2022 Sustainability Report

Letter from the President of Entire M

Dear Readers,

on behalf of the entire team responsible for preparing this document, I have the honour and great pleasure to hand over to you the first edition of the Sustainability Report of Entire M Sp. z o.o.

Our report contains less data compared to reports from other textile and clothing companies – we have not collected a lot of data so far, and we were not aware of the significance of much of it. Nevertheless, we are aware of the scale of the negative impact of the broadly understood textile industry on the environment and we are determined to make changes in this respect. Entire M aims to reduce the negative impact on the environment in two dimensions: the products and the operational activity. A circular, repairable and long-lasting product, which is produced in decent, fair, safe working conditions and using renewable energy, is probably the best answer to the challenges faced by the textile industry, which will result not only in the assumed reduction of CO2 emissions, but also in real improvement of working conditions.

We want Entire M Sp. z o.o. to be an entity in which not only the environmental area is of great importance. The assumptions of Entire M’s strategy will not be achieved without appropriate know-how, competence and operational excellence, hence the coming years will bring a number of development projects in these areas.

2022 was full of challenges. In its first quarter, we still felt the restrictions resulting from the COVID-19 pandemic (problems and difficulties in supply chains). On February 24, 2022, Russia entered the independent territory of Ukraine, starting the war. On the same day, we blocked the sale of our products to Russia and Belarus – for us, it was once again a natural decision resulting from our values. Since the beginning of the war, we have been helping and will continue to help Ukraine, but we have decided that we will not communicate our actions.

In addition to COVID-19 and the Russian invasion of Ukraine, the increase in consumer uncertainty has also contributed to the economic crisis – rising food and energy prices, record inflation, and higher costs of credit installments.

We do not hide that the demand for our products was largely generated by the war in Ukraine.

In 2022, we generated PLN 195,000,000 of net revenue from the sale of products and goods, consistently implementing the assumptions of Entire M’s strategy. In the following years, we will be focusing on the dynamic development of the product offer of our own brands Helikon-Tex® and Direct Action®, an increase in the share of own production and the number of points of sale.

I am convinced that during the work on this report, we have learned a lot, the next editions will be more extensive, the number of indicators we report will grow, and we will continue to change. We prepared this report in a period that was demanding for us in terms of business – a period full of emotions and uncertainty. We have created a baseline, a starting point for further changes in our organization, for which I am truly grateful to the entire team.

I encourage you to read all pages of the report in depth.

Should you have any questions, please contact our ESG project manager, Małgorzata Nowosielska (m.nowosielska@ entirem.com).

Yours faithfully,

Jędrzej Mieszczak President of the Management Board of Entire M Sp.z o.o.

2. ABOUT ENTIRE M

2.1 Activity of Entire M

We are a company that produces military, tactical, and shooting clothing and equipment. We have created two globally renowned own brands –Helikon-Tex® and Direct Action®. Our products perfectly support the work of the services and are a baseline for enthusiasts of both sports and tactical and survival outdoor. Our sales network is also engaged in the distribution of highly recognized global brands operating in the tactical and work equipment segment: Morakniv®, Wildo®, Hultafors®, Atwood Rope®, ALTA®

What does the name Entire M mean?

• Entire means complete. A broad, holistic profile of our company in its segment.

• M – refers to the military industry from which our company originates. It also refers to the first letter of the company founder’s last name – Grzegorz Mieszczak

• [2-1] Entire M sp. z o. o

• Launch of the company’s operations under this name – 2012 (in 2021, Entire M became the owner of the Helikon-Tex ® and Direct Action® brands, which previously functioned as separate companies).

• Legal form – Sp. z o.o. (limited liability company).

• TAX IDENTIFICATION NUMBER (NIP): 8943037908

• National Business Registry Number (REGON): 021820847

• National Court Register Number (KRS): 0000410970

• Company address – Radomska 34, 54-032 Wrocław

• Head office – Błonie, Miękinia municipality (approx. 10 km from Wrocław).

• Subsidiary – Taiwan

• Wholesale of clothing and footwear, according to the Polish Classification of Activities (PKD).

Head office

The head office of Entire M is located in Błonie in the Miękinia municipality, west of Wrocław. Our offices and warehouses are located at Zachodnia and Sosnowa streets. It is in Błonie that the headquarters of the Management Board, and the product development, sales, and accounting departments are located. Our products travel from Lower Silesia to reach more than 100 countries in the world.

[2-6]

Helikon-Tex® https://www.helikon-tex.com/pl_pl

.

Helikon-Tex® is a brand aimed to reach all fans of spending time actively. It combines solutions known from the military world with completely modern designs for shooters, bushcraft enthusiasts, outdoor lovers and people looking for tactical features in an urban environment.

The wide offer includes not only clothes but also bags, backpacks and cases as well as specialist equipment, designed with an experienced and demanding user in mind. In its development, the brand is guided by the slogan #JourneyToPerfection focusing not only on the production of still better collections but also on operating in accordance with the principles of sustainable and ecological production.

• Morakniv® - a renowned and tradition-driven Swedish knife manufacturer. The company’s offer includes tools for working with wood, as well as kitchen, fishing, and tactical knives and a wide range of accessories. (Cooperation for the past 32 years).

• Wildo® - an experienced Swedish manufacturer of camping equipment. The brand provides tourists with reliable and very durable equipment that works even in the strictest conditions. (Cooperation for the past 15 years).

• Hultafors® - the company has been producing axes and accessories for over 130 years, allowing for precise, effective and safe work with wood. (Cooperation for the past 4 years).

Direct Action® https://www.directactiongear.com/

Direct Action® is a brand created to fulfill the desire to transform the rich experience of special forces operators into top-class tactical equipment.

It offers highly specialized equipment used by elite police and military units. The brand follows the #GoLoud slogan, which stands for an uncompromising approach to design and production. It is possible thanks to our own sewing facility, which is being developed in Poland for many years. Thanks to it, designers have direct access to each stage of the production of equipment and clothing. The sewing facility in Nowa Ruda operates according to the highest standards, training a new team of experts in the field of tactical equipment and clothing production.

• Atwood Rope MFG® – an American manufacturer of ropes and cables, operating since 1985. Using advanced machining techniques and modern materials, the company manufactures equipment for military and civilian use. (Cooperation for the past 5 years).

• ALTA® - an American manufacturer of tactical protectors with over 40 years of experience. Made of durable, yet flexible materials, ALTA® protectors are manufactured entirely in the USA. (Cooperation for the past 8 years).

Entire M was founded in 1983 by Grzegorz Mieszczak. The history of this business is related to geopolitical changes in Central and Eastern Europe.

In the early days of the company, its founder, in a small workshop, took up the production of leather accessories, commemorative stamps and other souvenir items. He acted locally, taking advantage of the very little possibilities to run an independent company in the communist regime. He expressed his freedom beliefs in 1983, when Lech Wałęsa received the Nobel Peace Prize. At that time, in cooperation with the company Metaloplastyka, Grzegorz Mieszczak produced 100,000 commemorative signs with the “Solidarity” logo, thus commemorating the symbolic character of the famous trade union and the fall of communism in Europe in 1989.

From the very beginning, the founder of the company was guided by the values that are still current in life and business – development, ethics and tolerance. These values form the foundation of Entire M to this day.

In the late 1980s and early 1990s, Grzegorz Mieszczak has established a business relationship with the Swedish knife brand Frosts (currently Morakniv®). After the fall of communism, he became the exclusive distributor of this brand’s products in Poland. Currently, Entire M remains strongly associated with this knife manufacturer that is valued even by the Swedish royal family. This shows that Entire M’s business is about lasting, solid and curated relationships.

In 1998, the company was moved to the Miękinia commune near Wrocław, which allowed for the development of its business and the start of the import of military surplus. As a result, the products reached the sales network throughout the country. The business grew at a surprisingly fast pace and was successful.

The next step was the start of own production of uniforms in Asia in 2001. This decision turned out to be a business lever, affecting the entire future of the company, which began to build awareness in the military and tactical industry and look for opportunities for further development in this area.

