In Good Hands
Sustainabilit y Repor t 2022/23
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HESTRA GLOVES @HESTRAGLOVES @HESTRAGLOVES
Sustainabilit y Repor t 2022/23
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HESTRA CEO STATEMENT
Long-term approach in challenging times: Sustainability statement by Hestra’s CEO Anton Magnusson is Hestra’s management director and represents the fourth generation in the family business. For him, sustainability has been central to the company since its start in 1936. Today, it is a key factor to meet global challenges.
By creating longlasting gloves, we aim to reduce the need for buying new ones.
Looking back over the past year, I am proud to be part of Hestra. After all the turbulence caused by pandemics, uncertain market conditions and the effects of the war in Ukraine, we have continued to be challenged as a company. In these times, we benefit from our strengths as a family business, which have evolved since my great-grandfather founded Hestra in 1936: The focus on high quality gloves that last. Long-term partnerships with suppliers we trust, taking direct ownership in factories that gives us control over our production. The financial stability and long-term vision. The knowledge and craftsmanship we have built up over decades. And, of course, the strong relationship with our people, their loyalty, and their daily commitment to quality. These strengths, which keep us stable and successful even in challenging times, are also the foundation of our approach to sustainability, as outlined in this report.
China. This is an important step towards becoming less dependent on conventional energy sources. At around 28,000 pairs, Hestra sold more replaceable liners than ever before, extending the life of many thousands of gloves. We encouraged even more tanneries to join the Leather Working Group (LWG), which sets high standards for working conditions and the use of chemicals. (69% of our leather comes from LWG-members). With a new factory of our own in Cambodia, we continue to preserve the tradition of glove making. And our Mono Wool glove, made of a recycled version of our proven Triton weave and chrome-free leather, was honoured by the Scandinavian Outdoor Award for sustainability at ISPO 2022.
FROM SMALL STEPS TO MILESTONES THE WILL TO DO THINGS RIGHT
For Hestra, sustainability starts with the product. By creating long-lasting gloves, we aim to reduce the need to buy - and produce - new gloves. This is the best way to conserve the planet’s resources. At the same time, we are constantly improving the quality and functionality of our products, as well as the social and environmental conditions under which our gloves are produced. It is a natural, never-ending process with many small steps in all parts of the value chain. Some milestones in 2022/2023 make me particularly proud: It was the first year in which we produced own solar energy through newly installed panels at factories in Vietnam and
There are still big sustainability challenges to tackle: Switching to greener logistics. Collecting reliable and consistent climate data from our suppliers. Avoiding overtime due to production peaks. But it gives me confidence that Hestra has always been a family business with the will to do the right thing. We are constantly taking decisions and actions that make our gloves better and our business a bit more sustainable. Anton Magnusson, CEO HESTRA
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HESTRA COMPANY
Gloves for every need
Our profile Hands come first at Hestra. For 80 years, we have been developing gloves that provide warmth, protection and fingertip sensitivity in the most varied conditions. Martin Magnusson founded the family business in 1936 in the small village of Hestra, Sweden. Here, in the midst of Småland’s forests, he turned his farmhouse into a workshop and started making gloves for the local lumberjacks. Today, the company is run by the third and fourth generations of the Magnusson family. Hestra has a global presence and a range comprising of more than 400 different styles. All products are still designed and developed at our headquarters in the small village of Hestra, Sweden, and
manufactured in our own factories in Hungary, Vietnam, Cambodia and China. All leather, fabric, wool and other materials are sourced by our own organisation. This approach ensures a high level of quality in our products and processes, and allows us to better control the production chain. In 2022/23, Hestra had a total of 868 employees, of whom 693 were women and 175 men, and a turnover of SEK 790 million. We produced 2.3 million pairs of gloves, sold through subsidiaries in Sweden, the USA, Norway , Denmark and Germany, as well as through distribution partners in more than 40 countries. However, the focus remains on hands and gloves. And Hestra is still our home.
Our presence PRODUCTION
OFFICES
STORES
SALES MARKET
GUANGDONG, CHINA HAI PONG, VIETNAM PHNOM PENH CAMBODIA RAKAMAZ, HUNGARY SHANGHAI, CHINA
COPENHAGEN, DENMARK DENVER, USA HESTRA, SWEDEN - HQ MUNICH, GERMANY OSLO, NORWAY
COPENHAGEN, DENMARK GOTHENBURG, SWEDEN OSLO, NORWAY STOCKHOLM, SWEDEN
EUROPE JAPAN NORTH AMERICA OCEANIA
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HESTRA PRODUCTS
Our business divisions
Sport The Hestra Sport collection includes hundreds of glove models. While that may sound like a lot, decades of experience have taught us that every hand, day and activity is different. This collection is designed in collaboration with freeriders, mountain guides, instructors and others who place the highest demands on their gloves.
Dress In our world, even 0.1 millimetre makes a difference. For four generations we have been solely devoted to one thing: Preserving and practicing the rare art of glove making by crafting the world’s finest gloves from carefully selected materials. Inspired by our natural surroundings, our master-certified glove cutters use the finest leathers and materials to craft style-forward gloves that balance warmth, dexterity and style.
Professional In 1936, Hestra founder Martin Magnusson sourced local wool, leather and rivets to construct gloves to help the area’s lumberjacks work through the harsh Scandinavian winters. The guiding principles of quality material, thoughtful construction and user-centric design remain our primary focus today. In our workglove line you will find gloves for military, gardening, construction and other uses. It is a range of gloves with an emphasis on dexterity, protection and features built for the task at hand.
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TABLE OF CONTENTS
Table of contents OUR FRAMEWORK................................ .10 Values & governance Our colleagues Climate strategy
8 out of 10 models carried over to the next season
DESIGN & MATERIALS.............................19 Story: A gold medalist’s durable glove
> READ MORE ON PAGE 19
SOURCES & SUPPLIERS.........................23 Story: Passion for durable textiles
91 %
PRODUCTION & LOGISTICS..................27 Our own factories Story: Stitching perfection into gloves
SALES & COMMUNICATION...................33 Story: A mono-malistic pioneer
CARE & REPAIR.........................................37 Story: Reclaiming glove glory 91% OF OUR GLOVES WERE MANUFACTURED BY FACTORIES AUDITED BY AMFORI BSCI.
APPENDIX..................................................40 Sustainability risks – overview Auditors’ report
> READ MORE ON PAGE 30
GSL Race Comp – Sara Hector’s durable racing glove.
About the report
> READ MORE ON PAGE 21
This sustainability report has been prepared by the Hestra sustainability team, Marie Rudenvall and Rebecka Markinger, in accordance with Chapter 6 of the Swedish Annual Accounts Act. It covers the operations and subsidiaries of Hestra, legally known as HESTRA-Handsken AB, in the fiscal year 1 May 2022 to 30 April 2023. The previous sustainability report was published September 2022. The Board has ultimate responsibility for the company’s sustainability reporting process and report. If you have any questions or comments, please contact Marie Rudenvall, Head of Quality and Sustainability, marie.rudenvall@hestragloves.se.
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HIGHLIGHTS 2022/2023
69 % 69% OF OUR LEATHER WAS SOURCED BY SUPPLIERS CERTIFIED BY THE LEATHER WORKING GROUP (LWG).
> READ MORE ON PAGE 24
28,000 replaceable liners prolonged the life of 28,000 gloves.
1,200 gloves were repaired in our repair centers and are ready for new adventures.
> READ MORE ON PAGE 37
> READ MORE ON PAGE 39
Sustainability award to Hestra’s Mono Glove at ISPO 2022
Knowledge transfer at Hestra’s new factory in Cambodia
> READ MORE ON PAGE 35
> READ MORE ON PAGE 29
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In good hands Hestra’s sustainability framework, In Good Hands, is based on the company’s purpose, values, routines and processes, which have evolved since the company was founded in 1936. Today, it outlines our commitment to sustainable development throughout our value chain.
THE BASIS OF OUR APPROACH
SUSTAINABILITY FOCUS ALONG THE VALUE CHAIN
Company values – A global family business with roots in Hestra, Sweden. Designing, manufacturing and selling high quality gloves with a long-term approach (page 12).
