Didriksons sustainability report 2024

BP-1 General basis for preparation of sustainability statements

BP-2 Disclosures in relation to specific circumstances

This report is written with inspiration from ESRS, which means that data points previously available are published, while those data points that are mandatory to report but have not previously been collected may not necessarily be published in this year’s report. Didriksons intends to improve its sustainability reporting over time, in line with the adoption of the CSRD omnibus proposal.

GOV-1 Role of the administrative, management and supervisory bodies

Didriksons’ governance consists of the Board of Directors, the Management Team, and a cross-departmental leadership team (also referred to as the X-team).

As of 31 December 2024, the Board of Directors of Didriksons consisted of four members, all of whom are non-executive. Sector-specific expertise in textile production is represented among the members. The Board is composed of 50% women and 50% men. At board meetings, two employee representatives are present, who have the right to express their views but are not members of the Board. 25% of the Board members are independent of the operations.

The Board ensures that members of the Management Team possess appropriate competence in sustainability matters. This is partly achieved through an ESG management function at Didriksons’ principal owner, Adelis Equity, which supports and drives the Board’s focus on sustainability. One of Didriksons’ three core values is Responsibility. The Management Team and respective organisational units are responsible for integrating responsible and sustainable conduct into their part of the business. Within the organisation, under the Head of Purchasing, there is a CSR Manager whose main responsibility is to develop and lead the company’s CSR strategy and manage the day-to-day CSR processes for Didriksons. The CSR Manager leads an appointed CSR group consisting of expertise from the Management Team and relevant departments within the company. The purpose of the group is to ensure that the CSR strategy is implemented consistently throughout the entire organisation, involving all areas and departments.

The Board of Directors:

• Approves sustainability reporting
• Approves sustainability strategies
• Conducts annual follow-up and revision of sustainability performance

Management Team:

• Approves sustainability goals
• Are responsible for implementing sustainability efforts within their respective departments

CSR Manager:

• Establishes sustainability strategies and targets, and is responsible for outcomes
• Integrates the evaluation of impacts, risk and opportunity into strategy
• Ensures updated policies and progress in sustainability development

GOV-2 Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies

Sustainability matters are regularly discussed by the Board and the Management Team, and material impacts, risks and opportunities are integrated into business decisions. The Board routinely discusses sustainability issues related to the various departments, with management from each department represented at these discussions. CSR is a recurring annual agenda item at Board meetings, during which material impacts, risks, and opportunities are discussed in relation to objectives, key figures, and the actions taken to reduce Didriksons’ negative impact.

The CSR Manager continuously informs the Cheif of Sourcing, who passes the information on to the Management Team and Cheif of Sourcing is therefore also responsible for driving the sustainability work within the Management Team. Progress against targets is followed up annually in the sustainability reporting.

The material risks and opportunities identified during 2024 through the double-materiality assessment were developed in collaboration with the relevant members of the Management Team, and the results were discussed with the Board. See section SMB-3 for the list of material areas for Didriksons that were also discussed.

GOV-3 Integration of sustainability-related performance in incentive schemes

Neither the Board of Directors nor the Management Team are included in any incentive schemes or remuneration policies linked to sustainability or climate targets.

GOV-4 Statement on due diligence

Didriksons’ due diligence process is based on the requirement that all supplier partners must sign and adhere to Didriksons’ Code of Conduct for Suppliers, and ensure that any subcontractors they use comply with the requirements outlined therein. Didriksons has adopted the Amfori BSCI Code of Conduct, which aligns with the UN Guiding Principles on Business and Human Rights and is based on the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct.

As part of the procurement process, ongoing checks of social and environmental risks are conducted, along with requirements for corrective actions. Didriksons builds its knowledge of suppliers through frequent on-site presence, where dialogue focuses on maintaining and challenging high social and environmental standards. Cooperation with relevant stakeholders is a central component of Didriksons’ due diligence efforts and long-term relationships, aimed at continuously working to reduce the company’s negative impact through its operations.

To monitor supplier compliance with the Code of Conduct, internal audits are conducted during visits as well as third-party social audits. Since 2024, Didriksons has been a member of Amfori in order to, together with other members, ensure and drive improvements concerning environmental considerations and respect for human rights in procurement. Through Amfori, social audits are coordinated, forming the basis for identifying negative impacts. When risks are identified, an action plan is developed by the respective supplier, which is followed up by the procurement team.

GOV-5 Risk management and internal controls over sustainability reporting strategy

Didriksons’ process for managing risks that may affect the reliability and accuracy of sustainability data collection involves multiple stages of internal and external review. The data is collected at each respective department, broadly categorised into environmental and social areas. Each department is responsible for implementing controls to ensure the reliability of the data collected through comparisons with previous years (where data is available) and through knowledge of reasonable outcomes within each area. Internal control is monitored by an internal audit to ensure that the information in the reporting is accurate. The internal audit is carried out by the full sustainability reporting project team, which includes members of the Management Team, and is reviewed by the CEO, the Board of Directors, and the ESG function at Didriksons’ ownership level. External review is conducted by auditors.

