CR_Report_2011 EN

Corporate Responsibility Annual Report 2011 Mammut Sports Group AG www.mammut.ch/cr

Overview 1 | Vision & Mission Statement 2 | About Mammut

3 4

The Company

4

Mammut Core Stakeholders

6

Mammut we care

8

3 | Fairness in the Supply Chain

Fair Working Conditions

9 10

Mammut Code of Labour Practices

10

Review 2011 & Preview 2012

12

Procurement Strategy

14

Monitoring System

16

Audits & Improvements

19

The FWF Wage Ladder

21

Fair Procurement of Materials

Materials in Mammut Products

22 22

4 | Environmental Responsibility

23

Environmental Performance of Products 24

Commitment to the bluesign® Standard

26

CO2 Comensation with myclimate

28

Clothing Collection in the Mammut stores 28

Sustainability on the Mountain

29

150 Years Mammut

29

Support of Environmental Projects

30

5 | Mammut in Peru & Kyrgyzstan

31

Kyrgyzstan Project

32

„Roped together in Solidarity“

32

Success in the Final Examinations

32

Transition to Independence

33

Peru Project

34

Project Launch 2011

34

Mammut Alpine School

35

6 | Glossary

36

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1 | Vision & Mission Statement The Mammut Sports Group has set itself the goal of focusing its long-term business activity on the principles of sustainability. This means that Mammut behaves in an environmentally and socially responsible manner.

Mammut Approach to Corporate Responsibility The Mammut Sports Group views “Corporate Responsibility” (CR) as a management approach that makes social and environmental responsibility a concrete element of its company strategy alongside economic logic. Our primary focus is on social and environmental concerns (CSR & CER) affecting our core business. Beyond this, we also include areas such as Corporate Governance and Corporate Citizenship.

Mammut Mission Statement on Corporate Responsibility • CR is an integrated part of our corporate culture and is applied at all levels within Mammut.

• CR is a relevant innovation driver and opens up new business opportunities.

Sustainability is regarded as a design criterion in its own right alongside price, performance and appearance.

• We focus on customer needs and benefits as well as on market relevance. Investments in social and ecological projects also create economic added value in the long term.

• We aim to stand out from our competitors in the area of CR as well, however we believe that there are some issues we cannot resolve on our own. We therefore sign up to cross-industry solutions and are taking a leading role in the newly formed „Sustainability Working Group“ of the European Outdoor Group (EOG) and cooperating with the relevant internal and external target groups. CR is a global team sport!

• CR is a process of continuous improvement and changing established ways of thinking. We report and communicate transparently in this area.

• We are responsible for long-term, honest, integral and credible solutions and commitments.

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2 | About Mammut 2.1 The Company In 2012, we are celebrating our 150th anniversary.

The original ropeworks has become an innovative company with a wide range of outdoor products offering optimum quality, functionality, performance and safety.

Mammut – From Ropeworks to Innovative Global Player Kaspar Tanner laid the foundations of the company in 1862 with the establishment of his traditional ropeworks in Dintikon near Lenzburg (Switzerland). We still produce our ropes exclusively at our headquarters. „Made in Switzerland“ represents a guarantee of quality and safety. At Mammut, mountaineers can find all the functional clothing, footwear and hardware they need for their chosen outdoor activities, from peak tours and climbing to trail running.

Our product know-how is based on years of experience and is developed on an ongoing basis. We are constantly working on a wide spectrum of product innovations and we test our equipment directly on the mountains, together with our employees and athletes.

Sustainable Growth

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

275 250 225 200 175 150 125 100 75 50 25 0

1996

For Mammut, longevity is more important than short-term financial success. We strive to develop fair relationships with our business partners as part of a long-term approach, whether along the supply chain, within the specialist retail sector or in other areas. Innovative marketing and close collaboration with famous mountaineers and partner organizations also contribute to our solid economic situation.

5

Our figures over the last decade prove that our recipe for success is working: The Mammut Sports Group‘s turnover has increased from 25 million to over 200 million Swiss francs. Over 70% of the company‘s turnover is generated outside Switzerland and 50% is attributable to sales of clothing. With around 380 employees, subsidiaries in Germany, Norway, the USA, Japan and the UK as well as a global sales network, Mammut is equipped for the future.

The Mammut Corporate Responsibility Team Social and environmental corporate responsibility (CR) is embedded in Mammut at management level and is an integral component of our overall corporate strategy. Our commitment to sustainability and social responsibility is viewed as more than simply risk management, but rather as a driver of innovation.

This understanding is reflected in our organizational structure. The role of the Corporate Responsibility Manager (full-time position) has been affiliated with the Brand & Business Development department which reports directly to Mammut‘s CEO as well as the CMO and the CSCO (see the organization chart, green boxes).

In the core CR team, the CR strategy is transferred to an operational level. As well as the CR Manager, the team currently also includes a buyer. This individual is responsible for social supplier management and monitoring (approximately 50% of a full-time role).

Internal Network However, Mammut strongly believes that corporate responsibility can only be effectively implemented if it is an integral component of day-to-day business. Internal guidelines and process specifications are only really of use if they are also practiced.

In 2008, we launched an internal platform involving representatives from different departments and hierarchical levels. We report on ongoing CR activities from each division and discuss CR-relevant topical issues at quarterly round table meetings. As well as increasing understanding of Mammut‘s Corporate Responsibility within the company, the aim is also to help bring the CR ideology into the divisions and thus promote internal review.

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2.2 Mammut Core Stakeholder Credibility goes hand in hand with transparency.

Mammut maintains an open and honest communication style when it comes to corporate responsibility. Discussion with our stakeholders takes place on equal terms.

Our Core Stakeholders Stakeholders are those individuals and organizations who are affected by or who influence our work. As a company, we are not an isolated player but part of society as a whole. Our core stakeholders include stakeholders with strategic relevance.

In addition to the aforementioned groups, this also encompasses CR-specific stakeholders such as the Fair Wear Foundation (FWF) for the area of fair working conditions and bluesign technologies for the environmental performance of products.

Opinion leaders (NGOs, consumer organisations, Media, Universities) employees REGULATORs (State, Shareholders, Compliance initiatives) business partners (suppliers, service providers, retailers) INdustry associations(European Outdoor Group) Alpinists

Stakeholder Dialog & Information Management Stakeholders can find comprehensive information about Mammut‘s corporate responsibility on the Mammut web site (www.mammut.ch/cr). In March/April of each year we also publish the Mammut Annual CR Report there. In addition to online communication, we also advocate direct dialog and active involvement with our core stakeholders.

Employee Involvement Employees are continually kept up to date on Mammut‘s corporate responsibility through various internal communication tools (quarterly employee magazine, information events, internal blog, internal quality management system, etc.). To involve our employees in corporate responsibility, we maintain an internal CR network and carry out staff training on specific CR topics.

