SGC Corporate Social Responsibility Report 2021 by SGC Marketing

2021 SUPERIOR GROUP OF COMPANIES CORPORATE SOCIAL RESPONSIBILITY HIGHLIGHTS REPORT

ELEMENTS

ABOUT THIS REPORT A MESSAGE FROM OUR CEO ABOUT SGC 2021 AWARDS AND RECOGNITION

4 6 8 10

EMPLOYEE ENGAGEMENT

2021 PERSPECTIVE: PANDEMIC RESPONSE

14 16

COMMUNITY RELATIONS

INDIA VACCINE DRIVES

COMMITMENT TO ETHICAL BUSINESS BUSINESS ETHICS DATA SECURITY AND PRIVACY

SUPPLY CHAIN MANAGEMENT, LABOR PRACTICES, AND HUMAN RIGHTS SUPPLY CHAIN MANAGEMENT LABOR PRACTICES AND HUMAN RIGHTS

18 18 20

22 22 24

TALENT ATTRACTION AND RETENTION TRAINING AND DEVELOPMENT DIVERSITY AND INCLUSION

CORPORATE GIVING AND EMPLOYEE VOLUNTEERISM

ENVIRONMENTAL MANAGEMENT WASTE MANAGEMENT FACILITY OPTIMIZATION AND ENERGY EFFICIENCY PRODUCT QUALITY MANAGEMENT

CLOSING

25 25 28 30 32 32 36 36 38 39 40

ELEMENTS

ABOUT THIS REPORT A MESSAGE FROM OUR CEO ABOUT SGC 2021 AWARDS AND RECOGNITION

4 6 8 10

EMPLOYEE ENGAGEMENT

2021 PERSPECTIVE: PANDEMIC RESPONSE

14 16

COMMUNITY RELATIONS

INDIA VACCINE DRIVES

COMMITMENT TO ETHICAL BUSINESS BUSINESS ETHICS DATA SECURITY AND PRIVACY

SUPPLY CHAIN MANAGEMENT, LABOR PRACTICES, AND HUMAN RIGHTS SUPPLY CHAIN MANAGEMENT LABOR PRACTICES AND HUMAN RIGHTS

18 18 20

22 22 24

TALENT ATTRACTION AND RETENTION TRAINING AND DEVELOPMENT DIVERSITY AND INCLUSION

CORPORATE GIVING AND EMPLOYEE VOLUNTEERISM

ENVIRONMENTAL MANAGEMENT WASTE MANAGEMENT FACILITY OPTIMIZATION AND ENERGY EFFICIENCY PRODUCT QUALITY MANAGEMENT

CLOSING

25 25 28 30 32 32 36 36 38 39 40

This report covers Superior Group of Companies, Inc.’s (SGC) priority environmental, social, and governance (ESG) topics for our three reportable business segments as presented in our 2021 financial statements: (1) Uniforms and Related Products, (2) Promotional Products, and (3) Remote Staffing Solutions. In this report, we refer to these segments as our uniform, branded merchandise, and business process outsourcing (BPO) segments. Information and data provided in this report covers our 2021 fiscal year (January 1– December 31, 2021) unless otherwise noted. Through this report, we seek to provide greater transparency to the efforts and accomplishments related to our ESG priorities. Where possible, this report references industry-specific topics identified as material to our business by the Sustainable Accounting Standards Board (SASB). This is our third corporate social responsibility report, and it is our intention to continue sharing our progress on an annual basis and increasing our focus on formally aligning our disclosures with the SASB reporting framework. LEGAL STATEMENTS This report may make forward-looking statements about SGC’s expectations or predictions about the future. Because these statements are based on current assumptions and factors that involve risks and uncertainties, SGC’s actual performance and results may differ materially from what is included in the report. Please refer to SGC’s SEC filings, including our 2021 Annual Report on Form 10-K with the SEC on March 23, 2022, and our subsequent periodic filings, such as our first quarter 2022 Quarterly Report on Form 10-Q filed on May 4, 2022, for detailed discussions of principal risks and uncertainties that could cause such differences. For more information about this report or to inquire about our corporate responsibility performance, please contact Andrew D. Demott, Jr., SGC’s Chief Operating Officer, at ademott@superiorgroupofcompanies.com. 4

A MESSAGE FROM OUR CEO After a successful 2020 year that was nonetheless defined by tremendous uncertainty, in 2021, Superior Group of Companies (SGC) focused on solidifying how we operate in the “new normal” and expanding upon our successes. By investing in our workforce, customers, partners, suppliers, and communities, we were able to grow and thrive — even as the ground continued to shift beneath us. Carrying over from 2020, we prioritized employee safety as the pandemic and its ripple effects continued to impact the globe. The devastating impact of COVID-19 on my own family inspired me to increase the vaccination rate among our employees. SGC’s leaders encouraged all who were able to take the potentially life-saving step of getting vaccinated and backed up this commitment with cash wellness incentives, vaccine drives, and full healthcare coverage of vaccinations for employees and their dependents. To further build workforce loyalty and attract new employees, we enhanced our already competitive benefits and wellness programs, offered unique training and development opportunities, and encouraged regular, open engagement with company leaders. Perhaps more importantly, we stayed true to our values by demonstrating compassionate support for our employees and their families in times of need. These efforts, as well as our sales growth, contributed to our 32.5% increase in global headcount in 2021. As detailed later in this report, our approach has been validated externally by the numerous company and workplace awards we received last year.

Pressure on our global supply chain reverberated through every part of our business last year and has continued to impact the world in new and surprising ways. At SGC, our employees have gone above and beyond to manage these challenges. As a result of their dedication, we have been able to meet and exceed customer expectations throughout the past year. Beyond our direct company operations, we continue to drive accountability across our global network of suppliers. We stand by our commitment to programs and policies that ensure responsible sourcing and align with the increasing global focus on respecting human rights throughout the supplier ecosystem.

SUCCESS

We also live by the mantra that managing environmental impact is a responsibility every individual, company, and nation should embrace. Our product portfolio includes a growing number of sustainable offerings, including fabrics made from recycled bottles and other innovations to reduce plastic waste. Our operations continue to seek ways to manage our environmental footprint. We endeavor to meet all challenges in the coming year with the creativity, resiliency, and spirit of collaboration that have successfully carried us through the past century. We are proud of our ongoing investments in sustainability and continue to identify areas where we can increase our focus in the future. We look forward to sharing updates on our progress with you.

Michael benstock CEO, superior group of companies 7

SUCCESS

Michael benstock CEO, superior group of companies 7

LOCATIONS WORLDWIDE

ABOUT SGC

CARIBBEAN Ouanaminthe Belmopan San Ignacio Santiago Kingston

Superior Group of Companies is a family of companies that help customers unlock the power of their brands by creating extraordinary brand experiences for employees and customers. Our portfolio companies provide uniforms, image apparel, branded merchandise, promotional products, and custom call and contact support services to recognized global brands and their consumers. Our business is organized into three segments encompassing a range of products and services to help our customers amplify their brand power and reach.