Design & materials – Developing quality gloves with outstanding longevity and functionality, by continuous innovation and thorough evaluation of materials (page 19).
Governance – Sustainability management and policies, international standards and partnerships (page 13).
Sources & suppliers – Long-term collaborations with selected partners, based on our code of conduct and policies for chemicals and animal welfare (page 23).
Colleagues – Working conditions and well-being, competence development and gender equality (page 14).
Production & logistics – Manufacturing in our own factories is regularly audited for quality, environment and working conditions (page 27).
Climate strategy – Switch to renewable energy, less energy consumption and greener logistics (page 16).
Sales & communication – Honesty, transparency and good guidance for the customer, selling quality gloves for real needs and having a large number of carry-overs (page 33). Care & repair – Prolonging the gloves’ life by providing care guides, offering replaceable inner gloves and liners as well as repair services (page 37).
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HESTRA & SUSTAINABILITY
SUPPLIERS & MATERIALS
PRODUCTION
IN GOOD HANDS VALUES GOVERNANCE COLLEAGUES CLIMATE STRATEGY
DESIGN & DEVELOPMENT
SALES
CARE & REPAIR
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HESTRA & SUSTAINABILITY | VALUES
The values our gloves are made of WE MAKE GLOVES THAT LAST. We design, manufacture and sell high quality gloves. Over generations, we have refined our glove-making skills, but we still strive to refine our processes and products. It is about finding the right balance between materials, construction, production alternatives and marketing to provide the best products for our customers. We focus on the purpose of the products, ensuring the desired functionality and durability. This durability is also our greatest contribution to the environment and climate, as it reduces the need to replace products each season and the production of new materials. Our range of replaceable liners further extends the life and functionality of the gloves.
JONAS MAGNUSSON, PRODUCT MANAGER, HESTRA HQ
WE ARE A FAMILY BUSINESS. When Hestra was founded in the 1930s, it supported the needs of a single family in the small village of Hestra. Today, we provide employment for hundreds of women and men around the world, supporting the needs of their families. In fact, the feeling of being one family remains strong among our colleagues, with many employees staying with the company for decades. By owning the factories where most of our gloves are produced, we can directly influence working conditions and environmental impact, as well as quality and delivery times. It is also crucial for building up and transfering knowledge within the company – and for establishing the strong relationship to our employees that characterises Hestra as a family company.
THE MAGNUSSON FAMILY
WE THINK LONG-TERM. We seek to make decisions that we know will bring benefits in the longer term. Partnerships with customers, suppliers, business partners and employees are based on trust and are often long-term. We are constantly reassessing and reviewing our products, fine-tuning details of styles carried over from previous seasons and adjusting processes to improve our operations. Our commitment to building a solid business for future generations gives us a long-term approach to business, where we make decisions that are financially and ethically sound, while honouring our brand and its legacy.
ANNETTE LIDÉN, REPAIRS SWEDEN HQ
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HESTRA & SUSTAINABILITY | GOVERNANCE
Controlling sustainability risks
BOARD CEO MANAGEMENT GROUP
MARKETING
FINANCE
IT
PURCHASE
SALES
WAREHOUSE
HEAD OF QUALITY AND SUSTAINABILITY
SUSTAINABILITY MANAGEMENT
Code of conduct: Expectations for business partners and suppliers on social issues such as working environment, remuneration, working hours, etc. Based on amfori BSCI’s Code of Conduct and its 11 principles.
Sustainability governance is led by Hestra’s CEO and management team, who report to the Board of Directors. In recent years, sustainability has been integrated into the Board’s responsibilities and is addressed at Board meetings. The appointed Head of Quality and Sustainability is responsible for operational sustainability and brings together the company’s sustainability team, which includes representatives from various departments within the organisation.
Chemical contract/RSL: Restricted Substances List (RSL), compiled by the Swedish Chemicals Group, based on REACH and other relevant legislation. Updated twice per year. Animal welfare policy: Based on the five freedoms of animal welfare: Freedom from hunger and thirst, freedom from discomfort, freedom to express normal behaviour, freedom from disease, pain or suffering and freedom from fear and distress (page 24).
ETHICAL BUSINESS CONDUCT Our business relationships are built on mutual trust and a commitment to sustainable business practices. Ethical business behaviour is expected of all colleagues, suppliers and business partners, and our expectations are set out in our Code of Conduct, policies and guidelines (see page 40 for a more detailed overview).
Other policies: Environmental Policy, Work Environment Policy, Employee Handbook including Gifts and Hospitality Policy, Equal Opportunities Policy, Alcohol and Drug Policy, Victimisation and Harassment Policy.
Partners & Standards
Textilimportörerna
LWG member
Audited by amfori BSCI
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Member in the Swedish Chemicals Group
ISO 9001 and 14001 certified
HESTRA & SUSTAINABILITY | COLLEAGUES
The people behind the gloves ENTREPRENEURIAL CULTURE Our success depends on our ability to retain and recruit talented people with the right skills. We are looking for engaging, committed and competent people with a passion for gloves, who strengthen the company with their expertise and enthusiasm. Hestra currently has more than 800 employees at its Swedish headquarters, subsidiaries in Norway, Denmark, the USA and Germany, as well as its own factories in Hungary, China, Vietnam and - since 2022 - even in Cambodia. Our responsibility is to offer them a challenging and fullfilling job with competitive salaries, attractive and safe workplaces, decent working hours and health care. And to make everyone feel part of the Hestra family.
PINGHU, CHINA
GOOD WORKING CONDITIONS AT OUR OWN FACTORIES Operating our own factories helps to foster our corporate culture, keep the feeling of belonging and make sure that our gloves are manufactured under good working conditions. Air condition, good lightning and daily cleaning routines ensure ideal working environments in all factories. We offer benefits including social security, lunches and performance bonuses. With annual safety rounds, accident routines and health checks every three years, we take care of the staff’s wellbeing. Working conditions in Hestra’s factories in Hungary, China and Vietnam are audited by amfori BSCI. In 2023, one factory received an A rating (Hungary), one factory a B rating (Vietnam) and two factories a C rating (China). We aim to achieve at least B ratings in all our factories. The BSCI audits are important for us to identify areas for improvement. One reoccurring challenge we face are seasonal variations, which can lead to overtime during certain periods. We aim to avoid peaks through better planning and regular dialogue between purchasing and factories (more on page 30).
CHINA
USA NORWAY DENMARK GERMANY SWEDEN CAMBODIA
VIETNAM HUNGARY 868 EMPLOYEES IN 9 COUNTRIES. THE MAJORITY WORKS IN OUR OWN FACTORIES AND AT THE HESTRA HEADQUARTER IN HESTRA, SWEDEN.
COMPETENCE DEVELOPMENT Employees are offered training based on their role requirements. This includes bespoke training for health and safety managers, English language, environmental compliance and sustainable leadership. They are even encouraged to learn and take on a variety of roles and responsibilities to broaden their skills and gain insight into other parts of the business. Annual performance reviews with their managers help them to influence their roles.
MATSOUKA, VIETNAM
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HESTRA & SUSTAINABILITY | COLLEAGUES
FEELING OF BELONGING As a family business, it is important for us to create and maintain a sense of belonging among our employees. In all our units, local management has a specific mandate to organise team activities tailored to local and cultural conditions. Hestra Matsuka Vietnam, for example, organises annual trips with accommodation and team-building activities for all employees. Meanwhile, Hestra Pinghu in China has inherited and developed welfare policies from the past, including care for retired employees and sick family members, and support for children’s education.
ACTIVE HEALTH CARE The Hestra brand is associated with an active lifestyle and a passion for the outdoors. It makes sense that our head office supports and encourages outdoor activities. Employees are offered an annual contribution towards wellbeing activities. We support participation in events such as the Blodomloppet running event, organise soup lunches and skiing on our local slopes at Isaberg. Hestra also takes care of the practical arrangements for employees participating in the Vasaloppet, Sweden’s legendary 90 km cross-country skiing event.
