ESG Policies and Objectives

The company's global ESG objectives focused on the following policies and identified risks:

- Good Government: have management policies and procedures, gender parity, wage gap.

- Climate: location of operations in nearby environments, CO2 consumption, water footprint, waste management.

- Social: impact of suppliers close to or located outside Europe, implementation of labor disconnection policies, inclusion and diversity policies, and analysis of risks related to collective agreements.

- Technological: incorporation of technological tools for the development of future decarbonization, enhancing energy efficiency and digitalization that promotes transparency and complete traceability of products.

- Regulatory: emergence of new regulations that promote activities linked to the efficient management of organizations or social aspects.

- Reputational: image of the company in relation to the contribution it makes to society and climate change (measures adopted).

- Operational: ability to adapt to changes in processes and systems.

- Credit and market: emergence of new products and services. Changes in supply and demand.

To work on the best sustainability practices, we are going to work on a quantification of risks by modeling their frequency and impact, and adding it through an ESG risk matrix, where we will apply zero tolerance to the risks of compliance with the social governance section. and with greater demands in those related to the environment, both due to regulatory imposition and for the very purpose of minimizing the negative effects of the business.

In addition, we are going to work on a mapping of interest groups, which will allow us to correctly identify the main interest groups and classify them in order of priority. We want to generate trust among the different interest groups (customers, employees, investors, the local community, administrations, etc.), recognizing that the value of the company, in addition to being financial, is a subjective perception that each of these groups has of the company based on its promises, its management, its actions (external and internal) and its ability to meet the expectations generated through its speeches.

Among the first policies in the process of implementation with different Stakeholders:

 Suppliers: travel companions towards inclusive growth:

- Traceability of the entire supply chain, beyond the levels of direct relationship, reaching the suppliers' subcontractors.

- Diversify suppliers and give opportunities to those of smaller size or those made up of groups at risk of exclusion.

- Identify business opportunities in artisanal or other types of products manufactured by disadvantaged communities.

- Carry out diagnoses or audits on suppliers, not only from the point of view of inspection, but with the aim of identifying their needs for support and technical advice.

Employees: Commit to diversity and inclusion in personnel management:

- Develop inclusion and diversity policies and initiatives that go beyond legal requirements.

- Payment of a minimum living wage and social protection. Promotion of diversity and inclusion within the organization.

- Labor integration and training for vulnerable groups or groups at risk of exclusion (over 50 years of age, young people under 25 years of age, immigrants, women victims of violence, among others).

- Time flexibility and work conciliation.

- Decent and motivating work environments.

- Promotion of intra-entrepreneurship and innovation for inclusion.

Consumer: The commitment to transparency and in-person experiences

- Improve transparency about the social and environmental impact of products and services.

- Bet on alliances and new technologies that allow lower transaction costs of the so-called “last mile”.

- Training programs and client/consumer visits to company processes Offer repair services Devise experiential workshops Complement the sale with garment care services, such as dry cleaning.

- Offer services that involve the entire value chain, including upstream (meetings with suppliers, etc.).

- Servitization of the project through lifestyle experiences such as trips to the indigo fields.

- Transformation of the use of operational space for holding events, private meetings or even meet ups.

Local community: a positive relationship with benefits for everyone.

- Establish a relationship of trust and mutual understanding with the different population groups in the local communities where we grow and operate.

- Training and employment incorporation of people belonging to local communities.

- Integration of SMEs and community enterprises as suppliers of the company.

- Philanthropy or social action projects.

Investors as drivers of sustainable business models:

- Ensure sustainable business activity that respects human rights, avoiding negative impacts throughout the value chain, including the supply chain.

- Ensure respect for Human Rights.

- Incorporate effective policies and systems that avoid corporate governance behaviors that may compromise the company's mission and vision.

- Reliably measure ESG variables, so that investors can evaluate the reality of the company and also its evolution over time and the intensity of the efforts carried out.

- Communicate consistent information regarding the company's performance in ESG aspects.

- Transparently manage media exposure of the company's activity and reputation risks.