7

Commitment to Business Partners, Regulators & Opinion Leaders Mammut is actively involved with its stakeholders through a range of actions, both formal and informal: • formal partnerships, including with the Fair Wear Foundation, bluesign technologies and the European industry association, the European Outdoor Group (EOG) • collaboration within the EOG and its Sustainability Working Group (SWG) at industry level • collaboration with competitors in relation to social audits and improvement initiatives • meetings and informal discussions with stakeholders at key trade fairs for the sports & outdoor sectors (ISPO in Munich and OutDoor in Friedrichshafen) • round table discussions with NGO representatives • responding to surveys by consumer organizations, NGOs or the media • participation in academic research • long-term and fair business relationships (the average duration of our business relationships with suppliers is nine years) • half-yearly supplier newsletter about current business developments and supplier performance • two-week work placement with suppliers for employees from the procurement department • visit made by a journalist to suppliers.

In March 2011, for the first time ever, we allowed an independent journalist to take a look behind the scenes at one of our Chinese suppliers of functional outdoor apparel. Although new and unusual for all concerned, in the end this proved to be an extremely enriching and positive experience. The journalist wrote articles for many German-language trade and general media publications. For more information, see page 12

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2.3 Mammut WE CARE Mammut is giving its Corporate Responsibility a new look with the „Mammut WE CARE“ logo.

The green color and line feature in all areas of corporate responsibility, creating a common theme.

The heart of the new logo are the words “WE CARE”. This is a sign of our commitment. The logo is accompanied by the claim „about people, communities and our planet“. The end result is a short and concise expression of our basic aims in relation to corporate responsibility: the people and natural world around us are important to us, therefore, as a company we are accepting responsibility. We are doing this in all three areas of corporate responsibility: • social • environmental and • corporate.

Why do we need a separate logo?

The words „Corporate Responsibility“ encompass all of our social, environmental and corporate commitments. In implementing these commitments, we work with various specialist partner organizations, such as the Fair Wear Foundation and bluesign technologies. Over the years, we have established a broad, solid and varied „CR portfolio“. For people outside the company, it is no easy task keeping up with all the developments. The Mammut WE CARE logo provides important guidance in this respect. The green color and line immediately tell you what is involved - our sustainability and social responsibility.

3 | Fairness within the Supply Chain 3.1 Fair Working Conditions Mammut has a firmly established management system to continuously monitor social working conditions within the supply chain. However, due to the termination of business relations with two suppliers, we did not manage to achieve the required 90% threshold. In 2012, our main focus is an in-depth analysis of wage levels at suppliers, based on the Fair Wear Foundation‘s „Wage Ladder“ tool.

3.2 Fair Procurement of Materials The complexity and diversity of our procurement channels vary depending on the product group. Creating comprehensive transparency remains a major challenge and a constant focus of our efforts. The areas of organic cotton and down are current key topics.

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3.1 Fair Working Conditions Mammut Code of Labour Practices

As Member of the Fair Wear Foundation, we commit to only trade in products that have been manufactured under dignified working conditions.

The Fair Wear Foundation „Code of Labour Practices“ is the basis of this committment.

The Code of Labour Practices is based on the conventions of the International Labour Organisation (ILO) and the Universal Declaration on Human Rights. In the text below, references are made to specific conventions. Where clarifications of ILO Conventions are required, FWF follows ILO Recommendations and existing jurisprudence.

Employment is freely chosen There shall be no use of forced, including bonded or prison, labour. (ILO Conventions 29 and 105) There is no discrimination in employment Recruitment, wage policy, admittance to training programmes, employee promotion policy, policies of employment termination, retirement, and any other aspect of the employment relationship shall be based on the principle of equal opportunities, regardless of race, colour, sex, religion, political affiliation, union membership, nationality, social origin, deficiencies or handicaps (ILO Conventions 100 and 111).

No exploitation of child labour There shall be no use of child labour. The age for admission to employment shall not be less than the age of completion of compulsory schooling and, in any case, not less than 15 years.“ (ILO Convention 138) „There shall be no forms of slavery or practices similar to slavery, such as the sale and trafficking of children, debt bondage and serfdom and forced or compulsory labour. [...] Children [in the age of 15-18] shall not perform work which, by its nature or the circumstances in which it is carried out, is likely to harm their health, safety or morals.“ (ILO Convention 182) Freedom of association and the right to collective bargaining The right of all workers to form and join trade unions and bargain collectively shall be recognised. (ILO Conventions 87 and 98) The company shall, in those situations in which the right to freedom of association and collective bargaining are restricted under law, facilitate parallel means of independent and free association and bargaining for all workers. Workers‘ representatives shall not be the subject of discrimination and shall have access to all workplaces necessary to carry out their representation functions. (ILO Convention 135 and Recommendation 143)

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Payment of a living wage Wages and benefits paid for a standard working week shall meet at least legal or industry minimum standards and always be sufficient to meet basic needs of workers and their families and to provide some discretionary income (ILO Conventions 26 and 131). Deductions from wages for disciplinary measures shall not be permitted nor shall any deductions from wages not provided for by national law be permitted.

Deductions shall never constitute an amount that will lead the employee to receive less than the minimum wage. Employees shall be adequately and clearly informed about the specifications of their wages including wage rates and pay period.

No excessive working hours Hours of work shall comply with applicable laws and industry standards. In any event, workers shall not on a regular basis be required to work in excess of 48 hours per week and shall be provided with at least one day off for every seven-day period. Overtime shall be voluntary, shall not exceed 12 hours per week, shall not be demanded on a regular basis and shall always be compensated at a premium rate.

(ILO Convention 1) Safe and healthy working conditions A safe and hygienic working environment shall be provided, and best occupational health and safety practice shall be promoted, bearing in mind the prevailing knowledge of the industry and of any specific hazards. Appropriate attention shall be paid to occupational hazards specific to this branch of the industry and assure that a safe and hygienic work environment is provided for. Effective regulations shall be implemented to prevent accidents and minimise health risks as much as possible (following ILO Convention 155). Physical abuse, threats of physical abuse, unusual punishments or discipline, sexual and other harassment, and intimidation by the employer is strictly prohibited.

Legally-binding employment relationship Obligations to employees under labour or social security laws and regulations arising from the regular employment relationship shall not be avoided through the use of labouronly contracting arrangements, or through apprenticeship schemes where there is no real intent to impart skills or provide regular employment. Younger workers shall be given the opportunity to participate in education and training programmes.

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Review of 2011 and Prospects for 2012

In the 2011 FWF Performance Check, we failed to achieve the required 90% threshold. This was due to difficult business relations with two suppliers.

The first two wage ladder analyses constituted the 2011 highlight.

Three Years of FWF Membership Since we joined the Fair Wear Foundation in October 2008, we have been able to firmly establish our internal monitoring system. The aim is to monitor all suppliers of sewn products and thus systematically monitor over 90% (measured by turnover) for fair working conditions. Corporate social responsibility is now an integral component of our procurement processes.

Highlights In March 2011, for the first time ever, Mammut allowed an independent journalist to visit the factory of a Chinese clothing manufacturer. The German journalist accompanied a two-and-a-half day social audit carried out by local FWF experts. Her aim was to take a look behind the scenes and form her own picture of working conditions at Chinese supplier companies - to assess the progress that has been made, as well as the challenges still to be overcome. Critical consumers regularly ask us why we choose to produce some of our products in China. Many people find it difficult to reconcile corporate social responsibility with China. For Mammut, however, „Made in China“ no longer has any negative connotations - quite the reverse. For many years, we have maintained very good business relationships with Chinese suppliers. As well as first-class expertise, they also perform very well in relation to working conditions.