HESTRA MATSOUKA VIETNAM
Over the past three years, the average length of service at Hesta’s head office has increased from 7 to 9 years - two years more than the Swedish average.
GENDER EQUALITY Diversity is a challenge in the apparel industry and an issue we are committed to addressing. Traditionally, most seamstresses in the countries where our factories are located are female. A risk for our seamstresses is the ability to maintain a manageable workload that can be combined with family responsibilities. At our head office and in the sales organisation, the gender distribution is more equal. Balanced teams with complementary skills and personalities benefit both the teams and the business. Gender pay gaps are reviewed annually and salaries are benchmarked against industry peers.
EMPLOYEES
FACTORIES
BOARD
868 employees
766 members
5 members
Female: 80 %
Female: 83 %
Female: 0 %
Male: 20 %
Male: 17 %
Male: 100 %
EMPLOYEES IN HESTRA’S FACTORIES AND MANAGEMENT: HIGH SHARE OF FEMALE WORKERS IN PRODUCTION – BALANCED GENDER RELATION IN THE HEADQUARTERS.
HESTRA COLLEAGUES PARTICIPATING IN THE BLODUMLOPPET 2022, A NATIONAL RUNNING-EVENT AND A POPULAR TEAM ACTIVITY.
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HESTRA & SUSTAINABILITY | CLIMATE
The glove’s carbon footprint The fashion industry is known to be one of the world’s largest emitters of greenhouse gases. The industry’s supply chains, which involve the production and transport of materials, are a major source of these emissions. As consumers buy and dispose of clothes more quickly, emissions are increasing. This is why our commitment to making gloves that last is also important from a climate perspective. The part we can directly control and improve is the energy used in our own operations – in our factories, headquarters, stores and subsidiaries, in transports and travelling. Every year we take steps to reduce our energy consumption and switch to renewable energy sources that emit fewer greenhouse gases.
our factories. Another reason is the opening of new concept stores in Gothenburg and Copenhagen, which were added to the energy statistics.
SWITCH TO RENEWABLE ENERGY At the same time, we are switching to renewable energy. Hestra’s headquarters already uses 100 percent renewable electricity and the concept store in Stockholm around 30 percent. For 2023/2024, we are negotiating new contracts for our concept stores in Oslo and Copenhagen to receive a higher share of renewable energy even there. When it comes to our own factories, switching to green energy is often more challenging as we are dependent on the energy available at the location, which often still comes from conventional sources. Hestra has therefore started to install solar panels at its production sites in China and Vietnam. More factories will follow in the future (more on the next page).
REDUCING ENERGY CONSUMPTION For saving electricity in our production, we invested in more energy-efficient sewing machines and LED lighting. In Hestra headquarters, we upgraded the heating system to a modern technology that consumes less energy. While we used 18 percent less energy in the headquarter in 2022/2023, the company’s overall energy consumption increased by 20 percent. The main reason for this is that Hestra produced more gloves this year, which meant more electricity was needed in
LONG-TERM WIND PARK INVESTMENT In 2010, Hestra joined forces with 30 local companies to form the wind power cooperative Egen Kraft. Today, the company
Energy consumption vs own energy production 2022
1.432.918 kWh 750.025 kWh
2021
1.282.600 kWh 596.511 kWh
2020
1.109.407 kWh 630.833 kWh
Energy comsumption in our own factories in Hungary, Vietnam and China
Energy consumption in our HQ, offices, stores and showrooms
Windpower production according to Hestra’s 2.8% stake in Egen Kraft
Energy production by our solar panels in Hungary and Vietnam
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HESTRA & SUSTAINABILITY | CLIMATE
SOLAR PANELS AT OUR FACTORY HESTRA PINGHU.
EGEN KRAFT’S WIND PARK IN SOUTHERN SWEDEN
operates three wind farms in southern Sweden and also facilitates the installation of solar panels at some of the partner companies’ sites. The electricity produced is fed into the grid and sold at market prices. Hestra owns a 2.8 percent share, which corresponds roughly to the electricity consumption of Hestra’s head office and warehouse. Egen Kraft is looking to invest in new wind parks and aims to extend the installation of solar panels to more partner companies. This will increase our contribution of renewable energy to the grid in Sweden.
(28 percent of demand). In Hungary, we received approval for solar panels this year and the installation project is underway. The installation of solar panels at the Hestra headquarters is planned for the beginning of 2024, and will be coordinated with the reconstruction of the warehouse.
MORE EFFICIENT AND GREENER LOGISTICS Transport accounts for a significant proportion of global greenhouse gas emissions, with air travel being a particularly large contributor. Hestra strives to minimise the impact of transport on the climate and puts a lot of effort into planning, purchasing and logistics. Together with our logistics partner Geodis, we are working to increase the share of rail freight as soon as it becomes available and to choose sea transport whenever possible. The situation for transport has been challenging since the pandemic. In 2022/23, several factors blockades, port blockades and the war in Ukraine - contributed to an increase in air freight and our transport-related emissions (read more on page 30).
SOLAR PANELS AT OWN FACTORIES AND HEADQUARTERS The first solar panels were installed in September 2021 at our factory in Vietnam, Hestra’s largest facility, where weather conditions require air conditioning to create a comfortable working environment. The solar panels have the capacity to produce approximately 120,000 kWh (30 percent of the demand). In spring of 2022, one of our Chinese factories was also equipped with solar panels, generating around 50,000 kWh
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DESIGN & MATERIAL
High quality gloves that stand the test of time When creating a new glove, our top priority is to deliver high quality and longevity, while also focusing on comfort and sustainable manufacturing.
whether gloves will perform in real-life situations and withstand the demands of heavy use.
DURABLE GLOVES IN TIMELESS DESIGN In our home region, the high-lying forests of Småland, people are known for taking good care of their belongings. For saving resources, making rational decisions and thinking twice before buying something new. Much of this attitude is also reflected in Hestra’s design philosophy. We make gloves that can be used for many years. Even the design itself – the colours, details, and everything that goes into the aesthetics – is intended to have a long life. This design philosophy, including the selection of durable materials, has a significant impact on the environmental footprint of our products and company.
THOROUGH EVALUATION OF MATERIALS In general, we favour leather, wool and proven synthetic materials that can enhance the longevity and performance of a glove. Arguments considered in the material selection process include material composition and sustainability performance. Functional performance is tested in laboratories, both in-house and at accredited third party laboratories. Among other things, we simulate abrasion by rubbing the material against an abrasive surface in the Martindale machine. The sustainability evaluation is based on factors such as water consumption, chemical use and proximity between supplier and factory.
CAREFUL INNOVATION AND INTRODUCTION OF NEW DESIGNS
Design at Hestra is very much about the many small steps and improvements. 80 percent of the range is carried over from SWITCHING TO RENEWABLE one season to next, and often no more ERGO GRIP ACTIVE ALTERNATIVES than 2–3 new colours are introduced each We aim to replace more and more year. This has many benefits: Stability for materials with sustainable alternatives. A key requirement is that our suppliers, more manageable production, less waste, quality the quality and durability is better than or at least equivalent improvements, and less need for our retailers to clear out and to the original material, and that the recycled fibres come from replace their stock each season. verifiable sources. When we introduce something new, it is after careful patternmaking and comprehensive testing. Prototypes are thoroughly scrutinised, both in the design studio and in the field, sometimes with assistance from our network of experts – professional skiers and bikers, mountain guides and other outdoor experts. Field testing is unparalleled when it comes to determining
In 2022/2023 we had an exciting development project with the Mono Wool glove. We first created and tested a recycled version of our proven Triton polyamide fabric, which was then combined with chrome-free goatskin, recycled nylon details and a replaceable undyed wool liner (read more on page 35).
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DESIGN & MATERIAL
0.46% Warranty claims with a purpose
BABY ZIP LONG
Product warranty claims are managed by our claims department in Hestra, Sweden. In 2022/2023, we had 0.46 percent complaints in relation to the total number of gloves delivered. The most common complaints related to seams and materials. Whenever possible, we aim to repair the faulty product, and if this is not possible the product is replaced. Warranty claims provide good insight into how the products are used and show weak-spots and limitations with certain materials or constructions. Any recurring problems are identified and, where possible, resolved for future production runs, often through changes in design or materials. Images of the faulty products are also shared with our suppliers to ensure the problem is properly addressed.
