Alpkit Sustainability Report 2022

People & Planet Before Profit Profit 2022 Sustainability Report

2021

Jun

We adopted the Higg Index to help estimate the environmental impact of the materials we use.

Jul

Alpkit carbon reduction targets set by the Science Based Targets Initiative.

We committed to have our Scope 1 and Scope 2 Emissions and reduce our carbon intensity by 2025.

Aug

Feb May

Mountain Rescue fund-raisers held donating 10% of total store sales to local Mountain Rescue teams.

We helped original academic research to better understand the Life Cycle of waterproof jackets

Sep

Stores reopened after the long 2021 lockdown. We restarted our Volunteer Program with 5 extra paid days for staff to work with charities and community projects of their choice.

Held Big Shakeout 2022 for the first time since 2018. It’s our end-of-thesummer party and a good fund raiser for the Alpkit Foundation.

Oct

Signed up to the Better Business Act to require companies to put people and planet alongside profit.

As a founder member of the Microfibre Consortium we signed up to their 2030 Microfibre Commitment

Nov

Held our UK Made week to celebrate that 30% of our products are UK Made according to Department of Trade & Industry rules.

Mar

We started work on our new Edinburgh store. It’s a 100 year old engineering unit that we retrofitted insulation, double glazing and down fans.

Apr

Jan

Aktivism

Alpkit Foundation reached £450,000 awards to more than 1500 projects.

Continuum Projects campaigned for down duvets, taking cumulative donations to 5 tonnes.

Dec

We won a Sustainability Entrepreneur of the Year award at the Great British Entrepreneur Awards.

Alpkit won Online Retailer Of The Year in TGO Magazine annual awards.

alpkit.com

Build a better business

We are responsible and fair in the way we run our business and are investing in the UK.

What we achieved

This year we will

• Staff took 93 paid volunteer days taken to

• Build on our team training, volunteer days

• Well-being workshops held for all our team • Introduced flexible working and enhanced

• Increase diversity of our team and celebrate

• 30% of our products are UK made (according to DTI criteria)

• Aim to reduce salaried staff turnover to below 10%

support local projects

and charity giving scheme

diversity in our marketing material

• Extend our size range to XXL and size 20 • Make sure no products contain any raw

parental leave

• Completed diversity training with our Board • Of course, we paid all our taxes

materials sourced from conflict zones

96

Alpkit team Employees (FTE) 48

We see 8 of the UN Sustainable Development Goals as directly applicable to us. This is where we have a big impact directly through the operations of Alpkit and Alpkit Foundation. There are 17 UN goals in total that form a blueprint to achieve a better and more sustainable future for all.

58

52

64

31 12 2014

20

2015

2016

2017

2018

% Board identify as women % Senior Team identify as women % workforce women % non-white British Gender Pay Gap Highest to lowest pay Jobs created % vacancies filled by internal promotion Staff turnover Living Wage pay rate Annual pay enhancement above national minimum Average Age

2019 2020 2021

2021 25% 47% 45% 7% +2.5% <7 92

2020 25% 44% 43% 7% +0.9% <6 N/A

Target 40% 50% 50% 8% -% <10

44%

N/A

>15%

13% £9.50

13% £9.30

<10%

£1,500pa

£1,200pa

35

35

B Corp We are committed to using business as a force for good. We measure our social and environmental performance according to this independent 3rd party standard. We chose B Corp for its high standards, rigour and integrity.

We certified last year and our next verification date is in August 2023. Between now and our renewal date, we continually review and monitor our performance using their framework.

Alpkit 2022 (*) Governance 19 Workers 30 Community 34 Environment 30 Customers 4 B Corp Score 117

2020 Peers All-company average 18 15 6 25 21 18 32 31 18 16 23 7 4 2 2 95 92 51

We compare ourselves to an all-business average and our peer group including Patagonia, Body Shop, Cotopaxi, Kathmandu, Finisterre, Picture Organic Clothing, Allbirds and World of Books. * 2022 score is our self-assessment using self-assessment tool provided by B Corp. Our scores are independently verified every 3 years.