The journalist accompanied the FWF team of experts throughout the entire social audit and also interviewed representatives of various stakeholders, including Mammut‘s CR Manager, FWF experts, local human rights organizations and factory workers. Mammut allowed her complete transparency and had no influence whatsoever on the subsequent media articles. Her background article was published in summer 2011 in various well-known German-language media, such as the Neue Zürcher Zeitung (Switzerland), Handel Heute (Switzerland) and zeit online (Germany).

CSR is also gaining in importance at our suppliers. For example, in May 2011, our Chinese business partner KTC Limited became the first supplier to join the FWF. Two other supplier companies were also awarded SA8000 certification, others are currently working towards this aim.

Key Issues Mammut terminated business relations with two suppliers. The first instance involved one of our largest clothing suppliers. In this case, our decision was primarily due to difficult business relations. There was also a lack of transparency in terms of social compliance. The supplier refused to grant local FWF auditors access to the factory.

As a result, we failed to meet the objective set by the FWF of monitoring at least 90% of clothing suppliers by our third year of membership.

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In the second case, compliance with the code of conduct and inferior quality were the deciding factors. Despite repeated efforts on our part, the supplier failed to come up with a plan for improvement. In both cases, we decided to terminate the business relationship Focus for 2012 We plan to roll out the monitoring system to all suppliers and also incorporate product groups which are not covered by the FWF. Based on the FWF‘s step-bystep approach, during the initial phase we inform suppliers of the code of conduct.

We also send them the FWF questionnaire for an initial self-assessment.

In addition to social audits for newly included suppliers, we also carry out many repeat audits. According to the FWF‘s stipulations, audits should be repeated every three years. To manage this process, Mammut is cooperating much more closely with its competitors.

The living wage issue will continue to be a key topic throughout 2012 and beyond.

Thanks to the FWF‘s „Wage Ladder“, we now have the tool to tackle this issue in more detail. Two of our suppliers have already been reviewed in 2011. We are now planning a comprehensive data collection and analysis initiative, with a view to obtaining an overview and defining appropriate measures.

Mammut Management system

Social Objectives 2012 2011 Objective

Activity

Status12/2011

2012 Objective

Activity

Optimization of monitoring instruments

• Internal guidelines on the Corrective Action Plan • Greater integration of low-risk manufacturers • Gradual expansion of themes (environment, society)

being tested

Living wage

ongoing

Expansion of monitoring

achieved

Internal & external communication

• Internal data collection & analysis • Integration of footwear manufacturers • New product hangtags • Gradual expansion of themes

• FWF Performance Check follow up • Audit for manufacturers of harnesses, backpacks • Posters in local languages • Invitation to the FWF seminar, China (Jan.11)

achieved

Standardization

• Collaboration with competitors on audits & corrective action plans

Repeat social audits

• 3-year cycle

2011 Annual Social Report

Comprehensive

Mammut Supply Chain:

Expansion of monitoring

Training

achieved

achieved 3 out of 5 suppliers attened

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Mammut Procurement Strategy

Three years of membership of the FWF have shown that we have the right strategic partner. Social working conditions are an integral component of our purchasing policy.

Procurement Strategy & Pricing Policy With regard to procurement practices and supplier management, Mammut adopts a best practice approach. Our key requirements are top quality, reliable planning and timely delivery. Other important criteria include innovative expertise, prices and working conditions within the production organization.

We deliberately do not buy in low-wage countries such as Pakistan, Sri Lanka, Cambodia, Bangladesh or Indonesia. We also do not follow the trend of constantly switching to increasingly cheaper sites. Instead, we focus on building long-term partnerships with our suppliers. Our average business relationship lasts for nine years. Around 50% of our production takes place in Europe and the remaining 50% in the Far East, mainly in China and Vietnam, and we intend to continue to maintain this distribution.

Produkt-WertschĂśpfungskreislauf

Rohstoff

Produktion

Konfektion

Verpackung

Transport

Firma

Distribution

Verbraucher

Produkt-Lebensende / Kreislauf

Production Cycles We have two collections each year – summer and winter. In winter, clothing turnover is 55% higher than in the summer season. A collection consists of around 250 products, divided into four different target groups: Alpine, Mountain, Snow and Climbing.

Between 45-65% of styles are carried forward from one season to the next.

Wherever possible, these products are made by the same suppliers. New styles are assigned to a supplier based on the specific product types. Only in exceptional circumstances do we use the comparison principle and approach several manufacturers for a particular product.

From Design to Finished Product The majority of our products are very elaborate and require a high level of investment, experience and know-how. The process from the product concept to the finished product in a store takes more than two years. Because of longer lead times required by our suppliers for clothing and hardware, since 2011 the development process for these product groups has become even longer.

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Each collection is meticulously planned each season and implemented according to a specific schedule. Suppliers are involved in the product design process from the very beginning. This allows them to plan their production orders and the required human resources early on. The collections are presented and national budgets set at the international sales meeting. The product orders arrive at our warehouses in Switzerland, Germany, the USA and Japan each December/January (for the subsequent summer season) or May-July (for the subsequent winter season) to ensure they can be sent to our retail partners on time.

Produktentwicklungsprozess, Bekleidung

2011

2012

2013

Jun Jul Aug Sep Okt Nov Dez Jan Feb M채r Apr Mai Jun Jul Aug Sep Okt nov Dez Jan Feb M채r Produktentwicklung: Kollektion, Design, Prototyping, Sales-Meeting

Sommer 2013

Forecast - Prozess Beschaffungs- und Bestellprozess Preisprozess Vororderprozess Produktionsprozess Auslieferung an den Handel

Incorporation of Monitoring Activities & Procurement Decisions Mammut has incorporated monitoring guidelines, documents and processes in its internal Quality Management System (QMS). The main internal monitoring tools are the supplier register and the corrective actions register. Over the years, the supplier register is used to record which suppliers have undergone audits, the results of these audits and any required follow-up. The corrective actions register is used to record all corrective actions defined as a result of complaints, social audits or FWF verification audits. Responsibilities and deadlines are specified for each corrective action. In 2011-2012, we are drafting internal guidelines to ensure the systematic and transparent handling of corrective actions.

At Mammut, responsibility for the systematic monitoring and tracking of corrective actions lies primarily with the procurement department. Approximately 50 percent of one full-time position is devoted to this. Each year, the entire procurement team receives training on the issue of monitoring and fair working conditions. The responsible buyer and the CR Manager meet each month to check the actions and ensure internal coordination.

Coherence & Consistency Overall, it is paramount to the FWF that all measures taken are coherent and work together to bring about improvements in working conditions. The FWF checks whether or not this is the case during its annual management system audit (MSA). This involves a close inspection of the monitoring system and internal processes and guidelines of its member companies. The last MSA report (November 2011), certified our very good performance for the third time in a row. The only criticism made by the FWF was the fact that one of our key suppliers (ref. 11071) had refused access to the expert team of auditors. The result was an unsatisfactory coverage rate of 71% instead of the required 90%.