Assessing safety for children’s gloves Chrome-free leather in skiing favourite
We recognise the importance of providing gloves that not only offer comfort and protection, but also meet stringent safety standards. For this reason, all our gloves undergo an extensive chemical testing process. And when it comes to children’s gloves, we go the extra mile by conducting a special health and safety risk assessment to thoroughly analyse the overall safety of the product. This assessment includes looking at fasteners such as zips, hooks, handcuffs and more. Particular risks are details that can lead to accidents, such as small parts that may come loose and cause injuries, or parts that might become trapped during use. All details are reviewed carefully and their importance is evaluated in relation to the overall function of the glove. Any details that do not meet safety standards are not used. Having many recurring details with a proven safety record makes our work more streamlined. However, every time we design a new model or introduce a new detail, we assess it with much care. Safety comes first.
PHILIPPE RAOUX CLASSIC
For some ski, outdoor and casual gloves, we are exploring alternative ways of treating leather without using chromium. While chromium salts efficiently transform raw animal hides into durable leather, they can also pose health risks to workers and the effluent needs to be properly treated. Ecocuir is tanned using synthetic agents to prepare the hides. These substances play a vital role in preserving the skin’s elasticity and water resistance, preventing any degradation. When done correctly, the result is remarkably similar to that achieved with chrome salts. Chromium-free bovine leather such as Ecocuir shows only a slight reduction in elasticity, which does not compromise the functionality required for the intended use of these gloves. Ecocuir is used in the Philippe Raoux Classic, named after a legendary French mountain guide we had the pleasure of meeting in the 1990s. It is a long, highly functional glove designed for dedicated skiers, offering a similar level of durability and protection as chrometanned ski gloves.
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DESIGN & MATERIAL
GSL RACE COMP MITT
Tried-and-tested for longevity – the Olympic gold-medalist’s new glove A glove for top-level alpine racing must meet very high demands. Together with Swedish national team skier Sara Hector, Hestra has developed a racing glove that is both more comfortable on the hand and that lasts longer. Hestra has been making alpine racing gloves for decades. Already in 1975, we started cooperating with the Swedish Ski Association and are today a long-term partner for both the Swedish and the Norwegian national alpine teams. The elite athletes’ feedback on our gloves is invaluable in developing products that allow them to perform at their best, while being durable enough to last. Sara Hector is one of the most experienced skiers in the Swedish national alpine team. She competes in slalom and giant slalom and has taken part in six World Championships. Among her many achievements is an Olympic gold medal in the giant slalom at Beijing 2022. If she wants, she can also add the title ’glove expert’ to her list of achievements. Just in time for winter 2023/24 season the GSL Race Comp glove, the result of a collaboration between Sara and Hestra’s design department, will hit the store shelves. “Giant slalom is very hard on gloves. There are very large angles and it is almost inevitable that your hands will hit the
slope at some point during the run. The friction from the snow and ice burns away normal materials”, says Sara Hector. Sara speaks from experience. She is known for her tough riding style and may even have a special talent when it comes to gloves: ”When I’m skiing, the gloves have to withstand a lot, so I guess you could say I’m a good test subject when it comes to durability”, she says with a laugh. Sara has a personal commitment to sustainability and has, among other things, initiated the ALS Challenge, a parallel slalom race held every year at the Kungsberget ski resort to support ALS research. She notes that there is unfortunately an inherent conflict between competing at an elite level and making sustainable personal choices: “As an elite athlete, it’s all about being the best in the world – it’s really far from an environmental responsibility. But I also avoid flying as much as I can and have even moved down to Austria to reduce my travel to some extent during the competition season.”
Giant slalom is very hard on the gloves. It is almost inevitable that the hands hit the slope during the run.
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SOURCES & SUPPLIERS
The best materials, from trusted suppliers Hestra’s suppliers are an extension of our business. We nurture long-term relationships and work with carefully selected companies that share our values of quality and responsibility. LONG-TERM COLLABORATION WITH SELECTED PARTNERS
we test all materials at accredited laboratories of our choice. These tests are carried out one to three times a year using standardised methods. Materials used in a larger number of products are tested even more frequently. In 2022/23, we breached in the form of elevated levels of formaldehyde in a material used in one of our children’s gloves. As we have particularly stringent requirements for children’s products, we decided to change the material supplier for this particular model.
We mainly buy leather, wool and synthetics – and many of our suppliers have been with us for decades. We meet with them regularly and maintain an ongoing dialogue, both on-site at their factories and at trade shows. New materials and qualities are often developed in close collaboration with our business partners. In total, Hestra has around 90 suppliers worldwide of which 15 are tanneries that supply us with leather. The range of companies is wide, both in terms of size and cultural background. But they have one thing in common: The sense of quality and orderliness.
SUSTAINABLE LEATHER SOURCING We aim to source high quality leather with an appropriate sustainability performance. Leather tanning poses specific risks in terms of potential exposure to hazardous chemicals that can affect workers’ respiratory health. These chemicals can also affect local water quality, so we require all leather suppliers to have water treatment plants. We maintain close contact with our suppliers to ensure that we avoid exposure to these risks. This includes on-site visits and verification of the suppliers’ certifications. In 2022/2023, 69 percent of the leather supplied came from tanneries, certified by the Leather Working Group (LWG; read more on page 24).
CODE OF CONDUCT Although the relationship is based on trust, there is a systematic basis. Hestra’s Code of Conduct outlines our expectations towards our suppliers. The Code is based on the amfori BSCI Code of Conduct and refers to international conventions such as the Universal Declaration of Human Rights, the Rights of the Child, UN Guiding Principles for Business and Human Rights, OECD Guidelines, UN Global Compact and International Labour Organisation (ILO) Conventions. All business partners are asked to sign the Code of Conduct. Suppliers of leather and wool must also to commit to our animal welfare policy (page 24).
CHALLENGE OF COLLECTING CONSISTENT DATA Due to the big variety of our suppliers, it is difficult for us to collect consistent data on an ongoing basis, for example about the climate impact of the materials. Here, we are working on better routines. In the meantime reporting is tailored to each supplier’s circumstances. We systematically assess quality and delivery accuracy, supplemented by regular material testing at accredited laboratories.
MONITORING OUR CHEMICAL FOOTPRINT Subcontractors have to comply with the European chemicals legislation REACH and local laws in each country of production. Our Restricted Substances List (RSL) is compiled by the Swedish Chemicals Group and is updated twice a year and distributed to all suppliers. To check that they comply with the RSL, and to identify potential problems at an early stage,
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SOURCES & SUPPLIERS
Phasing out PFAS Hestra has been working for several years to phase out impregnations containing PFAS/PFCs, which can be harmful to humans, animals and the environment. On the textile side, we have been using a PFCfree alternative – Bionic Finish Eco (from Rudolf) – for most of our materials since 2013. Currently, there is one fabric with a PFC-based impregnation, GORE Infinium, which is used in parts of our crosscountry collection. We are in a continuous dialogue with GORE to find a more sustainable alternative. When it comes to leather, most of our materials are free from PFAS/PFC’s, and for models that require a water-repellent treatment we choose PFC-free alternatives whenever we can. However, as a natural material, leather is affected by chemicals in a variety of ways, and PFAS/PFC-free treatments have been shown to reduce elasticity and affect colour, among other things. This is why two of our tanneries still use PFAS/PFC-based treatments. We are working with suppliers and chemical experts to find alternatives.
LWG certification The main certification for tanneries is the Leather Working Group’s (LWG) audit certification, which assesses the environmental and social performance and compliance of tanneries. Hestra joined LWG in 2020 and we encourage suppliers to do the same. The proportion of leather purchased from LWG-certified suppliers increased from 20 percent in 2020 to 69 percent in 2022. A success that shows that our close partnerships in the supply chain can make an impact and contribute to a more sustainable leather industry.