Milestones of Entire M

START 1983

Launching the business.

1996

Starting own production.

2019

The Helikon-Tex® brand is making its first appearance at the SHOT Show in the USA. The company employs more than 100 people.

1998

Termination of trade in surplus products.

2004

Introduction of the SFU uniform to the market.

20 1 8/19

Warehouse expansion, investment in a new office in Wrocław at Legnicka Street. Starting construction of new headquarters and logistics centre in Błonie/Miękinia.

2020

An Asian subsidiary of the company is established in Taiwan. Entire M gains direct insight into the manufacturing process of some Helikon-Tex® products and greater control over their quality.

2013/14

The Direct Action® brand is formed and its production is launched in the new in-house sewing factory in Nowa Ruda.

2021

Helikon Tex becomes Entire M, and the management changes. Jędrzej Mieszczak becomes the President and Piotr Mieszczak becomes the Vice-President.

2009

Helikon-Tex® products make their debut at the largest trade fair in Europe – IWA in Germany.

2007

A new warehouse and office are being built in Błonie near Miękinia.

2022

Opening of the second wing of the office building in Błonie/Miękinia.

2023

Opening of another own sewing factory, the employment exceeds 250 people.

[2-6] Scale and scope of business Family business

We are proud that Entire M is a family business with Polish capital and global reach. Our organization brings together people with the same values who act with the next generations in mind.

With our products, we reach users on almost all continents. This is done through online shopping channels and direct sales to our distributors.

Since February 2022, we have not been selling to Russia and Belarus.

Owner family values

From the very beginning, the founder of the company was guided by the values that are still current in life and business – development, ethics and tolerance. These values form the foundation of Entire M to this day.

freedom of speech respect for every person fullrespect for private and business opinions

Strategy

[2-6] Our strategy provides for the further development of the design and distribution facilities.

This will allow us to maintain a business model that has the following advantages:

1. Flexibility in creating new products.

2. Diversified product portfolio.

3. Expanding sales markets/customer groups – developing brand recognition.

4. Effective management of our know-how, financial and human capital.

5. Implementing the ecological goal – we strive to design zero-emission production processes and, as a result, products that will have as little impact on the natural environment as possible over the entire life cycle.

How are our brand products developed?

As the ordering party, we care about partnership and long-term and fair relations with our contractors, guided by the win-win principle, which means that both parties have to be satisfied and benefit from our cooperation. You can learn more about our approach to suppliers in Chapter 3.

How are our brand products developed?

How do our products reach the market?

Entire M in numbers

195 PLN million was the net revenue from the sales of goods and products in 2022.

40 YEARS

our story began so many years ago – in 2023, we celebrate our anniversary.

YEARS 32

we have maintained a business relationship with knife manufacturer Mora for such a long time.

customers from more than 100 different countries purchased our products every month in 2022.

2.2 Corporate governance and risk management

[2-12] [3-3 Business ethics] A strategic and structural approach to managing our company according to sustainability/ESG principles began in 2022.

Nevertheless, Entire M’s founder, as well as his sons-successors, has always strived to demonstrate a responsible approach to business.

We are at the beginning of the journey to systematise our approach to corporate governance and broadly understood business ethics. That is why we carry out the necessary changes in the organization and expand our knowledge – because we want to achieve perfection in the area of business ethics. In this section we describe what we have done to be able to assess our impact and manage it effectively at Entire M.

Management system

[2-9] [2-10] [2-11] [2-12] The Management Board of the company consists of members of the owner family:

• President/CEO - Jędrzej Mieszczak (executive member)

• Vice CEO – Piotr Mieszczak (executive member)

The tasks of the Management Board include the implementation of Entire M’s Strategy, including the initiation of processes related to ESG (environment, social, governance) areas. At weekly meetings, the Management Board monitors the progress of projects related to the environment, society and corporate governance, in accordance with the assumptions of the company’s sustainable development.

Relationships at the core

The family profile of the company creates close relations with the management team of the company, which consists of department directors:

• Product and Logistics – Krystian Łopatka

• Marketing – Agnieszka Łabuszewska

• Sales – Tomasz Prokopowicz

• IT – Tomasz Felsztyński

• Accounting – Sylwia Rushall

• In-House Production – Piotr Syrek

How are our brand products developed?

These relationships allow us to maintain current communication in ESG operations.

In addition, within the business structure, individual projects are managed by team leaders who report work progress to department directors.

IT, Accounting, Payroll & OHS, Human Resources, Facility & Fleet, Complaint and QC, ESG (CSR)

Management Board: 100% men

Steering Committee for the Entire M Strategy: 85% men, 15% women

In 2023, the Steering Committee for the Entire M Strategy was established. The Committee consists of: CEO, Vice CEO (independent members), Product Director Krystian Łopatka, Marketing Director Agnieszka Łabuszewska, Sales Director Tomasz Prokopowicz, IT Director Tomasz Felsztyński and Change Manager Maciej Słomian (dependent members).

The task of the Committee is also to supervise strategic activities within the framework of implementation of the strategy. To this end, we created a network of projects that develop the organization, expanding the organizational structure with the position of a project manager, which gave the structure the form of a matrix.

Members of the Steering Committee are selected taking into account the competencies related to the areas they manage, and they have a direct impact on the achievement of the company’s goals.

Maciej Słomian, Change manager:

– Achieving Entire M’s ambitious strategic goals requires proper balance in the development at every organizational level. it is the responsibility of the change management unit to manage the Vision 2030 implementation process and build the foundation for further development.

Back Office Sales Marketing our sewing factories and suppliers

Manufacturing creating a product

Product

ESG management

E (environmental)

In the years preceding the publication of the report, we invested in RES (photovoltaic panels and heat pumps) and we continued this process in 2022.

This is our base year for CO2 emissions reporting and, in general, for reporting our total environmental impact.

Thanks to analysis, we will be able to take appropriate actions in the future to reduce our environmental impact in two dimensions:

• product;

• operations.

S (social responsibility)

We work with our partners, suppliers in partnerships that rely on longterm relationships and stability. We believe that by developing together, we not only create shared value, but also draw on each other’s own experiences, which again affects the entirety of relationships understood in this way

For us, the basic criteria for selecting a supplier is the compliance of its business processes with ethical and environmental standards that we ourselves recognize. We explore this through the “Supplier Form” and visits to production sites.

Entire M offers the market high-quality specialist products that our customers can rely on. In order to maintain the regime of perfectionism, we take steps to stay in contact with the permanent, qualified staff of our suppliers. Similarly, in our own structures we care about maintaining a team of professionals as well as technological advances. While improving our systems and management structure, we also offer training programs for our employees.

Together with the creation of the HR Department in 2022 (responsibilities: human resources management, supporting the wellbeing of employees, their development, work culture), we selected the employee representatives (appointed for 4 years) in a democratic election.

The tasks of the representatives include:

• dialogue between the employees and Entire M as their employer in the area of organization and health and safety at work;

• supporting the employer in decisions regarding the Employee Benefit Fund and the Employee Pension Scheme.

G (governance)

As the organization develops, we face new requirements and needs regarding corporate governance. We are aware that many aspects of Entire M’s sustainability need to be systematized.

Supplier Form

Małgorzata Nowosielska, ESG Project Manager

– One of the milestones on our path to excellence is the just-published, first-ever Entire M’s 2022 Sustainability Report. It was created voluntarily in cooperation with a consulting company. The report also serves as an element of improvement of our management. In its preparation, for the first time, we took steps to identify stakeholders and started a dialogue with them through a survey. In the following years, we are planning to improve this dialogue process so that the selection of material reporting topics is fully in line with their expectations.

This is the first page our suppliers see when filling in the Supplier Form.

Strategic approach

[2-13] [2-14] [2-17] The responsibility for managing the ESG area rests with the President of the Management Board. Coordination of work between departments responsible for individual ESG indicators is handled by Małgorzata

Our obligations

Nowosielska ESG Project Manager,

who reports to the Management Board.

