RAWRESPONSIBILITYSUSTAINABILITY REPORT 2023

WHAT’S INSIDE?

ABOUT THIS REPORT

05

Other reads

06

Sustainable Supply Chain Handbook

06

Sustainability Milestones Overview

06

Transparency Tools

06

G-Star’s Policies

06

Acronyms

06

Contact

06

LETTER FROM OUR CEO

07

RAW RESPONSIBILITY

08

RAW RESPONSIBILITY APPROACH

09

About G-Star

09

About RAW Responsibility

09

Internal Cooperation

10

External Partnerships & Stakeholder Engagement

112023 HIGHLIGHTS

12

SUSTAINABILITY STRATEGY
15

Goals & Ambitions

15

Policies & Requirements

17

Risk Assessment

17

Transparency

17

Higg Brand & Retail Module ( Higg BRM )18

TRANSPARENT SUPPLY CHAIN

19

Where it is made19

Vendor Scorecard

20

Supplier Conference

20

INDEX

SUSTAINABILITY REPORT 2023

— 02

SUSTAINABILITY STRATEGYPEOPLEPEOPLE

22

SAFEGUARDING WORKERS’ RIGHTS

23

Continuous monitoring for improvement

23

Key fair supply chain indicators

24

Evaluating supplier performance25

Strengthening workers’ voice

25

WORKING TOWARDS LIVING WAGES

26

Wages in our supply chain

26

Purchasing Practices

27

Reviewing our purchasing practices

28

Project: Supporting cotton farmers in India

29

DIVERSITY & INCLUSION30REFLECTIONS ON 2023

31

PLANET
Monitoring environmental performance
CLIMATE CHANGE

34
34
35

Science Based Targets

352023 Carbon Footprint Calculations

36

Scope 1 & 2

37

Scope 3

39

Energy Consumption ( G-Star own operation )44

Energy consumption in the supply chain ( Tier 1 & 2 )44

Decarbonisation of the supply chain

45

WATER MANAGEMENT

46

Water Risk

47

Water Usage47

Our Other Company Initiatives on Waste

48

— 03

48

Tackling Supplier Waste

48

Climate Neutral Delivery

50

SUSTAINABILITY REPORT 2023

WASTE & PACKAGING

Eliminating Chemicals & Chemical Pollution

50

Zero Discharge on Hazardous Chemicals ( ZDHC )50

ELIMINATING CHEMICALS & CHEMICAL POLLUTION

51

Zero Discharge on Hazardous Chemicals ( ZDHC )51

Supplier Detox Program

53

REFLECTIONS ON 2023

54
INDEX

PLANET

PRODUCTPRODUCT

56

Responsible Materials

56

Our materials portfolio

57

A CLOSER LOOK AT OUR KEY MATERIALS

58

Cotton58

G-Star’s approach towards the Better Cotton Initiative

58

Polyester

59

Elastane

59

Polyamide

59

Animal-derived Fibres

60

Man-Made Fibres

60

Responsible Materials Ranking

60

OUR CIRCULARITY JOURNEY

61

Cradle to Cradle Certified™ innovations

61

REPAIR: Certified Tailors Program

62

REWEAR: G-Star Rewear Program

62

UPCYCLE: G-Star x (di)vision

62

RECYCLE: Return Your Old Denim

62

INNOVATIVE PRODUCTION PROCESSES

63

Raw for the Planet – Indigo

63

Dry Indigo® technology: Foam Dyed Denim

63

The minerals Movement

63

Back to Basics: Undyed, Unbleached and Unwashed

64

Designing with AI

64

Exploring New Territory: Homegrown Cotton

64

REFLECTIONS ON 2023

65

PHILANTHROPY

67

Education

67

Entrepreneurship

67

APPENDICES
Appendix A

70

Appendix B

72

Appendix C

73
INDEX

SUSTAINABILITY REPORT 2023

— 04

PHILANTHROPYABOUT THISREPORT

Every year, G-Star publishes a sustainability report, reflecting G-Star’s
performance on key environmental and social priorities and our
implementation of due diligence within our value chain. Due diligence,
as defined by the Organization for Economic Cooperation andDevelopment (OECD), is the process enterprises should carry out toidentify, prevent, mitigate, and take accountability for actual andpotential 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 methodologyof the OECD. The risk assessment is a key part of our due diligenceprocess and guides us in forming and strengthening our Sustainability
Strategy and priorities.

INDEX

SUSTAINABILITY REPORT 2023

— 05

This report focuses on the sustainability progress made in 2023, theplanned actions for 2024, and our long-term goals and ambitionsfor 2025 and 2030.

Sustainable Supply Chain Handbook
This Handbook explains our due diligenceprocess that identifies (potential) risks andincludes G-Star’s Compliance Policy, a detailed
supply chain explanation, our sustainability
monitoring tools and process, our supplieronboarding process, and our Supplier
Development Program.

Sustainability Milestones Overview
This document shows our sustainability journeysince 2006.

SUSTAINABILITY REPORT 2023

— 06

Transparency Toolso Manufacturing Map: This tool shows all direct
suppliers with whom G-Star has had abusiness relationship for over 2 years.
o Responsible Materials Ranking: This toolscales our fibres from sustainable to notsustainable.

G-Star’s Policieso G -Star Supplier Code of Conduct– Social & Labour Guidelines– Environmental Guidelineso G -Star Materials Policy &Animal Welfare Policy
o Modern Slavery Act
All downloads can be found here.
Explore our RAW Responsibility webpage to findout more about up-to-date actions regarding
our Sustainability Strategy.

ACRONYMS
ACT

Action, Collaboration,
Transformation

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

OCA

Organic Cotton Accelerator

OECD

Organisation for
Economic Cooperation
and Development

SDGs

Sustainable Development
Goals

SLCP

Social & Labor Convergence
Program

ZDHCZero Discharge ofHazardous Chemicals

CONTACT
If any comments or questions arise after
reading this report or related G-Star
documents, or if you want to raise any
related concerns, please contact us at
cr@g-star.com or at:
G-Star RAW C.V.
Attn.: Sustainability Department
Joan Muyskenweg 39, 1114 AN
Amsterdam, The Netherlands

INDEX

Other reads
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.

LETTER FROM OUR
CEOLooking back at 2023, it was a year marked by geopolitical andmacroeconomic challenges, affecting consumer confidence andshopping behaviour globally. Nonetheless we were able to prioritize our
responsibilities 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 inworking conditions and actual garment-making. That is why we invited ourworld class sourcing partners for some quality time at our headquarters in
Amsterdam. We spent two days together to connect, align, and define how
we can progress our collaborations in a responsible way.
When it comes to the materials we used in 2023, 95% of all materials wasorganic, recycled, regenerative, bio-based, compostable, or sourced via the
Better Cotton Initiative. Our partnership with Organic Cotton Accelerator
resulted in the support of 125 famers in India, by sourcing directly fromthem.
Circularity is one of the ongoing big themes that we continuously aim tofurther implement in every phase of the G-Star product lifecycle. This year
we were able to add another initiative to our REPAIR REWEAR RECYCLE
strategy, introducing a second-hand platform on G-Star.com, allowing ourcustomers to buy and sell old G-Star favourites and reduce our impact
together. Our REWEAR platform was first piloted in The Netherlands, andafter that successful launch we are now looking to expand this service toadditional European markets.

To guarantee ongoing progress on both social and environmental topics,
we continue to deeply embed sustainability into our overall strategic
business priorities for the years to come. There is still so much work to bedone, and to get there we need to even further expand deep knowledge
on sustainability throughout our teams but also continue to educate
and support our suppliers, partners and customers so they are fully
empowered and equipped to do their part. We are looking forward to
taking the next steps!
Rob Schilder.
INDEX

SUSTAINABILITY REPORT 2023

— 07

On the topic of climate, we are happy to share that our official Science
Based Targets were approved, reducing our Scope 1 and 2 emissions with
42% by 2030. In support of these targets, we started a carbon leadershipprogram, aimed at supporting our suppliers in decarbonization. Regarding
chemical management we were proud and humbled to achieve the highest
level of ZDHC implementation performance.

— 08

INDEX

RAW RESPONSIBILITYSUSTAINABILITY REPORT 2023

RAW
RESPONSIBILITY
APPROACH
About G-Star
G-Star is dedicated to the cloth, the craft
and the culture of denim since 1989. It has aunique position as a progressive denim brand,
creating the future of denim. G-Star is driven bycreativity, constantly turning ideas into denim,
while consistently following their own distinctive
path. The premium denim brand operates
worldwide with a focus on the United States,
Europe, Japan and South Africa.

About RAW Responsibility
Sustainability is key to how we operate at G-Star.
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.

Our ambition is to produce our products in the most responsible way, for the future of fashion.
We do this by improving our social and environmental impact across our complete value chain,from farm to factory to store to end-of-life. This is our RAW Responsibility journey.
Our journey is focused on three pillars: PEOPLE, PLANET and PHILANTHROPY, along a foundationof transparency.

PEOPLE

WORKERS’
RIGHTSFAIR WAGESPLANET

CIRCULARITYSUSTAINABLE
MATERIALS

PHILANTHROPY

CLIMATECHANGEPOLLUTIONPOSITIVE IMPACTPEOPLE

PLANET

PHILANTHROPY

It is our priority tosafeguard fair, safeand healthy working
conditions, as well asprotect the human rightsof the people working for
G-Star and the people thatwork in our supply chain.

We produce and operate
responsibly by selecting
the most sustainableproduction processes
and resources, and drive
excellent performance inclimate adaptation andwater management.

We want to make apositive and lasting impact
on the lives of people incountries where G-Star
produce. Through the
GSRD Foundation we
provide education andstimulate entrepreneurship
through philanthropic
efforts, including training
and coachingINDEXSUSTAINABILITY REPORT 2023

— 09

TRANSPARENCY

Internal Cooperation
Our Sustainability Department implements G-Star’s Sustainability Strategy within and beyond
our own operations. The team specializes in social and environmental sustainability across the
supply chain and has a presence in the Netherlands and Asia. It is their responsibility to define andimplement the Sustainability Strategy by integrating the sustainability work throughout our own
organization.
The departments that help manifest our Sustainability Strategy include Design, ProductDevelopment, Merchandise, Purchasing & Pricing, Quality Assurance, Sourcing, Logistics, Marketing,and Communications. Sustainability is an integral part of our overall business strategy and a shared
responsibility of the whole organization. Our Sustainability Strategy is translated into team andindividual goals across the abovementioned departments; the figure below shows how we work
collaboratively to bring our Sustainability Strategy together.

Sustainability
Department

defines and implements our
Sustainability Strategy
Transparency

DesignPoduct Development

are committed
to goals
related toMarketingCommunication

Circularity

Sustainable Materials

Merchandise

Sourcing

supportuses the Higg
Index tools
to analyse
supplier
performanceon

Climate Change

contribute toachievinggoals
related to

Logistics

collaborateclosely on

Purchasing & Pricing

RetailPollution

Workers’ Rights

Fair Wages

Quality AssuranceINDEXSUSTAINABILITY REPORT 2023

— 10

are contributing toExternal Partnerships & Stakeholder Engagement
G-Star collaborates with a number of stakeholders to help define and develop our sustainability
strategy. The overview below demonstrates how these partners and stakeholders are involved at
a strategic level.

Organic Cotton Accelerator

Policy Hub

works on
Advocacywithworks onSustainable
Materials
with

Textile Exchange

Better Cotton
Initiative
Dutch Cotton &Wageningen University

Fashion Revolution

Open Supply Hub

ACT on Living Wages

Social & Labor
Convergence Program

International ACCORD

works onTransparency
withworks onCircularity
withworks onFair Wages
withworks onWorkers’
Rightswith

Cradle to Cradle Products
Innovation InstituteFaume

UN Fashion Charter

G-Starworks onClimateChangewith

Science Based
Targets Initiative

RESET Carbon

works onPollution
with

ZDHC

monitors and reports with the help of

CascaleINDEXSUSTAINABILITY REPORT 2023

— 11

Higg Index Tools

2023
HIGHLIGHTSREVISE ?
Please find beter examples

Successfully dyed denim
without water using

FOAM DYEINGTECHNIQUES and dyed
denim using natural minerals.

SUSTAINABILITY REPORT 2023

— 12

We introduced 74 different
Cradle to Cradle certified®
styles, as well as 270 different
products with Cradle to Cradle
certified® fabric.

Started collaboration with
Wageningen University &Research to explore how

GREENHOUSE
COTTON GROWING
could help drastically reducethe impact of cotton growing
worldwide.

95% of the materials weused were organic, recycled,
regenerative, biobased,compostable, or sourced
through the Better Cotton
Initiative (mass balance
principle).

We achieved

BRAND LEVELCERTIFICATION for

Organic Content Standard andGlobal Recycling Standard.

Started a CARBONLEADERSHIPPROGRAM for supply
chain andsupported six suppliers on
decarbonization.

INDEX

We launched a RESELL
PLATFORM, a new
option to prolong the lifeof garment, adding to ourexisting efforts of free repairs,
lifetime warranty and return forrecycling.

Achieved the highest
level of ZDHCIMPLEMENTATIONPERFORMANCE inchemical management andsupply chain practices, being
awarded the title of ZDHCChampions.

