Environmental Social Governance Report
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.
Our brands
https://www.helikon-tex.com #JourneyToPerfection
https://directactiongear.com #GoLoud
[2-22] Dear Readers,
On behalf of the team responsible for preparing this report, I am very pleased to provide you with the second edition of the Sustainability Report of Entire M Sp. z o.o.
We are aware of the significant negative impact of the textile industry on the environment and we are obliged to make changes. Entire M strives to minimise negative environmental impacts in two main areas: our products and operations. We believe that offering circular, repairable, and durable products, manufactured in decent, fair, and safe conditions using renewable energy sources is the most effective way to meet the challenges faced by the textile industry, which will not only contribute to the reduction of CO2 emissions, but also effectively improve working conditions.
We strive to make Entire M a company in which not only the environmental aspect is important. The implementation of our strategy will not be possible without appropriate knowledge, competence, and excellence in operational activity. Therefore, in the coming years we have planned a number of development projects focused on these areas. The past year was a period when the company faced many challenges. High inflation, which persisted in the first half of 2023, greatly affected the level of our operating costs. In addition, high interest rates and the economic slowdown have a negative impact on the level of consumer spending. The geopolitical situation in our region has also not calmed down, which maintains high uncertainty as to the assessment of future periods.
In 2022, the increase in demand for our products was generated by the war in Ukraine, while in 2023 this factor did not have such an impact on the company’s results. Entire M generated PLN 199.3 million in revenues from the sale of goods and products, recording a 2.5% increase. We consistently implement our strategy consisting in the development of the product offer and the distribution network.
For this reason, we expect turnover to increase in the coming years and, despite the difficult macroeconomic and geopolitical situation, we look positively to the future. The company still does not sell products to Russia and Belarus.
Working on the next version of the report has expanded our knowledge in the field of sustainability. The second edition contains a presentation of data that we were not able to prepare in the previous year. We are determined to continue our efforts to become a more sustainable company, which will result in even richer and more detailed editions of future reports.
I would like to thank the entire team preparing this report, and I encourage readers to read it in detail. Should you have any questions, please contact our ESG Project Manager, Małgorzata Nowosielska (m.nowosielska@entirem.com).
Sincerely
Jędrzej Mieszczak President of the Management Board.
Our values
tolerancja etyka rozwój produktów p r a cownic ipracowników p r z e d s ię biorstwa izarządzanychmarek naszych produk t ó w uczciwośćwobec użytk o w n i k ó w uczciwośćwobecosób zktó r ymi ws p ó ł p r a c u jyme wolność słowa szacunek dla każdego człowieka pełneposzanowanie pry watnych i biznesowychopinii tolerance ethics development o f products o f employees fo t h e c o mp any andmanagedbrands hespect honestytowards users of ou r p r o stcud honestytowardsthose we w o r k w i t h freedom of speech respect for every individual fullrespectfor private and businessopinions
We are a family business. We produce clothing, as well as military, tactical, and shooting equipment. Our products support the work of the services and are used by enthusiasts of tactical and survival outdoor. Our success is based on the safety, functionality, and durability of our clothing and equipment.
We have created two globally renowned own brands – Helikon-Tex® and Direct Action®. Our sales network is also engaged in the distribution of highly recognised global brands operating in the tactical and work equipment segment: Morakniv®, Wildo®, Hultafors®, ALTA® Atwood Rope®.
Entire M is a family business and its history has been associated with the business activities of Grzegorz Mieszczak since its beginning in 1983 It was then that a small haberdashery studio was established to produce commemorative stamps, plaques and devotional items.
The beginnings are modest, but they indicate the values of the company’s creator – after Lech Wałęsa received the Nobel Peace Prize in 1983, Grzegorz Mieszczak, in cooperation with the company Metaloplastyka, manufactured about 100,000 commemorative signs attached to the ‘Solidarity’ logo.
In the late 1980s, Grzegorz Mieszczak goes to Sweden, where he meets the local knife brand Frosts (currently Morakniv®), and after the fall of communism, in 1991 he becomes the sole distributor of Morakniv® in Poland. This cooperation has lasted for 33 years and to this day we remain strongly associated with this legendary knife manufacturer. We are proud of this partnership because it reflects what is important to us – lasting, solid relationships and thoughtful, forward-looking decisions.
In 1998, the company is moved to Miękinia near Wrocław which allows for the development of its business and the start of import of surplus products, which then go to sales networks throughout the country. The business is developing at a surprising pace, which allows for the start of own production of uniforms in Asia three years later This step affects the entire future of the company, which is starting to build awareness in the military and tactical industry and look for opportunities for further development in this direction.
The turn of the first and second decade of the 21st century is a series of milestones: in 2007, a new warehouse and office are established in Miękinia, in 2009, Helikon-Tex® products make their debut at the largest trade fair in Europe, and in 2010, Grzegorz Mieszczak and his son
Jędrzej appear for the first time at the SHOT Show in the USA, where they will present Helikon-Tex® and Direct Action® equipment in the future. Soon after, the warehouse is expanded, and Grzegorz’s second son, Piotr, joins the team. Thus, the family nature of the company is established.
Another breakthrough is the opening of the own production plant in Nowa Ruda in 2013 It is thanks to it that the company gains full control over the production process and its quality, which allows for the creation of Direct Action® – a brand targeted to the most demanding professionals. The end of the second decade of the 21st century is the expansion of existing warehouses, investment in a new office in Wrocław and the commencement of the construction of the new headquarters and logistics centre in Miękina.
In 2019, the Helikon-Tex® brand presents its products for the first time at the largest trade fair in the world – SHOT Show in the United States. The company employs more than 100 people, but this does not prevent us from maintaining appropriate relations within its ranks.
In 2021, the company adopts its today’s name – Entire M which facilitates our development and more effective management of our own and distributed brands. ‘Entire’ means ‘complete’ and refers to the broad, holistic profile of the company’s operations. ‘M’ refers to the military industry from which the company originates, as well as the first letter of Grzegorz Mieszczak’s surname.
Today, we employ more than 300 people and we do not slow down in our journey, consistently sticking to the values chosen at the very beginning.
From the very beginning, the founder of our company was guided by the values that are still current in life and business –development, ethics and tolerance. They form the foundation on which we have built today’s Entire M – operating successfully in a demanding global market, gaining recognition of the most demanding customers and enjoying respectful, long-term relationships with our suppliers.
https://www.helikon-tex.com/pl_pln/ #JourneyToPerfection
We are a modern brand aimed at outdoor activity enthusiasts. In the Helikon-Tex® portfolio, we combine solutions known from the military world with original projects for shooters, bushcraft lovers (enthusiasts of survival in the natural environment using the conditions and resources of the environment), outdoor enthusiasts, and people looking for tactical amenities in urban clothing. The offer of Helikon-Tex® includes clothes and accessories, including bags, backpacks, and covers, as well as special equipment. Everything is designed for experienced and demanding users.
Our motto:
#JourneyToPerfection
Being better and better is a journey – we focus on the production of ever increasing products, enabling our customers to strive for development, but we also grow in every area, including sustainable and ecological production.
https://directactiongear.com #GoLoud
This is top of the range tactical equipment used by special forces operators. We offer highly specialised equipment, used by elite police and military units. This is made possible thanks to our own sewing plants, which have been developed in Poland for years. It gives our designers direct insight into every stage of equipment production.
Our motto:
#GoLoud
Our customers’ lives depend on the effectiveness of their actions. That is why we do not accept compromises in design and production processes.
Morakniv® is one of the longest-established Swedish knife manufacturers. Its offer includes not only tools for working with wood, but also for the kitchen and fishing, as well as tactical knives and a wide range of accessories.
We have been working together for 33 years.
Wildo® is a Swedish manufacturer of camping equipment that has existed for over 40 years. Its main goal is to provide tourists with reliable and extremely durable equipment that will work even in the strictest conditions. We have been working together for 16 years
Hultafors® has been manufacturing axes and accessories for over 130 years, allowing for precise, effective, and safe work with wood.
We have been working together for 5 years.
Atwood Rope MFG® – is an American manufacturer of working ropes and cables, operating since 1985. Using advanced machining techniques and modern materials, the company manufactures equipment for military and civilian use.
We have been working together for 6 years.
ALTA® is 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. We have been working together for 9 years.
Our strategy is the result of our history, values, high ambitions, and the ever-changing environment.
We expect further development in the areas of production, design and distribution. We have significantly expanded our sewing plants, opening new plants in Nysa and Świebodzice in 2023. As a result, employment in our own production has almost doubled. This gives us, among others, full control over the design, production, and quality control processes of our Direct Action® brand, aimed at the most demanding recipients.
In the coming years, we want to develop recognition on the domestic market, expand and modernise the product offer and reach new customers.