The 5 Freedoms of Animal Welfare Hestra’s suppliers of leather and wool have to commit to our animal welfare policy, which is based on the internationally recognised “Five Freedoms of Animal Welfare”: Freedom from hunger and thirst: By easy access to fresh water and a diet to maintain full health and vigour.
Leather from LWG-audited tanneries
Freedom from discomfort: By providing an appropriate environment including shelter and a comfortable resting area. Freedom from pain, injury or disease: By prevention through rapid diagnosis and treatment.
60 % 20 %
20/21
21/22
Freedom to express normal behaviour: By providing sufficient space, proper facilities and company of the animal’s own kind. GOLD
Freedom from fear and distress: By ensuring conditions and treatment that avoid mental suffering.
57 %
LWG Certification Standards
All the leather we purchase is either byproducts from the food industry or sourced from wildlife conservation efforts.
43 %
SILVER
24
69 %
22/23
SOURCES & SUPPLIERS
Passion and curiosity make for sustainable textiles Hestra’s Italian supplier blends centuries-old craftsmanship with textile innovations. Wool has long been a hallmark, but the company began early on to develop technical materials with recycled ingredients.
”We have a systematic approach to working with sustainability in production.”
High quality materials, great functional properties and a good sense for responsibility in production – these have always been important criteria for Hestra when choosing suppliers. Our Italian textile manufacturer from Prato, Toscany, ticks all the boxes with the highest rating: Since its beginnings in the 1950s, the company has become world famous for its unique wool and fleece fabrics. “In Prato, we have been working with recycled wool for centuries. In the beginning, it was a way to make use of clothing and produce fine qualities at prices that many could afford”, explains Global Sales Manager Alessandro.
on biodegradable materials, technology that minimises microplastic waste and much more. In addition to innovations, the company has a systematic approach to working with sustainability in production. This is reflected in many certifications, covering everything from chemicals and energy usage to working conditions. “Many of our textiles are Bluesign and Oeko-tex certified”, says Chemical Manager Patrizia.
ON THE TEXTILE FRONTIER How do you build a successful European company in an industry characterised by fierce competition from low-cost countries? The answer is technical curiosity and a willingness to evolve. In Prato, they started early to use recycled materials in addition to wool. If you look at the company’s news feed today, you can read about collaborations
A HIGG EYE ON SOCIAL CONDITIONS Other important certifications include GRS (Global Recycled Standard) and ISO 14001. In addition, the HIGG Index measures social conditions in the workplace. “As a European company, we have long had strict regulations regarding wages, working environment, and safety at work – things that are not as obvious in other parts of the world”, explains Patrizia. In preparation for the 70th anniversary in 2022, a film was produced for the celebration. A proud image montage concluded with the words “That’s Amore.” Could it possibly be the company’s official slogan? “No, actually it’s not”, laughs Alessandro. “But it captures the feeling quite well here: It’s a good atmosphere, and many people have been working in the company for a long time. We have a strong passion for what we do.”
DEERSKIN WOOL TRICOT
25
26
PRODUCTION & LOGISTICS
Good gloves come from good workplaces Hestra operates five own factories and has a selected number of external manufacturing partners. We aim for the highest quality and ethical production standards for our gloves.
MANUFACTURING 75 PERCENT IN OWN FACTORIES
one in Cambodia, are members of the organisation and are regularly audited. Our aim is to achieve at least a B rating, which means that our factories in Hungary (A) and Vietnam (B) are exemplary, while the Chinese factories (C rated) still need some improvement. In 2022/23, 91 percent of our gloves were produced in factories audited by amfori BSCI and we aim to increase this percentage. Common areas for improvement include working hours, insurance coverage and social management systems. Some products are made in smaller factories or studios that may not currently have the resources to join amfori BSCI. However, these partners must still meet our supplier requirements. Visiting them regularly, we do also get a picture of the working conditions on-site.
Currently, we operate factories in Hungary, Vietnam, China and Cambodia. The latter was officially taken over at the end of 2022 and is now integrated into the business. It is in these countries that we find the knowledge, craftsmanship tradition and skilled people capable of sewing Hestra gloves to the high quality we are striving for. Owning our factories gives us greater control, facilitates production planning and helps us to build up and keep knowledge within the company. Another important aspect is that we are able to directly take influence on our environmental impact, working conditions and, of course, quality. This reduces our risk exposure, but it also presents challenges as each employee needs a stable workload. It is therefore ISO CERTIFICATION AND important for us to balance workloads ENVIRONMENTAL STANDARDS throughout the year and between factories. With our commitment to quality and In addition to our factories, we have environmental safety, it is only natural a limited network of selected external FALL LINE 5-FINGER that both our headquarter and Hestra’s manufacturing partners that account for factories are ISO 9001 and ISO 14001 certified. Environmental around 25 percent of our production. These relationships are stewardship and compliance are prerequisites for our characterised by long-term commitments. operations. Hestra adheres to the precautionary principle and we always stay abreast of changes in environmental legislation. IMPROVING SOCIAL PERFORMANCE WITH AMFORI BSCI Our membership of amfori BSCI is a crucial part of assessing social conditions, both within partner organisations and in our own factories. Amfori BSCI works to improve social performance in global supply chains and conduct comprehensive audits. All Hestra factories, except the new
The plan is to have the Cambodia factory both ISO certified and amfori BSCI audited when the production is up and running in a regular manner.
27
PRODUCTION & LOGISTICS
Own factories: A global family company HESTRA HUNGARY KFT - HUNGARY
EUROGANT UNIVERSAL LTD. - CHINA
Founded by Hestra in 2011 CEO: Krisztián Tenke Location: Rakamaz, Hungary Hestra’s share of ownership: 100% Current BSCI-rating: A ISO-certifications: 9001 and 14001 Number of employees: 98
Founded in 1993, Hestra holds a 50% stake CEO: Chao Chung Hsi Location: Guangdong, China Hestra’s share of ownership: 50% Current BSCI-rating: C ISO-certifications: 9001 and 14001 Number of employees: 81
The factory in Rakamaz, Hungary, was founded in 2011 by Hestra. The country has a strong tradition in crafting fine leather gloves and the factory is far ahead in its quality work. Roughly 100 skilled employees produce around 100,000 sports and dress gloves every year.
Hestra’s first factory abroad was established in 1993 in the Guang Zhou area near Hong Kong. Hestra Eurogant i known for its technical know-how. Approximately 80 experienced seamstresses and employees produce around 200,000 alpine ski gloves every year.
PINGHU, CHINA
HESTRA HUNGARY, HUNGRAY
HESTRA MATSOUKA, VIETNAM
EUROGANT, CHINA
HESTRA MATSUOKA VIETNAM - VIETNAM
ZHEJIANG PINGHU HUASHEN LEATHER CO., LTD - CHINA
Founded by Hestra in 2018 CEO: Teruhisa Yamamoto Location: Hai Phong, Vietnam Hestra’s share of ownership: 100% Current BSCI-rating: B ISO-certification: 9001 and 14001 Number of employees: 372
Founded in 1981, Hestra holds a 50% stake CEO: Zhang Gang Location: Shanghai, China Hestra’s share of ownership: 50% Current BSCI-rating: C ISO-certifications: 9001 and 14001 Number of employees: 129
The factory in northern Vietnam was inaugurated in 2018 and is one of the world’s most modern glove factories. Over 300 qualified employees manufacture more than one million fashion and technical sports gloves every year. The factory has an excellent training system for staff.
Pinghu was founded in 1981 and established a joint venture with Hestra in 2011. Located near Shanghai, the factory produces around 500,000 sports and fashion gloves every year. With a background in tanning, the factory contributes important expertise in materials and production techniques.
28
PRODUCTION & LOGISTICS
HESTRA CAMBODIA - CAMBODIA Founded: 2022 CEO: Mr. Hamamoto Tomoyuki Location: Phnom Penh, Cambodia Hestra´s share of ownership: 100% BSCI-audits planned for 2024 ISO-certifications: Planned Number of employees: 86
CAMBODIA - FROM HANDBAGS TO GLOVES Hestra’s newest factory since the turn of the year 2022/23 previously produced leather handbags. All employees were offered the opportunity to continue working. To ensure smooth knowledge transfer, experienced workers from our company in Vietnam trained their Cambodian colleagues in glove sewing. The Vietnamese team has also helped to start up and fine-tune the production. We expect to conduct a BSCI assessment in 2024. ISO certification is also planned, but the timeline has not yet been determined. The factory is located in an industrial park with good infrastructure, including transportation, functioning sewage and water treatment facilities and energy supply.
