Nanso Group Sustainability Report 2023 by Nanso

Sustainability Report 2023

Beautiful everyday life since 1921

Nanso Group is a Finnish house of brands established in 1921. Our iconic brands, Nanso and Vogue, are among the most well-known and valued labels in Finland. We believe that timeless design and more sustainable materials contribute to a sense of well-being and a beautiful everyday life.

Nanso – a true classic and beloved icon in Finnish fashion – is renowned for its unique patterns, high quality, and Finnish design expertise. Nanso operates 26 stores across Finland as well as an online shop.

Vogue is one of the most valued sock and hosiery brands in the Nordic countries, offering high-quality products that add a touch of luxury to the everyday life

Revenue

28,4 million

Staff

143 (Average in 2023)

Operating profit 0,2 million Nanso stores

26 (12/23)

*Due to the sale of the sports brand Catmandoo, the discontinuation of wholesale brands in 2023, and the merger of Holmberg Brands Oy on December 31, 2021, the above key figures are not fully comparable across different years.

From Goals to Actions

Sustainability has been part of Nanso Group’s values and practical operations for over 100 years. Our valuable century-old heritage brings with it a broad perspective and an authentic brand story, but it also requires us to preserve the valuable Nanso brand and its parent company’s vitality. 2023 our growth was accelerated by four new store openings during the year: Vaasa, Kluuvi, Turku city center, and Tripla.

The year 2023 was significant for us in terms of sustainability. We completed the sustainability strategy initiated in 2022, published our renewed sustainability report, and systematically improved our sustainability efforts in many areas. A few concrete examples of these efforts include joining the amfori BEPI environmental program as well as signing Transparency Pledge, which promotes transparency in the clothing industry. We will continue to place sustainability at the core of the company even more strongly, as we believe that the demand for more sustainable fashion will continue to grow in the future.

The circular economy has a particularly strong role in our sustainability strategy. We aim to promote the longevity of clothing and prevent unnecessary disposal of our products. Last year, we launched the New Life (Uusi Elämä) collection, which gives our well-conditioned clothes a new life through repair. The purpose of the collection is to slow down the rapid cycle of fashion and promote the circular economy. The concept was warmly received, and there is more demand for it than there are clothes available for repair. We see this as a proof to the good quality and long lifespan of Nanso products.

I am especially pleased that together with all Nanso employees, we have built an encouraging and positive work atmosphere. The good spirit is reflected in joyful moments in workdays, as well as in concrete measurements, as the already impressive numbers in the staff survey improved from 2022. We intend to continue our sustainability efforts together also for the next 100 years!

Rita Holmberg The CEO of Nanso Group

Sustainability at

at Nanso Group

We published our renewed sustainability report in May 2023. The report provided a more comprehensive description of our sustainability actions, impacts, production chain, and future aspirations.

Sustainability Highlights

Nanso’s clothes are designed to bring joy for a long time, both in quality and style. We launched the New Life (Uusi Elämä) collection, which gives our wellconditioned clothes a new life through repair. In 2023, 1,500 pieces from the collection were sold, and demand exceeds what we can supply.

We joined the Finnish Textile and Fashion’s Carbon Neutral Textile Industry 2035 commitment. Additionally, we calculated Nanso Group’s carbon footprint for the first time. This calculation provides us a solid foundation of knowledge about the composition of our carbon footprint and helps us in pursuing our carbon neutrality goals. Read more on page 31.

We became part of the Amfori March 2023. BEPI provides the environmental impacts has begun, and we are collaborating identify potential areas for

We believe that increasing transparency ble fashion industry. In the spring industry’s Transparency Pledge, our transparency. Additionally, suppliers of Nanso and Vogue and the origin of materials (tier

Highlights in 2023

Our staff is exceptionally committed and content. We received excellent results in the employee satisfaction survey, and the already exemplary scores continued to rise.

Managing Sustainability

Sustainability is one of the four strategic focus areas of Nanso Group, and it is managed as part of our daily business operations. We are committed to acting responsibly, transparently, and in accordance with our ethical principles.

In the fall of 2022, we began to develop our sustainability efforts more systematically and established a sustainability steering group. The Nanso Group sustainability strategy was completed in the spring of 2023. The strategy outlines future sustainability actions and goals, guided by stakeholder and legislative requirements as well as consumer and employee expectations. The sustainability steering group reviews the strategy, its actions, and their progress on a quarterly basis. Nanso Group’s sustainability is divided into three themes that help structure and guide our sustainability efforts:

PRODUCTS: CHERISHING QUALITY

PEOPLE: CARING TOGETHER

ENVIRONMENT: ACKNOWLEDGING AND ACTING

PRODUCTS: CHERISHING QUALITY

PEOPLE: CARING TOGETHER

Choices that endure

1. We design timeless and durable products and choose more sustainable materials.

2. We promote the circular economy and extend the life cycle of our products.

Our strength lies in people at home and afar

1. We operate transparently and strive to be a fair partner.

2. We take care of our personnel and communities.

ENVIRONMENT: ACKNOWLEDGING AND ACTING

Actions for the future

1. We commit to carbon neutrality** and reduce our emissions.

2. We use natural resources sustainably and choose resource-efficient partners.

* Goals: Nanso Group’s own operations will be carbon neutral by 2026 (scope 1 & 2). The entire

Nanso Group value chain will be carbon neutral by 2035 (scope 1, 2 & 3).