What is important, during the work on the report, the ESG Project Manager was supported by an interdepartmental project team, which included representatives of the key departments of Entire M: Product, Marketing, Sales, Accounting, Payroll, HR, Own Production, IT, Compliance and Quality Control, Facility and Fleet, as well as the Change Manager. This demonstrates Entire M’s unchanging values as well as the Management Board’s determination to grow the company sustainably. Being aware of the complexity of this area, members of the Management Board, with the support of the Project Manager and a consulting company, as well as participating in conferences related to the ESG area, constantly acquire new knowledge.

[2-15] [2-16] [2-18] The effort dedicated to introducing a new structure as a management tool based on sustainability/ESG will also allow for the assessment of ESG risks in the following years, starting from 2022, which will be the baseline year. This includes, in particular:

• development of a system for communicating critical issues, which currently consists in a weekly review of project statuses, including conflicts of interest;

• evaluating the performance of Management Board members on the economic, social and environmental impacts of Entire M;

• gathering know-how, including collective knowledge of the Management Board.

• in dedicated ESG areas. (So far, this was implemented through cooperation with a consulting company.)

[2-23] [2-24] [2-25] In our Entire M strategy, we are committed to developing the company with respect to the environment, both in its products and in its operations. In doing so, we were guided by the “OECD Guidelines for Multinational Enterprises”. As we read in Part VI of this document:

„Enterprises should (...) take due account of the need to protect the environment, public health and safety, and generally to conduct their activities in a manner contributing to the wider goal of sustainable development.”

We are aware of the complexity of the ESG area and the place where we are as a company with less than 250 employees. As Entire M develops, we will assess our negative impact and develop processes to mitigate or correct it. The policies and procedures we create will spell out our commitment to sustainability.

In line with our ambition, we want to showcase our progress towards ESG perfection.

3. ETHICS AND COMPLIANCE

[own indicator: 1] Our values, unchanged for 40 years, have laid the foundation of today’s Entire M.

Development, ethics and tolerance, are the basis for the other values and features that characterize us. We identify with them and encourage our surroundings to act in a similar spirit. This means that:

Passion and pride - We feel the joy of contributing to the creation of Entire M products. We are proud to represent Entire M outside the company walls.

Partnerships - Despite differences of position, we treat each other equally.

Openness to cooperation - We show a willingness to help and solve problems together through teamwork. We focus on solving the problem, not passing the buck.

Creativity - We go beyond the usual paths and patterns of action and are happy to propose new ideas.

Honesty and sincerity - We are guided by honesty and purity of intentions in communication and acting without a hidden agenda. When we have an issue, we discuss it and solve it together, even if we do not agree with the other party’s point of view. We act ethically and in good faith in accordance with the interests of Entire M.

Independence in action - We set ourselves goals but give autonomy in achieving them. At the same time, we set decision-making criteria so that cooperation is better adapted to the realities of a given decision-making area.

We expect our people to understand the broader context of the organization’s functioning in order to understand what it takes to give a greater level of independence.

Maciej Słomian, Change manager:

– We offer members of our organization the opportunity to learn the direction of development in depth, expecting to understand the broader context of the functioning of the organization. We trust our people, which pays off with a higher level of independence, so that the operation of each Entire M cell releases the highest possible resources of employee potential.

Compliance

[2-26] As Entire M develops, we will be developing matters related to corporate governance. We are aware of the formal regulation of the company’s ethical principles and the possibility of reporting any irregularities, as well as of the internal regulations on the prevention of conflicts of interest. We are following the ongoing work in Parliament on the Whistleblower Act because we want our stakeholder concern reporting mechanism to be compliant with future legislation.

[2-27] In 2022, no fines were imposed on Entire M.

We are investing in our sewing factory in Nowa Ruda, and one of activities in this respect is the construction of a new dressing room for the crew. The current one no longer meets all the requirements, which was also demonstrated by the control of the District Sanitary Station. Other external inspections carried out at our plant, warehouse and offices did not reveal any irregularities.

4. ENVIRONMENT RELATIONSHIPS

4.1 Stakeholder relationships

[2-29] We value long-term direct relationships and knowledge about our partners, because we believe that they are crucial for the functioning of Entire M. That is why we have developed the stakeholder map by analyzing engagement and its impact on the organization. More on the stakeholder map, as well as the process of its creation, can be found in Chapter 9.

The map was used for communication with stakeholders – we sent them an impact survey. We included questions that addressed the following sustainability issues:

• climate change;

• environmental pollution, including water resources and their consumption;

• preservation of ecosystem biodiversity;

• use of raw materials and recycling/waste management;

• compliance with health and safety rules;

• real equality at work;

• healthy lifestyle;

• professional development opportunities;

• counteracting mobbing;

• respect for human rights;

• relationships with business partners;

• impact on the local community;

• counteracting poverty;

• impact on good relations and customer service quality;

• impact on innovation and implementing new technologies.

We received back 40% of the completed surveys. These surveys were also used in the process of preparing this report.

The ways we communicate with stakeholders depend on the level of their impact on our organization and our impact on their functioning.

Entire M stakeholder map

Ways of communication at Entire M [2-28]

The ways of communicating with stakeholders did not include the intermediation of associations or industry organization, because Entire M does not belong to any such organization.

Tomasz Prokopowicz, Sales Director:

– Thanks to participation in the largest trade fairs in the world –SHOT Show in the USA and IWA in Germany – we maintain constant communication with current and potential customers.

This also applies to local industry events. For us, a fair is an invaluable source of information about the prevailing trends and the constantly changing customer expectations.

Stakeholders

Channels of communication

Management Board Intranet connected to an internal social platform, Google Meet, emails, on-going and summary meetings, trainings and webinars, team-building meeting

Employees Intranet connected to an internal social platform, Google Meet, emails, on-going and summary meetings, trainings and webinars, ideas box, employee representation, team-building meeting

B2B and B2C customers – distributors, institutional and retail customers

Internal ordering system, online store customer service, bilingual website, newsletter, chat, phone, e-mail, contact form, dedicated account and market managers, after-sales surveys for e-commerce customers, internal complaint handling system, attendance at trade fairs

Social media and prospective customers Instagram, Linkedin, Facebook profiles and a thematic group on Facebook (#JourneyToPerfection), newsletter, Customer Service Department chat, PR manager activities, website, industry media

Suppliers – distributed products, finished products, services, raw materials, packaging, transport companies

E-mail, popular instant messengers, meetings at trade fairs, meetings at suppliers’ premises, ordering system, forms for future suppliers.

4.2. Customers

[2-6] All our design, organizational, production and logistics efforts are designed to meet the needs of our customers. It is a demanding group of recipients, due to the nature of their activities, passions and profession. Often, the success of their projects, missions or other ventures or expeditions depends on the quality of their equipment. That is why we take special care in every aspect of the business-customer relationship.

This includes supplies for special forces units on land and sea, for which Direct Action® is intended. The size of distributors varies from large (in terms of scale and scope of operations in a given country) to smaller, more specialized companies.

Tomasz Prokopowicz, Sales Director:

In the B2B channel, each distributor, contractor or institutional customers can count on the advice and assistance of their account managers, with whom they maintain contact in operational matters. In addition, a distributor belonging to a geographically defined market has an assigned market supervisor with whom they determine strategic matters related to their activities.

customers B2C

– The DNA of our brands puts the Customer first. It is for them that we design our clothing and it is with them that we try to have as close contact as possible. That is why our numerous distributors, business partners and end recipients of our products can always count on expert help and advice. Selling is a great commitment for us to ensure the highest quality and functionality of the products.

The market manager and the account manager work closely together to ensure the best possible support and the highest quality of service.