Business relations with the supplier in question had been difficult for a long time, with working conditions being just one of many factors. We therefore decided to terminate our business relationship with this supplier by the end of February 2012. Our business relationship with the supplier ref. 12220 was also terminated. In this case, working conditions were a key factor, among other issues. Despite many meetings and discussions, the supplier resisted an audit and was not prepared to implement improvement actions.

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Mammut Monitoring System

At Mammut, monitoring is part of the procurement process and takes up approximately 40 percent of one full-time role. The objectives and implementation actions defined in the annual work plan are monitored on a monthly basis.

Scope of the Monitoring System The Fair Wear Foundation limits its sphere of competence to the textile industry and sewn products. Mammut‘s monitoring system covers suppliers of clothing, backpacks, climbing harnesses and sleeping bags. In future, the monitoring program will be expanded to include the area of footwear.

Starting Point: Code of Conduct All suppliers of sewn products have signed the FWF‘s code of conduct and are therefore obliged to progressively improve working conditions within their company in accordance with the code. They also complete a self-assessment each year using the FWF‘s questionnaire and inform us of other audits carried out by third parties.

On-Site Audits & Training The next step involves performing social audits. Mammut relies on local independent experts trained especially by the FWF to carry out audits in accordance with the FWF guidelines. Suppliers for which purchases of sewn products account for 2% or more of turnover are top priority. The FWF requires a repeat audit at least once every three years. In critical cases of breaches of labor law, even earlier. An audit report including improvement action is produced after each audit and Mammut then works with the supplier to agree an implementation schedule and the evidence to be provided.

Although audits are a key monitoring tool, they are still snapshots at a given point in time. To bring about lasting changes, the consistent implementation of improvements is essential. The FWF also recommends that its members carry out specific training courses and sessions with factory managers and employees.

The FWF has been organizing training courses for manufacturers within the regions of focus since 2011. Mammut encourages its suppliers to take part in these events.

For example, in January 2011 a seminar on the topic of „From Burden to Benefit“ was held in Shenzhen (China) and was attended by three of our five suppliers in the region. In 2012, we will be focusing on training management on the subject of the living wage. The key element in our approach is the „Wage Ladder“, a new tool introduced by the FWF in the middle of 2011 which can be used to measure local wages against various benchmarks.

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Yearly planning and management cycle

6 Reflexion Analysis and Definition of Objectives

5 Transparency Corporate Responsibility Annual Report

4 FWF Verification Verification audits, complaints, performance check

1 Strategy Yearly work plan

2 Implementation Mammut management system and monitoring

3 communikation with suppliers Questionnaire, social audits, corrective actions

Complaint Mechanism One of the many ways in which the FWF differs from other initiatives is its complaints system. In each production country, local ombudsman systems are set up to allow factory workers to submit complaints directly and anonymously. Improvement actions are then defined for the member company and the supplier concerned. The FWF reports publicly on all complaints received and the actions taken.

Mammut ensures that all suppliers of sewn products advertise the FWF‘s Code of Labor Practices and the contact details for making complaints. Mammut provides posters free of charge for this purpose. To date, two complaints have been received

by Mammut. Both of these were made in 2010 and related to excessive overtime at two companies in China. More information can be found in the 2010 Annual Social Report and on the FWF web site.

The Improvement Plan As well as the audit report, improvement action may also result from factory visits by Mammut employees or from complaints.

We make a distinction between „minor“ and „major“ improvements. Minor improvements can be implemented without the need for a great deal of time and resources, while in the case of major improvements, the problem is deeply rooted and generally affects the entire industry. The issue of the living wage belongs to the second category and represents a long-term challenge.

We use the Supplier Register and the Corrective Actions Register to ensure the systematic follow-up of all improvements. We check the Corrective Actions Register at least every three months. This topic is also on the agenda at the monthly coordination meetings between the procurement manager and the corporate responsibility manager.

Open & Active Dialog In recent years, we have been able to consolidate and optimize our internal social management system. The active and open dialog we maintain both internally between divisions and levels and externally with our suppliers also contributes to this. Twice a year, Mammut‘s Supplier Newsletter provides suppliers with clear information about business developments and corporate social responsibility.

Mammut also maintains a quality assurance team in China and Vietnam. Purchasers, designers and textile coordinators meet at supplier companies 3-4 times a year.

A report is drafted after each factory visit which sets out, among other things, any CR-relevant observations. If adverse working conditions are observed, these are

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included in the Corrective Actions Plan. Conversely, suppliers also visit our trade fairs (twice a year) or our headquarters in Seon, Switzerland. Management (Mammut CEO and/or Chief Supply Chain Officer (CSCO)) assesses the quality of our business relations seasonally.

Cooperation & Harmonization Mammut proactively advocates harmonization and closer cooperation in audits.

Where possible, we refer to recent reports of audits carried out by third parties rather than carrying out our own separate audit. We are convinced that this is both more efficient and more effective. The resources the supplier would have had to expend on another audit can then be allocated to making improvements.

One other factor plays a significant role: if several companies join forces, they are given more weight with the manufacturer in question. This increases the pressure on the producer to investigate the companies‘ concerns and implement their requests.

Our approach towards active cooperation with employees has proven its worth repeatedly.

The Role of Employees Mammut‘s Corporate Responsibility team has not changed since 2008. For more information, see the organization chart on page 5.

Social supplier management is handled mainly by a buyer and the CR Manager. The buyer is responsible for maintaining a continuous dialog with suppliers, organizing and coordinating audits and updating the Supplier Register and Corrective Actions Register at least every three months. Once a year, the procurement team attends an internal training course on social compliance, improvements achieved, challenges remaining and new objectives. Around 40 percent of the buyer‘s role is dedicated to this.

The CR Manager is responsible for developing and implementing the overall CR strategy. Her tasks include developing internal CR know-how, coordinating and monitoring internal processes and reporting to corporate management. She also ensures complete transparency in internal and external CR communications to all stakeholders.

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Mammut Audits & Improvements

In 2011, a total of two social audits and one verification audit were carried out with local FWF experts. No complaints were recorded. 2012 will see the first repeat audits.

During more than three years‘ membership of the Fair Wear Foundation, Mammut has integrated over 70% of its direct suppliers of sewn products in its monitoring system. Following on from suppliers in the clothing product group, the monitoring system has been gradually expanded to include backpacks, sleeping bags and climbing harnesses. The footwear division remains the final step.

One third of our suppliers are located in so-called „low-risk“ countries. Our monitoring activities since 2008 can be summarized as follows: • 4 social audits with local FWF experts in Turkey and China • 2 verification audits by the FWF in China • 1 supplier became a new FWF member • 2 suppliers gained SA8000 certification and 2 more are currently working towards this • more than 40 improvements have been agreed, 90% of which have been implemented.