Our last verified score was in August 2020 and the next is due in August 2023. The self-assessment tool is free to use at bcorporation.net

Reduce Reuse Repair Recycle

99% 37% of orders now plastic free packaging

We design with purpose: repair, reuse and recycle are at the forefront of our minds to make long-lasting performance products.

What we’re proud of

• Trebled the use of recycled fabrics and materials

in our products. 37% of our clothing now contains recycled content

• Successful trial that eliminated single use plastic bags in shipping from our factories

• Over 2850 repairs in 2021 in our Repair Stations • Found a new home for 5 tonnes of gear with Continuum

• Zero to landfill at our main sites • Increased plastic free orders to 99%

This year we will

• Double again our range of clothing products made with recycled content, targeting mid layers in particular • Extend the plastic free shipping to 50% of our clothing

Treat animals humanely We use animal products responsibly: where there is performance benefit rather than aesthetic. When we use animal products we use the most humane farming methods available to us.

2850

Merino wool

Clothing contains recycled material

5 Repairs in 2021

We use merino wool and lambswool in clothing and only use non-mulesed wool.

We introduced Responsible Wool Standard knitwear this year.

Leather

tonnes

We use goat skin leather in some of our gloves. We prohibit the use of exotic animal skins in our products.

of old kit found a new home

Down fill We use goose and duck down in our clothing and sleeping bags and only use recycled or RDS certified down.

• All sites to be zero landfill in 2022

Work with people we believe in Alpkit Factory 10 years+ Sonder Newthorpe UK

Madison 10 years+ Sonder Stanmore UK Zhangjiagang Mingchen 5 years Clothing Fenghuang Town China

Huub 8 years Wetsuits Derby UK Wuhan Dawn 2 years Clothing Wuhan China

We work with the best factories in the world. And only work with factories where we share an ethos. Our senior team (CEO, MD, Chief Designer, Head of Supply Chain or Senior Product Managers) know our factories personally and we regularly spend time with them to personally review conditions. This year we will work closer still and develop joint environmental action plans with all our Tier 1 factories and mills.

Eaglesight Co 3 years Sleeping Bags Dalian China

Shanghai Solarwool 10 years+ Clothing Shanghai China Himalaya 5 years Camping Jiangsu China

Knit Creation 3 years Clothing Shanghai China

Honyoung/Hongstar 2 years Clothing Zhoukou city China

J Adams & Associates 10 years+ Clothing Taipei City Taiwan Topfound 10 years+ Fabric Mill Taipei Taiwan

Asia Trading 5 years Sonder Taichung Taiwan

Firemaple 10 years+ Camping Zhejiang China

Sheico 8 years Wetsuits Wujie Township Taiwan Wellgreen Outdoor 10 years+ Equipment Fuzhou China

KC Manufacturing 10 years+ Clothing Kwai Chung, N.T., Hong Kong China

Tier 1 reviewed in last 18 months

Tier 1 and Tier 2 factories signed to our Code of Conduct, Code of Ethics and Modern Slavery Statement

100% 100% Signed up to Ethical Trading Initiative Base Code

UK Outsourced Staff paid Living Wage Foundation pay

Taraniss International 10 years+ Clothing Xiamen China Favour Light 10 years+ Equipment Kowloon, Hong Kong China

100% 100%

Waltly Titanium 10 years+ Sonder Xinglin China

Alfton Bikes 5 years Sonder Tainan Taiwan

Zhejiang Natural Travel 10 years+ Camping Taizhou Taiwan Sram 5 years Sonder Taichung City Taiwan

Respect our environment What we achieved this year

• Collaborated with all Tier 1 suppliers to develop environmental plans to reduce our impact

• Continued our industry-wide work with the Microfibre Consortium and Single Use Plastic Project

• Established a life cycle review project and helped original academic research • Committed to sustainable palm oil • Reduced our carbon intensity by 8% to 23kg • Extended our carbon footprint estimates for our entire value chain • Offset the estimate of our entire Scope 1, Scope 2 and freight emissions to be climate neutral

This year we will

• Have minimum 50% renewable energy in our Tier 1 factories.