Our Sustainability Goals

Nanso Group’s business strategy is increasingly intertwined with sustainability. We strive to be an advanced and sustainable house of brands. Our mission is to create meaningful design with over 100 years of expertise.

As part of the sustainability strategy, we set sustainability goals for Nanso Group and established metrics to track their progress in the spring of 2023. Our key objectives are described in the table on the following page.

As part of the sustainability strategy, we set sustainability goals for Nanso Group and established the table below.

THEME

PRODUCTS: CHERISHING QUALITY

GOAL

We design timeless and durable products and prefer and aim to select more sustainable materials.

We promote the circular economy and extend the lifespan of our products.

PEOPLE: CARING TOGETHER

We operate transparently and strive to be a fair partner.

We take care of our personnel and communities.

ENVIRONMENT: ACKNOWLEDGING AND ACTING

We commit to carbon neutrality** and reduce our emissions.

We use natural resources sustainably and choose resource-efficient partners.

*Nanso Group’s own operations will be carbon neutral by 2026 (scope 1 & 2). The entire value chain of Nanso Group will be carbon neutral by 2035 (scopes 1, 2 & 3). These goals are based on the Greenhouse Gas (GHG) Protocol.

established metrics to track their progress in the spring of 2023. Our key objectives are outlined in

METRICS PROGRESS

Growth of more sustainable materials.

UN Sustainable Development Goals

Global sustainability challenges affect us all. In the textile and fashion industry, challenges related to human rights, biodiversity, climate change, energy, and the adequacy of water and raw materials are particularly prominent. Nanso Group’s sustainability work is particularly linked to three of the UN Sustainable Development Goals: *Nanso Group’s own operations will be carbon neutral by 2026 (scope 1 & 2). The entire value chain of Nanso Group will be carbon neutral by 2035 (scopes 1, 2 & 3).

12. RESPONSIBLE CONSUMPTION AND PRODUCTION

• We promote sustainable textile production and manufacture products that are durable both in terms of design and quality.

• We choose more sustainable and certified materials (see Material Goals)

• We launch new circular economy services.

• We encourage consumers to extend the lifespan of products and we communicate our own environmental impact.

8. DECENT WORK ECONOMIC

• We require responsible all our suppliers and reducing their impact.

• We work together with improve the responsibility conditions.

• Our goal is to grow while preserving and

• We take care of the all our employees.

WORK AND ECONOMIC GROWTH

responsible practices from provide guidance in impact.

with our suppliers to responsibility of production in a sustainable manner creating jobs

well-being and safety of

13. CLIMATE ACTION

• We are committed to carbon neutrality*.

• We calculate our carbon footprint annually and reduce our emissions.

• We use natural resources sustainably.

• We choose resource-efficient and carbon-neutral partners.

Nanso Group’s Values

In the spring of 2023, we updated our values together with the The new values reflect our hundred-year-old history, and future aspirations.

Valuing Quality

High-quality and durable products are at the core of our operations. The products of our brands are designed to bring long-lasting joy both in terms of quality and style. We prioritize the use of high-quality and more sustainable materials in our products (read more on page 16). Additionally, we strive to support the longevity of garments through our actions and promote a circular economy.

Valuable Heritage

We see our 100-year-old history as a valuable heritage that provides a broad perspective and an authentic brand story. For over a century, high-quality products and a caring atmosphere have been part of the Nanso Group’s story. The design expertise accumulated over the century also enables an understanding of the high-quality implementation methods of our products. We view all of this as a valuable legacy that we want to cherish for future generations as well.

the entire staff of Nanso Group.

current operations,

Genuinely Caring

At Nanso Group, we genuinely care about both people and the environment. Our strength lies in the people, both near and far, which is why we prioritize the well-being of our personnel and foster an inclusive work environment. We strive to be a truly transparent design house and a fair partner within our community. Being aware of the environmental challenges in the textile industry, we aim to reduce our negative impacts through concrete actions.

Products : Cherishing Choice That

Cherishing Quality That Lasts

Long-Lasting Design

Nanso Group has been known for its high-quality materials and timeless collections for over 100 years.

The idea of comfort has taken many forms over the decades, but the basic concept has remained the same: a garment must both look and feel good.

Our products are designed to withstand the test of time, both in terms of quality and style. The collections are always created as a team effort – everyone’s

Circular Economy in Design

contribution is invaluable.

In the design of Nanso Group’s collection, we always consider the durability, longevity, maintainability, and recyclability of the products (as far as possible). We only produce what we sell. As part of the product development process, we trial and test the products.

• Circular principles are a crucial part of our design process.

• In spring 2023, we defined circular economy principles for design and materials as part of Nanso Group’s sustainability strategy.

• We are increasing the amount of monomaterials to facilitate the end recycling and further processing of products. In 2023, 31% of Nanso’s products by weight, 30% by pieces, and as much as 39% by value were made from monomaterials.

• Our goal is to always design and manufacture products that:

• are made from more sustainable or recycled materials

• can be used for a longer time, cared for, and repaired

• have materials that can be recycled or repurposed.

