over 600 All employee personal development employees across our global plans now include annual positive organisation. This progressive business targets. We also changed learning series helps our people be our employee annual bonus scheme bold in a digital environment. so that, regardless of the sales revenue and pro昀椀t targets achieved, Pentland principles bonuses are only triggered if the We led a global project to re昀氀ect on business 昀椀rst delivers its annual our current culture and help us positive business targets. pinpoint our desired culture. This
Learning and development 20 years of supporting young creatives Design Pool builds into the larger 23 Design Pool, our in-house internship creative community by judging programme, has helped emerging creative events, sponsoring awards talent break into the creative working that develop fresh talent, and linking world for over 20 years. This industry with inclusive careers companies. -recognised programme o昀昀ers an invaluable opportunity to grow their It also works with enterprises, youth skill sets in a fast-paced, challenging, charities and schools to help kids and and rewarding real-life industry young people explore their creativity. setting. We supported 11 young people In 2022 it worked with The National with work placements through Saturday Club and the Northern New Designers. School of Art for a Berghaus masterclass to create recycled litter-picking bags. We’re also part of the UK Government’s Kickstart Scheme, which supplies job placements for 16-to 24-year-olds on Universal Credit. We assisted two young people in 2022. “I see the moment in their eyes when they realise their creativity can turn into a career.” Katie Greenyer, Creative Talent and Network Director
Communities Driven by our goal to improve the lives supply chain and sourcing market Emergency relief 24 of one million people in our communities, locations. We also o昀昀er separate funding We provided 昀椀nancial and product we support individuals and causes that to our brands to support charities that donations for people impacted by the inspire people to be more active, help re昀氀ect their values. Our partners can war in Ukraine and supported over communities in need, and reduce our be seen here. 1,200 people a昀昀ected by the 昀氀oods environmental impact. We’re proud of in Pakistan. our 2022 impact: New charity partner After a charity partner search, we Local charity squads 190,000+ welcomed Room to Read as our new Local charity squads, based out of people supported partner. Education is a pathway their locations, helped employee-led for gender equality, yet more than charitable actions in that area. 135,000+ 129 million girls worldwide* are Highlights include an Earth Day products donated not in school. Over the next three Beach Clean Up with employees years, we’ll support two major out of our Cyprus o昀케ce; 昀椀nancial 1,000+ education programmes in Cambodia, donations to Habitat for Humanity charities helped helping around 6,800 children aged in Hong Kong and a textbook and 12 to 17 each academic year. uniform donation to a school close 12 to our Bangalore o昀케ce in India. global regions Product donations Our brands continued to support the Charity partners UK charity, In Kind Direct, with product “Taking a few minutes away from We partner with a selection of donations. In 2022 brands donated 18 my day-to-day role to help local international charitable organisations pallets, or 5 truckloads of stock, worth charities makes me feel like we to support causes that resonate with over £1.4m, to In Kind Direct, who then are making small changes to help our brands’ consumers and positively distributed it to 972 charitable make the world a better place”. organisations across the UK. Juanita Hart, Charity Squad impact the communities in our o昀케ces, *UNICEF
Workers in our supply chain Apparel and footwear supply chains Facility Social and Labour Module 2021 2022 25 are complex and far reaching, making it (FSLM). In 2022 we encouraged more easier to hide the exploitation of workers. factories to complete the Higg FSLM Factories Annual Factories Annual veri昀椀ed self-assessment as this helps On any given day, 50 million people 昀椀nd business business themselves in a situation where they manage our labour risk. From 2021 there volume volume face modern slavery.