In the e-commerce channel, customers are supported by a multilingual team, which responds to numerous inquiries about the product and orders on an ongoing basis. Our retail customers can also reach us via social media, e-mail and telephone.

people making purchases on the E-Commerce platform B2B Retail

institutions ordering HELIKON-TEX® and DIRECT ACTION® customer support Institutional customers

institutions ordering HELIKON-TEX® and DIRECT ACTION® products

products B2G Contractors/distributors

over 900 constantly cooperating entities in Europe, Asia, Australia, North and South America brands purchase channels Electronic B2C/E-commerce and B2B order service system/Account managers /Market managers

over 900 constantly cooperating entities in Europe, Asia, Australia, North and South America

200THOUSAND OVER

200THOUSAND OVER MILLION

clients/month/all over the world - it's the amount operated by our e-commerce channels of Helikon-Tex® and Direct Action® brands

clients/month/all over the world - it's the amount operated by our e-commerce channels of Helikon-Tex® and Direct Action® brands

our Helikon-Tex® and Direct Action® brands Customer Service quality level according to Trusted Shops. We are proud of the high rating of our company.

The company has a specialized customer service team in each of the sales channels. Its task is to maintain constant contact with the recipients of our products in close, professional relations.

Close cooperation only

Entire M products reached customers in 2022, through the shops of our partners, distributors in over 100 countries

200THOUSAND OVER MILLION

Distributors of both our brands operate in the broadly understood military and outdoor market, with particular emphasis on the professional market.

clients/month/all over the world - it's the amount operated by our e-commerce channels of Helikon-Tex® and Direct Action® brands

Entire M focuses on long-lasting relationships built on trust. Hence, our business partners can count on loyalty, reliability and goodwill, which also translates into handling most sensitive matters in their favor.

our Helikon-Tex® and Direct Action® brands Customer Service quality level according to Trusted Shops. We are proud of the high rating of our company.

Entire M products reached customers in 2022, through the shops of our partners, distributors in over 100 countries

Entire M products through the distributors

4.3 Supply chains

[2-6] Supply chain /external production

Supply chain /own production

[3-3 Responsible supply chain] We are aware of the impact of the supply chain and chemical safety on the environment and society. In order to act in accordance with the idea of sustainable development, we want our supply chain to be responsible. That is why we have developed selection rules and conditions that we impose on suppliers – we describe them in this section.

Warm and professional

We do not want to be anonymous in contacts with our partners – suppliers, contractors. We also assumed that the relationships we want to establish should not take place only online, which is a trend after the COVID-19 pandemic. We focus on a diverse and multi-level contact with our business partners. What is important, when choosing suppliers, we emphasise face-to-face meetings, a good knowledge of the production site and on-site verification of the quality provided on the production line.

Later, often extensive, everyday contact with suppliers makes the relationships become more friendly. However, we do not forget that all this serves to maintain mutual business obligations.

We stay in touch

During internal workshops with our buyers, we discussed the relationships with our suppliers. The meeting resulted in emphasising the following principles of cooperation:

When choosing suppliers, we take into account:

• technological competences that meet the requirements of production of specialised equipment,

• compliance with social ethical standards, working conditions and European regulations, e.g. the REACH system regarding allowed chemical substances, including in the process of finishing products,

• fast and flexible supply chain tailored to our orders,

• mutual honesty, reliability, trust that builds a strong partnership,

• in mutual contacts, we rely on a win-win strategy,

• we focus on long-term cooperation, mutual development and commitment.

• price.

For the new relationship, we determined that the existing portfolio of the prospective supplier was important to us, as well as the recommendations of existing suppliers.

[3-3 Chemical safety of products] [own indicator: 5]

REACH - Registration, Evaluation, Authorisation and Restriction – is a legislative package in force in the European Economic Area.

Its aim is to increase the safety of chemical management. Entities covered by REACH must register chemicals, keep technical documentation and evaluate substances. They apply for licenses to use the substance for production and marketing.

When choosing suppliers, we pay special attention to the fact that only safe chemicals are used in the process of finishing products to reduce the possible negative impact on the environment.

–

Monika Stelmarczyk, Merchants Department Leader:

In relationships with our suppliers, the most important thing is cooperation, which is based on conversations, mutual understanding and pursuit of the same goals. A win-win cooperation, which is strengthened by daily e-mail contact and live meetings.

[own indicator: 2] Supplier selection steps

consent to prototyping, sample testing and quality verification compliance with standards

verification of capabilities, quality and price

quality control of pre-production piece, also at the supplier’s plant quality control of production piece signing confidentiality obligations

price negotiations placing the order delivery and full production quality verification

Conditions for suppliers

[3-3 Human rights and conditions of employment and remuneration]

In our supply chain, we are committed to respecting human rights and those aspects of sustainability that relate to production ethics. Therefore, if we have objections to working conditions at the supplier, we do not start or even resign from cooperating with them.

Our sensitivity to decent pay is also reflected in the recognition of the economic situation in the country of origin of the product and the calculation of the price that could suggest the exploitation of employees. We believe that in order to ensure the highest quality of our products, we must be sure of what and under what conditions they are made.

[own indicator: 4] Breakdown of suppliers of finished products for Helikon-Tex® i Direct Action® by year of cooperation.

35% suppliers who have been working with us for 15 years.

new suppliers and those working with us for up to 4 years.

45%

20%* suppliers who have been working with us for 15 years.

*This group includes suppliers who have been accompanying our brands for 32 years

UTP Urban Tactical Pants – has enjoyed unflagging interest for 12 years. These trousers were created in close cooperation with our suppliers.

5. INNOVATION AND DESIGN APPROACH

[3-3 Environmental impact of suppliers] When manufacturing products, we are guided by maximum durability – longevity, and functionality. We don’t create seasonal collections. This is our response to excessive consumption, which has a negative impact on the environment. We are convinced that clothes and products used for many years have a lower impact on the environment than seasonal collections.

The most appropriate use of company know-how, employee experience and current market research is working on new products and clothing.

This process involves combining the usability and durability of products.

At Entire M, we are aware of the environmental impact of the clothing industry. That is why, guided by responsibility and developing the company in a sustainable way, we combine usability with product durability at the design stage.

Here is how the design process works:

1. The Design Department performs the design taking into account the load and potential weaknesses of the product during field use and daily care. Designers and experts draw on their own experience in determining how to use equipment/clothing in the field and on a daily basis,

2. The Design Department – by transferring the designer’s vision to the diagrams used by the sewing factory – reflects the desired functions of the product. Through prototyping, they determine the desired model and create technical and technological documentation.

3. Prototyping Department creates prototypes and prepares them for testing so that, after corrections, a product in line with the designer’s vision is created.

4. The Technology Department tests the fabrics and components. This stage focuses on the resistance of the fabric to piling, friction, colour fastness, etc. The Technology Department determines the ways of optimal maintenance and verifies compliance with legal environmental requirements.

Here is what ensures the durability of Entire M products.

The pattern corresponds to the maximum functionality and versatility of the product.

RIPSTOP weaving allows us to strengthen the thinner material and protect it against tearing.

Zips made by YKK – a reputable manufacturer is a guarantee of quality.

Abrasion-resistant, water-repellent, non-oxidising, water-repellent Cordura 500D fabric.

Essential Kitbag

Buckles made by Woojin – a reputable manufacturer is a guarantee of quality.

Design process to reduce environmental impact

MOLLE – Modular Lightweight Load-bearing Equipment

[own indicator: 3] When designing clothing and equipment, we are guided by the compatibility with MOLLE or PALS systems. In practice, this means that we use these systems in almost our entire assortment, so that each customer can use the equipment in any configuration, expanding its functionality with the equipment of other manufacturers. What really matters is the complete freedom and versatility in the personalization of equipment. In the same spirit, we also standardize the width of the belts. This way, we do not create exclusive kits. We follow the same principle when introducing products from other brands to our offer – e.g. the Pathfinder canteen is tailored to the Essential Kitbag from our offer.

Modular system for carrying personal equipment of the US Armed Forces. In wider use since 2001.

Interchangeable elements allow to create sets that best meet the needs of users

PALS – Pouch Attachment Ladder System

Fully compatible with MOLLE.

We extend the life of products

We provide our customers with comprehensive knowledge of product maintenance and methods of extending their useful life. Customer Service by chat, e-mail and telephone provides comprehensive knowledge about the maintenance of our products, i.e. refreshing the coating of the material or making minor repairs on your own. We are able to provide our customers with items such as buckles or Velcro free of charge.