HESTRA CAMBODIA, CAMBODIA
HESTRA MATSUOKA VIETNAM HESTRA HUNGARY
HESTRA CAMBODIA
29
EUROGANT UNIVERSAL LTD. ZHEJIANG PINGHU HUASHEN LEATHER CO., LTD
PRODUCTION & LOGISTICS
91% of our gloves come from BSCI-audited factories 87 %
91 %
21/22
22/23
71 %
20/21
We can be safe that our gloves come from good workplaces with regular audits of working conditions and wages. In the last two years, the share of gloves produced in BSCI-certified factories has increased by 20 percent. In part because we produced more gloves in our own factories, and also because our business partners joined amfori BSCI.
Logistic challenges in 2022/2023
959
2020
CO2 emissions (tons)
Weight (tons)
471
2021 Air
2022 Ship
2020 Truck
2021
APRIL
MARCH
FEB
JAN
DEC
NOV
OCT
SEP
AUG
Our business has seasonal variations, with a big share of sales during the winter period. This can lead to overtime during certain periods of the year. To successfully meet demand, it is important that we plan our operations in the best way possible. That said, overtime is always voluntary. Employees receive full compensation according to their workload and working hours to ensure that their legitimate rights and interests are not infringed. When production levels are low, meanwhile, they can get extended annual leave with 80 percent salary.
829
379
JULY
MAY
Handling peaks and overtime
1374
1010
JUNE
2022 / 2023
Lockdowns and restrictions during the pandemic have led to a shortage of materials and difficulties in planning logistics and production, which was still a challenge in 2022. In addition, the war in Ukraine caused serious problems for train freights from Asia. The disruption has unfortunately led to a more extensive use of air freights and therefore higher emissions than planned. Another explanation for the increase of both weight and emission is that more comprehensive data was included in the statistics – which gives us a more realistic picture of our transport’s carbon footprint.
2022
Train
30
PRODUCTION & LOGISTICS
Stitching perfection into every glove Some of our finest dress gloves are produced by our partner in Hungary. The family-owned company preserves a tradition of glovemaking and works to pass on the knowledge to future generations.
János has saved a production order by a specialised waste management company using closed from September 1979, a reminder of containers, which we keep in a separate area of our premises”, his first contacts with Hestra and says János. the Magnusson family. At that time, High energy prices have been a challenge recently, and the he was employed at the renowned company will soon have their own solar panels installed. Once Pécs Glove and this is in place, they will only need to purchase Leatherwork a very small amount of electricity. Industrial PASSING ON SKILLS TO THE NEXT Cooperative, located in Pécs, southwestern Hungary. Gloves GENERATION from Pécs carry a strong heritage of gloveThe manufacturing is carried out by around making in Hungary. 70 highly skilled workers who master all the In 2004, János started his own company intricate techniques required for crafting fine which he today runs together with his spouse dress gloves. Unfortunately, the workforce and two sons. A few years ago, he and Hestra is ageing, making it increasingly difficult to reestablished the contact, initiating a new sustain access to specialised competence. collaboration: Consequently, Bene is actively engaged “Some gloves require the best craftsmen, in diverse initiatives aimed at training and HAIRSHEEP 2 BT HANDSEWN specific manual skills and machinery”, says nurturing a new generation of glove makers. CASHMERE LADIES’ Anton Magnusson, managing director of ”In 2022, we established a sewing workshop Hestra. ”János and his team have a unique with nine seamstresses in a small town in competence that makes them a strong and important partner southern Hungary, workers who had never made gloves before. for us. 20-30 percent of our gloves are produced by external Additionally, we collaborate with other glove companies to suppliers with specific qualities.” revive the official glove maker training, which has been absent for many, many years”, says János.
A TRUE FAMILY BUSINESS It is hardly any exaggeration that János’ family lives off and with glove manufacturing, to such an extent that János himself resides in one of the buildings comprising their production facilities. The working environment is small-scale and pleasant, with gardens planted in the surrounding courtyard. The company has committed to Hestra’s Code of Conduct and meets the requirements set by amfori BSCI, although it is too small to become a full-fledged member. As a contract manufacturer, the company has no operations that require specific environmental precautions. “Hestra and our other clients provide us with leather and other materials. Any waste and garbage are regularly collected
GOOD OLD GLOVE MEMORIES Hestra production order for dress gloves from Hungary – dated year 1979.
31
32
SALES & COMMUNICATION
Guiding people to the right gloves Hestra’s gloves are available in over 40 countries worldwide, sold via a network of selected retailers, own concept stores and online sales. Our sales strategy is based on personal relationships, continuity and transparent communication.
SALES ORGANISATION BUILT ON PERSONAL RELATIONSHIPS
OWN STORES TO OFFER CUSTOMERS KNOWLEDGE AND PERSONAL SERVICES
When it comes to retailers and distributors, the key to a sustainable sales organisation is to maintain long-term relationships based on trust, reliability and personal contact. We work with our own representatives in Sweden, Norway, Denmark, Germany and the USA, as well as appointed local agents in all relevant countries. Face-to-face meetings at trade fairs, in our showrooms or during personal visits are important for understanding the local market and the stores’ customers.
Hestra operates its own concept stores in Stockholm (Sweden), Oslo (Norway), Gothenburg (Sweden) and Copenhagen (Denmark). These give us the opportunity to showcase our wide range, but also to interact with our customers face to face. This is where we offer glove expertise: Helping customers make the right choice, giving care and other advice, or finding the right replaceable liners. We deal with damaged gloves, carry out minor repairs on site (where possible) or send them to one of our repair centres. Direct contact in the shops also helps us to understand customers’ needs and get direct feedback on our products.
LARGE NUMBER OF CARRY-OVERS AND STABLE PRICES
Eight out of ten models in Hestra’s E-COM: TRANSPARENCY AND range is carried over to the next season GUIDANCE and no more than 2-3 new colours are HELI SKI LINER Online sales continue to grow. With our introduced each year. e-commerce platform, we aim to provide At the same time, we avoid taking part guidance and clear information on each product, including in initiatives that promote excess-consumption. For example facts about the materials and the factory where it is made, Hesta does not participate in discount-driven sales events like care instructions and clarification on which replacement liners Black Friday. Instead, we aim to guide our customers to gloves are suitable for which products. This transparency helps our that they really need – or convince them to buy replaceable customers to make the right choices, reducing the number of liners to extend the life of the gloves. This gives retailers a high returns and extending the life of their gloves. The principle of degree of stability and continuity, making it sensible to stock a not promoting excess-consumption also applies to our own glove for next season rather than sell it at a lower price just to stores and Hestra’s e-business. replace it with a new model a few months later.
33
SALES & COMMUNICATION
Warming donations The packaging challenge
Since 2020, we have partnered with Sweden for UNHCR to donate gloves to refugee children. In 2022/23, Hestra delivered around 4,000 pairs to UNHCR and local charities. We also made a cash donation to Sweden for UNHCR to support their important work Our factory in Hungary, close to the Ukrainian border, organised temporary accommodation for displaced refugee families at the start of the war. The factory warehouse also acted as a regional collection point for donations, which were then delivered to aid organisations at the border.
We always strive to minimise packaging materials. In the spring of 2022, we switched from cardboard boxes to FSC-certified paper bags for shipping orders from our online store. Bags take up less space in the post and avoid ”transportation of air”. We also reuse boxes used for transport between factories, warehouses and stores as much as possible. In 2022, we switched to thinner bags made from recycled and recyclable LDPE plastic to reduce plastic. But at just 0.03 millimetres thick, the new material proved difficult to handle: It cracked and stuck together, resulting in many bags being thrown away. When we went up to 0.04 millimetres, the bags worked properly. Now we are reducing less plastic than originally planned. But the new bags are made from recycled polyester, which is also recyclable.