Our business model is different from the fast or even ultra fast fashion models that are most popular in the industry, thanks to which we can develop our company with care for the principles of sustainable development – both environmental and social.
of repairs and modifications
long-term, honest and respectful relationships with suppliers because we believe that this way of doing business is also possible in the clothing industry high quality of products the safety of our customers often depends on it
compatibility with other products enabling customers to use existing equipment (also from other companies) and not requiring additional purchases
1 Specific
Why this is important
The clothing industry is one of the most environmentally damaging due to high water consumption, greenhouse gas emissions, and the huge amount of waste generated by rapidly rotating low-quality products. Some social practices are also embarrassing for the industry – clothing production in developing countries does not always take place with respect for human rights, safe working conditions, and fair relations with suppliers (including payment practices). We do not accept this. Since we have been creating clothing and equipment for years, we know that you can build a business model in a completely different way – so that it is ultimately more friendly to both nature and people involved in the value chain.
Preparing a high quality product that meets the requirements of customers who are professionals and enthusiasts in their industries is a multi-stage process.
Whether the idea for the project is born in the mind of our designer or is created in response to the special needs of one of our customers, the process of its preparation is similar. The design takes into account specific demands and potential weaknesses during field use and daily care. We then create a series of prototypes, both in the case of clothing and equipment, which we subject to rigorous tests in field conditions. These are attended by members of our project team, and sometimes also external experts. At the same time, we test fabrics and components in order to examine, for example, resistance to friction or colour fastness, as well as determine ways of optimal maintenance and test compliance with environmental regulations and standards
Some of our clothing and equipment is made in our own sewing plants in Poland – in the case of Direct Action® products, this allows us to fully control production and better respond to the needs of the particularly demanding customers of this brand. Other products are made by our reliable contractors abroad, mainly in Asia (including Taiwan, Vietnam, China, Pakistan, Myanmar). Our branch in Taiwan has been operating since 2019, supporting us in building relationships with our contractors and cooperating with them in quality management.
All products (own and distributed), regardless of the place of manufacture, pass through our logistics centre in Błonie near Wrocław. From there, they go to the distribution channels we manage.
We sell our products to various groups of customers. Institutional and professional customers order deliveries directly from us. Retail customers can buy them in our online store or from one of over 900 distributors operating on all continents (except Antarctica). In the B2B channel, each distributor, contractor, and institutional customer can count on the advice and assistance of account managers in all operational matters. In addition, a distributor belonging to a geographically defined market has an assigned market supervisor with whom they can discuss strategic issues. 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 products and orders on an ongoing basis. Our retail customers can also reach us via social media, e-mail, and telephone.
As a global company, we need a team of people who are not directly operational but are key to the success and smooth running of the entire company. The finance, people management, IT, quality control, infrastructure and real estate, fleet, and sustainability specialists working there support the operational departments in their daily duties.
GRI [2-9] [2-12][2-13][2-14][2-17][2-22] Entire M is managed by a two-person Management Board composed of:
• Jędrzej Mieszczak - President of the Management Board
• Piotr Mieszczak - Vice-President of the Management Board
Both managers are members of the owner’s family, they are its second generation. They are also shareholders of the company. The third shareholder is Grzegorz Mieszczak, the founder of the company.
The Management Board’s tasks include the implementation of the Entire M’s strategy, including in the field of sustainable development. At weekly meetings, the Management Board monitors the progress of projects related to the environment, society, and quality of corporate governance.
We have also established a Steering Committee to oversee the implementation of our strategy. 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.
In order to effectively implement the strategy, we created a network of projects that develop the organisation, at the same time expanding the organisational structure with the position of a project manager, which gave it the form of a matrix.
The President of the Management Board is responsible for managing the area of sustainable development. Coordination of work between departments responsible for individual areas affecting our non-financial results is handled by the ESG Project Manager, who reports directly to the Management Board. Being aware of the complexity of the issue of sustainable development, members of the Management Board, with the support of the Project Manager and external advisers, as well as participating in conferences related to the ESG area, constantly acquire and update their knowledge in this area.
• President of the Management Board
• Vice-President of the Management Board
• Product Director
• Marketing Director
• Sales Director
• IT Director
• Change Manager
Figure 3 Composition of the Steering Committee for the Implementation of the Strategy
3.1 3.1. Principles of preparing the report
GRI [2-1] [2-2][2-3][2-4][2-5] This is another sustainability report of Entire M Sp. z o. o.
Our head office is located at ul. Sosnowa 6 in Błonie, Miękinia municipality near Wrocław, Poland (the registration address is ul. Radomska 34 in Wrocław).
We prepared the report in accordance with the GRI (Global Reporting Initiative) Standards and covered the period from January 1 to December 31, 2023. The subject of reporting is Entire M’s business, but we also address some issues related to other entities in the value chain. The scope of the entity and the reporting period are the same as in the case of our financial statements. We prepare reports on an annual basis, and the previous one covered the year 2022.
We are currently not subject to mandatory sustainability reporting and provide data and information on this subject on a voluntary basis. The report reflects the knowledge, information, and data that the Entire M’s Management Board had at the date of publication of the report, but it has not been independently verified. We expect to be subject to mandatory sustainability reporting under the CSRD from 2025 (reporting in 2026). There were no significant transformations in the data, and if other methods of calculating the indicators were used, this was indicated in the content of the report.
If you have any questions regarding the reporting and sustainability activities of Entire M, please contact Małgorzata Nowosielska, ESG Project Manager (m.nowosielska@entirem.com).
GRI [2-14] [2-29] [3-1] [3-2] [3-3] In order to properly define the thematic scope of the sustainability issues that we manage and report on, as well as to make sure that they relate to issues that are really important to our stakeholders, we have carried out a multi-stage process.
Determining the context for sustainability reporting
We have looked at our business and analysed how our industry, our competitors, suppliers and intermediaries, distributors, customers, and end users of our products work. We noted that our business model differed from a typical business model in the clothing industry, which results from the specificity of our target market and the way we operate. Our business model and activities generate fewer burdens and risks for society and the environment than a typical clothing industry enterprise, but we are aware of the challenges faced by us and the entire sector. We described the detailed characteristics of our operating model and the differences in relation to the rest of the industry in Chapter 2.
Stakeholder identification
We have identified individuals and groups of people who are our stakeholders, i.e. those whose interests we influence or have the potential to influence, as defined in GRI 1: Foundation 2021 standard. In comparison to the previous period, we have modified the list of our key stakeholders by generalising some categories and covering the value chain in a more complete way. Our key stakeholders are:
Tworzenie
Determining the context for sustainability reporting
Owners
Określenie kontekstu dla raportowania zrównoważonego rozwoju
Tworzenie
Stakeholder identification
Customers
Identyfikacja interesariuszy
Stakeholder engagement according to the AA1000 standard
Determining the initial list of impacts, opportunities, and risks associated with sustainable development
Prioritisation and preparation of the final list of material topics
Suppliers
Employees of our suppliers
Local communities
Future generations
Gathering contextual data and information
Preparation of the content of the report
Approval of the report by the Management Board
Shareholders of the company, who at the same time have a significant impact on its current operations and plans in the medium and long term. It is in the interest of the owners to build the long-term value of Entire M as well as ensure business stability and (resilience).
Zaangażowanie interesariuszy zgodnie ze standardem
AA1000
Określenie wstępnej listy wpływów, szans i ryzyk związanych ze zrównoważonym rozwojem
Priorytetyzacja sporządzenie ostatecznej listy tematów materialnych
Zebranie danych i informacji kontekstowych
Opracowanie treści raportu
Persons employed by Entire M (regardless of the nature of employment) and, in some cases, also former or future employees. They have an interest in working conditions that provide security, opportunities to grow and achieve job satisfaction, as well as stability and long-term success of Entire M.
Zatwierdzenie raportu przez Zarząd
People and institutions purchasing or using our products. It is in their interest for us to ensure the high quality and durability of products, their safety, as well as usability and functionality. They also care about our business efficiency (which translates into product costs), compliance with generally applicable standards in the field of sustainable development, as well as the long-term stability, reputation, and credibility of our business. Within this group, we distinguish:
• Individual customers (natural persons) and users of our products (or products we distribute)
• Professional clients, especially institutions that are part of the administration or state authorities
• Distributors and retailers of our products
Enterprises providing us with products and semi-finished products, services (including transport) and capital goods. It is in their interest for us to ensure fair and mutually beneficial, as long as possible, business relationships. A special category within this group are manufacturers of clothing (sewing plants) and equipment located outside Poland.
Persons employed (regardless of the nature of employment) by entities that are our suppliers. It is in their interest for our relationships with suppliers and our purchasing practices to enable them to provide work in appropriate conditions, which includes both issues of fair remuneration, working time, and respect for human rights. Due to the specificity of the clothing industry and the practices of other companies, we attach great importance to this group of stakeholders.
People and their representative organisations and institutions (including, for example, local governments) living near our headquarters and plants. It is in their interest for us to conduct business in accordance with applicable law, in respect for the environment, and in a manner that does not cause inconvenience.