The main risks to which sustainability reporting is exposed include errors due to human mistakes or insufficient data. Deviations from the previous year are analysed to reduce this risk. An elevated risk is also associated with data collected from stakeholders in the upstream part of the value chain. Therefore, third-party consultants are used to calculate and validate emissions figures.

SBM-1 Strategy, business model and value chain

Didriksons is an international jacket company, founded in 1913 with the aim of creating long-lasting, high-quality clothing that offers protection against the elements. Today, the company’s vision is to inspire outdoor interaction, promote a healthy lifestyle, and strengthen social connections. The company’s goal is to offer durable jackets with a timeless design that become trusted companions throughout life and can be passed on to future generations.

Didriksons offers outerwear for women, men, and children. Sales are made through both its own channels and resellers. Own sales are conducted via a limited number of proprietary physical stores, physical stores with consignment sales, its own e-commerce site, and digital marketplaces. Didriksons’ largest markets are Germany and Sweden. No new markets were entered in 2024.

Information on the number of employees by geographic area is available in section S1-6. Didriksons is not involved in any type of products or services that are prohibited in certain markets, such as the production of fossil fuels, weapons, or tobacco.

Didriksons’ sustainability strategy is to care for people and use resources responsibly throughout the entire value chain. Strategic goals such as improving traceability and thereby knowledge of the value chain support informed decision-making that drives sustainable development in both environmental and social aspects. Strategic focus areas have been defined within environmental and social responsibility, where Didriksons is responsible for actively driving improvement within its operations and value chain.

These areas include labour rights in the value chain, such as child and forced labour, material use, water consumption, circular products, and climate change mitigation.

Didriksons’ strategic areas are linked to the UN Sustainable Development Goals (SDGs), which the company can promote through its daily operations, thereby reducing its negative impact. To further strengthen its sustainability focus, Didriksons has internally prioritised two key areas: water and responsible consumption and production. Key performance indicators are tied to each sustainability area and are followed up annually. The sustainability goals apply to Didriksons’ products and services, customer groups, and markets.

The prioritised areas are as follows:

Clean Water and Sanitation (SDG 6)

One of Didriksons’ top priorities is to reduce water consumption and improve water quality.

Decent Work and Economic Growth (SDG 8)

For Didriksons, it is crucial to ensure that everyone working for the company, regardless of their position in the value chain, has decent working conditions and a safe working environment.

Responsible Consumption and Production (SDG 12)

In order for Didriksons to continue producing goods, production processes must be continuously improved to minimise their impact on the ecosystem and reduce their environmental footprint. Extending garment lifespan and contributing to circularity are also part of Didriksons’ responsibility.

Climate Action (SDG 13)

Didriksons’ goal is to reduce the use of the world’s resources by using materials as responsibly as possible, and by transitioning to renewable energy and improving energy efficiency across the value chain.

Partnerships for the Goals (SDG 17)

Strengthen partnerships throughout the value chain to meet sustainability challenges and drive transition collaboratively.

Business model and value chain

Didriksons’ value chain is global. It largely consists of activities related to production, warehousing, distribution, consumer use, and product end-of-life. Throughout the value chain, Didriksons impacts people and the environment globally. Material sourcing and garment production primarily take place in Asia, with global transport routes spanning continents. In Europe, activities include warehousing, distribution, retailers, consumer-related flows, product circularity, and end-of-life management for products and services. Distribution and consumer activities take place across much of Europe and on a smaller scale in North America. Didriksons has significant influence and responsibility for everyone involved in its value chain.

The value chain consists of several critical activities upstream, within its own operations, and downstream. The main activities include the procurement of raw materials, labour, and resources such as energy and water. Methods for collecting and securing resources such as raw materials, water, and energy are described in E1, E3 and E5. The measures for securing human rights for Didriksons’ own workforce are outlined in section S1. Methods for safeguarding human rights in the value chain include long-term partnerships and active efforts as members of Amfori, through which third-party social audits are conducted.

The main stakeholders and activities in Didriksons’ value chain:

Upstream

• Extraction of raw materials
• Processing of raw materials
• Material production
• Garment production
• Transport of materials and products
• Warehousing via third parties
• Sales via third-party channels
• Other suppliers

Own operations

• Employees
• Own facilities (head office, warehouse, sales offices)
• Own sales channels

Downstream

• Resellers
• End-use
• Circular product flows
• End-of-life flows for products

SBM-2 Interests and views of stakeholders

Didriksons places high value on partnership and collaboration, and therefore considers it very important to involve various stakeholders to gain valuable insights into which sustainability areas should be prioritised in relation to its operations and value chain. By gaining a deeper understanding of stakeholders’ interests, Didriksons enhances its ability to shape a business that creates value for its stakeholders, thereby building a long-term action plan. Stakeholders’ dialogue will be followed up annually to ensure that stakeholders' perspectives are considered. The insights gained from these dialogues are considered when updating the strategy. Analysis of stakeholders' views and interests is shared with relevant parts of the Management Team and the Board of Directors during the review of the materiality assessment results.