GOAL:

We design timeless and durable products and select more sustainable materials.

39 % of Nanso’s products are made from recyclable monomaterials.

The Sustainability Begins with Material

For Vogue, sustainability is an essential part of the collection creation We make decisions in collaboration with the design and purchasing and together we consider how incorporate sustainability.

of Vogue Products Material Choices

essential process. collaboration team, to best

We are constantly seeking new materials and yarns from our suppliers, with a particular emphasis on more sustainable options, such as recycled or certified materials. We carefully ensure that recycled materials meet our strict quality standards, as their quality and feel can vary.

We design products to be as durable as possible by adding details that extend their lifespan. We select items for the collection that are production-friendly and do not cause waste. We only order the quantity of products needed, avoiding unnecessary production and disposal. Whenever possible, we use recycled or certified materials in our packaging and avoid over-packaging.

TWe collaborate with long-term suppliers and visit them regularly. We prefer European suppliers. Suppliers from high-risk countries must be amfori BSCI audited. We recommend that our suppliers use renewable energy and focus on energy efficiency in production.

Stricter sustainability requirements have challenged us to actively monitor and anticipate changes, and we have to reconsider packaging labels and product communication in new ways.

Within our team, we foster an open and communicative atmosphere. Every team member can voice their opinions, and we support each other to ensure everything runs on schedule.

At Nanso Group, promoting the circular economy is important, but socks and tights are a very challenging in terms of the circular economy, as they cannot be resold and recycling options are currently limited. Fortunately, technology is advancing in this area as well, and we closely monitor innovations so we can better incorporate the circular economy in the future.

Timeless Products: Nanso’s Cornerstone

For us at Nanso, sustainability creating high-quality products that time and use. We are particularly to continue the work that our customers have valued for over years. Sustainability is one of the important aspects of Nanso’s strategy, and decisions related to it are made all levels, from the board to the day work of every team.

Cornerstone for Over a Century

Nanso’s product development is a team effort where the everyone’s expertise and opinions matter for the final result. In product development, we pay special attention to durable seam structures and overall functionality to ensure the products have the longest possible lifespan.

Material choices have the greatest impact on a product’s environmental impact. In 2023, 34% (measured by pieces) of our materials were more sustainable. The Nanso collection features several trusted materials that we have used for years. We favor materials that are known for their durability and quality and which have received positive feedback from our customers. Whenever we introduce new materials to the collection, we always ensure their durability and comfort.

In product design, we can influence material consumption and minimize unnecessary cutting waste in various ways. For example, the number of seams can affect how a product fits into the cutting plan. Sometimes, we add a seam to the back to make material usage as efficient

as possible. We prefer patterns that can be cut in two directions to optimize material use.

Sustainability-related legislation is tightening, and it also affects our daily work. We are working on development related to the digital product passport, which, when implemented, will enhance supply chain transparency and provide more detailed information about manufacturing and lifecycle specifics for each product. means that last particularly proud over 100 the most strategy, made at the every -

For us, job satisfaction is at the heart of our work culture. We nurture a strong sense of camaraderie and an enthusiastic attitude towards work. When faced with challenges, we seek solutions and, if necessary, adjust our work methods or processes. We value efficient working hours within the regular workday to ensure that there is enough time for leisure and relaxation.

More Sustainable Materials

The fiber production of textiles constitutes a significant portion of the product’s environmental impact. Through material choices, we can influence the emissions and durability of the product’s entire lifecycle. Our goal is to increase the use of more sustainable materials in the collections of Nanso and Vogue.

At Nanso Group, we take responsibility not only for the longevity and quality of our products but also for what happens to them after they are no longer in use. Alongside their long lifespan, considering the recyclability of textiles is an important part of collection design process in line with the principles of a circular economy. In the future, we will increase the number of products made from mono-materials and reduce the proportion of elastane in material blends.

Materials That We Prefer

• more sustainable cotton: GOTS, BCI, Fairtrade

• recycled materials

• organic materials

• fibers that consume fewer natural resources (e.g., water), such as linen and hemp

• more sustainable cellulose fibers (e.g., TENCEL™ and LENZING™ ECOVERO™)

• material innovations (e.g., Infinna, Spinnova)

• sertified animal fibers (e.g., RMS, RWS, and RAS

• FSC-certified cardboard

Materials We Do Not Use

• cotton from regions with human rights risks (e.g., Uzbekistan and China’s Xinjiang Uyghur Autonomous Region)

• flax from Belarus

• mulesed merino wool

• non-certified mohair

• angora

• real fur

• down

Criteria for Selecting Animal-Derived Materials

Part of our sustainability efforts involves considering animal rights. We always strive to choose certified animal-derived fibers whenever they are available. In Nanso’s 2022 collection, animal-derived fibers (wool, mohair, alpaca) accounted for 3% of all fibers used, and 88% of these were certified (RMS, RAS, RWS). This percentage will increase in future collections.

At Nanso Group, we never use angora, non-certified mohair, down, or wool produced using the mulesing method. These fibers are associated with risks of animal rights violations and unnecessary suffering for animals.