It is the so-called silent stakeholder who does not have the opportunity to express their opinion, but is important to us. It is in the interest of future generations that we conduct our business and develop in such a way as not to prevent them from meeting their needs and developing in the future.
Stakeholder engagement
When engaging stakeholders, we used the AA1000 Stakeholder Engagement Standard 2015 developed by AccountAbility on the basis of which we determined the purpose, recipients, and scope of this activity.
Purpose of engagement: To understand the opinions, interests, and concerns of our stakeholders in order to better manage and report on our activities.
Stakeholder Manner of involvement (according to AA1000 classification) Description
Owners Empowering
Employees of Entire M Consulting
Customers Consulting
Suppliers Consulting
Employees of our suppliers Monitoring
Local communities Monitoring
Future generations Monitoring
Table 2 Stakeholder engagement methods
Stakeholders have a direct impact on the functioning of Entire M.
We surveyed our employees asking them about issues of sustainable development, our activities in this area, and their declared and observed attitudes. In addition, we asked the management to indicate the topics of sustainable development they considered to be priority in the short and long term.
The business advisor we invited to cooperate with us conducted interviews with selected customers as an independent third party. In addition, other customers were surveyed
The business advisor we invited to cooperate with us conducted interviews with selected suppliers – companies based in Vietnam and South Korea – as an independent third party.
The relationship between our suppliers and their employees is an issue that we pay special attention to during contract negotiations. Our relationships with suppliers are long-standing (this is not an industry standard) and based on mutual respect and trust. At present, we do not have the practical opportunity to directly involve this group of stakeholders. We are working on launching procedures that would enable anonymous reporting of possible irregularities.
We analyse communication from this group of stakeholders and local media. This analysis shows that there is no need for more active forms of engagement at present, although our approach may change in the future.
We consider the regulations and policies of international and supranational organisations as an expression of the voice of future generations, in particular: the Paris Agreement and the European Union’s policies on fresh air, clean water, healthy soil and biodiversity, and circular economy.
Determining the initial list of impacts, opportunities, and risks associated with sustainable development
Based on the results of stakeholder engagement, analysis of the activities of our customers, competitors, and suppliers, as well as trends in the business environment (including regulatory), we have prepared a preliminary list of categories of our impact on the economic, social, and natural environment and the opportunities and risks associated with this impact.
Prioritisation and preparation of the final list of material topics
We have expertly assessed the initial list, taking into account their scope, scale, probability (in the case of potential impact as well as chances and risks) and irreversibility. Adopting the principle of double materiality adopted in the CSRD, we also analysed the impact of individual issues on our business – especially in the context of the impact on our financial results (revenues, costs, and cash flows), the value of assets, and the cost and access to capital. We have treated the double materiality in an auxiliary way and this year we have not yet sought to ensure full compliance with the CSRD requirements in this respect – they will not cover us until 2025 (in the report published in 2026).
Gathering contextual data and information
We have internally gathered the data and information necessary to report our activities to users. We verified the formal and logical correctness of the data, although we did not subject them to independent review.
Preparation of the content of the report
We have prepared the content of the report in such a way that it presents our business as fully and reliably as possible and takes into account the business context specific to our industry and business segment. We created the report with its users, i.e. our stakeholders, in mind.
Approval of the report by the Management Board
The report was adopted by the Management Board on May 20, 2024 and published on our website.
As a result of the process presented above, we have concluded that the following topics are material in the context of sustainable development and our impact on the economy, society, and the environment. The individual material topics are described in the relevant chapters of the report.
Environmental area
In this report, we have applied a much more detailed analysis of material issues, which reflects the increase in our experience in sustainable development management. In some cases, we have also changed the name of the topic to better adapt to the nomenclature adopted in the ESRS reporting under the CSRD. We present the changes compared to the previous report below.
• Climate change / impact
• Circular economy, waste
• Sustainable raw materials and packaging
• Employees
• Working conditions, human resources management
• Employee development
• Health and safety
• Diversity and inclusion
• Human rights
• Employment and remuneration conditions
• Responsible supply chain
• Environmental impact of suppliers
Change
Details of the topic
Details of the topic
Material
• Adaptation to climate change
• Climate change mitigation
• Resource use – our materials and semi-finished products
• Resource use – our products
• Waste
Renaming and combining topics, without reducing the scope of reporting
• Working conditions of our employees
Renaming
Renaming and combining topics, without reducing the scope of reporting
Combining topics, without reducing the scope of reporting
• Equal treatment and equal opportunities
• Responsible supply chain
New topics
• Responsible supply chain
• Water consumption
• Personal safety of users of our products
• Social inclusion of end-users
• Rules for reporting violations and whistleblower protection
• Supplier relationship management
• Prevention of corruption, fraud and, other abuse
• Animal welfare
The textile and clothing industry has a significant impact on the environment and is one of the most burdensome industries in the world. It is not possible for us as humanity to give up clothing, but we are able to produce and use it in a more sustainable way.
Manufacture of fabrics from natural fibres
Manufacture of fabrics from artificial fibres
Water consumption, land use, pesticides and fertilisers. Consumption of chemical raw materials (e.g. dyes)
Greenhouse gas emissions, deforestation, eutrophication, water pollution, microfibre pollution
Consumption of energy and natural resources (including natural gas) and chemical (dyes, coatings, etc.)
Greenhouse gas emissions, air and water pollution (including toxic substances), microplastic pollution
We design and manufacture durable, functional, and timeless products. This allows them to be used for a long time, because they do not age physically or emotionally. And in the event of minor damage, they can be easily repaired or modified. This helps to increase the efficiency of the resources used in their production and reduce the environmental footprint in the life cycle. We carefully choose material suppliers.
Distribution and sales Energy consumption
Greenhouse gas emissions, microfibre and microplastic pollution, waste in the production process
We use renewable energy sources and increase our energy efficiency. We care about production efficiency and minimising production waste.
Product use
Greenhouse gas emissions, microfibre and microplastic pollution, waste in the production process
Consumption of water, energy, and chemical raw materials (detergents)
Possibility of recovering textiles
Gathering, sorting, and processing (recycling)
Consumption of water, energy, and chemical raw materials.
Possibility of recovering fibres
Greenhouse gas emissions, microfibre and microplastic pollution, textile waste
We optimise packaging, allowing it to be reprocessed and increasing the share of secondary raw materials.
Our products are not sold in the form of periodic collections, so they do not expire and there is no need to dispose of them.
Greenhouse gas emissions, water and air pollution (also with toxic substances), textile waste
The longevity of our products and the possibility of their repair or modification reduce the burden of textile waste on the environment.
We have started the process of introducing materials that retain all technical characteristics (e.g. breathability and water resistance), and do not use substances that are harmful to the environment.
Table 6 Environmental impact throughout the textile value chain and life cycle. Developed on the basis of: Textiles and the Environment. The role of design in Europe's circular economy. European Environment Agency ETC/CE 2022/2.
Opportunities and risks related to climate change
Progressive global warming has far-reaching effects on all enterprises. We have analysed them and highlighted them as particularly relevant in the context of our business.
When managing the area of climate change, we focus on two key issues. Firstly, we optimise our energy consumption and increase energy efficiency – this is where our direct emissions come from. Secondly, we proceeded to a detailed analysis of our carbon footprint in the case of indirect emissions. As in almost every company in our industry, indirect emissions constitute the vast majority.
Increasing frequency of violent weather phenomena disrupting transport, supply of raw materials or production activities.
• Part of our production is carried out in Poland, which is exposed to physical risks to a relatively lesser extent than locations in other regions.
• Changes place higher demands on our supply chain management team
• Disruptions in global supply chains can cause the phenomenon of nearshoring – moving activities to locations closer to the recipients. Thanks to our production capacity in Poland, we are ready for such changes.
Long-term changes in climate and weather patterns
• Our products are not sold as part of collections, therefore they are not subject to the seasonality that is typical for the clothing industry.
The need to increase energy efficiency and gain access to renewable energy sources
• We electrify our company (e.g. by replacing gas heating with heat pumps) and source energy from RES installed on the buildings we use.
Technological changes in the industry
• We are planning to start a project to test the possibility of replacing some fabrics with low-emission equivalents (this applies especially to cotton and polyester) in 2024.
The climate crisis is the biggest challenge facing humanity today. In the 2015 Paris Agreement, all countries of the world committed to efforts to stop global warming at 2o C compared to the pre-industrial era with an ambition of 1.5oC Exceeding these values may result in irreversible changes in the climate and the planet’s systems that depend on it.
The climate goals include both mitigation of climate change – i.e. reducing greenhouse gas emissions, as well as adaptation to changes –so as to minimise the damage caused by the phenomena caused by changes.
We have calculated the amount of greenhouse gas emissions for 2023, taking into account scope 1 and 2 emissions, and for the first time included scopes 3 emissions in our calculations. This allows for a fuller understanding of the impact of our organisation on the environment and climate change.
The carbon footprint data was prepared in accordance with the international standard Greenhouse Gas (GHG) Protocol, which is a globally recognised, voluntary standard for accounting and reporting greenhouse gas emissions.
