RAWRESPONSIBILITY

G-Star RAW Sustainability Report 2022

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G-STAR RAW SUSTAINABILITY REPORT 2022

WHAT'S INSIDE?
RAW RESPONSIBILITY
07 Sustainable Development Goals
08 Transparency
10 2022 Highlights

SUSTAINABILITYSTRATEGY
12 Goals & Ambitions
13 Policies
13 Governance
14 Partnerships

PEOPLE
16 Safeguarding Workers’ Rights
18 Working towards Fair Wages
20 Reflections on 2022

PLANET
22 Responsible Materials
27 Packaging
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28 Closing the Loop
29 Eliminating Pollution
33 Reducing Our Impact on Climate Change

PHILANTHROPY

42 Reflections on 2022

45 Education

G-Star RAW Sustainability Report 2022

45 Entrepreneurship
47 Reflections on 2022

APPENDICES
50 Appendix A – Risk Assessment
56 Appendix B - Fashion Industry Charter for
Climate Impact – Carbon Footprint Calculations

HOW TO USE THIS REPORTThis report reflects G-Star RAW’s performanceon key sustainability priorities and our
implementation of due diligence within ourvalue chain. Due diligence, as defined by theOrganization for Economic Cooperation andDevelopment (OECD), is the process enterprises
should carry out to identify, prevent, mitigate,
and take accountability for actual and potential
adverse impacts in their value chain.
G-Star’s sustainability priorities are linked to key
impact areas that were determined through a risk
assessment that is based on the methodology of
the OECD. The risk assessment is a key part of ourdue diligence process and guides us in forming
and strengthening our Sustainability Strategy andpriorities.
This report focuses on the sustainability progress
made in 2022, the planned actions for 2023, andour long-term goals and ambitions for 2025 and2030. In addition to this report, the following
documents, which outline G-Star’s policies,
guidelines, and actions, are also part of our(reporting on) due diligence.
Sustainable Supply Chain Handbook
This Handbook explains our due diligence processthat identifies (potential) risks and includes G-Star
RAW’s Compliance Policy, a detailed supply chain
explanation, our sustainability monitoring tools andprocess, our supplier onboarding process, and ourSupplier Development Program.

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Explore our RAW Responsibility webpage to findout more about up-to-date actions regarding our
Sustainability Strategy.
If any comments or questions arise after reading
this report or related G-Star documents, pleasecontact us at cr@g-star.com or at:
G-Star RAW C.V.
Attn.: Sustainability (CR) Department
Joan Muyskenweg 39, 1114 AN Amsterdam
The Netherlands

Acronyms
ACT

Action, Collaboration, 		Transformation

FWF

Fair Wear Foundation

Higg BRM

Higg Brand & Retail Module

Higg FEM

Higg Facility Environmental
ModuleHigg FSLM Higg Facility Social & Labor
Module
LWI

Living Wage Indicator

MRSL

Manufacturing Restricted 		
Substances List

This document shows our sustainability journeysince 2006.

OCA

Organic Cotton Accelerator

Transparency Tools:

OECD

Organisation for Economic 		
Cooperation and Development

SAC

Sustainable Apparel Coalition

SDGs

Sustainable Development Goals

SLCP

Social & Labor Convergence
Program

ZDHCZero Discharge of Hazardous
Chemicals

Sustainability Milestones Overview:••
G-Star RAW Sustainability Report 2022

All downloads can be found here.

Manufacturing Map – This tool shows all
direct suppliers with whom G-Star has had abusiness relationship for over 2 years.
Responsible Materials Ranking – This toolscales our fibers from sustainable to notsustainable.

G-Star RAW’s Policies:•••

G-Star Supplier Code of Conduct- Social & Labour Guidelines- Environmental Guidelines
G-Star RAW Materials Policy & Animal
Welfare Policy
Modern Slavery Act

LETTER FROMTHE CEO
Reflecting on 2022, it has been a turbulent year marked by another seriesof COVID lockdowns in the first few months, and even more so by the war
in Ukraine. Our thoughts have been and still are with all individuals affectedby this ongoing violent tragedy. Nonetheless our responsibilities remain andare even emphasized by such events, so despite the context we were able toprioritize and further build on improving our impact, both on people and planet.
Our starting point for progress is always in close collaboration with ourpartners in the supply chain, to innovate and improve together, both in working
conditions and actual garment-making.
Circularity is one of the ongoing big themes that we continuously aim to
implement deeper within our entire value chain. To ensure that circularity is
fully embedded in our design processes, we invited Circular Economy to hosta 2 day workshop for our Product and Sustainability teams, supporting theteams in defining the G-Star circularity roadmap for the years to come, further
growing our share of responsible materials, and our share of Cradle to Cradle
certified® fabrics and styles year on year. We were able to scale and accelerate
our Certified Tailors program to 3 additional countries and our Return Your
Denim initiative to 7 additional countries. Simultaneously, we continued to
improve the quality and durability of our products, resulting in a collection
with a lifetime Warrantee. We also started investigating options to launch asecond-hand platform within G-Star.com and are excited to share that we will
be launching this in the Summer of 2023.

G-Star RAW Sustainability Report 2022

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On the topic of climate, we are happy to share we were able to significantly
reduce our GHG emissions in 2022 with 15% in Scope 1 and 2 location-based
and 10% in Scope 3 from a 2021 baseline (verified by Carbon Footprint Ltd.’s).
We have also submitted official Science Based Targets, committing ourselves toan ambitious reduction plan for which we have prepared several scenario’s.
To establish ongoing progress on both social and environmental topics, we
continue to deeply embed sustainability into our overall strategic businesspriorities for the years to come. There is still so much work to be done and weare looking forward to taking the next steps, together with our partners in the
supply chain, our industry peers, and of course our loyal G-Star customer base.

Rob Schilder

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RAW
RESPONSIBILITY

G-Star RAW Sustainability Report 2022

RAW
RESPONSIBILITY
About G-Star RAW

About RAW Responsibility

Since 1989, G-Star RAW has pushed theboundaries of denim design, manifesting its
vision of the future by introducing “luxury
denim” for the streets through pioneering
styles. Hardcore Denim is the philosophy
that expresses the brand’s obsession withdenim; the cloth, the craft and, the history.
It pushes G-Star to invent, explore and takecraftsmanship to another level. Down to thesmallest detail and with a strong belief that
there is no limit to what denim can do. With
innovation, sustainability and creativity at its
core, the brand pursues to define the next
generation of denim with respect for people
and the planet.

Sustainability is key to how we operate at G-Star
RAW. It is a process of continuous improvement
in both the social and environmental impactof our products and operations. We havebeen embedding sustainability in the core ofour business since 2006. Take a look at our
Sustainability Milestones Overview to see someof the highlights throughout that ongoing
journey.

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PEOPLE

WORKERS’
RIGHTSFAIR WAGES

We find it important to take responsibility by
constantly improving the impact we have on
PEOPLE and PLANET, as well as give back to
the communities in the countries where we
produce. That is why we divide our efforts
into three pillars: PEOPLE, PLANET and
PHILANTHROPY. These three pillars represent
the core of our Sustainability Strategy.

PLANET

CIRCULARITYSUSTAINABLE
MATERIALS

PHILANTHROPY

CLIMATECHANGEPOLLUTIONPOSITIVE IMPACT

G-Star RAW Sustainability Report 2022

TRANSPARENCYPEOPLE

PLANET

PHILANTHROPY

It is our priority to safeguard

We produce and operate

We want to make a positive

fair, safe and healthy working

responsibly by selecting theand lasting impact on the lives

conditions, as well as protect

most sustainable materials andof people in countries where

the human rights of the people

production processes, work

G-Star RAW produce. Throughworking for G-Star and involved

towards circular solutions andthe GSRD Foundation wein our supply chain.

drive superior performance inprovide education and stimulate

climate adaptation.

entrepreneurship through
PHILANTHROPIC efforts,
including training and coaching.

SUSTAINABLE
DEVELOPMENT GOALSThe Sustainable Development Goals (SDGs) are aaligned its strategy with the 17 SDGs and defined
unified set of goals to address sustainability issues 4 high impact goals that are most closely linked to
PEOPLE
PLANET
simultaneously,
through a global and inclusive
our core operations and value chain.PHILANTHROPY
Next to that,approach. G-Star recognizes that businesses,
7 high impact SDGs are identified that relate toalong with governments and civil society, play a
the 4 main high impact SDGs. Our operations are
crucial role in reaching the SDGs. G-Star therefore
indirectly linked to the final 6 SDGs.

PEOPLE

WORKERS’
RIGHTSFAIR WAGESPLANET

CIRCULARITYSUSTAINABLE
MATERIALS

PHILANTHROPY

CLIMATECHANGEPOLLUTIONPOSITIVE IMPACTPOLLUTIONPOSITIVE IMPACT

TRANSPARENCYWORKERS’
MAIN
HIGH IMPACT RIGHTS
SDGs

FAIR WAGESCIRCULARITYSUSTAINABLE
MATERIALS

CLIMATECHANGE

TRANSPARENCY

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UNDERLYINGHIGH IMPACT
SDGs

G-Star RAW Sustainability Report 2022

OTHER
IMPACTSDGs

TRANSPARENCY

To deliver on our strategy, we enable external stakeholders to hold us accountable
when it comes to assessing our data-backed sustainability performance.
This includes transparent reporting.
We started reporting on sustainability in 2013 and since 2018 we have reported
using the Higg Brand and Retail Module (BRM) from the Sustainable Apparel
Coalition (SAC). This is a global sustainability measurement performance tool in
the apparel and footwear sector.
Besides reporting through the Higg BRM, we also publish an annual Sustainability
Report. G-Star’s 2019 Sustainability Report was our first report that integrated
the OECD Due Diligence Guidance for Responsible Supply Chains in theGarment and Footwear Sector and its risk assessment methodology. Our 2021
Sustainability Report presented our updated Sustainability Strategy including
our long-term goals and ambitions based on our extended risk assessment. Our
2022 Sustainability Report reflects on our achievements in 2022 and projects ouractions for 2023.
Higg Brand & Retail Module (Higg BRM)
G-Star completes the Higg Brand & Retail Module (BRM) on an annual basis.
Our Sustainability Strategy translates the key Higg BRM topics into actions andgoals to improve our sustainability performance over time.

G-Star RAW Sustainability Report 2022

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2022 is the third consecutive year we have completed the Higg BRM. It is a selfassessment questionnaire made up of 530 questions to evaluate environmental,social and labor performance across G-Star’s management systems, stores,
brands, operations and logistics. The assessment is also verified by an external
3rd party (TUV Rheinland), where documental evidence is analyzed and G-Star
employees from different departments are personally interviewed.
Our total score consists of 2 separate scores that represent the overall points
achieved across the entire questionnaire for all environmental and social
questions. In 2022, G-Star significantly improved its score compared to theprevious year.

Overall Environmental
score:

70.1%

Overall Socialscore:

88.1%

TRANSPARENCYCONTINUED
The Section Scores show the total points that we
received per section of the questionnaire based on
the combination of our environmental and social
performance. The sections consider the following:
Management systems, Brand, Stores,
and Operations & Logistics.

our value chain. Based on all the information
we collected through different resources, we
determined which risks are most salient in our
supply chain. The outcome forms the base of oursustainability strategy moving forward. Our risk
assessment can be found in Appendix A.

Management system
Environmental
100%

Social100%

Brand
Environmental
75.5%

Social88.6%

StoresEnvironmental
50%

Social
84.6%

Operations & logistics

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Environmental
54.8%

Social79.2%

The Higg BRM verification process granted us aneven better understanding of the efforts we needto take to improve our Higg BRM sustainability
performance. We have engaged with all
relevant departments about the 2022 Higg BRM
performance and determined which topics toprioritize for improvement. In 2023 the Higg BRM
question set will be entirely new with a bigger focus
on business’s due diligence of practices, programs,
and policies.