Materials Used by Nanso Group in 2023

Nanso

In Nanso’s 2023 collections, cotton continued to play a major role (50.5%). The proportion of more sustainable materials decreased by one percentage point in terms of pieces (2022: 35%, 2023: 34%) but increased in monetary terms (2022: 42%, 2023: 43%). The slight decline was influenced by a shift from organic cotton to conventional cotton in home textiles and bags. The use of Tencel and Ecovero viscose also decreased. The increase in monetary terms was driven by the purchase of certified yarns for knitwear and the switch of outer jacket main materials to recycled polyester.

Vogue

In Vogue’s 2023 collections, polyamide and recycled polyamide remained the most used materials (a total of 61%) as they are the primary materials for tights, along with elastane. The proportion of more sustainable materials in the Vogue brand also increased in terms of pieces (2022: 16.5%, 2023: 18.0%) but decreased in monetary terms (2022: 18.4%, 2023: 15.9%). The increase in the number of pieces was due to a high volume of purchases of organic cotton 5-pack socks, but their unit price is lower compared to tights.

Development of More Sustainable Materials in Purchased Pieces

pcs

Nanso

Vogue

Used Materials 2023 (%)

Percentage of Materials (%) in Purchased Kilograms in 2023

Cotton 43,8 %

Modal 11,6 %

Linen 8,6 %

Recycled Polyester 6,8 %

Viscose 6,7 %

Ecovero Viscose 5,7 %

Organic Cotton 4,8 %

RWS Wool and Wool Blends 2,2 %

BCI Cotton 2,2 %

Polyester 1,9 %

Tencel 1,9 %

Elastane 1,7 %

Polyamide 1 %

Others 1,5 %

Polyamide 55 %

Elastane 7,8 %

Cotton 6,6 %

Acrylic 5,5 %

Wool 4,8 %

Viscose 4,6 %

Econyl 4,3 %

Polyester 4,2 %

The Proportion of More Sustainable Materials

Percentage of More Sustainable Materials (%) in Purchased Pieces in 2023

Organic Cotton 2,4 %

Lyocell 2,2 %

Recycled Polyamide 1,8 %

Others 0,7 %

VOGUE

Nanso Group’s Material Goals

Our brands, Nanso and Vogue, are inherently different in nature and product types. For this reason, the materials they use and the availability of more sustainable materials differ from each other.

We divide our material goals into four categories:

• materials we do not use

• materials we accept

• materials we prefer

• brand-specific goals for increasing the use of more sustainable materials

Nanso Group’s Material Goals

WE DO NOT USE WE ACCEPT WE PREFER GOALS

Cotton from regions of human right risks (e.g., Uzbekistan and China’s Xinjiang Uighur Autonomous Region)

Conventional cotton

Certified cotton (GOTS, BCI)

Organic cotton & in-conversion cotton

Recycled cotton

Oeko-Tex

Conventional viscose Modal, and Bamboo viscose

Linen from Belarus or Russia

Conventional synthetic fibers

Lyocell ECOVERO™

NANSO: By 2028, 75% of the cotton we use will be more sustainable cotton (certified, organic, recycled)

VOGUE: By 2025, 90% of the cotton we use will be more sustainable cotton (certified, organic, recycled)

NANSO & VOGUE: By 2028, 75% of the cellulosic fibers we use will be more sustainable (certified, organic, recycled)

SITUATION 2023

NANSO: The share of more sustainable cotton in all cotton used was 14%.

VOGUE:

The share of organic cotton in all cotton used was 27%.

Elastane

Linen (and hemp)

Certified linen (GOTS, European Flax)

Organic linen

Recycled linen

Recycled and certified synthetic fibers

Bio-based synthetic fibers

NANSO: We will continue to favor linen in our collections. We will expand the variety of linen qualities.

NANSO: By 2028, 95% of the synthetic fibers we use will be more sustainable (certified, recycled)

VOGUE: By 2028, 40% of the collection will consist of more sustainable products (certified, recycled, biodegradable).

NANSO & VOGUE: We are following the development of elastane and will switch to recycled elastane when it becomes available. We are reducing the use of elastane in blends.

NANSO: The share of certified cellulose fibers in all cellulose fibers was 28.5%.

VOGUE:

The share of lyocell in cellulose fibers was 32%.

NANSO: 100% of our linen is European Flax linen.

NANSO: The share of certified synthetic fibers in all synthetic fibers was 70%.

VOGUE:

The share of recycled polyamide was 10% of all polyamide.

NANSO: In 2023, we tested changing the Ecovero viscose/elastane knit from a 95/5 composition to 98/2. We will fully transition to this in 2024. Recycled material is not yet in use.

VOGUE: Not yet in use.

Wool

New cellulose-based fibers (Recycled Fibers): Spinnova, Infinna, Circulosa

Certified wool (RWS or equivalent) Recycled Wool

NANSO & VOGUE: We monitor the development of fibers and will adopt their use once they become commercially available.

NANSO: By 2023, 100% of the wool we use will be more sustainable (RWS or equivalent).

VOGUE: By 2028, 50% of the wool we use will be more sustainable (RWS or recycled).

SITUATION 2023

Currently not commercially available.

NANSO: Of all the wool used, 92% was certified.

VOGUE: Not in use.

