Throughout our value chain, we adopt a comprehensive approach to managing environmental impact, focusing on safer input chemicals and cleaner wastewater output. Through our advanced chemical management program, we are dedicated to minimizing our environmental footprint and preserving the ecosystem, thus contributing to a more sustainable future.

    Our environmental program extends to strategic suppliers at both Tier 1 and Tier 2 levels, fostering close partnerships and offering continuous support. While we understand that the management of chemicals in multi-tiered supply chains is a complex task that requires collaboration among diverse stakeholders to achieve effective and sustainable solutions.

    Since 2020, we have defined our five-year strategic plan, which centers around our ambitious target of having 80% of chemical formulations to reach ZDHC MRSL Level 3 conformance. In 2023, we developed and launched the adiFormulator program to accelerate sustainable chemistry by directly engaging with 40 critical chemical formulators. This program provided formulators with clear expectations and guidance; quarterly releases of individual chemical profile reports further facilitated their progress in meeting the required standards. Outstanding formulators were recognized and awarded in a public online event attended by our suppliers. Through this initiative, approximately 1000 new Level 3 certified formulations were introduced into our supply base, predominantly for footwear production and printing processes. The program resulted in a significant 60% increase in the utilization of Level 3 chemicals by our suppliers, with 69% of our supplier facilities now using at least 60% ZDHC MRSL Level 3 chemicals in their production. One of the examples is that in 2023 we phased out more than 1000 kg chemicals containing chlorobenzene. Concurrently, we conducted a thorough chemical cleansing exercise in our supply chain. This exercise involved identifying and removing non-compliant, unused, or rarely used chemicals from our warehouses to streamline our inventory and reduce waste.

    Moving forward, we remain dedicated to further enhancing this program to drive exceptional performance in the upcoming year. We will expand the formulator coverage to create bigger impact, and accelerate the level 3 chemical usage in our supply chain.

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