We REDUCED OURSCOPE 1 AND 2
EMISSIONS BY 42%,
meeting our Science Based
Targets for Scope 1 and 2.
We reduced our Scope 3
emissions by 13%.

Supported 125

FARMERS IN INDIA

by sourcing organic cotton
directly from farms and paying
premiums through Organic
Cotton Accelerator.

Organised a face-to-facesupplier conference witha focus on our RAW

RESPONSIBILITYSTRATEGY and sharing

INDEX

SUSTAINABILITY REPORT 2023

— 13

industry best practices onsustainability.

— 14

INDEX

SUSTAINABILITY STRATEGYSUSTAINABILITY REPORT 2023

SUSTAINABILITYSTRATEGY

Our long-term focus within our RAW Responsibility strategy includes key sustainability priorities
specified in goals for 2025 and 2030.
Our goals and ambitions are built upon internationally recognized human rights guidelines andstandards, such as the International Labour Organization (ILO) Core Conventions and the United
Nations Universal Declaration of Human Rights. In addition, they are founded upon our risk
assessment covering the different phases of our value chain as well as the data we collectedworking with different industry partners and tools. For example, the Higg Index tools of Cascale
and the programs of Zero Discharge of Hazardous Chemicals (ZDHC) have ensured that we canmeasure and track impact and scale our strategy across our value chain.
This Sustainability Report reflects our annual progress and achievements, within our business
operations and across our value chain.

Goals & Ambitions

PEOPLEPRIORITY

GOAL

Workers’ Rights

Elevate and improve fair, safe and2025 Strengthen workers voice byhealthy working conditions in G-Star’soffering a complaints system including

supply chain.

fair terms, anonymous accessibility,
process for complaints handling andcapacity building to workers in at least
30% of production countries.

2030 Realize fair, safe and healthy
working conditions for all workers in

Fair Wages

Collaborate industry wide through2025 Realize effective wage

‘ACT on Living Wages’ to improve

management systems that classify

wages at both industry and country

jobs according to skill level and pay

level.

workers according to their competence
in strategic factories in Bangladesh

Ensure that G-Star’s purchasing
practices enable the payment of fair

2030 Actively support ACT towages.

realize 2 country and/or industry wide
wage improvements with the end goal

Support suppliers to implement

to decrease the wage gap between

effective wage management systems

paid wage and living wage.

that classify jobs according to skill
level and pay workers according totheir competence.

INDEXSUSTAINABILITY REPORT 2023

— 15

G-Star’s supply chain.

PLANETPRIORITYGOAL

Climate Change

Reduce GHG emission by switching2025 Reduce 15% of GHG emissions

to renewable energy, using more(base year 2021).

sustainable materials and increasing

Pollution & Waste

the use of low energy-intense

2030 Reduce 42% of GHG emissions

production methods.

(base year 2021).

Ensure the continuous ban of2030 Achieve 100% low impact

hazardous chemicals in G-Star’s supply

chemical applications (Cradle to Cradle

chain.

approved chemicals and/or ZDHC level2 & 3 chemicals) in G-Star’s products.

PRODUCTPRIORITYGOAL

Sustainable Materials

Increase the use of sustainable

2025 Ensure 75% of the materials

materials by partnering with innovativein our collections are regenerative,

suppliers and initiatives that transform

recycled, organic, bio-based and/or

and/or innovate conventional andcompostable.

virgin materials.

2030 Ensure 100% of the materials
in our collections are regenerative,
recycled, organic, bio-based and/or
compostable.

Circularity

Design for durability and recycling to2025 Ensure 20% of G-Star’s

extend the life of G-Star’s products

collection is made with Cradle toand offer solutions for re-use, remake

Cradle Certified® fabrics.

or recycling.

2030 Ensure 1.000.000 jeansrepaired, reused or recycled.

SUSTAINABILITY REPORT 2023

— 16

Transparent business& supply chain

PRIORITY

GOAL

Report on G-Star’s sustainability

2025 Achieve full productperformance through a verified

transparency on fibres, lower impact

industry benchmark (Higg Brand &production processes, certifications,

Retail Module).

recyclability and manufacturing unit on
all G-Star products.

Offer full product transparency onlower impact fibres and production

2030 Achieve 100% traceability, up

processes, certifications, recyclability

to the raw materials that were used.

and manufacturing units through adeveloped claims framework.

INDEX

SUPPLY CHAIN
TRANSPARENCYPolicies & Requirements
At the base of our Sustainability Strategy we have multiple policy documents to uphold our RAW
Responsibility. We developed the G-Star 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. We continuously monitor and collaborate with our suppliersand external industry experts, to uphold these standards, improve where needed and conduct ourdue diligence. How we do that is explained in our Sustainable Supply Chain Handbook.
An overview of all policy documents can be found here.

Business Ethics
Social & Labour Guidelines

Material & productMaterials Policy & Animal Welfare policy

Environmental Guidelines

Restricted Substances List (RSL)
Manufacturing Restricted Substances List
(MRSL)

Risk Assessment
Over the past year, we have implemented and strengthened our updated Sustainability Strategy
and further built upon the OECD risk assessment that 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 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
our sustainability strategy moving forward. Our risk assessment can be found in Appendix A andis updated annually, or whenever significant changes occur in our operations, our supply chain orwithin regulations that might have an impact on sustainability risks.

Transparency
To deliver on our strategy, we enable external stakeholders to hold us accountable when it comes toassessing 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 Cascale (formerly known as the Sustainable Apparel Coalition).
This is a global sustainability measurement performance tool in the apparel and footwear sector.

INDEX

SUSTAINABILITY REPORT 2023

— 17

G-Star’s 2019 Sustainability Report was our first report that integrated the OECD Due Diligence
Guidance for Responsible Supply Chains in the Garment 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 2023 Sustainability
Report reflects on our achievements in 2023 and projects our actions for 2024.

Higg Brand & Retail Module ( Higg BRM )G-Star completes the Higg Brand & Retail Module (BRM) on an annual basis. The BRM is a selfassessment questionnaire made up of 383 questions to evaluate environmental, social and labour
performance across a brand’s management systems, stores, brands, operations and logistics.
Our Sustainability Strategy translates the key Higg BRM topics into actions and goals to improve
our sustainability performance over time.
2023 is the fourth consecutive year we have completed the Higg BRM. In 2023 Cascale released
a major update to the BRM to more effectively deliver on industry needs and drive positive impact.
The updated tool features a new assessment structure and updated methodology, underpinned bya due diligence approach. A brand’s total score now consists of three separate scores that represent
the overall points achieved across the entire questionnaire for all environmental,social and governance questions.
We asked an external 3rd party (TUV Rheinland) to verify our assessment as a pilot. This means
documental evidence is analysed and G-Star employees from different departments are personallyinterviewed. G-Star was one of eight brands that participated in this verification pilot.

SECTION

SUB-SECTIONVERIFIED SCOREENVIRONMENTAL

Total

54.2

General Environmental

80.4

Biodiversity

16.7

Climate

61.4

Water

19.1

Chemicals

92.5

Waste

54.7

Total

59.8

General Social

73.6

Workers

68.1

Employees

35.3

Consumers

47.3

Communities

81.3

Total

42.5

General Governance

23.4

Structure & Management

15.6

Ethics & Behaviour

77.7

SUSTAINABILITY REPORT 2023

— 18

SOCIAL

GOVERNANCE

INDEX

The Higg BRM verification process granted us an even better understanding of the efforts we needto take to improve our Higg BRM sustainability performance. We have engaged with all relevant
departments about our Higg BRM performance and determined which topics to prioritize for
improvement in the coming years.

TRANSPARENT
SUPPLY CHAIN

G-Star does not own any production factories,
therefore we rely on our business partners (oursuppliers) for high quality production. Providing
oversight of the supply chain is part of ourcommitment to the apparel sector. Eight years
ago, we made our Manufacturing Map public– so anyone can trace the origin of a G-Star
product, now covering approximately 95% of our
production volume (this differs per season) andshowing all Tier 1 suppliers that we have beenworking with for over 2 years. In addition to themap, we publish further details on our direct
suppliers, their sub-factories, processing facilities
and nominated fabric mills in our Manufacturing
List. This is also available on the Open Supply
Hub, an open source tool that maps garment
factories worldwide.

SUPPLIER RELATIONSHIP LENGTH( TIER 1 )Our Manufacturing Map and Manufacturing List
also offer background information such as thetype of product produced and number of maleand female workers.

0 – 2 YEARS

14%
30%
28%

28%

2 – 5 YEARS
5 – 10 YEARS>10 YEARSINDEXSUSTAINABILITY REPORT 2023

— 19

Where it is made

Vendor Scorecard
The objective of our scorecard is to monitor, evaluate and incentivize suppliers to improve theirpractices. It also acts as a tool to support our teams in selecting existing and new suppliers.
The vendors are scored based on indicators such as research & development, cost effectiveness,
speed, quality, delivery time and social and environmental benchmarks. These benchmarks are
based on the programs and tools explained in the PEOPLE and PLANET chapters.

Social Benchmarko Higg verified FSLM data and/or third-party
audit scoreo Active independent uniono Serious breaches of G-Star Code of Conduct

Environmental Benchmarko DETOX Input reporto DETOX Process reporto DETOX Output reporto Higg verified FEM datao Science Based Targets
o Zero direct coal usedo Uses renewable energy sourceso Uses recycled water in processesINDEXSUSTAINABILITY REPORT 2023

— 20

Supplier Conference
In April 2023, we invited all our world class suppliers for some quality time at our headquarters in
Amsterdam. Our partners Cascale, Cradle to Cradle Products Innovation Institute and the ZDHC
Roadmap to Zero Programme also joined the event. We spent two days together in order to connect,align, and define how we can progress our collaborations in a responsible way.

— 21

INDEX

PEOPLESUSTAINABILITY REPORT 2023

PEOPLEOur social responsibility strategy is focused on achieving fair, safe and healthy working conditions
for our own employees and for the people working in our supply chain.
People are the foundation of our collective success, which is why we prioritize the well-being ofindividuals within our company and across our supply chain.

INDEXSUSTAINABILITY REPORT 2023

— 22

We do this by engaging in key industry partnerships and multi-stakeholder initiatives. Through ourapproach, we have a clear understanding of the social risks in our supply chain, and we focus on
safeguarding worker’s rights and enabling fair wages at industry and country level. In addition,
we look into diversity, inclusivity and equality within our own operations and within our supply chain.

SAFEGUARDING
WORKERS’ RIGHTS

We work closely with our supply chain partners to improve fair, safe and healthy working conditions
in our supply chain. We deliberately work with a limited number of suppliers to ensure high quality
and continuity in our sustainability initiatives. Although the factories are owned and run by others,
G-Star feels responsible to positively contribute to the labour and environmental conditions on site.
Our social framework includes supplier development tools to support direct and indirect suppliersconsistently in applying high labour standards based on the G-Star Supplier Code of Conduct.
This framework consists of:o Use of the Social and Labor Convergence Program (SLCP)o Higg FSLM and other social standardso Development and implementation of a complaint systemo Supplier trainings and other supplier social development programsContinuous monitoring for improvement
In order to uphold our standards and work on necessary improvements, we continuously monitor
and collaborate with our suppliers and external industry experts. G-Star is a signatory of theSocial and Labor Convergence Program (SLCP). The mission of this project is to implement a
common assessment framework to measure improvement in working conditions. They do this bygenerating comparable and verified high-quality data that increases the opportunity for transparency
and eliminates audit fatigue. Up to date, the Higg Facility Social & Labor Module (Higg FSLM) and
Better Work assessment both make use of the SLCP framework for monitoring.

INDEXSUSTAINABILITY REPORT 2023

— 23

We use the assessments to monitor the facilities we work with on whether working conditions, suchas health & safety, freedom of association, remuneration and working hours are in line with our
Code of Conduct and identify improvement opportunities. Better Work also makes use of the SLCP
frame In our Sustainable Supply Chain Handbook we explain in more detail how the information fromthe Higg FSLM is analysed and used to monitor our suppliers.

MONITORING PROGRESSSSTATUS

Being a signatory of the SLCP, we encouragefactories to complete both the selfassessment and a verified FSLM or Better
Work assessment. If a factory does not havea verified SLCP assessment yet, we also
accept other verified social audit standards
BSCI, SA8000 and SMETA.

In 2023, 99% of our tier 1 production volume
came from CMT factories who performed averified Higg FSLM or comparable third-party
audit.
o 72% was produced at verified FSLM
factories and 24% at Better Work assessedfactorieso 3% of volume came from BSCI and SMETA
audited factoriesIn 2023, 80% of our tier 2 production volume
came from fabric suppliers who have done averified Higg FSLM or comparable third-party
audit.
o 66% was produced at verified FSLM
factories and 8% at Better Work assessedfactorieso 6% of volume came from BSCI, SMETA andWRAP audited factories

We require all our tier 1 factories to have done
a social audit and also expect this from tier 2
and tier 3 suppliers, including trims. For a fulloverview of the social audits per factory, see
our Manufacturing List.