The quality and durability are evidenced by the number of complaints that are received from people using our products. In 2022, the rate of reported complaints in relation to products sold was 0.07% for Helikon-Tex® and Direct Action®.

We also already repair products at customer’s request expressed by contacting the Customer Service or through complaints.

We are also able to achieve this result thanks to the quality checks carried out before putting the products on the market. During these checks, we detected defects in 0.11% of the products that were supposed to leave the production plants.

We have also achieved such good results thanks to previous decisions to implement the ISO 9001 management standard in our sewing factory in Nowa Ruda in 2019. Entire M. is also AQAP 2110 (Allied Quality Assurance Publication) certified, confirming that our products meet NATO quality requirements in design, development and production.

Meeting these requirements is associated with the continuous improvement of the solutions we have developed and our team involved in the production. That is why, in 2022, we analyzed and coded all the quality errors detected in production in recent years. As a result, we can more effectively manage the quality and risk of product defects and point out areas for improvement to our suppliers in order to ensure the highest quality.

Bandicoot and Possum waist bags made of materials left over from production. We also use leftover materials to produce shopping bags and compression sacks.

Bandicoot and Possum waist bags

Design process to reduce environmental impact.

[3-3 Innovation and intellectual capital, including approach to design] [Own indicator: 6] When designing clothing and equipment, we faced challenge of how to combine two aspects of our product: ease and simplicity of care with longevity.

The approach to design is one of the determinants of our innovation and intellectual capital, which are appreciated by our customers.

In conditions far from home, during accidental wetting of material, tactical clothing should dry quickly.

Popular civilian clothes are not subject to such requirements. Drying of advanced clothes in the field results in the need to leave them outside for some time.

Quick-drying features affect the resistance to sunlight in a directly proportional way, and we certainly do not want our products to fade quickly. At the same time, it is necessary to take into account what will be beneficial for the user and what will be beneficial for the environment (textiles, production).

Therefore, we have analyzed customer complaints that concerned the fading of the material, which resulted in the optimization of the finishing processes of the fabric. Together with the supplier, we have increased the durability of products and their resistance to weather conditions.

Paweł

Supernat, Research and Innovation Manager:

– At the Research and Innovations department, we are committed to the principle: check, do, test, repeat. This is how products are created that will last for years. When designing a rain jacket, we check whether it can be damaged in the field. If we find a case that can only affect one in a thousand customers, we wonder what we have to do to prevent it from happening at all – e.g. strengthen the element that can be a weak link or improve the part exposed to wear and tear. We test our products and finally repeat the whole process until we are sure that it meets our requirements.

Marcin Jędrzejczak, Research and Innovation Expert:

– In our work, we pay attention to ensuring that products are timeless and last for years, regardless of external factors. For us, it is synonymous with eco-friendliness of products, because once purchased it serves for many years, and the customer does not have to buy more of them. When designing clothing, we always assume the most difficult conditions to make sure that customers will never be disappointed by the equipment – even if it is not used for its intended purpose. At the same time, we do not forget about materials and elements that are to be as sustainable as possible.

Clothing maintenance symbol: Dry in shade

Symbol konserwacji odzieży Suszyć w cieniu

6. ENVIRONMENT

6.1 Our environmental impact

Total

consumption of energy from renewable sources

[3-3

Energy management]

The Entire M strategy obliges us to develop production and commercial activities in the most ecological way. In addition to pro-environmental activities in the value chain, we have introduced ecological solutions in our facilities:

• photovoltaic panels – installed in our offices and warehouses in Błonie at Sosnowa and Zachodnia streets, which allowed us to meet the demand for electricity in 63% for facilities at Zachodnia street and in 68% for the office and warehouse facility at Sosnowa Street. Our plans for 2023 include similar activities in more of our locations;

• we have introduced LED lighting in offices;

• we installed ground-coupled heat pumps at Sosnowa and Zachodnia streets in Błonie, which contributed to reducing the consumption of natural gas for heating buildings. We also prepared a heat pump installation plan in our next facility;

• we insulated the building at Zachodnia street in Błonie II;

• we introduced a recuperation system with ventilation in the facilities at Sosnowa and Zachodnia streets in Błonie;

• we filter tap water so that we do not use plastic water containers;

• our fleet of company cars includes one electric car. Two charging stations for electric cars are available in Błonie and in Nowa Ruda.

[302-1]

Consumption in 2022 Purchased electricity 127,032 Pellet 81,033 Gas 222,176 Consumption in 2022 Electricity 270,603 Thermal energy 303,209 Cooling 0 Steam 0 Consumption in 2022 Electricity 143,571 Consumption in 2022 Total energy consumption in the organization in gigajoules (GJ) 20,657.23

In offices, we segregate waste (paper, plastics, glass, used batteries), we also collect bottle caps for social purposes. We are proud of planting trees and a flower meadow on the premises of the plant in Miękinia/Błonie. As part of the employee initiative, we also installed bird feeders there.

Ewa Szczelina, Facility Manager:

Finished product warehouse. Working towards reducing the environmental impact.

• Purchase of new forklifts equipped with lithium-ion batteries (longer battery life).

• Replacement of power sources in old forklifts with acid batteries (e.g. hydrogen emitting) with lithium-ion batteries.

• In the warehouse, we introduced a WMS system based on EDI. This allowed for to eliminate paper in the internal document flow.

Waste is segregated into fractions: paper – cardboard, plastics – tapes, films, strips. Waste is sent to a recycling company.

• We have moved away from paper sales invoices attached to B2B shipments to EDI (Electronic Data Interchange).

• We print documents when it is required, e.g. for customs clearance.

• We have introduced B2C shipping packaging using foil packs from LDPE regranulate, which is made from recycled plastics.

• We re-use cardboard packaging in which our products are imported from suppliers – we use it to send orders to B2B customers.

• We have introduced FSC (Forest Stewarship Council) certified shipping packaging in the B2C channel, with the possibility of reusing it, e.g. to send back a parcel.

Since 2022, the Branding Department has been implementing a project responsible for sustainable development of packaging. The goal is to build customer awareness and experience while minimizing packaging waste.

The department deals with the optimal branding and packaging of individual and bulk products.

Here are the results of its work:

We are moving away from plastic, e.g. eliminating blister packaging in favour of kraft cardboard boxes.

For example, in accessories such as the RANGER and SCOUT compasses.

We simplify packaging for small accessories, such as the SURVIVAL BRACELET and the KEYRING.

The previously used cardboard wrapper and foil bag have been replaced with smaller cardboard wrappers.

When possible, we decide to pack products (e.g. baseball caps) to distributors in bulk, minimising the consumption of individual foil bags.

We are unifying the visual identity of the packaging – using only raw 300g kraft cardboard without finishing, with a single-colour black print. This helps us to avoid large printed surfaces.

We eliminate double protection of products consisting of more than one element, as in the case of the TRAVELER chairs.

At the end of 2022, the Branding Department began to work on creating our own Eco-Packaging Standard so that in the future we could fully transition to sustainable packaging throughout the entire value chain.

As part of this project:

• We test biodegradable and compostable foil bags instead of unit foil packaging made of conventional plastic;

• We analyze trademarks and certificates to be able to ultimately select suppliers of packaging elements that demonstrate the origin of raw material and their sustainability.

Waldemar Hajncel, Head of Branding Department:

– We notify our suppliers about the requirement set by Entire M to use recycled materials in the production of all cardboard packaging elements – hangtags, wrappers, cardboard boxes, etc.

We also care about ensuring that these materials can be recycled.

6.2 Materials and raw materials

[3-3 Sustainable raw materials and packaging] [301-1] We are a company that produces military, tactical, and shooting clothing and equipment. We have an influence on what kind and what quality of materials we use. We check the consumption of materials for clothing products, which account for 94% of total clothing sold. .