Eudora Monticello Lake Village Tempe Phoenix Compton Los Angeles Seminole Atlanta Peachtree Corners Chicago Romeoville Oak Grove Lake Providence Lexington Coppell Seattle Vernon

Building on our legacy of more than 100 years, we balance stability and steady growth with our entrepreneurial roots. We remain true to our commitments to sustainable business practices, quality, value, and professionalism while continually innovating to deliver the best possible experiences for our customers, employees, communities, and other stakeholders.

SUPERIOR UNIFORM GROUP

SUPERIOR BRANDING SOLUTIONS

AR AR AR AZ AZ CA CA FL GA GA IL IL LA LA MS TX WA BC

Sao Paulo Minas Gerais

HT BZ BZ DR JA

Amsterdam

Guangzhou Hong Kong Dehradun

BR BR

CN CN IN

SUPERIOR BPO SOLUTIONS

SGC HAS MORE THAN 35 FACILITIES WORLDWIDE, INCLUDING OFFICES, DISTRIBUTION CENTERS, WAREHOUSES, AND MANUFACTURING SITES.

YEARS IN BUSINESS

100+

HEADQUARTERS

SEMINOLE, FLORIDA

NASDAQ STOCK MARKET SYMBOL

SGC

FACILITIES WORLDWIDE

35+

EMPLOYEES WORLDWIDE

6,167

NET SALES

$536,986,000

*AS OF DECEMBER 31, 2021. FOR MORE INFORMATION, PLEASE VISIT OUR INVESTOR RELATIONS WEBSITE.

LOCATIONS WORLDWIDE

ABOUT SGC

CARIBBEAN Ouanaminthe Belmopan San Ignacio Santiago Kingston

Eudora Monticello Lake Village Tempe Phoenix Compton Los Angeles Seminole Atlanta Peachtree Corners Chicago Romeoville Oak Grove Lake Providence Lexington Coppell Seattle Vernon

SUPERIOR UNIFORM GROUP

SUPERIOR BRANDING SOLUTIONS

AR AR AR AZ AZ CA CA FL GA GA IL IL LA LA MS TX WA BC

Sao Paulo Minas Gerais

HT BZ BZ DR JA

Amsterdam

Guangzhou Hong Kong Dehradun

BR BR

CN CN IN

SUPERIOR BPO SOLUTIONS

SGC HAS MORE THAN 35 FACILITIES WORLDWIDE, INCLUDING OFFICES, DISTRIBUTION CENTERS, WAREHOUSES, AND MANUFACTURING SITES.

YEARS IN BUSINESS

100+

HEADQUARTERS

SEMINOLE, FLORIDA

NASDAQ STOCK MARKET SYMBOL

SGC

FACILITIES WORLDWIDE

35+

EMPLOYEES WORLDWIDE

6,167

NET SALES

$536,986,000

*AS OF DECEMBER 31, 2021. FOR MORE INFORMATION, PLEASE VISIT OUR INVESTOR RELATIONS WEBSITE.

2021 AWARDS AND RECOGNITION SGC and its business divisions continue to earn recognition for leadership, product excellence, and as a top workplace.

PPB Magazine

Greatest Companies to Work for in the Promotional Products Industry (BAMKO)

Awards and listings in 2021 included:

Los Angeles Business Journal

Forbes

America’s Best Small Companies (SGC) Ranked 10 of 100 Fortune Magazine

100 Fastest Growing Companies (SGC) Ranked 88 of 100 North American Association of Uniform Manufacturers and Distributors (NAUMD)

Best Garment Innovation, Function Winner (WonderWink RENEW and Indy Apparel, CID) Advertising Specialty Institute (ASI) Counselor Magazine

Top Distributors in North America (BAMKO) Ranked 11 of 40 Power 50 (Phil Koosed, BAMKO) Ranked 1 of 50 Promotional Product Professionals of Canada

Momentum Award, Honoree (Jake Himelstein, BAMKO)

Best Place to Work in Los Angeles (Medium-Sized Companies BAMKO) Ranked 3 out of 35 Employers for Youth

Best Technology Companies for Young Professionals in Central America (The Office Gurus) Ranked #14 Lawyer International

Best Business Outsourcing Provider Legal 100 (The Office Gurus) Employers for Youth El Salvador

Best Place to Work – Call Center Industry (The Office Gurus) Ranked #1 Best Place to Work – All Industries (The Office Gurus) Ranked #3 Connecta B2B

Mujer Emblematica (Emblematic Women) Business Leader Finalist (Karla Machón, VP of Operations, The Office Gurus) Plan International El Salvador Honoree (The Office Gurus)

2021 AWARDS AND RECOGNITION SGC and its business divisions continue to earn recognition for leadership, product excellence, and as a top workplace.

PPB Magazine

Greatest Companies to Work for in the Promotional Products Industry (BAMKO)

Awards and listings in 2021 included:

Los Angeles Business Journal

Forbes

America’s Best Small Companies (SGC) Ranked 10 of 100 Fortune Magazine

100 Fastest Growing Companies (SGC) Ranked 88 of 100 North American Association of Uniform Manufacturers and Distributors (NAUMD)

Best Garment Innovation, Function Winner (WonderWink RENEW and Indy Apparel, CID) Advertising Specialty Institute (ASI) Counselor Magazine

Top Distributors in North America (BAMKO) Ranked 11 of 40 Power 50 (Phil Koosed, BAMKO) Ranked 1 of 50 Promotional Product Professionals of Canada

Momentum Award, Honoree (Jake Himelstein, BAMKO)

Best Place to Work in Los Angeles (Medium-Sized Companies BAMKO) Ranked 3 out of 35 Employers for Youth

Best Technology Companies for Young Professionals in Central America (The Office Gurus) Ranked #14 Lawyer International

Best Business Outsourcing Provider Legal 100 (The Office Gurus) Employers for Youth El Salvador

Best Place to Work – Call Center Industry (The Office Gurus) Ranked #1 Best Place to Work – All Industries (The Office Gurus) Ranked #3 Connecta B2B

Mujer Emblematica (Emblematic Women) Business Leader Finalist (Karla Machón, VP of Operations, The Office Gurus) Plan International El Salvador Honoree (The Office Gurus)

OUR CORPORATE SOCIAL RESPONSIBILITY FOCUS AREAS This corporate social responsibility highlights report addresses prioritized material topics that are aligned with our values and vision, our business strategy, and feedback from our investors, customers, employees, and other key stakeholders.