G-Star RAW Sustainability Report 2022

Risk Assessment
Over the past year, we have implemented andstrengthened our updated Sustainability Strategy
and further built upon the OECD risk assessmentthat was first included in the Sustainability Reportof 2021. We did this with the help of industry
partners, stakeholders and external resources.
We performed our social and environmental risk
assessment based on the risk categories identified
by the OECD.
Our risk assessment identifies both the likelihood
and the severity of potential or actual risks within

Manufacturing Map
Providing oversight of the supply
chain is part of our commitment to theapparel sector. 7 years ago, we made our
Manufacturing Map public – so anyone cantrace the origin of a G-Star RAW product,
now covering approximately 95% of our
production volume (this differs per season)and showing all Tier 1 suppliers that wehave been working with for over 2 years.
In addition to the map, we publish further
details on our direct suppliers, their subfactories, processing facilities and nominatedfabric mills in our Manufacturing List. Thisis also available on the Open Supply Hub,an open source tool that maps garment
factories worldwide.
Responsible Materials Ranking
The G-Star RAW Responsible Materials
Ranking gives consumers full insight into
each fiber used in the main fabric of a G-Star
garment. It indicates the environmental
impact of the fibers, according to existing
industry standards. By doing so, we allow
consumers to decide for themselves whether
a specific garment matches their individualsustainability standards. More information
regarding the Responsible Materials Ranking
can be found in the chapter PLANET.
RAW Responsibility webpage
Our RAW Responsibility webpage is areflection of our commitment to PEOPLE,
PLANET and PHILANTHROPY. It is
updated regularly and provides consumers
with information on all our sustainability
initiatives that are part of our ongoing RAW
Responsibility journey.

IN 2022...

...about95%

of the materials we used wereorganic, recycled, biobased, compostable,or sourced through the Better Cotton Initiative(mass balance principle)…we added an independent
complaint system to anotherTier 1 factory in India in collaboration
with the Fair Wear Foundation.
This has enhanced…we submitted our climate targets toScience Based Targets Initiative for official
validation and reduced our emissions
compared to our 2021 baseline.

…we offered lifetime warranty, expanded the…our Higg BRM has been third-party
verified and we scored an average ofaccess to remedy for
4,294 garment workers
Certified Tailors
repair program
across 4 countries and launched our

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Return Your Old Denim
initiative in 75 European stores

Scope 1 and 2 reducedby 15%; Scope 3
reduced by 10%

88.1%

for our overall Social Score and70.1%

for our Environmental Score

G-Star RAW Sustainability Report 2022

…our DETOX program included 107 factories under the
ZDHC scope, with an average

conformance of 77% against the ZDHC
Wastewater Guideline parameters…we introduced…we carried out a

73 Cradle to Cradle
certified® products,

Living Wage
Gap Analysis

as well as 89 products with
Cradle to Cradle certified® fabric.

for the second year running and extended
this beyond Tier 1 Suppliers. This has helped
us to monitor wage gap data.

011

SUSTAINABILITYSTRATEGY

G-Star RAW Sustainability Report 2022

SUSTAINABILITYSTRATEGY
Our long-term focus within our RAW
Responsibility strategy includes key sustainability
priorities specified in goals for 2025 and2030. These are commitments built on manyfoundations, such as our risk assessment covering
the different phases of our value chain as wellas the data we collected working with different

industry partners and tools. For example, the Higg
Index tools of the SAC and the programs of Zero
Discharge of Hazardous Chemicals (ZDHC), haveensured that we can measure and track impact,
and scale our strategy across our value chain.
This Sustainability Report reflects our annual
progress and achievements.

Goals & Ambitions
PeopleWorkers’ Rights
Fair Wages

Priority

Goal 2025 / 2030

Elevate and improve fair, safe and healthy
working conditions in G-Star’s supply chain.

Strengthen workers voice by offering acomplaints system including fair terms,
anonymous accessibility, process for complaints
handling and capacity building to workers in atleast 30% of production countries.

Collaborate industry wide through ‘ACT on
Living Wages’ to improve wages at bothindustry and country level.
Ensure that G-Star’s purchasing practices
enable the payment of fair wages.
Support suppliers to implement effective
wage management systems that classify
jobs according to skill level and pay workers
according to their competence.

PlanetCircularity

Realize healthy, safe and fair working conditions
for all workers in G-Stars supply chain.
Realize effective wage management systems
that classify jobs according to skill level andpay workers according to their competence instrategic factories in Bangladesh.
Actively support ACT to realize 2 country and/or industry wide wage improvements with theend goal to decrease the wage gap between
paid wage and living wage.

Priority

Goal 2025 / 2030

Design for durability and recycling to extend
the life of G-Star’s products and offer solutions
for re-use, remake or recycling.

Ensure 20% of G-Star’s collection is made with
Cradle to Cradle Certified® fabrics.

G-Star RAW Sustainability Report 2022

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Ensure 1.000.000 jeans repaired,reused or recycled.

Sustainable
Materials

Increase the use of sustainable materials
by partnering with innovative suppliers andinitiatives that transform and/or innovate
conventional and virgin materials.

Climate Change

Reduce GHG emission by switching to
renewable energy, using more sustainable
materials and increasing the use of low
energy-intense production methods.

Pollution

Transparency

Ensure 75% of the materials in our collections
are regenerative, recycled, organic, bio-based
and/or compostable.
Ensure 100% of the materials in our collections
are regenerative, recycled, organic, bio-based
and/or compostable.
Reduce 15% of GHG emissions (base year 2021).
Reduce 42% of GHG emissions (base year 2021).

Ensure the continuous ban of hazardous
chemicals in G-Star’s supply chain.

Achieve 100% low impact chemical applications(Cradle-to-Cradle approved chemicals and/or ZDHC level 2 & 3 chemicals) in G-Star’s
products.

Priority

Goal 2025 / 2030

Report on G-Star’s sustainability performancethrough a verified industry benchmark (Higg
Brand & Retail Module).

Achieve full product transparency onfibers, lower impact production processes,
certifications, recyclability and manufacturing
unit on all G-Star RAW products.

Offer full product transparency on lower impact
fibers and production processes, certifications,
recyclability and manufacturing units through adeveloped claims framework.

Achieve 100% traceability, up to the raw
materials that were used.

SUSTAINABILITYSTRATEGYCONTINUED
Policies
At the base of our Sustainability Strategy we have multiple policy documents to uphold our
RAW Responsibility. We developed the G-Star RAW Supplier Code of Conduct representing all
standards on Social and Environmental, Safety and Health (S&ESH) regulations, to ensure that
G-Star products are made under fair and safe circumstances. Additional to our Code of Conduct,
we also have Social & Labour Guidelines and Environmental Guidelines. An overview of all policy
document can be found here.
We continuously monitor and collaborate with our suppliers and external industry experts,
to uphold these standards and improve where needed. How we do that is explained in our
Sustainable Supply Chain Handbook.
Governance
Our Sustainability Department implements
G-Star’s Sustainability Strategy within and beyond
our own operations. The team specializes insocial and environmental sustainability acrossthe supply chain and has a presence in the
Netherlands and Asia. It is their responsibility todefine and implement the Sustainability Strategy
by integrating the sustainability work throughout
our own organization. The departments that

help manifest our Sustainability Strategy include
Design, Product Development, Merchandise,
Purchasing & Pricing, Quality Assurance, Sourcing,
Logistics, Marketing, and Communications.
Sustainability is an integral part of our overallbusiness strategy. Our Sustainability Strategy istranslated into team and individual goals acrossthe abovementioned departments; the figure
below shows how we work collaboratively to bringour Sustainability Strategy together.

Sustainability Department

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defines and implements our
Sustainability Strategy
Transparency

G-Star RAW Sustainability Report 2022

DesignPoduct Development

are committed
to goals
related toMarketingCommunication

Sustainable Materials

Circularity

Merchandise

Climate Change

Sourcing

supportuses the Higg
Index tools
to analyse
supplier
performance on

contribute toachievinggoals related to

Logistics

RetailPollution

Workers’ Rights

Fair Wages
are contributing tocollaborateclosely on

Purchasing & Pricing

Quality Assurance

PARTNERSHIPS

G-Star collaborates with a number ofstakeholders to help define and develop
our sustainability strategy. The overview

below demonstrates how these partners andstakeholders are involved at a strategic level.

Partnerships overview
Policy Hub

works on advocacy with
Organic Cotton Accelerator

Open Supply Hub

ACTSocial & Labor
Convergence Program

works ontransparency
withworks onFair Wages withworks onWorkers’ Rights
with

G-Star RAW

ACCORD

Fair Wear Foundation

Better Cotton Initiative

works onCircularity
withCradle to Cradle
Products innovation Instituteworks onClimateChangewithworks onPollution with

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monitors and reports with the help of

Sustainable Apparel Coalition

Higg Index Tools

G-Star RAW Sustainability Report 2022

works onSustainable
Materials
with

Textile Exchange

UN Fashion Charter

Zero Discharge ofHazardous Chemicals

15

PEOPLE

G-Star RAW Sustainability Report 2022

PEOPLEWhen it comes to the PEOPLE in our supply
chain, our key focus is on safeguarding fair,safe and healthy working conditions, as wellas protecting human rights. We engage in key
industry partnerships and make use of tools suchas the Higg Index Facility Social & Labor Module(Higg FSLM) to monitor working conditions. We
have a clear understanding of the social risks inour supply chain and assess the risks following
the guidance of OECD. Within our supply chain
we focus on our Workers’ Rights and Fair Wages
programs.

Safeguarding Workers’ Rights
To improve fair, safe and healthy working
conditions in our supply chain, we work closelywith our suppliers and have built trustworthy andlong-term relationships with them. We deliberately
work with a small and durable supply chain toensure continuity in our sustainability initiatives.
Our Manufacturing Map details the Tier 1 suppliers
have been working with for 2 years or more, andoffers background information such as the typeof product produced and number of male andfemale workers.
Supplier Relationship Length (Tier 1)
17%

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20%

G-Star RAW Sustainability Report 2022

40%

23%

0-2 years

2-5 years

5-10 years

10> years

Although human rights are protected by various
national and international laws, they can be
restricted in certain situations. We strive for all
workers across our supply chain to have theserights respected. The United Nations Universal

Declaration of Human Rights sets out these rights
as a common standard of achievements for all
people and all nations. We used these and otherrelated resources as the basis for our Supplier
Code of Conduct and our practices.
Our social framework includes supplierdevelopment tools to support direct suppliersconsistently in applying high labor standards
based on our Supplier Code of Conduct.
This framework consists of:•
Use of the Social and Labor Convergence 		Program (SLCP)•
Higg FSLM•
Development and implementation of a 		complaint system•
Supplier trainings
Social and Labor Convergence Program (SLCP)
G-Star RAW has been a signatory of the
SLCP since 2016. The mission of this projectis to eliminate audit fatigue and enable datacomparison. Their Converged Assessment
Framework (CAF) is a tool to capture accurate
data regarding working conditions in facilities.
The CAF has been implemented in our supply
chain since 2019 as a supplier data collection tooland it has replaced our own internal assessment
as well as our request for other third-party audit
standards.
To use the CAF suppliers need to register theirfacilities in the SLCP Gateway and perform a selfassessment. This self-assessment is verified withthe help of the SLCP verification methodology.
Once the facility has checked and approved theverification outcomes, they can upload theirassessment to the SLCP Gateway. G-Star as wellas other brands can then access the data throughthe SLCP Gateway, which makes it easy andefficient for suppliers to share facility data. Thisdata directly informs our Higg Facility Social &Labor Module (FSLM), which we use to monitor
our supplier’s performance.

PEOPLECONTINUED
Higg Facility Social & Labor Module (FSLM)
We apply the Higg FSLM as a measuring andperformance improvement tool for our supply
chain partners. Supplier data is collected throughthe SLCP Gateway as can be seen below. In our
Sustainable Supply Chain Handbook we explain
how the information from the Higg FSLM isanalyzed and used to monitor our suppliers.

G-Star began using Higg FSLM in our supply chain
in 2019. As a first step, we focused on encouraging
tier 1 suppliers to complete a self-assessment. Now,
we expect Tier 1 and Tier 2 factories to complete
both the self-assessment and a verified FSLM.
••
In the Higg FSLM the following topics areassessed:
•
•
•
•
•
•
•
•
•

Recruitment and Hiring
Working Hours
Wages and Benefits
Employee Treatment
Employee Involvement
Health & Safety
Termination
Managements Systems
Empowering People and Communities

SLCP Gateway

17

collects supplierdata through theConverged
Assessment
Framework

G-Star RAW Sustainability Report 2022

which directly informs
the content of the
Higg FSLM
that we use to monitor
our suppliers andis benchmarked in
G-Star's Vendor Scorecard
that is used to monitor,
evaluate and select existingand new suppliers•

74% of Tier 1 production volume came from 		factories that have completed a verified FSLM
assessment in 2022.
64% of Tier 2 production volume came from 		factories that have completed a verified FSLM
assessment in 2022.
The average verified FSLM score across bothtiers was 77.8%, 3.4% higher versus the 		
previous year’s 74.4%.