The table below presents Didriksons’ key stakeholders, how they have been involved, and the insights gained from the stakeholder dialogue.

SBM-2 S1 Interests and views of stakeholders related to own workforce

Respect for human rights is a fundamental part of Didriksons’ operations, strategy, and business model. There is zero tolerance for discrimination, harassment, sexual harassment, and bullying.

Each year, the interests, opinions, and rights of Didriksons’ employees are gathered through an anonymous employee survey. Information regarding employee well-being is also collected through performance reviews conducted semi-annually. Feedback from these surveys and discussions helps managers and leadership identify areas for improvement based on employees’ needs and reduces the risk of negative consequences.

SBM-2 S2 Interests and views of stakeholders related to workers in the value chain

Respect for the human rights of workers in the value chain is central to Didriksons’ operations, strategy, and business model. The procurement strategy includes due diligence processes to respect the interests, perspectives, and rights of workers in the value chain. This is identified through long-term partnerships, a small number of supplier partners, and through frequent visits and dialogue with supplier partners within the value chain. Through the procurement process, risks to human rights are continuously identified and analysed, and identified impacts serve as a basis for developing procurement processes and business plans.

The business model is built on a global value chain, which increases the risk of human rights violations. The business decisions Didriksons makes and the requirements placed on supplier partners directly affect workers in the value chain.

Didriksons continuously works to build a deeper understanding and traceability in its value chain and, through a due diligence process in accordance with the procurement policy, reduce the negative impacts that may arise in the global value chain in which Didriksons operates.

Through its membership of Amfori, Didriksons collaborates with other parties to conduct third-party audits in accordance with the Business Social Compliance Initiative (BSCI), where compliance with the Supplier Code of Conduct is reviewed. Through these audits, feedback on working conditions is collected, which is regularly reviewed and forms the basis for ensuring respect for workers’ human rights in the value chain.

SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model

This section is followed by a table describing the material impacts, financial risks and opportunities that have been identified during the double materiality assessment, which fall within the following topic-specific standards:

• E1 Climate Change
• E2 Pollution
• E3 Water and Marine Resources
• E5 Resource Use and Circular Economy
• S1 Own Workforce
• S2 Workers in the Value Chain
• S4 Consumers and End Users

The identified material impacts, financial risks and opportunities have current and potential effects on Didriksons’ value chain, business model and strategy, as well as on decision-making. The results of the double materiality assessment are used to strengthen strategic work. Currently, there is no process for integrating the identified impacts, risks and opportunities into the value chain, business model, strategy, or decision-making.

The current material impacts, financial risks and opportunities correspond to the sustainability areas previously identified by Didriksons as material. A change in method has occurred, as the financial perspective was not previously considered in the assessment.

One sustainability topic that was not identified as material for Didriksons to report on is Corruption and Bribery, which is often viewed as a significant risk for a global value chain. Based on the IRO scoring, this area fell below the reporting threshold. Didriksons’ anti-corruption policy, which is signed by all employees, reduces the risk of bribery and corruption within its own operations. There is a potential risk of negative impact in the sales stage of Didriksons’ products via agents, which represents a minor share of Didriksons’ total business, and the consequence is local, resulting in a low impact score. The financial risk—fines and reputational damage—is assessed as medium based on the financial thresholds set, while the likelihood is considered low due to Didriksons’ strong control over its value chain. More about Didriksons’ work to prevent bribery and corruption can be found in section S2 Workers in the Value Chain.

IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities

In 2024, Didriksons conducted a double materiality assessment to identify the company’s impacts, risks and opportunities related to sustainability issues. The analysis takes into account both impact and financial materiality, meaning both the effects on people and the environment, as well as how Didriksons is financially affected by external sustainability-related factors. These have been analysed as risks and opportunities to the business in terms of sustainability.

E1-1 Transition plan for climate change mitigation

Didriksons’ goal is to achieve an absolute reduction of greenhouse gas emissions by at least 50% by 2030, compared to 2018 for scopes 1 and 2, and 2020 for scope 3. This goal aligns with the Paris Agreement, which aims to limit global warming to 1.5°C.

Since 2019, Didriksons has been a member of STICA (The Scandinavian Textile Initiative for Climate Action). STICA’s objective is to collaborate with textile companies to reduce the industry’s total greenhouse gas emissions, in accordance with the UN’s climate change framework and the aforementioned Paris Agreement. The initiative provides a platform for members to collaborate, share best practices, discover new solutions, and access climate-specific data and innovations.