The emission was expressed in tonnes of carbon dioxide equivalent (CO2e). It is a unit that brings all reported greenhouse gases to comparability, because they have different effects on the greenhouse effect. The report includes all six categories of the most important greenhouse gases covered by the GHG Protocol: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF6).
The data includes all of the company’s production plants and its headquarters, but omits the activities of the subsidiary in Taiwan, whose emissions are insignificant due to their scale.
When calculating emissions, we used indicators from:
• Greenhouse gas reporting: conversion factors 2019. DEFRA, BEIS - these are British databases containing greenhouse gas conversion factors, covering various aspects of the organisation’s activities, such as energy consumption, transport, waste, and other specific activities that affect emissions.
• National Centre for Emissions Research and Management (KOBiZE) - a Polish institution responsible for emission management, dealing, among others, with the maintenance of emission databases and their annual inventories.
• Environmental Protection Agency - an American institution offering access to data facilitating the calculation of emissions in the three carbon footprint scopes.
• EXIOBASE - a global, detailed, multi-regional, environmentally expanded database helpful in the application of the expenditure emissivity method.
• A Carbon Footprint for UK Clothing and Opportunities for Savings - the document analyses the carbon footprint of the UK clothing industry, identifying the main sources of CO2 emissions and proposing ways to reduce them.
• Toyoshima’s -Toyoshima’s base is an initiative of Toyoshima & Co., Ltd. aimed at reducing greenhouse gas emissions from the company’s activities, using electricity from renewable sources.
• Circular Ecology - offers various types of greenhouse gas emission indicators that are useful in assessing the company’s impact on the environment.
• Tauron - a Polish company providing electricity in Poland, which is the energy supplier for Entire M.
GRI [305-1]
Scope 1 of greenhouse gas emissions include all emissions from assets (equipment) under our control. These are internal combustion vehicles, heating devices (burning coal, natural gas and biomass in the form of pellets) and air conditioners (from which the R410 refrigerant escapes).
Scope 1 emissions in 2023 amounted to 112 tCO2e compared to 146 tCO2e. A decrease of 34 tCO2e, i.e. by approx. 23%, results from the investment supporting the decarbonisation of our company – the installation of heat pumps reducing the demand for heating using fossil fuels at our headquarters in Błonie.
GRI [305-2] Within the scope 2 of the carbon footprint, emissions related to the consumption of energy purchased outside are reported. This scope differs from scope 1 in that the emissions resulting from the purchased energy are generated not in the assets (devices) of the reporting company, but at the energy supplier (e.g. an energy company).
We have an impact on our emissions in scope 2 in two ways: firstly, we can choose suppliers that use renewable energy, and secondly, we can increase our energy efficiency. Scope 2 emissions include emissions resulting from the production of electricity purchased by us. We do not buy heat, process steam, or cold from external suppliers, but if we did, the emissions attributed to them would also be in scope 2.
Scope 2 emissions are calculated using two methods:
• Market-based – taking into account the actual energy sources used, especially energy from renewable sources whose origin can be proven (for example, by a purchase agreement, a guarantee of origin)
• Localisation-based – taking into account the average emissivity of the power grid for a given area of the country, based on the indicators provided (in the case of Poland) by KOBiZE.
The difference between the two methods shows the emissivity of a given company in relation to the average for the areas in which it operates.
Scope 2 emissions in the market-based method in 2023 amounted to 160 tCO2e compared to 82 tCO2e in 2022 (increase by 95%).
The main reasons for the increase are the opening of new plants (in Nysa and Świebodzice) and the installation of heat pumps, which replaced emissions from fossil fuels (gas heating).
Scope 2 emissions in the localisation-based method in 2023 amounted to 256 tCO2e compared to 85 tCO2e in 2022 (increase by 201%). The reasons for the increase are the same as in the case of the marketbased method, but their scale indicates that our energy mix is much more favourable than the average for Poland. The difference between market and localisation methods was 96 tCO2e in 2023; in the previous year, it was only 3 tCO2e. This is due to the fact that we use renewable energy sources to a much greater extent than the average of the entire Polish economy.
Location-Based Method (average emission of the Polish system)
Market-Based Method (emission of our actual energy sources)
Figure 7 Comparison of scope 2 emissions in 2023 by methods [tCO2e)
Scope 2 emissions calculated using the market-based method are 38% lower than those calculated using the localisation-based method.
This is how much less carbon-intensive we are compared to the National Power System average.
GRI [305-3] Scope 3 emissions include all emissions related to our activities (up and down the value chain) that take place outside our plants but result from our activities. These are our so-called indirect emissions, but we have a certain (sometimes limited) impact on their amount – e.g. we can choose suppliers with lower emission or modify our products to use materials with lower emission.
We estimated them for the first time using indirect methods (using publicly available and averaged indicators, so-called benchmarks). Therefore, we are not able to publish comparable data for the previous year. In the future, we will work on refining our calculations.
The individual categories of scope 3 that we have included are:
Category 4: Transport at the top of the value chain, i.e. emissions related to the delivery of, among others, materials, raw materials, and capital goods to us. Emissions from transport amounted to approx. 727 tCO2e. More than 46% of them are emissions from maritime transport, and 31% are emissions from road transport. The remaining 22% is related to rail and air transport.
Category 5 Waste that results from our activities. Emissions involve their processing or storage. Emissions in this category amounted to approximately 811 tCO2e
Category 6 Our employees’ business trips. We estimated the emissions associated with them at 96 tCO2e.
Category 12: Disposal of products at the end of their life. This important category includes activities related to the processing, disposal, and possible storage of our products when they lose their usefulness for customers. The emission value associated with these activities amounted to approximately 12981 tCO2e
Category 13: Leased assets at the bottom of the value chain. This category does not apply to us.
Category 14 Franchises. This category does not apply to us.
Category 15 Investments (mainly equity). In our case, the category does not apply.
Category 1 Purchased goods and services covering the carbon footprint of all our purchases, both consumables (e.g. office supplies), and materials and raw materials (textiles).
Emissions in this category amounted to 12213 tCO2e of which over 95% comes from the production of textiles purchased by us. Emissions resulting from the production of polyester, cotton, and nylon we use have the largest share in them. Replacing these materials with completely zero-emission materials is a very big challenge for the entire industry. We have already taken appropriate measures – among others, we are preparing for the tests of low-emission textiles.
Category 2: Purchased capital goods, i.e. all machines, equipment and real estate that are not a cost component in accordance with accounting regulations. Emissions in this category amounted to approximately 35 tCO2e.
Category 3 Emissions related to the production of fuels, not included in scopes 1 and 2, i.e. the so-called Well-To-Tank emissions. These are greenhouse gases emitted on the occasion of, for example, mining, transport, etc. of fossil fuels. In our case, they amounted to approximately 24 tCO2e.
Category 7: Employees’ commuting to work. The vast majority of our employees travel to the workplace by car, which results, among others, from the location of our plants. We estimated the emissions associated with commuting at approximately 118 tCO2e
Category 8: Leased assets at the top of the value chain. This category does not exist in our case, and the energy consumption associated with rented buildings has already been included in the scope 2 calculation.
Category 9: Transport down the value chain, i.e. the delivery of our products to our customers and distributors. They amounted to approx. 433 tCO2e
Category 10 Further processing of products. Since we manufacture end products that go unchanged to end users, this category does not apply to us.
Kategoria 11 Product use. We have included the carbon footprint of the standard use of our clothing and accessories by end customers (e.g. resulting from washing and cleaning). It amounted to approximately 82 tCO2e.
Other (outside of the above categories): The operation of our online stores is also associated with emissions (the so-called digital carbon footprint). We estimated them at approximately 3 tCO2e
Our total greenhouse gas emissions in 2023 amounted to approx. 27797 tCO2e (using the market-based method in scope 2).
The vast majority of our emissions are indirect emissions in the value chain, resulting primarily from the processing of our products at the end of their life and from the production of textiles and materials we use. Scope 3 constitutes a total of over 99% of our total carbon footprint, which results from the nature of our business and is consistent with the indicators observed for other companies in the industry.
Well-calculated emissions give an indication of where to act to reduce the company’s carbon footprint. In our case, it can be seen that the main efforts must be made to find low- and zero-emission textiles to be used in our products, and to maintain the quality and durability of our clothing and accessories. Emissions related to their disposal constitute the largest part of our carbon footprint, but due to the long life of our products, which goes far beyond the standard for the clothing industry, this burden is slightly alleviated. Our scope 1 and 2 emissions, i.e. resulting from our direct energy efficiency, are also the subject of our activities. They are much lower than indirect emissions, but we have a tangible impact on them and we will continue our activities in this area.
Table 9 Summary of scope 1-3 emissions in 2023 and 2022.
Emission intensity
By referring our emissivity to quantities illustrating the scale of our enterprise, we will be able to show in the future to what extent our growth is connected to emission changes. We do not have comparable data, so in this issue of the report we provide figures only for 2023.