Our material topic areas in this report are: • • •

BUSINESS ETHICS & HUMAN RIGHTS LABOR PRACTICES & SUPPLY CHAIN COMMUNITY RELATIONS

OUR VALUES • INTEGRITY ABOVE ALL ELSE • BE AMBITIOUS; PERSEVERE; BE TENACIOUS • BE HONEST AND TRANSPARENT • CURIOSITY DRIVES CHANGE; EMBRACE CHANGE • EVERYONE IS ACCOUNTABLE • SOLVE PROBLEMS QUICKLY

OUR VISION • SEEK OPPORTUNITY • INNOVATE BOLDLY • EARN THE LOYALTY OF OUR CUSTOMERS • BE THE LEADER IN CORPORATE ETHICS AND SOCIAL RESPONSIBILITY

Our material topic areas in this report are: • • •

BUSINESS ETHICS & HUMAN RIGHTS LABOR PRACTICES & SUPPLY CHAIN COMMUNITY RELATIONS

OUR VISION • SEEK OPPORTUNITY • INNOVATE BOLDLY • EARN THE LOYALTY OF OUR CUSTOMERS • BE THE LEADER IN CORPORATE ETHICS AND SOCIAL RESPONSIBILITY

2021 PERSPECTIVE: PANDEMIC RESPONSE

490

Employees rewarded for proof of COVID-19 vaccination

$33,900

COVID-19 has continued to create uncertainty and hardships for our company and the global community. Throughout 2021 and into 2022, we were able to provide more security and peace of mind to our employees, our customers, and the communities we serve.

In gift cards distributed to employees as COVID-19 vaccination wellness incentive rewards

In 2021, we continued many of the expanded benefits we launched in 2020 to provide ongoing relief and support to our employees. Our expanded benefits focus on our employees’ physical, mental, and financial wellbeing. Some of the programs we have retained include:

1,000+ COVID-19 test kits provided to employees

PHYSICAL

FINANCIAL

Working from home whenever possible (including technological resource support)

Bonuses for hourly workers and temporary wage increases for distribution center/warehouse workers

Providing personal protective equipment (PPE) and elevated sanitation and safety measures

Company subsidized disability coverage

SUPPORT FOR VACCINATION AND TESTING

Telemedicine co-pay fee waived COVID-19 vaccine incentives

As COVID-19 vaccines became more widely available in 2021, our company actively encouraged employees and their dependents to get vaccinated, reinforcing this message with direct communications from top company leaders.

EMOTIONAL Additional paid time off, including rollover into 2022 Extension of vacation time carry over into 2022 to support distribution center/warehouse workers Access to free sessions with mental health professionals Frequent CEO and management communications

We backed up our words with actions, covering the cost of the vaccine for all our employees and their dependents, as well as offering a wellness incentive of cash gift cards with proof of vaccination - a program we extended through March 2022. As of December 2021, more than $33,900 in gift cards were distributed to 490 employees in appreciation for their efforts to protect themselves from the virus, boost vaccination rates in our communities, and invest in the overall health and safety of our workforce. As an additional measure, we provided more than 1,000 COVID-19 test kits to our employees and their dependents at no charge to assist them with managing their health and preventing the spread of the virus.

2021 PERSPECTIVE: PANDEMIC RESPONSE

490

Employees rewarded for proof of COVID-19 vaccination

$33,900

In gift cards distributed to employees as COVID-19 vaccination wellness incentive rewards

1,000+ COVID-19 test kits provided to employees

PHYSICAL

FINANCIAL

Working from home whenever possible (including technological resource support)

Bonuses for hourly workers and temporary wage increases for distribution center/warehouse workers

Providing personal protective equipment (PPE) and elevated sanitation and safety measures

Company subsidized disability coverage

SUPPORT FOR VACCINATION AND TESTING

Telemedicine co-pay fee waived COVID-19 vaccine incentives

INDIA VACCINE DRIVES Last year, our BAMKO team in India partnered with local healthcare providers to provide COVID-19 vaccines in a two-part vaccination drive in Dehradun, India. The vaccine drive provided all employees and their dependents with the first dose of the Covidshield vaccine, with the second dose scheduled following a government-approved interval. Through our efforts, vaccinations were provided for nearly 400 people.

COMMITMENT TO ETHICAL BUSINESS

COMPLIANCE

Our longstanding commitment to responsible and principled leadership is reflected in our company policies, procedures, and communications. Our board of directors’ Corporate Governance, Nominating, and Ethics Committee meets quarterly to discuss business ethics, data security, data privacy, and similar topics. On a day-to-day basis, our CEO and executive team model transparency and accountability in their actions and communications. This includes regular engagement with employees and other stakeholders, encouraging direct feedback, and continually seeking to improve company practices.

Our board of directors monitors the company’s compliance with our Code of Conduct with direction from our legal team as required. Our approach to compliance with the Code of Conduct is communicated in detail and includes a clear, easy-to-follow process for evaluating and addressing potential concerns.

BUSINESS ETHICS

We regularly train employees on ethical business behavior including our Code of Conduct and our Anti-Discrimination and Anti-Harassment Policy. New employees are required to complete an initial training on the Code of Conduct within 90 days of their start date. Under normal circumstances, all employees receive ongoing training on the Code of Conduct on a bi-annual basis; although this cadence was temporarily disrupted during the pandemic, we have reinstated bi-annual training on business ethics and the Code of Conduct and are on track for all employees to receive this training in 2022.

Management, including our executive staff, enforces our Code of Conduct and ensures that our employees uphold ethical business standards. Our board’s Corporate Governance, Nominating, and Ethics Committee, in conjunction with the Audit Committee, is responsible for reviewing and periodically updating the Code of Conduct and does so more frequently than required by the committees’ charters. Our legal team aids in ensuring our policies and regulatory compliance meet or exceed the requirements of the countries in which we operate.

Our Code of Business and Ethical Conduct (“Code of Conduct”) outlines SGC’s approach to ensuring professional integrity. Additional policies include our Anti-Corruption and Anti-Bribery Policy; Anti-Discrimination and Anti-Harassment Policy; Insider Trading Policy; Supplier and Vendor Compliance Manual; and other compliance documents and policies.

PREVENTIVE ACTION

Taking action to prevent problems is a part of our culture. Our Whistle Blower Policy outlines numerous avenues to report concerns, including:

•

Contacting our third-party anonymous toll-free whistle blower hotline staffed by a trained operator 24/7/365

•

Calling our direct toll-free ethics hotline

•

Contacting the chair of our board Audit Committee 19

COMMITMENT TO ETHICAL BUSINESS

COMPLIANCE

BUSINESS ETHICS

PREVENTIVE ACTION

Taking action to prevent problems is a part of our culture. Our Whistle Blower Policy outlines numerous avenues to report concerns, including:

•

Contacting our third-party anonymous toll-free whistle blower hotline staffed by a trained operator 24/7/365

•

Calling our direct toll-free ethics hotline

•

Contacting the chair of our board Audit Committee 19

DATA SECURITY AND PRIVACY We believe our customers, partners, employees, and other stakeholders deserve to have their data handled in a safe, lawful, and ethical manner. SGC and its divisions comply with applicable data security and privacy laws, as well as with the data privacy policies of our company, divisions, and customers. Our internal security team is supported by multiple third-party resources that assist in continually improving our security posture. In addition, we invest in current technologies, perform regular penetration testing, and follow industry best practices to protect against threats. To further support our approach, in 2022 we hired a dedicated specialist to address our information security and data privacy compliance on a full-time permanent basis. Data privacy and security training, certification, and compliance are prioritized across our organization. We use a well-known third-party security training platform to conduct multiple employee training sessions throughout the year covering security and privacy topics related to best practices, awareness, prevention, and remediation.