FAIR SUPPLY CHAIN INDICATORS

2023

PRIORITY% of tier 1 factories with worker committee/ worker representatives

67%

Towards 100%% of tier 2 factories with worker committee/ worker representatives

55%

Towards 100%% of tier 3 factories with worker committee/ worker representatives

63%

Towards 100%% of tier 1 factories with Collective Bargaining Agreement

14%

Monitoring% of tier 2 factories with Collective Bargaining Agreement

23%

Monitoring% of tier 3 factories with Collective Bargaining Agreement

13%

Monitoring% of tier 1 factories with digital payment system

81%

Towards 100%% of tier 2 factories with digital payment system

84%

Towards 100%% of tier 3 factories with digital payment system

100%

Towards 100%INDEXSUSTAINABILITY REPORT 2023

— 24

Key fair supply chain indicators
The social monitoring assessments offer us insight into the working conditions on specific risk
categories at our suppliers. We have developed indicators to monitor any changes, starting 2023.
improvement in the coming years.

Evaluating supplier performance
The indicators in the table above are only a fraction of all the data we receive via SLCP assessments
and social audit reports. Together, the data points are scored to our Code of Conduct, or, in the caseof BSCI to the amfori BSCI Code of Conduct. We combine the outcomes of SLCP assessments andsocial audits with key indicators on independent trade union and major social supply chain risks.
If an answer is positive, the score for the factory becomes higher.
The Vendor Scorecard includes both the social and environmental performance of each factory
and/or supplier in one score. Although scoring is not the end-goal of social assessments, it does
offer a way to benchmark our factories and suppliers. This way, we can compare supplierperformances and understand with whom and on which topic we need to intensify our engagement.

Strengthening workers’ voice
The data gained via audits provides a good basis to understand the working conditions, supplierperformance and to identify areas for improvement. However, we recognize that audits are limited
and cannot share the full picture of the situation. It is therefore very important that workers arealways able to raise issues or share feedback on their work situation. In 2021 we carried out a risk
assessment that identified the need for a proper grievance mechanism to remediate worker issues.
As a result, we made a public commitment to improve our complaint systems towards global
independency and confidentiality by 2025 to strengthen worker voices in our supply chain.

INDEXSUSTAINABILITY REPORT 2023

— 25

As we are a signee of the International Accord for Health and Safety in the Textile and Garment
Industry, workers employed in our Bangladesh and Pakistan factories also gain access to the Accord
complaint mechanism. In Mauritius starting 2023, workers now have direct access to the G-Starcompliance team (via phone & e-mail) if they want to raise a concern. Currently we are investigating
new systems and we aim to have a new system in place by end of 2024.

WORKING
TOWARDS LIVING
WAGES
Based on our risk assessment, one of the most important steps to improve fair working conditions
is through wages. In September 2019, G-Star joined the Action, Collaboration, Transformation(ACT) on Living Wages agreement, which brings together global apparel brands, retailers, and theIndustriALL Global Union. The primary goal of this initiative is to secure a living wage for all textile
workers through collective bargaining within the industry. By becoming a part of ACT, we havepledged to implement purchasing practices with our suppliers that ensure fair payment terms, coverwage increases comprehensively, improve forecasting and planning, provide training, and establish
responsible exit strategies. Our 2025 goal is to work towards an industry-wide agreement on regional
living wages and support their implementation in the countries where G-Star production occurs.

Wages in our supply chain
To understand the wages and potential living wage gaps in our own supply chain, from 2021 weinitiated a thorough Wage Gap Analysis at our supplier factories in May 2021 to identify the gap
between the legal minimum wage and the living wages necessary for workers in their respective
areas. We made a public commitment towards an industry wide agreement on regional living wages
and to support implementation in our production countries. In 2022 and 2023, we continued thisanalysis to help monitor wage gap data.
We diligently gathered monthly wage and benefit data from our suppliers and found that prior to
the 2023 minimum wage adjustment, approximately 80% to 93% of workers were already receiving
wages above the legal minimum.
We are committed to continuously improving wages for all workers involved in our production,
ensuring they can meet their basic needs and achieve a decent standard of living. Our production
units pay above the legal minimum wage to guarantee a minimum income that supports not only theworker but also their family, including some discretionary income, all within legal working hour limits.

INDEX

SUSTAINABILITY REPORT 2023

— 26

In Bangladesh, after the new minimum wage gazette was published in November 2023, theBangladesh government finalized the minimum wage at 12,500 BDT per month, up from 8,000 BDT.
We have since continued our follow-up with our supply chain to ensure compliance with the
new wage and understand the difference between the updated minimum wage and the current
living wage.

Purchasing Practices
Purchasing practices are an important part of interaction between brands and their suppliers.
The way we buy from and work with our suppliers can have an impact on the working conditions
at their factories. By joining ACT, we pledged ourselves to the five purchasing commitments thatwill ensure fair terms of payment, full coverage of wage increases, better forecasting and planning,training and responsible exit strategies. With sector common indicators, the ACT accountability andmonitoring framework helps us measure progress towards more equal supplier partnership. We are
improving our purchasing practices with the principles of ACT. For example, we try to plan ahead
as much as possible because if for example a last-minute order is given, or last-minute changes are
made to the design of a product, it is difficult for a factory to plan the schedule for the workers or
manage their production capacity and costs.
Commitment 1 — Brands commit that purchasing prices include wages as itemised costs.
Commitment 2 — Brands commit to fair terms of payments.
Commitment 3 — Brands commit to better planning and forecasting.
Commitment 4 — Brands commit to undertake training on responsible sourcing and buying.
Commitment 5 — Brands commit to practice responsible exit strategies.

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SUSTAINABILITY REPORT 2023

— 27

In 2023 we asked our employees to fill out the ACT Purchasing Practices Self-Assessment (PPSA)
Survey. Parallel to this, our suppliers were asked to fill in the Purchasing Practices Assessment (PPA)
Survey suppliers. The purpose of these surveys is to gain feedback on our purchasing practices
from our own employees as well as from our suppliers. Questions in this survey are related to key
topics such as sourcing practices, forecasting and capacity planning, price negotiation, changes
to order, re-orders 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’t know” as an answer from either our suppliers or own employees. According to ACT a lowscore and a high number of “Don’t know” indicate that action is required in the form of training andimplementation of process improvements. Read more about the content and methodology of the
PPA and PPSA surveys and their global results here.

Reviewing our purchasing practices
Being part of ACT, in 2023 we participated in the second ACT global survey on responsible
purchasing practices. G-Star employees from Product Development, Purchasing and Sourcing,
together with our suppliers, were asked to rate how G-Star performed against ACT’s global
purchasing practices commitments.
Scores from suppliers were generally higher than scores given by G-Star employees. We are working
on improving our scores for each section, by re-evaluating our processes and giving trainings.

ACT 2023 SURVEY
4,4
4,5

Sourcing & Practices
Forecasting & Capacity Planning

4,1

Price Quotations

4,1

4,3
4,3
4,4
4,3

Price Negotiation

4,6
4,6

Product Developement
4,0
4,1

Sampling

4,4

Order Placement
Changes to Orders

4,2

Production & Lead Time

4,2
2,5

Sales & Transparency

4,2
2,9

Training Awareness

3,7
3,7

Buyer-Supplier Relations

4,5
4,3

Strategy & Alignment

G-Star employees

4,5

4,3
3,1

Incentives & Compliance Scoring

4,5

3,4

Terms of Payment

4,7G-Star supplierso 5 is the highest and 0 is the lowest.
o The full ACT survey can be viewed here.

INDEX

— 28

4,5
4,6
4,5

Re-Orders

SUSTAINABILITY REPORT 2023

4,6

Project: Supporting cotton farmers in India
While organic agriculture standards may not always explicitly include decent work or social criteria,
there is a growing recognition of the importance of supporting smallholder farmers and farm workers
in achieving fair working conditions. G-Star has been a partner of the Organic Cotton Accelerator(OCA) since 2021. We actively participate in their multi-stakeholder project, ‘Textile in Transition:
Boosting Transparency and Farmer Livelihoods in Organic Cotton Supply Chains.’ Inspired andinitiated by the Dutch Agreement on Sustainable Garments and Textile, this project aims to foster
industry commitment to improving human rights and environmental protection in the textile industry.
Through this unique partnership, we are taking critical steps to enhance working conditions, secure
the livelihoods of thousands of organic cotton farmers, and promote the regenerative benefits oforganic farming on the environment.
In 2023, the Organic Cotton Accelerator (OCA) developed its first training resource dedicated topromoting decent work at the farm level in India. This initiative represents a significant step in OCA’s
long-term commitment to improving the working conditions and well-being of individuals working onorganic cotton farms in their operational regions. By investing in capacity-building, raising awareness,and implementing monitoring systems, OCA aims to equip their farming partners with the necessary
tools to empower the farming communities within their network. We are proud to support OCA
through our ongoing partnership.

INDEXSUSTAINABILITY REPORT 2023

— 29

First OCA sourced collection
In 2023 we also developed our first collection with cotton sourced from farmers who are part of
the OCA Farm Programme. Around 125 farmers have grown and harvested cotton for our collection,
for which they have received a premium payment. The payments to farmers are digital, which meansthat OCA can verify whether these payments are correct and according to the contract. OCA’s Farm
Programme aims to improve farmer livelihoods by establishing a stable market for their cotton andproviding them with essential training, support, and access to high-quality seeds and other vital
inputs required for organic cotton production.

DIVERSITY &INCLUSION

G-Star is shaped by its people; we all contribute to making G-Star what it is today and what it will
be tomorrow. G-Star believes that our diversity is our strength, and we actively embed inclusion anddiversion in our culture, offices and operations. We find it of utmost importance to have a diverse
and inclusive workplace that makes everyone, regardless of who they are or what they do for thebusiness, feel equally involved, supported and valued.
To review whether G-Star employees feel happy and safe during their work, we conduct an employee
survey on an annual basis which includes questions to measure whether G-Star leadership is
supportive of a diverse and including working environment.
Additionally, we have developed several policies to build a more inclusive and responsible workplace.
These policies include supporting breastfeed during working hours, a flexible work from home andwork abroad policy, a quiet room at the office and parental leave policies. We are continuously
reviewing where we can improve and do better, for example via our employee surveys.
To increase awareness on unconscious biases, G-Star employees are requested to participate in an
online Unconscious Bias training every year. During this training, employees are educated to increaseawareness on their biases and gives them information on how to tackle this. Following up on this,
employees are encouraged to follow a face-to-face training.
In addition, for the coming years we want to focus on gender equality and inclusivity within our
supply chain, at the facilities we source from and their surrounding communities. Equality is an
important enabler of human rights within our value chain, which is why we actively strive for more
inclusion and equality within our value chain, focusing on:
o Gender equality within our supply chain, promoting female rights.
o Health and safety for all workers in our supply chain, including zero tolerance policies andprevention practices of workplace harassment.

FACTORIESFEMALE

MALE% FEMALE

IN 2023% FEMALE% FACTORIESSUPERVISORSOWNED / MANAGED
BY A WOMANTIER 1 (CMT)33.07827.888

54%

40%*

35%*

TIER 2 (FABRIC)

18.96140.999

32%

14%*

28%*

* Data only includes factories that have done a vFSLM.

INDEXSUSTAINABILITY REPORT 2023

— 30

Gender equality can be complex, as cultural differences between countries have to be taken into
account. We therefore will partner up with external expert associations to do this right.

REFLECTIONS ON
2023

STRATEGIC TOPIC2023
ACTION & GOALS

2023 HIGHLIGHTSAND PROGRESS2024
ACTION & GOALS

Workers’ Rights

Adopt Higg FSLM self-

Adopted Higg FSLM self-

Adopt Higg FSLM verified

assessments for Tier 1 CMT

assessments for Tier 1 CMT

assessments or similar

suppliers that represent

suppliers that represented

assessment for Tier 1 CMT

90% of business volume.

96% of business volume.

suppliers that represent

Adopt Higg FSLM verified

Adopted Higg verified

assessments for Tier 1 CMTFSLM assessments for

suppliers that represent

Tier 1 CMT suppliers that82% of business volume.

represent 96% of business

100% of business volume.

volume.

Adopt Higg FSLM self-

Adopted Higg self-

Adopt Higg FSLM verified

assessments at Tier 2

assessments for Tier 2

assessments or similar

suppliers that represent

suppliers that represent

assessment for Tier 2

89% of business volume.

74% of business volume.

suppliers that represent

Adopt Higg FSLM verified

Adopted Higg verified

assessments for Tier 2

FSLM assessments for Tier

suppliers that represent

2 suppliers that represent

72% of business volume.

74% of Tier 2 business

80% of business volume

volume.

Evaluate the functionality

Following the conclusion of

Onboard and implementof the Fair Wear complaint

the Fair Wear project, new

a new grievance systemmechanism in Tier 1

systems were evaluatedto function in selectedfactories within India.

to better meet the needs

factories in minimum 2

Roll out the Fair Wearof workers, suppliers, andcountries.

Complaints mechanism in

G-Star.

Participate in the Textile

Participation in the Textile

Increase direct to farmin Transition: Boostingin Transition: Boostingsourcing by expanding

Transparency and Farmer

Transparency and Farmer

sourcing to one additional

Livelihoods in Organic

Livelihoods in Organic

country and increase

Cotton Supply Chains

Cotton Supply Chainssourcing in India with 20%.

multi-stakeholder project

ongoing. Sourced the firstinitiated by Organic Cotton

direct to farm organic

Accelerator.

cotton through OCA
programs.