In line with the Greenhouse Gas (GHG) Protocol, Didriksons annually maps its greenhouse gas emissions in scopes 1, 2, and 3 in order to understand impacts throughout the value chain and focus actions where the impact is greatest.

Emissions from the category Purchased Goods and Services, followed by Transport and Distribution, represent Didriksons’ largest climate impact and are therefore its main focus areas for reduction measures. Identified improvements include continued transition to renewable energy, phasing out fossil fuels, and selecting more sustainable transport methods. Conscious material choices have been identified as absolutely necessary to achieve the climate goal. Accordingly, Didriksons continues its work to increase the proportion of recycled and organic materials in its products and to raise the use of solution dyed fabrics—a dyeing method that saves water, chemicals, and energy.

In its efforts to improve the company’s production footprint, long-term partnerships are a key driver and enabler of change. Collaborating with carefully chosen partners allows for deep insight into the value chain’s impact, which forms the basis for informed decisions to mitigate climate change. Didriksons works to increase traceability in the value chain through careful selection of production facilities. Achieving the climate goal requires collaboration across the entire value chain.

Didriksons has always stood by the principle of protecting and taking responsibility for the resources the company uses. Its goal is to leave as small a climate footprint as possible within its value chain. In 2024, Didriksons began defining its transition plan, while integrating the identified priority initiatives into the company’s forward-looking strategy. In 2025, Didriksons will continue to advance the transition plan for reducing climate impact by quantifying the effect of current measures and identifying additional areas to support the transition plan in achieving the climate target.

Didriksons’ transition plan has not yet been finalised and is therefore not approved by the Board of Directors, nor aligned with the company’s business strategy or financial planning. However, already implemented measures that underpin key performance indicators have been approved by the Board and are followed up annually.

E1-2 Policies related to climate change mitigation and adaptation

Didriksons has developed an Environmental Policy that takes into account its material impacts, risks, and opportunities related to climate change mitigation and adaptation. The policy describes Didriksons’ commitment to respecting the environment and protecting the climate within its own operations, the upstream and downstream value chain, as well as in procurement, manufacturing and logistics.

The policy includes Didriksons’ commitments and actions related to:

• Climate change
• Pollution
• Water
• Biodiversity and ecosystems
• Circular economy and resource use

Didriksons has committed to reducing total greenhouse gas emissions in scopes 1, 2 and 3 by 50% by 2030, which aligns with science-based targets and the 1.5°C goal of the Paris Agreement. The Environmental Policy includes:

Climate change mitigation

A focus on reducing greenhouse gas emissions, particularly within the supply chain through low-carbon materials, renewable energy, and intensified collaboration with suppliers.

Climate change adaptation

A focus on developing and adapting to climate change in Didriksons’ business strategy, including strategic procurement, sales and growth plans. Emphasis is placed on involving all areas and departments of the company, and on advancing the circular economy through improved industry collaboration.

The Environmental Policy serves as the foundation for transitioning Didriksons’ operations—including transport and supply chains—to renewable energy sources and improved energy efficiency. Special emphasis is placed on decarbonising textile processing and manufacturing, and on increasing the use of materials with lower climate impact, as these are the areas where Didriksons has the greatest footprint.

E1-3 Actions and resources in relation to climate change policies metrics and targets

Didriksons focuses on actions that contribute to decarbonising the company’s operations and value chain across scopes 1, 2 and 3. These actions include transitioning to fossil-free and renewable energy sources, improving energy efficiency, reducing emissions from transport, and altering and developing material choices and processes within the supply chain.

E1-4 Targets related to climate change mitigation and adaptation

Didriksons has set climate-related targets that align with its Environmental Policy for adapting to and mitigating climate change.

E1-5 Energy consumption and mix

Energy consumption data is based on a combination of primary data and estimates, and includes both consumption and energy sources. To ensure a conservative methodology, the source is assumed to be fossil-based when the energy source is not clearly specified. Didriksons’ energy consumption is purchased. Within its own operations, Didriksons purchases electricity from renewable sources where it is possible to sign such agreements.

Didriksons operates in a sector with high climate impact, as its operations fall under Section G, Wholesale and Retail Trade, according to the Statistical Classification of Economic Activities in the European Community, abbreviated as NACE.

E1-6 Gross Scopes 1, 2, 3 and total greenhouse gas emissions

According to the GHG Protocol guidelines for scope 2, emissions from electricity consumption are calculated using either a location-based method or a market-based method. For Didriksons’ climate accounting, the market-based method is used. The table below shows the difference between the two methods:

E1-6 Greenhouse gas intensity per net revenue

Below is a statement showing Didriksons’ greenhouse gas intensity per net revenue for the year 2024 compared to the previous year, and relative to the base year.

