corporate responsibility corporate responsibility corporate responsibility The Scandinavian Fashion House J.Lindeberg was founded in Stockholm 1996 with the vision to build an international brand for modern and aware consumers. The company bridges fashion and function, offering outstanding products for a modern active lifestyle. The collections consist of menswear and womenswear offering fashion, tailoring, actve, golf and skiwear. The fashion collections are presented at the international fashion weeks in e.g. New York, Beijing, London and Stockholm—the sportswear collections are worn by some of the world’s best athletes. Today distribution covers more than 35 countries, and there are close to 90 J.Lindeberg stores and 35 shop-in-shops in e.g. Stockholm, Copenhagen, Oslo, Munich, New York, Miami, Tokyo, Hong Kong, Beijing, and Shanghai. J.Lindeberg is sold in over 900 stores, including the leading high-end department and specialty stores around the world. The company is headquartered in Stockholm, Sweden.
corporate responsibility
Summary 2018 05 J.Lindeberg 07 Transparency 08 It’s in the Details 11 Traceability 12 Suppliers & Working Conditions 14 Environmental Impact 16 Transportation 19 Behind the Scenes 20 People 23 Staff Interviews 24 Engagement Surveys 27 Diverse Casting 28 Why Policies? 31 Risks Related to Sustainability 32
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We welcome you to take part of this summary of J.Lindeberg’s corporate responsibility work of 2018. Our ambition is that this information will bring a new perspective to our company and brand; how we develop towards sustainability and contribute to positive change. We act in a global world and need to take global responsibility.
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summary 2018 EFFORTS ARE MADE VISIBLE
action is more important than ever and we are determined to continue doing what we can. What an important year! If 2017 was the year for understanding and documenting, 2018 has been the year when actions have started moving and some of our efforts are made visible to our community and customers.
to engage in a community that has very deep knowledge in Climate change and action: 1 % for the Planet. It will mean a lot to J.Lindeberg to have access to this network of specialists and directly help fund climate research.
We have been working according to our focus areas:
None of the actions we are taking to improve within the scope of Climate and Corporate Responsibility would be possible if we wouldn’t safeguard and continuously develop the transparency of our supply chain or the traceability of fibres and fabrics. Why this focus area will always be important in our industry and for us.
• Traceability & Transparency • Act to reduce our climate impact • Work for Equality & Diversity
For J.Lindeberg, having named Climate as one of three focus areas in our Corporate Responsibility Strategy two years ago, action is more important than ever and we are determined to continue doing what we can to take responsibility in our operations and also our products. Specifically, this means continuing phasing out hazardous chemicals and treatments, bringing in more sustainable fabrics in our products with less environmental footprint, digging into how we transport our goods and planning to avoid air freight but still deliver in time. More than that we also decided
Diversity is an important ingredient in the JL Brand, during 2018 the focus specifically has been on making sure that it is visible to the world, not only in our offices. Our Fashion shows and imagery all reflect the fantastic diversity this world is built on. For 2019 we are looking forward to bring more science into our Corporate Sustainability world, to make sure we can show even more facts and figures on how our choices really make a difference.
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j.lindeberg THE COMPANY
The Scandinavian Fashion House J.Lindeberg was founded in Stockholm 1996 with a vision to build an international brand for the modern, aware and active consumer. The company caters to a fast-paced lifestyle, looking into future needs and greatly emphasizing quality, fashion and functionality. The collections consist of menswear and womenswear offering fashion, tailoring, active, golf and skiwear. The fashion collections are found at prestigious international fashion weeks across the world and the sportswear collections are worn by some of the world’s best athletes. Today, distribution covers more than 35 countries and there are close to 90 J.Lindeberg stores and 35 shop-in-shops in cities such as Stockholm, Copenhagen, Oslo, Munich, New York, Miami, Tokyo, Hong Kong, Beijing, and Shanghai. The brand is currently sold in over 900 stores, including leading high-end department stores around the world. We keep our spirit and headquarters in Stockholm and our heritage is consistently present in our keen focus on details and quality. During 2017 J.Lindeberg produced in 18 countries. This sustainability report refers to J.Lindeberg AB. It is based on the fiscal year 2018 and the collections of 2018. The report is made according to the regulations of ÅRL 6e kapitel.