Sales training for better customer guidance Together with our retailers, we regularly organise clinics to train store staff to guide consumers to the right product. We believe this helps to reduce the risk of incorrect purchases and the risk of the end customer needing to buy a different product at a later date. During these training sessions, we emphasise the idea of removable liners and how to care for gloves to prolong the products’ life.
WARMTH
DURABILITY
MOBILITY
WATERPROOF NO
More transparency online A new system of symbols makes it easier to find ARMY LEATHER HELI SKI gloves with the right properties in our e-store. In 2022/23, we improved product texts and material information to help people make the right choice.
34
SALES & COMMUNICATION
A mono-malistic pioneer What happens if you take a legendary glove and manufacture it as sustainably as possible? Meet Mono Wool, which received a sustainability award at the ISPO trade fair last winter.
MONO WOOL
It all started with a very durable fabric: The Triton polyamide weave has been used in Hestra’s Heli Ski gloves for over 25 years, but for all this time, Hestra’s design manager Marianne Knutsson-Hall had never seen it wear out. “Wouldn’t that be a good starting point for a new recycled material?“ she asked herself, and ordered a sample roll
monochrome expression that makes it stand out from the crowd. A conscious choice, according to the design manager, as it eliminates the need for dyeing processes. “At the same time, the monochromatic look signals that this glove is a different breed.” At the ISPO Outdoor Show in Munich in February 2023, the Mono Glove was presented with a Scandinavian Outdoor Award for its sustainable design. As a “mother” of the glove, Marianne Knutsson-Hall says she feels incredibly proud. “Now that we know that the recycled fabric is just as durable as the original weave, we will start introducing recycled polyamide for other models as well”, says Marianne. Mono Wool will be launched just in time for the upcoming winter season 2023/24.
from the factory. The sample was tested and proved its worth, and so the idea was born to create a version of the classic Army Leather Heli Ski model in which every single part was produced as sustainably as possible. The palm was kept in natural, undyed colour. A chromiumfree goat leather from one of Hestra’s LWG Gold certified tanneries was used. For insulation: A replaceable liner made from un-dyed wool. The trickiest part was the details: The small plastic parts that make up the drawcord and wrist adjustment. It took a while for the manufacturer to prepare moulds that hold for recycled nylon. The more sustainable “recipe” gives the new glove a
The mono-chromatic look is intentional: it signals that the glove is a different breed.
35
36
ANNETTE LIDÉN, REPAIRS HESTRA HQ
CARE & REPAIR
Long live the glove Quality in the form of durable materials, good design and workmanship is a prerequisite for the longevity of our gloves. But how you care for them is as important. We strive to prolong product life with care advice, repair services and replaceable liners.
MAKING IT EASY TO TAKE CARE OF GLOVES
Even for fashion gloves, a worn-out liner can be replaced. In our concept stores in Stockholm and Gothenburg and in our headquarters in Hestra, we have seamstresses who can sew in a new liner, sometimes while the customer is waiting. In other concept stores and at our retailers, gloves can be handed in for a liner replacement.
Many of the materials Hestra works with are naturally durable. But weather and wear can dull seams or treatments and dry out leather. We therefore provide clear instructions for our customers on how to treat and wash their different types of gloves or how to replace liners. Guides and tutorials can be found on our website. During 2022, we have conducted a large number of clinics with store staff to emphasise the importance of glove care and provide training on replaceable liners (see box on page 38). For outdoor leather gloves, we often include a tube of our own leather balm with each pair of gloves. A simple giveaway that highlights the importance of glove care to extend product life.
HESTRA REPAIR CENTRES AND WARRANTY
Hestra offers a three year guarantee on all gloves. If a glove breaks during this time due to a manufacturing fault, we will repair it free of charge. We also offer a repair service after the warranty period, usually for a reasonable fee. Many repairs are carried out at our repair centre in Hestra. Gloves with technical materials - such as membranes or REPLACEABLE LINERS PROLONG heated gloves - are sent to the repair THE GLOVE’S LIFETIME centre at our Hungarian factory. One of our key sustainability efforts is Here, we have specialised equipment replaceable liners, and we continue to for opening, re-taping seams and increase the number of replaceable replacing electronics in heating coils, liner models in our range. With for example. replaceable liners, the user can easily Today, we repair between 400replace a worn liner and also vary the WAKAYAMA 5-FINGER: FROM A FIXED LINER TO A 500 gloves a year in the Hestra insulation of the glove for different REPLACEABLE ONE FOR LONGER LIFETIME. repair centre alone. The demand for activities and temperatures. This repairs is increasing, which we see as a sign that our users are extends both durability and functionality, resulting in fewer becoming more aware and that more people are moving away gloves being purchased (and manufactured). In 2022/23, 44 from a ”use and throw” attitude. percent of our sport gloves had replaceable liners (mainly in We want to expand our repair service in the future and our Alpine Pro and Outdoor collections) and we sold 28,000 market it more explicitly than we do today. Our ambition is to liners. We strive to increase this percentage, but it is difficult make more people aware of the opportunity to extend the life to fit a replaceable liner in a close-fitting design without of their gloves. compromising precision and feel.
37
CARE & REPAIR
44.2% Selling many linings rather than one more glove Hestra started selling replaceable inner gloves in 1980. In 2022/23, 44.2% of our sport models can be equipped with a new liner when the old one is damaged or has lost its insulating properties. This is the best way to extend the life of a glove.
Take care! There is no point in making durable gloves if our users don’t know how to look after them. Gloves that are dried at high temperatures risk cracking. Or, they can start to smell and mould if you do not hang and dry them properly. Leather exposed to the elements becomes brittle over time. That’s why we have put a lot of effort into educating our users, store staff and retailers about glove care. We have published the Glove Guide in print form for many years and now offer it digitally on our website. Simple instructions that extend the life of our gloves, a little love and care is something everyone should give. Especially a good glove.
27.989 18.091
20/21
21.579
21/22
22/23
A SUSTAINABILITY BESTSELLER: NUMBER OF SOLD REPLACEABLE LINERS INCREASES YEAR AFTER YEAR.
Our repair centres Rakamaz, Hungary: Is equipped to handle all types of repairs, including those that require opening up the entire glove and working with technical materials. It also has special equipment for repairing membrane gloves and heated gloves. It currently processes 136 gloves per year. Hestra, Sweden: Specialises in handling simpler repairs such as sewing undone seams and repairing holes and damages in materials. The repair centre currently processes 400-500 gloves per year. Stockholm/Gothenburg, Sweden: In our concept stores in Stockholm and Gothenburg smaller repairs and liner replacements can be fixed on site.
38
CARE & REPAIR
Reclaiming glove glory There is hope for broken and worn-out gloves. Hestra’s Repair Centres can fix most items, including gloves that many would consider beyond repair. Annette Lidén takes care of several hundred pairs every year.
”Many people appreciate being able to continue using a trusted companion.”
“We repair everything that can be repaired. And most gloves can, even those that seem very bad”, says Annette Lidén, who works at Hestra’s central warehouse in Sweden where she has a combined position that also repairs gloves. Every year, several hundred pairs pass through her nimble fingers. ”I do a lot of hand sewing. For leather dress gloves where the seams have come undone, I simply use the existing stitching holes and sew them back together”, she says. And when there are holes in the fabric itself, she simply sews a patch on. ”We have access to all the materials here. The repair may not be invisible, but the glove becomes whole again. And many people appreciate being able to continue using a trusted companion.”
years, and the glove was really worn out, with broken seams and torn fingers. But, the customer still wanted to have it repaired, partly because the glove had been on so many adventures that it held emotional value. And partly because the customer wanted to preserve what still functioned. ”At first glance, you might have thought that this particular glove was beyond repair, but the Repair Centre in Hungary replaced the damaged sections and stitched the glove back together again.”
