RAWRESPONSIBILITY
G-STAR RAW SUSTAINABILITY REPORT 2019

WELCOMETHIS SUSTAINABILITYREPORT DETAILSOUR PERFORMANCEAGAINST OUR
2020 STRATEGY,
WITH A FOCUS ON
2019. IT ALSO GIVESAN OVERVIEW OFOUR STRATEGYTO DATE.
Reflecting our strategic priority of fulltransparency, this disclosure seeks tomeet requirements of the Dutch
Agreement on a Sustainable Garments
and Textiles, and to follow Organisation
for Economic Co-operation andDevelopment (OECD), and the Global
Fashion Agenda’s CEO Agenda. It uses
the Sustainable Apparel Coalition’s Higg
Index as the main reporting framework.
Data disclosed in this report has notbeen externally verified, unless explicitly
stated.

G-Star RAW Sustainability Report 201902

For further information on RAW
Responsibility, please visit our website
or contact us:

WHAT’S INSIDE?
05

Transparency and Traceability

09

Value chain responsibility

16

Circularity

20

Empowering communities

23

OECD Risk Assessment

31

Partnerships

OVERVIEW –THE JOURNEY
SO FAR
Since launching our Supplier Code of Conduct
back in 2006, we have come a long way.
Measurable progress has been made acrossValue chain responsibility, Circularity, andTransparency/Traceability.

Sustainability milestones
2006
Corporate
Responsibility
department
established.

2007
GSRD Foundation
founded to support
communities in our
production countries.

2008
First denim styles
made of organic
cotton created.

2014
Manufacturing Map
published to show
the factories that
manufacture our
products.

2013
Commit toGreenpeace Detox
commitment to help
achieve ZDHC goals.

2009
Joined the
Textile Exchange
to develop moresustainable materials.

2010
Sandblastingprocesses banned in
our production.

2012
Joined the Zero
Discharge on
Hazardous Chemicals
initiative (ZDHC).

2011
Partnered withmulti-stakeholder
garment initiative,
MADE-BY.

Supplier Code of
Conduct created.

2015
Joined Canopy for
sector action toprotect ancient andendangered forests.
The first brand topilot the MODE
Tracker reporting toolwith MADE-BY.

Joined Fashion
Positive to further
apply Cradle toCradle principles.

G-Star RAW Sustainability Report 201903

Fair wage project
launched in the
supply chain.

RAW for the Oceanscollection is createdout of plastic
pollution.

Dyeing and finishingprocesses introduced
that save up to
95% water.

RAW Organic, RAW
Recycled and RAW
Nettle collections
launched.

Sustainable materials
and animal welfare
guidelines published.

Renewed Denim
created using 20%
post-consumer
denim waste.
Angora wool banned
from all collections.
First sustainability
scorecard publishedwith MADE-BY.

2016
Joined the Social &Labour Convergenceproject for anindustrywide
assessment
framework.

2017
Signed theTransparency Pledge
to help consumers
understand where
products are made.

Worked with the
Plastic Soup
Foundation toaddress microfiber
loss in laundry.

Joined theSustainable Apparel
Coalition; using its
Higg Index as asupply chain
monitoring tool.

Signed the Dutch
Agreement on a
Sustainable Garments
and Textiles

The world’s first
Cradle to Cradle Gold
Certified™ denim
fabric is created.

2018
Collaborated with
Jaden Smith tolaunch the Forces Of
Nature collection
Created the Our Most
Sustainable Jeans
Ever – the G-Star
Elwood RFTPi.

2019
Became Associate
Partner of the Global
Fashion Agenda.
Sustainability
Ambassadors groupformed of employees
across the business.
The first Dutch brandto join ACT totransform theindustry and ensureliving wages.
Signed the UN
Climate Charter,
committing to reduce
total emissions by30%.

See our full milestones online.

OVERVIEW –THE JOURNEY
SO FAR CONTINUED
Materiality

G-Star RAW Sustainability Report 201904

Going forward, we will look to integrate more
information about the impact assessment foreach issue to understand whether, based on risk
or potential benefits, we need to reallocate
resources.

CY AND TRAC
EA
BI
LI
TY
L
A
U
R
C
I
T
Y
C IR

RE N
PA

VA
LU

S
AN
TR

E

CH

E
AIN R SPON
SI
B
Y
IT
IL

Apparel supply chains are extensive, with complex
social and environmental issues from cotton field
to fashion house. For this reason, over the years
we have had to prioritise our efforts on where wecan make the greatest positive impact. Identifying
our most material issues in 2019 involved rigorous
consultation internally. Both in the materiality
process and the list of topics itself, we have gained
vital insight to assess our 2018-20 Sustainability
Strategy, and our new strategy to 2030, launchinglater this year. For example, we have learned that
we need to restructure our environmental
priorities, from a focus on pollution and hazardous
chemicals, to addressing climate change throughGHG emission reduction across the value chain.

IMPACT

OUR VISION
We design for the future. Both in styleand in the way we impact the planet andpeople around us.

OVERVIEW –TRANSPARENCYAND TRACEABILITY
To deliver on our strategy, we want to enable
stakeholders to hold us to account when it comesto comparable, trusted processes and databacked performance. This starts with reportingwith rigor and openness, and demonstrating fullproduct traceability.
From our first sustainability scorecard with
MADE-BY in 2013, to MODE tracker disclosurein 2015, since 2018 we have reported using the
Higg Index Brand and Retail ‘Beta’ Module1. Thisis the most commonly used tool in the apparelsector to measure the environmental and social
impacts, enabling meaningful improvements. It
also helps companies like us share sustainability
information with key stakeholders, including
supply chain partners.
Our reporting also follows industry guidelines set
by the Global Fashion Agenda, the Fashion

Transparency Index and other partners (see ourPartners).
As well as ensuring transparency in our own
reporting, we are working to support
transparency in the wider apparel sector. As amember of the Higg Transparency Steering Team,
we are co-developing tools to collectively realize
the SAC’s Roadmap to Transparency. In 2019,
alongside other fashion brands, we contributed to
SAC’s report “Empowering Consumers throughTransparency” to encourage the sector to more
readily and consistently share information aboutsocial and environmental sustainability efforts
and performance2.
1 Since Higg BRM was not operational in 2019, we were unable to reportusing this framework to date.
2 The report is available to download from SAC’s website.