Our goal in 2023 will be to ensure the verified
FSLM is completed by Tier 1 factories making up
at least 82% of production volume, and Tier 2
factories representing 72% of business volume.
This is also in line with the SAC’s membership
requirements on business volume.

PEOPLECONTINUED
Fair Wear’s Complaints Mechanism

ACT on Living Wages

In 2021 we carried out a risk assessment that
identified the need for a proper grievancemechanism to remediate worker issues. As
a result, we made a public commitment toimprove our complaint systems towards global
independency and confidentiality by 2025 tostrengthen worker voices in our supply chain.
To support this, we joined an industry level
cooperation program developed by the Fair
Wear Foundation (FWF) to increase grievancemechanisms in our supply chain.

ACT is an agreement between 22 global brands
and retailers and the IndustriALL Global Union,a global trade union fighting for better working
conditions and trade union rights around theworld. It aims to achieve a living wage for all
textile workers through collective bargaining at
an industry level. By joining, we have committed
to purchasing practices with our suppliers thatwill ensure fair terms of payment, full coverageof wage increases, better forecasting andplanning, training and responsible exit strategies.
With sector common indicators, the ACT
accountability and monitoring framework helps
us measure progress towards more equal supplierpartnerships.

The goal of this program is to enhance access toremedy for garment workers and learn about theremediation processes. The project was initiallylaunched in collaboration with 3 G-Star suppliersin India and positively, the factories linked to these
suppliers now have the Fair Wear Complaints
Mechanism implemented or, are in the processof embedding it. Read more about that program
here. As a result, they will all have access to Fair
Wear helplines to address labor rights violations if
required.

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In 2022, G-Star began discussing the Fair Wear
Complaints Mechanism with suppliers in Vietnam
and Turkey. This is in support of our ambition to
expand the project to at least 1 additional sourcing
country in 2023.

G-Star RAW Sustainability Report 2022

Working towards Fair Wages
Based on our risk assessment, one of themost important steps to improve fair working
conditions is through fair wages. Although aminimum wage is the lowest wage permitted bylaw in any given country, this does not always
suffice for a basic standard of living. To improve
this within our supply chain we joined ACT
on Living Wages in 2019, performed our own
Wage Gap Analysis in 2021 and made a public
commitment towards an industry wide agreement
on regional living wages and to support
implementation in our production countries. In
2022, we continued this analysis to help monitor
wage gap data.

Purchasing practices
Purchasing practices are an important part ofinteraction between brands and their suppliers.
The way that we buy from and work with our
suppliers can have an impact on the working
conditions at their factories. Therefore, we workon improving our purchasing practices throughimproving our planning and forecasting as muchas possible with the help of ACT.
In 2021 we rolled out the ACT Purchasing
Practices Self-Assessment (PPSA) Survey withinternal team members, as well as the Purchasing
Practices Assessment (PPA) Survey suppliers.
The purpose of these surveys is to analyze ourpurchasing practices from our own perspective as
well as from our suppliers’ perspectives. Questionsin this survey are related to key topics such assourcing practices, forecasting and capacity
planning, price negotiation, changes to order, reorders and sampling. Priority topics that require
improvement were selected if (1) they received
a low score from both our suppliers and G-Star
employees, (2) our suppliers ranked G-Star’s
performance lower than the industry average, or(3) the topic received a high percentage of “Don’tknow” as an answer from either our suppliers or
own employees. According to ACT a low scoreand a high number of “Don’t know” indicate that
action is required in the form of training andPEOPLECONTINUED
implementation of process improvements.

Living Wage Gap Analysis

The results of both surveys were used to identify
the key purchasing practices topics that shouldbe improved. In 2023 the PPSA and PPA will berenewed. Due to the outcome of the 2021 survey
we developed a Vendor Scorecard.

In 2022, we performed our second Living Wage
Gap Analysis for Tier 1 CMT and processing
suppliers. This helped us to understand the gap
between set living wage per production country
or region, and the average wage our suppliers pay
to workers.

Read more about the content and methodologyof the PPA and PPSA surveys and their global
results here.
Vendor Scorecard
In collaboration with Product Development,
Purchasing, Sourcing, Sustainability andQuality the vendor scorecard was developed.
This objective of our scorecard is to monitor,
evaluate and incentivize suppliers to improve theirpractices. It also acts as a tool to support ourteams in selecting existing and new suppliers.

19

The vendors are scored based on indicators suchas research & development, cost effectiveness,
speed, quality, delivery time and social andenvironmental benchmarks. These benchmarks
are based on the programs and tools explained in
the PEOPLE and PLANET chapters.

Social Benchmark•

G-Star RAW Sustainability Report 2022••

Higg verified FSLM data and/or
third-party audit score
HR management system
Active independent union

Environmental Benchmark
•
•
•
•
•
•
•
•

DETOX Input report
DETOX Process report
DETOX Output report
Higg verified FEM data
Science Based Targets
Zero direct coal used
Uses renewable energy sources
Uses recycled water in processes

To understand the living wage we used the Living
Wage Indicator (LWI) and for applicable countries,
the Global Living Wage Coalition Benchmark(GLWCB). For the average wage per supplier, weanalyzed salaries across 43 factories representing
95.6% of our production volume from December
2021 to November 2022. Management salaries
and overtime hours was excluded from the data,
whereas worker benefits were included. Alongside
this, we compared the minimum wage percountry.
Based on our 2022 analysis, we can conclude
that all G-Star’s suppliers are paying above
the minimum wage however, there is still a
gap between the average and estimated living
wage. We strive to close this gap via advocacy,
freezing of labor costs, improvements to wage
management systems and education. To support
this, we will carry out the Living Wage Gap
Analysis again in 2023 and compare the results tothe previous year which, will inform our Vendor
Scorecard. Once up-to-date, G-Star can support
suppliers to improve wage management systems.

REFLECTIONS
ON 2022
Strategic Topic

Workers’ Rights

20

Fair Wages

2022 Action & Goals

2022 Highlights & Progress

2023 Actions & Goals

Adopt Higg FSLM selfassessments for Tier 1 CMT
suppliers that represent 80%
of business volume.

Adopted Higg FSLM selfassessments for Tier 1 CMT
suppliers that represented
82% of business volume.

Adopt Higg FSLM selfassessments for Tier 1 CMT
suppliers that represent 90%
of business volume.

Adopt Higg FSLM verified
assessments for Tier 1 CMT
suppliers that represent 60%
of business volume.

Adopted Higg verified FSLM
assessments for Tier 1 CMT
suppliers that represent 74%
of business volume.

Adopt Higg FSLM verified
assessments for Tier 1 CMT
suppliers that represent 82%
of business volume.

Adopt Higg FSLM selfassessments for Tier 2
suppliers that represent 50%
of business volume.

Adopted Higg selfassessments for Tier 2
suppliers that represent
72% of business volume.

Adopt Higg FSLM selfassessments at Tier 2 suppliers
that represent 89% of businessvolume.

Adopt Higg verified FSLM
assessments for Tier 2
suppliers that represent
30% of business volume.

Adopted Higg verified
FSLM assessments for Tier 2
suppliers that represent 64%
of Tier 2 business volume.

Adopt Higg FSLM verified
assessments for Tier 2
suppliers that represent
72% of business volume.

Evaluate the functionalityof the Fair Wear complaint
mechanism in Tier 1 factories
within India. Additionally,
explore the possibilities toexpand to 1 more key
sourcing country.

Expanded the existing Fair
Wear mechanism to 1 morefactory in India, and kickedoff the process to roll-out
the initiative in Vietnam
and Turkey, 2 key sourcing
countries.

Roll out the Fair Wear
Complaints mechanism inat least 1 additional country.

Participate in the Textile
in Transition: Boosting
Transparency and Farmer
Livelihoods in Organic
Cotton Supply Chainsmulti-stakeholder project,initiated by Organic Cotton
Accelerator.

Started participation in the
Textile in Transition: Boosting
Transparency and Farmer
Livelihoods in Organic Cotton
Supply Chains.

Update the Living Wage Gap
with new data from suppliers
as well as new data from the
LWI and GLWCB, and add an
additional methodology.

The 2022 Living Wage Gap
Analysis covered data from
95.6% of suppliers.

Cover 100% of Tier 1 factories
in our Living Wage Gap
Analysis.

A meeting took place in
Dhaka with our Bangladeshi
suppliers, the purpose wasfind a common approach forwage increase.

Support remaining factories
to roll out digital payments in
2023.

G-Star RAW Sustainability Report 2022

Develop communication
guidelines on wage gap
in factories support wagetransparency.
Disclose the percentage ofworkers that receive payments
digitally. Explore approaches
to increase digital payment.

84% of workers received
wages digitally.

Participate in the Textile
in Transition: Boosting
Transparency and Farmer
Livelihoods in Organic
Cotton Supply Chains multistakeholder project initiatedby Organic Cotton Accelerator.

21

PLANET

G-Star RAW Sustainability Report 2022

PLANET

G-Star RAW takes responsibility for any potential
environmental impact on our PLANET across allstages of our value chain. We consider everythingfrom the choice of raw materials and fibers to
responsible fabric and garment production andlogistics, from our own operations, all the way
through to consumer care and end-of-life of the
product. That is why Circularity is at the base of all
our Planet pillars and our Product Life Cycle. If wewant to be here as a denim brand in the future, weneed to design in ‘closed loops’ today. By this, wemean using only Responsible Materials, eliminating
Pollution and decreasing our impact on Climate
Change.

G-Star Product Life Cycle

Responsible Materials
We are committed to ensuring that all raw
materials used in our products are grown andmanufactured in a responsible way that preserves
resources and respects human and animal rights.
Since we are a denim brand, around 86% of the
raw material we use is cotton, a crop that hashistorically been associated with high water andpesticide use. Around 0.92% of our material mix
is conventional cotton, the rest is either organic,
recycled, regenerative or sourced through the
Better Cotton Initiative (BCI) via a mass balancesystem. The remaining 14% of our material mix
includes 50% polyester and 50% of other materials
such as man-made cellulosic fibers, elastane andanimal fibers. Below provides a breakdown of ourcomplete material mix.

G-Star RAW Sustainability Report 2022

22

Breakdown of materials used for G-Star RAW products
Better
Cotton62%

Organic
Cotton22%

Elastane (ROICA™
EF), Elastane(ROICA™ V550),
Elastomultiester(T400® EcoMade) 1%

Linen, Hemp 0,3%
Recycled Polyester,
Recycled Polyamide,
8%

Conventional and Recycled Animal Fibers 1%
Lyocell (Tencel™),Viscose (LENZING™ ECOVERO™) 1%
Conventional Cotton 1%
Recycled Cotton 1%
Conventional Synthetic
3%

Conventional Viscose
0,1%PLANETCONTINUED
A Closer Look at Key Materials
CottonCotton makes up around 86% of our completematerial mix. 26% of this is organic cotton and
72% is sourced via the Better Cotton Initiative
which, G-Star is a partner. By investing in this
we are supporting the Better Cotton Initiative’s
mission to help cotton communities survive
and thrive, while protecting and restoring theenvironment.

G-Star RAW Sustainability Report 2022

23

The Better Cotton Initiative applies a mass balancesystem, which means that the cotton is mixed
with conventional cotton in a complex supply
chain. The end product may therefore not actuallycontain Better Cotton. Throughout the years, BCI
sourced cotton has been an important first stepfor G-Star to move away from conventional cotton
and towards more sustainable cotton sourcing
practices. However, in our new responsible
materials goals we do not consider BCI sourced
cotton as a sustainable material nor do we include
it in our Responsible Materials Ranking. This isbecause BCI’s system currently is not designed
to support full traceability, as demonstrated

1%

72%

26%
Better Cotton
Conventional Cotton
Organic Cotton
Recycled cotton
1%with cotton sourced via Cotton Brazil. This istechnically traceable because each bale carries
a tracking code including information such as
the farm, ginning plant through to HVI testing
however, BCI’s technological infrastructure is not
set-up to provide this level of detail yet.
In 2021 BCI announced plans to develop a physicaltraceability solution in response to a growing
need for greater transparency. G-Star will continue
to stay abreast of this project whilst working toincrease the volume of recycled, organic andregenerative cotton in our material mix.