* was a 67% increase in the number of tier 1 factories who completed the veri昀椀ed Tier 1 FSLM self-assessment 44 70% 36 54% We seek to have 100% visibility of our FSLM assessment. As a SAC member, supply chain and strive to build a fair, we are encouraging more of the factories FSLM veri昀椀ed 21 33% 35 54% ethical and transparent supply chain we use to the Higg FSLM veri昀椀ed self- self-assessment that protects and respects workers’ assessment within our third party audit rights and improves working conditions. programme. Tier 2 FSLM self-assessment 21 48% 35 59% We do this through robust policies We also provided targeted training for FSLM veri昀椀ed 13 14% 25 49% and governance processes, regular suppliers to train their employees who self-assessment risk assessments and audits, and work in factory-facing roles on health transparent supplier relationships. We and safety practices, labour laws and also work together with organisations the Higg Index FEM and FSLM modules. More information can be found in our Modern Slavery report. and businesses from across the globe This helps suppliers better track their Find out more about our supply chain model here. on industry-wide solutions to progress. View our tier 1 and tier 2 supplier lists on our website. continuously improve our ethical trading practices. *Global estimates of modern slavery One of the tools we use to assess working conditions in our supply chain is the Sustainable Apparel Coalition
Planet We recognise that we have a part to play in protecting our planet and its natural resources and are actively working on ways to minimise our impact. These actions fall under the 26 WEF Metric of ‘Planet’. Activity Status Progress SDG Establish a pathway to reduce emissions. Ongoing We’re currently working to verify our targets. 13 Complete targets for Higg FEM and vFEM for Complete We exceeded both targets (FEM 70% and vFEM 40%). 12 tier 1 and tier 2 factories in our supply chain. Complete projects to provide clean and easily accessible Ongoing We started a water project with charity: water in India and completed 6 water to communities in our sourcing markets. a water project with Planet Water Foundation in Vietnam. Map out visibility on products in the business Ongoing We have mapped out Europe and APAC and are still assessing 13 to prevent stock reaching land昀椀ll. North America. Although mapped out, locations are continuously evolving to prevent stock reaching land昀椀ll. Increase recycled contents across all plastics Ongoing Our brands continued to integrate recycled contents 12 used in hard and soft goods and minimise into product ranges. amount of material used. Plant 7 million trees. Complete Pentland Brands and our brands funded the planting 13 of 7.8 million trees with 7.4 million planted.
Net zero Our industry produces 10% of the world’s We’ve joined the Science Based Targets 27 carbon emissions* and the sixth report initiative (SBTi) and are currently from the Intergovernmental Panel on working to verify our emissions targets. Climate Change warns that an increase This will validate our transition plans of 1.5°C can have catastrophic climate to net zero and provide a clear roadmap consequences. to reduce our impact in line with the Paris Agreement goals. We’re also making We recognise that businesses have signi昀椀cant investments in tools to a crucial role in reducing the impact of support carbon data mapping and climate change. As part of our 100-1-0 tracking in 2023. We’re working positive business goals, we aim to on reducing our emissions in several become a net zero business by 2032. ways, including shifting to less impactful packaging, choosing materials and innovating products with lower impact, and trialling circularity solutions, which are detailed in the following pages. We use the SBTI de昀椀nition of net zero, which is balancing the amount of greenhouse gas emissions produced against what’s removed to reach ‘zero’. *World Economic Forum
Greenhouse gas emissions To help us reach our long-term goal Our GHG emissions for owned Emissions source 28 of net zero, we aim to reduce our operations in the UK in 2022 was greenhouse gas emissions (GHG). We 2,904 tonnes of carbon dioxide 2000 equivalent (tCO2e). This increased have the most in昀氀uence over our scope 1 and 2 emissions, particularly in our by 61% from 2021, partly due to owned operations in the UK. Although increased travel after lifting COVID 1500 1,575 1,593 these are smaller in comparison restrictions and the inclusion of to scope 3 emissions, we can make emissions from air, hotel and rail that 1,294 meaningful changes in reducing them. weren’t in 2021’s data but were onnes CO2e) t 1000 responsible for 54% of our 2022 ( 1,002 ear Scope 1: emissions. This includes all material y Direct emissions generated from owned scope 1, 2 plus scope 3 emissions y or controlled sources (like natural gas required to disclosed by the SECR, GHG b500 and company-operated transport). a UK carbon reporting legislation, 269 and may not re昀氀ect the entire carbon 124 90 123 Scope 2: footprint of the organisation. Although 0 80 Indirect emissions generated by we currently focus on capturing data 2020 2021 2022 purchased electricity. in line with UK legislation, moving Fuel combustion: natural gas Purchased electricity Fuel combustion: transport forward we’ll start gathering data Scope 3: from our global regions. Indirect emissions from our value chain, from raw materials to customer use.