Product traceability

05

Having oversight of the supply chain is part of our commitment to the apparel sector’s Transparency
Pledge. For five years, we have made our Manufacturing Map public – so anyone can trace the originof a G-Star RAW product (including, most recently footwear). Now covering approximately 95% of
our production volume (with slight variations by season), it shows what was made in 33 factories, by
27 direct suppliers across 12 countries. It can also show the number of workers at each site, the genderbalance and sustainability initiatives or certifications that are in place. All direct suppliers with morethan a two years’ relationship with us are included.
In addition to the map, we publish further detail on our direct suppliers, processing facilities andnominated fabric mills in our Manufacturing List, which is available on the Open Apparel Registry,an open source tool, which maps garment factories wordwide.

G-Star RAW Sustainability Report 2019

Our interactive Manufacturing Map

TRACKING SUPPLYCHAIN RISKSNavigating the vast and complex risks within the
textile value chain requires highly rigorous
systems of due diligence and monitoring,alongside strong partnerships with suppliers andexpert organizations.

G-Star RAW Sustainability Report 201906

We track and address these supply chain risks.
All due diligence processes are explained in detailin our Risk Assessment disclosure, and our
Sustainable Supply Chain Handbook. Further
detail is also given in the relevant sections of thisreport. The Risk Assessment explains the robust
methodology of assessing risks by sector, supply
chain phase and country.

EMBEDDINGSUSTAINABILITY
Internal engagement

For G-Star RAW, sustainability means taking
responsibility for people and planet throughcontinuously improving our impacts across ourvalue chain. Working with expert partnerorganizations, our dedicated Sustainability
Department implements its strategy within ouroperations, and across the value chain.
As shown in the diagram, the Sustainability
Department reports directly to the Chief
Executive. It has six full-time staff, with a presence
across the Netherlands, China and Bangladesh.
These employees have their own sustainability
specialisms, and they work closely with ProductDevelopment and other departments, as well as
the GSRD Foundation to deliver our strategy.

Sustainability priorities are cascaded to G-Star
RAW managers via sustainability-linked
objectives and key performance indicators - forexample, senior category managers havepersonal targets to contribute to 100%
sustainable cotton and 90% sustainable materials
by 2020. For new staff, the Sustainability
Department runs onboarding sessions to
introduce our sustainability goals and vision.
To further galvanize momentum internally, there
is also a Sustainability Ambassador Group madeup of enthusiastic expert employees. Theseambassadors engage colleagues to drive forward
our sustainability strategy – creative ideas in 2019
included “meatless Mondays”, ocean cleanups inSouth Africa, clothes swaps and Friday
sustainability talks.

Sustainability governance at G-Star RAW

CEO

G-Star RAW Sustainability Report 201907

Close collaboration

Poduct Development

Close collaboration
Sustainability
Department

GSRD
Foundation

Sustainability Director

Sustainability
Specialist(social)Sustainability
Specialist(environmental)

Sustainability
Project Manager(Transparency)

Sustainable
Supply Chain
Manager

Sustainable
Supply Chain
Manager

08

VALUE CHAINRESPONSIBILITY

G-Star RAW Sustainability Report 2019

VALUE CHAINRESPONSIBILITY

Whether it is in our factories or logistics, ouroffices or stores – our strategic priority is tooperate and produce responsibly. We do so bymeasuring and improving social andenvironmental performance impacts throughout
the value chain.

How we are doing
Material issue

2018-19 highlights

Workers’
rightsAlmost 70% of tier 13 cut-make-trim factories completed the Higg Facility
Social & Labor Module (Higg FSLM) self-assessment.

See page 10

18 direct suppliers were trained in social dialogue, grievances and worker
committees.
Continued our work as signatory of the Social and Labor Convergence Project(SLCP) to implement a common assessment framework.
Conducted country-level assessments to understand specific risk exposures.

Fair wages andEqual supplierpartnerships

Joined ACT (Action, Collaboration, Transformation) to support living wages
through collective bargaining.
Utilized Better Buying initiative research to improve our purchasing practices.

2018-20 goal

Ensurecontinuous
improvement of
the working
conditions in our
supply chain byfocusing on fairwages, social
dialogue andworkers’ rights.

See page 11

Pollution
See page 12

Climate change
See page 12-13

95% average supplier compliance to the G-Star RAW DETOX program.
Wet processing factories responsible for 85% of production volume includedin G-Star RAW DETOX Program.
Deployed the Higg Facility Environmental Module (Higg FEM) tool tounderstand our carbon impact in the supply chain.
Signed up to the UN Fashion Charter for Climate Action.

G-Star RAW Sustainability Report 201909

Built an inventory of scope 1 and 2 emissions.

Sustainable
materials

97% sustainable cotton, on track for 100% by end of 2020.

See page 14

Benchmarked materials for sustainability in our Fiber Map.

86% sustainable materials across all products, on track for 90% by end of2020.

Eliminate
harmfulenvironmental
practices in the
supply chain,
particularly
hazardous
chemicals, andcontinuously
improve ourfactories’
environmental
performance.
Being afrontrunner inusing moresustainable
materials in ourcollections.
Make and share
progress on our2020 sustainable
materials goals
and the Detox
Commitment.

AnimalwelfareContinued to implement our Animal Welfare policy in our supply chain.