• Estimate our product footprints using Higg Index • Continue to share our work with the outdoor industry through partnerships • 15% absolute reduction in our Scope 1 and Scope 2 GHG emissions in 2022 • 10% reduction in our upstream Scope 3 on a per item carbon intensity • Reduce air freight to below 10% by value

We seek to minimise the harm of our gear throughout its life without compromise to performance or quality.

Air Freight Volume 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

SS18 AW18 SS19 AW19 SS20 AW20 SS21 AW21

% PFC-Free Clothing (*) % organic or BCI cotton in clothing % recyclable content in packaging % clothing made with recycled content % inbound shipments by air % outbound shipments by air

Our Full Value Chain Carbon Footprint Understanding our carbon footprint is incredibly exciting as it guides the action for us to respond to the climate crisis – we look at the whole-life from raw material to use and end of life.

We estimate that two-thirds of the carbon impact of a product is from the raw materials and manufacture process. Just 15% of the impact is in your ownership.

The single biggest thing you can do is use your gear for longer. Extending the life of our kit say from 3 years to 5 years will reduce your carbon footprint by 40%.

And then pass it on or recycle when you’re done with it so it doesn’t go to landfill.

We will do our bit to achieve our Science Based targets:

• Choose environmentally preferable materials • Select factories based on their ethos and values • Minimise airfreight • Make products that are long lasting and durable • Switch to factories that use renewables in our supply chain • Repair all our products and offer Continuum to find products new homes when you’re done with them.

Our Whole Life Carbon Value Chain

(tonnes CO2e) Product Manufacture

2704

Air freight

549

Sea freight Alpkit Team and Stores IT, data & website cloud services Delivery to customers

159

Customer journey to store

231

Use & care

529

End of Life We have estimated our footprint using the official UK government conversion factors. These are all averages using internal shipping, product data plus customer research we have carried out to estimate. We have approximated and rounded up where necessary so it should be seen as a “scoping exercise” to indicate the broad quantum of emissions rather than a precise calculation. The accuracy of our footprint will get better each year as we revisit and refine the methodology and underlying dataset. Please email us at together@alpkit.com for more info or details.

2021 2021 4.5

2021 100% 100% 98% 37% 31% 3%

2020 100% 100% 92% <12% 10% 6%

2020

2019

2020 6.1

Carbon Intensity Scope 1 & 2 emissions per $m sales Full Value Chain Emissions per order 23kg 27kg Scope 1, 2 & 3 upstream and downstream emissions per order

2019 8.3

28kg

GHG Emissions (tonnes CO2e) Scope 1 Direct Energy Scope 2 Indirect Energy Scope 3 Alpkit Operations Scope 3 Upstream Manufacture Scope 3 Downstream Use and Care Total Cradle to Cradle Estimate

19.6 49.6 70.5 3,292.7 923.2 4,355.60

21.8 46.5 64.9 2,245.2 562.4 2,940.80

22.2 54.2 111.1 2334.4 617.9 3,139.80

Scope 1 Direct Energy Gas Wood Pellets and Logs Fuel for Cars and Van Total Scope 1

7.1 0.1 12.4 19.6

7.9 0.4 13.5 21.8

2.6 0.6 22.2 22.2

Scope 2 Indirect Energy Electricity % renewable

49.6 97%

46.5 97%

54.2 97%

2.7 12.2 0.3 47.5 6.6 1.2 70.5

1.2 5.9 8.6 41.3 6.8 1 64.9

0.5 11.0 34.3 60.7 3.8 1 111.1

548.7 40.0 2,704.00 3,292.70

163.9 24.1 2,057.20 2,245.20

213.5 27.5 2,093.40 2,334.40

159.4 230.9 528.9 4 923.2

98.5 144 317.7 2.2 562.4

97.6 187.2 331.1 2 617.9

Scope 3 Alpkit Operations Water and Waste Business Miles Air Travel Employee Commuting Cloud Storage Other purchases incl. packaging Total Scope 3 – Alpkit Operations Upstream Manufacture Airfreight Seafreight Product Manufacture Total Upstream Manufacture Downstream Operations Delivery to customers Customer journey to store Customer Use and Care End of Life Total Downstream Use and Care

I joined Alpkit just over two and a half years ago as the UK Factory Manager, responsible for managing production and looking at ways to develop the factory and products.