DATA SECURITY Our information security and data privacy teams follow industry best practices related to data security. We comply with applicable laws and regulations, including HIPAA, maintain appropriate industry certifications, and take a variety of steps to safeguard our information and technology assets. Practices include secure data encryption, regular system audits, and use of a tier-one securedaccess data center. Our data security approach is overseen by our Corporate Governance, Nominating, and Ethics Committee, which reviews related topics quarterly and discusses with the full board of directors at least once a year. Our company leaders manage data security practices across the company and its divisions to foster conscientious, responsible data security practices at every level of our organization.

DATA PRIVACY SGC’s data privacy policy details how we collect, use, disclose, and store data provided by individuals who interact with our websites, communicate with us, or use our products, services, or applications. This policy includes information on the security practices and controls we employ to maintain data confidentiality and integrity. In addition to SGC’s overarching privacy policy, certain SGC divisions, including BAMKO, CID Resources/WonderWink, Fashion Seal Healthcare, and The Office Gurus (TOG), adhere to supplemental privacy policies specifically geared toward their businesses and industries.

DATA SECURITY CERTIFICATIONS FOR SGC AND COMPANY DIVISIONS INCLUDE: • Payment Card Industry Data Security Standard • SOC 2 (System and Organization Controls 2) • CertiPro Scrum Master

SUPPLY CHAIN MANAGEMENT, LABOR PRACTICES, & HUMAN RIGHTS

As a global organization, we are committed to respecting human rights, engaging in fair labor practices, and ensuring that our suppliers’ practices meet SGC’s standards across the globe. Through these efforts, we believe our company can have a positive impact on the communities around the world where we operate and serve customers.

SUPPLY CHAIN MANAGEMENT A strong and resilient supplier ecosystem is integral to the success of our business. We invest in the health of our supply chain by regularly assessing our supplier relationships to identify and mitigate potential risks to the company and its customers. The policies and programs that apply to our suppliers mirror the corporate responsibility standards we uphold within all SGC company divisions.

SUPPLIER ACCOUNTABILITY

Our branded merchandise team increased spending with domestic suppliers engaging in sustainability platforms by +10% in 2021. Among our preferred suppliers, 90% increased their sustainable product offerings and altered their production practices to reduce their carbon footprint.

+ 10 % USA

+ 90%

All SGC suppliers are required to adhere to our Code of Conduct and support the company’s commitment to health, safety, human rights, environmental protections, and quality. SGC’s Supplier and Vendor Compliance Manual defines our audit programs and expectations for suppliers to communicate and uphold our requirements with their employees, supply chain partners, and subcontractors. To ensure compliance with relevant policies and laws, we conduct supplier audits using Worldwide Responsible Accredited Production (WRAP), Business Social Compliance Initiative (BSCI), Sedex Members Ethical Trade Audit (SMETA), and other auditing protocols. Our manufacturing partners are subject to regular social compliance audits by our company or a third-party auditor. These audits measure manufacturers’ performance in meeting or exceeding our standards related to labor and wages, health and safety, environmental responsibility, management systems, and ethics and business integrity. For example, we track suppliers’ adherence to specific regulatory and testing requirements for adult and children’s apparel and for electronics. Our policy also requires manufacturers to pass an annual fire inspection by a local authority, conduct mandatory fire drills, possess fire-fighting equipment, and have an evacuation plan.

APPROACH TO CORRECTIVE ACTION We require that any noncompliance on the part of our suppliers, manufacturing partners, or their subcontractors be addressed. In addition, we track progress of corrective actions and require proof of corrective measures within a designated timeframe as part of a formal corrective and preventive actions plan. Details of these requirements are specified within our Supplier and Vendor Compliance Manual.

RESPONSIBLE SOURCING AND CONFLICT MINERALS Many of our suppliers are investing in the development of more recyclable and sustainable products. We train our sales teams to showcase sustainable offerings to our customers. In doing so, they encourage adoption of more sustainable practices and amplify positive impacts associated with these products and materials. Our BAMKO branded merchandise division works with multiple textile suppliers that have evaluated their environmental performance using the Sustainable Apparel Coalition’s Higg Facility Environmental Module (Higg FEM) assessment. BAMKO continues to evaluate suppliers based on sustainability and environmental impact with a preference for suppliers with higher environmental ratings. SGC has a zero-tolerance policy for sourcing raw materials from suppliers whose products contain conflict minerals, and we collaborate with our supply chain partners to identify acceptable sources for raw materials. To ensure that the products and materials we receive from our suppliers do not contain conflict minerals, we conduct due diligence including surveying targeted suppliers via the Electronic Industry Citizenship Coalition and Global e-Sustainability Initiative (EICC/GeSI) Conflict Minerals Reporting Template. Our company does not make purchases of raw ore or unrefined conflict minerals and makes no purchases in the countries that are the focus of the conflict minerals regulation.

SUPPLY CHAIN MANAGEMENT, LABOR PRACTICES, & HUMAN RIGHTS

SUPPLIER ACCOUNTABILITY

+ 10 % USA

+ 90%

EMPLOYEE ENGAGEMENT

LABOR PRACTICES AND HUMAN RIGHTS SGC abides by all applicable labor laws and strives to ensure every employee has a safe, healthy work environment. We have rules and practices in place to promote health and safety and prevent harm in the workplace, as well as established systems for reporting issues or unsafe conditions.

SGC’s employees are the key to creating an extraordinary brand experience for our customers. We prioritize attracting and retaining diverse talent while addressing feedback from our employees and applying it to drive change. We invest in and support our employees though training programs, competitive benefits, and fostering a positive, caring workplace culture.

EXPECTATIONS FOR OUR SUPPLIERS We work to ensure that our global manufacturing and supply chain partners respect human rights and maintain fair working conditions. Through our human rights due diligence process, we evaluate supplier social compliance certifications as well as compliance with our policies. As detailed in the Supply Chain Management section of this report, supply chain partners are expected to adhere to our Code of Conduct and the policies outlined in the company’s Supplier and Vendor Compliance Manual, along with any human rights clauses contained in our divisions’ policies and procedures.