GHG by year (tonnes CO2e) Energy consumption 29 Emissions source 2021 2022 Share (%) YoY Emissions source 2021 2022 Share (%) YoY variance (%) variance (%) Fuel combustion: 1,593 1,002 35% -37% Natural gas 8,696,838 5,491,826 49% -37% natural gas Electricity 4,770,260 4,528,373 41% -5% Purchased electricity 90 80 3% -11% Transport fuel 520,828 1,129,280 10% 117% Fuel combustion: transport 123 269 9% 119% Total consumption (kWh) 13,987,926 11,149,478 100% -20% Air N/A 1,444 50% N/A * The 2022 emissions figure for purchased electricity above (and used throughout) reflects our investment in a zero-carbon Hotel N/A 63 2% N/A electricity tariff at all our sites. In the terms of the Greenhouse Gas Protocol, this is called ‘market-based’ reporting - as opposed to ‘location-based’ reporting. Location-based reporting doesn’t take into account the electricity supply contracts Rail N/A 46 2% N/A a company has and instead uses a national carbon emissions factor for electricity, reflecting the diverse source of Total Emissions (tCO e) 1,806 2,904 100% 61% electricity generation supplied to the national grid. Following the location-based methodology (which is required to be also 2 reported under SECR alongside market-based figures), our 2022 emissions from electricity were 955.80 tCO2e (including Revenue (£m) 344 379.9 10% transmission and distribution losses), giving total annual emissions of 3,779.67 tCO2e and an intensity of 9.95 tCO2e per £m revenue. The electricity emissions figure above of 80 tCO2e is from grid transmission and distribution losses. Intensity: (tCO2e per £m) 5.25 7.64 46% Boundary, Methodology and Exclusions An ‘operational control’ approach has been used to define the Greenhouse Gas emissions boundary. This approach GHG by scope (tonnes CO2e) captures emissions associated with the operation of all buildings such as warehouses, o昀케ces, and manufacturing sites, plus company-owned and leased transport. This report covers UK operations only, as required by SECR for Non-Quoted Large Emissions source 2021 2022 Share (%) YoY Companies. This information was collected and reported in line with the methodology set out in the UK Government’s variance (%) Environmental Reporting Guidelines, 2019. Emissions have been calculated using the latest conversion factors provided by the UK Government. There are no material omissions from the mandatory reporting scope. The reporting period is January Scope 1 1,678 1,108 82% -34 2022 to December 2022, as per the financial accounts. Scope 2 0 0 0% Scope 3 127 244 18% 92% Total emissions (tC0 e) 1,805 1,352 100% -25% 2
O昀케ces Water 30 The o昀케ces we own give us the highest We continue to work on energy level of control to achieve our sustainability e昀케ciency initiatives. We switch to There was an increase in water goals. These are predominately in the UK. LED lights when existing 昀椀ttings consumption as more people returned For our other global o昀케ces, we work with no longer work, and heat and cool to our o昀케ces after two years of COVID landlords to promote our sustainability our Lakeside location during high restrictions. During the 2022 summer goals. occupancy periods. heatwave, the water levels of Lakeside’s lake dropped signi昀椀cantly. Energy Our electric vehicle salary sacri昀椀ce We were allowed to draw water to top We procured 100% renewable energy scheme allows senior employees in up the lake to keep aquatic species for electric energy across the whole the UK to lease fully electric cars and alive. We’re continuing to review our of our UK estate (Fitco, PDS, Endura, plug-in hybrid vehicles. In 2023 we sustainability initiatives to minimise UK o昀케ces). Endura’s head o昀케ce in will extend this scheme to all our UK our water footprint. Scotland runs on renewable energy employees. In 2022 we shifted our and it installed a solar panel system company car scheme to fully electric Water consumption of UK o昀케ce locations in 2022 on its roof to ful昀椀l half of its electricity or hybrid cars, and so, continue to requirements. see our 昀氀eet e昀케ciency improve. Our 昀氀eet is operating at a low rate of Year to date m3/Day m3/Year 28g/ km. 2022 36 13,304 Biodiversity We continue to promote and cultivate biodiversity. At our Lakeside o昀케ce in London we cultivate an environment for small mammals, birds and microorganisms to thrive.