See page 14

3 For definitions of supply chain tiers, please see ourSupply Chain Handbook

Zero harm toanimals, including
use of safe leather
alternatives,and zero use of
mohair, angora or
down. Responsible
Wool Standard or
recycled wool
only.

VALUE CHAINRESPONSIBILITYCONTINUED
Protecting worker rights
Whoever they are, and wherever they work,
anyone involved in creating G-Star RAW
garments has a right to decent work and to betreated with respect and dignity. We will always
aim to uphold the human rights and the right tospeak up – for all workers.
As outlined in our OECD Risk Assessment, humanrights and labor risks are diverse and complex.
We stringently apply guidance from the OECD,
Dutch Textile Agreement, International Labor
Organization (ILO), SLCP and Higg FSLM. This isreflected in our Supplier Code of Conduct,
Sustainable Supply Chain Handbook, Social andLabor Guidelines and our UK Modern Slavery Act
Statement (see downloads).
A social framework to support suppliers

G-Star RAW Sustainability Report 201910

Our Supplier Development Program includes asocial framework to help tier 1 cut-make-trim
suppliers consistently apply high labor standards,
based on best practice guidance above. In 2019,
we delivered training to 70% of these suppliers,
and we will continue to follow up on theirprogress in 2020. We are also developing an
external grievance system for key sourcing
countries, which we will report back on in thenext disclosure.
Given the scale and nuances around labor rights,
change can only be realized through concerted
action from the whole apparel sector. According
to SLCP, almost two thirds of social audits in theapparel sector are unnecessary duplications. By
working together and sharing data, we canaccelerate positive change in worker rights. It is
one of the reasons why we continue to support
the implementation of the SLCP common
assessment framework as brand signatory.
Almost70%

of tier 1 cut-make-trim
factories completed theHigg FSLM self-assessment4

4 Our Sustainable Supply Chain Handbook explains how this information
was used and incorporated in our supplier monitoring system.

Upholding human rights
Our Supplier Code of Conduct and Socialand Labor Guidelines incorporate theUniversal Declaration of Human Rights,
the ILO Conventions, and the OECD Due
Diligence Guidance for Responsible Supply
Chains in the Garment and Footwear
Sector. They include zero tolerances tochild or forced labor, and to any form of
discrimination or gender-based violence.
They also make clear provisions for fairworking hours, collective bargaining andtrade union rights. As mentioned in the risk
assessment chapter, human rights due
diligence covers our production andmanufacturing, and is based on countrylevel assessments.
Country-based approaches
We engage with national and local government
to uphold safe and fair working conditions for
those working in our supply chain. In Bangladesh
for example, having been an advocate for the
Accord on Fire and Building Safety as a signatory
brand, we continue to support its evolution in theformation of the Ready-Made Garments
Sustainability Council.
In Myanmar, where the garment sector is rapidly
growing, we partner with the SMART Textile &Garments project, one of the first initiatives toprotect textile workers in this young sector.

VALUE CHAINRESPONSIBILITYCONTINUED
Fair wages

Equal supplier partnerships

We believe that people should be paid fairly andtransparently for the job they do. They should
also be free to speak up if they feel they are
discriminated against through their pay. Bydeveloping a fair wage methodology and moving
towards a living wage, we are taking action.

Mutually-beneficial supplier relationships dependon two-way dialogue, the right to speak freely
without retribution, and regular partnershipappraisal between supplier and customer.

So far, we have completed a Fair Wage pilot
initiative with the support of Solidaridad and the
Fair Wage Network. From this, we discoveredthat the main way to scale up our impact was
through a collective approach that includes social
dialogue – involving workers in wage negotations.
Our new membership of ACT will be a key step increating a fair wage roadmap that delivers on this(see below).
CASE STUDYPARTNERING WITH ACT FOR THE LIVING WAGE
In 2019, we joined ACT, a ground-breaking
agreement between global apparel brands, retailers
and the IndustriALL Global Union. Its aim is toachieve a living wage for all textile workers throughcollective bargaining at an industry level.

G-Star RAW Sustainability Report 201911

In joining, we have committed to purchasing
practices with our suppliers that will ensure fairterms of payment, full coverage of wage increases,
better forecasting and planning, training andresponsible exit strategies.
With sector-common indicators, the ACT
accountability and monitoring framework will help
us measure progress towards more equal supplierpartnerships.

We have been progressing from auditing
suppliers for compliance, to offering selfassessments and supporting supplier partners to
improve their practices, while also committing to
improving our own buying regimes. Each year,
our Sustainability Department experts deliverin-country training on our Supplier Code of
Conduct and Higg FSLM and FEM expectations.
They also assess factory-level risk exposure and,
where non-compliances are identified, they findways to reduce risks. Higg self-assessments canbe verified by an SAC-approved third-party.

First

Higg verified FSLM self
assessments at our
strategic factories in
China and India

For two years, we have been part of the Better
Buying initiative, a system for suppliers toanonymously share their experiences of theirbuyers’ purchasing practices. In line with ourphilosophy of partnership, we fully encourage
suppliers to participate. Their feedback is highly
valuable in providing a transparent picture of how
our buying practices impact at factory-level, andwhat we can do to improve, particularly regarding
the practices that most deeply impact working
conditions.

VALUE CHAINRESPONSIBILITYCONTINUED
We use the Better Buying scorecard and reportto analyze our current performance, and set
priorities for improvements from relevant G-Star
RAW departments. These span purchasing,product development, design, finance, corporate
strategy, sourcing and supply chain management.
One priority identified through the Better Buying
results was planning and forecasting. We are now
working to share our forecasts with suppliers
further in advance, with more regular updates
and better data accuracy. This means factories
can plan and manage the pipeline of work more
effectively, thus reducing unexpected pressure
points that can impact working conditions.