CONSUMERS
CONSUMERS
CONSUMERS
CUSTOMER SERVICE MARKETING
WHOLESALE
DISTRIBUTORS
RETAIL
LOGISTICS PRODUCTION & BUYING
ECOM
CUSTOMER FACING FUNCTIONS
CREATIOn & FULFILLMENT FUNCTIONS
DESIGN FINANCE – HR – IT
SUPPORT FUNCTIONS
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transparency A PRECONDITION FOR CHANGE
The majority of our main fabrics comes from nominated suppliers who we know well and have established relationships with. We are stearing our sourcing to suppliers who have an established way of working to secure safe and harmless use of chemicals;
Ökotex-certified – specially in the fashion concepts of our business. In sports concepts we are stearing sourcing to suppliers who are Bluesign certified, a global standard for sustainability in production processes, during 2018 the figures have increased in the following way:
20,0% 19,0% 18,0% 17,0% 16,0% 15,0% 14,0% 13,0% 12,0% 11,0% 10,0% 9,0% 8,0% 7,0% 6,0% 5,0% 4,0% 3,0% 2,0% 1,0%
Share of Bluesign certified suppliers
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20 18
20 17
20 18
20 17
0,0%
Share of Ökotex certified suppliers
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Transparency
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Corporate Responsibility Transparency
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it’s in the details LABELS AND THREADS
It is not only the main fabrics that are of importance to J.Lindeberg, we also care much about the details and trims that are essentials part of the product. LABELS Labels are an important part of the brand identity and we have chosen to gradually switch to labels made with 50 % recycled polyester.
20 % percent of our labels during 2018 are made with recycled polyester.
THREADS If a product breaks at the seam it is very likely that the wrong thread has been used. Threads might be the smallest part of a product but if they are bad it has a big impact. JL chose a nominated supplier for threads that helps us choose the right quality for the right product and fabric. At the same time the thread is chemically sound, the production and product is
Ökotex 100 certified and the production and working conditions well controlled to ensure wages are fair and production is safe. There are products for which we are not using the nominated supplier and the reason why is production might be too far away from the sewing factory. In functional wear we have developed our own thread for maximum functionality.
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traceability FACTORIES AND FIBRES
Traceability can be divided into two main areas for us;
SOWING FACTORIES
JL implemented a mid code system beginning of 2018, where each sowing unit has a unique code. This code follows the goods from sowing through the distribution chain via invoices and our own IT-system. This has increased our control over where products are produced although that can never be checked enough.
FIBRES
For Animal Welfare reasons, animal fibres has been the first priority when it comes to full traceability. All merino wool in knitwear is certified mulesing free. Our leather is traceable to the tannery, in special cases we have longer traceability. 100 % of our down is traceable to the farm and made visible to our consumers.
2018 – MOHAIR
A lot of work has been put into securing the Mohair chain as much as we possibly can. We have taken great steps in the right direction by working together with other brands, yarn suppliers and mohair associations. We don’t have full traceability yet but we have narrowed down the number of farms where our yarn suppliers buy the Mohair from in order to reduce risk that animals are not treated according to international legislation. Work is ongoing and we are in many cases choosing other fibres instead of Mohair with better traceability, but we want to be part of solving the Mohair traceability.
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Traceability
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Corporate Responsibility Suppliers & working conditions
Production countries 2018
25,00%
20,00%
15,00%
10,00%
5,00%
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LA TV IA
IND IA RO MA NIA HO NG KO NG AL BA NIA ES TO NIA SW ED EN SW ITZ ER LA ND
LY CR OA TIA BU LG AR IA LIT HU AN IA
ITA
IA NIS
L
TU
GA
Y
RT U
RK E
PO
TU
VIE
TA IW AN
INA CH
TN AM
0,00%
15
Corporate Responsibility
suppliers & working conditions SECURE WORKING CONDITIONS
SUPPLIERS AND WORKING CONDITIONS:
It is important to highlight that we actively choose not to work with certain countries where we do not have the capacity to secure working conditions. Our main focus is
Europe, China, Vietnam and Taiwan. It is not risk-free and it takes hard work to control that production and we assess the risks through regular visits and auditing.
2018 HIGHLIGHTS Stopped production in Philippines Stopped cooperation with one supplier where we saw risk in China. Started working with a supplier in India. Working conditions are well monitored, the supplier is certified by SA8000, the most credible certification globally to secure working conditions.
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environmental impact FACTORIES AND FIBRES
Design & Product Development
Production
Raw material
Reuse and recycling
Sales
Transportation
Use
RAW MATERIALS
COTTONIZED
ORGANIC
Comes from nature: Cottonized by Isko contains of lyocell and ryon are made from wood based cellulosic fibres.