9 Selected emission factors for 2023
Energy-related risks and opportunities
Our company is not one of the most energy-intensive, but due to the importance of this topic in the context of decarbonisation of both our company and the entire economy, we put particular emphasis on this matter. We have identified the following issues that may affect us in the future.
Phenomenon/factor Our approach
The need to increase energy efficiency and gain access to renewable energy sources
Electrification of the economy, including plastic producers
• We electrify our company (e.g. by replacing gas heating with heat pumps), increase the efficiency of energy consumption (e.g. we use LED lighting fixtures) and source energy from RES installed on the buildings we use.
We used 372857 kWh of electricity, which is an increase by 102256 kWh compared to the previous year. More than half of the growth (53%) results from the opening of two new production plants in Nysa and Świebodzice. The remaining part was caused by the year-round operation of heat pumps, which partially replaced gas heating at the Zachodnia and Sosnowa sites. Despite the increase in electricity consumption caused by new heat pumps, the consumption of heat energy from gas needed to heat the rooms decreased by approx. 46% (101450 kWh) compared to the previous year. In other locations (Nowa Ruda and Legnicka), electricity consumption decreased by 5% compared to 2022.
• Replacing fossil fuels with zeroemission electricity can significantly affect the situation of companies in our value chain, especially manufacturers of artificial fabrics. We watch and analyse potential changes in this regard in order to be able to react if necessary.
Table 10 Energy consumption by types
Renewable energy (photovoltaic panels on the roofs and biomass in the form of pellets for heating at one site) accounted for 35% of our total energy consumption in 2023, and in the case of electricity alone, renewable energy accounted for 36% of total consumption. The decrease in electricity production from photovoltaic installations (by 7% year on year) resulted from the lower number of solar hours compared to the previous year. Of the non-renewable energy sources, the most important is electricity consumed from the national electricity system and fossil fuels used for heating: natural gas (energy consumption from gas decreased by 52%) year on year and hard coal at one site. Please note that we are not the owners of the building in which a coal boiler is used for heating.
11 Energy consumption by sources Figure
[GRI 302-3] The development of our company forces an increase in energy consumption, but we strive to make each subsequent unit of growth more effective – if we adopt the example growth criterion of the number of employees, the increase in the number of employees in 2023 was faster than the increase in energy consumption. Hence such a large decrease in the index year on year.
We compare the years 2022 and 2023, but we are aware that there were many variables in 2023:
• there were changes in both the employment structure +53% (opening of two sewing plant)
• There were changes in the structure of electricity demand (energy consumption caused by the launch of heat pumps at the existing sites in Błonie and energy consumption in new sewing plants, but also a small decrease in energy demand at the Nowa Ruda site)
The indicator for the entire enterprise will be monitored by us in the subsequent years and analysed broken down into separate locations.
Efficient use of resources is probably the biggest challenge for the clothing industry. If we are to ensure its higher sustainability, all enterprises in the industry must make significant changes in their functioning. We are aware that it will not be easy, but we are ready to meet the challenge. We notice the following factors affecting us in the future:
waste crisis
Phenomenon/factor
Our approach
• Our products are designed for longevity. They are of high quality, functionality adapted to the specific and specialised requirements of customers and are not subject to seasonal trends. The biggest challenge in the near future is to increase the use of recycled materials while ensuring the durability and resistance to outdoor conditions required by our users
New regulations on waste in the clothing industry
New business models in the clothing industry extending the life cycle of products
• We are working on adapting to the planned regulations, especially regarding the durability and life cycle of products and the possibility of their recycling – in particular related to eco-design, product passports, manufacturer responsibility and fair marketing. We see them as an opportunity, not a threat to our business.
Counteracting greenwashing in the clothing industry
• Our business model and the clothing market segment we occupy predestine us to be at the forefront of sustainable clothing companies. Although we have many challenges ahead of us, they are of a technical and technological nature and will not lead to a fundamental change in the way we operate. We don’t have to learn it, because we already know it. However, there are also experiments ahead with models based, for example, on the repair and service of clothing or equipment.
• Ethical behaviour is the basis present in our business from the very beginning. We talk openly and transparently about the positives and negatives related to our impact on the environment. If we present good practices, we are sure that our claims are well-founded and true.
[GRI 301-1] Proper quality materials that we use must be durable, functional, and resistant to the factors to which they are subjected in use. Materials and textiles are subjected to detailed physicochemical and mechanical tests, and only those that pass the test process in an external certified laboratory are used for production (either own or commissioned). As part of this process, we examine, among others:
• Tensile and tear strength
• Abrasion strength
• Shrinkage resistance in washing
• Colour fastness
• Content of azo dyes, phthalates, formaldehyde, heavy metals, and other substances.
The key raw materials that we use in the production of our clothing and accessories are polyester, nylon, and cotton. When choosing materials, we are guided by their functionality and durability adapted to the purpose – often not only the convenience but also the safety of our customers depends on them.
A polymer that is the basic material for the production of functional clothing. It has features that make it extremely useful:
• it is hydrophobic, so the engineering of polyester textiles is based on wicking moisture from the body surface,
• it is a quick-drying material, which ensures comfort of use even during intense physical activity,
• it is durable and elastic, making it resistant to creasing and shrinkage,
• it is easy to maintain for the user and requires minimal maintenance,
• it is a fabric that is easy to dye with significant colour fastness and resistance to a number of weather conditions, including UV,
• it is possible to relatively easily modify the structure and chemical composition of the polymer to improve the physicochemical and mechanical properties of the finished product,
• it is a thermoplastic polymer.
Thanks to its features, it has revolutionised the production of clothing used by professionals, especially when the condition for success and safety is the proper wicking of moisture away from the skin. It is therefore irreplaceable in functional, sports, and tourist clothing.
It is a polyamide developed by DuPont, with excellent mechanical properties. Nylon fibres:
• belong to synthetic fibres with high mechanical strength,
• have excellent elasticity and resilience parameters and the desired abrasion resistance. Thanks to the combination of these parameters, products made of nylon retain their original shape and dimension for a long time.
For these reasons, nylon fabrics:
• are easy to care for and require minimal maintenance,
• have good chemical resistance to, among others, oils, fats, lubricants, and petrol,
• and the engineering of nylon textiles strives to achieve properties such as waterproofness and watertightness, while maintaining the important feature of drying speed, thanks to which the user is provided with comfort in conditions of high humidity.
For these reasons, as a raw material, nylon is traditionally used in military products and clothing, especially in the American tradition. This material is extremely durable, long-lasting, resistant to external conditions, and therefore perceived by both professionals and enthusiasts as irreplaceable in clothing and accessories such as bags, backpacks, pouches. It is most often used in a mixture of 50% nylon and 50% cotton called nyco in which, while maintaining the functionality of nylon, breathability is increased.
Natural fibre produced from the plant of the same name. Used as an admixture for functional fibres, which allows to increase their breathability and at the same time maintain high technical parameters. In addition, it is used for clothing and accessories that do not have to guarantee moisture wicking like synthetic fibres – for example, in less intensive activities or where it is possible to change clothing.
In the case of our commissioned production, we consumed 582 tonnes of textiles in 2023, of which the three above-mentioned materials constituted approx. 98% of the total.
The above data covers approx. 94% of all products sold in 2023. Leather products (gloves), belts, camouflage clothing were not included. We also omitted non-essential materials (e.g. we did not include fabrics for lining, pockets, threads, zippers, tags, etc.). We are working on increasing the quality of the reported data and intend to increase their scope in the future. Compared to the previous year, we covered about 4.5 times more product groups. This means that last year’s data are not comparable, and making them comparable would be disproportionately laborious in relation to the information value for the user of the reports.
The calculation of the consumption of materials in our own production is based on the quantities of purchased semi-finished products and materials, hence the effects of using or accumulating stocks may occur in the reported data. We purchased a smaller amount of textile materials in 2023 compared to the previous year due to the stock built in 2022 to supply new sewing plants. In the case of other materials, both metal and plastic (buckles, zippers, magnets, shackles, etc.), we began to build such a stock only at the beginning of 2023, which affected the increase in purchases in these categories.
When designing our packaging, we follow the principles of the material handling hierarchy on which the idea of a circular economy is based.
Preventing raw material consumption
Before we start thinking about how to ensure the recoverability of the material and extend the life cycle of the product, we wonder whether the use of the material is necessary at all. In the case of a large part of packaging materials, it turns out that resignation means only breaking habits and only minor logistical complications that are worth overcoming. When material abandonment is not possible, we try to replace virgin materials with recycled ones:.
• in some of our small products, we have completely removed the foil packaging (e.g. Possum, Bandicoot waist bags, Satchel bag, all types of hats, all types of gloves).
• we replaced plastic blisters with cardboard packaging in accessories such as the Ranger and Scout compass.
• we have removed all types of patches from the cardboard wrapper, and for other small accessories, we use only a small paper wrapper instead of a paper wrapper and a foil bag.