TALENT ATTRACTION AND RETENTION The global community continues to grapple with the effects of the COVID-19 pandemic, including the phenomenon of the “Great Resignation” that has challenged workplaces across all industries. At SGC, we increased our headcount by 32.5% in 2021 and engaged our employees proactively to encourage strong staff retention.

Our polices require our suppliers to provide a safe, healthy work environment for their employees and follow labor practices in compliance with all applicable laws and regulations. These policies include protections against forced labor, human trafficking, child labor, harassment, violence, discrimination, and other unacceptable practices. We require suppliers to pay wages and benefits that meet or exceed the legally required wages and benefits for their locality, including legally required overtime wages. If our suppliers are in locations where no wage or benefits laws exist, we require them to engage with local contacts for guidance on the proper local standard of pay for their employees. We take a proactive approach to compliance with fair labor and human rights policies, including regular trainings, audits, and monitoring to drive continuous improvement. In the event of noncompliance in our supply chain, we collaborate with all necessary partners to facilitate solutions and maintain productive relationships. For additional details, please see the Supply Chain Management section of this report.

We invest in a variety of programs to attract and retain employees, including training, diversity and inclusion, bonuses, and a thriving company culture. We offer employees a competitive compensation plan and a robust benefits program that includes a 401(k) plan; medical, dental, life, and short-term disability insurance; wellness activities; and paid holidays, vacations, personal days, and mental health days.

THE OFFICE GURUS: EMPLOYEE ENGAGEMENT SPOTLIGHT Our largest division by headcount, The Office Gurus, conducted employee surveys across its global locations in 2021.

90.3%

OVERALL SURVEY RESPONSE RATE

EMPLOYEE SATISFACTION RATE

97.1%

PERCENTAGES OF SUPPLIERS SCREENED USING SOCIAL CRITERIA FOR SGC’S UNIFORM SEGMENT 100%

100%

80%

60%

92.5%

82.8%

93%

60%

40%

20%

2018

92%

2019

2020

2021

EMPLOYEE ENGAGEMENT

THE OFFICE GURUS: EMPLOYEE ENGAGEMENT SPOTLIGHT Our largest division by headcount, The Office Gurus, conducted employee surveys across its global locations in 2021.

90.3%

OVERALL SURVEY RESPONSE RATE

EMPLOYEE SATISFACTION RATE

97.1%

PERCENTAGES OF SUPPLIERS SCREENED USING SOCIAL CRITERIA FOR SGC’S UNIFORM SEGMENT 100%

100%

80%

60%

92.5%

82.8%

93%

60%

40%

20%

2018

92%

2019

2020

2021

SUPERIOR SOURCING: “A GREAT FAMILY THAT WORKS FOR A BETTER LIFE’’

COMPANY HEADCOUNT

Superior Sourcing, our textile manufacturing company located in Ouanaminthe, Haiti, manufactures hospital uniforms in a variety of models, styles, and colors. Superior Sourcing has demonstrated leadership by positioning itself as a strategic ally committed to attracting, developing, and retaining talent; fostering leadership within the company; and promoting a culture of change, productivity, and safety.

GLOBAL INCREASE IN HEADCOUNT IN 2021

Some of the initiatives implemented at Superior Sourcing in 2021 include:

2021

2020

4,648

2021

6,159 EMPLOYEE TENURE

20 + YEARS

126

11-20 YEARS

174

3-10 YEARS

1,399

0-3 YEARS

4,460

INCREASE

32.5%

•

Student scholarships for employees’ children

•

Donation projects with community organizations Bon Samariten, SAREPTA, L’eglise Baptiste, Tipa Tipa, and MVI Orphanage

•

Employee bonuses to incentivize strong performance, with rewards that can be applied toward home improvement purchases

•

Celebrations of holidays and life events, including Mother’s Day, Father’s Day, staff birthdays, and baby showers

•

The Excellence Benefit Program targeting the facility production department and operators, supporting employees in achieving personal and professional goals

SUPERIOR SOURCING: “A GREAT FAMILY THAT WORKS FOR A BETTER LIFE’’

COMPANY HEADCOUNT

GLOBAL INCREASE IN HEADCOUNT IN 2021

Some of the initiatives implemented at Superior Sourcing in 2021 include:

2021

2020

4,648

2021

6,159 EMPLOYEE TENURE

20 + YEARS

126

11-20 YEARS

174

3-10 YEARS

1,399

0-3 YEARS

4,460

INCREASE

32.5%

•

Student scholarships for employees’ children

•

Donation projects with community organizations Bon Samariten, SAREPTA, L’eglise Baptiste, Tipa Tipa, and MVI Orphanage

•

Employee bonuses to incentivize strong performance, with rewards that can be applied toward home improvement purchases

•

Celebrations of holidays and life events, including Mother’s Day, Father’s Day, staff birthdays, and baby showers

•

The Excellence Benefit Program targeting the facility production department and operators, supporting employees in achieving personal and professional goals

TOG UNIVERSITY

TRAINING AND DEVELOPMENT

The Office Gurus (TOG) University is an employee and management development program offered in our business process outsourcing segment. The multi-disciplinary business training curriculum allows participants to develop key competencies for success. Over the past five years it has provided TOG employees with an avenue to continue developing their expertise and advance in their careers.

At SGC, we value every employee and seek to recognize and realize their potential. We regularly train employees on a range of topics, as well as offer opportunities to expand their skill sets.

REQUIRED TRAINING All employees are required to participate in training that includes topics focused on business ethics, our Code of Conduct, cybersecurity, health and safety practices, compliance, and other topics. We have resumed a normal training cadence following disruptions related to the pandemic and our employees continue to advance in making progress on their training goals.

SGC UNIVERSITY In 2021, we built on the foundation of our Learning & Development program to create SGC University. This program delivered 26 courses on 14 competency -based topics during the first quarter of 2021 with 164 registrations from 40 participants. We expanded upon the competency-based courses to include training on the Lean Initiatives program covering the “Customer Create,” “Style Master Create,” and “Pricing” functional categories as part of our Lean Six Sigma management approach. SGC University will continue to focus on employee development and leverage external resources for targeted learnings, such as the Franklin Covey “7 Habits of Highly Effective People” training we offered in 2021. We regularly receive positive feedback on our training offerings and are proud to provide tools that help our employees succeed in their professional lives. We will continue to enhance our training initiatives in 2022.

Transitioning TOG University to a virtual platform during the pandemic allowed the program’s reach to grow. In 2021, we expanded the online program to include a new course, “School of Supervisors.” Eighteen employees have since completed that program. We are rolling out additional training and development programs in 2022. “With so much going on in the world today, taking the time in 2021 to focus on extending my education was very important to both my personal and professional goals. Learning the concept and fundamentals of Lean Six Sigma allows me to better align our process improvement team with our strategic company goals. Earning my Lean Six Sigma Green Belt in 2021 encouraged one of my directors of process improvement to complete hers in 2022. Having our entire team certified is a huge benefit to the organization.” —Leslie K.