INDEX

SUSTAINABILITY REPORT 2023

— 31

at least 1 additional country.

STRATEGIC TOPIC

Fair Wages

2023
ACTION & GOALS

2023 HIGHLIGHTSAND PROGRESS2024
ACTION & GOALS

Cover 100% of Tier 1

In 2023 we opted for a

Cover 100% of Tier 1

factories in our Living

more detailed Living Wagefactories in our Living

Wage Gap Analysis.

Gap Analysis for selected

Wage Gap Analysis.

Tier 1 factories representing
34% of our production
volume.

Disclose the percentage

98% of workers received

Continue disclosing theof workers that receive

wages digitally.

percentage of workers thatreceive payments digitally.

approaches to increase

Explore approaches todigital payment.

increase digital payment.

INDEXSUSTAINABILITY REPORT 2023

— 32

payments digitally. Explore

— 33

INDEX

PLANETSUSTAINABILITY REPORT 2023

PLANET
Our planet is facing environmental challenges, such as climate change, loss of biodiversity andnatural resources, air-, water-, and soil pollution. These challenges affect everyone, G-Star takes
responsibility and tries to limit the environmental impact on our PLANET. We produce and operate
responsibly by selecting the most sustainable production processes and resources, and drive superior
performance in climate adaptation and a positive impact on biodiversity. We do this for our own
operations and, together with our business partners, within our supply chain.

Monitoring environmental performance
The Higg Facility Environmental Module (FEM) allows manufacturing factories to measure theirenvironmental performance, benchmark their results against peers, and identify areas to makemeaningful improvements. It also guides factories through a step-by-step approach to environmental
management. Scores are generated by suppliers and verified by a third-party; results refer to theprevious year, meaning the figure below demonstrates verified FEM scores from 2022.
A total of 67 factories completed the Higg verified FEM providing an average score of 67%. The
score is slightly higher compared to the year of 2020 and 2021. The latest score represents 85% of
our Tier 1 business volume and 70% of our Tier 2 business volume.
In 2024 we will continue the Higg verified FEM assessment as part of our Supplier DETOX Program.
We will aim for an average score above 68% which should cover at least 86% of Tier 1 and 82%
of Tier 2 production volume. This is also in line with the Cascale’s (formerly SAC) membership
requirements surrounding business volume.

AVERAGE HIGG FEM SCORE
100

93
91

90

83

90

90

89

89

83

83

81

80 80
77

80

74
71
69

70

72
69

68
66

64

67
65

61

60

54

53

52
49

48

50

46

50

49

48

47
42 42
40

40

36

36

30
23

10

0
Enviromental
Management
System (EMS)

2018

2018

Energy

2018

2018

Water

Waste

Wastewater

Air Emissions

ChemicalsManagement

Total Score

2018

N.B. FEM results always refer to the previous year, hence this chart refers to 2022.

Looking at this information in a more granular manner, we are able to identify some of the hotspots
in our supply chain and by extent areas of improvement. It is also important to note that the scoresfor the later years represent a higher number of factories, and across all factories, we observe anannual increase.

INDEX

SUSTAINABILITY REPORT 2023

— 34

20

CLIMATE CHANGE

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

Science Based Targets
In July 2019, G-Star signed the UN Fashion Charter and publicly committed to addressing the topic ofclimate change. Read more about the start of this journey here. As a result, G-Star committed to the
Science Based Targets initiative (SBTi), making sure our emission reduction goals align with the latest
climate science and drive us towards meeting the 2015 Paris Accord, on limiting global warming towell below 2 degrees Celsius above pre-industrial levels. In November 2022, G-Star submitted its
carbon reduction targets to the SBTi and the targets were validated in July 2023. The process wascompleted with the support of our partners at RESET Carbon Ltd. and included an in-depth analysis
of our carbon emissions for the year of 2021, which is our emissions baseline year.
With the SBTi target validation, G-Star commits to reduce absolute Scope 1 and 2 greenhouse gas
emissions 42% by 2030 from a 2021 baseline. G-Star also commits to reduce absolute Scope 3
emissions from purchased goods and services and upstream transportation and distribution 42%
within the same timeframe.

INDEXSUSTAINABILITY REPORT 2023

— 35

You can also find G-Star listed on the SBTi website.

2023 Carbon Footprint Calculations
Carbon accounting is broken down into 3 categories defined by the Greenhouse Gas (GHG) Protocol
Corporate Standard: Scope 1, Scope 2 and Scope 3, as can be seen in the figure below. These
definitions are retrieved from the Climate Action Playbook that explains the commitment from theFashion Industry Charter for Climate Change.

GREENHOUSE GASESSCOPE 2
INDIRECTSCOPE 1
DIRECT

purchased
electricity,
steam,
heating& coolingfor ownusepurchased
goods andservices

SCOPE 3
INDIRECT

leasedassetscapitalgoods
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
leased assets
end-of-life
treatment ofsold products

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

Carbon Footprint Ltd. completed the review in accordance with the ‘ISO 14064 Part 3 (2019):
Greenhouse Gases: Specification with guidance for the verification and validation of greenhouse gas
statements’.
Based on the results of their verification process, Carbon Footprint Ltd. found no evidence that the
GHG emissions statement:o is not materially correct and is not a fair representation of the GHG emissions data and informationo has not been prepared in accordance with the GHG Protocol

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SUSTAINABILITY REPORT 2023

— 36

To calculate our carbon footprint, we followed the guidelines 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 and shared these with a third-party verifier, Carbon
Footprint Ltd., who provided a limited assurance verification report.

It is Carbon Footprint Ltd.’s opinion that G-Star has established appropriate systems for thecollection, aggregation and analysis of quantitative data for determination of GHG emissions forthe 2023 period and boundaries.

Scope 1 & 2A total of 110 owned and operated sites were included in G-Star’s inventory for the 2023 reporting
period. The breakdown per site type and location can be found in Appendix C.
In 2023, Scope 1 and 2 emissions amounted to 2.527 tCO2e for location-based emissions and1.860 tCO2e for market-based emissions. Compared to 2022, this represents a 5% increase inlocation-based emissions and a significant 40% decrease in market-based emissions. Relative tothe baseline year of 2021, there is a 21% reduction in location-based emissions and a 50% reduction
in market-based emissions. This is a significant step, as it means that G-Star has already achieved
its Scope 1 and 2 market-based emissions SBTi target and is on a good pathway to meet its locationbased emissions SBTi target with these reductions.
The reductions are mainly driven by the decrease in the number of owned and operated sites andthe reduction in market-based emission factors in the countries where G-Star operates. Looking
ahead, G-Star will also purchase green energy through its energy contracts in various locations.
In the Netherlands, where G-Star has a significant number of sites, green energy will be purchased
starting in 2025 when the current energy contract expires.

SCOPE 1 + 2 EMISSIONS (TCO2E)

COMPARISON
2021

2022

2023

YoY

vs. Baseline

LOCATION-BASED

3.204

2.404

2.527

5%

-21%

MARKET-BASED

3.703

3.089

1.860

-40%

-50%

2023 Scope 1+2 emissions and comparison vs 2022 and baseline year (2021).
Breakdown of Scope 1 and Scope 2 in Appendix C .

In terms of the distribution between Scope 1 and Scope 2 emissions, Scope 2 emissions accounted
for 86% of the total emissions using location-based grid factors and 80% using market-based gridfactors.

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SUSTAINABILITY REPORT 2023

— 37

Purchased electricity made up the largest portion of Scope 2 emissions, accounting for 96% of thetotal when using the location-based calculation method. For Scope 1 emissions, 65% were due tonatural gas combustion, while mobile fuel combustion contributed the remaining 35%.

SCOPE 1 & 2 EMISSION BREAKDOWNLOCATION-BASEDSCOPE 1 & 2 EMISSION BREAKDOWNMARKET-BASED

9%

9%
5%
4%

5%
4%

82%

82%

PURCHASED ELECTRICITY (GRID)
NATURAL GAS
MOBILE COMBISTIONPURCHASED COOLING

Most of the Scope 1 and 2 emissions are attributed to five countries: the Netherlands, Japan, Belgium,
the USA, and Germany. These countries together account for 90% of location-based emissions and
87% of market-based emissions.
In the Netherlands, it was found that three specific sites – the G-Star headquarters and two
warehouses in Amsterdam – collectively accounted for a significant portion of the country’s
emissions, totalling 79%. In the other countries, emissions are driven by the mono-brand andoutlet stores located there.

INDEXSUSTAINABILITY REPORT 2023

— 38

For information relating to Scope 1, 2 and 3 methodologies, please refer to Appendix C.

Scope 3
Similar to the previous year, G-Star’s carbon footprint in 2023 was primarily driven by Scope 3
emissions, which accounted for 98% of the company’s total emissions. Compared to 2022, Scope 3
emissions decreased by 1% and were 13% lower than the baseline year of 2021.

SBTi SCOPE 3 CATEGORY

2021

2022

2023

%

% CHANGE

CHANGEVS.

YoY

BASELINE(2021)Cat 1 – Tier 1 & 2

35,83637,94340,061

6%

12%

Cat 1 – Tier 3 & 4

13,24914,46916,047

11%

21%

Cat 1 – Other

13,003

7,753

1,207

-84%

-91%

Cat 2 – Capital Goods*

1,688

-

2,546

-

51%

Cat 3 – Fuel and energy related

626

703

788

12%

26%

Cat 4 – Upstream transportation**

25,073

11,351

9,963

-12%

-60%

Cat 5 – Waste

709

188

20

-89%

-97%

Cat 6 – Business travel

166

567

372

-35%

124%

Cat 7 – Employee commuting

2,513

3,209

2,702

-16%

8%

Cat 11 – Use of sold products

21,98725,20627,156

8%

24%

Cat 12 – End-of-life of sold products

847

914

845

-8%

0%

Cat 14 – Franchises

1,202

732

528

-28%

-56%

TOTAL

116,889

103,035

102,235-1%-13%

Total Scope 3 emissions and comparison vs 2022 and baseline year (2021).

* C ategory 2 – Capital Goods was added to G-Star’s carbon inventory during SBTi target validation, covering assets suchas office/store furniture and office/store hardware.
** C ategory 4 – Upstream transportation covers both upstream and downstream emissions from 3rd party transportation***

At SBTi’s request, Category 13 – Downstream leased assets were removed from G-Star’s carbon inventory because
they related to the emissions of tenants at G-Star’s HQ in Amsterdam. Since energy and heating suppliers are definedby G-Star and tenants cannot switch suppliers, these emissions are now accounted for within G-Star’s Scope 1 and 2
inventory.

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SUSTAINABILITY REPORT 2023

— 39

and distribution paid by G-Star.

TOTAL SCOPE 3 EMISSION

116.8992021

103.035

102.235

2022

2023

Considering SBTi targets, which covers Category 1 and Category 4, G-Star had an increase of
4% from 2022 to 2023, but still a decrease of 11% compared to the 2021 baseline. This is mainly
due to Category 4 decrease, as inbound air emissions have decreased significantly.

SBTi SCOPE 3 CATEGORY

2021

2022

2023

%

% CHANGE

CHANGEVS.

YoY

BASELINE(2021)Cat 1 – Tier 1&2

35.83637.94340.061

6%

12%

Cat 1 – Tier 3&4

13.24914.46916.047

11%

21%

Cat 4 – Upstream transportation**

25.07311.351

9.963

-12%

-60%

TOTAL

74.15863.76366.071

4%-11%

Going forward, G-Star aims to support transition to clean energy at current sites or move its
production to sites powered by clean energy, requiring less transportation (e.g., nearshoring,vertical production units), and using materials with a lower environmental impact. Additionally,
G-Star will continuously improve its logistics practices to operate more efficiently and further
minimize the use of air transport for inbound and outbound logistics.
Among the Scope 3 categories, Category 1 (Purchased goods and services) had the highest
contribution, accounting for 56% of the total, followed by Category 11 (Use of sold products)
at 27% and Category 4 (Upstream transportation) at 10%. Altogether, they account for 93% of
total 2023 scope 3 emissions.

INDEXSUSTAINABILITY REPORT 2023

— 40

Scope 3 emissions – SBTi target boundary

2023 SCOPE 3 EMISSION BREAKDOWNThis distribution pattern remained consistent with previous years carbon footprint calculations.
Within Category 1, emissions from Tier 1 and 2 suppliers had the greatest impact, contributing 70%of the total Category 1 emissions. Tier 3 and 4 emissions (materials) accounted for 28% of Category
1 emissions, while other purchased goods and services made up only 2%. Compared to the previous
year, there is a significant decrease in the “other” sub-category because some inputs in thissub-category were calculated using actual data rather than a spend-based approach(e.g., waste emissions).
In terms of material emissions, cotton had the highest contribution, amounting to 58% of the totalmaterial emissions. BCI cotton emerges as the leading contributor to materials emissions, accounting
for 41% of the total. It is followed by organic cotton at 8% and responsible merino wool at 8%.
The significant emissions associated with cotton can be attributed to its large quantity of purchase,
while merino wool exhibits a high emission intensity.

though the total weight of fibres decreased by 4%. This rise in emissions is attributed to theincreased use of leather in G-Star products within the 2023 collection (14% in 2023 compared to
8% in 2022). Leather has the highest emission intensity among the materials used.