• we completely abandoned the sticker with the size of the trousers, which, although it was perhaps more convenient for the customer at the time of purchase, only duplicated the information placed elsewhere. At the same time, we got rid of the problem of recycling these stickers, which was difficult because they were covered with glue.
• in transport to distributors, we use collective packaging and reuse cardboard packaging wherever possible.
• where resignation from foil packaging is not possible due to customer specifications (especially Direct Action® brands), we try to fold and compress products so that we can minimise the size of the packaging.
• We are increasing the share of recycled packaging materials. For example, instead of PAPE, we plan to use 100% recycled LDPE.
• The paper and cardboard we use is also recycled wherever possible.
raw material consumption
▪ resignation from unnecessary packaging elements
▪ products and packaging from recycled and renewable materials
▪ longevity and durability of products
▪ timeless design and functionality
▪ possibility of combining with existing products and systems
▪ possibility of repair
▪ replacement of components
▪ product modifications
▪ designing for future material recovery (e.g. combining materials for easy separation, abandoning unnecessary multi-materiality)
▪ thermal treatment of the non-recyclable material to recover the chemical energy stored in it
▪ Safe storage or disposal where other operations are no longer possible
A large part of the clothing industry, especially companies operating in fast fashion and ultra-fast fashion models, significantly burden the environment with excessive production and related waste:
• rapid rotation of collections based on seasonal trends leads consumers to unnecessary purchases
• this approach assumes low quality and durability of products – they emotionally age very quickly, so they can degrade physically
• the key to profitability are the economies of scale the more it is produced, the cheaper one piece will be – which causes the problem of disposal of unsold, ‘expired’ collections.
Our approach is completely different
We focus on durability and usability of products. We do not work in the rhythm of seasonal fashion, because our products are timeless – both in design and functionality. This prevents them from ageing emotionally or physically at the same rate as fast fashion products. Moreover, they are suitable for repair or modifications, so minor damage does not cause our clothing to end up in a landfill.
The use of open and common standards is convenient for the user and reduces the burden on the environment. Its opposite is the design of closed, unique and proprietary systems – this can be very profitable for the manufacturer, but it is not user-friendly and generates unnecessary consumption and waste.
Our MOLLE and PALS systems, as well as the standardised width of the belts, allow the user to freely combine our products with those of other brands. We do not create exclusive kits, and the customer is not forced to unnecessarily buy new accessories to use them together with our products. It also allows them to tailor their equipment to perfectly suit individual needs. 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.
[306-1][306-2] An ideal product would be one that would never turn into waste. The first step is to ensure that its durability and usability are as long as possible.
Every year in the EU, approx. 5.8 million tons of textiles are thrown away. The average European throws away 11 kg of textiles every year. Around the world, a truckload of textiles is landfilled or incinerated every single second. (EU Strategy for Sustainable and Circular Textiles, COM(2022) 141)
The clothing and accessories we design and manufacture are based on several key features that make their life cycle longer than typical in the clothing industry:
• Their design (pattern, cut, materials, colours) results from the functionality and needs of the customer, not from fleeting and seasonal fashion. Our products do not go out of style and do not age emotionally and can be used as long as their usability meets the customer’s needs.
• We use high-quality fabrics and additional materials from renowned manufacturers (e.g. YKK® zippers, Woojin® buckles), which ensures their durability, strength, and trouble-free operation.
• Our products are compatible with MOLLE (Modular Lightweight Load-bearing Equipment) and PALS (Pouch Attachment Ladder System) for modular mounting and carrying of personal equipment, accessories, pockets, and speedloaders. We do not use exclusive systems that lock the user into a single ecosystem.
• Some of our products (e.g. Bandicoot and Possum waist bags, shopping bags, compression sacks) have been designed in such a way that materials that would otherwise be treated as postproduction residues can be used in their production.
Even such durable products as ours can be damaged and worn out, but this does not have to mean the end of their lives. We provide our customers with comprehensive knowledge of product maintenance and methods of extending their useful life. By chat, e-mail, and telephone, our Customer Service tries to provide 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 to replace those that have worn out. At the customer’s request, we also repair our products.
[306-3][306-4][306-5] As an entity placing products in packaging on the market, we are subject to entry into the BDO (Waste Database) register and report in accordance with its requirements.
The amount of BDO waste in 2023 decreased by approx. 10% compared to the previous year, which we consider a success of our more thoughtful approach that we implemented:
• We have established a team responsible for waste management, which, among others, thoroughly verified the types of waste and updated our notification in BDO.
• We have developed and implemented a new, more effective waste management procedure.
• We have redesigned waste collection points and markings and trained our colleagues in the correct sorting.
The largest group of our direct waste is cardboard packaging. As part of the collective packaging of products in transport, we received 147 tonnes of cardboard packaging, of which 7% was immediately recycled (R3 process according to BDO), and we continue to use the remaining vast majority: to store products in stock, pack regular shipments to our contractors, and transport and store production in our own sewing plants. Plastic packaging (stretch for pallets, wrappers) that cannot be reused goes directly to recycling (R3 process), while textile waste from the sewing plants and complained products (in cases when they cannot be returned to circulation) are sent for disposal (R12 process).
Table 14 Waste placed on the market according to the BDO category in 2023 and 2022. *Due to the introduced changes, the detailed categories in 2022 are not perfectly comparable.
Sent for recycling 93% Reuse in internal logistics and shipments to customers
We strive to optimise and adjust the types of packaging together with our suppliers so that we can continue to use them without losses. For example, we asked suppliers to use, as far as possible, large-sized cartons that have the longest life cycle in logistics processes.
Our plants also generate municipal waste related to the functioning of employees in offices and production plants. We launched information campaigns on waste sorting in 2023, including adding appropriate materials in the onboarding process of new employees. We also use behavioural activities – e.g. we have eliminated individual waste containers. Our plans for the next months include creating our own composters and using them to maintain our own green areas. Already today, we use coffee grounds to fertilise plants inside our facilities.
The amount of municipal waste directly depends on the number of people present in our facilities, so it is directly connected with the significant increase in employment resulting from the opening of new sewing plants in Nysa and Świebodzice. However, thanks to our awareness-raising activities and the responsibility of our employees, the amount of municipal waste per employed person decreased by 16% in 2023 compared to the previous one (from 446 to 376 l per person).
The great challenges that we face include the replacement of fabrics and materials containing per- and polyfluoroacyl coatings (PFAS) with alternatives devoid of them (the so-called C0 coating).
We have been working on solving this problem since 2019. This is important because some materials with C0 coating do not provide the parameters necessary in our some product lines. One such feature is the oil resistance of the finished product. We expect that as a result of legal changes and a possible ban on the use of coatings containing PFAS, exceptions for the military industry will be created. We have taken preventive measures to completely eliminate these substances from our products. We assume that already in 2024, some of all products, and from 2025 (all of our products) will use safe C0 coatings, not containing PFAS.
[303-3] [303-5] We use water resources only for domestic purposes – we do not use it in production processes. We collect it from local water supply networks and feed it to the municipal sewage system.
Our locations Błonie, Świebodzice and Wrocław are located in the area of low water stress, and the locations Nowa Ruda and Nysa are in the area of low-to-medium water stress according to the Aqueduct model developed by the World Resources Institute. None of our locations will be in the area of high water stress, even in the most pessimistic scenario of this model until 2080. This means that we do not have to compete with other users for water resources, although we still attach pay great attention to the efficiency of its consumption.
Why this is important
PFAS is an extensive family of chemical compounds comprising more than 4,700 substances with numerous applications in various areas of life. These compounds contain a covalent bond between carbon and fluorine (C-F), which is one of the strongest bonds found in organic chemistry. This means that substances containing numerous C-F bonds are chemically non-reactive, which is why they have been colloquially referred to as ‘eternal chemicals’. As a result, such substances accumulate and persist in the natural environment and tissues of living organisms.
The clothing industry has an infamous history of having a negative impact on people and society around it. We pay more attention to how we build relationships with our employees and suppliers. This is in line with the values of our family business and contributes to its success. In the course of business, we identify the following factors related to this area.
Phenomenon/factor
Competition in the labour market
Caring for a safe and healthy working environment
Ensuring equal treatment and equal opportunities
Risks related to working conditions at our suppliers
Product safety requirements
Social inclusion of customers and users
Our approach
• We strive to be an attractive employer and take care of working conditions, development opportunities and employee satisfaction. Nevertheless, we are subject to the same trends as all other enterprises and we notice the need for increasingly intense competition in the labour market.
• As a production plant, we attach great importance to the safety of employees and ensuring healthy working conditions – including in the field of ergonomic equipment, more extensive training than the minimum required and, above all, a culture of open communication.
• We pay attention to ensuring equal opportunities, access to training, and promotions for our employees from the moment of recruitment and during employment. We also actively ensure that our employees are sensitive to cultural differences and thus can build relationships with our suppliers and customers based on mutual understanding and respect.