IN 2021, TOG UNIVERSITY PARTICIPANTS: LOGGED THOUSANDS OF HOURS OF LIVE TRAINING • 3,679 hours of live, online training (webinars) • 228 participants COMPLETED THOUSANDS OF TOG UNIVERSITY COURSES VIA TOG’S ONLINE PLATFORM • 540 employees graduated (out of 643 enrolled) • Graduation rate of 83.98% • 8,128 courses completed CONTINUED TO GROW AND EXPAND TOG UNIVERSITY OFFERINGS • School of Supervisors fully transitioned to online learning platform

LEVERAGED EXTERNAL TRAINING FOR SPECIAL SKILLS • 244 courses completed • 140 employees enrolled • 6,210 hours of external training completed 160 140

124 116

120 100 80

148

40 20

2017

2018

2019

2020

2021

THE OFFICE GURUS IN EL SALVADOR: EMPLOYEE TRAINING SPOTLIGHT

In 2021, The Office Gurus, our business process outsourcing division, enlisted management development specialists to onboard and train new hires to support growth and rapidly expanding headcount. Tasked with delivering an in-depth training program over the course of several months, these specialists helped their teams develop new skills and excel in their roles.

>95%

CERTIFICATION RATE

649

NEW CERTIFIED EMPLOYEES; 928 TOTAL CERTIFICATIONS

98.6% PROGRAM SATISFACTION RATE

MANAGEMENT DEVELOPMENT SPECIALISTS DIANA G.

EVA B.

STEPHANIE M.

LOUIS U.

RODRIGO H.

ANDREZ L.

TRAINING AND DEVELOPMENT MANAGER

MANAGEMENT DEVELOPMENT SPECIALIST

“This has been my best experience with training.” “The trainer was always engaged with trainees, providing feedback and helping us improve.” “It was an excellent training, thank you for allowing me to be part of this project!” 29

TOG UNIVERSITY

TRAINING AND DEVELOPMENT

At SGC, we value every employee and seek to recognize and realize their potential. We regularly train employees on a range of topics, as well as offer opportunities to expand their skill sets.

LEVERAGED EXTERNAL TRAINING FOR SPECIAL SKILLS • 244 courses completed • 140 employees enrolled • 6,210 hours of external training completed 160 140

124 116

120 100 80

148

40 20

2017

2018

2019

2020

2021

THE OFFICE GURUS IN EL SALVADOR: EMPLOYEE TRAINING SPOTLIGHT

>95%

CERTIFICATION RATE

649

NEW CERTIFIED EMPLOYEES; 928 TOTAL CERTIFICATIONS

98.6% PROGRAM SATISFACTION RATE

MANAGEMENT DEVELOPMENT SPECIALISTS DIANA G.

EVA B.

STEPHANIE M.

LOUIS U.

RODRIGO H.

ANDREZ L.

TRAINING AND DEVELOPMENT MANAGER

MANAGEMENT DEVELOPMENT SPECIALIST

DIVERSITY AND INCLUSION As a global business, it is important to us to represent the communities we serve in the more than 10 countries our employees call home. We encourage our teams around the world to share customs and holidays that foster cultural appreciation and understanding. For example, last year our BAMKO division honored Juneteenth as a paid holiday for U.S.-based employees. SGC is committed to creating a diverse, equitable, and inclusive workplace to support our employees. We work hard to cultivate a welcoming and open workplace through continuous improvement of our approach to recruitment, training, and employee recognition.

GLOBAL WORKFORCE

US WORKFORCE

GENDER BREAKDOWN*

FEMALE 2,705

Our employee handbook contains detailed information on steps we take to ensure a workplace that is free of discrimination. In addition to anti-discrimination policies and accommodations that provide equitable working conditions, we are explicit in defining harassment of all kinds and describing our reporting, investigation, and non-retaliation policies.

49%

We continue to grow and seek out new opportunities to bolster our ability to provide a work environment in which employees can share their unique perspectives and reach their full potential.

GENDER BREAKDOWN

FEMALE

MALE 2,767

580

51%

59%

FEMALE

EQUAL OPPORTUNITY EMPLOYER

401

41%

BOARD OF DIRECTORS DIVERSITY 2017-2021 2

Superior Group of Companies is an Equal Opportunity Employer that does not discriminate on the basis of actual or perceived race, color, creed, religion, national origin, ancestry, citizenship status, age, sex or gender (including pregnancy, childbirth and pregnancy-related conditions), gender identity or expression (including transgender status), sexual orientation, marital status, military service and veteran status, physical or mental disability, genetic information, or any other characteristic protected by applicable federal, state or local laws and ordinances. SGC’s management team is dedicated to this policy with respect to recruitment, hiring, placement, promotion, transfer, training, compensation, benefits, employee activities, access to facilities and programs and general treatment during employment. SGC offers a work environment in which employees can share their unique perspectives and reach their full potential.

MALE

MINORITY

2019

2020

2021

7 NON-MINORITY

1 6

MALE

2017

2018

* For the period from January 1 – June 30, 2021, representative of 89% of SGC’s total global headcount as of December 31, 2021. 31

GLOBAL WORKFORCE

US WORKFORCE

GENDER BREAKDOWN*

FEMALE 2,705

49%

We continue to grow and seek out new opportunities to bolster our ability to provide a work environment in which employees can share their unique perspectives and reach their full potential.

GENDER BREAKDOWN

FEMALE

MALE 2,767

580

51%

59%

FEMALE

EQUAL OPPORTUNITY EMPLOYER

401

41%

BOARD OF DIRECTORS DIVERSITY 2017-2021 2

MALE

MINORITY

2019

2020

2021

7 NON-MINORITY

1 6

MALE

2017

2018

* For the period from January 1 – June 30, 2021, representative of 89% of SGC’s total global headcount as of December 31, 2021. 31

COMMUNITY RELATIONS

CLINICAL APPAREL DONATIONS In keeping with SGC’s longstanding tradition, in 2021 we also donated 132,638 units of clothing valued at more than $2.6 million to 10 humanitarian and healthcare organizations serving the U.S. states of Arkansas, Louisiana, and Mississippi, along with communities in Haiti.

Investing in our communities is a core belief of SGC. In 2021, we again sponsored charitable organizations, donated volunteer time, and were involved in communities where we live and work. In addition, we expanded our efforts to support disaster relief donations globally and through direct support of our workforce.

Donations included scrubs, gowns, and clinical apparel for healthcare workers engaged in COVID-19 relief efforts. In addition, we provided apparel to shelters and community organizations that assist teens, the homeless, and others in need.

CORPORATE GIVING AND EMPLOYEE VOLUNTEERISM Charitable Contributions Each year, SGC and its divisions provide financial contributions to dozens of worthy organizations around the world in support of a range of causes.