Biodiversity and water Millions of mangroves Freshwater availability 31 Biodiversity is one of the strongest The fashion and textile industry puts natural defences against climate immense pressure on scarce water change.* Our brands have helped sources, and 771 million people plant mangroves across Africa worldwide lack basic access to clean through Eden Reforestation Projects, and safe drinking water.*** Our brands funding the planting of 7.8 million worked with organisations to provide trees with 7.4 million planted in 2022. clean and easily accessible water to Mangroves are unique ecosystems communities in water-stressed areas that serve marine life and purify the in our sourcing markets. In 2022 water. They are also important to rural ellesse funded a water project in communities by protecting them India through charity: water to build against storm surges. Although carbon piped water systems into homes for sequestration rates and stock values communities where people with vary signi昀椀cantly depending on the access to clean water can be as low planting conditions, as a relatively as 4%. Speedo funded a water project fast-growing group of species, they in Vietnam through Planet Water sequester carbon at a fast rate.** Foundation that supports 1,800 people annually. We also support three ongoing water projects through charity: water, supporting communities in Cambodia and India. *United Nations **Carbon sequestration in mangrove forests 7.8 million ***JMP
Supply chain impact conventional polyester|18,152,092 16% As a business guided by positive business social impact on our value chain. of apparel, footwear and textile Tier 1 carbon footprint 32 recycled polyester (mechanical) | 8,723,375 7% principles, we strive to improve the lives The scores are available to SAC factories by assessing categories by product type Polybutylene Terephthalate (PBT) | 2,732,660 1% of people working in our supply chain members. In 2022 we didn’t get such as emissions, chemical usage 2021 tier 1 CO2e (KG) conventional polyamide (Nylon) | 10,244,540 5% recycled polyamide (Nylon) | 3,492,587 3% and waste. This helps us better and reduce our environmental impact. veri昀椀ed. conventional elastane | 3,269,028 1% Our goal is to improve our supply chain understand their holistic footprint conventional cotton | 1,351,807 59% visibility and have 100% transparency To help us measure our supply chain and make improvements. organic cotton | 1,078,973 6% by 2032. footprint, we need our suppliers to conventional viscose | 16,631 conventional Lyocell | 13,629 track their impact. We use the Higg Tencel lyocell | 21,285 We use the Higg Brand & Retail Facility and Environmental Module conventional wool | 64,018 Module to help us better understand (FEM) as a tool for our suppliers to polyurethane (PU) coating | 65,456 thermoset polyurethane (TPU) membrane | 4,230 and measure our environmental and measure the environmental impact polyurethane (PU) membrane | 33,872 PTFE membrane | 194,004 2021 2022 conventional down | 18,137 Factories Annual business Factories Annual business accessories & equipment | 973,715 | 7% volume volume apparel | 6,867,583 | 50% footwear | 1,647,274 | 12% Tier 1 FEM self-assessment 45 80% 71 87% hardgoods | 4,332,664 | 31% FEM veri昀椀ed self-assessment 30 82% 42 57% This chart shows the assembly portion and not the total carbon footprint of the entire Tier 2 FEM self-assessment 38 45% 56 84% products. It represents 81% of the production volume for 2021 using the Higg FEM and Higg veri昀椀ed FEM data, excluding Speedo North FEM veri昀椀ed self-assessment 27 73% 48 81% America and licensee business.