INDEX

SUSTAINABILITY REPORT 2023

— 41

TIER 3 & 4 EMISSION BREAKDOWN BY MATERIAL TYPEFIBRES WEIGHT ( KGS )5.279.961

5.085.780

4.390.900

2021

2022

2023

TIER 3 & 4 EMISSIONS

16.04814.469Emissions (tCO2e)13.249

2022

2023

INDEX

SUSTAINABILITY REPORT 2023

— 42

2021

Examining Category 4 in more detail reveals several key trends. Despite the total shipping volume
in tonne kilometres (tkm) remaining relatively steady, there is a notable 60% reduction in total
emissions compared to 2021.

SCOPE 3 - TRANSPORT (TCO2E)

COMPARISON
2021

2022

2023

YoY

vs. Baseline

Inbound Air

16.425

4.662

2.193

-53%

-87%

Inbound Sea

949

1.164

964

-17%

2%

Inbound Road

1

-

179

-

17800%Outbound B2B Air

2.215

1.442

1.335

-7%

-40%

Outbound B2B Road

591

423

313

-26%

-47%

Outbound B2C Air

4.460

3.490

4.759

36%

7%

Outbound B2C Road

225

169

152

-10%

-33%

Warehouse Storage

208

-

69

-

-67%

TOTAL TRANSPORT

25.07311.350

9.963

-12%

-60%

2023 Transport emissions and comparison vs 2022 and baseline year (2021).

INBOUND TRANSPORTWEIGHT (TONNES)% OF TOTAL WEIGHT

Air

204,984%Ocean

4.017,07

85%

Truck

510,29

11%

GRAND TOTAL

4.732,34100%2023 inbound transport volume.

For information relating to Scope 3 calculation methodologies and methodology updates,
please refer to Appendix B.

INDEXSUSTAINABILITY REPORT 2023

— 43

This decrease is primarily due to a significant reduction in inbound air shipment volume (4% of
total), which saw a remarkable 53% decline in emissions compared to 2022 and an 87% decline inemissions compared to the baseline year of 2021. Concurrently, emissions from inbound sea and roadtransport have increased relative to the baseline year. This shift aligns with expectations, as sea androad transport have taken on the shipping volume previously handled by air. Additionally, the risein inbound road emissions can be attributed to G-Star’s nearshore sourcing strategy, which brings
production closer to consumer markets.

Energy Consumption ( G-Star own operation )Below table indicates our 2023 energy consumption and energy sources.
The three energy sources that have been used for G-Star’s own operation were distributed
geographically, as per below:

SOURCE OF ENERGYCONSUMPTION

UNIT

Total Purchased electricity

7287

mWH

Total purchased cooling

194

mWH

Natural Gas

117620m3

Purchased electricity was consumed in 14 countries. Most purchased electricity was consumed in
the Netherlands, followed by France, Belgium, United States and Japan. Natural gas was consumed
in four countries. In Belgium, G-Star operations consumed most gas. Japan was responsible for100% of the purchased cooling consumption.
The detailed overview can be found in Appendix C.

ENERGY BREAKDOWN OF TIER 1

ENERGY BREAKDOWN OF TIER 2

The energy data of the supply chain has
been analysed using the verified data fromthe Facility Environmental Module (FEM)
to identify the sources and contributions ofenergy in various countries where G-Star
has suppliers. The analysis focuses on tier
1 facilities and includes data from 2023,
covering eight different countries where
G-Star has manufacturing activities.

The energy data of the supply chain has been
analysed following the verified data of Facility
Environmental Module (FEM) to identify thesource of energy and contribution of eachsource in different countries that G-Star
have suppliers. The analysis contains thedata of 2023 and represents eleven different
countries where G-Star have manufacturing
activity. In terms of total energy consumption,
the largest energy footprint is with China
followed by India, Bangladesh, and Turkey
that have the highest footprint. In terms ofsource Natural Gas is the highest contributor
followed by Purchased steam and propane.
Details in Appendix C.

In terms of total energy consumption, India
has the largest energy footprint, followed by
Bangladesh, China, and Vietnam. Regarding
energy sources, fuel oil is the highest
contributor, followed by natural gas andpurchased electricity. Details can be found in
Appendix C.
For Tier 1 facility, In Bangladesh around 89
percent energy comes from Natural Gas. In
China LPG is the most prevalent one that
contributes 87 percent. In terms of purchaserenewable Bangladesh is the only country
that contributes 1 percent of the totalenergy contribution. Details can be found in
Appendix C.

For Tier 2 facility, In Bangladesh around 96
percent energy comes from Natural Gas. In
China Purchased steam is the most prevalent
one that contributes 65 percent. In termsof purchase renewable Turkey and China
have the most which is 1 percent of the totalenergy contribution. Turkey is the only county
where wind energy is also available which
contributes 3 percent of the total energy
consumption in the country.Details can befound in Appendix C.

INDEXSUSTAINABILITY REPORT 2023

— 44

Energy consumption in the supply chain ( Tier 1 & 2 )Decarbonisation of the supply chain
G-Star is committed to limiting global temperature rise to 1.5°C above pre-industrial levels andhas set Science Based Targets (SBTs) validated by the Science Based Targets initiative (SBTi).
Recognizing that the majority of its emissions come from the supply chain, G-Star is actively working
to decarbonize this sector. A primary strategy involves increasing the use of renewable energy, which
requires substantial support of our suppliers. To aid suppliers in this transition, G-Star participatesin programs that facilitate collaboration between stakeholders and the supply chain through both
direct and indirect investments. A notable initiative is the engagement of six suppliers in the Carbon
Leadership Program (CLP), an effective and innovative program developed by Reset Carbon and
the Apparel Impact Institute (AII). This program focuses on driving significant reductions in carbon
emissions within the supply chain by setting facility-level carbon reduction targets, which also include
energy efficiency and renewable energy action plans.

INDEXSUSTAINABILITY REPORT 2023

— 45

Additionally, G-Star has nominated four facilities to participate in the Cascale’s ‘Top Action
Club’ initiative. Cascale, in partnership with GIZ (The Deutsche Gesellschaft für Internationale
Zusammenarbeit GmbH or German Development Agency), through its Project Development
Program (PDP), aims to accelerate decarbonization efforts. This is achieved by conducting
pre-feasibility studies for rooftop solar applications, supporting manufacturing units indeveloping technically sound and financially attractive rooftop solar projects.

WATER
MANAGEMENT

We understand the environmental impact that the fashion industry has on water, and G-Star is
striving to implement innovative technologies and novel solutions to reduce our impact. We arefocused on reducing our water use throughout our entire supply chain, from the start at the farm(or crop) level, all the way to the creation of our final garment. Starting from our supply chain, ourmost widely used raw material, which is cotton, is a relatively water intensive crop. To combat this,we have progressively shifted our material use from conventional fibres towards organic ones, andcotton sourced from organic certified farms via OCS and OCA and the Better Cotton Initiative (BCI).
These organizations have been created to educate, train and improve working conditions of farmers
in order to create a sustainable future for cotton. The emphasis is on efficient practices, such as crop
placement, irrigation methods to provide the basis in reducing water use in this stage.
Specifically, processing fabric for denim (and garments in general) consumes a substantial amountof water, namely within the dyeing and washing processes. Therefore, decreasing the consumptionof water during the processing stage of our products is a vital goal of ours. To first understand ourwater consumption during garment production, we collect data on water consumed and from whichsource this water comes from.
A substantial part of our water consumption comes from groundwater. This breakdown includes“blue water” and “grey water”. Blue water consists of freshwater from lakes, rivers and aquifers(Surface, Ground, Rain). Grey water is water that has been polluted by human activity already(production, municipal or waste water).

WATER SOURCES

1% 0% 0%
9%
17%
GROUND WATER %MUNICIPAL WATER %PRODUCTION WATER %SURFACE WATER %22%

WASTE WATER %COMB WATER %RAIN WATER %INDEXSUSTAINABILITY REPORT 2023

— 46

51%

Water Usage
Furthermore, using data provided within the Higg database, we have managed to compile howmuch of our water is recycled internally, and with that – how many of our garments were producedin factories with wastewater recycling capabilities. With this in mind, over 10% of our total water
use has been recycled, and about 52% of all our garments were produced in factories wherewater is recycled. Additionally, a substantial amount of our suppliers has implemented sustainable
innovations – from regenerative indigo dyeing processes (the waste designed to be used as fertilizer
for agriculture), to using laser finishing (Jeanologia) and wastewater treatment plants in order toensure that no polluted water reaches natural water systems. We are collaborating further with othersuppliers to implement these, and even more sustainable solutions in the future. More information
regarding our discharged water treatment can be found in the following section, with information of
our Supplier DETOX program, and the Zero Discharge of Hazardous Chemicals (ZDHC) Foundation.
It is important to note that the use phase of our garments is also a contributing factor of water use.
We ask all of our customers to wash their clothes as infrequently as possible, on a low temperatureand line dry to extend the life of clothes, reduce water and energy use, and minimize microplastic
emissions into the environment.

INDEXSUSTAINABILITY REPORT 2023

— 47

Water Risk
In order to analyse potential risks we may have with regards to water scarcity from these sourcesin the future, using the open source Aquaduct Water Risk Atlas, we have mapped our suppliers andtheir respective factories onto the platform. This is a tool created by World Resource Institute (WRI),
that categorizes water risk over a 5 point scale – from low (0-1) to high (4-5). This analysis includes
multiple aspects: rainwater, groundwater and an overall baseline water stress level. For the future wewill be focusing on figuring out what production processes and innovations we should implement inareas with high water risk. As of now, our most high-risk areas are in the Ganges-Brahmaputra basinof Bangladesh, the state of Tamil Nadu in India and Shandong province in China.

WASTE &PACKAGING

Our Packaging
Packaging is an inevitable and important part of shipping products from one place to anotherwithout damaging them. However, packaging requires additional resources, such as plastics andcardboard. To limit the environmental impact of the packaging we have developed requirementsfor our packaging, which are based on the same circular principle as our products.

Our key packaging requirements
o 100% packaging is made of recycled content
o 100% recyclable packaging
o Continuous, absolute reduction in plastic packaging
In 2023 we have been working on our Packaging RSL, which will be ready in 2024.

Progress
Since 2022, all our suppliers use polybags made from 100% post-consumer recycled content. We also
started using smaller and thinner polybags for most product groups, beneficial as these require lessmaterial. Our packaging components are made of one material, which makes recycling easier. And toencourage the correct recycling of packaging, products ordered via G-Star.com are first unpacked in
our Amsterdam-based warehouse so that polybags can be disposed of correctly and placed in therecycling bin.

Our Other Company Initiatives on Waste
On World Water Day in 2023 we introduced our first Dopper Water Tap in our flagship store in
Belgium. To celebrate this, we offered a limited edition bottle carrier, made from a recycled andorganic denim fabric mix, which was dyed with a sustainable foam technique, using no water or
harmful chemicals to apply colour.

Tackling Supplier Waste
Besides packaging, most waste can be attributed to our production phase. Waste is generated
during the different stages of production in our supply chain, from the material production –with knitting, dyeing or printing – and finished product assembly (cutting, washing, packing) towards
transportation and finally the end of life of our products.
Via the Higg FEM we gather data from our suppliers regarding their generated waste. Below figure
shows an overview regarding how much of this can be considered hazardous, non-hazardous andhow much is upcycled.
INDEX

SUSTAINABILITY REPORT 2023

— 48

We have been taking steps to reduce our packaging material. In 2022 we introduced paper mailingbags for e-commerce deliveries outside of the Netherlands as a replacement for boxes, reducing theweight of shipping. In 2023 we further reduced the average weight of our packaging from 273 grams(in 2022) to 160 grams (in 2023), a weight reduction of 41%. Currently, 64% of our orders is sent inthis paper mailing bags.

HAZARDOUS VS NON-HAZARDOUS WASTE

10%

90%

Non-hazardous waste accounts for just over 90% of the waste generated
at our suppliers. Of this non-hazardous waste, 76% is materials waste
during production.

NONHAZARDOUS WASTE BREAKDOWN

3% 2%

1% 0% 0% 0%

5%
5%

NONHAZARDOUS MATERIALS WASTE %NONHAZARDOUS PAPER WASTE %8%

NONHAZARDOUS WASTE CARTON %NONHAZARDOUS PLASTIC WASTE %NONHAZ WASTE DOMESTIC TOTAL %NONHAZ WASTE OTHER %76%

NONHAZARDOUS METAL WASTE %NONHAZARDOUS WASTE FOOD %NONHAZARDOUS WASTE GLASS %Managing waste is a crucial concern that begins with identification, segregation, and proper storage.
Through monitoring we have identified that most of the waste is sold to specific dealers, where it
undergoes processes such as reuse, recycling, and upcycling. With a focus on circularity, G-Star
encourages suppliers to handle waste in ways that maximize its utility, contributing significantly tothe circular economy.