Social Audits, Repeat Audits & Training FWF members must audit their suppliers at least every three years in accordance with the FWF‘s guidelines. 2012 will therefore see multiple repeat audits for us (see Supplier Register, page 20). The FWF also requires us to achieve the 90% threshold this year. We were unable to meet this due to lack of cooperation from the suppliers referred to earlier.

FWF Living Wage Ladder In 2011, the FWF launched a new tool to assess wage levels at suppliers (see box).

We now have „Wage Ladders“ from two of our Chinese suppliers. Our goal for 2012 is to collect and analyze data on our main suppliers for sewn products (for more information, see page 21).

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Mammut Supplier Register (per 31.12.2011)

Factory

Far east

Europe

Region

Total

Monitoring

Country

Nb.

Productgroup

Part of mammut Purchasing Volume 2010

Audit necessary (acc. FWF)

fwf question naire signed

Last Audit

planned 2012

„corrective Actions“ Status

Latvia

11201

Apparel

16.0 %

no

yes

SA 8000 planned

/

/

Turkey

11223

Apparel

10.2 %

yes

yes

November`09

September

/

Portugal

11030

Apparel

4.0 %

no

yes

/

/

/

Romania

11238

Footwear

3.4 %

yes

yes

/

/

/

Portugal

11214

Apparel

2.9 %

no

yes

/

/

/

Germany

11091

Apparel

2.1 %

no

yes

/

/

/

Portugal

11059

Apparel

0.8 %

no

yes

/

/

/

Italy

11002

Apparel

0.2 %

no

yes

/

/

/

Germany

11005

Apparel

0.1 %

no

yes

/

/

/

Ireland

11045

Apparel

0.0 %

no

yes

/

/

/

China

11072

Apparel

12.7 %

yes

yes

August `11

/

/

China

11216

Footwear

9.3 %

yes

yes

/

/

/

China

11004

Apparel

9.3 %

yes

yes

November `09

November

/

China

11182

Apparel

5.7 %

yes

yes

January `11

/

/

China

11071

Apparel

4.9 %

yes

yes

WRAP

Production stop 2012

/

Vietnam

11088

Backpacks

3.7 %

yes

yes

SA 8000

/

/

Philippine

11178

Backpacks

3.0 %

yes

yes

/

August

/

China

11170

Footwear

2.5 %

yes

yes

/

/

/

China

11083

Sleeping Bags

2.4 %

yes

yes

SA 8000 planned

to be defined

/

India

11242

Apparel

1.6 %

no (< 2%)

yes

SA 8000

/

/

Vietnam

11208

Apparel

1.4 %

no (< 2%)

yes

/

to be defined

/

Vietnam

11160

Apparel

1.0 %

no (< 2%)

yes

/

/

/

China

11013

Apparel

0.9 %

no (< 2%)

yes

BSCI member

/

/

yes

China

11261

Apparel

0.5 %

no (< 2%)

India

12220

Apparel

0.4 %

no (< 2%)

WRAP

to be defined

/

/

Production stop 2012

/

India

11015

Apparel

0.4 %

no (< 2%)

yes

/

/

/

China

NEW

Apparel

0.2 %

no (< 2%)

no

FLA member

/

/

China

11084

Sleeping Bags

0.1 %

no (< 2%)

no

BSCI member

/

/

China

11224

Apparel

0.1 %

no (< 2%)

no

BSCI member

/

/

100 %

67% monitores

100 %

6 Audits for 2012

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Die FWF Wage Ladder

2011 lancierte Die FWF ein neues Instrument das die Analyse und Verbesserung der Fabriklöhne in Produktionsländern unterstützt — die „Wage Ladder“.

The principle of the living wage is incorporated in the FWF Code of Labour Practices. However, until now there were no clear foundations or guidelines to calculate a so-called living wage or tools to improve this issue. The FWF‘s Wage Ladder is a practical tool. As a brand, it allows us, as well as suppliers and workers‘ representatives, to systematically analyze factory wages and negotiate improvements.

The FWF‘s Wage Ladder shows the wages being paid and provides context for various benchmarks developed by NGOs, workers‘ organizations, employer associations and state bodies. On the one hand, the Wage Ladder comprises „formal“ indicators such as the international poverty line, national minimum wages and best practice industry values. On the other hand, it also considers living wage reference values, for example in accordance with the Asia Floor Wage Campaign calculation model.

22

3.2 Fair Procurement of Materials Materials in Mammut products

We also promote fairness in relation to purchases of individual product components. Mammut acts in all good conscience and bases its actions on the applicable best practice approach.

Mammut uses a variety of different materials and fabrics for its wide product range.

Depending on the model, a backpack or jacket can consist of from fifty to over one hundred different components. The raw materials used are just as varied. Crude oil remains the most important raw material. We also use natural fibers such as merino wool, down feathers and organic cotton. In some products recycled fibers are also used for improved environmental performance.

Mammut maintains direct business relations with fabric goods manufacturers and most fabric suppliers. However, smaller individual components are often bought in by the fabric goods manufacturer itself, which means that in such cases we do not have any direct contact with the suppliers. The variety of „ingredients“ as well as the global network of suppliers results in extremely complex supply chains. This makes it more difficult to track and monitor procurement conditions for materials. Our business partner for organic cotton, Swiss company Remei AG, is one exception as it guarantees complete transparency straight from the cotton field.

We do not have the resources to deal with all CR issues at the same time. Where we are unable to get actively involved ourselves, we follow the latest best practice examples and act in all good conscience. For Mammut the issue of fair working conditions and the Fair Wear Foundation is still our top priority. By February 2012, we had also developed our down strategy further.

Mammut Organic Cotton Products For our climbing product line, Mammut uses organic cotton supplied by Remei AG‘s fair and sustainable production. This is because conventional cotton cultivation involves a huge burden for humans and nature. In Remei AG, Mammut has found a credible partner and developed a new product line that is completely organic and at the same time meets our high quality standards. bioRe® organic cotton is produced and processed according to strict environmental and social guidelines. The focus is respect for nature and humans, and in practical terms this means: producing sustainably, ensuring humane working conditions and using no pesticides with harmful effects for the environment or health. bioRe® therefore focuses on complete transparency. The “traceability code” sewed into each garment allows you to track the entire value chain.

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Mammut Down Products As well as meeting the highest quality standards, down should also be obtained under responsible and animal-friendly conditions. However, the challenge lies in tracing and ensuring compliance with these requirements. We have been following the best practice approach for years. Until now, this has been primarily based on laboratory testing of down aimed to identify any live plucking.

In 2011, our down supplier for jackets performed its first ever self-audit (along its own down supply chain), making it a true pioneer in the industry. However, due to the lack of comprehensive monitoring tools and the very high complexity of down supply chains, we are still not in a position to provide an absolute 100% guarantee regarding live plucking or force-feeding.

The key requirement of non-governmental organizations (NGOs) is creating complete transparency to allow full traceability. This will make credible monitoring of the supply chain possible. For us the challenge is now twofold: One the one hand we must continue to work towards solutions since, according to the NGOs, our current certificates are not sufficient. On the other hand, as a medium-sized company with only a small proportion of down products, we have a limited sphere of influence. We are therefore approaching the problem at industry level, since our combined strength will give us power to create transparency along the supply chain.