Detoxing the supply chain

G-Star RAW Sustainability Report 201912

Pollution and the environmental impacts ofhazardous chemicals have been front and centerof our work on environmental sustainability sincesigning the DETOX Commitment with
Greenpeace in 2013.
We continue to work with the Zero Discharge ofHazardous Chemicals initiative (ZDHC) and to
apply Higg FEM standards and tools to monitor
the performance in the production andmanufacturing of our garments. All G-Star RAW
supply chain partners are required to follow
ZDHC’s Manufacturing Restricted Substances
List, and we encourage them to make use of the
ZDHC Gateway to identify safer and moresustainable alternatives, and to test wastewater
to ZDHC Wastewater Guidelines. Our DETOX
program now covers 85% of our annual
production volume (including tier 1 and 2 wetprocessing facilities), and we have seen 95%
compliance in the last year.

95%
average suppliercompliance to our
DETOX program>90%

of in-scope manufacturers
submitted InCheck andClearStream wastewater
reports

We disclose all data in our annual DETOX Report.

It includes Higg-verified disclosures from 97% of
manufacturers in the program, as well as ZDHCInCheck and ClearStream wastewater reports
from more than 90%. While we have madeexcellent progress in eliminating chemical use
and pollution of waterways, until we achieve
zero toxics everywhere in the supply chain,
there is always work to do. In 2020, we willcontinue to engage suppliers to further
strengthen sustainable chemical management
practices, for example by requesting suppliers
to purchase safer and more sustainable (ZDHCMRSL conformant) chemical products.

A smaller fashion footprint
In the fashion value chain, the majority ofgreenhouse gas (GHG) emissions are created in
manufacturing and consumer use. We therefore
focus our climate impact work on our supply
chain and customer engagement, while also
taking steps in our own offices and stores.
As disclosed in our OECD Risk Assessment, we
use the Higg FEM tool to understand the climate
impact of our factories through their energy use
and emissions. The graph on the following pageshows that since 2017, we have seen a five-foldincrease in FEM self assessments among our wet
processing partners (from 9 factories in 2017 to
48 in 2018). Across all environmental impacts,
you can also see improvements, especially energy
and chemicals scores.

In 2019, we signed up to the UN Fashion
Charter for Climate Action. We will deliver
climate action through our supplierpartnerships, and through our Circularity
agenda.

VALUE CHAINRESPONSIBILITYCONTINUED
Verified FEM assessments of G-Star RAW tier 1 and tier 2 factories
52.60
44.67

Average score total verified
Average energy score verified
Average Environmental Management
System score verified

63.54
67.90

Average chemicals score verified

16.88

35.79

Average wastewater score verified

46.40

Average water score verified

36.30
35.39
0

20

13

40

60

80

For definitions of supply chain tiers, please see our Supply Chain Handbook.

Climate impact and our own operations

G-Star RAW Sustainability Report 2019

68.75

22.89
30.00

Average waste score verified

2017

60.74

58.41

Average air score verified

2018

80.19

57.73

Although the majority of our GHG footprint lies in
production and consumer use, we continue to takesteps to drive down carbon and energy use in ourstores, fashion houses and distribution centers.
Designing our distribution centers and warehouses
to be flexible, scalable and automated requires
high levels of optimization, and in turn energy
efficiency is just one area in which we are making
a difference.
Recognizing that we need to go beyond resource
efficiencies, we are working with outboundlogistics partners in our E-Commerce function to
support carbon offsetting. We are also partneringwith an external consultant to set a strategy tomore robustly understand our GHG footprint, andto systematically implement energy efficiency
programs. Towards the end of 2019, we beganbuilding an inventory of our scope 1 and 2
emissions, with a view to assessing Scope 3
emissions in 2020. We have not yet been able toconsistently measure our progress towards ourtarget of 20% carbon reduction by 2020 in ourown operations. However, with signing the UN
Fashion Charter, we have made a newcommitment and going forward, we are fully
dedicated to succeed.

IMPROVEMENTS
in Higg verified FEM scores fortier 1 and 2 factories (2017-18)

100

VALUE CHAINRESPONSIBILITYCONTINUED
Sustainable RAW materials
Denim is made of cotton, a crop that hashistorically been associated with high water andpesticide use. Today, 97% of the cotton we use issustainably sourced, and we are on track for
100% by the end of 2020.
Our sustainably sourced cotton is organic,
recycled or Better Cotton Initiative (BCI) sourced.
As a partner of the BCI, our aim is to increase theuptake of Better Cotton throughout our supply
chain. BCI promotes good farming practices andhelps farmers to make global cotton production
better for the welfare of farming communities, forthe environment, and for the sector’s future. Once
we have reached our 2020 goal, we will apply
further standards by adding more recycled andorganic cotton to our collections.

14

Beyond cotton, the remaining 20% of our RAW
materials include 10% polyester and 10% othermaterials. Our goal is to use 90% sustainable
materials by 2020; so far we are at 86%, having
consistently improved since 2017, as shown in thegraph below. Other sustainable materials we use
include Lycra®T400® EcoMade, Roica(TM) V550,
Lenzing® EcoVero Viscose, Lycra® 166L, hemp,
linen, reycled elastane, recycled polyester and
TENCEL™ branded Lyocell fibers.

G-Star RAW Sustainable Materials andSustainable Cotton
97.0%

100

G-Star RAW Sustainability Report 2019

80
60

89.0%
70.0%

86.0%

100.0%
90.0%

74.0%

57.3%

40
20
0

2017

2018

Sustainable materials

2019

2020
(goal)

Sustainable cotton

For definitions of supply chain tiers, please see our Supply Chain
Handbook.