To invigorate our responsible materials goals we signed Textile Exchange’s 2025 Sustainable
Cotton Challenge in 2020 and its 2025 Recycled Polyester Challenge in 2021. We also partneredwith the Organic Cotton Accelerator (OCA) in 2021. This is a global platform that supports farmers
in their transition to organic cotton cultivation. We participate in their multi-stakeholder project
Textile in Transition: Boosting Transparency and Farmer Livelihoods in Organic Cotton Supply
Chains that aims to build a fair, environmentally friendly and economically viable organic cotton
supply chain. The project is developed and funded by Netherlands Enterprise Agency Fundfor Responsible Business (FVO) and involves a partnership with 2 other brands: Bestseller andEssenza Home. In 2023 we will explore the use of organic cotton and organic cotton in transition
via OCA and hope to develop products for our 2024 collection.
In 2023 we will apply for brand-level certification to the Organic Cotton Standard (OCS) and
the Global Recycled Standard. OCS aims to expand organic agricultural production whilst GRS
strives to increase the use of recycled materials and includes social and environmental processing
requirements as well as chemical restrictions; these certifications will enable G-Star to make onproduct claims that are verified by a reputable third party.

PLANETCONTINUED
PolyesterIn 2022, polyester made up 8% of our totalmaterial mix. We are proud that 94% of thisis recycled polyester or polyamide with theremaining 6% still conventional. We recognize that
we must explore fiber-to-fiber recycled materials
moving forward and overall, reduce our use ofsynthetics.

6%

91%

Polyester
Recycled Polyester
Recycled Polyamide

3%

ViscoseIn 2022, Viscose made up 1% of our total material
mix. TENCEL™ Lyocell fibers and LENZING™
ECOVERO™ Viscose fibers made up 90% of
this. In the coming years we plan to phase out
conventional viscose altogether.

10%
90%

Conventional Viscose
TENCEL™ Lyocell,
LENZING™
ECOVERO™ Viscose

Elastane

51%

Elastane (ROICATM EF),
Elastane (ROICATM V550),
Elastomultiester (T400®
EcoMade)Conventional Synthetic ELASTANE

24

Elastane makes up 2% of our total material mix
and is used to improve comfort, shape and fit.
Over half of this is still conventional however
we are growing our use of more responsible
alternatives, for instance 46% of the Elastane usedin 2022 was T400® EcoMade, which contains 50%
recycled PET content.

49%

G-Star RAW Sustainability Report 2022

Animal Derived Fibers
1% of G-Star’s products were made using animal
derived fibers in 2022. Whilst these make up a
relatively small proportion of our materials, wehave an Animal Welfare Policy in place to help
ensure these fibers come from safe and ethicalsources. As a minimum, all leather factories must
be Leather Working Group certified to a bronze,silver or gold level. Positively, we work with 2
leather suppliers that both hold Gold level LWG
certificates. In the future, we aim to phase out theuse of virgin animal derived fibers across G-Star
products.

2%

98%

Animal Fiber
Recycled Animal
Fiber

PLANETCONTINUED
Responsible Material Goals
After reaching our materials goals in 2020, we set new targets that are part of our Sustainability
Strategy moving forward. These are broken down below and are also reflected in our Responsible
Materials Ranking.
Goal 2025
75% of our collection will be made of regenerative, recycled and/or organic/bio-based materials.
Goal 2030
100% of our collection will be made of regenerative, recycled and/or organic/bio-based materials.

Currently, 33% of our materials are either recycled and/or organic/bio-based /compostable materials.
We consider materials that fall into this scope to be more responsible. The remaining 67% of ourmaterials consist of BCI sourced cotton sourced via a mass balance system, better than conventional,
and conventional materials.
Breakdown of use of sustainable materials over the years
99%

90%

81%

86%

86%

71%

42%

26%

14%

7%

6%
7%

5%

51%

62%

64%
64%

1%
1%

25

23%

1%

G-Star RAW Sustainability Report 2022

2011

10%

19%

14%

14%

5%
1%

2012

2013

2014

2015

2016

Conventional Fibers

Cotton unclaimed credits

Organic, bio-based or compostable fibers

46%

66%

1%

0.1%

18%

23%

8%

10%

12%

9%

2019

2020

2021

2022

13%

11%

10%

1%

4%

2017

2018

BCI

Better than conventional fibers

Recycled or mostly recycled fibers

24%

PLANETCONTINUED
Including Better Cotton, 95% of the materials used were recycled and/or organic/
bio-based/compostable.
Responsible Material Breakdown incl. BCI

28%

24%

0,22%

66%

3%

10%

68%

G-Star RAW Sustainability Report 2022

26

Responsible Materials Ranking
To guide us in our sustainable materials journey
we have been using a Responsible Materials
Ranking since 2019, listing all the fibers we
use and indicating their environmental impact,according to existing industry standards. In order
to rank the fibers, we first categorized all fibers
we use, as well as the ones we specifically choose
not to use. To guarantee the most objective andup-to-date ranking tool, the categorization of thefibers is completely based on existing industry
tools and scoring mechanisms. We included theclassification of CanopyStyle’s annual Hot Button
Ranking, the rigorous standards of the Cradle
to Cradle Products Innovation Institute, Higg
Materials Sustainability Index (Higg MSI) and thePreferred Material Benchmark by Textile Exchange.
We stay abreast of developments across material
benchmarks and update the ranking to reflect
best-practice.

Organic Cotton
Bio Based
Compostable
Recycled or mostly recycled

PLANETCONTINUED
Cradle to Cradle Certified™
innovations

Circularity Goals

The Cradle to Cradle Products Innovation
Institute helps us to design in closed loops. Theircertification process is the only one in the world
designed for a circular product economy and it
requires unparalleled levels of transparency acrossthe supply chain.
G-Star has committed to ensuring 20% of ourcollection contains Cradle to Cradle Certified®
fabrics by 2025. In 2022, just 2% of all G-Star
products sold were made with Cradle to Cradle
Certified® fabrics because we focused on using up
existing Cradle to Cradle Certified® fabrics from2021. In 2023, we will significantly build on thisvolume by developing a number of new Cradle
Certified® fabrics. G-Star recognizes the need toactively involve suppliers as part of the Cradle toCradle roadmap and collaboration will improve
our sourcing options throughout the supply chain.
In 2021, we communicated our Cradle to Cradletarget with suppliers and since, 2 suppliers in
Bangladesh have started the process of becoming
certified.
Products made with Cradle
to Cradle CertifiedTM fabrics

27

20%

G-Star RAW Sustainability Report 2022

2020

2%

2021

20% of our collection will be made with
Cradle-to-Cradle Certified® fabrics.
Goal 2030
Design for durability and recycling toextend life of 1 million pairs of jeans byoffering solutions for re-use, remake orrecycling by 2030.

By increasing our use of Cradle to Cradle
Certified® fabrics, we continue to increase our useof clean chemistry as well. Part of this strategy
also includes the use of specific sustainable dyes,
such as EarthColors® by Archroma and Recycrom,
throughout our collections.
Read more about our Cradle to Cradle Certified®
journey here.

Packaging
Packaging is an inevitable and important partof shipping products from one place to anotherwithout damaging them. However, packaging
requires additional resources, often in the form ofplastics. Our focus for 2023 will be to transition all
packaging to 100% recycled.
Polybags

3,50%
1,90%

Goal 2025

2022

2023

2024

2025

In 2020, we started testing if we could swap
virgin plastic polybags with polybags made fromrecycled polyethylene (PE) to decrease our use ofvirgin resources and therefore lower our impact on
the environment.
In 2022, all our suppliers used polybags madefrom 100% recycled content. We also started using
smaller and thinner polybags for most productgroups, beneficial as these require less material.
To encourage the responsible reuse of packaging,products ordered via G-Star.com are first
unpacked in our Amsterdam-based warehouse sothat polybags can be disposed of correctly andplaced in the recycling bin.

PLANETCONTINUED
Mailing Bags

Certified Tailors Program

In 2022 we introduced paper mailing bags for
e-commerce deliveries outside of the Netherlands
as a replacement for boxes, reducing the weightof shipping. This will be rolled out across all
destinations in 2023.

Our Certified Tailors program aims to extend thelifetime of our jeans by offering free repairs on
G-Star denim via G-Star Certified Tailors. Thisinitiative was first launched in 2021 across 5 cities
in the Netherlands and in 2022 was extended toGermany, Belgium, and South Africa following
its success. We work with tailors that have been
trained to become G-Star denim experts, teachingthem all about denim, our stitching, 3D designs,
and the fit and fabrics.

Climate Neutral Delivery
Besides scoping our emissions, we are already
implementing more climate-friendly solutions to
reduce our emissions. One example is via our bikedelivery service in collaboration with Fietskoerier
which operates in the largest Dutch cities, suchas Amsterdam. This made up 4% of all delivery
transportation in 2022. Next to that, our standard
delivery option with DHL Parcel in the Netherlands
has also become more responsible. DHL Parcel
has extended its electrical fleet and launched acarbon offset program called GoGreen.
••

In 2022, 47% of international e-commerce 		parcels shipped to customers were carbon 		
neutral through offsetting.
In 2022, 100% of parcels delivered to 		customers in the Netherlands were carbon 		
neutral through offsetting.

G-Star RAW Sustainability Report 2022

28

Through DHL’s GoGreen offset program we
contribute to climate protection projects related
to water, energy efficiency, biogas, and biomass indifferent countries around the world. Read more
about those projects here.

Closing the loop
G-Star has committed to ensuring 1 million pairsof jeans to be repaired, reused or recycled by
2030. In 2022, we continued to design products
for durability and educate customers on how towear and care for their garments. We recognizethat our product’s life cycle does not only focus
on the supply chain and garment use but also, its
end of life phase for which, we take responsibility
and ask our customers to do the same. In supportof this, we launched 2 programs in 2021 that
aim to extend the life of our products, as well as
ensure responsible end of life.

Return your old denim
In 2021 we re-initiated a product takeback
service during a pilot across 2 stores in
the Netherlands. This included our outlet
in Roermond and our mono-brand store
in Rotterdam. In 2022 we extended thisprogram to 7 countries including Belgium,
France, Germany and Austria. As a result,
97 stores (both retail and outlets) received
an RYD box. To encourage our customers toreturn their denim, G-Star offers a discounton a new pair of jeans. In 2023, we will
explore long-term solutions for recycling or
repurposing the jeans we collected.

PLANETCONTINUED
Eliminating Pollution

Zero Discharge of Hazardous Chemical (ZDHC)Minimizing pollution and eliminating all hazardous
chemicals have been a major priority for us sincesigning the DETOX Commitment with Greenpeacein 2013. Through the DETOX Commitment wecommitted to ban the use of hazardous chemicals
from our products and production processes inour supply chain. To monitor the performanceof our suppliers, G-Star has been running its
Supplier DETOX Program since 2018. We require all
suppliers to improve their performance on input,
process and output areas of chemical management
within the facilities used to produce our products.

ZDHC Gateway

G-Star joined the Zero Discharge of Hazardous
Chemicals (ZDHC) Foundation in 2012. Our first
Supplier DETOX Program was established with
our membership to the ZDHC initiative and later
extended with the addition of complementary
monitoring tools. The ZDHC member brands unite
around a joint Roadmap to Zero to ensure safe andsustainable chemical use in the fashion industry.
ZDHC also provides tools to improve chemical
management.
As part of our Supplier DETOX Program, all G-Star
supply chain partners are required to:•
Follow ZDHC’s Manufacturing Restricted 		
Substances List (MRSL).
•
Upload their Chemical Inventory List (CIL) in 		
the ZDHC Gateway twice a year.

Collects supplier data through
Third party
verified wastewater
test results

ChemicalInventory list

which are assessed against

ZDHC’s MRSL

29

that result in

The ZDHC Gateway includes more than 30,000
chemical products that have been assessed on
their conformance to ZDHC’s MRSL and helps
suppliers to identify safer chemicals. Alongside theCIL, wastewater is tested according to the ZDHC
Wastewater guidelines, providing verified dataon each supplier’s chemical performance. This isused to generate a ZDHC InCheck and a ZDHC
Clearstream report which, we request twice a year
from our suppliers.