Mulesed Merino Mulesing-free Merino

Alpaca

Sertified alpaca (RAS)

Non-certified Mohair

Certified mohair (RMS)

We only use mulesing-free merino wool

NANSO: By 2023, 100% of the alpaca we use will be more sustainable (RAS)

VOGUE: By 2028, 50% of the alpaca we use will be more sustainable (RAS)

NANSO: By autumn 2023, 100% of the Mohair we use will be more sustainable. VOG: Not in use.

NANSO: 100% of the Merino we use is mulesing-free.

NANSO: 100% of all alpaca wool is RAS certified.

NANSO: 100% of all mohair is RMS certified.

Conventional leather

Certified leather

NANSO: Used only in samples, LWG certified leather. Down Sorona insulation instead of down.

We only use Sorona.

Angora

CASE: More Sustainable Packaging

The purpose of packaging is to protect our products so that they reach our customers in perfect condition. We have been committed for a long time to the development of more sustainable packaging materials and the exploration of alternatives with smaller environmental impact. For example, our online store poly bags are made of 100% recycled plastic.

NANSO’S PACKAGING

• care labels made from recycled polyester

• hangtags made from FSCcertified cardboard

• product packaging plastic bags made from recycled plastic

• In the fall of 2023, we decided to switch the hooked nightwear packaging to Nanso protective bags. With this change, we can eliminate cardboard and reduce plastic waste from the hooks. The change will take effect with the summer 2024 collection.

VOGUE’S PACKAGING

• We aim to reduce the use of packaging materials and plastics, as well as minimize waste across the board.

• We have increased the use of recycled plastic in our packaging.

• product packaging made from FSC-certified cardboard

• The plastic bags used for product packaging are made of recycled or bio-based plastic.

Packaging Materials Used by Nanso Group

Tonnes

Circlar Economy at Nanso Group

Circular economy is a key part of Nanso Group’s sustainability strategy. Ensuring the longest possible lifespan for our garments is significant to us. Circular economy and recyclability are considered from the design stage, and our products are made to withstand both time and use, both in quality and appearance.

We extend the lifespan of our products through warranty repair services and by offering garment care products. Additionally, we are developing a second-hand concept in our stores and are redirecting used Nanso products through our partner for resale. We continuously explore circular economy opportunities, and in the spring of 2023, we began integrating circular economy principles into our design process.

New Life for Clothing Treasures

In the spring of 2023, we launched the New Life (Uusi Elämä) collection, which gives well-maintained Nanso garments a new life through repair and care serfice. The collection aims to slow down the rapid cycle of fashion and promote the circular economy. It consists of new and well-maintained used clothing that has been returned to us, often due to minor defects. The garments are refurbished in Finland and then given a new life in selected Nanso stores.

Menddie Warranty Repair

At Nanso, we consider the entire lifecycle of our products, which is why we offer a warranty repair service through Menddie. This warranty repair applies to products used for less than 12 months, in accordance with consumer protection laws. The process is straightforward: after contacting Nanso’s customer service, the customer receives an email with a warranty repair order and a shipping activation code. The customer then sends the item to be repaired free of charge via Matkahuolto, and the repaired product is returned within approximately a week.

Longer Lifecycles with Garment Care

A well-maintained garment retains its value and brings joy for a long time. With the right products, garment care is both easy and enjoyable. Our selection includes user-friendly Stockholm Steamery garment care products, and we also provide garment care tips on our website.

Emmy 2nd Hand Sales Service

Since 2020, we have partnered with the second-hand buying and selling service Emmy. This collaboration aims to provide customers with an easy way to recycle their old clothes while reducing the environmental impact throughout the garment’s lifecycle. Customers can bring their clothes for recycling to Nanso stores, from where they are sent to Emmy for sale on behalf of the customers. Customers can choose to redeem their sales proceeds as Nanso gift cards, with Nanso offering an additional 10% on the sales amount. Additionally, we reward our loyal customers with points for each sales shipment sent to Emmy. This service is available at all Nanso stores.

Sarastus linen dresses are produced through the following stages:

DESIGN

Helsinki, Nanso

Head Office

COUNTRY OF ORIGIN FOR LINEN

Innoflax, France

(*European Flax®)

YARN SPINNING

Linificio y Canapificio

Nazionale SPA, Italy

MATERIAL KNITTING AND DYEING

Esenteks Tekstil, Turkey

CASE: The Sarastus Dress – From Linen Field to Summer Favorite

The Sarastus linen dress has been one of Nanso’s most popular items since its launch in the spring of 2021. Designer Henni shares the story behind the Sarastus dress: ’I wanted to design a versatile and easy dress in which every woman could feel beautiful. The Sarastus dress is a true wardrobe staple, easy to

style for the city, the cottage, or special occasions.’ Henni visited the Turkish factory in January 2023. ’It was wonderful to see the dress in production. Our production staff are highly skilled professionals. During the visit, we also conducted spot checks on the dresses to ensure high quality.

PATTERN MAKING, CUTTING, AND SEWING

IYA Tekstil, Turkey

FREIGHT

Road transport by truck (Varova)

STORAGE AND DISTRIBUTION FOR SALES

Pennala Logistics Center, Finland

USAGE

The Sarastus dress is ready for years of wearing.

*European Flax® ensures traceability for flax fibers grown in Europe, cultivated without artificial irrigation and without genetic modification.