CASE STUDYPROTECTING FLORA AND FAUNA IN THE
SUPPLY CHAIN
We are committed to ensuring that all raw materials
used in our products are grown and manufactured
in a responsible way that preserves resources andrespects human and animal rights.
Our Animal Welfare Policy explains our zerotolerance approach to any kind of ill treatment ofanimals associated with the manufacturing of our
products. Therefore, suppliers should implement
international industry best practices for animal
welfare on the farm, in transit, at the market or at aplace of slaughter, based on “The Five Freedoms
For Animal Welfare”, as defined by the Farm Animal
Welfare Council in 2006.
Acknowledging that many materials we use may beconnected with forests, as well as prioritizing
recycled and Forestry Stewardship Council (FSC)
certified pulp products, we have joined forces with
Canopy and the wider fashion industry, to avoid
sourcing from ancient and endangered forests.
This includes avoiding man-made cellulosic fabrics
made from dissolving pulp (rayon, viscose, lyocell
and modal).

15

CIRCULARITY

G-Star RAW Sustainability Report 2019

CIRCULARITY

If we want to be here as a denim brand in 20, 50
or even 100 years from now, we need to be
designing in “closed loops” today. By this wemean using only sustainable materials, clean
chemistry, turning waste back into resource, andensuring garments are designed for reuse.
How we are doing
Material issue

2019 progress

2018-20 goal

Circular design& products, andwaste as aresource

Sustainable fibers: e.g. organic cotton, recycled cotton,
recycled polyester, TENCEL™ branded Lyocell fibers,
Lycra®T400® EcoMade, Roica(TM) V550, Lenzing®
EcoVero Viscose, Lycra® 166L, hemp, linen and reycled
elastane.

Identify circularity opportunities at
product, process, use and end-of-lifelevel.

See page 17-18

Clean chemistry: circular dyes e.g. EarthColors® andRecycrom™, pre-reduced and Hydrosulphite free indigo
technology, Aniline Free indigo and other ZDHC/
bluesign®/Cradle to Cradle Gold Material Healthchemistries.
Responsible manufacturing: ozone and laser technologies,
wash techniques that waste zero water, partial air drying
of garments to save up to 85% energy.
Launched 4th generations of Cradle to Cradle Certified™
Gold denim Fabric, with the Word’s 1st stretch.
Worked with Fashion Positive to define and promote safe
and circular materials.
Set a new circular roadmap for packaging, with goals
to 2023.
Became the first clothing brand to support PlanetCare
to remove micro-fibers from laundry wastewater.

G-Star RAW Sustainability Report 201916

Created a 2020-30 Circularity Roadmap, with goals tobe published late 2020.

CIRCULARITYCONTINUED
Fashion innovation17

We have an ambitious program of sustainable
innovation in design, manufacturing andcustomer use. Ultimately, we want to see apparelreflecting a wider circular economy where waste
becomes a resource and where materials andproducts are designed for continuous reuse.

CASE STUDY

G-Star RAW Sustainability Report 2019

CRADLE TO CRADLE CERTIFIED™
GOLD DENIM STRETCH FABRIC
The Cradle to Cradle philosophy is inspired by nature.
In nature, there is no concept of waste; everything
effectively becomes food for another organism or asystem, and all materials are reutilized in safe cycles. In
our designs, we strive to mimic these natural principles
because wasteful “cradle to grave” design methods
inherited from the last industrial revolution are nolonger working, as evident in the current problems
facing the planet.
Cradle to Cradle™ Certification is the only certificationin the world designed for a circular product economy.
It is the most rigorous because it requires unparalleledlevels of transparency across the supply chain andbecause it looks at design from five perspectives:material health, water stewardship, social fairness,material reutilization and renewable energy.

It is very important to ensure that the RAW
materials in our products are grown andprocessed responsibly to preserve resources, andrespect people and planet. This sections shows
just a few of our 2018-2019 circular productinnovations.

Having created the world’s first Cradle to Cradle
Certified™ Gold Denim Fabric in 2018, we have beenbuilding on this innovation. In 2019, we introduced thelow dip version of the same design for spring/summer
styling with additional 75% water savings in both fabricmake and garment wash processes.
To meet market demand for comfort, in the fall of 2019
we introduced the world’s first Cradle to Cradle
Certified™ Gold Stretch Denim Fabric. In terms of fiber,
this fabric merges organic cotton with two percent
degradable stretch fiber, Roica™ V550, which holds a
Gold Material Health Certificate from the Cradle toCradle Products Innovation Institute.
Like its three other predecessors, this fabric features
the world’s first hydrosulphite indigo technology, which
we formulated with our partners. This dyeing processuses 15% less indigo, 70% less chemicals, no salts, andproduces no salt by-product during reduction anddyeing, consequently saving water and leaving clean
and recyclable water effluent. Finally, all Cradle toCradle Certified™ Gold Denim Fabrics featurechemistry that presents zero risk for people and planet.

CIRCULARITYCONTINUED

One of our biggest challenges is how to scale andaccelerate innovation. As a single brand, we can’tchange the entire industry. This is why we madeour Cradle to Cradle™ denim fabric and thehydrosulphite free indigo technology openly
accessible within the Cradle to Cradle™ library,so others can improve their design, manufacturing
practices and further build on this work. We also
work. Finally, we work together with other brands
through Fashion Positive, an organization that
leads a vision and definition for the use of safe andcircular materials in the fashion industry.