ZDHC’s InCheck report

G-Star RAW Sustainability Report 2022

Input & Process

ZDHC’s ClearStream report
Outputare monitored in

G-Star’s Supplier
DETOX Programand benchmarked in

G-Star’s Vendor Scorecard

that is used to monitor,
evaluate and select existingand new suppliers

Higg verified FEM
Input & Process

PLANETCONTINUED
The performance of chemical substances perparameter in the Supplier DETOX Program is shownin the overview below. This performance covers
all Tier 1 and Tier 2 wet processing factories thatfall under the ZDHC scope in 2022, amounting
to 107 in total. Over 60% of these factories were
tested against MRSL substances, some of whichwere detected. To maintain and improve these wewill ensure that suppliers failing to meet ZDHC
requirements will conduct a Root Cause Analysis(RCA) and develop a Correction Action Plan (CAP).

In 2021, ZDHC Implementation tokens were
provided to G-Star Tier 1 and 2 suppliers who
were new or, had recently started to implement
the Roadmap to Zero program. The token systemenables suppliers to access training for free via
the ZDHC eLearning academy or to onboard theSupplier to Zero (StZ) program. In 2022, G-Star
issued 8 tokens for the StZ program, allowing
all factories to receive the Foundational Levelcertificate.

All Factories - Performance by Parameter (MRSL Substances)
VOCs
Poly aromatic hydrocarbons
Phtalates
PFCs
Organotion compounds
Halogenated solvents
Glycols
Flame retardants
Disperse dyes
Carcinogenic dyes
Azo dyes
Chorophenols

30

Chlorobenzenes and Chlorotoluenes
APEOs/Aps% of manufacturers

G-Star RAW Sustainability Report 2022

Not Detected0%
Detected

Not Tested

20%

40%

60%

80%
.

G-Star jumped from Foundational to the Progressive Level in the ZDHC Brands to Zero assessment
report. This is based on 2022 data and sets out to understand how brands implement ZDHC
requirements both internally and at a supply chain level, including how they engage with facilities.

100%

PLANETCONTINUED
Higg FEM performance
The Higg Facility Environmental Module (FEM)
allows manufacturing factories to measure
their environmental performance, benchmark
their results against peers, and identify areas tomake meaningful improvements. It also guides
factories through a step-by-step approach toenvironmental management. Scores are generated
by suppliers and verified by a third-party; results
refer to the previous year, meaning the figure
below demonstrates verified FEM scores from2021.

A total of 84 factories completed the Higg verified
FEM providing an average score of 65.2%. Thisis slightly lower than the previous year’s 66%
average. The latest score represents 83% of ourTier 1 business volume and 80% of our Tier 2
business volume.
In 2023 we will continue the Higg verified FEM
assessment as part of our Supplier DETOX
Program. We will aim for an average score above
65.2% which should cover at least 86% of Tier 1
and 82% of Tier 2 production volume. This is also
in line with the SAC’s membership requirements
surrounding business volume.

Average Higg vFEM Scores

Environmental Management
System (EMS)

Energy

31

Water

Waste

G-Star RAW Sustainability Report 2022

Wastewater

Air Emissions

Chemicals Management

Total Score
0
2021

2020

2019

2018

20

40

60

80

N.B. FEM results always refer to the previous year, hence this chart refers to 2021

100

PLANETCONTINUED
The Supplier DETOX Program combines 2021 datafrom the Higg verified FEM with the ZDHC 2022
results from the InCheck and ClearStream reports.
Once we receive this data it is analyzed based on
three separate areas of chemical management:•
Input – the level of risk regarding chemical 		inventory is assessed. This is based on Higg 		
FEM 2021 and ZDHC InCheck results.
•
Process – the level of risk regarding chemical
management on factory premises is assessed.
This is also based on Higg FEM 2021 and 		ZDHC InCheck results.
•
Output – level of risk regarding wastewater 		treatment is assessed. This is based on ZDHC
ClearStream reports (wastewater testing).

For each of the 3 areas one of the following 5 risk
qualifications is listed in the supplier report:

•
•
•
•
•

Best in class
Low riskMedium risk
High risk (non-compliance)
High risk (unknown)

We share their performance with our suppliers inindividual DETOX Supplier Reports. These serve asa starting point between G-Star and our suppliers
to decide which future actions can and should
be taken towards zero discharge of hazardous
chemicals and more sustainable performance.

By providing a risk qualification on each of these 3
areas, opportunities for improving a facility’s overallchemical management system are easily identified.

Since 2021, these reports also include a Corrective Action Plan (CAP) to determine which followup actions require the attention of the supplier based on their performance. These actions and atime indication should be added by the supplier and shared with G-Star. In 2022 we reported fewer
responses versus 2021 however, this is due to the baseline increasing significantly; in 2021 42 factories
were considered whereas, 107 were in 2022.

32

Moving forward, we will continue to work with the ZDHC and Higg tools and standards to monitor the
production and manufacturing performance of suppliers in the DETOX program.
Higg FEM 3.0 Response

G-Star RAW Sustainability Report 2022

Verified

Self-Ass.

No
Response

ZDHC ClearStream Report
Responded

Did not
respondZDHC InCheck Report
Response

No response

2021

90%

5%

5%

88%

12%

81%

19%

2022

66%

7%

27%

62%

38%

48%

52%

Number of manufacturers% of manufacturers

Detox
performance classification

Input

Process

Output

Input

Process

OutputBest-in-class

6

10

2

6%

9%

2%

Low risk

0

21

19

0%

20%

18%

Medium risk

55

17

17

51%

16%

16%

High risk - Non-compliance

17

30

28

16%

28%

26%

High risk - Unknown

29

29

41

27%

27%

38%

Total

107

107

107

100%

100%

100%

PLANETCONTINUED
Reducing our impact on
Climate Change
At G-Star, we recognize the critical role we play inmitigating climate change and the importance of
reducing our carbon footprint. As a result, we focus
our climate impact work on our supply chain andconsumer engagement, while also taking steps inour own offices and stores.

warming to well below 2 degrees Celsius above
pre-industrial levels. In November 2022, G-Star
submitted its carbon reduction targets to the SBTiand the targets were validated in July 2023. The
process was completed with the support of ourpartners at RESET Carbon Ltd. and included an indepth analysis of our carbon emissions for the yearof 2021, which is our emissions baseline year.
2021/2022 Carbon Footprint Calculations

Science Based Targets
In July 2019, G-Star RAW signed the UN Fashion
Charter and publicly committed to addressing the
topic of climate change. Read more about the startof this journey here. As a result, G-Star committed
to the Science Based Targets initiative (SBTi),
making sure our emission reduction goals alignwith the latest climate science and drive us towards
meeting the 2015 Paris Accord, on limiting global

Carbon accounting is broken down into 3
categories defined by the Greenhouse Gas (GHG)
Protocol Corporate Standard: Scope 1, Scope 2 andScope 3, as can be seen in the figure below.
These definitions are retrieved from the Climate
Action Playbook that explains the commitment
from the Fashion Industry Charter for Climate
Change.

GREENHOUSE GASESSCOPE 1
DIRECT

G-Star RAW Sustainability Report 2022

33

SCOPE 2
INDIRECT

purchased
goods andservicespurchased
electricity,
steam,
heating & SCOPE 3
cooling INDIRECT
for ownuseleased assets

capitalgoods
fuel andenergy related
activities
transportation
anddistribution
UPSTREAM ACTIVITIES

employeecommutingbusinesstravelSCOPE 3
INDIRECTtransportation
anddistribution
company
facilities
company
vehicleswaste
generated inoperations
REPORTING COMPANY

investments

processingof sold
products
use of soldproducts

franchises

end-of-life
treatment ofsold products

DOWNSTREAM ACTIVITIES

leased assets

PLANETCONTINUED•••

Scope 1 emissions are directly emitted from 		G-Star owned and controlled operations.
Scope 2 emissions are coming from the 		
generation of electricity and heat and steam
purchased by G-Star.
Scope 3 includes all of G-Star’s indirect 		
emissions from value chain activities. 		
Examples include purchased goods and 		services, transportation and distribution, 		business travel, employee commuting, and useof sold products.

To calculate our carbon footprint, we followed theguidelines provided by international standards,
including the GHG Protocol for Scope 1, 2 and 3.
We utilized accurate data and robust estimation
methods to ensure the reliability of our results andshared these with a third-party verifier, Carbon
Footprint Ltd. who, provided their assurance forthe 2022 carbon inventory.

Based on the results of their verification process,Carbon Footprint Ltd. provided assurance that the
GHG emissions statement:•
Is materially correct and is a fair 			representation of the GHG emissions dataand information; and•Is prepared in accordance with the GHG 		
Protocol.
It is of Carbon Footprint Ltd.’s opinion that
G-Star RAW has established appropriate systems
for the collection, aggregation and analysis ofquantitative data for determination of GHG
emissions for the 2022 period and boundaries.

Carbon Footprint Ltd. completed the review inaccordance with the ‘ISO 14064 Part 3 (2019):
Greenhouse Gases: Specification with guidance
for the verification and validation of greenhousegas statements’.

G-Star RAW Sustainability Report 2022

34

Scope 1 & 2A total of 115 owned and operated sites were
included in G-Star’s inventory for the 2022
reporting period. The breakdown per site type andlocation can be found in the table below. During
the year of 2022 13 sites closed down but the2022 inventory still captured the emissions of theoperated months of these sites.

Country

Number of site

Netherlands

24France

20

Japan

18

Belgium

13

Germany

13

United States

11

Site type

Number of site

South Africa

4

Mono Brand Store

60

Canada3

Outlet41

Austria2

Office/Showroom

6

Switzerland

2

Office

2

Spain

1

Warehouse

2

Bangladesh

1

Showroom

2

China

1

Mono store

1

Macau

1

Office/HQ

1

Ireland1

PLANETCONTINUED

In 2022, Scope 1 and 2 totaled 2.403 tCO2e (location-based emissions) and 3.089 tCO2e (marketbased emissions). In comparison to the emissions recorded in 2021, the year 2022 witnessed anoteworthy reduction of 15% (location-based emissions) and 4% (market-based emissions).
We observed a comparable distribution between Scope 1 and Scope 2 emissions, with Scope 2
emissions accounting for 86% and 89% of the total emissions based on the location-based andmarket-based grid factors, respectively.

Breaktown of Total Emission(Location-based) by Scope

Breaktown of Total Emission(Market-based) by Scope

3,000
2,500

2,500

2,000

2,000
2,463

87%

2,066

1,500

86%
Emission (tCO2e)

1,500
Emission (tCO2e)

3,000

1,000
500
355
0

13%

2021

Scope 1

337

14%

2022

2,875

89%

355

11%

2,752

89%

337

11%

1,000
500
0

Scope 22021

Scope 1

2022

Scope 235

Purchased electricity constituted the largest portion of Scope 2 emissions, representing 97% of the total
Scope 2 emissions based on the location-based calculation method. Scope 1 emissions were primarily
attributed to natural gas combustion, accounting for 63% of the total Scope 1 emissions, while mobile
fuel combustion contributed to the remaining 37%.
Breaktown of Total Scope 1 and 2 in 2022 by Source
Location-based

Market-based

G-Star RAW Sustainability Report 2022

9%

7%

5%

4%

2%

2%

84%

87%

Purchased electricity (grid)
Natural gas
Mobile Fuel Combustion
Purchased coolingIn 2022, we observed a rise in the gross floor area accompanied by a decrease in emissions, leading
to a reduction in emission intensity per unit of floor area. Purchased electricity emerged as theprimary source of emissions. Despite a slight increase of 2% in electricity consumption, the grid factor
experienced a larger reduction, ranging from 4% to 16% compared to 2021.

