Sustainability
Progress Report
2023

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Sustainability Progress Report 2023

Contents
Introduction

3

Impact

4–6

Innovation

7 –13

Integrity

14 – 20

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Sustainability Progress Report 2023

Introduction

IMPACT=INNOVATION+
INTEGRITY
Sustainability is central to Spiber’s mission.
Faced with the reality of a world with limited
resources, we are devoted to developing newmaterials which can have a transformational impact
on society.
In 2022, we created our first Sustainability Impact
Report, which outlines Spiber’s strategy towards
maximizing our potential for positive impact anddefines the ambitions and targets we aim to achieve
moving forward. As our first Progress Report, thisdocument shares how far we have come towards
those goals by using our concept of
Impact = Innovation + Integrity as a framework toencompass the topics that are most material to ourbusiness and our stakeholders.
Data contained within this report covers ouractivities throughout the 2022 calendar year unlessotherwise noted, with some activities covered up
to December 2023, including those undertaken at
our headquarters and R&D facilities in Japan, at ourpolymer production plant in Thailand, and throughour strategic partnership in the USA.
Read our latest disclosures in accordance with the
GRI standards here.

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Integrity

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Our commitment
We strive to play our part in helping society shift towards adopting better
materials by continuing to hone our understanding and use of proteins. In
order to bring about this change, we are committed to further scaling up the
production of our fibers to provide alternative, sustainable textile materials
to customers globally.
We believe we can maximize our positive impact on the environment andsociety by expanding our capacity to produce these materials so that they canbe adopted across a variety of industries.

Our progress
Improve productivity

Develop various formats of Brewed Protein™

After successful production trials, we are now on theway to large-scale mass production in Thailand witha capacity of up to 500 tonnes of Brewed Protein™
polymer per year.

Other than fibers used for yarn spinning, we are also
pursuing material science innovations to further
diversify the performance attributes of our polymer
to expand its range of applications and adoption.

We are continuing to increase production in Thailand
and will continue to improve our process while preparing to expand capacity at a second production
plant in the USA in order to reach a wider market.

One example of this can be seen in our active efforts
in the alternative protein space, where we develop
various formats of Brewed Protein™ materials to be
used as functional ingredients that replace animalsourced ingredients and foods. In addition to this,
we are proactively developing animal fur alternatives to expand our range of textile products.

In 2022, Spiber participated in a project to compile a comprehensive database of spider silk protein
gene sequences and their associated physical properties as fibers. The project was promoted by aninternational joint research group led by Professor Kazuharu Arakawa (Institute for Advanced Biosciences,
Keio University) and Professor Keiji Numata (Biopolymer Research Team, RIKEN Center for Sustainable
Resource Science/Department of Material Chemistry, Kyoto University). The analysis of obtained aminoacid sequence information and physical properties from 1,098 species of spiders was used by researchers
to investigate both the types of proteins that constitute spider silk as well as the effects of protein motifs
on the physical properties of silk fibers. Read more about the project here.

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A word from GOLDWIN INC.

Takao Watanabe

President & Representative Director,
GOLDWIN INC.

“GOLDWIN has been collaborating with Spiber since2015 to develop structural protein materials for use
in apparel products. Our shared goal has been toaddress various environmental challenges within
the apparel industry. To this end, we have closely
monitored the evolution of Brewed Protein™
materials throughout our partnership. In 2023,
eight years after the inception of our collaboration,
Spiber achieved mass production of Brewed Protein™
polymers, and we successfully launched several
global commercial-scale collections featuring thesematerials.

We firmly believe that Brewed Protein™ materials
have the potential to revolutionize a wide range ofindustries, including fashion. Implementing new materials into high added-value textiles and garmentsthat truly satisfy consumers is a significant challenge,
but we remain enthusiastic about our continued
joint development efforts. Our motivation is to makethese innovative materials accessible not only to ourcompany but also to the global community. We lookforward to continuing our collaborative journey inthe years to come.”