CASE STUDYCIRCULAR DYES IN OUR DYED BY NATURE
COLLECTION
EarthColors® by Archroma (dyes derived fromupcycled plant waste)

G-Star RAW Sustainability Report 201918

In 2017, we became the world’s first denim brand toincorporate EarthColors® by Archroma in a capsuleof colored jeans. These jeans were colored using
upcycled plant waste, which is traceable from earth
to product. In 2019 we expanded this range tomore jeans, as well as jackets, shirts, t-shirts andsweatshirts for both men and women, under theumbrella Dyed by Nature.
In creating these styles, we took on a holistic design
approach where we merged sustainable fibers (e.g.
organic cotton, recycled cotton and Lycra 166L®,
which holds a gold material health certificate fromthe Cradle to Cradle Products Innovation Institute)with circular EarthColors® dyes, eco finish metal
buttons (made without electroplating) and washingtechniques that waste zero water. Furthermore,denim styles were partially air dried to save 80%
energy.
“The beauty of this project is the big potential toreuse waste from other industries to help create acircular economy.”
Nuria Estape,
Head of Marketing and Promotion at Archroma’s
brand and performance textile specialties business

19

PHILANTHROPY

G-Star RAW Sustainability Report 2019EMPOWERINGCOMMUNITIESThe GSRD Foundation’s mission is to create apositive impact on the lives of the people andcommunities in the countries where G-Star RAW
products are made. It does so by supporting
young people, together with its 22 partners,
through education, training and coaching.
The GSRD Foundation works very closely with
G-Star RAW. Its ethos is that knowledge, anentrepreneurial mindset and self-empowerment
are key to economic independence and social
development. To facilitate this, the Foundation
supports projects that focus on education andentrepreneurship.

Material issue

2019 progress

Community empowerment
and engagement

10 new commitments
25 projects
7 long-term partners

G-Star RAW Sustainability Report 201920

2 strategic partners• Education: Vocational training and education
for young people, focusing on knowledge andskills that will help them improve theirprospects of learning a trade or a profession
and thus of having a better future.
• Entrepreneurship: Life-skills training andcoaching for young people, to help them tobecome independent, seize the initiative where
they can, and leverage opportunities to become
more self-sufficient, either as proactive
employees or through self-employment.

PROJECT
INSIGHTS

G-Star RAW Sustainability Report 201921

In 2019 GSRD operated 25 projects across China,
India, Bangladesh and Vietnam. All projects seek
to help people leverage opportunities to become
more self-sufficient, either as proactive employeesor through self-employment. Below is a brief
insight into recent work.

CASE STUDYCASE STUDYVIETNAM: SKILLS AND EMPLOYMENT FOR
DISADVANTAGED YOUTH

INDIA: SUPPORT FOR THE RAINBOW HOMESPROGRAMThe GSRD Foundation has been supporting the
Skills Development and Employment for
Disadvantaged Youth project in Vietnam since 2014.
It provides life skills, formal education, work
readiness training, individual counselling andmentoring to disadvantaged young people in Hanoi
and Hue.

Since 2009, the GSRD Foundation has been
supporting Rainbow Homes, a program that helps
improve the living conditions of Indian street girls
and to secure a brighter future for them. By the endof 2018, the project accommodated 2,902 girls in 32
Rainbow Homes in nine cities. The total number ofchildren reached since the start is 12,237 children.

The objective is to enable disadvantaged youth,
especially adolescent girls and young women in
Vietnam, to transform their lives by offering them
employable (soft) skills development training andemployment programs. The project also focuses on
the provision of work skills and helps disadvantaged
young people to find jobs by providing vocational
training in a range of sectors. All the students follow
an English language course and undergo life skills
training to build their confidence, self-esteem andmanage their day-to-day activities, with the goal of
becoming self-sufficient, confident and valuable
members of the wider community.

In 2016, the GSRD Foundation and the PartnershipFoundation strengthened the structural partnershipsupporting the Rainbow Homes project byintroducing rolling-commitment funding, whereby
the GSRD Foundation decides each year how to
support the organization over the coming three
years. The goal is to scale up the Rainbow Home
model in a sustainable way, and to maximize its
social impact, in part through the efforts of the
project’s local partner, the Rainbow Foundation
India, but also through the adoption of the Rainbow
Homes model by other organisations.

22

RISK
DISCLOSURE

G-Star RAW Sustainability Report 2019

OECD RISKASSESSMENT

In order to identify the most significant risk
factors in our supply chain, we conduct due
diligence checks based on the OECD Due
diligence guidance for Responsible Supply Chainsin the Garment and Footwear Sector. This
guidance defines due diligence as “the process
through which enterprises can identify, prevent,mitigate and account for how they address theiractual and potential adverse impacts”. Adverse
impacts can also be referred to as “harm”.
In addition, we take into account the eight coresustainability priorities identified by the Global
Fashion Agenda’s CEO Agenda. These priorities
are set by fashion industry leaders and experts
and include a holistic assessment of social andenvironmental impacts along the value chain. The
identified significant risks, as well as the priorities
as identified by the CEO agenda, form the basisof our sustainability strategy.

Although we have a due diligence process
in place for managing supply chain risk, as
described in our Sustainable Supply Handbook,we welcome OECD guidance as we develop our
approach. In this assessment, we have identified
the most significant risks based on sector,
product and country. For each, we explain thescope of risks and our assessments based on
their severity and likelihood in a matrix. For allassessments included in this report we
recognized that the severity of harm of theidentified risks are all high. The main shifting
factor is the likelihood that the harm can occur
in our garment and footwear value chain.
Since this is our first OECD risk assessment, we
continue to investigate the most accurate andefficient methodologies. We will review andupdate our approach alongside our stakeholders
on an ongoing basis.

Sector risks
Sector risks as defined by OECD Guidance and focus on human rights, labor, environment andintegrity.