FROM BADLY BROKEN TO STRONG AND FUNCTIONAL
FINDS PLEASURE IN THE TASK AT HAND
Annette tells the story of a Heli Ski glove her colleagues in Hungary received from a customer. It had been in use for 25
Annette pulls up a picture of another repair. The glove had been forgotten on a stove, melting parts of the fabric and burning the leather. In the accompanying email, the customer described how the gloves had belonged to his late father and had sentimental value. She replaced the leather in the burned areas and the glove was ready for new adventures. ”It’s a great feeling when you see how happy the customer is. Usually, the price is not an issue either; people want to continue using their gloves.”
EVERY REPAIR IS UNIQUE. WITH NEW LEATHER ON THE PALM AND FIXED SEAMS, A FAITHFUL COMPANION IS READY FOR SEVERAL MORE YEARS OF ADVENTURE.
39
SUSTAINABILITY RISKS – OVERVIEW
Managing sustainability risks Sustainability risks are business risks. This matrix provides an overview of sustainability related risks. It shows areas and impacts on the company – as well as the policies, guidance documents, monitoring and working routines to handle the different risks.
LEVEL OF RISK
CARE & REPAIR
SALES & MARKETING
PRODUCTION & LOGISTICS
MANAGING THE RISK
Including policies/guidance documents and review/monitoring
Start from the company’s value chain
SOURCES & SUPPLIERS
Short description of the risk
WHERE DOES THE RISK IMPACT?
COLLEAGUES (INTERNAL)
Based on the different areas of legal requirements
DESCRIPTION OF THE RISK
DESIGN & MATERIAL
RISK AREA
ENVIRONMENT & CLIMATE Potential harm to the environment/ human beings from harmful chemicals, e.g. due to poor chemical management and/or insufficient wastewater treatment, which may affect local water quality.
x
x
x
x
HIGH
CHEMICALS
Systematic method for supplier assessment, members of amfori BSCI, sets requirements in terms of REACH + local legislation, self-assessment form for new suppliers, updating/sending of updated RSL and renewed chemical contracts (2 times/year), review of certificates etc., various test methods for testing materials in laboratories (1-3 times/year depending on quantity), procedures if RSL is violated, site visits. Onsite water treatment plant, tools for risk assessment of health and safety risks related to chemicals. Policy/guidance document: Environmental policy, RSL (Restricted Substances List) covered by REACH, Chemicals Contract, Code of Conduct, Animal Welfare Policy, precautionary principle applied. Are certified according to ISO 14001.
x
x
x
x
Other risks related to transport/ freight are logistics disruptions in the form of container shortages, pricing, capacity.
CLIMATE CHANGE
Negative impact on our business due to climate change and its consequences.
SERIOUS EVENTS SUCH AS FIRES, NATURAL DISASTERS, ETC.
Can lead to a lack of production capacity in our factories and independent producers.
x
x
x
MODERATE
GANTT schedule to ensure that all deadlines are met, as well as ongoing contact with freight companies and with factories, and timely booking of shipments.
MEANS
Seasonal products affect the possibility of completely abandoning air transport; the Ukraine war has also reduced the possibility of transport by train. Leads to increased climateimpacting emissions from transport.
MEANS
TRANSPORT
We currently monitor the transport of gloves through emission reports received from our freight forwarders. Policy/guidance documents: Environmental policy, when planning deliveries, ship is the first choice.
Work to review the impact of climate change on our activities will be reviewed in the coming years.
Having several factories in different countries reduces risk. Have safety stocks in case something happens. Health and Safety is included in amfori BSCI audits, so this is an ongoing process. Fire protection routines and training initiatives both in the office and in the factories.
VIOLATIONS OF HUMAN RIGHTS
Risk of poor protection of workers' rights in production countries (e.g. migrant workers exploited in some way due to their vulnerability). Risk of discrimination, child labour or sexual harassment
x
x
x
HIGH
HUMAN RIGHTS Members of amfori BSCI, regular audits at the factories, systematic work with other suppliers based on the Code of Conduct. Owning our factories gives us greater control and the opportunity to influence aspects such as environmental impact, labour conditions and human rights. Policy/guidance documents: Code of Conduct
40
SUSTAINABILITY RISKS – OVERVIEW
LEVEL OF RISK
CARE & REPAIR
SALES & MARKETING
PRODUCTION & LOGISTICS
MANAGING THE RISK
Including policies/guidance documents and review/monitoring
Start from the company’s value chain
SOURCES & SUPPLIERS
Short description of the risk
WHERE DOES THE RISK IMPACT?
COLLEAGUES (INTERNAL)
Based on the different areas of legal requirements
DESCRIPTION OF THE RISK
DESIGN & MATERIAL
RISK AREA
WORK ENVIRONMENT (PHYSICAL AND MENTAL HEALTH)
Risk of incidents and accidents, especially in production, but also of mental health problems among employees due to stress/high workload.
x
X
MEANS
STAFF HR manager appointed, clear job descriptions, leadership training, procedures for incidents and accidents in the operating system. Annual safety rounds where risks are identified and action plans are developed, followed up at management level, employee interviews, health checks on new employment and every 3 years. Policy/guidance documents: Work environment policy, staff handbook, equality policy, alcohol and drug policy, victimisation and harassment policy. Risk of overtime during certain periods.
x
HIGH
OVERTIME IN OUR FACTORIES
Planning our activities in the best possible way to avoid unnecessary peaks and long periods of overtime, regular dialogue between the purchasing department and the factories. Policy/guidance documents: Code of Conduct and audits by amfori BSCI
Difficulties in retaining and recruiting staff with the right skills.
x
x
MEANS
LACK OF SKILLS
In all countries, Hestra factories have established their own procedures to maintain a sense of belonging among staff. Benefits: Social insurance, performance bonuses, lunches, family days and excursions. Training for new employees. Regular training on work environment, health and safety, labour law conditions, amfori BSCI etc.), salaries in line with or above national minimum wages. At Hesta HQ, annual performance reviews are conducted to plan employees’ work and development, individual goals monitored and revised.
CORRUPTION
As we operate in several highrisk countries, there is a risk of corruption through, for example, giving/taking bribes. There is also a risk of corruption when establishing new factories, e.g. during the authorisation process.
x
X
X
HIGH
ANTI-CORRUPTION Members of amfori BSCI, systematic work with suppliers based on requirements and regular audits at the factories. Regular meetings with suppliers, on-site visits. Establishment of new factories in close co-operation with Business Sweden and the Swedish Embassy. Policy/guidance document: Code of Conduct, Guidelines on Gifts and Hospitality are included in the Staff Handbook. Whistleblowing policy for EU operations is being developed.
LEGAL AND CUSTOMER REQUIREMENTS
Due to rapid developments in the field of sustainability, there is a risk of missing legislative updates and stakeholder requirements and thus not meeting requirements/ expectations.
MENAS
OTHER
x
Law monitoring. The business system manager updates the legal list and keeps management informed of sustainability risks. Members of the Swedish Chemicals Group to follow developments in chemicals legislation. Hestra HQ is ISO certified according to ISO 9001 and 14001, the factories have their own certifications.
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ABOUT THE REPORT
Auditor’s report on the statutory sustainability report THE SCOPE OF THE AUDIT
To the general meeting of the shareholders in HESTRAHandsken AB, corporate identity number 556633-9668.
Our examination has been conducted in accordance with FAR’s auditing standard RevR12 The auditor’s opinion regarding the statutory report. This means that our examination of the statutory sustainability report is substantially different and less in scope than an audit conducted in accordance with International Standards on Auditing and generally accepted auditing standards in Sweden. We believe that the examination has provided us with sufficient basis for our opinion.
ENGAGEMENT AND RESPONSIBILITY It is the board of directors who is responsible for the statutory sustainability report for the financial year 1 May 2022–30 April 2023 and that it has been prepared in accordance with the Annual Accounts Act.
OPINION
PHOTOGRAPHERS:
A statutory sustainability report has been prepared.
Kent Malm, Azan Volunteers/UNHCR and others.
Jönköping, 21 September 2023 Öhrlings PricewaterhouseCoopers AB
Daniel Janson Lützen Authorized Public Accountant
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ABOUT THE REPORT
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Äspåsvägen 5, 335 71 Hestra Sweden +46 370 33 97 00 - hestragloves.com