28%

Less than yearly

11% Yearly

1%

Every 6 months

0%

Every 3 months

0%

Disposal method for previous main jacket:

• People wash and reproof annually and use the 30°C cycle

• They then pass to someone new at a charity

47%

shop or sell privately on eBay or similar.

18%

22%

Charity donation or gift to friend

Public textiles recycling bin

Household waste

The research resonates profoundly with our ‘Gear You’ll Love For Longer’ ethos and will directly impact our fabric selection for future use.

Thanks to Matt and everyone who completed the survey.

Andrew Lewishill, Operations Manager

Other

39% 21%

important than physical durability – which is how long a garment will practically last.

My job evolved massively when the pandemic hit. Initially most staff were furloughed or working from home. As one of the lucky ones still at HQ, I became more involved with operations, working with our managing director Nick. We wanted to make major changes to the Alpkit site – lockdown was the perfect time. We acquired a new building, and I was responsible for moving the office and factory, as well as moving Sonder into its own unit. This expansion allowed us to reconfigure the warehouse, improve the layout and racking and get extra staff.

We also added ‘locations’ to our stock system telling us exactly where everything is.

7%

Jacket reproofing frequency:

choose to use a jacket – is much more

Andrew’s Journey to Operations Manager...

Skiing / Snow sports

General everyday use

Bikepacking / Cycle Touring

Road / Gravel Cycling

Trail / Fell Running

Road Running

10%

5%

8% Sale e.g. eBay

• Emotional durability – i.e. how long you

26%

Brand ‘take back’ or in store collection

weekly for hiking, walking and everyday use.

• Use their jackets for 7 years on average.

But the jacket is still used, as a second best, for another 4 years. Many customers have had their waterproofs for 20 years or so.

12%

20%

Monthly

• Most people wear their waterproof jacket

5%

Every 2 weeks

Key Findings

26%

Weekly

We worked with Matt Cripsey, Birkbeck, UoL, with his academic research into how Alpkit customers use their waterproofs. The results are stunningly positive and underpins our ‘customer use’ of our full value carbon chain. It found that we use our jackets for much longer than previously thought. Our customers expect an average 7 years of primary use, with another 4 years as ‘second best’. 11 years is much longer than the 3 to 5 years previously believed.

Most customers then pass to someone else rather than going to landfill.

68%

Mountaineering

There’s only one public life-cycle analysis for a waterproof jacket. Just one (by Goretex). And that one is now a decade old. It’s incredible how little research has been done when clothing contributes 8-10% of global carbon emissions.

All activities for which a Jacket is used:

88%

Hiking / Hillwalking

Patching the holes in waterproof life-cycle analysis

At the end of the first lockdown, I was made Operations Manager, with responsibility for the warehouse, all Alpkit and Sonder stock, the UK Factory, and every building at the Alpkit Campus. I’m also now part of the Alpkit Training Group. I’m excited to be looking at ways we can develop Alpkit staff.

The Factory and Sonder now have space to grow and the Sonder team can focus on designing and building bikes. Next, we’ll be installing a wheel building machine.

And we’re looking at constructing a spray booth. Plans are underway for a ‘development area’ to allow us to produce a greater range of prototypes on-site, using the expert skills of our machinists.

I’m excited about this extra responsibility, and where we can go as a company.

What makes me most proud is how quickly we adjusted to the pandemic and this period of growth. That’s largely thanks to the spirit of the team – how willing they are to put the effort in and help each other out. When I started, we were in four buildings across two sites. Now we’re in seven buildings across three sites! Alpkit has changed massively in two years – we’ve grown a lot. But we’re still signing every order by hand!