G-Star RAW Sustainability Report 201923

Table 1. OECD sector risks for garment and footwear
Human rights & Labor risks

Environmental risks

Integrity risksChild labour

Hazardous chemicals

Bribery and corruption

Discrimination & gender-based violence

Water consumption

Forced labour

Water pollution

Working time (excessive working hours)

Greenhouse gas emissions

Occupational health and safety (e.g.
worker related injury and ill health)Violations of the right of workers toestablish or join a trade union and to
bargain collectively
Non-compliance with minimum wage
laws
Wages do not meet basic needs ofworkers and their families

OECD RISKASSESSMENT
CONTINUED
All risks above are addressed in the G-Star RAW
Supplier Code of Conduct, and RAW Ethics (seeopposite). We have applied OECD guidance toconduct a more in-depth sector assessment since
we recognize that the potential severity of harmis high in the garment and footwear sector. Figure
1 below compares this severity with the likelihoodof harm in our own garment and footwear value
chain. Our assessment is based on:• historical data from our sustainability
assessments of manufacturing partners acrossour supply chain, and experiences of colleagues
in quality control and sourcing departments;• partnerships with organizations such as theSustainable Apparel Coalition (SAC), ACT(Action, Collaboration, Transformation), theBangladesh Accord, the Social and Labor
Convergence Project, and the Zero Dischargeof Hazardous Chemicals initiative (ZDHC); and• strategic industry guidance, such as the CEO
agenda.

Figure 1 – Sector risk matrix

RAW Ethics explained
Whilst focusing on supply chain risks it
is relevant to include reference to own
ethical conduct within our organisation.
We require all employees and temporary
colleagues to respect our RAW Ethics
and act in the best interests of G-Star RAW
at any time. The guidelines set out ourrequirements around legal compliance,
gifts and entertainment, bribery andimproper payments, conflicts of interests,social media, discrimination, health andsafety, alcohol and drugs, company andintellectual property, confidentiality, trade,
competition and antitrust laws andancillary activities.

Product risks along the value chain
To better understand the impact of sector risks,
we assess them across the lifecycle stages of ourgarments: design, make, move, wear/care andreuse, as shown in the diagram below.

Severity of harm

G-Star RAW Sustainability Report 201924

Sector risks (identified by OECD, assessed by G-StarRAW)

Design and material use

Likelihood of harmChild labour

Forced labour

Freedom of Association
Working time

Health & Safety

Discrimination / (sexual) harassment

Living wage

Water consumption

Minimum wage

Bribery / corruption

Water pollution

Chemicals

Greenhouse gases

Our materials consist of 80% cotton, 10%polyester and 10% other materials. By the end of2020 our goal is to use 100% sustainable cotton
and 90% sustainable materials.

OECD RISKASSESSMENT
CONTINUED
Figure 2 below shows that raw material risks
are high and likely when it comes to water
consumption and pollution. Since the majority of
the raw materials we use is cotton, the use ofchemicals is high. Cotton needs to be grown andrequires vast amounts of water and pesticides
and insecticides for production. Man-madematerials, such as polyester, require less water,
but do hold higher risks of contributing togreenhouse gas emissions.
Through this process, we identified certain
sources of information were missing, hence they
are not included in this assessment. The exercise
will therefore be repeated once more information
is available. Overall, assessing risks through thedesign and material use phase was valuable as it
revealed that we needed to do more research tounderstand issues deeper within the supply chain.

Severity of harm

During the material manufacturing phase, rawmaterial is woven or knitted into a cloth and thendyed. These tier 2 suppliers produce fabrics andtrims that our tier 1 suppliers use to produce ourgarments. Nominated fabrics and trims suppliers
are reviewed and assessed on their sustainability
performance.
Fabric manufacturing is resource-intensive andwater pollution is an ongoing risk. These risks areless pronounced in the garment manufacturingphase. We use data and information from tier 2
supplier environmental assessments to complete
this part of the risk assessment.
With regard to social and labor risk, the skill level
required is higher due to the technical andmechanical nature of the production processes.
However, this does not exclude social risks,
especially when the processes of material
manufacturing are more fragmented and therefore
less visible.

Figure 3 – Product risks – Material
manufacturing matrix

Severity of harm

G-Star RAW Sustainability Report 201925

Figure 2 – Product risks – Raw material matrix

Make: Material manufacturing

Likelihood of harm
Likelihood of harmChild labor

Forced labor

Freedom of Association
Working time

Minimum wage

Discrimination/(sexual) harassment

Living wage

Water consumption

Health & Safety

Bribery/corruption

Water pollution

Chemicals

Greenhouse gases

OECD RISKASSESSMENT
CONTINUED
Make: Garment manufacturingMove, wear and reuseOnce a product has been designed and thematerials have been chosen, we enter the cutmake-trim stage where garments are made andassembled. Since this stage is manual laborintensive, the way we work with our suppliers
can have a direct impact on factory working
conditions. Compared with the materials phase,environmental risks are lower. However,environmental issues are evident during thefinishing phase, where the product is washed,laundered or printed.

Our packaging and transportation creates
impacts in terms of GHG emissions, chemicals
and water. We currently do not have enough datato assess the social impacts of the move phase.

Figure 4 – Product risks – Garment
manufacturing matrix

Figure 5 – Product risks – Packing
and Logistics matrix

Severity of harm

Severity of harm

26

As explained in our Sustainable Supply Chain
handbook, we monitor tier 1 suppliers closely and
we use this information to understand the future
likelihood of harm.

Likelihood of harm

Likelihood of harm
G-Star RAW Sustainability Report 2019The OECD is currently looking to include theafterlife cycle into the due diligence guidance.
The CEO Agenda and the Transparency Index
also mark this as an important priority. Therefore,
we consider how circular solutions can help us
mitigate risks of resource depletion. We will aim
to add this to our risk assessments when we canfurther understand the methodology to accessthe afterlife cyle.