INDEXSUSTAINABILITY REPORT 2023

— 49

NONHAZARDOUS WASTE CANS %Climate Neutral Delivery
Besides scoping our emissions, we are already implementing more climate-friendly solutions to
reduce our emissions. One example is via our bike delivery service in collaboration with Fietskoerier
which operates in the largest Dutch cities, such as Amsterdam. This made up 4,7% of all delivery
transportation in 2023. 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.
o In 2023, 65% of international e-commerce parcels shipped to customers were carbon neutral
through offsetting. This means an increase of 38% compared to 2022.
o In 2023, 100% of parcels delivered to customers in the Netherlands were carbon neutral throughoffsetting.
Through DHL’s GoGreen offset program we contribute to climate protection projects related to water,energy efficiency, biogas, and biomass in different countries around the world. Read more about
those projects here.

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

ZDHC Gateway

collects supplier data through

Third-party Verified
Wastewater Test
Results

ChemicalInvetory List

which are assessed against

ZDHC’s MSRLSUSTAINABILITY REPORT 2023

— 50

As part of our Supplier DETOX Program,all G-Star supply chain partners are
required to:o Follow ZDHC’s Manufacturing
Restricted Substances List (MRSL).
o Upload their Chemical Inventory List
(CIL) in the ZDHC Gateway monthly,
checking chemicals against the latest
ZDHC MRSL.
o Obtain a certificate of completion of
the Supplier to Zero program (Level
1, 2, or 3), which is a roadmap tosustainable chemical management
leadership.
o Carry out a wastewater test twicea year, following the latest ZDHC
Wastewater Guidelines.

that result in

ZDHC InCheck
ReportInput & Process

ZDHC ClearStream
ReportOutputHigg Verfied
FEM
Input & Process

are monitored in

G-Star’s Supplier
DETOX Programand benchmarked in

G-Star’s Vendor
Scorecardthat is used to monitor,
evaluate and select existingand new suppliers

INDEX

Zero Discharge on Hazardous
Chemicals ( ZDHC )G-Star joined the Zero Dischargeof Hazardous Chemicals (ZDHC)Foundation in 2012. Our first Supplier
DETOX Program was established with
our membership to the ZDHC initiativeand later extended with the addition ofcomplementary monitoring tools. The
ZDHC member brands unite around a
joint Roadmap to Zero to ensure safe
and sustainable chemical use in the
fashion industry. ZDHC also provides
tools to improve chemical management.

ELIMINATINGCHEMICALS& CHEMICALPOLLUTION
Minimizing pollution and eliminating all hazardous chemicals have been a major priority for us sincesigning the DETOX Commitment with Greenpeace in 2013. Through the DETOX Commitment wecommitted to ban the use of hazardous chemicals from our products and production processes
in our supply chain. To monitor the performance of our suppliers, G-Star has been running its
Supplier DETOX Program since 2018. We require all suppliers to improve their performance in the
input, process and output areas of chemical management within the facilities used to produce our
products.

ZDHC Gateway

collects supplier data through

Third-party Verified
Wastewater Test
Results

ChemicalInvetory List

which are assessed against

ZDHC’s MSRLSUSTAINABILITY REPORT 2023

— 51

As part of our Supplier DETOX Program,all G-Star supply chain partners are
required to:o Follow ZDHC’s Manufacturing
Restricted Substances List (MRSL).
o Upload their Chemical Inventory List
(CIL) in the ZDHC Gateway monthly,
checking chemicals against the latest
ZDHC MRSL.
o Obtain a certificate of completion of
the Supplier to Zero program (Level
1, 2, or 3), which is a roadmap tosustainable chemical management
leadership.
o Carry out a wastewater test twicea year, following the latest ZDHC
Wastewater Guidelines.

that result in

ZDHC InCheck
ReportInput & Process

ZDHC ClearStream
ReportOutputHigg Verfied
FEM
Input & Process

are monitored in

G-Star’s Supplier
DETOX Programand benchmarked in

G-Star’s Vendor
Scorecardthat is used to monitor,
evaluate and select existingand new suppliers

INDEX

Zero Discharge on Hazardous
Chemicals ( ZDHC )G-Star joined the Zero Dischargeof Hazardous Chemicals (ZDHC)Foundation in 2012. Our first Supplier
DETOX Program was established with
our membership to the ZDHC initiativeand later extended with the addition ofcomplementary monitoring tools. The
ZDHC member brands unite around a
joint Roadmap to Zero to ensure safe
and sustainable chemical use in the
fashion industry. ZDHC also provides
tools to improve chemical management.

The ZDHC Gateway includes more than 30,000 chemical products that have been assessed on theirconformance to ZDHC’s MRSL and helps suppliers to identify safer chemicals. Alongside the CIL,
wastewater is tested according to the ZDHC Wastewater guidelines, providing verified data on eachsupplier’s chemical performance. This is used to generate a ZDHC InCheck and a ZDHC Clearstream
report which, we request twice a year from our suppliers.
In 2021, ZDHC Implementation tokens were provided to G-Star Tier 1 and 2 suppliers who were newor had recently started to implement the Roadmap to Zero program. The token system enables
suppliers to access training for free via the ZDHC eLearning academy or to onboard to the Supplier
to Zero (StZ) program. In 2023, G-Star issued 19 tokens for the StZ program, allowing all factories toreceive the Foundational Level (Level 1) certificate.
The performance of chemical substances per parameter in the Supplier DETOX Program is shown in
the overview below. This performance covers all Tier 1 and Tier 2 wet processing factories that fallunder the ZDHC scope in 2023, amounting to 77 in total. Over 80% of these factories’ wastewater
were tested against MRSL, heavy metals, and other parameters, some of which were detected.
To maintain and improve these we ensured that suppliers failing to meet ZDHC requirements
conducted a Root Cause Analysis (RCA) and developed a Correction Action Plan (CAP).

ALL FACTORIES - PERFORMANCE BY PARAMETER ( MRSL SUBSTANCES )

81%

19%

100%

0%
0%

97%

3%

0%

98%

2%

0%

100%

0%

89%

11%

0%

95%

5%

0%

94%

6%

0%

95%

0%

0%

98%

2%

0%

87%

13%

0%

100%

0%

100%

0%

100%

0%

100%

0%

98%

2%

0%

97%

3%

0%

100%

0%

100%
100%

0%
3%

0%

MEETS REQUIREMENTS
DOES NOT MEETS REQUIREMENTS

G-Star jumped from Accelerator to Champion Level in the ZDHC Brands to Zero assessment report.
This is based on 2023 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. We areproud of such an achievement and will continue to pursue ZDHC tools implementation acrossour supply chain.

INDEXSUSTAINABILITY REPORT 2023

— 52

NOT ANALYSEDSupplier Detox Program
The Supplier DETOX Program combines 2022 data from the Higg verified FEM with the ZDHC
2023 results from the InCheck and ClearStream reports, and supplier level on the Supplier toZero program.
Once we receive this data it is analysed based on 3 separate areas of chemical management:o Input – the level of risk regarding chemical inventory is assessed. This is based on Higg FEM 2022
and latest ZDHC InCheck results.
o Process – the level of risk regarding chemical management on factory premises is assessed.
This is also based on Higg FEM 2022 and Supplier to Zero level of certification.
o Output – level of risk regarding wastewater treatment is assessed. This is based on ZDHC
ClearStream reports (wastewater testing).
By providing a risk qualification in each of these 3 areas, opportunities for improving a facility’s
overall chemical management system are easily identified.
For each of the 3 areas one of the following 5 risk qualifications is listed in the supplier report:o Best in classo High risk (non-compliance)o Low risko High risk (unknown)o Medium risk
We share their performance with our suppliers in individual DETOX Supplier Reports.
These serve as a 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. From 2021, these reports also include a Corrective Action Plan (CAP) to determine
which follow-up actions require the attention of the supplier based on their performance. These
actions and a time indication should be added by the supplier and shared with G-Star.

HIGG

ZDHC CLEARSTREAM

ZDHC

FEM 3.0 RESPONSEREPORT

INCHECK REPORTVerified

Self-Ass.

No

Responded

Response

Did not

Response

respondNo
response

2021

90%

5%

5%

88%

12%

81%

19%

2022

66%

7%

27%

62%

38%

48%

52%

2023

78%

5%

17%

82%

18%

71%

29%

DETOX PERFORMANCEINPUT

CLASSIFICATIONPROCESSPROCESS SUPPLIERHIGGTO ZEROOUTPUT

Best-in-class

14%

17%

8%

27%

Low risk

31%

22%

73%

27%

Medium risk

31%

27%

5%

3%

High risk – Non-compliance

8%

17%

9%

25%

High risk – Unknown

16%

17%

5%

18%

TOTAL

100%

100%

100%

100%

INDEX

SUSTAINABILITY REPORT 2023

— 53

Moving forward, in 2024, we will continue to work with the ZDHC tools and standards to monitor
the production and manufacturing performance of suppliers in the DETOX program.

REFLECTIONS ON
2023

STRATEGIC TOPIC

Pollution &Climate Change

2023
ACTION & GOALS

2023 HIGHLIGHTSAND PROGRESS2024
ACTION & GOALS

As a minimum, achieve a

Achieved a verified FEM

Achieve a verified FEM

verified FEM score for Tierscore for 83% of Tier 1score for Tier 1 suppliers

1 suppliers that represent

suppliers and 80% of Tier 2that represent 86% of

86% of business volume,

suppliers.

business volume, and Tierand Tier 2 suppliers that2 suppliers that represent

represent 82% of business

82% of business volume.

volume.

Pollution

Achieve 90% conformance

Our DETOX program

Achieve a minimum ofwith parameters set

included 77 factories

90% conformance with

by ZDHC Wastewater

under the ZDHC scope,parameters set by ZDHC

Guidelines.

with an average of 99%

Wastewater Guidelines.

conformance with theparameters set by ZDHC
Wastewater Guidelines.

Continue to provide ZDHCProvided 19 ZDHCContinue to provide ZDHC

implementation tokens to

implementation tokens to

implementation tokens to

suppliers to implement the

new and existing Tier 1 andsuppliers to implement the

Roadmap to Zero program.

2 suppliers to implement

Roadmap to Zero program.

the Roadmap to Zero
program.

Achieve official validation

Achieved official validationof Science Based Targets.

of Science Based Targets.

Increase amount of bike

Offered bike delivery

deliveries

option in the largest Dutch
cities, covering 4,7% oftransportation in the
Netherlands.

Increase the amount of

65% of international

Increase the amount ofecommerce parcels to be

e-commerce parcels

ecommerce parcels to bedelivered carbon neutral.

shipped to customers weredelivered carbon neutral.

carbon neutral.
100% of parcels delivered
to customers in the
Netherlands were carbon
neutral.

INDEXSUSTAINABILITY REPORT 2023

— 54

Climate Change

— 55

INDEX

PRODUCTSUSTAINABILITY REPORT 2023

PRODUCT

Our responsible product strategy is all aboutchoosing the lowest environmental impact
materials and work towards a circular fashionindustry. We consider everything from thechoice of raw materials and fibres to responsible
fabric and garment production all the way
through to consumer care and end-of-life of the
product. That is why circularity is at the baseof all our Product pillars and our Product Life
Cycle. If we want to stay a denim brand in the
future, we need to design in ‘closed loops’ today.

Responsible Materials
We are committed to ensuring that all raw
materials used in our products are grown
and manufactured in a responsible way that
preserves resources and respects human andanimal rights.

01. DESIGN &MATERIAL USE

05. REUSE

02. MAKE

04. WEAR & CARE

03. MOVE

After reaching our materials goals in 2020,
we set new targets that are part of ourSustainability Strategy moving forward. These
are broken down below and are also reflected in
our Responsible Materials Ranking.

GOAL 2025

GOAL 2030

Responsible Materials

75% of our collection will be made of

100% of our collection will be made ofregenerative, recycled and/or organic/

regenerative, recycled and/or organic/

bio-based materials.

bio-based materials.

INDEX

SUSTAINABILITY REPORT 2023

— 56

PRODUCT

Currently, 43% of our materials are either recycled, bio-based and/or compostable. We consider
materials that fall into this scope to be more responsible. The remaining 57% of our materials consistof Better Cotton sourced via a mass balance system, better than conventional, and conventional
materials. If Better Cotton is included, over 95% can be seen as “more sustainable” than conventional
materials.

43%
33%

2020

35%

2021

32%

2022

2023

MATERIAL CATEGORY%

Recycled or mostly recycled

14%

Organic, bio-based or composable

29%

Better Cotton

51%

Better Than Conventional

1%

Conventional5%

Our materials portfolio
As we are a denim brand to the core, 83% of the raw material we use is cotton, a crop that hashistorically been associated with high water and pesticide use. 99% of all cotton we use is eitherorganic, recycled, regenerative or sourced through the Better Cotton Initiative (BCI) via a massbalance system.

INDEXSUSTAINABILITY REPORT 2023

— 57

The remaining 17% of our material mix includes polyester (11% of total) and other materials such as
man-made cellulosic fibres, elastane and animal fibres. Below provides a breakdown of our completematerial mix.

A CLOSER LOOKAT OUR KEY
MATERIALS
CottonIn 2023, Cotton made up around 83% of ourcomplete material mix. 62% of this is sourced
via the Better Cotton Initiative, 23% is organic
cotton, 10% is regenerative cotton, 4% isrecycled and less than 1% is conventional cotton.
We are working with our suppliers tocontinuously increase the share of organic,
regenerative and recycled cotton in ourcollections. Being a partner of the Organic
Cotton Accelerator, we also invest in supporting
farmers in their transition from conventionalfarming towards organic farming practices.