• We are interested in issues related to working conditions at our suppliers. We ask them about it before starting cooperation and pay attention to this matter when we visit their production plants. We have established long-term relationships with most of our suppliers and have had the opportunity to get to know their businesses well.
• The comfort, and sometimes even the health or life of users depends on the quality and functionality of our products. We take care of this matter from the very beginning: from the design stage, and then rigorously paying attention to quality in the production process. This is confirmed by the ISO 9001 and AQAP 2110 certification.
• We are expanding our product offer addressed to women, ensuring that the products designed for them provide the same functional features as men’s/ unisex products when adapted to specific requirements.
[GRI 2-7] [GRI 2-8] [GRI 401-1] Our employment is growing due to the dynamic development of our company. Our organisation has grown through the opening of new sewing plants in Nysa and Świebodzice and as a result of the introduction of new functional departments into the organisational structure. The increase in the number of employees means the emergence of new challenges and the multiplication of existing ones. In order to meet them, we focused preparing processes to include issues related to employees, their management, development, and motivation.
The significant increase in the employment of women (they accounted to 69% of all employees in 2023) results from the growth of the business and the specific nature of the industry – the most common tailors in the company are predominantly women. The same phenomenon can be seen in the more detailed data presented below.
We strive to employ our employees on the basis of permanent employment contracts, which are offered to all employees as successive to fixed-term contracts, during which we verify each other – whether the employee meets the expectations of our company and whether our company meets the expectations of the employee. Due to the specificity of our products, working with them requires higher skills than in the case of the average clothing industry company. For this reason, we want employees to join us for a long time, and the fact that we manage to do so is confirmed by a relatively low employee turnover rate. This also means that we do not employ employees with non-guaranteed working hours as well as agency (temporary) employees.
In addition to the above-mentioned employees, we also worked with 17 non-employees (persons running own businesses) who provided us with consulting services in the areas of IT, marketing, and sales. In addition, one person in our branch in Taiwan represents us in contacts with suppliers and supports our company with expertise and knowledge of the local market.
The recruitment of new employees takes place on the basis of the described recruitment and onboarding processes, which also assumes a meeting of each employee with a member of the Management Board within three months of joining the organisation.
The turnover rate calculated as the ratio of employees who left the company (regardless of the reason) to the average annual employment in our company is comparable to the average for Poland, which fluctuated between 12.8 and 7.4% in 2003-2022. It should be noted that the clothing production industry is one of those in which the turnover is higher than average. This is due to practices used by some entrepreneurs in the industry that are unfriendly to employees, e.g. piecework, shift work and low wages. Since our approach is completely different, the turnover among our employees is accordingly lower. In the event of any voluntary departure from our company, employees have the opportunity to return and some of them use it.
[GRI 401-2] The basic organisational documents that all employees are familiar with are the Work Regulations, Remuneration Regulations and the Regulations of the Employee Benefit Fund. The HR department is responsible for processes in four main tasks: recruitment, onboarding, development and integration.
After the trial period, employees of our company use a number of benefits, which we do not differentiate according to the type and form of employment or location, and which we also make available to employees on parental leave. These are:
• life insurance
• private medical care (85% refund)
• Multisport card (50% co-financing)
• foreign language lessons
• savings and loans plan
• social benefits (packages for children, on the occasion of holidays, leaves, birth of a child)
• co-financing studies and training
• discount on the company’s products
• participation in team-building meetings
We also increase our social competences in the field of non-professional matters and mental well-being. We introduced the so-called Developmental Fridays for our managers, during which we discussed topics such as: generational differences, relaxation methods and work with breathing, motivation (how to achieve a state of flow), dispersed team management, effective mental rest, prevention of burnout, self-discipline, what adults can learn from children, and others.
We take care of the development of our employees’ competences – both on the job and closely related to the tasks performed, as well as regarding soft and social competences. We are currently working on adapting the competency model for the company in a new shape (after the opening of two new sewing plants) and we intend to complete this task in 2024. The next step will be to start a regular employee evaluation process. We are currently implementing it in the form of development talks. Starting from 2023, these are carried out by managers with each member of their team. The main goal of the talks is to develop a clear plan of action that will enable employees to acquire new competences and knowledge needed for further development in our company. In 2024, we will conduct another round of talks, adding to them the feedback from colleagues.
We pay special attention to communication within the team, but also to strengthening relations with managers. This helps to maintain efficiency and job satisfaction, and open communication contributes to more frequent proposals of improvements in production processes and easier signalling of potentially conflicting situations. We have initiated a programme to develop managerial competences, which aims to support teams in acting in accordance with the company’s values. The manager development training topics that we implemented in 2023 included:
• prevention of mobbing
• knowledge about conducting salary talks
• First Time Manager training for people promoted to this position for the first time.
In addition, we supported managers in an individual manner in the case of specific, individual needs.
Our employees also participated in training on stress management, teamwork and tools (e.g. MS Excel). In total, 301 employees took part in internal training on soft competences, and 239 people took part in external specialist training.
[GRI 403-1][GRI 403-2] [GRI 403-5] [GRI 403-6][GRI 403-9][GRI 403-10]
We are a production company, so working in our plants involves the risk of accidents and loss of health. For this reason, we pay great attention to ensuring safe and healthy working conditions for our employees, going beyond the minimum obligations set out in the law. The proper functioning of this area is ensured by a two-person full-time Health and Safety Service.
We assess the occupational risk at individual workstations in a team consisting of an OHS specialist and an industry specialist – an employee experienced in a given position, who advises and assesses the proposed solutions in terms of safety and ergonomics. In 2023, we have updated the occupational risk assessment for all job groups:
• tailor
• CO2 laser operators
• maintenance workers
• mechanics
• warehouse workers
• cleaning workers
• administrative and office employees
• people working remotely.
All employees have access to all occupational risk assessments through a digitised knowledge base. In addition, in all company locations, access to occupational risk assessment, inventory of hazardous substances, safety data sheets, and environmental test results is provided to all employees in paper form, through specially marked and publicly available document storage places.
In 2023, we established an Occupational Health and Safety Committee consisting of representatives of the employer, representatives of employees of each location, and an occupational medicine doctor. The task of the committee is primarily to review working conditions, periodically assess the state of occupational health and safety, give opinions on measures taken to prevent accidents at work and occupational diseases, formulate conclusions on improving working
conditions and cooperate with the employer in the implementation of its obligations in occupational health and safety.
Every two years and after each significant change in working conditions/organisation, we conduct research on the working environment, using the services of specialist external companies. As a result of the tests, we found out the norms were not exceeded.
Our internal regulations also apply to all non-employees staying on our premises – e.g. subcontractors and service providers. Persons performing work on the company’s premises are obliged to comply with health and safety, fire protection and first aid regulations in force at the company. We oblige the managers of the subcontractors’ groups to sign declarations confirming this fact. In addition, on the basis of a separate procedure, the OHS service has the right to check the authorisations required by the regulations, the status of OHS training and medical examinations of subcontractors providing services on the company premises at any time.
We conduct regular occupational health and safety training, both initial and periodic. In 2023, the training covered not only theoretical issues, but also practical exercises using AED devices, an internal hydrant, as well as foam, powder, and snow extinguishers on a specialised fire simulator. Periodic training is conducted only in stationary form due to the presence of practical elements. Each employee of the company knows the basics of fire fighting and first aid as well as evacuation behaviour.
We register each accident at work, and after its reporting, a special post-accident committee appointed by the Management Board carefully analyses the circumstances and causes of the event. Thanks to the analysis of each incident, we can discuss it during health and safety training, which allows us to avoid similar situations in the future. We have also developed and launched an internal procedure for reporting near misses through a specially prepared form. A near miss event is analysed by the OHS department team, which decides on the steps taken to eliminate or, if it is not possible, reduce the risk.
Moreover, during management training, we pay attention to the culture of feedback and transparency of relations and, therefore, the possibility of open communication. In addition to contacting the managerial staff in safety matters, any employee can also consult a safety specialist.
All four accidents that occurred in 2023 were minor injuries to the upper limbs, suffered by employees in the following positions: tailor, maintenance worker, mechanic and junior technologist.
[GRI 401-3] [GRI 405-1] [GRI 405-2] Equal treatment and ensuring equal development opportunities for all employees, regardless of their gender, origin, nationality, religion, sexual orientation, and all other individual characteristics, is part of our organisational culture.
We are subject to the same phenomena and trends as other companies in the market. For example, as in other clothing companies, the sewing plant staff, especially in the case of tailor positions, is feminised, and men are the majority of senior managers. In our case, at all levels of management, there is also a wage gap between women and men. We are aware of this and have set ourselves the goal of equalising it by March 2026 at the latest. We intend to achieve this by conducting an internal job valuation project, comparing our wages to the market, removing barriers and investing in the competences of women employed in the company.
Relations with our business partners, especially from Asian countries, are also part of the culture of openness and sensitivity to diversity that we are trying to build. Out of respect for our contractors, we are trained in cultural differences and intercultural communication to avoid misunderstandings and improve the quality of cooperation.