CASE: Vogue Socks Switched to Organic Cotton

We have been using organic cotton in Vogue products since 2021 and have increased the proportion of organic cotton each year. In 2023, our commitment leaped forward when we switched the material of five-pair packs of the popular Vogue Cotton Basic ankle socks and Cotton Basic Sneakers socks to organic cotton.

At the same time as transitioning to organic cotton, we began collaborating with our new Turkish sock supplier, Boleron. The yarn we use is GOTScertified, as is nearly all of our organic cotton.

Using GOTS-certified material reinforces our goal of increasing the use of more sustainable materials. We are proud to offer our customers even more responsible options without compromising on quality.

Socks are produced through the following stages:

DESIGN

Helsinki, Nanso

Group’s Head Office

COTTON certification and country of origin: GOTS , Turkey YARN SPINNING Saftat, Turkey

YARN DYEING

Kumas Tekstil, Turkey

SOCK PRODUCTION

Bolero Socks, Turkey

FREIGHT

Road transport by truck (Varova)

STORAGE AND DISTRIBUTION FOR SALES

Pennala Logistics Center, Finland

People: Caring

Our Strenght Lies in People

Caring together

People at Home And Afar

Principles of Sustainable Production

In our production practices, we adhere to amfori BSCI principles, which aim to enhance working conditions across international supply chains. We have been a member of amfori BSCI since 2008.

We always strive to build sustainable partnerships, through which we encourage and guide our suppliers in their sustainability efforts. In March 2023, we joined amfori BEPI , which we hope will enable even better consideration of environmental issues in our value chain.

Our Criteria for Supplier Selection

We collaborate only with partners who align with Nanso Group’s values and sustainability criteria. We have strict criteria for initiating partnerships and aim for long-term collaboration with our partners. All Nanso Group’s partners must commit to adhering to:

1. Nanso Group’s Code of Conduct

2. Nanso Group’s Supplier Agreements

3. Amfori BSCI Principles

Code of conduct

We require our suppliers to commit to Nanso Group’s Code of Conduct, which prohibits the use of harmful chemicals, child labor, forced labor, and discrimination, among other principles. Nanso Group’s Code of Conduct was updated in the spring of 2023 to align with our sustainability strategy and meet the demands of our stakeholders.

Social Responsibility Requirements

For tier 1 suppliers in high-risk countries, we require compliance with our social responsibility criteria. As part of these criteria, we also accept the following third-party audited certifications or programs:

• amfori BSCI

• Sedex SMETA

• SA 8000

• Fair Labour Association

• Fair Wear Foundation

• WRAP

Nanso’s suppliers from high-risk countries are 100 %

BSCI or Sedex audited (2023)

Of Vogue’s suppliers from high-risk countries, 82 % are BSCI or Sedex audited (2023)*

GOAL 2025:

All tier 1 suppliers located in high-risk countries will be amfori BSCI (or equivalent) certified.

Supplier audits

Sedex 51 %

BSCI 39 %

Suppliers from non-risk countries 10 %

BSCI 42 %

Sedex 19 %

Suppliers from non-risk countries 30 %

Non-audited, risk country suppliers 9 % **

* the Sedex audit process for a non-audited factory was initiated in 2023

** the Sedex audit process was initiated in 2023

NANSO VOGUE

The Origin of Our Products

Nanso Group is a genuinely transparent Finnish design company. For us, transparency means knowing our product supply chain and publishing this information on our website.

We have published the supplier lists for Nanso and Vogue since 2020. To further enhance transparency, in the spring of 2023, we committed to the Transparency Pledge , which promotes transparency in the fashion industry.

Transparency Guides Our Operations

• Nanso Group is committed to transparent operations.

• Product-specific information for the country of manufacture can be found on our website.

• We have been listing our TIER 1 suppliers on our website since 2020.

• In the spring of 2023, we also added information about TIER 2 suppliers (subcontractors and material suppliers) to the Nanso and Vogue websites.

• The listings will be updated once a year.

• We are part of the Transparency Pledge, which further strengthens our commitment to transparency.

The Countries of Origins*

Turkey 83 %

China 8 %

Portugal 8 %

Latvia 1 %

Lithuania ja Estonia 0,3 %

* Countries of origin for Tier 1 purchased items

Serbia 32 %

Italy 22 %

Turkey 22 %

Portugal 10 %

Estonia 6 %

China 3 %

Cambodia 1 %

NANSO VOGUE

Nurturing a Strong Team Spirit

At Nanso Group, we have a sincere desire to make everyday life beautiful and comfortable. Honesty and authenticity also create a wonderful work environment. An essential part of Nanso Group’s corporate culture is treating everyone equally, fostering a strong team spirit, and cultivating a pleasant work atmosphere.

Nanso Group has an exceptionally strong team spirit; we enjoy working and do meaningful work together. We care about our colleagues, trust our supervisors, and treat everyone equally. We will continue to nurture these strengths in the future.

The office staff at Nanso Group participate in development discussions every six months, where individual goals and skill development are defined for each employee. In the stores, development discussions are held annually.