We are aware that we still have a long way to go and that this challenge will not be resolved overnight. We will continue to persevere and advocate fair down extraction.

4 | Environmental Responsibility

4.1 Environmental Performance of Products Since February 2011, Mammut has been a member of bluesign technologies. As of January 2012, we converted all of our rope production to the bluesign standard. In 2012, we will be expanding the product range, in particular within the clothing sector.

4.2 Sustainability on the Mountain For Mammut, sustainability on the mountain starts with its own activities and employees. We are therefore working to make our ecological footprint as environmentally friendly as possible. This does not succeed everywhere and remains an ongoing challenge.

We also support projects which contribute towards raising awareness of greater sustainability on the mountain.

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4.1 Environmental Performance of Products In terms of environmental responsibility, Mammut‘s key priority is the supply chain. Together with bluesign technologies, we are working on the issue of chemicals in the manufacturing process.

The area of environmental responsibility along the value chain is one of our greatest challenges in general. Our production processes are extremely complex and each stage requires specific know-how. The materials and components required for the finished product go through complex processes involving various chemical substances. bluesign technologies is our partner for chemicals, myclimate is our partner for CO2 emissions offsetting and we work with I:CO for the collection and recycling of used outdoor equipment. We have also implemented numerous environmental initiatives at a company level.

Mammut Supply Chain:

Mammut Management system

Environmental Objectives 2012 2011 Objectives

Activity

Status 12/2011

2012 objectives

Activity

bluesign® strategy & objectives

• Membership • Define objectives for each product group • Review and optimize

achieved achieved

Processes and ecological guidelines Internal know-how

• Continually optimize • Extend, consolidate

achieved

Internal and external communication

• Extend annual CR report, complete transparency • Project analysis

Processes and ecological guidelines I:CO

• Switzerland/ Germany/Austria pilot project

bluesign® standard for ropes

• Conversion by summer 2012 • CO2 offsetting (production at headquarters) • Analyze and define objectives and procedures (medium-term)

bluesign® standard for clothing

I:CO

achieved achieved achieved

Clothing, hardware Active stakeholder dialog

• Increase proportion of bluesign-certified materials • Raise awareness among suppliers • Cooperation with competitors

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Commitment to the bluesign® Standard

In February 2011, Mammut officially joined bluesign technologies. We have reached the first milestone with the conversion of our rope production to the bluesign® standard.

Outdoor Functionality Requires Chemicals Chemicals play a key role in the textile industry in general and specifically in the production of outdoor equipment. More than 7,000 different chemicals are used to give outdoor products various functional properties including water repellence and dirt resistance, UV protection and odor neutrality. In total, more than 25% of the chemicals produced worldwide are used in the textile and clothing industry.

The bluesign® Approach Correct handling of chemical substances is absolutely paramount to avoid any harmful effects on humans and the environment. For Mammut, as well as consumer protection this involves sustainability throughout the entire supply chain.

That is precisely the approach adopted by bluesign technologies, which is guided by the „input stream management“ principle. In simple terms: put nothing bad in, nothing bad will come out. bluesign technologies therefore takes a holistic view of the entire production chain. The materials and production processes used are screened and reviewed throughout the supply chain - from chemical suppliers to the finished product - with no compromises in terms of safety, quality and functionality.

As well as creating transparency for companies, consumers and the general public, this also attests to the safety of the bluesign®-certified product for humans and the environment.

The Restricted Substances List The bluesign Restricted Substances List (BRSL) already includes over 700 chemical substances used in the textile industry, making it the most comprehensive RSL worldwide. bluesign technologies bases its assessment on a risk analysis and classifies chemical substances into three categories: black (ban on use), gray (use only in accordance with strict guidelines) and neutral (relatively harmless). „bluesign® approved fabric“ & „bluesign® product“ bluesign technologies differentiates between two levels of product labeling: a product receives the „bluesign® approved fabric“ label if at least 90% of the fabric area of the product (internal and external layers) has been manufactured in accordance with the bluesign® standard. This label represents an interim stage and will be phased out by the end of 2014.

The „bluesign® product“ certificate goes one stage further and covers all components of the product. It therefore represents a far greater challenge.

For more detailed information about bluesign technologies and the bluesign® standard, visit www.bluesign.com.

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2011 Focus on Rope Production With the complete conversion of our rope products to the bluesign® product standard we can celebrate a huge first success. The main challenge lay in getting all suppliers - from yarn suppliers and dyers to processors - on board. We had to convince them not only of the ecological benefits of this conversion but also the economic advantages. The fact that we have long-standing business relationships with all our suppliers and were therefore able to build on a foundation of trust had a very positive effect.

All suppliers and Mammut‘s rope production have been screened by bluesign® experts and our formulae and workflows have been reviewed in detail. Any amendments and improvements resulted from this process. It revealed that only minor corrections were required as many of the bluesign® requirements had already been met (air filter, water treatment, chemical handling). Next, selected finished and intermediate products were taken from the value chain and repeatedly tested. This involved testing once again to ensure that no chemicals on the bluesign® Restricted Substances List (bRSL) blacklist were used in processing. This screening process must be repeated every two years.

2012 Focus on Clothing After ropes, it is now time to overcome other hurdles. Our focus is our textile products, which make up approx. 80% of our range. Many of our suppliers are already bluesign® system partners and have converted their production in accordance with the bluesign® standard or are in the process of doing so. We aim to gradually increase the proportion of bluesign®-certified products and are setting ourselves some ambitious targets in this area. In addition to the complex supply chains, our extremely wide and varied product range is another key challenge. Each product group has a different starting position and its own problems so we therefore need to analyze and approach them individually. In March 2012, we were already working on developing the summer 2014 collection. The aim is to achieve at least a proportion of at least 14% (measured by the number of products) in the clothing and hardware product sectors.

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CO2 Offsetting with myclimate

Every year, more than 100 tons of CO2 emissions are generated in the rope works at Mammut‘s headquarters. These are being offset through a myclimate project for climate-efficient stoves in Climate change is a complex issue that poses challenges for both governments and companies. Which makes it even more surprising to realize just how much can be achieved with limited resources. For example, by constructing simpler but more energy-efficient stoves in Peru.

Since 2008, Mammut has been offsetting the CO2 emissions generated in its rope production. The company’s rope operations are still located at its headquarters in Seon, Switzerland. The 132 tons of CO2 emissions generated by its rope production in 2010 (excluding polyamide and yarn production), were offset in Peru in partnership with the myclimate non-profit foundation. In the course of this project, more than 29,000 stoves have already been built. In total, more than 175,000 tons of CO2 have been saved over a period of seven years in several Peruvian provinces.

Why Peru?

Peru is renowned for its impressive mountain landscape and attracts many mountain enthusiasts each year. Mammut shares this fascination with the Latin American country and is taking further action above and beyond the myclimate project. As a partner of the “Cooperación Alpinista Suiza – Perú”, we are supporting the Peruvian associations for mountain guides and trekking guides with Mammut core knowledge and equipment.

