PRODUCT QUALITY MANAGEMENT

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.