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Innovation

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INTEGRITY
Innovation

Our commitments

Our vision is to expand the range of sustainable materials through ourtechnological innovation, closed loop systems, and key partnerships.

1. Circularity

2. Greenhouse gas emissions and energy

Publish the first version of our design guideline forbiosphere circular products by the end of 2023

Create a mitigation plan by 2024 to reduce
emissions intensity to 10 kg CO₂ equivalent per
kilogram Brewed Protein™ fiber by 20291

3. Diversity, Equity, and Inclusion in the workplace

4. Sourcing

Form an official Diversity, Equity, and Inclusion (DE&I)
committee led by senior management and define
activities to promote the diversity of Spiber’s
workforce by 2024

Identify potential non-edible feedstocks
1.

Develop processes to utilize various types ofagricultural waste and by-products as feedstock

1.

Provide DE&I training to raise awareness and help
create a more inclusive culture

2.

2.

Introduce a program for employees with disabilities to ensure equity of access to recruitment,
career development, promotion, training, andother employment opportunities for all staff

Replace at least 50 tonnes (dry weight) of
sugarcane sugar with non-edible, biomass-based
sugar as feedstock annually for Brewed Protein™
polymer production in Thailand by 2026

3.

Introduce DE&I considerations to the recruitment
process

4.

Bring the ratio of women in management
positions (senior manager level and above) at theSpiber Group to at least 30%2 by 2025

Innovation is the beating heart of our business. We are committed to continuing the development of Brewed Protein™ materials and providing compelling,sustainable solutions for a wider range of industries. Given that innovation is
not possible without the talented people who drive our business, we are firmly
committed to helping our team thrive and reach their full potential during
their time at Spiber.

1 Details concerning our Scope 1 and 2 greenhouse gas (GHG) emissions and further information on our reduction activities can befound in our Sustainability Impact Report from page 34 onward.

2 Current ratio of women in management positions (senior manager level and above) within the Spiber Group is 11% as of November 2023.

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1. Circularity

Our commitment

Our progress

Publish the first version of our design guideline forbiosphere circular products by the end of 2023

We showcased our biosphere circulation project at the Biofabricate Paris
Summit 2024 where we shared our vision for what we believe is necessary toachieve a circularity-based society. In parallel, we published our biospherecirculation project principles, a set of guidelines which facilitate the designof products that can be converted into nutrients for microbial fermentation
at end-of-use, therefore ensuring compatibility with biosphere circulation.

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2. Greenhouse gas emissions and energy

Our commitment

Our progress

Create a mitigation plan by 2024 to reduce
emissions intensity to 10 kg CO₂ equivalent per
kilogram Brewed Protein™ fiber by 2029

We have created dedicated internal working groups to identify the steps
necessary to achieve 10 kg CO₂e GHG emissions per kilogram of Brewed
Protein™ fiber. These groups seek to ensure that input from our environmental
sustainability members is reflected in Spiber’s production, engineering, R&D,
and supply chain management functions. These working groups focus onemissions reduction within different areas of our production process and our
upstream supply chain. For example, the working group focusing on polymer
production is looking at detailed energy management at the current Thai
polymer plant to reduce energy use, and is also performing feasibility studies
on alternative energy options that could enable Net Zero emissions for on-site
operations.

Through disclosures like the Carbon Disclosure Project (CDP), we are refining
our thinking on how to measure and reduce our impacts to reach our goal ofachieving Net Zero by 2035.

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3. Diversity, Equity, and Inclusion in the workplace

Our commitments

Our progress

Form an official Diversity, Equity, and Inclusion (DE&I)
committee led by senior management and define
activities to promote the diversity of Spiber’s
workforce by 2024

We have a participatory approach in which DE&I topics are considered by
employees and brought to upper management. Spiber’s DE&I Working Groupconsists of team members from various backgrounds who gather voluntarily ona regular basis to voice opinions, identify issues, and offer help and feedback
for projects undertaken by the DE&I Team. The DE&I Team Manager is a regularattendee in upper management meetings (at the division and executive officelevel), where they represent DE&I perspectives and audit the management
cadre’s decision making with a DE&I lens.