conventional polyester|18,152,092 16% recycled polyester (mechanical) | 8,723,375 7% Polybutylene Terephthalate (PBT) | 2,732,660 1% Carbon footprint Water footprint Materials conventional polyamide (Nylon) | 10,244,540 5% 2021 carbon dioxide equivalent (CO2e) 2021 water (H2O) volume in cubic recycled polyamide (Nylon) | 3,492,587 3% volume in kilogrammes metres (m3) conventional elastane | 3,269,028 1% conventional cotton | 1,351,807 59% conventional polyester| 18,152,092 37% Top 3 Tonnes Lower organic cotton | 1,078,973 6% recycled polyester (mechanical) | 8,723,375 18% Our brands continue to work towards 33 Polybutylene Terephthalate (PBT) | 2,732,660 6% 昀椀bres -impact conventional polyamide (Nylon) | 10,244,540 21% conventional viscose | 16,631 recycled polyamide (Nylon) | 3,492,587 7% a vision of a more sustainable future. conventional elastane | 3,269,028 7% - 2022 raw conventional Lyocell | 13,629 conventional cotton | 1,351,807 3% organic cotton | 1,078,973 2% They do this by shifting towards more material Tencel lyocell | 21,285 conventional viscose | 16,631 conventional Lyocell | 13,629 share Tencel lyocell | 21,285 responsible materials, avoiding harmful conventional wool | 64,018 conventional wool | 64,018 polyurethane (PU) coating | 65,456 polyurethane (PU) coating | 65,456 thermoset polyurethane (TPU) membrane | 4,230 chemicals, and trialling innovative polyurethane (PU) membrane | 33,872 thermoset polyurethane (TPU) membrane | 4,230 PTFE membrane | 194,004 products that reduce some Polyester 2,708 38% conventional down | 18,137 polyurethane (PU) membrane | 33,872 environmental e昀昀ects. PTFE membrane | 194,004 Polyamide 764 39% conventional down | 18,137 We help our brand teams learn about / Nylon a product’s real impact through the conventional polyester | 18,152,092 conventional polyester | 4,980,084 Higg Product Module training. This Elastane 284 / recycled polyester (mechanical) | 8,723,375 recycled polyester (mechanical) | 2,232,387 polybutylene Terephthalate polybutylene Terephthalate progressive tool assesses a product’s (PBT) | 2,732,660 (PBT) | 319,300 environmental impacts during its Cotton 279 48% conventional polyamide conventional polyamide lifetime, looking at its impact from (Nylon) | 10,244,540 (Nylon) | 1,682,339 resource extraction, to manufacturing, *All data on this page includes apparel recycled polyamide (Nylon) | 3,492,587 recycled polyamide (Nylon) | 1,027,534 and swimwear fabrics for Berghaus, Speedo conventional elastane | 3,269,028 conventional elastane | 458,376 to what happens to it at the end of its International, Speedo North America, lifecycle. We continued to run training Canterbury (excluding Teamwear) and Endura. conventional cotton | 1,351,807 conventional cotton | 18,411,608 with our brand product teams during organic cotton | 1,078,973 organic cotton | 2,004,445 the year. conventional viscose | 16,631 conventional viscose | 11,531 conventional Lyocell | 13,629 conventional Lyocell | 7,563 We also use the Higg Material tencel lyocell | 21,285 tencel lyocell | 3,236 Sustainability Index to measure the conventional wool | 64,018 conventional wool | 4,769 polyurethane (PU) coating | 65,456 polyurethane (PU) coating | 2,768 environmental impact of di昀昀erent thermoset polyurethane thermoset polyurethane materials, including a material’s water (TPU) membrane | 4,230 (TPU) membrane | 462 and carbon footprint. polyurethane (PU) membrane | 33,872 polyurethane (PU) membrane | 2,266 PTFE membrane | 194,004 PTFE membrane | 1,706 conventional down | 18,137 conventional down | 6,608
Materials Our brands continue to progress in their journey of using materials that are lower Speedo increases recycled materials 34 impact, which means they have less impact on an area than conventional materials. In 2022, 61% of Speedo’s soft goods products used recycled materials as the main This could be materials made from recycled or organic content. More information material. Recycled materials were made from pre-consumer waste (waste from on the global organisations we work with to reduce a product’s impact can be found left-over textiles) and post-consumer waste (plastic commonly used for single use, on page 41. transparent plastic bottles). By the end of 2024, Speedo is aiming for every item to have recycled materials as the main material. More details on Speedo’s materials Chemical management can be found on the Textile Exchange Material Change Index. W e prioritise working with materials suppliers who have third-party accreditations in chemical management and manufacturing. Our Restricted Substances List Recycled materials provides guidance of restricted chemicals and we o昀昀er advice to our brands to expand into more responsible textiles. 2020 2021 5% 61% Fabrics Suppliers Volume *This data excludes Speedo North America and is related to soft goods. Recycled content for a main material varies between 50% and 100%. ® bluesign 43% 22% system In 2022 Speedo trialled and introduced new materials made from recycled materials partner into even more styles across its competitive, 昀椀tness and lifestyle collections. Oeko-tex® 71% 54% standard 100 Eco Endurance昀氀ex - Made from 100% pre-consumer waste, such as waste fabric one or more of 85% 63% from factories. the above * All brands excluding Endura, Kickers and ellesse. Eco Endurance+ - One of the two yarns are created from 100% post-consumer Nominated suppliers only. waste made from recycled bottles. Repreve Fabric - A new 100% recycled polyester base for training ranges. The yarn is made of 100% post-consumer waste made from recycled bottles.