Nonprofit organizations supported in the U.S. and Haiti

132,638 Units of apparel

$2.6M +

Worth of clothing donated

2021 CHARITABLE CONTRIBUTIONS TOTAL SGC CORPORATE AND UNIFORM DIVISION CASH DONATIONS $82.080 15 + ORGANIZATIONS

TOTAL BAMKO CASH DONATIONS $52,032 40 + ORGANIZATIONS

TOTAL TOG CASH DONATIONS $34,688 25 + ORGANIZATIONS

80 +

CHARITABLE ORGANIZATIONS RECEIVING CASH CONTRIBUTIONS FROM SGC AND ITS DIVISIONS

$168,000 + CASH CONTRIBUTIONS

BAMKO Division: Employee Gift Matching Spotlight In 2021, our BAMKO division matched employee donations to nonprofit organizations up to $300 a year per employee. Last year BAMKO matched more than 150 employee donations. In addition, BAMKO triple-matched $5,000 in employee contributions raised for an employee’s family members during a time of extreme need.

COMMUNITY RELATIONS

Nonprofit organizations supported in the U.S. and Haiti

132,638 Units of apparel

$2.6M +

Worth of clothing donated

2021 CHARITABLE CONTRIBUTIONS TOTAL SGC CORPORATE AND UNIFORM DIVISION CASH DONATIONS $82.080 15 + ORGANIZATIONS

TOTAL BAMKO CASH DONATIONS $52,032 40 + ORGANIZATIONS

TOTAL TOG CASH DONATIONS $34,688 25 + ORGANIZATIONS

80 +

CHARITABLE ORGANIZATIONS RECEIVING CASH CONTRIBUTIONS FROM SGC AND ITS DIVISIONS

$168,000 + CASH CONTRIBUTIONS

OLIVIA & FRIENDS

HELPING EMPLOYEES IN NEED

Olivia & Friends is The Office Gurus’ dog adoption charity through which we partner with local programs to rescue and adopt puppies and enable employees to support through fundraisers. The program started in 2017 when the division adopted Olivia. She brought so much joy to the office and its visitors that we felt inspired to do more. Since then, The Office Gurus have adopted another puppy, named Pepe.

2021 marked another year of extreme weather events across the globe. Some impacted our U.S.-based employees and communities. This included record-breaking winter weather that affected Arkansas, Texas, and several surrounding states. “Thundersnow” - thunder with freezing rain and sleet - which led to trees falling on roofs and frozen water pipes, became part of our lexicon. The extreme weather of 2021 was costly to communities. To respond to the impact on SGC’s employees in Arkansas and Texas, SGC leadership quickly established an Employee Emergency Relief Loan program. This program allowed our employees to take a zero-interest loan via a simple email application. By the following pay period, employees had funds available to address their severe weather-related expenses. The severe weather spurred a greater sense of community in which both company leadership and employees worked together to support those in need. When news of team members in Arkansas and Louisiana struggling with broken water lines and no running water in their homes reached their colleagues in other areas, our employees quickly raised $5,000 to help their co-workers.

BREAST CANCER AWARENESS WALK Breast cancer awareness is a cause dear to many at SGC. In October 2021, SGC employees participated in our annual Breast Cancer Awareness Campaign by walking, running, and supporting participants. Some carried signs with the names of those they honored through their participation.

In September 2021, we were recognized as the first Paw-some Partner Company in El Salvador by ARANI, a local animal shelter we have partnered with for several years. This special recognition signals that our efforts have truly helped the organization thrive. We are looking forward to helping ARANI with adoption days and other pet-related events in the future. Inspired by both our beloved dogs and company values, in 2021 we produced a coloring book called “The Adventures of Olivia & Pepe.” The book features stories illustrated by local artists, with each story representing a core value. Sales from “The Adventures of Olivia & Pepe” benefit Fundación Ayúdame a Vivir, the only non-governmental organization that provides free treatment for childhood cancer in El Salvador. SGC employees have accompanied Ayúdame a Vivir on campaigns at local malls to create awareness of the cause and support its efforts.

To underscore the importance of breast cancer awareness, we worked with six cancer survivors and our marketing team to design a commemorative scarf to raise funds for the Edificando Vidas Foundation, an organization focused on adult cancer treatment in El Salvador. Employee scarf purchases helped raise more than $1,000 in support of this effort.

To follow Olivia and Pepe’s adventures and see any new friends that might join them, please visit instagram.com/happygurutails!

CORPORATE GIVING SPOTLIGHT: SGC Toys for Tots Drive In December 2021, our Seminole, Florida facility once again sponsored a Toys for Tots toy drive to provide toys and support for children across the United States. Employees were given the opportunity to donate toys in person or virtually, as well as make monetary contributions or donate their time as volunteers.

ADOPT-A-SHORE PROGRAM Throughout 2021, SGC held four events to clean up trash at Madeira Beach on Florida’s western coastline. We adopted the beach in 2009 through the Adopt-A-Shore program, a cooperative partnership between the public/private sector and Pinellas County, Florida, which allows groups to “adopt” a section of county shoreline approximately one-mile long. Shore adoptions enhance the ability of community members to enjoy shorelines and are invaluable in helping to reduce debris entering our waterways and polluting habitats. In total, SGC volunteers collected 260 pounds of trash from Madeira Beach. 34

OLIVIA & FRIENDS

HELPING EMPLOYEES IN NEED

To follow Olivia and Pepe’s adventures and see any new friends that might join them, please visit instagram.com/happygurutails!

ENVIRONMENTAL MANAGEMENT

WALMART VEST MADE FROM 100% RECYCLED POLYESTER EACH YARD OF FABRIC IN WALMART VESTS USES 13.64 RECYCLED PLASTIC BOTTLES

Thoughtful environmental management is crucial to our operations and is an established practice at SGC. Over the last several years we have strengthened stewardship practices through green initiatives such as implementing circular economy principles, reducing material consumption, and upgrading facilities with more efficient technology. As we continue to grow in the future, we will continue to evaluate initiatives that will reduce our environmental footprint and foster a more sustainable future.

WASTE MANAGEMENT

We continued our bottle recycling program in 2021, recycling approximately 14.75 million plastic bottles – an increase of 5.35 million bottles from 2020. In 2021, 6.8% of uniform sales represented garments manufactured from recycled products.