PLANETCONTINUED

tCO2e/sqm

Emissions Intensity per Floor Area, Location-based

0.0621

0.0621

0.06270.0379

2016

2017

2018

tCO2e/sqm

0.06212021 (Location) 2022 (Location)

0.06270.0435

2016

2017

2018

2021 (Market)

0.03102022 (Market)

36

The analysis uncovered that the majority of Scope
1 and 2 emissions, amounting to over 90% of thetotal, were concentrated in 5 countries. Notably,
The Netherlands alone contributed around twothirds of these emissions. The leading countries interms of emissions were The Netherlands, Japan,
United States, Belgium, and South Africa.
Within The Netherlands, it was found that 3%
ChangeFloor area (sqm)74,307

99,66434%

Electricity (grid) (kWh)6,959,595

7,065,713

2%

Weight EF (kgCO2e/kWh) - Location

0.338

0.284

-16%

Weight EF (kgCO2e/kWh) - Market

0.397

0.381

-4%

Emission (tCO2e)- Location

2,818

2,404

-15%

Emission (tCO2e)- Market

3,231

3,809

-4%

specific sites, the G-Star headquarters and 2
warehouses located in Amsterdam, collectively
accounted for a significant portion of thecountry's emissions, totaling 78%.
For information relating to data quality for Scope
1 and 2 please refer to the methodology, detailed
within the Appendix B.

Scope 3
In 2022, G Star's carbon footprint was primarily driven by Scope 3 emissions, which contributed
to 97% of the company's total emissions, totaling 103.094 tCO2e. When compared to 2021,
Scope 3 emissions reduced by 10%. The table below demonstrates the percent change per
Scope 3 categories.

Scope 3 Category

G-Star RAW Sustainability Report 2022

2022

0.0241

Emissions Intensity per Floor Area, Market-based

0.0621

2021

2021

2022

% Change

Cat 1 - Tier 1&2

35,83637,943

6%

Cat 1 - Tier 3&4

13,24914,4699%

Cat 1 - Other

13,003

7,753

-40%

Cat 3 - Fuel and energy related

626

703

12%

Cat 4 - Upstream transportation

24,865

11,351-54%

Cat 5 - Waste

709

188

-73%

Cat 6 - Business travel

222

567

155%

Cat 7 - Employee commuting

2,513

3,209

28%

Cat 11 - Use of sold products

21,98725,206

15%

Cat 12 - End-of-life of sold products

515

803

56%

Cat 13 - Downstream leased assets

386

169

-56%

Cat 14 - Franchises

1,202

732

-39%

PLANETCONTINUED
Scope 3 Total Emissions
123.771115.114103.094

2019

2022

2021

G-Star RAW Sustainability Report 2022

37

For a full understanding of the calculated Scope 3, please refer to the table below.
Greenhouse Gas Protocol Scope 3 Category

Description

Cat 1: Purchased goods & services

Emissions from tier 1, 2, 3 and 4 suppliers andemissions from other purchased goods and services

Cat 3: Fuel and energy-related
emissions not included in Scope 1
or Scope 2

Upstream emissions related to production of fuels
and energy consumed by G-Star own operations

Cat 4: Upstream transportationand distribution

Emissions from 3rd party transportation anddistribution paid by G-Star

Cat 5: Waste generated in operations

Emissions from waste disposed from G-Star’s operations

Cat 6: Business travel

Emissions from G-Star employees’ business travel,
including air, sea, rail, land travel and hotel stay

Cat 7: Employee commuting

Emissions from G-Star employees’ commuting

Cat 11: Use of sold products

Emissions from washing and drying of G-Star sold products

Cat 12: End-of-life treatment of soldproducts

Emissions from disposal of G-Star sold products

Cat 13: Downstream leased assets

Emissions from tenants at G-Star headquarters

Cat 14: Franchises

Emissions from G-Star’s franchisees and licensees

PLANETCONTINUED
The table below shows the Greenhouse Gas Protocol Scope 3 categories that were excluded from thecalculations and their respective justifications.
Greenhouse Gas Protocol Scope 3 Category

Justification for Exclusion

Cat 1: Purchased goods and services(packaging materials and financial
costs)

Excluded due to insufficient data available

Cat 2: Capital goods

G-Star does not own any production facilities. Other
purchased capital goods deemed to be insignificant
to G-Star overall spending

Cat 8: Upstream leased assets

All upstream leased assets are captured in Scope 1
and 2 emissions

Cat 9: Downstream transportationand distribution

All product distribution and transportation are paid by
G-Star and considered as upstream transportation anddistribution

Cat 10: Processing of sold products

Not relevant. No additional processing is required for
G-Star sold products (i.e. finished goods)

Cat 15: Investments

Investment is not a relevant emissions category for
G-Star based on its business model

38

Among the Scope 3 categories, Category 1 (Purchased goods and services) had the highest
contribution, accounting for 58% of the total, followed by Category 11 (Use of sold products) at 24%
and Category 4 (Upstream transportation) at 11%. Altogether, they account for 93% of total 2022
scope 3 emissions.
2022 Scope 3 Emissions Breakdown

G-Star RAW Sustainability Report 2022

3%

24%

Scope 3 categories defined as 'Other'

4%

58%

Employee commuting
Use of sold products
Other
Purchased goods and services
Upstream transportation and distribution

11%

Fuel- and energy-related activities

1%

Waste generated in operations

0%

Business travel1%

End-of-life treatment of sold products

1%

Downstream leased assets

0%Franchises

1%

PLANETCONTINUED
This distribution pattern remained consistent withprevious years carbon footprint calculations.
Within Category 1, the emissions from Tier 1 and
2 suppliers had the greatest impact, contributing
to 63% of the total Category 1 emissions. Tier 3
and 4 emissions (materials) accounted for 24%
of Category 1 emissions, while other purchased
goods and services made up 13%. In comparison
Emission Intensity (kgCO2e/PCS)

to 2021, the total Tier 1 and 2 emissions increased
by 6%, while the production volume by pieces
decreased by 21%. This discrepancy can be
attributed to the overestimation of production
volume in 2021, leading to a substantial dropin production volume in the following year.
Additionally, an increase in average facility
intensity also played a role in the changes.
2021

2022

% Change

Tier 1 Average

1.05

0.69

-34%

Tier 2 Average

1.51

2.21

46%

Total Average

1.19

1.66

39%

Upon examining the breakdown of emissions of Tier 1 and 2 suppliers by fuel mix, it becomes evident
that electricity stands out as the predominant hotspot among all types of fuel and energy, contributing
to 28% of the emissions. This trend holds true across both tiers. Following closely behind electricity arenatural gas and LPG, making them significant contributors to the overall emissions. It is noteworthy thatcoal accounts for 15% of the emissions, primarily originating from Tier 2 suppliers.
Total Emission Breakdown by Fuel Type
Tier 1 Breakdown by Fuel Type
8%

2%
1%

5%

4% 0%

28%

39

Tier 2 Breakdown by Fuel Type
9%

1%
1%

43%

25%

10%

G-Star RAW Sustainability Report 2022

12%

15%

22%
17%

19%

17%
Electricity (purchased)
Natural Gas-LPG
Natural Gas
Coal
Steam (purchased)
PropaneBiomass General
Others

18%

25%

17%

PLANETCONTINUED
Examining the distribution of emissions by country, China emerged as the largest contributor,
accounting for 33% of the total Tier 1 and 2 emissions. This was followed by Bangladesh, India, andTurkey. Notably, the distribution by country remained similar to 2021, with China contributing to 30% of
the total Tier 1 and 2 emissions in the previous year.
2022 Emissions Breakdown by Country

40 %16,0 0 0

35%

33%

30 %

12,0 0 025%
20 %8,0 0 0
14 %

15%

14 %
10 %

4 ,0 0 0

10 %

8%
5%

4%

5%

1%

40

Tier 2Thailand

Maurit ius

Viet nam

It alyTunisia

Pakist an

Jap anTurkeyInd iaBang lad esh

China

t CO2e0%0%0%Port ual

1%

Sp ain5%Morocco5%0%Tier 1 % over t ot al

In terms of material emissions, cotton had thehighest contribution, amounting to 72% of thetotal material emissions. BCI cotton emerges as
the leading contributor to Category 1 materials
emissions, accounting for 59% of the total. It isfollowed by organic cotton at 11% and buffalo
grain leather at 5%. The significant emissions
associated with cotton can be attributed to its
large quantity of purchase, while buffalo grain
leather exhibits a high emission intensity.

Tier 3&4 Emission Breakdown by Material Type
2%
2%

2%

2%

8%

G-Star RAW Sustainability Report 2022

3%
3%
3%
5%
COB - Cotton
OCO (Cotton (organic)
BUG - buffalo grain leather
EMT - Elastomultiester (T400® EcoMade)
WR - Merino Wool
LE - Leather
WO - Wool
RP - Polyester (Recycled)
EA - Elastane
EAL - Elastane (Lycra®)
Others59%
11%

PLANETCONTINUED
In terms of overall Tier 3 and 4 emissions, there was a 9% increase in 2022 compared to 2021. However,
it is noteworthy that despite this increase, the total weight also witnessed a substantial 20% increase.
Category 1 Tier 3&4 Emissions
5,279,961

14,46913,249Emissions (tCO2e)2021

Fibre weight (kg)4,390,9002022

Taking a closer look at Category 4, we canobserve some key patterns. Although the total
shipping volume in tkm (tonne kilometer) remains
relatively stable, there is a significant 54%
reduction in total emissions compared to 2021.
This reduction can be primarily attributed to a
substantial decrease in inbound air shipment
volume, which experienced a remarkable 72%
decline. Consequently, this reduction resulted

in a significant 66% decrease in inboundtransportation emissions.
Interestingly, with the exception of inbound sea
transportation, which saw an increase, all othershipping categories experienced reductions inboth tkm and emissions. These findings highlightthe ongoing efforts to optimize transportation andmitigate environmental impact within Category 4.

4,686

G-Star RAW Sustainability Report 2022

tCO2e

2,806

17,374

3,659
1,866

Kilo tonne.km

41

Category 4 Emissions
Emission Factor* (kgCO2e/tkm)
0.016
58,537

5,827

14,5292021

2022

Inbound2021

Inbound

Outbound B2B

Sea

0.130

Air

0.132

Road

71,846

4,125
Inbound
2022

1,959
4,425

1,276
3,203

3,946
1,689

3,088
1,275

OutboundB2B 2021

OutboundB2B 2022

Outbound
B2C 2021

Outbound
B2C 2022*Source: UK DEFRA

Outbound B2C

For information relating to the data quality for Scope 3, calculation methodologies and methodology
updates, including a comparison to 2021 calculations, please refer to Appendix B.

REFLECTIONS
ON 2022
Strategic Topic

Circularity

2022 Actions and Goals

2022 Highlights & Progress

2023 Actions & Goals

Recertify our Cradle to Cradle
Certified® Denim Product.

Finalized recertification of
Cradle to Cradle Certified®
Denim Product.

Recertification of Cradle toCradle Certified® Gold v 3.1.

Proceed upscaling of Cradle
to Cradle Certified® fabrics aspart of Product Development
and Sourcing Strategy.
Train G-Star teams on the
topics of circular economy
and circular design, through aworkshop program organizedby Circle Economy.
Further rollout in-store
takeback service (Return
Your Old Denim) to collect
post-consumer waste.
Explore long-term solutions
for recycling of collectedjeans.

2.8% of our products are
made with Cradle to Cradle
Certified® fabrics.
Circle Economy organizeda 2 day training on circular
design principles for the fullproduct team which resulted
in the creation of a circularity
roadmap.
In-store take-back is now
active in 97 stores across
7 countries.

Proceed upscaling of Cradle toCradle Certified® fabrics withthe aim to reach 20% Cradle
to Cradle Certified® fabrics in
2025.
Launch reCommerce platform.
Increase amount of discarded
denims collected and recycled.
Increase amount of denim
products repaired.

Finalized rollout of Certified
Tailors in Germany and South
Africa.

Rollout Certified Tailors in US,
Germany, and South Africa.

Responsible
Materials

Achieve brand-level
certification for the Organic
Cotton Standard; explore
brand-level certification for
the Global Recycle Standard.

42

Explore the opportunity todevelop the Responsible
Materials Ranking as a tool
to communicate beyond
our main materials, but also
include trims, linings andproduction processes.
Continue participation in the
Higg Transparency Program
through Amazon.

Started the process to acquire
brand-level certification for theOrganic Cotton Standard andGlobal Recycled Standard.

Achieve brand-level
certification for the Organic
Cotton Standard and Global
Recycle Standard.

Continued collaboration
with the Organic Cotton
Accelerator to support farmers
in their transition to organic
cotton cultivation.

Grow the percentage of
responsible materials in
production in line with
our responsible material
commitments.