Materials used in the production of Helikon-Tex® and Direct Action® clothing by our foreign partners*

Packaging and its elements with the Helikon Tex® and Direct Action® logos produced in 2022

Total weight of textile materials: 491.82**

*calculations made for the main material in a clothing product on the basis of a basket of Helikon-Tex® and Direct Action® clothing products in 2022

**total weight of textile materials in clothing products sold in 2022

Materials used in our sewing factory in Nowa Ruda

Packaging imported with products from suppliers Entire M in 2022

Total weight of materials: 26.9*

*Data excludes thread, labels, tags

[3-3 Circular economy, waste]

Maintaining production and storage requires the consumption of resources. At Entire M, we are aware that the nature of our business has an impact on the environment and climate.

When preparing this report, also on the occasion of the 40th anniversary of the company’s operations, we wanted to define 2022 as the baseline year for measuring the impact of our products and production on the environment. And so, this impact includes water consumption, waste generation and greenhouse gas emissions.

[306-3]

Waste generated associated with Entire M’s activities in 2022.

Plastics

Paper/cardboard

5.545 tonnes

12.390 tonnes

Total: 17.94 tonnes

Data on waste generated associated with Entire M’s activities in 2022 is from the facilities at Sosnowa and Zachodnia streets in Błonie. They are reported in the Waste Database (BDO). Entire M also has a signed contract for the collection of waste from offices – the so-called municipal waste (52.8 thousand liters of mixed waste).

[306-4] Recycling at Entire M in 2022.

Non-hazardous waste, including:

Plastics

Paper/cardboard

17.94 tonnes

5.545 tonnes

12.39 tonnes

Waste considered hazardous -

Total: 17.94 tonnes

Entire M transfers all generated waste (plastics, cardboard/paper) in locations at ul. Sosnowa and Zachodnia streets in Błonie to a specialized recycling company. In the coming years, we will analyze the impact of our production in terms of the number of packaging placed in the market.

[303-3] Water used in 2022 in megalitres (ML)

At Entire M, we do not use water directly for manufacturing processes. We use water only in offices and refreshment rooms, such as toilets and kitchens. This water comes from the municipal supply system.

Water used at Entire M 2022

Surface water

water

Production water (obtained as a result of extraction, processing or use of any other raw material)

Water obtained from an indirect source (local water supply network)

Water consumption data comes from invoices from the water supply company.

6.3 Greenhouse gas emissions

[3-3 Climate change / impact]

For the first time, we have calculated the carbon footprint of our organization – these are the data for 2022 in scopes 1 and 2.

At the same time, this is our baseline year against which we will compare data in the coming years to see if we are reducing the greenhouse gas emissions for which we are responsible.

The emission was expressed in tonnes of carbon dioxide equivalent. It is a universal unit consisting of carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF6). Carbon dioxide equivalent (CO2e) takes into account carbon dioxide and other greenhouse gases as if their volume had the same impact on climate warming.

[305-1] Gross greenhouse gas emissions in tonnes equivalent CO2 (tCO2e)

In scope 1, the carbon footprint refers to emissions from the combustion of gas and pellets for heating buildings (combustion in stationary sources) and fuel in cars used by Entire M (combustion in mobile sources). Scope 1 also includes emissions from refrigerants (emissions of volatile substances). Data from the national KOBIZE database and DEFRA data were used for the calculations.

Within the scope 2 of the carbon footprint, emissions related to electricity consumption are reported, and KOBIZE data were used for calculations. The location-based method indicates emissions that are related to the amount of electricity consumed by Entire M, and the market-based method takes into account the structure of energy sources used in the energy market.

[305-2] Indirect greenhouse gas emissions (scope 2)

Gross indirect emissions (scope 2) calculated using the location-based method in tonnes of equivalent of CO2 (tCO2e)

In the coming years, we are planning to increase our GHG disclosures by scope 3.

This includes, among others, data related to goods transportation, which we have already partially collected for this year’s report. These include emissions related to the transportation of our products in B2B and B2C channels – a total of 329.713 tCO2e.

Type of energy:

2022 was adopted as the baseline year for calculations.

Emission source type:

Gross indirect emissions (scope 2) calculated using the market-based method in tonnes of CO2 equivalent (tCO2e):

Type

2022 was adopted as the baseline year for calculations.

2022 was adopted as the baseline year for calculations.

7. EMPLOYEES

7.1. Basic information

[3-3 Employees] The last years, especially 2022, were a period of intensive development of Entire M. We created new departments in the company and began to create processes thanks to which we can better manage our impact on employees.

In the following chapter, we describe our activities related to human resources, employee development, diversity and inclusion. We also describe the matters of occupational health and safety, which – as a production company – we pay considerable amount of attention to.

[2-7] In a production company, employees involved in creating the product range are the backbone of operations. Their work is not only a contribution to the development of the company, but also a guarantee of its sustainability and credibility. We value their work just as much as we value the efforts made by teams in all other departments.

The everyday life of all Entire M employees translates into the activities of the entire organization.

With these assumptions, it is not difficult to point out that employee matters have a direct impact on the results of Entire M. We also believe that all employees create the brand image and carry information about the company’s values with their behaviour, which is why we build the entire sense of existence of our business on our people.

See who we have managed to hire and who we are proud of:

Entire M employs 220* people, including:

• 136 – women

• 84 – men

These include employees hired for an indefinite period of time:

• 149 (90 women, 59 men)

Fixed term:

• 71 (46 women, 25 men)

Full-time employees:

• 201 (129 women, 72 men)

Part-time contract:

• 19 (7 women, 12 men)

* Results as at the end of 2022 as an average for the entire period

[2-8] In addition, in our daily work in 2022, we were supported by 13 people running their own businesses. These are mainly people providers of consulting services in IT, marketing and sales.

In addition, one person represents us in contacts with suppliers in Taiwan and supports our company with expertise and knowledge of the local market.

Work organization/Formal documents:

• Work Rules

• Remuneration Rules

• Rules of the Employee Benefit Fund

All blue-collar workers are required to read the “Work Rules” paper document before commencing work. Office administration workers can read the Work Rules in electronic form on the intranet platform. In a similar way, they can read the “Remuneration Rules at Entire M”, which is an public document.

We are a family business with Polish roots and global reach. Currently, during the dynamic growth of sales of the Helikon-Tex® and Direct Action® brands, we are trying to maintain the organizational culture and working atmosphere originating from a small family company, with all its advantages: ability to know each other, warm approach and mutual support. If the lack of a dress code is a value for someone, we also provide it

[401-1] Despite the rapid growth of the business, including the number of employees, our ambition is still to create a team of enthusiasts who turn their experience into high-quality products. The following numbers show the very expansion of employee capital at Entire M in 2022:

New hires – 76 (49 women, 27 men).

By age group:

• under 30 years of age – 26

• 30-50 years – 32

• over 50 years – 18

New hires in the organization in relation to all employees:

• women – 34%

• men – 34%

By age group:

• under 30 years of age – 50%

• 30-50 years – 22%

• over 50 years – 34%

Growth opportunities

Our team gives opportunities to all ambitious, committed employees. They are given options for systemic development based on training and workshops, also taking into account their expectations, including those reflected in the salary grid.

That is why the moments when someone decides to leave Entire M are not easy for us. At the same time, we believe that our doors will still remain open to them and we do not rule out re-hiring.

Total number of employees who left the organization in 2022: 35 (19 women, 16 men).

By age group:

• under 30 years of age – 11

• 30-50 years – 17

• over 50 years – 7

Employee turnover rate:

• women – 12%

• Men – 16%

Including:

• under 30 years of age – 21%

• 30-50 years – 12%

• over 50 years – 13%

7.2. Employee development and satisfaction

Until 2021, all employee matters were handled by the Payroll Department. Now that we have taken up the challenge of sustainable development, we are also changing this area.

In 2022, we started the strategic development of the team with the establishment of the Human Resources Department in the company structure.

And yes, the HR Department now consists of 4 people. The successes of this team in 2022 include the implementation of processes in the field of personnel policy:

• recruitment,

• onboarding,

• applications for external training,

• offboarding.