1%
4%
10%

23%

62%

CONVENTIONAL COTTONRECYCLED COTTON
REGENERATIVE COTTON
ORGANIC COTTON
BETTER COTTON

G-Star’s approach towards the Better Cotton Initiative
By investing in the Better Cotton Initiative (BCI) we are supporting their mission to help cotton
communities survive and thrive, while protecting and restoring the environment. Throughout theyears, Better Cotton has been an important first step for G-Star to move away from conventional
cotton and towards more sustainable cotton sourcing practices.

To strengthen our responsible materials
goals we signed Textile Exchange’s 2025
Sustainable Cotton Challenge in 2020 and its
2025 Recycled Polyester Challenge in 2021.
In addition, through our partnership with
the Organic Cotton Accelerator (OCA), we
support farmers in their transition to organic
cotton cultivation. In 2023 the cotton was
harvested and our 24Q3 collection will include
first products with organic cotton via OCA.

In 2023 we achieved brand-level certification
to the Organic Cotton Standard (OCS)
and the Global Recycled Standard (GRS).
OCS aims to expand organic agricultural
production whilst GRS strives to increase theuse of recycled materials and includes socialand environmental processing requirements
as well as chemical restrictions; thesecertifications enable G-Star to make onproduct claims that are verified by a reputable
third party.

INDEXSUSTAINABILITY REPORT 2023

— 58

In 2021 BCI announced plans to develop a physical traceability solution in response to a growing
need for greater transparency. G-Star will continue to stay informed about this project whilst working
to increase the volume of recycled, organic and regenerative cotton in our material mix.

Polyester
In 2023, polyester made up 10% of our totalmaterial mix. We are proud that 87% of this is
recycled polyester, which has a significantly
lower climate footprint than conventional
polyester. We are committed to exploring fibreto-fibre recycled materials moving forward and,overall, to reducing the use of synthetics in our
products.

Elastane
Elastane makes up around 2% of our totalmaterial mix and is used to improve comfort,
shape and fit. 46% of all elastane used in 2023
came from more responsible alternatives, suchas recycled or bio-based options. For example,
45% was T400® EcoMade, which contains 50%
recycled PET content. We also continued using
ROICA™ V550, which is a stretch yarn basedon the Asahi Kasei polymer science. The yarnachieved a Gold Material Health Certificate
in Biological cycle from the Cradle to Cradle
Product Innovation Institute.

87%

13%

RECYCLED POLYESTERCONVENTIONAL POLYESTER

45%

1%

54%

RECYCLED ELASTANEB IO-BASED ELASTANE( ROICATMV550 )CONVENTIONAL ELASTANE

62%

37%

RECYCLED POLYAMIDECONVENTIONAL POLYAMIDEINDEXSUSTAINABILITY REPORT 2023

— 59

Polyamide
In 2023, our share of polyamide use was around
2% of our material portfolio. Of this, 63% camefrom recycled resources. Similar to polyester, we
work towards 100% recycled polyamide.

Animal-derived Fibres
Less than 2% of G-Star’s products were madeusing animal-derived fibres in 2023. Whilst thesemake up a relatively small proportion of ourmaterials, we have an Animal Welfare Policy inplace to help ensure these fibres come from safeand ethical sources. As a minimum, all leather
factories must be Leather Working Group(LWG) certified to a bronze, silver or gold level.
Positively, we work with two leather suppliers
that both hold Gold-Rated LWG certificates. In
the future, we aim to phase out the use of virginanimal-derived fibres across G-Star products.

2%

38%

14%

45%

RECYCLED WOOLLWG LEATHERRWS WOOLCONVENTIONAL FIBRES

4%

89%

Man-Made Fibres
In 2023, Man-Made Fibres (MMF) made up 1% of
our total material mix. Certified TENCEL™ Lyocell
fibres and LENZING™ ECOVERO™ Viscose fibres
made up 89% of this and 4% was recycled(Lyocell LENZING™ REFIBRA™).

RECYCLED LYCOCELLCERTIFIED VISCOSE,
LYCOCELL AND MODALCONVENTIONAL VISCOSE,
7%

LYOCELL AND MODALINDEXSUSTAINABILITY REPORT 2023

— 60

Responsible Materials Ranking
To guide us in our sustainable materials journey we have been using a Responsible Materials Ranking
since 2019, listing all the fibres we use and indicating their environmental impact, according toexisting industry standards. In order to rank the fibres, we first categorized all fibres we use, as
well as the ones we specifically choose not to use. To guarantee the most objective and up-to-dateranking tool, the categorization of the fibres is completely based on existing industry tools andscoring mechanisms. We included the classification of CanopyStyle’s annual Hot Button Ranking, therigorous standards of the Cradle to Cradle Products Innovation Institute, Higg Materials Sustainability
Index (Higg MSI) and the Preferred Material Benchmark by Textile Exchange. We stay abreast ofdevelopments across material benchmarks and update the ranking to reflect best-practice. The latest
version of our ranking can be found here. The ranking is meant to be used for each fibre separately
and not to compare different fibres with each other, e.g. cotton versus synthetics.

OUR CIRCULARITYJOURNEY

We strive to excel in circular denim innovation. To achieve this, G-Star has committed to ensuring
1 million pair of jeans to be repaired, reused or recycled by 2030. In 2023, we continued to design
products for durability and educate customers on how to wear and care for their garments.
We recognize that 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 support of this, we have launched several programs that aim to extend the life of our products, aswell as ensure responsible end of life.

MATERIALSGOAL 2025

GOAL 2030

Circularity

20% of our collection will be madeDesign for durability and recycling towith Cradle to Cradle Certified® fabrics.

extend life of 1 million pair of jeans byoffering solutions for re-use, remake orrecycling by 2030.

Cradle to Cradle Certified™ innovations
The Cradle to Cradle Products Innovation Institute helps us to design in closed loops.
Their certification process is the only one in the world designed for a circular product economy
and it requires unparalleled levels of transparency across the supply chain. Cradle to Cradle designs
strive to mimic the principles of nature, where there is no concept of waste. Everything effectively
becomes food for another organism or a system, and all the materials are reutilized in cycles.

o Material Health: Ensuring all the selected materials are safe for humans and the environmento Product Circularity: Enabling a circular economy through regenerative products and process
designo Clean Air and Climate Protection: Protecting clean air, promoting renewable energy, and reducing
harmful emissionso Water and Soil Stewardship: Safeguarding clean water and healthy soilso Social Fairness: Respecting human rights and contributing to a fair and equitable society
G-Star has committed to ensuring 20% of our collection contains Cradle to Cradle Certified® fabrics
by 2025. In 2023, 5% of all fabrics in our collection was C2C certified. G-Star recognizes the need toactively involve suppliers as part of the Cradle to Cradle roadmap and collaboration will improve oursourcing options throughout the supply chain.
By increasing our use of Cradle to Cradle Certified® fabrics, we continue to increase our use of 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® progress here.

INDEXSUSTAINABILITY REPORT 2023

— 61

To implement this philosophy into products, a Cradle to Cradle certification standard, powered by
the Cradle to Cradle Products Innovation Institute, is used as a framework. Cradle to Cradle also
known as ‘C2C’ is the only certification designed for a circular product economy. It is the mostrigorous, requiring unparalleled levels of transparency, collaboration throughout multiple tiers of
the supply chain and a holistic design perspective. The extensive certification is further amplified byvarying levels that can be achieved, ranging from bronze, silver, gold to platinum. All whilst taking
into consideration these five aspects:

REPAIR: Certified Tailors Program
Our Certified Tailors program aims to extend the lifetime of our jeans by offering free repairs on
G-Star denim via G-Star Certified Tailors. This initiative was first launched in 2021 across 5 cities
in the Netherlands and in 2022 was extended to Germany, 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. Only in South Africa we had
1119 pieces repaired in 2023. Learn more about our repair program, or find a certified tailor in yourneighbourhood here.

REWEAR: G-Star Rewear Program
We create durable garments designed to last a lifetime. With each piece thoughtfully produced
and made to wear and rewear. We are sure of this, which is why we offer customers the opportunity
to return their G-Star pre-owned garments back to G-Star (online and offline) for resale on our
Rewear platform. This way, products can be enjoyed by other customers again. G-Star checks andwashes each garment for its quality, so that our customers can shop and sell original second-handclothing in perfect condition on G-Star Rewear. During the first phase, Rewear is only available in
the Netherlands.
Since we launched Rewear in October 2023, 1263 products have been returned for resale on our
Rewear platform. In 2024, we are planning to learn from our first experiences with the expectation
to grow and enhance our circularity journey

UPCYCLE: G-Star x (di)vision
In 2023, we worked together with (di)vision to upcycle our archive pieces and dropping limitededition denim alongside the Danish fashion label. The result? A capsule collection featuring 96
reconstructed, limited-edition pieces alongside a release of 96 custom-made G-Star Elwood jeans.
(di)vision started exploring the possibilities of producing clothing made from deadstock, recycled
fabrics, vintage goods and archive stock, originally by dividing clothing and putting it back together.
Their playful fashion designs often bring the clothes to life, experimenting with prints and mascots.
This time, we featured our very own rhino mascot G-NO in our creative collaboration.

In 2023, we have continued our program and explored long-term solutions for recycling or
repurposing the jeans we collected. What is possible with denim? We want to explore the endlesspossibilities of denim. That is why in 2023 we have collaborated with one of the most influential
Dutch designers of the 21st century, Maarten Baas. We want to use less wasteful materials, makemore durable products, use more of what is already there and do less harm to our planet. We
recycled jeans into a new material. Baas used this to create art and design objects. The kick-off
was during Milan Design Week 2023. Learn more about our collaboration here.

INDEXSUSTAINABILITY REPORT 2023

— 62

RECYCLE: Return Your Old Denim
In 2021 we re-initiated a product takeback service during a pilot across two stores in the Netherlands.
This included our outlet in Roermond and our mono-brand store in Rotterdam. In 2022 we extended
this program to seven countries including Belgium, France, Germany and Austria. As a result, 97
stores (both retail and outlets) received an RYD box. To encourage our customers to return theirdenim, G-Star offers a discount on a new pair of jeans.

INNOVATIVEPRODUCTIONPROCESSESAs a denim brand for the future, we also invest in production processes for the future.
Below we list some of our impactful innovations in 2023.

Raw for the Planet – Indigo
Raw for the Planet – Indigo (RFTP) is the cleanest indigo-dying process in the world, developed incooperation with DyStar®, G-Star and Artistic Milliners. RFTP-Indigo uses 15% less indigo, 70% lesschemicals, no salts, and produces no salt by-product during reduction and dyeing process, saving
water and leaving clean and recyclable water effluent. This production process is used for our first
Cradle to Cradle Certified® Gold Stretch Denim Fabric.

Dry Indigo® technology: Foam Dyed Denim
In 2023 Foam dyeing was a new and improved approach to yarn dyeing. Foam replaces the largevats of water and chemical baths, typically used in conventional indigo dyeing. This means zerowater and a lower amount of chemicals were required to transfer indigo dye to the fabric. A greener
solution, with the same outcome. Foam dyeing is the innovative technique eliminating water waste,
used for our new capsule collection.

The minerals Movement
We introduced our Dyed by Minerals collection for which we used dyes made from naturally sourced
colour pigments. This resulted in a collection consisting of forest greens, volcanic pink and desert
yellows. The technique of transforming naturally sourced colour pigments with rich hues into dyes,
has been a common historical practice for centuries. Ancient civilizations and Renaissance paintersused these natural dyes for art, clothes, and even makeup. It was a meticulous process that required
the extraction of colours from minerals, plants and sometimes animals, before manually turning theminto a dye.

In addition, the fabric in the collection used was made from 75% regenerative cotton and 25%
recycled cotton, recognized by the Cradle to Cradle Products Innovation Institute and awarded
a C2C Certified®Gold rating.

INDEXSUSTAINABILITY REPORT 2023

— 63

Following the example of our predecessors, we have been going back to the same process, and gavemineral dyes a fresh look in 2023. We dyed our denim with pigments extracted from sources likevolcanic rocks and soil. And on top of that, the denim was dyed with cold water, instead of warm.
Cold-dyeing preserves energy, in comparison to the conventional dyeing process which uses a lot
more heat.

Back to Basics: Undyed, Unbleached and UnwashedTypically, denim is created using cotton which is bleached, dyed using indigo, and then washedbefore it’s assembled into a pair of blue jeans. Ecru denim works a little differently. Ecru is undyed
cotton and therefore, it skips these chemical-intensive steps leaving a more natural-looking fabric.
We worked with our supplier Saitex in Vietnam to create this collection; a vertically integrated millthat has solar panels installed on the roof of the facility to help generate electricity and power
production. This undyed, unbleached, and unwashed cotton fabric consists of 75% regenerative
cotton and 25% recycled cotton. It’s also been recognized by the Cradle to Cradle Products
Innovation Institute and awarded a C2C Certified® Gold rating.

Designing with AI
In 2023 we introduced our first denim couture piece designed by AI. We believe AI can provide
benefits such as increased efficiency and accuracy. There’s the potential to revolutionize the fashionindustry. It can also help reduce waste in the production process by immediately visualizing a raw
idea into a well-made outcome.