Our organic cotton is certified Organic Content Standard and the fabric supplier we are buying from is using 3 % organic cotton in all denim fabric without adding extra cost to help increase the use and awareness of organic cotton. Minimums of Organic cotton are often high which can make it difficult to fully switch if volumes don’t match. In 2018 we changed to Organic Cotton in our best-selling Denim program.
Cotton in general, even if moving into organic is a raw material that requires a lot of resources. We want to explore how an alternative to cotton could be and found Cottonized by Isko. We introduced it in our women’s denim collection in 2018.
Lenzing Tencel (lyocell) comes from eucalyptus trees that are grown on farms that are FSC certified, meaning that the product comes from socially and environmentally responsible forests.
RECYCLED WOOL
We are increasing our post production recycled wool from Italy in our outerwear collection. The fabric has been a fundamental part of our iconic styles for many years and we continue to build on it.
20 17
15%
4 % of our cotton is organic 2018
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22%
20 18
We are increasing our share of more sustainable fabrics season by season. What is a more sustainable fabric? Our fabric strategy is based on where we can make the biggest difference in terms of chemical use in the process, reduce the use of virgin manmade fibres in favor for recycled fibers and increased traceability.
Post production Cardato certified recycled wool
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Environmental impact
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Corporate Responsibility Transportation
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transportation AIR / BOAT / TRUCK
In 2018 our share of air freight increased. One reason is the increase of our Sports segment where the majority of the production is in Asia.
For 2019 we are looking into combinations of Sea-Air and Train as alternatives to Air freight to reduce our CO2 emissions from transportation.
TRANSPORTATION OF GOODS 2018
Air
Boat
Truck
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behind the scenes FACTORIES AND FIBRES
Even if most of our brand’s footprint and responsibility lies within the production and distribution of our products, we take steps in other departments as well. In one way it is easier since we control it ourselves, on the other hand it is more difficult as it might force us to change behavior. But that is the core of sustainability given where we are today, we need to change – even if it is only tiny steps in the right direction of being careful about resources and changing the given way to act. PACKAGING
IT & FINANCE
STORES We launched new paper bags for stores in April 2018, JL plastic bags are used for outlets and sales and are made from recycled plastic with European origin.
Recycling of technical equipment
We don’t want to take more than we give. This is why our packaging in stores is branded with Återbära, it is a product branding for 100 % climate neutral packaging. It means we are climate compensating for the emissions generated throughout the entire life cycle of our paper bags, plastic bags, silk paper and labels. From raw material to delivery at our stores. The compensation is made through certified tree planting which contributes to a more sustainable forestry and local society in Vegachi, Colombia.
E-COMMERCE E-commerce packaging is changed from virgin plastic to recycled plastic with European origin as of 2018. PACKAGING FROM SUPPLIERS We are making a trial project with one of our most important European suppliers to take away plastic poly bags on samples and prototypes as well as introducing biodegradable poly bags. If the trial works out well and without risking damage to the products during transportation we will carry out the project to other European suppliers first hand.
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Implementation of e-invoicing globally during 2018
RENEWABLE ENERGY We run on renewable energy in office and own stores (hydropower).
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Behind the scenes
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Corporate Responsibility People
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people
JL STAFF IN FIGURES
For every success and progress made we thank our colleagues. For us, being a good employer means offering a flat organization with a prestigeless mentality where we believe in the concept of responsible freedom. We cherish values
based on common sense, honesty, reliability and credibility. With this in mind we are creating an entrepreneurial, active culture with a lot of opportunities to learn and grow.
Number of employees Number of employees HQ: 95 (incl 6 fulltime consultants) Number of empl retail: 91 Tot: 186 Men/women HQ (67% women/33 % men) Men/women retail (49 % women/51% men) Average age Average age HQ: 33,9 > 2017 33,3 years Average age retail: 24,5 Tot: 29,2 years Gender balance Middle Managers: 50 % women, 50% men Management team: 8 % women, 92% men Non Swedish speakers 8,5 % 2018 (10 % 2017 and 6 % 2016)
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STAFF INTERVIEWS OUR EMPLOYEES’ OPINIONS
LINNEA LARSSON-STATTIN HR Manager Joinded JL 2014
FERDI SAJHADI Tf Operations Manager Retail and Sales Coach Joined JL in 2012
What is the most important task of a HR Manager? For me it is to work for a high engagement, a low staff turn over and longterm development for JL as company and all individuals.