Plastic Bottles Recycled (Millions)*

SGC has been working to reduce its environmental footprint by implementing circular economy principles in product design and manufacturing. The concept of a “circular economy” uses design principles to reduce waste and material use, and redesigns materials to be less resource intensive. Since 2019, we have been repurposing used plastics by creating uniforms from recycled bottles for our customers. By utilizing recycled plastic bottles to produce garments, we remove plastic from the environment and reduce the raw materials needed for production. 16.0

16.0

14.0

14.75M

12.0 10.0

12.0

7.8M

9.4M

8.0 6.0

4.0

2.0

SGC PLASTIC BOTTLES RECYCLED

10.0

8.0 6.0

14.0

2019

2020

2021

*Customer garment requirements and specifications impact the number of recycled plastic bottles used per garment

RECYCLED PLASTIC CONTENT: INNOVATIONS AND IMPACTS • Recycled polyethylene terephthalate (rPET) is a recycled plastic material that is used to manufacture new materials, including packaging, plastic bottles, and fabrics. • rPET’s production generates 65.5% less carbon than virgin polyester and 12% less than cotton. In addition, rPET production requires one-tenth the amount of water required to produce virgin polyester. • A typical roll of recycled polyester canvas fabric represents approximately 472 two-liter plastic soda bottles.

14.75M Plastic bottles used to produce recycled polyester garments in 2021

5.35M Increase over number of bottles used to produce recycled polyester garments in 2020

In 2021, we began production on our award-winning products made with WonderWink Renew™ — our newest line of recycled fabric, specifically developed according to our specifications. WonderWink Renew™ has been used for a range of products including uniforms and hospital scrubs. Following its highly successful launch, we have committed to increasing our inventory by nearly 20% in 2022 to meet growing demand from customers. We are in development on a line of eco-friendly products set to launch in late 2022. New lines of eco-friendly recycled plastic fabric are in development for spring and summer of 2023 as well, with new fabrics produced from coffee waste and recycled garments also being developed. In 2022, we plan to further expand our recycled materials program to develop innovative new products beyond fabric and garments for customers in a range of industries. We are exploring a suite of possible sustainable materials to replace traditional plastic uses as well, including molded pulp fiber for packaging, cardboard for clothing hangers, bamboo for disposable cutlery, and felt form keychains. We take a variety of steps to reduce operational waste. Many of our facilities are paperless environments where printing is used only for required carrier labels and documents that accompany customer shipments. Whenever possible, we re-use storage and shipping cartons and recycle 100% of unusable corrugated and other paper waste. All of our packaging is recyclable and does not use any fill materials, such as styrene peanuts. We plan to eliminate single-use polyester garment-packaging bags in 2022.

ENVIRONMENTAL MANAGEMENT

WALMART VEST MADE FROM 100% RECYCLED POLYESTER EACH YARD OF FABRIC IN WALMART VESTS USES 13.64 RECYCLED PLASTIC BOTTLES

WASTE MANAGEMENT

Plastic Bottles Recycled (Millions)*

16.0

14.0

14.75M

12.0 10.0

12.0

7.8M

9.4M

8.0 6.0

4.0

2.0

SGC PLASTIC BOTTLES RECYCLED

10.0

8.0 6.0

14.0

2019

2020

2021

*Customer garment requirements and specifications impact the number of recycled plastic bottles used per garment

14.75M Plastic bottles used to produce recycled polyester garments in 2021

5.35M Increase over number of bottles used to produce recycled polyester garments in 2020

FACILITY OPTIMIZATION AND ENERGY EFFICIENCY Our shared distribution facilities strive to reduce the environmental impacts of their operations. Several facilities invested in lighting upgrades and improved internal process to optimize efficiency and reduce waste. Sustainability practices that maximize energy efficiency and reduce waste and cost are incorporated into all new facilities. In 2021, we broke ground on a new distribution center at our Eudora, Arkansas campus. This new facility, built to modern energy-efficiency standards, was completed in 2022. In addition last year we undertook a significant expansion to upgrade our existing Eudora distribution center, originally established in 1962. The facility was updated with modern LED lighting with motion detectors, as well as a new heating and air system and conveyor and box retrieval cranes with low voltage controls, to replace outdated equipment and increase energy efficiency. Plans for additional facility upgrades were developed in 2021 and will be implemented in 2022 and future years. At our Coppell, Texas facility, in addition to improvements to overall energy efficiency, we have implemented automation into the production environment using robots that lift products. These robotic manufacturing tools enhance our employees’ production efficiency and reduce distribution costs. Through these efforts, we continue to reduce and divert waste from landfills, reduce our energy consumption, and increase overall efficiency.

100%

OEKO-TEX CERTIFICATION RATE AMONG SGC’S TEXTILE MILLS PRODUCT QUALITY MANAGEMENT In line with our ESG values, we have broadened the scope of our environmental sustainability efforts to more fully encompass our supply chain. For example, 100% of the fabric purchased by SGC for apparel manufacturing is Oeko-Tex certified, verifying products have been tested and proven to be free of harmful levels of toxic substances. Many of our products also bear the Oeko-Tex “Standard 100” label, verifying that every component of a garment — including thread, buttons, and other accessories — has been tested for harmful substances and declared harmless to human health. Our branded merchandising segment has continued to strengthen its relationships with suppliers that offer sustainable products, such as Forest Stewardship Council-certified paper, compostable plastic, and natural fabrics as substitutes for plastic-based bag materials. Sustainable swatch books are used in marketing and sales activities to highlight and promote new sustainable offerings to customers. We carried on our branded merchandising segment’s packaging recycling program in 2021 and continue to recycle corrugated and other waste. In 2021, we forged a new relationship with HeiQ, a company that invests in sustainable applications for apparel fabrics, to license the right to use their applications. HeiQ is the maker of products like HyProTecht®, an antimicrobial and antiviral technology fabric developed in response to COVID-19. HyProTecht® is EU REACH- and US FIFRA-compliant, Oeko-Tex®certified, and ZDHC- and BlueSign-homologized. HyProTecht® is also certified as safe and sustainable as its ingredients are cosmetic-grade and the material is completely bio-based. SGC products using HeiQ® fabrics are currently in development and are expected to ship in Fall 2022.

100%

CLOSING As a company of more than 6,000 employees worldwide, we are acutely aware of our impact on every household in which one of our employees lives, every loyal customer that trusts us with representing its brand, every supplier that views our company as a partner in its success, and every community where we live, conduct business, and operate. We recognize that our continued success depends on the health, wellbeing, and support of both individuals and ecosystems, and that we must invest in both to continue thriving as a business. We look forward to sharing future updates on our progress as we advance on our corporate responsibility journey while striving to live our company values more fully.

10055 Seminole Blvd. Seminole, FL 33772 +1-800-727-8643 www.superiorgroupofcompanies.com

SGC Corporate Social Responsibility Report 2021

Articles inside

PRODUCT QUALITY MANAGEMENT

FACILITY OPTIMIZATION AND ENERGY EFFICIENCY

ABOUT SGC

2021 PERSPECTIVE: PANDEMIC RESPONSE

TRAINING AND DEVELOPMENT

ABOUT THIS REPORT

LABOR PRACTICES AND HUMAN RIGHTS

A MESSAGE FROM OUR CEO

DATA SECURITY AND PRIVACY

INDIA VACCINE DRIVES