Developed a new frameworkfor sustainable claims tomove beyond raw material
claims and include lower
impact production processes,
certifications, manufacturing
unit and recyclability.

Implement indicators forresponsible production
processes in PLM.

G-Star RAW Sustainability Report 2022

Amazon’s Higg Transparency
program is currently on hold.

REFLECTIONS
ON 2022CONTINUED
Strategic Topic

Pollution

2022 Actions and Goals

2022 Highlights & Progress

2023 Actions & Goals

As a minimum, achieve an
average verified FEM scoreof 60% for Tier 1 and Tier 2
suppliers that represent 85%of business volume.

Achieved an average scoreof 66% across both tiers
which is 15% higher than theindustry average. 83% of Tier
1 suppliers and 80% of Tier 2
suppliers are captured in thisaverage score.

As a minimum, achieve a
verified FEM score for Tier 1
suppliers that represent 86%
of business volume, and Tier 2
suppliers that represent 82%
of business volume.

Achieve 90% conformancewith ZDHC waste water
guidelines for MRSL and 60%
compliance for level 1 of ZDHCInCheck report for 85% of ourbusiness volume.
Improve supplier complianceto the G-Star RAW DETOX
program.

Climate Change

Publish Scope 1, 2 and 3
carbon inventory results.
Create GHG reduction
scenarios with RESET Carbon.
Reduce our (virgin plastic)
packaging.

Our DETOX program included
107 factories under the ZDHC
scope, with an average of
77% conformance with theparameters set by ZDHC
Wastewater Guidelines.
Provided 8 ZDHC
implementation tokens to
new and existing Tier 1 and
2 suppliers to implement the
Roadmap to Zero program.

Finished full carbon footprint
calculation for 2022 andcompleted verification via 3rdparty.
Created GHG reduction
scenarios with RESET Carbon
and submitted our targets
to Science Based Targets
Initiative and achieved official
validation.
All our suppliers now use
polybags that consist of 100%
recycled content.

G-Star RAW Sustainability Report 2022

43

Replaced cardboard boxes
for paper envelopes for
air destinations and whenshipping from stores.
Offered bike delivery option
in the largest Dutch cities,
covering 4% of transportationin the Netherlands.
47% of international
e-commerce parcels shipped
to customers were carbon
neutral.
100% of parcels delivered tocustomers in the Netherlands
were carbon neutral.

Achieve 90% conformancewith parameters set by ZDHC
Wastewater Guidelines.
Continue to provide ZDHC
implementation tokens to
suppliers to implement the
Roadmap to Zero program.

As a minimum, achieve a
verified FEM score for Tier 1
suppliers that represent 86%
of business volume, and Tier 2
suppliers that represent 82%
of business volume.
Achieve 90% conformancewith parameters set by ZDHC
Wastewater Guidelines.
Continue to provide ZDHC
implementation tokens to
suppliers to implement the
Roadmap to Zero program.
Define roadmap to reach
Science Based Targets.
Increase the amount ofecommerce parcels to bedelivered carbon neutral.

44

PHILANTHROPY

G-Star RAW Sustainability Report 2022

PHILANTHROPY

The GSRD Foundation was founded in 2007 as G-Star’s corporate foundation. Its mission is tocreate a positive impact on the lives of the people and communities in the countries where G-Star
RAW products are made. It does so by supporting projects that focus on the education, training andcoaching of young adults.
The foundation’s ethos is that knowledge, an entrepreneurial mindset and self-empowerment are
key to economic independence and social development. To facilitate this, the foundation supports
projects that focus on education and entrepreneurship.
Education

Entrepreneurship

Vocational training and education for young
adults, focusing on knowledge and skills thatwill help them to learn a trade, improving theirchances of acquiring employment and therefore,
having a better future.

Life-skills training and coaching for young
adults, to help them to become independent,
seize initiatives and leverage opportunities tobecome more self-sufficient, either as proactive
employees or through self-employment.

The activities from the GSRD Foundation directly contribute to reaching the Sustainable
Developments Goals 4, 8, 10 and 17. They indirectly support the SDGs 1, 2, 3, 5 and 13 as well.

Direct impact

G-Star RAW Sustainability Report 2022

45

Indirect impact

PHILANTHROPYCONTINUED

G-Star RAW Sustainability Report 2022

46

The GSRD Foundation is active in four G-Star RAW production countries:
Bangladesh, China, India and Vietnam.

Bangladesh

India• Active since 2008
• 8 running projects in 2022

• Active since 2008
• 13 running projects in 2022

China

Vietnam• Active since 2009
• 2 running projects in 2022

• Active since 2014
• 10 running projects in 2022

PHILANTHROPYCONTINUEDThe Foundation supports all of its projects throughpartner organizations, which have a proventrack-record in education and entrepreneurshipand countries where GSRD is focusing its efforts.
We strive for long-term relationships in orderto strengthen the projects we support and thepartner organizations that run them. All projects
seek to help people leverage opportunities tobecome more self-sufficient, either as proactive
employees or through self-employment.

The GSRD Foundation has beenworking together withCurrently the GSRD Foundation
works together withpartners over the past years.

24partners.

109

33

57

projects have been
supported since 2008.

projects are being
supported today.

2022 in the rearview mirror
15 years of GSRD Foundation

47

2022 marked the 15th anniversary of the GSRD
Foundation. The board took this occasion to
conduct an evaluation among the foundation's
partners, performed by a master's student fromthe Rotterdam School of Management.
Partners and Projects

G-Star RAW Sustainability Report 2022

In the reporting year, the GSRD Foundation made16 commitments to both existing and new partners
in Bangladesh, China, India, and Vietnam.
Apnalaya became a new partner for the GSRD
Foundation, while TIDE returned as a partner
after several years. The Sage Foundation, where
UnLtd India is incorporated, also joined as a neworganization.
In 2022, the GSRD Foundation expressed rollingcommitments to Friendship and Grameen Shikkha.
However, by the end of the year, the long-standing
relationship with the Partnership Foundation,
supporting the Rainbow Home Program, came toan end through a contractual exit that had beenin preparation for many years. In the coming year,
the board will directly support the Rainbow Home
Program, including with a rolling commitment.
The foundation continued its support to various
long-term partners such as Sawed Trust, The Asia
Foundation, Save the Children, Solidaridad, MCNV,
and Hand in Hand India.
The foundation continued its support to various
long-term partners such as Sawed Trust, The Asia
Foundation, Save the Children, Solidaridad, MCNV,
and Hand in Hand India.
Lotus Leadership AwardIn April, the GSRD Foundation received the2022 Lotus Leadership Award for its "significant
contribution to empower women and promote
gender equality." This award, presented by The
Asia Foundation's Lotus Circle, honors individuals
and organizations that have made remarkable
contributions to women's empowerment andgender equality.

PHILANTHROPYCONTINUED

G-Star RAW Sustainability Report 2022

48

CASE STUDYCASE STUDYGRAMEEN SHIKKHAAPNALAYA

Grameen Shikka is part of the Grameen
organizations created by Nobel Laureate
Professor Muhammad Yunus. One of their
missions, supported by GSRD Foundation, isto provide financial support to poor students,
promoting mass education.

Apnalaya works with the urban poor
enabling access to basic services, healthcare,education and livelihoods; empowering themto help themselves; and ensuring provisionof civic entitlements through advocacy withthe government.

Dr Mukti Biswas is living proof of thelife changing effect this can have. Aftercompleting his medical degree and internshipat Dhaka Combined Military Hospital (CMH)
and Kurmitola General Hospital in Dhaka in
2020. He recently joined the civil service
and began his medical career at the Upazila
Health Complex, Bagerhat, a place close towhere he grew up, finally reaching his goal of
becoming a doctor.

Our partnership with Apnalaya started thisJune and aims to support 100 adolescentsin the age group of 14 to 18 years in theinformal settlements in Mumbai to ensurethat they stay in school, improve their social
education (self-awareness, social awareness,critical thinking) and remain unmarried until
the legal age.

Mukti Biswas was born into a family withan extremely low income but he was abrilliant student. After gaining high grades
throughout his studies in school, he wasselected for an educational scholarship.
Grameen Shikkha and the GSRD Foundation
supported the scholarship and are proud of
Mukti in pursuing his education, eventuallyleading to a valuable medical degree.
More information can be found about ourGrameen Shikka program via the GSRD
Foundation website.

The image above shows the M Ward in
Mumbai, as well as the students from
Apnalaya’s programmes. Students in the IT
class learnt the fundamentals of computer
applications including Microsoft Office. They
can additionally choose to learn different
programming languages such as Android
programming, Java, CSS, and HTML for
generating apps or website development
based on their hobbies. You can learn more
about Apnalaya via the GSRD Foundation
website.

49

APPENDICES

G-Star RAW Sustainability Report 2022

APPENDIX A:RISK ASSESSMENT
In our 2019 Sustainability Report we first introduced a due diligence risk assessment following theguidelines of the OECD Due Diligence Guidance for Responsible Supply Chains in the Garment
and Footwear Sector. Our risk assessment aims to identify both the likelihood and the severity ofa potential or actual harm within the value chain. It provides the foundation and justification of ouractions and goals. Our Sustainable Supply Chain Handbook explains how G-Star has conducted its
risk assessment and identified the most significant risks in its supply chain.
In 2022 we carried out our risk assessment with the help of industry partners, stakeholders, andexternal resources. This was based on Tier 1 and Tier 2 suppliers from Bangladesh, China, India,
Vietnam, Turkey, Pakistan and Mauritius. Accounting for 32% of our Tier 1 production volume and
23% of our Tier 2 production volume.

Risk Matrix

G-Star RAW Sustainability Report 2022

50

The risk matrixes below illustrate the salient
risks that have been identified for mitigation.
The first matrix shows the social risk categories
as identified by OECD translated to our supply
chain Bangladesh, China, India, Turkey, Mauritius
and Vietnam. The second matrix shows theenvironmental risk categories in Tier 1, Tier 2,
Tier 3 and Tier 4, also based on data from our
6 production countries. Based on the analyzed
information from our supply chain we canconclude that the areas in the right and middle totop corner of the matrix can be scaled as salient
risks. These risks are included as key priorities aspart of our Sustainability Strategy and action plan
towards mitigation.

Compared to our assessment in our Sustainability
Report of 2020, we can see that the mostprevalent social risk factors remain similar withthe addition of Turkey and Tunisia. Including
Turkey and Tunisia does show some changes
in environmental risk factors on tier level. We
need to pay additional attention to the increased
likelihood of water pollution in Tier 4, greenhousegas emissions throughout Tier 1 and 3, and water
consumption in Tier 1 and 2. A review of our
supplier data showed that no major changes had
to be made regarding the risk assessment.

APPENDIX A:RISK ASSESSMENT
CONTINUED
Figure 1 - Risk matrix for social risk factors in Bangladesh, China, India, Tunisia, Turkey and Vietnam

I

B, I, Tn, Tr & V

Tr

B, C, I, Tn & VC
Tn & Tr

Tn

B, C, I & V

B&I
B, C, I, Tr & V

Tn, Tr & V

B&C

I

Tn & V
MediumSeverity of harmHigh

B, C, Tn, Tr & V

B, C, I & Tr

C, Tn, Tr & V

Low

MediumHigh

Likelihood of harmChild labour

Forced labour

Freedom of Association

Minimum wage

Health & Safety

Discrimination / (sexual) harassment(Excessive) working hours

Living wage

Bribery / corruption

Figure 2 - Risk matrix for environmental risk factors in Tier 1, Tier 2, Tier 3 and Tier 4

Severity of harm

T4
T3

T4

T 1 & T2
T2 & T4

T3
T4

T3

Medium

G-Star RAW Sustainability Report 2022

51

High

T1 & T2

T1 & T2
T3

Low

T1

MediumHigh

Likelihood of harm
Water consumption

Water pollution

Chemicals

GHG

APPENDIX A:RISK ASSESSMENT
CONTINUED
Next steps

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52

Due diligence is an ongoing process, and so is thisrisk assessment. Our risk assessment supports us indefining and implementing our new Sustainability
Strategy. In 2023, we will re-evaluate our risk
assessment methodology, focusing on additionalrisk categories beyond the OECD and including
the topics of the Higg BRM to create an even more
holistic overview of the context of our value chain.
We will also integrate more dialogue with local
stakeholders, including trade unions and factory
workers. This way we aim to include additional local
perspective to be able to determine more specificactions in certain areas. The data that we collect inour Vendor Scorecard will form the center of ourrisk assessment. This way we integrate supply chain
data more specifically and can link the results fromour risk assessment more directly to our strategy.