Exploring New Territory: Homegrown Cotton
In 2023, we embarked on a pioneering research project to explore the feasibility and potential ofgrowing cotton in a controlled greenhouse environment in the Netherlands. This initiative, focusedon sustainability, aimed to investigate the environmental and economic implications of greenhousecotton cultivation and its role in advancing sustainable agriculture and textile production.
Through a collaborative effort between G-Star, agricultural experts from Dutch Cotton, andWageningen University and Research (BU Greenhouse Horticulture), we examined the viability ofgreenhouse cotton cultivation as a sustainable alternative to traditional open-field methods.

INDEX

SUSTAINABILITY REPORT 2023

— 64

By investing in innovative and sustainable practices, such as greenhouse cotton cultivation, we cansignificantly contribute to sustainable agriculture and textile production. This project highlights
the potential of combining advanced agricultural techniques with a commitment to environmental
stewardship, paving the way for a more sustainable future in the textile industry.

REFLECTIONS ON
2023
STRATEGIC TOPIC

Circularity

2023
ACTION & GOALS

2023 HIGHLIGHTSAND PROGRESS2024
ACTION & GOALS

Recertification of Cradle toFinalized recertification ofStart recertification of

Cradle Certified® Gold v 3.1.

Cradle to Cradle Certified®

Cradle to Cradle Certified®

Gold v 3.1.

Gold v.4.1

Proceed upscaling of

5% of our products are

Proceed upscaling of

Cradle to Cradle Certified®

made with Cradle to Cradle

Cradle to Cradle Certified®

fabrics with the aim to

Certified® fabrics.

fabrics with the aim toreach 20% Cradle to Cradle

reach 20% Cradle to Cradle

Certified® fabrics in 2025.

Certified® fabrics in 2025.

Launch recommerce

Started a collaboration

Expand recommerce

platform.

with Faume and since theplatform to at least 1 morelaunch, 1263 products havecountry.

been returned for resale.

Further rollout in-store

In-store take-back is now

Increase number of

takeback service (Return

active in 97 stores across 7

discarded denims collectedYour Old Denim) to collect

stores.

and recycled.

Increase number of denim

1119 denims repaired in

Increase amounts ofproducts repaired.

South Africa.

repaired denim and set up

post-consumer waste.

a system to better track thenumber of denims repaired
beyond South Africa.

Achieve brand-level

Achieved brand-level

Recertify OCS and GRS

certification for the Organic

certification for the Organic

and achieve brand level

Content Standard andContent Standard andcertification for RWS andbrand-level certification

Global Recycle Standard.

RegenAgri.

Continued collaboration

Developed first collection

Increase volumes sourced

with the Organic Cottonwith OCA cotton sourced

through the OCA program

Accelerator to support

directly from organic

to one additional country

farmers in their transition tofarmers in India.

and increase sourcing infor the Global Recycle
Standard.

organic cotton cultivation

India with 20%.

Implement indicators for

Implemented on productresponsible productionlevel traceability for allprocesses in PLM.

processing and fabric units,
durability and circularity.

INDEX

SUSTAINABILITY REPORT 2023

— 65

Responsible Materials

— 66

INDEX

PHILANTHROPYSUSTAINABILITY REPORT 2023

PHILANTHROPY

The GSRD Foundation was founded in 2007 as G-Star’s corporate foundation. Its mission is to create
a positive impact on the lives of the people and communities in the countries where G-Star products
are made. It does so by supporting projects that focus on the education, training and coaching ofyoung 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
Vocational training and education for young adults, focusing on knowledge and skills that will help
them to learn a trade, improving their chances of acquiring employment and therefore, having abetter future.

Entrepreneurship
Life-skills training and coaching for young adults, to help them to become independent, seize
initiatives and leverage opportunities to become more self-sufficient, either as proactive employeesor 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.

Indirect Impact

INDEXSUSTAINABILITY REPORT 2023

— 67

Direct Impact

The GSRD Foundation is active in 4 G-Star production countries:
Bangladesh, China, India and Vietnam.

o Bangladesh Active since 2008o China
Active since 2009o India
Active since 2008o Vietnam
Active since s 2014

The GSRD Foundation has been working together with 57 partners over the past years. 109 projects
have been supported since 2008.

INDEX

SUSTAINABILITY REPORT 2023

— 68

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

— 69

INDEX

APPENDICESSUSTAINABILITY REPORT 2023

APPENDIX A

Risk Assessment
In our 2019 Sustainability Report we first introduced a due diligence risk assessment following
the guidelines 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 2023 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
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 analysed information from our supply chain we can conclude
that the areas in the right and middle to top corner of the matrix can be scaled as salient risks.
These risks are included as key priorities as part of our Sustainability Strategy and action plan
towards mitigation.
Compared to our assessment in our Sustainability Report of 2022, we can see that the mostprevalent social risk factors remain similar with the 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, greenhouse gas emissions
throughout Tier 1 and 3, and water consumption in Tier 1 and 2. A review of our supplier data showedthat no major changes had to be made regarding the risk assessment.

INDEXSUSTAINABILITY REPORT 2023

— 70

Next steps
Due diligence is an ongoing process, and so is this risk assessment. Our risk assessment supports
us in defining and implementing our new Sustainability Strategy. In 2024, we will undergo a double
materiality assessment and create an even more holistic overview of the context of our value chain.
We will also integrate more dialogue with additional stakeholders. This way we aim to include
additional local perspective to be able to determine more specific actions in certain areas.

FIGURE 1
Risk matrix for social risk factors in Bangladesh, China, India, Tunisia, Turkey and Vietnam

I

B, I, Tn, Tr & V
Tn

Tr

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

B&I

Tn, Tr & V

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

B&C

I

Tn & V

B, C, I & Tr

C, Tn, Tr & V

MediumSeverity of harmHigh

B, 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 ( T1 ), Tier 2 ( T2), Tier 3 ( T3) and Tier 4 ( T4 )T 1 & T2

T3
T4

T3

T1 & T2
T3

T1

MediumHigh

Likelihood of harm
Water consumption

Water pollution

Chemicals

GHG

INDEX

— 71

T4

T2 & T4

Low

SUSTAINABILITY REPORT 2023

T4
T3

MediumSeverity of harmHigh

T1 & T2

Appendix B

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

EDUCATION &ENTREPRENEURSHIPPOLUTION

PHILANTHROPY

CLIMATE CHANGESUSTAINABLE
MATERIALS

CIRCULARITY

PLANET

FAIR WAGESWORKERS’ RIGHTSPEOPLE

TRANSPARENCY
Main High Impact
SDGs

Underlying HighImpact SDGs

Other Impact

INDEXSUSTAINABILITY REPORT 2023

— 72

SDGs

Appendix C

FASHION INDUSTRY CHARTER FOR CLIMATE IMPACT – CARBON FOOTPRINT CALCULATIONS

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

Use cost dataNo

Use regional
montly data

Does the site haveenergy cost data
for a given month?

Yes

Use site’smonthly average

1. Emission factors from internartional standards are used (e.g. IEA, US e-GRID, GHG Protocol, DEBRIS)
2. G lobal Warming Potential of Fourth Assessment Report published byIntergovernmental Panel on Climate Change (IPCC AR4) is adopted

This table below demonstrates the methodology used for calculating Scope 3 emissions.

CATEGORY

SUB-CATEGORYQUANTIFICATIONSOURCE OF DATAMETHOD

SOURCE OFEMISSION FACTORS/REFERENCES

Cat 1: Purchased

Tier 1 and 2

goods and services

Supplier specific andProcurement

Emissions directly

extrapolation

data, Higg Facility

extracted from Higg

Environmental Module

FEM

Tier 3 and 4

Average data

Weight by material

Higg Material

type

Sustainability Index(MSI) LCA number

Other purchased

Spend data

goods and services

Spend on other

DEFRA - Conversion

purchased goods andfactors KgCO2 per £services

spent, by SIC code2020

Cat 2: Capital goods-

Spend data

Spend on capital
goods (i.e., store/
office furniture)

UK DEFRAINDEXSUSTAINABILITY REPORT 2023

— 73

(FEM)

CATEGORY

SUB-CATEGORYQUANTIFICATIONSOURCE OF DATAMETHOD

SOURCE OFEMISSION FACTORS/REFERENCES

Cat 3: Fuel-and energy related

Company-specific

Energy consumption

data

data from G Star’s

activities (not included

operation

in Scope 1 or Scope 2)(Scope 1 and 2)

Cat 4: Upstream-

Average data

Inbound andtransportation andoutbound delivery

distribution

reports

Cat 5: Waste-

Spend data

generated in

UK DEFRAUK DEFRA

Spend on waste

GHG Protocol Scope 3

management

Evaluator

Business air travel

UK DEFRA

operations

Cat 6: Business travel

Business air travel

Average data

recordBusiness rail travel,

Cat 7: Employee

Business rail and road

GHG Protocol Scope 3

road

travel

Evaluator

travel and hotel stays

and hotel stays record-

commutingSpend data

Average data and

Employee numbers,

extrapolationtransport

UK DEFRA

type and distanceassumptions
based on allowancetype

Cat 11: Use of sold-Average data

products

IEA grid factor

product type

Sales volume by

UK DEFRA, wasteof life treatment of-

Average data

product typedisposal methods

sold products

and region

from The World Bank
“What a Waste Global
Database”

Cat 13: Downstream

Emissions forleased assets

tenants in G-Star

Average data

Floor area of tenants

Proxy from Scope 1

in headquarterand 2 emissions

Average data andFranchises’ Sales

IEA grid factor

extrapolation

Surface Area,

headquarters

Cat 14: Franchises-

purchasedvolume from G-Star’s
licenseeINDEXSUSTAINABILITY REPORT 2023

— 74

Cat 12: End

Sales volume by

These tables present the breakdown per site type and location used for Scope 1 andScope 2 calculations:

SITE TYPENUMBER OF SITESCOUNTRYNUMBER OF SITES

Mono Brand Store

54

Austria2

Office5

Bangladesh

1

Office/Showroom

4

Belgium

12

Outlet44

Canada2

Showroom

1

China

1

Warehouse

2

France

21

TOTAL

110

Germany

11

Japan

17

Macau

1

Netherlands

21

South Africa

5

Spain

2

Switzerland

1

USA

13

TOTAL

110

SCOPE 3 - TRANSPORT (TCO2E)

Scope 1

COMPARISON
2021

2022

2023

YoY

vs. Baseline

356

342

367

7%

3%

SCOPE 3 - TRANSPORT (TCO2E)

COMPARISON
2021

2022

2023

YoY

vs. Baseline

Scope 2 (Location-based)

2.848

2.062

2.160

5%

-24%

Scope 2 (Market-based)

3.347

2.748

1.493

-46%

-55%

2023 Scope 2 emissions and comparison vs 2022 and baseline year (2021).

INDEX

SUSTAINABILITY REPORT 2023

— 75

2023 Scope 1 emissions and comparison vs 2022 and baseline year (2021).

The table presents the calculation of Scope 3.

GREENHOUSE GAS PROTOCOL SCOPE 3 CATEGORYDESCRIPTION

Cat 1: Purchased goods & services

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

Cat 2: Capital goods

Emissions from the production and delivery of durable
items, such as office/store furniture and office/store
hardware

Cat 3: Fuel and energy-related emissions not included in

Upstream emissions related to production of fuels andScope 1 or Scope 2

energy consumed by G-Star own operations

Cat 4: Upstream transportation and distribution

Emissions from 3rd party transportation and distribution
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 soldproducts

Emissions from disposal of G-Star sold products

Cat 14: Franchises

Emissions from G-Star’s franchisees and licenseesINDEXSUSTAINABILITY REPORT 2023

— 76

Cat 12: End-of-life treatment of sold products

The table below shows the Greenhouse Gas Protocol Scope 3 categories that were excluded fromthe calculations and their respective justifications.

GREENHOUSE GAS PROTOCOL SCOPE 3 CATEGORYDESCRIPTION

Cat 1: Purchased goods and services (packaging

Excluded due to insufficient data available

materials and financial costs)

Cat 8: Upstream leased assets

All upstream leased assets are captured in Scope 1 and2 emissions

Cat 9: Downstream transportation and 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 13: Downstream leased assets

Energy and heating suppliers are defined by G-Starand tenants at G-Star HQ cannot switch suppliers, so
accounted for in Scope 1 and 2 emissions

Cat 15: Investments

Investment is not a relevant emissions category forINDEXSUSTAINABILITY REPORT 2023

— 77

G-Star based on its business modelOverview purchased electricity.

COUNTRY

PURCHASED

Overview purchased natural gas.

COUNTRY

ELECTRICITY (MWH)

NATURAL GAS(M3)Austria85

Austria

10,798Bangladesh

49

Belgium

61,612

Belgium

561

Canada219

Canada81

Netherlands

44,991

China

3

Total

117,620

France695

Germany

252

Japan

417

Macau

5

Netherlands

4,491

South Africa

111

Spain

7

Switzerland

30

USA

500

TOTAL

7,287

Overview purchased cooling.

COUNTRY

PURCHASED COOLING
(MWH)
194

Please see here the Table for the Country specific Energy breakdown & percentage for Tier 1.
Please see here the Table for the Country specific Energy breakdown & percentage for Tier 2.

INDEXSUSTAINABILITY REPORT 2023

— 78

Japan