Clothing Collection in the Mammut store

Used clothes are not yet worn out. They can be reused, recycled or reinvented. Under no circumstances should they end up in landfill.

In 2010, we introduced collection boxes in the Swiss Mammut stores as part of a pilot project. Customers could deposit their used outdoor equipment in the boxes.

The aim of the project is to prevent used outdoor equipment made from high-quality materials ending up in landfill. In exchange, customers receive a voucher which can be redeemed against their next purchase in the Mammut store.

In addition to outdoor clothing, climbing equipment (harnesses, footwear, ropes), mountain boots, backpacks and sleeping bags are also collected. Our partner company I:CO (I collect) then sorts the products and reuses or recycles as many as possible. Approximately 70% of the goods are recycled.

Following a successful initial pilot phase, we are expanding the project to include Mammut stores in Germany and Austria in a second phase in 2012.

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4.2 Sustainability on the Mountain Whether for corporate events, sales meetings or pleasure, we love to head into the mountains as often as possible. In particular, 2011 saw a huge event take place on the Aletsch Glacier for the launch of Mammut‘s 150th anniversary. We also support projects which raise awareness of the need to treat nature in an environmentally sound manner.

150 Years of Mammut

In August 2011, Mammut sounded the starting shot for its 150th anniversary. For one whole week, we celebrated in the biggest base camp in history with participants from the world over on the Jungfraujoch, 3,471 meters above sea level.

The main purpose of the event was to sound the starting shot for the „Mammut Peak Project“ - the biggest peak project in history. Between August 2011 and August 2012, we plan to climb 150 peaks all over the world. The base camp was set up on the Aletsch Glacier, just below the Jungfrau tunnel. Our philosophy was to leave the glacier exactly as we found it. Apart from our footprints, there should be no traces of our presence.

We also followed best practice examples of sustainability in relation to events. The following actions were taken: • all materials and participants were transported to the mountain on the Jungfrau railway • only compostable tableware was used • garbage bins were sunk deep into the ground (to stop them being blown away by the wind) and positioned all over the base camp • all garbage was taken back down to the valley and the entire area was searched again after the camp was dismantled • food was prepared in the valley and transported up on the railway (better energy efficiency) • all participants were urged to behave in an environmentally sound and responsible manner (leave no garbage, use the ToiToi toilets, etc.)

For the key visual photo shoot, we used the helicopter once again but we tried to limit its use as much as possible. Swiss Air Rescue (REGA) was also present at the base camp throughout the event with a helicopter for any emergencies. We did not manage entirely without electricity either, although it was possible to keep consumption to a minimum.

Camping in a UNESCO World Heritage Site The launch event and base camp took place on the Aletsch Glacier, a UNESCO World Heritage Site since 2001. The UNESCO World Heritage Site label is awarded to cultural and natural sites that have „outstanding universal value“. These sites must

30

be protected and maintained by governments. The environmental impact of the event was therefore a key criterion from the outset. We involved the Swiss Alps JungfrauAletsch UNESCO World Heritage Foundation right from the start of the preparation processes.

Is a UNESCO World Heritage Site compatible with a major event such as ours? We made this issue the subject of a podium discussion at the base camp. The speakers included: Prof. Wilfried Haeberli, glaciologist; Pr. Dr. med. Oswald Oelz, world-famous climber (among other activities); Karin Tarnutzer, freelance writer; Beat Ruppen, managing director of the Swiss Alps Jungfrau-Aletsch UNESCO World Heritage Foundation and Michael Gyssler, Mammut‘s Chief Marketing Officer. The discussion was chaired by Michael Pause. The opinions of the podium participants were very divided but they all agreed on one point: the mountains are a place of freedom and relaxation, where people can recharge their batteries. We love and respect the mountain scenery because it allows us to indulge our passion for climbing. Or, as Oswald Oelz summed up: „Climbing is the ideal complementary lifestyle to today‘s virtual and plasticized world. [...] Mountaineering takes us back to the world in which we evolved [...]“

Supporting Environmental Protection Projects

Where possible, Mammut supports projects which contribute to nature conservation and in particular, conservation of the mountains.

Eiger Climate Climate change is difficult to understand and yet it is permanently changing the mountains. The „Eiger Climate“ project aims to convey a deeper understanding of climate change. Excursion to the Grindelwald and Aletsch Glacier region, practical experiments, photographic material and an iPhone app allow participants to see for themselves the changes occurring in the mountains. Mammut is a partner in the project and is supporting the excursion leaders by providing equipment. Eiger Climate is an initiative launched by the regional power supplier, BKW, in 2010. More information can be found at www.eiger-climate.ch.

Respect Your Boundaries Mammut wants to experience the mountains in all their glory but at the time with respect for nature and is therefore a partner in the transnational „Respect your Boundaries“ campaign. The aim is to help promote environmentally sound off-trail snow sports. Boards in the area mark out areas of alpine wildlife habitats which must remain undisturbed and prohibit access to ensure protection of wildlife. For more information, visit www.respektiere-deine-Grenzen.ch.

Correct conduct in the mountains: 1. Respect wildlife habitats and preserves: wild animals withdraw to these areas.

2. Stay on marked routes and paths in forest areas: this will allow wild animals to get used to humans.

3. Avoid forest edges and snow-free areas: these are favorite spots for wildlife.

4. Keep dogs on a lead, especially in the forest: wild animals will flee from dogs left to run freely.

5 | Mammut in Peru & Kyrgyzstan

5.1 Kyrgyzstan Project The successful final examination for the first training course represents the achievement of a key project objective. The Kyrgyzstan mountain guides‘ association is now equipped to carry out its own mountain guide training. We will continue to support them throughout the project transfer until 2013.

5.2 Peru Project In April 2011, we celebrated the official launch of the project partnership between Mammut, the „Cooperación Alpinista SuizaPerú“ and the Peruvian mountain and trekking guide associations.

Mammut is supporting its local partners with equipment and knowhow.

32

5.1 Kyrgistan Project â&#x20AC;&#x17E;Roped together in solidarityâ&#x20AC;&#x153;

Mammut is supporting the mountain and trekking guide associations in Kyrgyzstan and Peru. In so doing, we are committing to greater safety in the mountains. A percentage of sales proceeds from the anniversary collection is being donated to these two projects.

Mammut is involved in various social projects which are related to our core business despite the fact there is no direct link. As a partner to the International Federation of Mountain Guide Associations (IFMGA), we are working to promote training and transfer of know-how to the local mountain guide associations in emerging countries.

We also support regional and national projects which contribute to social and ecological sustainability. We see ourselves not only as part of an economic system, but also as a player in society and nature.

Success in the Final Examinations

In October 2011, all seven mountain guides passed the final examinations in the first training course to become internationally recognized mountain guides. This is a great testimony to five years of commitment to the project.

Razeka Hut in Fresh Snow The weather did not make this final stage of the training particularly easy for the Kyrgyz mountain guide candidates. While we waited for snow to fall in the Alps, the summits outside the Razeka hut were already covered in a fresh white cloak, and were being whipped by a wintry wind. As is so often the case in the mountains, the changed weather situation and avalanche hazard map meant that the training program had to be flexible.