Canterbury tackles sustainability cereals (grown for non-food purposes 35 Without compromising the strength and 100% GMO free) and FSC-certi昀椀ed and durability the rugby brand is known viscose. The remaining 25% is a synthetic for, Canterbury is working towards material to ensure durability. This is one increasing the use of recycled materials of their bestselling ranges, so it can in its products. It’s developed an internal make a signi昀椀cant impact. This material sustainability criterion for its products, is responsibly sourced and bio-based. outlining that a minimum of 75% of the product must use materials such as Energy: It reduces the energy needed organic cotton or recycled polyester with for production from non-renewable no harmful chemicals. Using recycled sources by 44% more than that of polyester reduces virgin plastics, and materials that aren’t plant-based*. using organic cotton is less harmful to the natural environment it’s grown Carbon emissions: This material in. It’s committed to 50% of its teamwear reduces emissions by 15% compared product range meeting these criteria to other synthetic materials.* in 2024 (EMEA total apparel production). CFC emissions: Producing this Kickers goes plant-based material reduces harmful Kickers launched a 100% vegan Chloro昀氀uorocarbon emissions collection o昀昀ering parents more choice by 32%*. for their ‘Back to School’ shop without trading quality, price, accessibility or *Based on material tests only. style. The PETA and Vegan approved plant-based material is made from 75% plant-based materials from corn and
Innovation Our brands continue to innovate in the 90,396 litres of clean water returned bio-waste and residues such as soybean 36 area of sustainability. to the environment / 93,717 M³ of air oil), using a mass-balance approach. cleaned capturing 68.3 kilograms of This means that fossil and bio-circular BLOOM training aids CO2 for the BLOOM kickboard raw materials are mixed in production, Speedo has developed a kickboard and and the total input of bio-circular pull buoy with BLOOM™. The products 259,464 litres of clean water returned material is tracked through the production are made from 10% algae bloom, with the to the environment / 268,997 M³ of air cycle, ensuring an appropriate allocation remainder made from ethylene-vinyl cleaned capturing 196.1 kilograms of is given to the material. acetate (a polymer material). This algae CO2 for the BLOOM pull buoy. is cleared from polluted freshwater The strap currently doesn’t use any ecosystems where it would be harmful Biofuse 2.0 goggles renewable sources, Speedo is looking to marine environments. This renewable To try to reduce the product’s impact at possible solutions to reduce or material also sequesters carbon. In 2022, on the planet, Speedo has constructed eliminate the use of non-renewable Speedo helped turn green water into these goggles from materials that use material sources. The manufacturing clean water, with the number of BLOOM less fossil-based carbons vs traditional partner has switched their factory to products sold equating to: plastics. The frame, gaskets and be partially powered by solar power, helping to reduce their reliance on adjustment mechanism are made using bio-based materials – meaning a portion fossil fuel. of the materials is derived from renewable raw materials such as sugar cane and *Data relates to products sold in the 2022 financial castor oil. year. Impact calculated by the Bloom Certification System. The lens, side clip cover and strap holder are made in part using bio-circular materials (originating partially from
Circularity It’s estimated that the fashion industry Repairs over replacement 37 generates 92 million tons of textile waste Berghaus has been working with a every year.* To tackle this, our brands are design principle of making long-lasting consciously looking at ways to extend and repairable gear since it started in the life of their products and responsibly the 60s because keeping a product in deal with a product once it comes to the use as long as possible reduces end of its life. We continue to explore its impact. When gear does get ways to reuse resources and close the weathered, it o昀昀ers its customers loop on waste. free repairs through Repairhaus, its in-house repairs service. In 2022 it repaired 6,000 items for free. Second-life solutions Kickers started working with the preloved platform Reskinned to o昀昀er its customers the option to trade used footwear for online credit. Reskinned resells, repurposes or recycles these products so that nothing goes to waste. The team has multiple textile recycling solutions and is exploring ways to turn old fabrics into new ones through tech investment. *Fashion Revolution