APPENDIX A:RISK ASSESSMENT
CONTINUED
Strategic Priorities & Actions towards Mitigation
Based on the results of the risk matrixes above, we have linked our strategic topics from our
Sustainability Strategy and the goals we have set and actions we are taking to mitigate the identified
salient risks categories.
Strategic Topic

Worker's Rights

Related risk category

Goals 2025 - 2030

Actions specified for 2022

Child labor2025: Strengthen workers
voice by offering a complaints
system including fair terms,
anonymous accessibility,
process for complaints
handling and capacity building
to workers.

Continue supplier social
performance improvementmonitoring through theverified Higg FSLM anddetermine performanceindicators.

Discrimination / (sexual)
harassment
Forced labor
Freedom of Association(Excessive) working hours

Develop methodology onsocial supplier performance
scorecard to integrate in our
Vendor Scorecard. Share
Vendor Scorecard with
suppliers.
Increase visibility of Tier 3 &4 suppliers in all countries bycollecting and documenting
the information received
through direct and Tier 2
suppliers.
Continue Fair Wear
Complaints Mechanism withkey suppliers in India andorganize Workplace Education
Program.

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53

Analyze output from Fair
Wear Complaints Mechanism
in India and use learning to
feedback indicators that can
improve communication on
factory floor.
Define new country rollout
with FWF.
Implement and improve G-Star
Purchasing Practices following
the ACT commitments: timely
planning and forecasting,defining labor costing withinpurchasing prices, fairpayment and term and a
responsible exit strategy.
Research recruitment
practice and work directlywith factories to implement
preventative measures.
Organize supplier conference
focusing on key strategic
topics and possible
improvements.

APPENDIX A:RISK ASSESSMENT
CONTINUED
Strategic Topic

Fair Wages

Related risk category

Goals 2025 - 2030

Actions specified for 2022

Minimum wages

2025: Actively engage inlobbying towards an industry
wide agreement on regional
living wages and improve
purchasing practices andwage management systems toincrease wages in G-Star RAW
production countries

Update our Living Wage Gap
Analysis and incorporate
results in Vendor Scorecard.

Living Wage
(Excessive) working hours

Train internal teams andsuppliers on key purchasing
practices topics based on
survey findings with the helpof ACT’s training tool.
Set a baseline to improvewage management systems infactories.

Circularity

Water consumption
Water pollution
Chemicals
Greenhouse gases

2025: 20% of our collection ismade with Cradle to Cradle
Certified® fabrics

Renew Cradle to Cradle
Certified® Denim Product
Certification.

2025: Design for durability
and recycling to extend the lifeof G-Star RAW products byoffering solutions for re-use,remake or recycling

Launch Return Your Old
Jeans in Europe, US andSouth Africa.

2030: Enable G-Star RAW
products to meet ourcircularity criteria's (madefrom recycled [mono]materials and components
and designed for durability
and recycling)

Responsible
Materials

Water consumption
Water Pollution

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54

Greenhouse gases

2025: 75% of our collection
will be made of recycled
and/or organic/bio-based/compostable materials
2030: 100% of our collection
will be made of recycled
and/or organic/bio-based/compostable materials

Increase the use of Cradle
to Cradle Certified® fabrics.
Finalize agreement withrecycling and upcycling
partners.

Increase the use of morerecycled, organic/bio-basedor compostable materials.
Get certified on brand level
for OCS and GRS.
Monitor progress on reaching
Responsible Materials Goals
2025.

APPENDIX A:RISK ASSESSMENT
CONTINUED
Strategic Topic

Climate Change

Related risk category

Goals 2025 - 2030

Actions specified for 2022

Greenhouse gases

2025: Reduce 15% of
GHG emissions

Update the inventory of Scope
1 and 2 based on 2021 data.

2030: Reduce 50% of
GHG emissions

Map inventory of GHG
emissions of scope 3 withexternal consultant.
Define roadmap to reduce the
GHG emissions according togoals continue to track scope
1, 2 and 3 emissions on yearlybasis and publicly disclose
results.
Select key suppliers andengage with them on setting
GHG reduction plans by using
training tools.
Set Science Based Targets
through the SBTi platform.
Create a responsible
packaging strategy and shareinternal packaging policy
globally.

Pollution

Water pollution
Chemicals
Water consumption

55

Greenhouse gases

2030: Achieve 100%
sustainable chemical
applications in G-Star
RAW productsContinue the G-Star Supplier
DETOX program tool tomonitor and track supplierenvironmental performance.
Increase supplier engagement
on requirements of the ZDHCInCheck reports and chemical
management.
Increase adoption andperformance improvementof verified Higg Facility
Environmental Module (FEM)
at Tier 1 & 2 suppliers.

G-Star RAW Sustainability Report 2022

Train Product Development
team on verified Higg FEM
performance for Tier 2
suppliers.
Develop 2030 roadmap withexternal consultant.
Update manufacturing map
including verified Higg FEM
scores.

APPENDIX B:

FASHION INDUSTRY CHARTER FOR
CLIMATE IMPACT – CARBON FOOTPRINTCALCULATIONS
Methodology for calculating Scope 1, 2 and 3 emissions
This flow diagram demonstrates the methodology used for Scope 1 and 2 calculations.
Total GHG emissions (tCO2e)=Σsources (Activity data x Emission factor1 x Global Warming Potential2)

Yes
Does the site havecomplete activity data
for the entire reporting
period?

Use actual activity data

No
No

Does the site haveactivity data forother months in thereporting period?
Yes

1.
2.

Yes

Use cost dataNo

Use regional
montly data

Does the site haveenergy cost data
for a given month?

Use site’smonthly average

Emission factors from internartional standards are used (e.g. IEA, US e-GRID, GHG Protocol, DEBRIS)
Global Warming Potential of Fourth Assessment Report published by Intergovernmental Panel on
Climate Change (IPCC AR4) is adopted

56

The changes to emission categories used for reporting in 2022 (versus 2021) are demonstrated below.
Category

Changes

Cat 1: Purchased goods and services

Recategorization of tier of some factories andemission factors (DEFRA - Conversion factors
KgCO2 per £ spent, by SIC code 2020) for “Other
purchased goods and services”

Cat 3: Fuel and energy related
activities

G-Star RAW Sustainability Report 2022

Cat 4: Upstream transportation anddistribution

Emission factor changes

Cat 6: Business travel
Cat 7: Employee commuting
Cat 11 and 12: Use of sold products
and End-of-life of sold products

Inclusion of outbound B2B amountAPPENDIX B:

FASHION INDUSTRY CHARTER FOR
CLIMATE IMPACT – CARBON FOOTPRINTCALCULATIONS CONTINUED
This table below demonstrates the methodology used for calculating Scope 3 emissions.
Sub-category

Quantification Method

Source of Data

Source of Emission
Factors/References

Tier 1 and 2

Supplier specific andextrapolation

Procurement
data, Higg Facility
Environmental Module(FEM)

Emissions directly
extracted from Higg
FEM

Average data

Weight by material
type

Spend data

Spend on otherpurchased goods
and services

DEFRA - Conversion
factors KgCO2 per £spent, by SIC code2020

Cat 3: Fuel andenergy related
activities(not includedin Scope 1 or
Scope 2)Company-specific data

Energy consumption
data from G Star’s
operation (Scope 1
and 2)

UK DEFRACat 4: Upstream
transportationand distribution

Average data

Inbound and outbounddelivery reports

UK DEFRACat 5: Waste
generated inoperations

Spend data

Spend on waste
management

GHG Protocol Scope 3
Evaluator

Business air travel

Average data

Business air travel
recordUK DEFRABusiness rail travel,road travel and hotel
stays

Spend data

Business rail and roadtravel and hotel stays
recordGHG Protocol Scope 3
Evaluator

Cat 7: Employee
commuting

Average data andextrapolation

Employee numbers,
transport type anddistance assumptions
based on allowancetype

UK DEFRACat 11: Use ofsold products

Average data

Sales volume byproduct type

IEA grid factor

Category

Cat 1: Purchased
goods andservices

Tier 3 and 4

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57

Other purchased
goods and services

Cat 6: BusinesstravelHigg Material
Sustainability Index(MSI) LCA number

APPENDIX B:

FASHION INDUSTRY CHARTER FOR
CLIMATE IMPACT – CARBON FOOTPRINTCALCULATIONS CONTINUED

Category

Sub-category

Cat 12: Endof life treatmentof sold products
Cat 13:
Downstream
leased assets
Cat 14:
Franchises

Emissions fortenants in G-Star
headquarters

Quantification Method

Source of Data

Source of Emission
Factors/References

Average data

Sales volume byproduct typeand region

UK DEFRA, waste
disposal methods
from The World Bank
“What a Waste Global
Database”

Average data

Floor area of tenants inheadquarter

Proxy from Scope 1 and2 emissions

Average data andextrapolation

Franchises’ Sales
Surface Area,purchased volume
from G-Star’s licensee

IEA grid factor

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58

Data Quality for Scope 1, 2 and 3
Calculations
Scope 1 and 2
In our emissions calculation process, we strive
to capture primary data for all sites to ensure
accuracy. However, it's important to note that
we face challenges in accessing primary datafor certain sites where utility bills are paid by thelandlord and included in the site rent. Although wehave made efforts to contact landlords and obtainthe necessary data, it was not possible for all sites
where utilities are included in the rent. Despite
this limitation, we have employed estimation
methods and utilized available data to ensurecomprehensive and reliable emissions calculations
for the majority of our sites. Moving forward,

we will engage landlords at an earlier stage
to ensure we have good access to utility
primary data.
The data quality of our emissions calculations
is primarily displayed within location-based
emissions. In 2022, we were able to calculate
84% of our emissions using actual data, whichis consistent with the previous year. However, it
was observed that for Japan, the second-highest
emitting country, approximately half (49%) of theemissions were calculated using proxy data. Thisreliance on proxy data was mainly due to the lackof energy unit cost data. Despite this limitation,
we have made every effort to ensure the accuracy
and reliability of our emissions calculations acrossall regions.

APPENDIX B:

FASHION INDUSTRY CHARTER FOR
CLIMATE IMPACT – CARBON FOOTPRINTCALCULATIONS CONTINUED
Location-based Emission
by Data Type
15%

16%

85%

84%

2021

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59

Actual2022
Proxy

Scope 3 (Tier 1 and 2 Factories)
In 2022, a significant number of our factories
underwent 2021 Higg FEM verification, with 73
out of 116 facilities being verified. This accounts
for 47% of the total number of factories within
our inventory. Comparatively, in 2021, 52 outof 129 factories (40%) underwent verification.
This increase in the number of verified factories
demonstrates our commitment to ensuring theaccuracy and reliability of our data. We also expect
this increase to continue over the years, as G-Star
has made Higg FEM a requirement to all factories
producing for the brand.
Furthermore, when examining the emissions data,
we observe a positive trend in data quality. The
percentage of verified data increased from 57%
in 2021 to 63% in 2022. This indicates a notable

Country

Location-based
emissions (tCO2e)

Actual data

Proxy

Netherlands

1,550

94%

6%

Japan

207

51%

49%

United States

162

70%

30%

Belgium

112

62%

38%

South Africa

98

73%

27%

Germany

49

36%

64%

France

35

85%

15%

Bangladesh

25

100%

0%

Canada

12

33%

67%

Switzerland

10

3%

97%

Macau

7

100%

0%

Austria

4

97%

3%

China

1

0%

100%

Spain

1

100%

0%

Ireland

1

0%

100%

improvement in the availability of verified data.
Consequently, there has been a decrease in theuse of proxy data and self-assessed data by 3%.
This decrease further signifies the progress madein obtaining more accurate and verified data fromour Tier 1 and Tier 2 suppliers. These improvements
in data quality reflect our ongoing efforts toenhance the transparency and integrity of ouremissions reporting and management processes.
Overall, this comprehensive analysis provides
valuable insights into our carbon footprint andhighlights areas for improvement and focus for theupcoming years. G-Star remains dedicated to thecommitment of sustainability and will continue to
implement strategies to reduce the environmental
impact of our business in the years to come.