What is your JL background? Johan Lindeberg has been an inspiration for me all since his time at Diesel so when the store in Väla was about to open I got the opportunity to join and I completely fell in love with the brand. I sincerely felt that I wanted to be part of this brand and be part of and help out on the journey ahead. I spent 4 fantastic years at Väla, after I got an opportunity to run the store at Åhléns. The most important part of my job as store manager was to inspire and develop the team and I got the opportunity to do so on a broader scale and join the HQ team as Sales Coach. From November 1st I will cover for Jessica during her maternity leave as Operations Manager and Sales Coach combined.
Is there something that specifically makes you proud of representing JL as employer? I am very proud to represent a company where we are good at giving individuals great responsibilities and room to develop and grow. And that all colleagues are so focused on moving forward. Not to mention our products! That was three, and I could give many more. What is highest priority on your agenda for 2019? Continue to improve the collaboration between departments and work for a more clear direction. Onboarding of new joiners will be important and improve our information sharing is also a top priority. Average age at JL is quite low, but have increased slightly since 2017, do you have a comment to that? The development is according to plan. During 2018 we have recruited more senior staff which we are happy about but we very much want to keep the young energy we have in the company so it is a balance. It is not about age really, more a way of being. To enjoy JL as working place it is an advantage to be flexible and prestige-less. We all have a can do attitude and are eager to move forward. Favourite garment from JL? I love outerwear generally and J.Lindeberg outerwear specifically – everything from our down jackets to denim jackets. I appreciate our Sportswear as well, functionality is fantastic and it makes you feel good.
In your role you are bridging Stores and HQ what is the biggest challenge and possibilities in that? We need to be more clear in how we communicate. I think it is important to understand and clarify why we do what and where and I hope that my background in retail combined with the insights in HQ processes will be useful for that. I also try to bring in the fantastic energy from the stores into an office environment. Can you see an increased curiosity/demand from our customers related to sustainability? Definitely, it is an increased interest from the end consumer to understand how our products are made and every piece of information we can add about the product is very appreciated. Regardless if we talk about company initiatives, facts about the fabrics or increased gender equality plan at a denim factory, it strengthens the connection with our brand and shows how serious we are about quality. What is your main focus during 2019: To get as many as possible introduced to our fantastic collections and brand, and include them in our big family. What makes J.Lindeberg garments stand out in your opinion? Generally our products have a great fit. Our construction department is doing a fantastic job! What is your favorite from SS19 collection? I think we really did something good with our shirts this season, it is a must have!
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DAVID HOLM Denim Designer & Product Developer Joined JL 2015
Where did your interest for denim start? I worked at JC denim department in Gothenburg and got the opportunity to really dig into the details in denim and the history of the garment. The American gold-digger heritage off course but equally fascinating is the denim history of the more contemporary 70’s, 80’s and 90’s. During those years a genuine interest was born which I think is what is still pushing me forward.
More sustainable fabrics in the entire collection by 2023, how do you approach that goal? My way of working is to choose systematically style by style and improve season by season and this is how I will approach this goal. I think we will make it but not over night. It also takes volumes to switch to more sustainable options which is important to keep in mind.
What defines a denim-expert in your opinion? A personal interest is often a start, to care about details is something I think defines most denim-people. Knowledge about fabrics is important, how different fabrics reacts, washes etc. Most people would be able to create a look but to really find the right product and hand feel is about having the right combination of fabrics and washes, which takes a lot of knowledge and trials.
Favourite garment from JL: Part from denim I recommend our Outerwear and Trousers. Dropper, Tom and Ran are favorites of mine.
JL Denim was recently nominated to the denim.supplier of the year by the swedish Fashion magazine, Habit. What is behind this kind of acknowledgement? I think it is a combination of factors. We did a huge job when going through all old and existing collections with the purpose to build a new collection where all styles have a clear reason for being. We worked through all styles very carefully and involved a lot of people inside the company. We put a lot of attention to all details, washes, fit, trims, threads, labels and hangtags. Each component is so important and how you put them together is crucial to elevate the product. It really makes a difference. We are happy about the result and I think our customer appreciates it as well. What is the future of JL Denim? It is important to continue building the relationship and collaboration with our fabric suppliers. We have a close dialogue with them and they know it is important that they help us develop. Follow trends even more and keep up with the development of society weather it is related to sustainability or other areas. When we are aligned with the fabric suppliers we have more time to spend on fit and other parts of product development.
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Corporate Responsibility Engagement surveys
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engagement surveys UNDERSTANDING THE ORGANIZATION
Engagement surveys are an important tool to understand the organization. We conduct one bi-weekly which is to be a tool for Team-leaders to develop the team and move forward. One larger engagement survey is performed annually. During 2018 the results were used as a foundation for a workshop at JL HQ to increase communication and collaboration between departments.