Packaging Across our brands, we’re working towards Recycled transit packaging Its Biofuse 2.0 goggles are packaged 38 integrating packaging solutions that use Canterbury undertook trials for all in 100% rPET cartons (Global Recycled more recycled materials and lessen the packaging and transit packaging to Standard certi昀椀ed) and use fully amount of virgin plastic. We also continue switch to recycled and/or recyclable recyclable 昀椀tments. Although some to look at our brand’s packaging journey materials in 2023. Endura started using of Speedo’s other goggles are already and shifting packaging solutions to recycled bags for transit packaging and packaged in 70% rPET material, it’s smarter options. Some progress from Speedo started packing products into starting to switch these into this same this past year include: its recycled bags at the end of 2022. pack as the Biofuse goggles. Speedo also changed its Biofuse goggle packs Swing tags to a rectangle shape to 昀椀t more goggles All swing tags used by Canterbury, into the outer box and switched the Berghaus and Speedo are in Forest 昀椀tments from white to dark grey to Stewardship Council (FSC) mixed improve the material quality for future packaging, which is a 100% recyclable. recycling. This means it’s made of a mixture of These changes to its Biofuse goggles materials from FSC-certi昀椀ed forests, recycled materials, and/or FSC- have reduced virgin plastic by controlled wood. 282 tonnes annually. By using fewer cardboard boxes during shipping, Speedo’s goggle packaging Speedo has also saved an equivalent Goggles are one of Speedo’s highest of 278 trees. Speedo aims to eliminate volume goods, meaning any reduction in all virgin plastic and for all plastic in its single-use packaging or shift to recycled goggle packs to be 100% recycled by or recyclable materials can make a the end of 2023. di昀昀erence. *rPET is recycled polyethene terephthalate made of recycled PET that can come from either post-consumer or post-industrial sources. **This excludes Speedo North America
Prosperity Employment wealth and generation prosperity We build brands and products Employment accounts and consolidated group 2022 resulted in supply chain delays 39 and the invasion of Ukraine by Russia with a social purpose. We work We seek to attract, retain, motivate 昀椀nancial statements. We also annually to create long-term value to and reward our people by establishing report our total corporate taxes paid resulted in us pausing our trading in society through employment, and maintaining a suitable, competitive and payable across the whole Pentland Russia. We worked to swiftly and 昀椀nancial investment, product salary and bene昀椀t programme, while Group on a country-by-country basis smoothly mitigate these risks. More innovation and taxes. This remaining mindful of our 昀椀nancial to relevant tax authorities. Our economic information on these risks can be section covers the Sustainable responsibility to our shareholders. contribution in respect of taxation seen on page 17. Development Goals 8, 9 and 10 covers business taxes, indirect taxes and the WEF Metric ‘Prosperity’. To help our people with the cost of living including VAT, goods and services taxes crisis, we applied an enhanced in-year and customs duties and employment salary increase for our lower earners taxes. Pentland Brands was cash (applied from July 2022) and a further generative in FY2022 for the year at annual salary increase for all employees £39.6 million year to date (excluding from 2023, bringing forward the Speedo North America). application from April 2023 to January 2023. Government economic contribution We received UK Government funding for In line with our positive business two new job placements via the Kickstart Scheme (as of April 2022), designed for principles, we have a salary sacri昀椀ce that allows senior employees in the UK to young people receiving Universal Credit. lease fully electric cars. More information can be found on page 30. Indirect economic impacts Supply chain delays, the Ukraine Economic contribution invasion and the cost of living crisis all We report corporation tax payable impacted our retail operations in 2022. in the UK and overseas in our entity Lockdowns in China in the 昀椀rst quarter of