E2-1 Policies related to pollution

How Didriksons works to reduce its pollution-related impact is described in the company’s Environmental Policy. As the company operates within the EU, it complies with legislation governing the sale of goods within the European Union. Didriksons takes a long-term and proactive approach to minimising its footprint in raw material extraction and material production processes—beyond existing legislation—where better alternatives are identified.

E2-2 Actions and resources related to pollution

Examples of measures include phasing out chemicals that affect air, water, or soil. Per- and polyfluoroalkyl substances (PFAS) were identified early by Didriksons as a concern—PFAS are chemicals used to achieve water repellence in functional outerwear. The use of PFAS for water repellence was phased out by Didriksons in 2015 and has not been used since. The phase-out required significant effort and resources and initially impacted both performance and cost.

In 2024, Didriksons became GOTS certified and has set the goal to exclusively use GOTS-certified cotton in its cotton products. This certification ensures reduced impact on soil and reduced chemical use from farmer to consumer.

Another ongoing measure is Didriksons’ decision to phase out the use of coatings in its waterproof materials, opting instead to use laminates and a lamination process to achieve the same functionality. This action aims to minimise risks and impacts associated with potential solvents used in coatings—for example, risks and effects related to working conditions and air pollution.

Didriksons actively participates in seminars and other initiatives to both understand and share knowledge about risks and opportunities related to reducing impacts in various respects.

Didriksons supports various community organisations that inspire and contribute to improvement efforts and ecosystem restoration. One such organisation is World Ocean Day. Another is Sportfiskarna, with whom Didriksons has collaborated for several years. Sportfiskarna leads a number of initiatives aimed at improving aquatic ecosystems and reducing pollution linked to water environments.

E2-3 Targets related to pollution

Didriksons has several established goals and key performance indicators related to reducing its impact on air, water, and soil. One of the key indicators is the proportion of textile material dyed using the solution-dyed technique rather than traditional dyeing of synthetic materials. This metric aims to reduce the impact on water resources and water pollution.

E2-5 Substances of concern and substances of very high concern

PFAS have long been substances present in the textile industry that have raised concern. Didriksons has phased out these substances since 2015. Didriksons also aims to phase out coatings in favour of lamination processes for waterproof materials. This decision is based on the concerns described above and means that Didriksons goes beyond the requirements of current legislation.

E3-1 Policies related to water and marine resources

How Didriksons works to reduce its impact on water and marine resources is described in the company’s Environmental Policy. As the company operates within the EU, it complies with the legislation applicable to the sale of goods within the EU. Didriksons works long-term and proactively to minimise its footprint in materials and processes, beyond the legal requirements, wherever better alternatives are available.

E3-2 Actions and resources related to water and marine resources

Protecting water has always been an important priority for Didriksons. This is due to the significant impact textile production has on water generally, but also due to the company’s history. One of Didriksons’ highest priority goals is to reduce water consumption and improve water quality throughout its value chain. This is achieved by working with a small number of carefully selected partners, through innovative technology, and through the choice of materials and manufacturing processes. Synthetic materials are prioritised over cotton not only because they are more durable, but also because their water use is significantly lower. Another advantage is that with synthetic materials, the fibre can be dyed during manufacturing, instead of being dyed in water baths after the fabric has been woven.

By limiting the number of suppliers that produce textile materials for Didriksons, the company can monitor and develop these partners to a greater extent. Didriksons favours suppliers that can demonstrate progress and improvements in water consumption and have ensured safe handling of process water, either through reuse, in-house treatment, or connection to municipal water treatment facilities.

Since 2015, Didriksons has implemented the solution-dyed technique in its production process and continues to expand the use of water-saving dyeing technologies and responsible design development.

The water-saving measures described above go entirely beyond current legislation, as there are no legal requirements on water consumption.

E3-3 Targets related to water and marine resources

Proportion of textile material dyed using solution-dyed technology instead of traditional dyeing of synthetic materials, with the aim of reducing the impact on water resources and water pollution.

E5-1 Policies related to resource use and circular economy

Since the company’s founding, the driving force has been to focus on high-quality products with durability as the highest priority. This has been Didriksons’ main focus for all product development and is clearly linked to the company’s core values: Innovation, craftsmanship, and responsibility. The company firmly believes and understands that the longer its products can be used, the smaller their impact will be. This includes both the physical durability and the emotional durability of a product. More information can be found in Didriksons’ Design Policy.

Knowing that Didriksons’ total impact lies within scope 3 and the category Purchased Goods and Services, the company’s focus is on reducing impact and resource flows there. This also includes adopting circular principles in everything from material production and design processes to enable a longer use phase of the products, as well as improving opportunities for product repair and simplifying recycling processes.

Therefore, the most important aspect when initiating a new product is durability, meaning wear resistance—the cornerstone of circular thinking. In addition, Didriksons has several initiatives underway within the circular economy and has chosen to highlight them under the following topics, where a product can be designed to meet several of these initiatives.