Joanna Ukleja, HR Manager:

– Each of the processes has been developed in a way that creates the best possible employee experience. We want the activities of the Human Resources Department to be perceived as supporting and facilitating the functioning of employees, and not as additional duties

Development plans for 2023 prepared by the HR Department include:

• training projects: development of managerial competences: upskilling, teamwork, coping with stress, use of office tools, i.e. Excel sheet, Gantt chart, time management,

• development of a competence model for the organization,

• further recruitment activities: focus on the quality of recruitment and selection of candidates for the organizational culture,

• development of health policy: support for pro-health activities, care for mental health, spine,

• employee satisfaction survey,

• digitalization of development processes,

• team-building.

[404-2] The specificity of work at Entire M is reflected in the division into:

• production employees,

• administrative/office and warehouse employees supporting production,

• managerial staff,

• director positions

In 2022, the management of the team of employees consisted of ongoing, uninterrupted work and recruitment.

At the same time, we provided communication training for production workstations (sewing factory – tailors). The aim of this training was to improve communication in the sewing factory team itself, as well as in relations with managers, and thus the impact on:

• ability to propose improvements in production processes;

• ability to signal stressful/conflict situations;

• a survey of satisfaction with the working conditions.

At Entire M, we have a program to develop managerial competencies that support teams so that their actions are in line with the company’s values.

As the organization develops, we are implementing the development talks process. Starting from 2023, it will be carried out by a manager with each member of their team. Its goal is to create a clear plan of action, thanks to which the employee will gain new experience and knowledge needed for further development at Entire M. Conducting these conversations will be a great opportunity to gather the demand for various company training.

We are already preparing to report training hours for employees. The HR Department has been collecting data on this topic since Q3 of 2022. We do this not only to be able to report it, but, above all, to better manage this area at Entire M.

Hybrid work

The ongoing change in the organization of work as a result of the pandemic (also visible in our country), which resulted in the later amendment to the Labour Code (in 2023 regarding remote work), caused that we reacted to these external conditions in this area as well. It is known that the new (hybrid) organization of work also requires a focus on soft skills and wellbeing of employees.

That is why we offered our managers:

• individual consultations on support in building lasting and good relationships with employees

• “Development Fridays” as an educational cycle for continuous development of management competences.

Joanna Ukleja, HR Manager:

– The initiative ‘Development Fridays for Managers’ is a cycle of weekly inspirations. It was very well received, and in addition to the knowledge provided by the trainers, the participants receive materials on team management.”.

7.3. Health, safety and wellbeing

[403-2] [403-3] Safety at Entire M is supervised on a full-time basis by our OHS specialist. Their duties include daily supervision, assessment of possible occupational risks, development of occupational safety instructions, correction of violations, keeping occupational health and safety documentation and preventing hazards in all other possible ways.

In all Entire M locations, we periodically conduct workplace reviews and audits to maximize safety and minimize the number of accidents at work. In addition to regulations, we have implemented our own internal terms, e.g. we have AEDs and hydrogel dressings.

We keep a register of accidents at work – after each accident report, the post-accident committee appointed by the Management Board investigates the circumstances and causes of the event. The analysis of each event allows these facts to be discussed during health and safety training to prevent similar events in the future. We also keep a record of near misses. The occupational risk assessment for individual positions is updated at least once every two years.

We care about occupational health and safety by:

• Mandatory initial OHS training before commencing work at a given position,

• Mandatory on-site periodic health and safety training. Here, we focus on practical aspects – fire protection (fire fighting) and first aid (use of AEDs). Practical exercises significantly increase the self-confidence of employees in crisis situations and make them feel safe at work – each employee knows the basics of first aid and is able to use fire extinguishing equipment,

• We practice dealing not only with fire, but with failures and other local emergencies.

All new employees are referred for pre-employment examinations.

We familiarize all new employees with the following instructions: OHS, first aid, fire protection, fire safety of the facility, occupational risk assessment, list of hazardous substances.

Instructions are publicly available at every company location. Any employee can consult a safety officer via the intranet or via the company’s telephone.

During health and safety training at Entire M:

• We discuss the circumstances and causes of accidents at work and occupational diseases;

• We learn how to prevent accidents and occupational diseases;

• We familiarize ourselves with selected health and safety and labour law regulations.

In 2022, a total of 12 periodic trainings were conducted. Each of them was documented in training logs. In total, training was provided to:

All training took place on-site.

In addition, we have trained 50 people in child and infant first aid.

We are a team, so wellbeing is important to us. We understand it as good physical and mental health and the absence of negative impulses from the environment.

Wellbeing as a management category aims to maintain or improve this area at work, so that:

• employees are resistant to stress;

• people are more motivated to work;

• the company can reduce the absence among employees;

• communication in the company is improved.

Wellbeing also means counteracting professional burnout.

• Initial training – 104 people,

• Periodic training (first aid and fire protection) – 53 people (7 administrative and office workers, 30 managers and 16 production workers),

• Evacuation drills in locations: Miękinia/Błonie, Sosnowa 6 and Nowa Ruda, Świdnicka 5.

The wellbeing and benefit programs at Entire M are shaped, on the one hand, by a desire to support employees’ ambitions for self-development, and, on the other hand, to reach out to those in need, whom we do not want to leave without help, or even more so exclude from the team. In the middle, there are social events, thanks to which we get to know each other better, maintain relationships, and build the spirit of community.

[401-2]

7.4. Diversity, equity and inclusiveness

One of our fundamental values is tolerance, alongside ethics and development. In terms of management, it is expressed through the management of diversity and human rights in business.

And so, in 2022, we made the following proposals to employees in this area:

• free English course for employees,

• 80% of co-funding for group insurance,

• 85% of co-funding for medical care (also for part-time employees),

• 50% of co-funding for the Multisport benefit card (also for part-time employees),

• financing employee development,

• discounts on equipment/clothing produced by the company,

• co-funding for postgraduate studies,

• benefits in difficult life situations,

• gifts for children on the occasion of holidays, co-funding for self-arranged holiday;

• Christmas bonuses,

• one-time childbirth allowance,

• occasional and Christmas events.

The above benefits can also be used by people with whom we cooperate based on B2B contracts.

Grażyna Adamek-Paździor, Payroll Manager:

– We listen to our employees, so we do not exchange funds from the Employee Benefit Fund for benefits in kind. Thanks to this, we can pay employees money from the Fund three times a year.

In addition, everyone is included in the bonus program, and the amount of the bonus, once a year, is decided by the team managers.

Puchaczówka tis an ecological event for employees and their relatives, which we organized in 2022. In a family atmosphere, we learned about the principles of wildlife conservation..

We organized survival workshops for children and the eco-campaign #notrashnotrace. At the same time, we supported the Puchaczówka Foundation that saves wild animals.

The circumstances and consequences of the war in Ukraine, in addition to financial support for this country, meant that we offered our employees a series of webinars on emotional coping with an emergency situation. Participants had access to materials to support coping with stress in families.

At Entire M, we comply with the Labour Code, the written and unwritten rules of which are directly supervised by the management, as well as the HR and Payroll Departments.

In the period of dynamic growth of the company, we see a clear need to develop an ethical business policy that is consistent with both the Labour Code and our values. Nevertheless, guided by the assumptions of sustainable development of the company, we pay special attention to human rights in the supply chain, which we described in more detail in Chapter 3 of this report.

[2-19]

[2-20] [2-21]

The remuneration policy was developed by the Payroll Department. The Entire M management, which supervises the policy and in a continuous manner consults with an independent partner – a labour law consulting and legal company, also took part in these works. When setting the level of salaries in the company, the Payroll Department compares salaries to the market median. On the basis of two independent payroll reports, we carried out internal mapping and prepared the salary increase matrix.

The remuneration policy also includes the Management Board. Members of the Management Board and management staff receive a fixed salary. Due to the fact that the members of the Management Board are minority shareholders of the company, we do not make remuneration dependent on the results achieved, we do not offer additional shares, share options, bonuses for joining the team, additional pension funds and benefits.