Beth Pearce, Alpkit HR Manager: “At Alpkit, we’re on a journey, and it’s vital that we invest in our people through offering training and development opportunities. We couldn’t believe in our team more and know that the success of Alpkit this year and that of future years depends on the training culture that we are so passionately embedding now; our sessions on work specific learning, leadership development and life skills are just the start of what we want to deliver and getting to witness amazing people develop alongside Alpkit is a privilege.”

Over

2850

repairs in 2021

Mending is better than ending All stores offer repair, reproof and Continuum service. And it’s online too – just get in touch with our Customer Service team at support@alpkit.com and we’ll take it from there. We repair any brand and will do any modification or make custom products you ask for – all time is charged at a fair hourly rate.

Monika, Edinburgh Monika, in our Edinburgh store, shortened the arm length of a customer’s Gravitas jacket recently. What might seem like a small alteration from the outside can mean the biggest of things.

Caroline, Rob and Chris, Hathersage Rob’s been at it again! This time creating a bump warmer that converts into a baby carrier warmer! It zips into any jacket and has an elastic cord to adjust it in different places. Expertly modelled by Kieran. Who isn’t actually preggers.

No spring chicken, Edinburgh Charlotte, Ilkley Charlotte from our Ilkley store was looking at a 20+ year old jacket that was going to be mightily expensive to repair. Knowing the potential costs of repair, the customer asked what she could do. She decided to get creative. And turned a funky irreparable Haglöfs jacket into an eyecatching dry bag and coin wallet.

One customer told the Edinburgh team that he’s “not the youngest” anymore. He wanted to add a zip to his Hunka bivvy bag to make it easier to get in and out. The team got a waterproof zip and seam-sealed it on the inside, to maintain the waterproofness. It was relatively straightforward. The only problem was the drawcord. Monika and Hania found a new hole for the cord to come out and there you have it!

A waterproof zipped bivvy.

Lily, UK Factory Lily made 10 rucksacks for Ogwen Valley Mountain Rescue to carry their medical kits on call outs.

“We created 7 pouches that are held in the backpack with Velcro so they can be quickly removed and put back easily” explained Lily.

“They also have a clear lid so the team can see exactly what’s inside”.

Give back

£450,000 Over

Scouts/Guides and similar

Staff Charity Match Funding

Admin Coronavirus

Partnerships

1500 Projects Diversity

Participation

DofE/ Forest Schools and similar

Alpkit only exists because of our wild places and people that make them. Alpkit Foundation is our payback, our social dividend to protect the places we love for everyone to enjoy.

We give small awards to ordinary people doing extraordinary things that make the world a better place.

You help every time you buy from Alpkit. And we’ve donated 40% of our profits since 2015 to the Alpkit Foundation.

We’ve received 5,000 applications and given 1500 awards to improve education, environment, diversity, mental health and participation in the outdoors. That benefits over 30,000 people altogether.

It’s humbling to see the effect that this has:

“Do your little bit of good where you are; it’s those little bits of good put together that overwhelm the world.” Desmond Tutu Thank you from us to all our customers that make this happen.

Donate or apply at alpkit.com/foundation

Mountain Rescue/SSAR Health & Well-being

Education Environmental

AKA “The pandemic has had a big impact on people’s well-being. Being unable to do some of the things that they loved during those lockdowns hit especially hard. It was during this time that we were introduced to hiking in remembrance of a manager that passed away and who loved the outdoors. We immediately felt the benefits and wanted to share this with others.”

Antwon, Kevin, Anton are AKA – three passionate guys making a positive impact. Building on their youth work they wanted to expand opportunities for people from disadvantaged, socially isolated groups in Nottingham to improve physical, emotional, and mental well-being and to create community cohesion.

“There aren’t many things more healing than feeling connected with nature, and with other people. Hiking with others lowers the guard and allows people to talk openly and actually be heard”

Jessie Leong

With National Lottery funding, AKA piloted a project in 2021, supported by the Peak District National Park Authority, that looked to lead those least likely to access the outdoors on hikes and activities. We were super keen to help.