Innovation of better products Community and social vitality All our brands have a social purpose. Our in-house innovation team works to Infrastructure investments Our budget for corporate responsibility 40 and services supported activities is approximately 1% of our create products that support health, wellbeing and con昀椀dence and solve current social and environmental challenges. We have dedicated product development As we expand our brand portfolio, we business’ overheads. This includes teams to bring these propositions to life. invest in new businesses, infrastructures industry membership costs that focus and services. We continued to invest in on social and environmental sustainability. our India Hub in 2022 with an increase It excludes individual corporate in team resource to increase services responsibility initiatives undertaken provided by the Hub. We also continued by our brands. transitioning Speedo North America into the business. The sourcing landscape and Pentland’s strategy are continuing to evolve. Our teams managing vendor relationships are now based closer to the territories where the vendors are located. Social investment Our positive business strategy puts people at the heart. We channel our support through funding, charity work and individual employee contributions. Pentland Brands gives at least 1% of net pro昀椀t after tax to charitable causes every year through a combination of 昀椀nancial contributions and product donations.
Positive collaborations 41 Collective e昀昀orts are far more e昀昀ective in bringing about positive change and we work together with global industry partners and companies to a昀昀ect greater impact. Memberships and organisations Charity partners ACT (Action, Collaboration, Our main charity partners for 2022: Transformation) charity: water AFIRM / AG In Kind Direct American Apparel & Footwear Association Lend with Care Ethical Trading Initiative Making the Leap FESI Oxfam Leather Working Group Panathlon Nirapon Room to Read Social & Labour Convergence Unitas Youth Zone Programme Our resources and policies are Sustainable Apparel Coalition available on our website. The Micro昀椀bre Consortium United Nations Global Compact World Federation of Sporting Goods Industry
Next steps We’re a constant work in progress. Supply chain mapping platform 42 In 2023, we’ll look to continue building To help us in our goal to gain 100% on our actions to take action for people supply chain transparency and and planet. increase our e昀케ciency, we’re investing in a new ethical supply chain and Positive business scorecards mapping software. In 2022 we went We’ve created positive business through a rigorous evaluation process scorecards for our vendors to track to select the platform, and we plan to their ethical and environmental migrate to it in 2023. performance. These will help us track progress and measure results more e昀케ciently, leading to a deeper SBTi veri昀椀cation understanding of our progress. We’ll continue our net zero journey We plan to roll this out in 2023. by working on verifying our emissions targets with the Science Based Targets initiative (SBTi). This will provide a clear roadmap to reduce our impact in line with the Paris Agreement goals.
P Pentland Brands ositiv Lakeside e Business r Squires Lane London N3 2QL eport 20 22 To 昀椀nd out more about corporate responsibility at Pentland Brands, please contact [email protected] or visit our website © Pentland Brands 2023. All rights reserved. Airborne Footwear Limited is the UK licensee for footwear under licence from Kickers International B.V. BERGHAUS and are registered trademarks of Berghaus Limited. CANTERBURY and are registered trademarks of Canterbury Limited. ELLESSE and are registered trademarks of Ellesse International S.p.A. ENDURA and are registered trademarks of Endura Limited. KANGAROOS and are registered trademarks of Asco Group Limited. KICKERS is a registered trademark of and used under licence from Kickers International. MITRE and are registered trademarks of Mitre Sports International Limited. RED OR DEAD is a registered trademark of Red or Dead Limited. SeaVees and is a registered trademark of SeaVees, Inc. SPEEDO and are registered trademarks of Speedo Holdings B.V. PENTLAND is a registered trademark of Pentland Industries Limited. B.V. 43