Child labor

Forced labor

Freedom of Association
Working time

Minimum wage

Living wage

Water consumption

Health & Safety

Discrimination/(sexual) harassment
Bribery/corruption

Water pollution

Chemicals

Greenhouse gases

OECD RISKASSESSMENT
CONTINUED
Every country we source from has its own
governance, socio-economic and industry
challenges. This is why we make assessments
based on country-based reports from the Fair
Wear Foundation and GoBlu, as well as the latest
advice from the International Labor Organization
and Dutch Government. Furthermore, theSustainability Department stays up to datewith local legislation through close contact withcountry-level sustainability, quality, productdevelopment and sourcing teams. The latest
status on sourcing countries is available in our
public Manufacturing Map.
We focused our risk assessments on the four
countries that produce over 90% of of ourgarments5: China, Bangladesh, India and Vietnam.
Risk assessments in our top four production
countries by volume

G-Star RAW Sustainability Report 2019

27

China
In December 2019 around 35% of the total
production volume of our garments andfootwear was handled in Chinese facilities.
Recent country studies show that China isimproving its health and safety standards, and thatit has comprehensive labor laws and takes
governmental action regarding environmental
issues. However, there are still many risks that
require attention. Notably, the lack of freedom of
association, excessive overtime and insufficient
overtime premium. There are also concerns
around the “re-education” of Uyghurs and recent
media publications have revealed garment
factories exhibiting “conditions that strongly
suggest forced labor”.

5 As at Dec 2019

In recent years, the Chinese government has
introduced more stringent laws on environmental
protection, particularly with regard to waterpollution where textile factories are monitored
very closely. The Chinese government has
introduced real time monitoring of discharged
wastewater and we use this information from theIPE platform to keep up todate on acute risks.
Figure 6 – China matrix

Severity of harm

Country risks

Likelihood of harmChild labor

Forced labor

Freedom of Association
Working time

Minimum wage

Living wage

Water consumption

Health & Safety

Discrimination/(sexual) harassment
Bribery/corruption

Water pollution

Chemicals

Greenhouse gases

OECD RISKASSESSMENT
CONTINUED
Bangladesh

India

Around 27% of our production volume was
manufactured in Bangladesh in December 2019.
Since the Rana Plaza disaster in 2013,
Bangladesh’s garment industry has shown
improvements but there are still key risks.
Notably, the position of women and the
exploitation of child labor in the informal sector.
Also, low minimum wages, cause worker unrest,
while high production demands lead to excessive
and non-voluntarily working hours.

Production facilities in India produced 14% of our
production volume in December 2019. The mostsignificant risks in India relate to workplace
practices. Gender-based violence against women,
sexual harassment and workplace abuse remainrisks. Reports of child labor indicate that there is
still a very high risk of children under the age of
14 working in cotton fields, ginning and spinning
production.

G-Star RAW Sustainability Report 2019

Excessive overtime is also very common.
Minimum wages, although not sufficient to makean adequate living, are usually met. However,illegitimate deductions can be a problem.

Figure 7 – Bangladesh matrix

Figure 8 – India matrix

Severity of harm

Environmental risks differ across the country.
The use and pollution of water is high, but the
government is stepping in to address the issues.
Chemical management in factories still requires
a lot of attention

Severity of harm28

One of Bangladesh’s most pressing issues is thepressure on water resources with minimal
legislation in place, water consumpton will be a
growing risk unless conservation technologies are
implemented.

Likelihood of harmChild labour

Forced labour

Freedom of Association
Working time

Health & Safety

Discrimination / (sexual) harassment

Living wage

Water consumption

Minimum wage

Likelihood of harm

Bribery / corruption

Water pollution

Chemicals

Greenhouse gases

4 As at Dec 2019

OECD RISKASSESSMENT
CONTINUEDIn December 2019 around 14% of the total
production volume was produced in Vietnamese
facilities. Recently, the government has started to
improve legislation around freedom of association
and raised minimum wage levels. Still concerns
remain on the actual implementation of the CBA
and if real negation is actual taking place. The
current minimum wage level does not matchthe standard for a living wage yet, but there is
improvement. Major risks that still remain include
excessive overtime, and discrimination andharassment against women, and internal migrants.
These risks are also a concern for the EU as it
considers a Free-Trade Agreement with Vietnam.
The discharge of chemicals is high on thegovernment’s agenda. Water consumption andpollution are also attracting awareness but
require more attention.

G-Star RAW Sustainability Report 201929

The remaining countries5 where our garments
and footwear are manufactured have not beenassessed yet, as per OECD guidance. They will
be included in the in the next G-Star RAW
Sustainability report. Moreover, as a next step wewill further link these country risks’ to the scopeand scale of our supply chain efforts.

5 Remaining production countries: Indonesia, Myanmar, Tunisia, Turkey,
Italy, Morocco, UAE, Mauritius

Figure 9 – Vietnam matrix

Severity of harm

VietnamLikelihood of harmChild labour

Forced labour

Freedom of Association
Working time

Living wage

Water consumption

Minimum wage

Health & Safety

Discrimination / (sexual) harassment
Bribery / corruption

Water pollution

Chemicals

Greenhouse gases

30

PARTNERSHIPS

G-Star RAW Sustainability Report 2019

2019 PARTNERSHIPSACT (Action, Collaboration, Transformation)

Bangladesh Fire and Building Safety Accord

Plastic Soup Foundation

Social & Labor Convergence Project

Better Buying
Sustainable Apparel Coalition (SAC)

Better Cotton Initiative (BCI)

Textile Exchange

31

Dutch Agreement on Sustainable Garments
and Textiles (AGT)UN Fashion Charter

G-Star RAW Sustainability Report 2019

Fashion +Zero Discharge of Hazardous Chemicals
initiative (ZDHC)G LO B A L

FA S H I O N

AG E N DA

Global Fashion Agenda

FIND OUT
MORE

Further information on our approach, policies and commitments can be found on our website.
You can also download the following documents.
Better Buying Benchmark Report
DETOX Commitment
DETOX report 2019
Environmental Guidelines
Manufacturing List
Modern Slavery Act Statement
Raw Materials and Animal Welfare Policy
Social and Labor Guidelines
Supplier Code of Conduct
Sustainable Supply Chain Handbook

G-Star RAW Sustainability Report 201932

Transparency Pledge