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as well as a new heating and air system and conveyor and box retrieval cranes with low voltage controls, to replace outdated equipment and increase energy efficiency.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.
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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.
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