1.

Provide DE&I training to raise awareness andhelp create a more inclusive culture

2.

Introduce a program for employees with disabilities to ensure equity of access to recruitment,
career development, promotion, training, andother employment opportunities for all staff

3.

Introduce DE&I considerations to the recruitment process

4.

Bring the ratio of women in management
positions (senior manager level and above) at
the Spiber Group to at least 30% by 2025

DE&I Working GroupIn early 2022, a group of employees initiatedthe “DE&I Working Group”, an internal community passionate about participating in DE&I
discussions, which was the precursor to thelater-formed DE&I Team, established under our
Human Resources Section in June 2023.

New Healthcare Leave allowance
In 2023, the DE&I Team proposed and initiateda new paid Healthcare Leave allowance, which
provides 12 days of additional paid leave
per year to menstruating individuals. The
team is currently working towards eventually
expanding the allowance’s scope to serve as
sick leave for all individuals.

Diversity seminar
The team conducted its first DE&I Lecture
as part of Spiber’s biannual company-wide
information sessions, with DE&I-related content
being reflected in the existing harassment
prevention seminar, introducing example casesof LGBTQ+ and racial discrimination at work,and promoting the importance of providing
support for non-Japanese speakers at Spiber.

“Job Coach” certification
Before the initiation of the DE&I Team, two
Working Group members acquired the Japanese“Job Coach” certification to provide professional
assistance and training for employees withspecial needs.

Improvement of hiring procedures
Spiber plans to start implementing DE&I in
our hiring process by posting policies on DE&I
hiring procedures on our website and making
necessary changes to job descriptions andcandidate screening approaches.

EquityThe team conducted the first company-wide
DE&I survey, revealing a significant perception
gap on a number of issues between male andfemale employees. This result has prompted agoal to increase the ratio of women in senior
management positions to 30% by 2025. Despite
women constituting 40% of Spiber's workforce,the current ratio of women in senior manager
positions and above is only 11%.

Our participatory approach to DE&I

Spiberemployees

DE&I
Working Group

DE&I Team

Executives andthe Board

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A word from DE&I Team Manager“In Japan, new laws and regulations surrounding
diversity, equity, and inclusion are now being adopted
and enforced—however, in reality, the concept of
DE&I seems still relatively new to many Japanese companies. Spiber is a company with offices worldwide
and with 10% of the headcount in the Japan head
office coming from overseas. As a company that isdedicated to realizing sustainable well-being throughmaterial innovation, it is only natural that we begin
strengthening our focus on DE&I. Since this represents
a different area from our core R&D activities which
we have been dedicated to for over 15 years,

one of the DE&I Team’s major tasks is to foster
internal understanding and raise awareness levelsof these issues throughout the company. To achievethis, we prioritize gathering information, deepening
our knowledge, and undergoing internal andexternal assessments. We are currently reaching out
to employees in need of DE&I support while working
on specific projects such as B Corp certification,
increasing female leadership, and hiring individuals
with special needs. We intend to proceed rapidly
but with a careful and thoughtful approach, valuing
opportunities for internal dialogue.”

Chisa Uehara

DE&I Team Manager,
Spiber Inc.

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4. Sourcing

Our commitments

Our progress

Identify potential non-edible feedstocks

In addition to textile waste, we have also been conducting trials on the use ofbagasse-based sugars as feedstock for our mass production process in Thailand.
We have seen promising results in these trials and are working on optimizationof the process to enhance output quality.

1.

Develop processes to utilize various types ofagricultural waste and by-products as feedstock2.