Mountain Rescue in Difficult Circumstances This did nothing to affect the motivation of the course participants however. They were facing the final stage of their training to become internationally recognized mountain guides. Over the next nine days, they prepared for the final examination, practicing all aspects of summer mountain guiding on the rocks in wind and poor weather, in ice and snow. In addition to technical know-how, the candidates were

33

also tested on their English skills, their ability to relate to visitors and their teaching skills. The highlight was the improvised rescue of a person with head and neck injuries. In Kyrgyzstan there is no organized mountain rescue service similar to those in European alpine countries. Rescues are therefore performed on foot and are more strenuous and time-consuming.

We are delighted to congratulate the seven Kyrgyz mountain guides on the successful completion of their training! After five years of commitment to this project, it is something of a peak experience for us too.

Transition to Independence

In October 2011, all seven mountain guides passed the final examinations in the first training course to become internationally recognized mountain guides. This is a great testimony to five years of commitment to the project.

The aim of the third and final phase of the project (2012-13) is now to consolidate mountain guide training in the local area. A second group is currently undergoing the candidate training and a third group started the preparatory course in February 2012.

For the first time, the Kyrgyz Mountain Guide Association, the KMGA, is organizing the training modules itself. The KMGA now has three qualified mountain guiding experts and trainers - Mikhail Danichkin, Pavel Vorobiev and Oleg Turaev. Together with the IFMGA and the Swiss mountain guide Adolf Schlunegger, we are supporting and accompanying the KMGA during this transitional phase towards independence.

The new training center is already attracting mountaineers from the entire region.

In addition to Kyrgyz participants, the courses are also attracting interest from many neighboring countries as well. Prospective mountain guides from Tajikistan, Uzbekistan, the Russian Federation and other countries have signed up for the third intake.

Photos and more on the Mammut Website http://www.mammut.ch/de/cr_communities_kirgistan.html KMGA: www. http://mguide.in.kg/en/partners

34

5.2 Peru Project Project Launch 2011

Mammut is a partner of the „Cooperación Alpinista Suiza-Perú“ and is providing equipment and knowhow. Together with the Mammut Alpine School, Mammut is also opening up new prospects for local mountain and trekking guides.

In April 2011, our Peru project manager and the former Zurich City Council President Dorothée Fierz traveled to Peru to celebrate the launch of a cooperation with Peruvian mountain and trekking guides. The week was marked by two highlights: the handover of the first donation on April 25 and the official launch event two days later at 4,400 meters above sea level.

Equipment for Mountain & Trekking Guides The official handover took place in the “Case de Guias” in the heart of Huaraz. Half of the 100 or so mountain and trekking guides were able to take part. However, many of them were on their way to other parts of the country for off-season jobs. We decided not to hand out the equipment without some kind of service in return. Along with the Mammut jackets and pants, each guide was given an individual monitoring booklet - the „Libreta Mammut“. The guide had to confirm receipt of the equipment on a checklist and undertake to use it responsibly.

The end result was an orderly material management and checking system, based on the principle of double-entry accounting. Each year, the guides must have the equipment checked by the local nominated „Comité Mammut“ and meet the agreed criteria. The subsequent press conference showed the huge interest in the campaign on the part of the local print media, radio stations and TV channels.

Launch at 4,400 Meters The second major highlight followed two days later. At the annual safety and rescue course held by the Peruvian mountain guide association, the AGMP, in Llaca from April 27 to 30, Mammut celebrated the launch of its partnership with the official mountain and trekking guide associations.

The aim of the event was to inform the guides, as well as the general public, about the new partnership. This event was also followed by numerous local media professionals. Among the main coverage, the local TV channel “Info Huaraz” broadcast a 10 minute article on the event that evening. A total of around 250 people attended the celebration: In addition to the main participants and journalists, these included representatives from business, tourism and politics (including the Mayor of Huaraz), as well as fire fighters, police officers and students.

The structures and responsibilities for Mammut‘s commitment in Peru were also defined and established during this project visit. Our commitment is helping to open up real prospects for Peruvian mountain and trekking guides.

35

Mammut Alpine School

From 2012, Peru is also part of the program organized by the Mammut Alpine School. Customers who book a tour to Peru are also helping to support the Mammut partner project „Cooperación Alpinista Suiza-Perú“.

Mere words barely do justice to the amazing beauty of the Cordillera Blanca mountain region. Huaraz, the starting point for almost all trekking tours, is located at an altitude of 3,100 meters and is the tourist centre of the Cordillera Blanca. This South American mecca for outdoor adventurer lovers is considered to be one of the most attractive regions for hiking, trekking and challenging ice climbing in the whole continent. Wherever you look, perennially ice-covered glacier peaks tower above green valleys. Between these giants nestle scores of crystal clear lakes, ice caves and isolated settlements.

Mountaineering Combined with Social Commitment The Mammut Alpine School works with local mountain and trekking guides for its tours. Tour groups are therefore accompanied by local mountain and trekking guides.

Peru promises an unforgettable experience for all those who visit, while the mountain and trekking guides are being given new prospects for the future.

Pure Mountain Experience With more than 30 ice-capped peaks of over 6,000 meters and more than 50 summits at over 5,500 meters, the Cordillera Blanca is one of world‘s biggest important ranges for climbers. When it comes to beauty, the Peruvian Andes scores highly too, with the Alpamayo (5,947 meters) being considered one of the most beautiful peaks in the world! At the Mammut Alpine School, the mountain experience also represents a social commitment and a percentage of each booking is donated to the Mammut partner project „Cooperación Alpinista Suiza-Perú“.

36

6 | Glossary bSsl

bluesignÂŽ Standard Substances List bluesign technologies maintains a list of chemicals which it classifies according to their safety for humans and the environment. The bSSL is one of the most comprehensive lists in the world. For more information, visit www.bluesign.com

CSR, CR

Corporate (Social) Responsiblity

EOG

European Outdoor Group Mammut is a member and co-founder of the EOG. For more information, visit www.europeanoutdoorgroup.com

FWF

Fair Wear Foundation The FWF is an independent multi-stakeholder initiative. It uses a comprehensive verification system to promote the progressive and ongoing improvement of working conditions. For more information, visit www.fairwear.org

ivbv

International Federation of Mountain Guide Associations For more information, visit www.ivbv.info

sozialaudit

An audit, commissioned and paid for by Mammut, of working conditions in production facilities.

stakeholder

Group with an interest or concern in the company.

For more information, see pages 6-7.

swg

Sustainability Working Group EOG working group on the issue of sustainability within the outdoor sector.

Mammut is a co-founder of the SWG and is actively involved in finding crosssector environmental solutions.

For more information, visit www.europeanoutdoorgroup.com/sustainability-csr

we care

Mammutâ&#x20AC;&#x2DC;s corporate responsibility logo. More information can be found on page 8.

verifizierungsaudit

An audit, commissioned and paid for by the FWF, of working conditions in production facilities.