Employee Satisfaction at an Excellent Level

Employees at Nanso Group are generally very satisfied with their work and the work environment. Employee satisfaction is measured regularly, and employees are involved in the development of both their own work and sustainability initiatives. In October 2023, we conducted an employee satisfaction survey, which showed even more impressive results compared to the previous year. The average score for work engagement was 4.2 (excellent on a scale of 1-5, with a response rate of 88%). The improvement in our sustainability efforts was also reflected in the survey, as the statement ’Investments in sustainability efforts help us succeed’ received a score of 4.4.

Strengths We Will Continue to Cherish

+ I have positive interactions at work (4,7)

+ I am able to work in accordance with the company’s values and culture(4,6)

+ I enjoy working with my direct supervisor (4,6)

+ My workplace has a caring atmosphere (4,5)

+ All employees are treated equally regardless of age, race, gender, physical attributes, etc. (4,5)

+ Supervisors act in line with the company’s values and culture (4,5)

Job Satisfaction 2023

4,2 = Excellent

Next, we will focus on developing the following areas

• regular recognition and feedback for work

• planning of tasks in advance and focusing on one task at a time

• improving goal-setting and planning in work

• improving operational development and performance compared to competitors

Duration of Employment Age Distribution of Employees

Less than 2 years 54 %

2-5 years 15 %

6-10 years 15 %

11-20 years 10 %

Over 21 years 5 %

Less than 25 years 20 %

26-35 years 24 %

36-45 years 22 %

46-55 years 24 %

Over 56 years 10 %

Average duration of employement 5 years eNPS* 2023 55 % = excellent (in 2021 the score was 36 %)

The average age of employees

39,5 years Of all the staf 100 % are women

*Employee Net Promoter Score (eNPS) is a recommendation index, where employees respond on a scale of 0-10 to the question: ”How likely are you to recommend the company as a workplace?”. A score that exceeds 20 is considered an excellent result.

CASE: Working at Nanso

Nanso’s flat organizational structure facilitates close communication and efficient information flow, enhancing decision-making. As a team, we have the ability to influence our own work, its organization, and scheduling. Nanso employees share similar values and greatly appreciate each other and each other’s contributions.

We have a common direction, shared goals, and a strong team spirit. Problems are solved together, leveraging everyone’s expertise. We receive everyday support from our supervisors, who are also familiar with the practical, grassroots level of work and its challenges. The openness of our progress meetings is crucial for ensuring everyone has the same information and clear goals.

Employee well-being is prioritized and workloads are monitored to prevent them from becoming overwhelming. Help is always available when needed. Flexibility and trust—such as the option to work remotely—provide peace of mind and significantly help in maintaining balance. Additionally, we uplift our daily work with cheerful coffee breaks where we celebrate successes and milestones.

Sari, Buyer

Nanso’s office has a cheerful and pleasant work environment where everyone helps and supports each other without rigid hierarchy. Mutual support in daily life is evident in trust among colleagues, openness, and good communication. Help is always available from coworkers, whether it involves their own team or others.

The employer considers different life situations and adjusts as needed. The company also makes sure to acknowledge successes and is open to development and new ideas.

Matilda, Customer Service

At Nanso stores, a positive atmosphere is maintained through various means. This is reflected in keeping communication upto-date, using a positive tone, and paying attention to small, thoughtful gestures.

Support from supervisors and colleagues is evident in my daily work. I feel comfortable discussing anything with them, whether good or bad, and receive both support and understanding. The same applies in reverse! We are able to give and receive constructive feedback. Appreciation for work and learning new things help sustain motivation.

At Nanso, employee feedback is heard, requests for time off are met, and there is genuine interest in how employees are doing All of this has a significant impact on work motivation, as it reflects in our behavior both at work and free time.

Elena, Sales Advisor

Environment:

Acknowledging Actions for

Acknowledging and Acting

Future

Aiming for Carbon Neutrality

Nanso Group aims for carbon neutrality. In the spring of 2023, we joined the STJM’s Carbon Neutral Textile Industry 2035 commitment. This commitment is a valuable tool for us, helping us assess the climate impact of our operations and mitigate it accordingly. We have access to a textile-specific calculator for measuring greenhouse gas emissions and we receive training on climate-related issues.

We can impact emissions by choosing more sustainable materials and partnering with environmentally responsible collaborators. We divide the carbon neutrality goal into our operations emissions (scopes 1 & 2) and the entire value chain’s emissions (scopes 1, 2 & 3). Our carbon footprint is presented on the following page.

GOAL 1: OUR OPERATIONS ARE CARBON NEUTRAL BY 2026*

Nanso Group’s own operations will be carbon neutral by 2026 (scope 1 & 2).

The goal includes our direct emissions (scope 1) and purchased energy emissions (scope 2).

GOAL 2: OUR ENTIRE VALUE CHAIN IS CARBON NEUTRAL BY 2035

The entire Nanso Group’s value chain will be carbon neutral by 2035 (scopes 1, 2 & 3) in line with the Finnish government’s targets.

96,5 % of our climate impact comes from scope 3 emissions

88 % of our emissions are caused by material production.

* The goals are based on the Greenhouse Gas (GHG) Protocol.