The noticeable lack of diversity in the Management Board results from the fact that it consists of members of the owner’s family – the sons of the founder of the company, who are also its shareholders. Currently, in our opinion, the benefits resulting from the direct involvement of the company’s owners in management outweigh the potential inefficiencies resulting from the lack of diversity in the highest management body.
Our users use our equipment and clothing in demanding tactical situations, and sometimes their life and health may depend on the reliability and quality of the products we deliver. This applies in particular to professional users of Direct Action® brand products.
Our products must be made in full accordance with the specification and have the functionalities required by users. To ensure this, we certify our quality management system and ensure its compliance with ISO 9001 and AQAP 2110 (Allied Quality Assurance Publication). The latter, in particular, is important in our industry, as it defines the quality requirements of the North Atlantic Alliance in terms of design, development, and manufacturing. In July 2023, we once again underwent certification for both standards, also in the new production plants in Nysa and Świebodzice.
The Advanced Quality Management System improves communication and a sense of responsibility at the interface of various departments of the company, and thus allows us to minimise the phenomenon of silos emerging in large organisations. In the past year, we covered other departments with the Quality Management System and built an internal team of auditors who support the entire company in improving its processes.
For some products, the laws and requirements of professional users go even further. In 2023, by decision of the Ministry of the Interior and Administration, we obtained License No. 101/2023, covering the consent to trade and manufacture of ballistic products - military and police vests with the right to storage. We have also received a positive opinion of the Military Institute of Engineering Technology confirming that we meet the technical and organisational conditions and ensure the proper performance of the economic activity covered by the Concession.
At first glance, tactical clothing and equipment seem to be products available to every customer. In practice, however, it is the design that determines whether everyone will be able to use them. Historically, our products have been the domain of men, who are the majority of uniformed employees and fans of outdoor activities. Recently, the situation has changed and women not only have the opportunity, but also actually become active users of tactical products and clothing. Some of our products are prepared in unisex versions, but we have also developed new versions of our best products especially for women. Our tactical trousers, jackets and shirts in women’s versions have exactly the same features and functionalities as men’s products, but are tailored to the specifics of women’s body structure. These products still constitute a relatively small part of the total sales, but we are seeing their year-on-year increase and intend to continue expanding our offer in this area.
The design of tactical clothing for women must take into account their different anthropometric features. Average women are of a finer build than average men, but in addition, the female figure requires a different cut than the similar size of men’s clothing. For this reason, in order to maintain the functionality and usability of our products, we had to redesign them taking into account the female anatomical features.
As a company, we are also socially responsible and want to play the role of a ‘good citizen’ in the communities in which we operate. We have been involved in social actions and supporting valuable initiatives for years. In 2023, we took, among others, the following actions:
• We have established cooperation with the GOPR Foundation (Mountain Volunteer Rescue Service). As part of this action, we provide rescuers with high-quality Helikon-Tex® clothing and equipment to help them fulfil their duties in demanding and sometimes extreme conditions. In return, the experience and knowledge of GOPR rescuers and feedback on our products will have a significant impact on their improvement and development. We expect that this partnership will result in many joint projects.
• Once again, we got involved in the ‘Gwiazdor’ campaign. 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 pupils of the orphanage in Golanka Dolna in Lower Silesia.
• We also financially supported the Student Sports Club Miękinia, operating in the municipality, as well as the Cape of Hope Hospital and the Puchaczówka Foundation.
In our industry, innovation is of particular importance. We have the comfort of being able to design our products for years and fine-tune them in detail. They are not subject to seasonal fashions and trends, but they have to meet the very strict requirements of our customers. They must be safe, functional and durable – sometimes the health and life of users depends on it – and also produced in a sustainable way, from materials that minimise the impact on the natural environment.
Our success is based, among others, on over thirty years of experience and excellent knowledge of our customers’ needs. When designing products, we test them many times at the stages of prototypes and pre-production pieces, also in field conditions, using the support of experts that cooperate with us.
In our case, in addition to the built-up intellectual capital in the area of product design and customer relations, the technical competences of production employees are particularly important. The nature of the materials we work with and the requirements of customers place higher requirements on the employees of our sewing plants than usually found in the clothing industry. For this reason, we train our employees intensively and take care of their working conditions to minimise employee turnover.
The corporate culture of a family-owned company, built on a clearly defined vision of the owners and one where the owners directly and with full commitment manage the company, can be a significant competitive advantage. We try to take advantage of this opportunity and consciously manage our culture.
We communicate our values clearly and openly, which are a signpost and guide in moments of difficult decisions.
Toleration is a value that we have been cultivating for several decades – as a company constantly developing and operating in such a dynamic industry, we focus on full respect for the private and business opinions of our employees and customers, thanks to which we can look at each issue from many perspectives and draw from various experiences. For us, freedom of speech and respect are absolutely crucial.
We define development in many ways: through the development of the company and the brands it manages, the development of employees who are the core of the company and without whom the company development would not be possible, and the development of products that are the result of the two previous elements and allow us to meet the growing expectations of users of our clothing and equipment. At the same time, we are aware that development is a value that cannot be simply implemented – it is a process which we constantly follow when making decisions in the face of the ever-changing environment.
Tactical clothing and equipment are sometimes used in extreme situations – both in torrential rain and in scorching sun, damp forest and in the desert, and sometimes also in dangerous conditions – smoke, near fire or dangerous substances. Well-designed products will retain their specification and functionality without losing their durability. And even if they are not used exactly as intended, because tactical situations sometimes require creativity.
The comfort, and sometimes the health or life of users of our products, depends on how well and meticulously we have carried out the process of designing and testing them.
For us, ethics is first and foremost honesty towards everyone with whom we cooperate – employees, suppliers, customers, as well as users of our products. We act responsibly, transparently and in accordance with the law, trying to set a good example and build a transparent image of the company as well as its own and distributed brands.
6.3 Responsible supply chain, supplier relationship management and working conditions of our suppliers’ employees
Proper relationships with our suppliers are particularly important. 0The quality of our products depends on our suppliers, which must meet the strict requirements of our customers. Our suppliers also have an impact on the natural environment and people in their surroundings. The employees of our suppliers of finished products and materials are also an important, though distant, stakeholder. Taking into account the infamous history of the clothing industry, there is a risk of violation of rights or working conditions.
For these reasons, we take special care to select suppliers appropriately. The criteria we pay attention to are:
• Competences and technical capabilities necessary for the production of high-quality functional clothing and equipment
• Compliance with ethical and social standards
• Compliance with environmental regulations, especially with the REACH system, especially with regard to the finishing of products
• Adaptation of the supply chain to our requirements
• The price, which, although must be competitive, cannot indicate labour exploitation – we analyse this factor and expect explanations in doubtful situations
• Current portfolio, recommendations from existing customers or – which we particularly appreciate – our other suppliers.
Although we do not yet have a formal mechanism for ensuring compliance with working conditions and human rights, we try to minimise the risk through a careful supplier selection process.
Establishing a business relationship begins with the prospective supplier completing an extensive questionnaire containing information on, among others, infrastructure, equipment, working conditions, and compliance with social and environmental standards.
If the supplier passes initial verification, we proceed to tests and quality control – first at the prototyping stage, then pre-production pieces, and then final production. In the meantime, for most suppliers, we also check the quality during a personal visit to the production plants.
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Suppliers who meet our requirements can count on long-term, respectful, and fair conditions, as well as mutually beneficial cooperation. This is evidenced by the long-term nature of our cooperation. Some of our suppliers have been with us since the very beginning of the company’s existence, and as many as 65% have been working with us for over five years.
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We are constantly working to improve the quality of our management. With the development of our company come new challenges that we have to face, as well as new risks that were previously less important. We attach great importance to respecting both the law and ethical principles, but we do not manage all areas in a fully developed manner yet.
The most important areas we work on are:
• Rules for reporting violations and whistleblower protection– we currently do not have a formalised system in this area. Due to the scale of our operations and the corporate culture in our company, we assess the risk of violations as relatively low. However, in the future, we intend to create a whistleblower reporting and protection mechanism, including for our suppliers, to further reduce the risk.
• Prevention of corruption, fraud, and other abuse – as above, the scale of our business has so far allowed us to effectively manage these risks through ordinary managerial tools. We intend to prepare an internal code of ethics and a code for our business partners specifying the values, attitudes, and behaviours that we promote in our company and ones that we do not allow.
• The issue of animal welfare – we use materials of animal origin to a small extent. In some cases, this is required by the characteristics and specifications of products, especially leather gloves. We intend to analyse this area and implement tools to ensure that even small amounts of leather that we use are obtained in a responsible and ethical way.
Entire M Sp. z o.o. presented a report with reference to the GRI Standards for the period starting on January 1, 2023 and ending on December 31, 2023.
The report was prepared using the GRI 1: Foundation 2021 standard. Currently, there are no GRI sectoral standards relating to our activities.