Didriksons has long prioritised quality and durability. In 2024, both the Environmental Policy and the Design Policy were updated to ensure that design principles and environmental efforts go hand in hand, taking significant steps toward circular thinking across all processes.

E5-2 Actions and resources related to resource use and circular economy

Below is a description of Didriksons’ initiatives that inspire and contribute to a circular transition:

Durability

• Didriksons prefers to use polyamide over polyester due to the superior durability of polyamide.
• Didriksons’ Design Policy includes goals such as: “Didriksons’ products should last longer than equivalent products on the market.”

Reusability

• Didriksons uses “Extend size” in its children’s clothing to prolong potential usage time.
• Didriksons has implemented digital QR codes in its products, allowing product information to follow the garment. This enables consumers to access information at the time of purchase or later, should they wish to resell the item on the second-hand market.
• Didriksons supports initiatives and platforms that facilitate consumer-to-consumer trade.
• Didriksons encourages children to view a second-hand or inherited item as something positive.

Repairability

• Didriksons encourages consumers to extend the lifespan of products through communication about how to “care for and repair” garments. The company provides repair patches and spare parts such as buttons and zippers. Products are designed with repairability in mind, such as garment constructions where a broken zipper is easy to replace.

Disassembly

• Didriksons’ Design Policy encourages design concepts that make it easier to disassemble and replace parts of garments—for example, the design of foot straps on children’s clothing—which is further supported by enabling consumers to purchase new parts instead of new garments.

Refurbishment

• Thanks to Didriksons’ monomaterial design philosophy, where fabrics avoid mixing fibre types, it is possible for factories to return production waste for recycling rather than treating it as waste.

Recycling

• Didriksons measures the proportion of recycled materials used in its products.
• The company has a monomaterial design initiative, where products are made using only one material type to enable and simplify the recycling process.

Didriksons’ Design Policy also addresses other potential areas for optimisation in products and material usage.

E5-3 Targets related to resource use and circular economy

Currently, there are no established targets for measuring resource use and circular economy. The company intends to set targets related to this area in 2025. Waste from internal operations is currently measured.

E5-4 Resource inflows

The majority of material flows associated with Didriksons’ operations fall under raw materials, product components and packaging materials. The company measures and evaluates the various materials used in its products. Didriksons sees this as an important tool for analysis and knowledge-building to enable informed decisions that reduce impact where it is greatest. The data in the tables below refers to products delivered to Didriksons’ warehouse in 2024.

As an example, Didriksons considers polyamide a prioritised material for extending garment life. At the same time, the company knows through third-party analyses that the material has a significant impact on emissions, accounting for 14.4% of total material weight but 31.1% of material-related emissions. Didriksons actively works to improve the impact of resource inflow through new materials and manufacturing processes that drastically reduce emissions across the value chain of polyamide production. In 2024, the company launched the results of a pilot project for polyamide with a lower climate footprint, where traceability throughout the value chain and local production were also key factors.

E5-5 Resource outflows

S1-1 Policies related to own workforce

Didriksons has adopted policies and governance documents that address risks and opportunities related to its own workforce. These documents are available to all employees in Didriksons’ HR portal:

• Human Rights Policy
• Code of Conduct
• Whistleblower Policy
• Data Privacy Policy
• Anti-Corruption Policy

S1-2 Processes for engaging with own workers and workers’ representatives about impacts

Didriksons has established procedures for engaging with employees and employee representatives on actual and potential impacts on the own workforce. The Code of Conduct outlines the expectations for employee behaviour, providing guidance in daily work and serving as an ethical compass. Communication with employees primarily takes place through line managers and internal channels such as the HR portal and meetings, both physical and digital. Each month, a digital all-staff meeting is held where employees are invited to ask questions anonymously to Didriksons’ CEO and management. In Sweden, there is ongoing dialogue with trade union representatives and health and safety representatives in accordance with collective agreements.

Employee appraisals and employee surveys are additional means of communication. Through a collaboration with Great Place to Work, employees have the opportunity to provide anonymous feedback on the organisation and their own wellbeing.

S1-3 Processes to remediate negative impacts and channels for own workers to raise concerns

Didriksons fosters an inclusive and responsible culture where all employees are encouraged to act ethically, take responsibility, and speak up in the face of any potential or actual misconduct.

Employees may report concerns or suspicions by contacting their immediate manager or HR. They may also use the formal whistleblower function outlined in Didriksons’ Whistleblower Policy.

S1-4 Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions

Didriksons has implemented policies and systematic occupational health and safety procedures to ensure its practices do not adversely affect employees. Ongoing training and open dialogue contribute to a safe working environment. The company’s operations are driven by a strong focus on sustainability, which includes sustainable people—ensuring work-life balance and maintaining a respectful, supportive, and inclusive work climate.

Didriksons has a zero-tolerance strategy towards bribery and corruption, as outlined in the Anti-Corruption Policy, which all employees sign upon employment.