In the coming years, we are planning to carry out the process of evaluating positions and map them. For this reason, in this year’s report we do not provide the ratio of the total annual salary of the best-paid person in Entire M to the median annual total salary for all employees. Only after systematizing the structure of positions in the company will we be able to realistically manage this area of sustainable development. Without the previous steps, in our opinion, it would only be a statistical value that we have no influence on.

[405-2] Let the level of the wage gap between men and women employed at Entire M be an indication that our approach to equality is not just empty words. The basic salary of women in relation to the basic salary of men (grade level according to the organization’s structure) is as follows:

• management staff 99.17%,

• middle management 100.27%,

• officers 99.73%,

• other employees 100.10%.

[405-1] When recruiting, we do not create any biased criteria, that could decide about hiring someone for the job.

We are a family business, with the family of Entire M’s founder – his two sons who make up Entire M’s Management Board and one daughter who is a proxy – involved in running it. They are the ones who make up the top management team.

[2-30] Employees are not covered by collective bargaining agreements, and their representative bodies are elected employee representatives.

[401-3] In our daily work, we care about the atmosphere that prevails in our team. People on parental leave have access to Entire M’s internal social network at all times, and can also participate in team-building events. During their absence, we reorganize the work of the teams so that they can be easily onboarded after returning from the leave. We are pleased that all those who took parental leave in 2022 returned to work (return rate: 100%).

As this is our first ESG report and we are just starting to collect data to help us determine where we stand as a responsible employer, we cannot determine how many people have stayed with us for more than one year after returning from parental leave.

Number of people with parental (not maternal) leave in 2022:

• 3 – women

All eligible in 2022: 3 women and 11 men.

[406-1] As our team grew in 2022, there was a misunderstanding among our employees. It ended with the processing of a harassment report. The Anti-Mobbing Committee appointed to the case, consisting of representatives of three employees, ordered the implementation of corrective actions and closed the case stating that there were no signs of harassment.

However, this event gave us an impulse to create a program aimed at better and more efficient onboarding in the organization.

As part of this program:

• we monitor the quality of cooperation with line managers

• in case of any doubts, the HR Department undertakes conversations to clarify the situation.

We have also implemented an offboarding process. Before deciding to part with an employee, the manager is required to talk to the HR Department so that the organization can monitor the causes and prevent possible manager abuse. When the employee decides to leave, the HR Department talks to such a person about the reasons, paying special attention to the quality of cooperation between the line manager and the subordinate. Discussions with executives are then undertaken in case of any doubts.

8. SOCIAL ENGAGEMENT

As a company operating in Lower Silesia, we are involved in local initiatives. In 2022, we took part in the following actions:

• On the occasion of Women’s Day, we supported the Women’s Rights Centre Foundation (Fundacja Centrum Praw Kobiet), whose mission is to counteract all forms of violence and discrimination against women in private, public and professional life.

• We provided financial and material support to the Puchaczówka Foundation, which treats wild animals in Lower Silesia. As part of our cooperation, we transfer our products as well as financial resources for the statutory activities of the foundation.

• We were involved in the creation of a documentary on PTSD and TBI faced by veterans. In addition, in September 2022, we supported the organization of a scientific symposium on the problem of PTSD and TBI in Wrocław. It was organised by the “Sprzymierzeni z GROM” foundation. The website of the foundation also presents the film that was co-financed by us.

• We got involved in the “Gwiazdor” campaign. As part of it, children from orphanages write letters to Santa Claus, and employees taking part in the action make their dreams come true. In this way, we gifted 22 pupils of the orphanage in Golanka Dolna in Lower Silesia. Thanks to it, we were able to respond to the needs of specific people.

• We support Miękinia’s community like the “Odra Głoska” sports club and the Municipal Social Welfare Centre in the organization of Children’s Day, St. Nicholas’ Day, the “Safe Senior” campaign and the preparation of school starter kits.

[2-1] [2-2] [2-4] This is the first sustainability report of Entire M sp. z o.o., a company having its registered office at ul. Radomska 34 in Wrocław The company has its offices, warehouses and a sewing factory in Lower Silesia – Błonie/Miękina and in Wroclaw.

[2-3] The Sustainability Report covers the period from January 1 to December 31, 2022. The subsequent sustainability reports will be presented on an annual basis. If you have any questions regarding the report and sustainable development of the company, please the contact the ESG Project Manager Małgorzata Nowosielska (m.nowosielska@entirem.com).

[2-5] Entire M submits financial statements and the financial year coincides with the calendar year. The company is not subject to the provisions of the NFRD and CSRD Directives and Taxonomy. For the above reasons, the 2022 Sustainability Report has not been independently verified.

[3-1] In order to identify material topics for Entire M, a multi-step process was carried out. In accordance with GRI standards, its aim was to identify material topics reflecting Entire M’s key impacts on the environment. In order to ensure the completeness of the approach and perspective, the process was carried out using a variety of tools and stakeholder involvement.

Identification

1. Existing data analysis

As part of the first stage, the analysis of existing data (benchmark) was carried out, which included:

• sustainability strategies and sustainability reports of companies adopted as comparable to Entire M,

• requirements for key ESG ratings for the industry and SASB guidelines,

• United Nations Sustainable Development Goals (SDGs) relevant to the industry,

• other industry reports.

The aim of this stage was to specify key areas of impact, and ultimately the material topics identified by the industry. Based on the results of this stage, the first, preliminary list of important topics was developed and taken into account in further works.

2. Employee interviews

At this stage of the analysis, eight interviews were conducted with representatives of the most important areas for Entire M. During the interviews, employees assessed the impact of Entire M on sustainability as an organization, as well as the impact of products and the supply chain.

3. Stakeholder engagement

A stakeholder map was created during the process. For this purpose, the representatives of key areas at Entire M assessed the stakeholders identified as important for the company due to their impact on the organization and their commitment (communication with the organization).

Then the results were assessed by the President of Entire M and, after his acceptance, the final shape of the stakeholder map was prepared.

Key Entire M stakeholders:

1. Management Board

2. Current employees

3. B2B customers – distributors

4. B2C customers – retail customers

5. Institutional customers – the Direct Action® brand

6. Future customers

7. Suppliers of regular products of Helikon–Tex® and Direct Action®

8. Distributed brand suppliers

9. Suppliers of complementary products

10. Material and accessory suppliers

11. Packaging / product labelling suppliers

12. Brand ambassadors, influencers, bloggers Transport / logistics companies

In the next step, the representatives of the stakeholder groups identified as key, i.e. with the greatest impact on Entire M and the most involved in Entire M’s activities, were involved in the process of identifying material topics.

A questionnaire assessing the environmental impact of Entire M was addressed to representatives of key internal and external stakeholders. The survey contained a list of important topics taking into account the issues of sustainability. The survey was completed by 148 people, including Entire M’s employees. Stakeholders have identified the key areas of Entire M’s impact on the environment, both positive and negative.

Prioritisation

Based on the earlier stages of work, a list of material topics identified within each of them was created and then analyzed by the project team.

Based on the results of the analysis, a final list of material topics was created, indicating the key areas of Entire M’s impact on the environment and constituting the basis for building the structure and defining the scope of the content included in the report.

Validation

The final list of material topics was approved by the President of Entire M.

[3-2] List of material topics identified as part of the process:

Environmental Social Governance Other

• Climate change / impact

• Energy management

• Circular economy, waste

• Sustainable raw materials and packaging

• Chemical safety of products

• Employees

• Working conditions, human resources management

• Employee development

• Diversity and inclusion (incl. pay gap)

• Human rights

• Health and safety

• Responsible supply chain

• Environmental impact of suppliers

• Human rights

• Employment and remuneration conditions

• Business ethics

• Innovation and intellectual capital, including approach to design

10. GRI content index

Declaration: Entire M prepared the report in accordance with GRI Standards for the period from January 1, 2022 to December 31, 2022.

GRI 1 standard used Foundation 2021

Sector standard

There is no sector standard for clothing manufacturers. We use general GRI standards.