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diverse casting DIVERSITY AND HEALTH
JL signed the Swedish Fashion Council’s Ethical Charter in 2017. We want to contribute to and establish our responsibility of a healthy body perspective, diversity and working conditions for our business when producing shoots and imagery. During 2018 we have increased our focus on diverse casting, it has always been important to us but this year we made it a conscious priority to make sure our imagery and fashion shows really represent the world we live in and that we are as including as we say we are.
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Diversity and health
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Corporate Responsibility Why policies?
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why policies?
WORKING TOWARDS SUSTAINABILITY
Our policies make up an essential part of the work towards sustainability. They are company statements, describing our standpoint in different areas and guiding us in every day work. The J.Lindeberg philosophy is to keep policies tangible and to the point. To make sure the policies are really lived by, we follow up within
defined areas that we can measure. For example, when saying we are increasing the co-operation with suppliers that are working to decrease their environmental footprint we count the share of total suppliers that are Bluesign certified or Ökotex certified and encourage that figure to grow.
Our policy’s related to Corporate Responsibility: Code of Conduct Environmental Policy Animal Welfare Policy Anti-discrimination Policy Diversity Policy
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risks related to sustainability
NEGATIVE AND POSITIVE IMPACT
We understand the negative and positive impact our business have and handle these efficiently. J.Lindebergs sustainability strategy supports 5 of the UN’s Sustainability Goals (Gender Equality, Affordable and Clean Energy, Climate Action, Responsible Consumption and Production) Our policies are addressing above areas. To the right is an overview of the biggest risks related to sustainability. UN SUSTAINABILITY GOALS
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Corporate Responsibility
RISK
DESCRIPTION OF RISK
POTENTIAL IMPACT
ACTION TO MINIMIZE RISK
Environment
Inefficient use of energy, water and raw material and/or risk for pollution. Increased focus on products environmental impact and coming legal requirements.
Increased costs, negative impact on the environment and diminished reputation. Reduced access of raw material for future needs. Reduced access to water for J.Lindeberg production, people who live close to factories contracted by J.Lindeberg as well as customers. Disruption in the supply chain, including energy supply. Disruption related to extreme weather conditions.
Development of an environmental strategy and policy. Internal activities for increased effiency of energy use. Sustainability focus in product development. Increased focus on suppliers environmental work and certifications.
Suppliers
Supplier’s. including sub suppliers, fabric suppliers, agents and distributors who don’t respect J.Lindeberg’s supplier code of conduct and are weak in their sustainability performance. Unsustainable routines for buying and supplier management.
Diminished reputation and weaker financial position. Sudden disruption in the value chain. Less competitive purchase price. Increased turnover of suppliers and low effiecency in the value chain. Increased total costs for purchased goods.
Revised plan for supplier management, evaluation of supplier’s risks related to sustainability, activities for approving and developing of suppliers. Increase awareness – training of employees and suppliers in the supplier code of conduct. Integrate suppliers’ sustainability work and aspects in the buying process. Increase share of fabric with traceable supply chain and third-party certifications.
Lack of natural resources will potentially inhibit growth in the textile industry.
The supply of raw material we are used to work with in textile production might not cover the need for future growth.
Decreased supply of raw material i.e cotton, less competitive prices. Weakening sales.
Evaluate and implement alternative fabrics, adapt the design process to a circular model where the life of the product is prolonged. Adapt business model to secure future business.
Corruption
To bribe to receive orders. To receive bribe before order is placed. Internal or external fraud. Violation of international trade regulations.
Legal consequences. Diminished reputation and weakend financial reputation.
Training, due diligence, improving processes related to suppliers, customers. Increase awareness of international trade regulations.
Discrimination & Harassements
Unequal handling of staff based on legal grounds for discrimination.
Weakened reputation which might have an impact on sales and the ability to attract and keep staff. Loose talent and perspectives to bring the company forward.
Trainings related to the grounds for discrimination. Working group to address the issue internally. Requirements of diversity when recruiting, goals for diversity overall.
High staff turnover
The business might not be run with the expected quality and stability. Difficulties to reach set goals and the company vision.
Financially costly. Stress and illness amongst staff. Increased workload for managers and support functions. Decreased reputation as employer.
Engagement surveys, increased working environment, clarifyed objectives and targets, leadership training for managers. Build trust and credibility in the working processes.Medarbetarundersökningar, tranpsarency and communication. Clarify responsibilities and mandate.
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