The company strives to offer a safe and engaging work environment and to create the conditions for strong performance and long-term relationships. Sustainable employees build sustainable customer relations, which in turn lead to sustainable business results. An onboarding programme ensures that new employees gain an understanding of the company and its operational routines, laying the foundation for effective collaboration. The introductory days offer a platform to discuss Didriksons’ values, work processes, responsibilities, and to welcome new employees.

Each worksite undergoes an annual health and safety review. Deficiencies are risk-assessed, and actions are taken and followed up through meetings with the Health and Safety Committee.

To support managers and employees in health-related matters, Didriksons in Sweden uses a nationwide occupational health service provider, offering preventative, curative, and rehabilitative services.

Pay and benefits are key components in working conditions and help attract and retain talent. In Sweden, minimum wages are set through collective agreements.

Learning and development are crucial to Didriksons’ workplace strategy. It takes place in many forms—formal training and collaborative learning during daily tasks. Employees are encouraged and supported to take responsibility for their own development and employability, with opportunities to develop relevant competencies for both current and future roles.

The effectiveness of these measures is monitored through key performance indicators such as staff turnover, training hours, sick leave, pay gap, gender balance, and employee engagement.

S1-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities

One of Didriksons’ key targets for its own operations is the level of employee engagement, measured through the Great Place to Work employee survey via the Trust Index. A minimum score of 70% is required to achieve certification. In 2024, the result was 82%.

Systematic efforts to prevent workplace issues and reduce illness are measured through short-term sick leave, which is targeted to remain below 2%. In 2024, the average was 1.2%.

To promote an inclusive and equal workplace, Didriksons also aims for gender balance, monitored through indicators such as pay gap and gender distribution.

S1-6 Characteristics of the undertaking’s employees

The number of employees (headcount) refers to the total number of people employed within the group at the end of the reporting period. The average number of employees is calculated as the annual average number of full-time equivalents (FTEs).

S1-8 Collective bargaining coverage and social dialogue

All employees in Sweden are covered by collective agreements, except for the CEO. This means that a total of 71% of employees are covered by collective agreements. The remaining employees are not covered by such agreements. For employees not covered by collective agreements, working conditions are primarily governed by the labour laws of the respective country.

S1-9 Diversity metrics

Calculations and data regarding gender and age are based on the employee’s personal identification number and legal gender (female/male). They are not based on self-identified information.

S1-10 Adequate wages

Didriksons conducts an annual review to ensure that all employees receive an adequate wage that aligns with the prevailing benchmark salary in each operational country and complies with legal regulations and collective agreements.

S1-13 Training and skills development metrics

Employee development is essential in Didriksons’ sustainability focus for fostering engaged employees. The average number of training hours per employee in 2024 was 13 hours.

S1-14 Health and safety metrics

The table below reports internally registered occupational accidents in the form of work-related injuries and illnesses. Reported injuries have occurred due to or at the workplace. Didriksons has not included accidents related to commuting to or from work.

S1-15 Work-life balance metrics

All employees at Didriksons are entitled to parental leave in accordance with collective agreements or local legislation. In 2024, eight employees took parental leave for a continuous period of at least one month. The proportion of men was 0%.

S1-16 Compensation metrics

The pay gap between women and men amounts to 20%. The wage gap is calculated as the difference between the hourly wage for all men and the hourly wage for all women, in relation to the men’s hourly wage. The scope of application includes all employees in the Group, excluding the Group’s CEO.

Policies for workers in the value chain

Didriksons’ production takes place primarily in high-risk countries, which increases the risk of shortcomings in human rights and working conditions. Didriksons’ Supplier Code of Conduct addresses critical issues of heightened importance in such regions. These include:

• Forced labour
• Human rights
• Child labour
• Discrimination
• Wages and benefits
• Working conditions
• Working hours
• Freedom of association
• Corruption
• Environment
• Laws

In 2024, Didriksons established a Procurement Policy that describes the company’s risk management practices in the value chain. The purpose of this policy is to define key parameters and requirements considered when establishing new partnerships and the criteria used to evaluate existing suppliers through documented processes, aiming to promote sustainable business practices throughout the value chain.

Procedures

Didriksons’ work on sustainable supply chains is based on its procurement and audit process, which includes sustainability criteria in procurement, sustainability clauses in contracts, and follow-up and improvement of existing suppliers. Didriksons aims to challenge and maintain high standards for social, environmental, and product performance based on long-term relationships, with as few suppliers as possible. Therefore, Didriksons only works with 18 garment suppliers, with the longest partnership spanning 24 years.

To become a partner to Didriksons, suppliers must meet requirements concerning social, economic, and environmental responsibility. This includes signing and complying with Didriksons’ Supplier Code of Conduct, which is based on Amfori BSCI, and ensuring that any subcontractors follow the same policy.