For AKA it was important to gain experience, skills and knowledge and so we provided access to subsidised Hill and Moorland Leader training as well as grants towards equipment, backed up with support from Alpkit Continuum in establishing a kit pool others could use.

“The support we have received from the outdoor industry during the last year really helped us as newbies learn and develop the skills, knowledge and confidence needed to lead others into the outdoors. It’s so important for us all to enjoy the outdoors responsibly and safely with minimum impact.”

This has gone a long way to breaking barriers facing others getting out. Whether that’s awareness, confidence and know-how

or suitable equipment and travel. It’s amazing to hear the huge impact and long term benefits this project has been having. Giving people confidence to go out on their own and encourage a real love for the outdoors, with many now even taking opportunities to volunteer.

“Many people who attend the events have never been hiking, and cannot believe that it has been under their noses their whole lives. Seeing faces light up with genuine awe is priceless!

We have facilitating events almost every month, engaging over 250 young people and adults.

It’s amazing to see new friendships grow.”

We put people and planet before profit First and foremost we’re an outdoor brand. It is our love of the outdoors and belief in nature that drives us. Everything we do comes from a desire to make great product and build a great business. Products that are purposeful and long-lasting; and a business that is responsible and we’re proud to work for: to be gentle and look after the things that matter.

We define Net Zero as the total decarbonisation of our entire value chain.

It’s only achievable by reduction in emissions not offset – it is far more than burn now and offset later and means a minimum 95% reduction in carbon emissions. We will continue to offset our Scope 1, 2 and Scope 3 upstream freight and commuting emissions knowing that being climate neutral is just a passing point on our journey to Net Zero.

Your feedback has guided us and we greatly appreciate the hundreds of customers that completed our sustainability consultation. You ranked our priorities for 2022 as:

• Always remember who we are: first and foremost we make high quality, affordable, long-lasting performance kit for the outdoor enthusiast.

• Run a good business that treats its staff well and pays its taxes; stay a Living Wage Foundation employer.

This year I’m particularly proud that we:

• Estimated our end-to-end carbon footprint and proved what we

always knew: that the most sustainable kit is the kit you already own.

We estimate that 85% of the embedded carbon in your gear is spent in making it and getting it to you – so simply use it for longer and you’ll reduce your own footprint.

• Relaunched our volunteer days, adventure training and School of

Adventure program. These were paused in the height of lockdown.

• Reduced our full value carbon intensity to 23kg per order from 28kg per order despite a spike in the need to airfreight when we were hit by the container shipping crisis in the summer.

• Have now donated £450,000 to 1500 projects with Alpkit Foundation and found a new home for 5 tonnes of outdoor kit with Continuum.

We committed to Science Based Targets Initiative in July and will halve our Scope 1 and 2 carbon emissions by 2025. This will happen by switching all fossil fuel use to renewables that use gas and petrol/diesel today.

This means going electric for our heating and company cars and vans.

• Select suppliers on the basis of their ethics and environmental responsibility.

• Continue to eliminate any risk of modern slavery, deforestation or minerals from conflict zones in our products.

• Reduce our carbon footprint, choose environmentally preferable materials and look to alleviate poverty in our supply chain.

• Choose humane farming methods and support regenerative agriculture.

We’re continuing to learn and share ideas about building better businesses and making better products. The buzz from seeing Alpkit customers out on the hill is so rewarding and I thank each and every customer for buying from us. I also have immense pride in our team – the spirit and soul over this past year has been inspirational – and it is great to see this validated in us winning TGO Online Retailer of The Year in 2021.

These targets are independently assessed and we’re proud to say we are officially doing our bit to limit global warming to the 1.5˚C scenario.

We will reduce our full value carbon emissions by at least 15% each year.

We will set a more robust target each year and be Net Zero by 2050 at the absolute latest.

David Hanney, Chief Exec

Sustainability Principles Reduce reuse repair recycle

Respect our environment

Treat animals humanely

Work with people we believe in

Build a better business

Give back