Replace at least 50 tonnes (dry weight) of
sugarcane sugar with non-edible, biomass-based
sugar as feedstock annually for Brewed Protein™
polymer production in Thailand by 2026

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Integrity

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Integrity

Our commitments

We strive to ensure that our values are embedded in the way we operate ourbusiness and the approaches we take when sourcing our raw materials.

1. Greenhouse gas emissions and energy

2. Sourcing

Measure and disclose our carbon footprint, including
both direct emissions and those from our supply chain

Define and identify strategy to source sustainable
materials

1. Use 100% renewable electricity through direct
use and support for construction of new
facilities for renewable electricity generation
aiming for 2025, and at the latest by 2027

1. Increase number of suppliers that adhere to our
Sustainable Sourcing Policy
2. Increase traceability within our supply chains
3. Implement methods and activities to reducesocial and environmental impact within our
supply chains
4. Identify risks within supply chains through
Human Rights Impact Assessment (HRIA) by Q2
2023
5. Implement and communicate an anonymous
grievance mechanism that can be used by all
stakeholders

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1. Greenhouse gas emissions and energy

Our commitment

Our progress

Measure and disclose our carbon footprint,
including both direct emissions and those fromour supply chain

We made our first voluntary submission to the Carbon Disclosure Projectin 2023 for our 2022 activities. See our GRI index for details on our directemissions (Scope3 1 and 2) for the year 2022. We plan to continue submitting our information to CDP annually, including at least four categories of
Scope 3 from our 2023 activities.

1.

Use 100% renewable electricity throughdirect use and support for constructionof new facilities for renewable electricity
generation aiming for 2025, and at the latest
by 2027

We are continuing to monitor opportunities for renewable energy procurement with additionality in the countries in which we operate.
Renewable energy
In the meantime, since the beginning of 2023 we have started procuring
renewable energy certificates in equal amounts to our electricity usage
in Japan and Thailand. While we are aware that certificates, given theirover-supply relative to demand, can have limited direct impact4 on theworld, we do believe that this is a way that we can signal our demand to
renewable electricity developers in Japan and Thailand.
As we engage with our supply chain in a rally for action on these issues,
it is crucial that we first take action ourselves. Moving forward, we hope
to continue to improve the quality of the renewable electricity we arepurchasing while making use of the options we have today.

3 Scope 1 emissions are emissions directly from our operations.
Scope 2 emissions are indirect emissions from the generation of energy we buy, i.e., the electricity we purchase.
Scope 3 emissions are indirect emissions from our value chain.

4 Spiber is currently purchasing unbundled environmental attribute certificates (iRECs in Thailand and non-fossil fuel certificates with tracking in Japan).
We acknowledge that use of such unbundled credits is not the most direct path to drive global reduction of greenhouse gasses (source), and we are actively following developments related torenewable energy procurement options with the intention to identify and transition to more impactful sources of renewable electricity in the future.

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2. Sourcing

Our commitment

Our progress

Define and identify strategy to source sustainable
materials

More than 80% of our upstream suppliers for our plant in Thailand havesigned our Sustainable Sourcing Policy. Collecting signatures for our policy
is an ongoing effort as it requires a balancing of interests for some of our
suppliers, but we are determined to continue working towards this goal.

1. Increase number of suppliers that adhere to our
Sustainable Sourcing Policy

UPSTREAM PROCESS

Procurement of raw
materials including
agricultural feedstock

SPIBER’S PROCESSPolymer
production

DOWNSTREAM PROCESSES

Fiber
spinning

Textile processing including yarn/
fabric production and dyeing/finishing

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Our commitments

Our progress

2. Increase traceability within our supply chains

Importance of traceability

Screening-level Human Rights Impact Assessment

Anonymous grievance mechanism system “SpeakUp”

3. Implement methods and activities to reduce socialand environmental impact within our supply chains

We are collecting data from our downstream
supply chain—i.e. the textile processing, yarn, andfabric companies that we work with—to develop
yarn and fabric products. We are beginning to
make this information accessible to our customers
in the form of product pages with key traceability
information such as the names and locations of our
suppliers and the various physical and chemical
inputs that go into making our products (see an
example here).