To maintain a strong presence in countries where the majority of production occurs, Didriksons has offices in China and Bangladesh. Employees at these offices carry out quality inspections and monitor compliance with Didriksons’ production manual, DryBook, which includes the Supplier Code of Conduct. Quality control tools also track the production location to ensure that manufacturing takes place at the planned site rather than with subcontractors, reducing the risk of delays for customers.

Since 2024, Didriksons has been a member of Amfori BSCI (Business Social Compliance Initiative), an international framework aimed at improving working conditions in global supply chains. In addition to internal monitoring, supplier audits are conducted through Amfori BSCI audits. As a result, all Didriksons suppliers have been evaluated and possess a valid audit report from Amfori. For suppliers not affiliated with Amfori BSCI, equivalent evaluations can be verified via valid audit reports or certifications under recognised standards such as WRAP, SA8000, or SMETA 4-pillar. Any deviations identified in social audits are categorised by risk level and corrected via an action plan developed by the Procurement Manager in collaboration with the supplier. Implementation of corrective actions is followed up by the site manager to ensure compliance.

Actions

General risk areas in the textile industry include human rights and working conditions, often linked to production in countries with weak or poorly enforced legislation. A clearly defined and enforced supplier code is essential to safeguard fundamental rights and social standards. Didriksons’ strategy for verifying compliance is to maintain control over the value chain according to the procedures described above, which influences the company’s selection and number of suppliers in both first and second tiers. By working only with carefully selected partners who share Didriksons’ values – where price is not the determining factor – the company contributes to fair working conditions, health and safety, and fair wages.

Another benefit of working with a limited number of suppliers is maintaining presence in the production process via Didriksons’ own local staff in Asia, as well as regular visits from head office personnel. Frequent presence supports dialogue around production and social conditions across the supply chain. In connection with its own quality control checks, any deficiencies identified are reported to the responsible party for action. Didriksons had no reported cases of human rights violations in 2024, consistent with 2023.

Production-related risks increase where regular physical presence is not possible – e.g., due to higher costs, complex logistics, and vulnerability to delays. These risks can be reduced by placing production closer to Didriksons’ core markets, allowing for better oversight, shorter lead times, and more efficient delivery management. The risk is also reduced by employing local staff near production, which Didriksons has in China and Bangladesh.

Another identified risk area relates to materials manufacturing, the stage before garment production, where chemical use is central. There are also increased risks in relation to subcontractors, over whom Didriksons has no direct visibility or control. Therefore, Didriksons requires that first-tier suppliers take responsibility for compliance with governing documents also in subsequent tiers. To mitigate these risks, Didriksons has several initiatives to limit chemical use and thus reduce workers’ exposure to hazardous substances, as described further under the Pollution section.

Didriksons values long-term partnerships with its suppliers but also recognises the risks involved. Close partnerships can become more than purely business-oriented, potentially increasing the risk of corruption. Didriksons enforces a zero-tolerance policy against bribery and corruption, governed by its Supplier Code of Conduct and Anti-Corruption Policy, which suppliers are required to follow. The purpose of the Anti-Corruption Policy is to ensure that corruption is prevented in all operations under Didriksons’ influence. The risk of corruption is considered highest during order placement with subcontractors, with bribery being the primary risk. To minimise this, Didriksons maintains continuous communication with suppliers. Employees working with these matters are trained in the Anti-Corruption Policy and in identifying and handling such risks. Supplier selection is determined in the garment specification process, and the product department is responsible for deciding which suppliers are included. No incidents or reports of non-compliance with Didriksons’ governing documents or zero-tolerance policy were submitted in 2024, consistent with 2023. This is the result of Didriksons’ clear strategy of maintaining control over the value chain.

Partnerships

Didriksons aims to maintain long-term, respectful partnerships with a small number of carefully selected suppliers who share its goals and values. To monitor its level of partnership, Didriksons tracks the total number of garment suppliers (18), the number of garment suppliers responsible for producing 75% of purchase volume (7), and the total number of nominated fabric suppliers (12). Since 2018, the number of fabric suppliers has been reduced by more than 50%, which is the result of Didriksons’ strategy to consolidate fabric suppliers. With fewer suppliers, Didriksons gains better control of the entire value chain — a crucial step toward full transparency.

Didriksons’ garment suppliers per country:

• China: 10
• Bangladesh: 2
• Vietnam: 2
• India: 1
• Sri Lanka: 1
• North Macedonia: 1
• Sweden/Poland: 1 (Knitting and major production in Sweden; sewing in Poland)

Compliance with supplier code of conduct

100% of Didriksons’ first-tier suppliers have signed the Supplier Code of Conduct.

In 2024, Didriksons joined Amfori to ensure compliance through third-party audits. For production units located in risk countries, 85% held a valid third-party audit report from Amfori or equivalent organisations. The target for 2025 is for 100% of all such suppliers to have undergone a third-party social audit.