We conducted a screening-level Human Rights
Impact Assessment which consisted of screening
geographies and industries represented in our
upstream supply chain using a number of intergovernmental and NGO-operated human rights risk
databases and expert consultation.

To increase direct engagement with our supply
chain, we recently implemented an anonymous
grievance mechanism system called SpeakUp.
This service can be used by all stakeholders in our
supply chain, including workers in our upstream
supply chain and communities living aroundproduction sites.

4. Identify risks within supply chains through
Human Rights Impact Assessment (HRIA) by Q2
2023
5. Implement and communicate an anonymous
grievance mechanism that can be used by all
stakeholders

We recognize the importance of traceable supply
chains and transparent disclosure in order todetermine the negative and positive impact of our
products within the value chain and their handlingat the end-of-use stage.
We are glad to see policy in European countries
shifting towards making collection and communication of product manufacturing data mandatory
for retailers and brands in the apparel and textile
industry. We aim to encourage our supply chain
to prepare for these changes by having increased
dialogue with our suppliers in order to disseminate
the importance of traceability.

We recognize that our sugar supply chain in Thailand is a relatively high risk-prone portion of our
supply chain as compared to other raw materials
that we source.
We are now engaging with our key suppliers to
identify and further understand our salient humanrights risks in order to mitigate the issues within
our supply chain going forward.
We are now a Bonsucro Chain of Custodycertified company, providing assurance that oursugarcane-related sustainability claims can betracked along the supply chain, from end to origin.
In addition, the sugar we procure for our fermentation
process in Thailand is from a Bonsucro-certified
sugar mill.

We also facilitated training sessions with relevant
employees who will help with issue resolution withworkers or other stakeholders who report grievances using this mechanism. Through this approach,we were able to better understand the accountableauthorities for various issues and create scenarios
to help determine grievance redressal.

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A word from Bonsucro

Rafael Marques Seixas

Senior Membership Manager,
Bonsucro“For the past three years Bonsucro has learned a lot
about the promising role of sugarcane in innovative
solutions to the textile sector. This is quite a newmarket and like other biomaterial sectors, an important opportunity for replacing fossil-based materials
and for value creation in agricultural supply chains.
Nonetheless, it is critical that new biomaterials are
made with sustainably produced crops, promoting
best social and environmental practices.

Spiber has been a Bonsucro member since 2020 andtheir team has worked to implement Bonsucro’s Codeof Conduct and to achieve Bonsucro Chain of Custody
Certification, effectively becoming the first Bonsucro
certified company in the textile and apparel industry
and opening the door for the use of sustainably
sourced sugarcane materials in clothing throughproducts made with Brewed Protein™ material.
We are very excited about this new market for Bonsucro
certified sugarcane and congratulate Spiber’s teamfor their commitment and leadership.”20

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Furusato Nozei (Hometown Tax)

In 2022, Spiber participated in the Furusato Nozei(“Hometown Tax”) program through which the cityof Tsuruoka (where Spiber’s headquarter is located)
offered T-shirts that contain Spiber’s Brewed Protein™
fiber to Japanese taxpayers in return for donations,with a promise to use one-third of the donation
revenues towards the development of child-oriented
services and infrastructure in Tsuruoka.
We also shared traceability information about pointof origin, processing, and other production steps
for consumers to access via a scannable QR code.
This product is designed to showcase our commitment to a sustainable, circular economy and tocontribute to building better infrastructure for
future generations.
Read more about the project here.

+

Integrity

Spiber Inc.

234-1 Mizukami Kakuganji Tsuruoka, Yamagata 997-0052, Japanwww.spiber.inc/en

Spiber and Brewed Protein™ are trademarks of Spiber Inc., registered in Japan and other countries.
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