Nanso Group’s Carbon Footprint 2023

We calculated Nanso Group’s carbon footprint using the STJM’s ’Carbon Neutral Textile Industry 2035’ commitment calculator. The carbon footprint for 2023 was 3,827.1 t CO2e, which is lower than last year’s (2022: 5,630.47 t CO2e). The main reasons for the reduction in emissions were the exclusion of the Catmandoo brand from the calculations, a decrease in Nanso’s packaging and fabric material quantities compared to the previous year, and the use of renewable energy, such as hydro and wind power.

The 2023 calculation was significantly more specific compared to the previous year, as we included new emission sources to it. Emissions decreased although the calculation expanded to include district heating, business travel, emissions from Transval logistics, and more detailed electricity consumption data. In 2023, the majority of Nanso Group’s carbon footprint (96.5%) came from Scope 3 emissions. Approx. 88% of our total emissions were generated from the use of textile materials.

Electricity consumption increased in 2023 due to a cold winter and the opening of new stores. However, emissions decreased despite the rise in consumption (2023: 53.0 t CO2e / 2022: 103.82 t CO2e). In 2022, consumption data was largely estimated, whereas in 2023 we received most of the consumption data directly from landlords. In 2023, over 80% of the data was based on actual consumption, compared to just 37% in 2022. The carbon footprint for 2023 was reduced by the increased use of hydropower, wind power, and solar energy.

In the textile industry, production volumes vary from year to year. To obtain comparable data across different years and to target emission reductions effectively, we calculated our carbon footprint for the first time in relation to the number of units produced. This allows us to compare this figure annually. Our emission reduction efforts have clearly been effective, as the figure decreased by approximately half a kilogram per produced unit compared to the previous year. With more specific emission sources and the exclusion of Catmandoo, the calculation will be even more comparable in the future.

Distribution of Emissions per Produced Unit

Carbon Footprint, scopes

Scope 1: 0,1 %

Scope 2: 3,4 %

Scope 3: 96,5 %

Climate Emissions

2,5 kg CO2e per produced unit Nanso Group’s Emissions

3.827,1 tCO2

equivalent to approx. 372 Finnish individuals’ annual carbon footprints

Notes on the 2023 Calculation:

Scope 1 (Direct Emissions)

• Emissions from the company’s vehicle decreased slightly as renewable diesel was used in addition to regular diesel in 2023.

Scope 2 (Purchased

Energy)

• District heating is accounted for in the calculation for the six stores where it is used. The contribution of district heating to emissions was 78.38 t CO2e.

• District cooling is not included in the calculation as it is not used.

Scope 3, Upstream Upstream (Value Chain / Production)

• Emissions from the ’yarns, fabrics, and knits’ and ’packaging materials’ categories decreased significantly in 2023 due to the exclusion of Catmandoo from the cal culation. Additionally, the import volume for the Nanso brand was 37,000 kg (-17%) less than in 2022, which also contributed to the reduction in emissions.

• In the ’yarns, fabrics, and knits’ category EcoVero viscose was included in regular viscose, as EcoVero was not available in the calculator. Similarly, alpaca includes mohair because there was no specific category for mohair.

• Emissions data from Transval logistics was included in the calculation for the first time in 2023.

• Business travel was also added to the 2023 calculation for the first time and was not included in the 2022 calculation.

• Emissions from ’transport to the factory or warehouse’ decreased. For the 2023 calculation, emission data was obtained directly from the transport companies, making the calculation more accurate.

Scope 3, Downstream (Value Chain / Procurement)

• ’Emissions from ’transport to customers’ decreased slightly. Unlike in 2022, more precise emission data from transport companies was utilized for this category.

The calculation is based on the principles of the Greenhouse Gas (GHG) Protocol. The calculation includes:

• Direct emissions from our operations (Scope 1)

• Emissions from purchased energy (Scope 2)

• Indirect emissions related to the supply chain (Scope 3), where applicable.

The calculation does not include:

• Commuting to the workplace (Scope 2)

• Waste (Scope 3)

• Emissions from product maintenance, usage, and disposal (Scope 3)

Collaborating to Reduce Environmental Impact

Nanso Group’s operations are closely linked to the environment, as both the production of our products and the availability of materials depend on natural resources.

Amfori BEPI

We strive to reduce our environmental impact in many ways: through circular economy solutions, focusing on product quality and longevity, selecting more sustainable materials, and optimizing the use of natural resources. These actions promote the more sustainable use of natural resources in the long term. We support the protection of biodiversity through donations and campaigns, such as our collaborating with the John Nurminen Foundation.

We joined the amfori BEPI program in 2023, which aims to identify, monitor, and develop the environmental efforts of our suppliers. Through BEPI membership, we strive to strengthen the progress of environmental responsibility within our supply chain. Out of Nanso Group’s 39 suppliers located in risk countries, 10 are currently participating in BEPI. The work is progressing step by step. To maximize impact, we have decided to focus our efforts on the largest suppliers of Nanso and Vogue and have initiated joint assessments.

We Assessed the Impacts of the Value Chain

We participated in Finnwatch’s research project

”Reducing Import Emissions,” which examined the management of value chain emissions in companies sourcing from high-risk countries.

The survey was sent to 45 Finnish member companies of the Amfori BSCI sustainability network. From Finnwatch’s research, we identified the need to i nvestigate the environmental responsibility of our suppliers in the value chain more closely.

Supplier survey on energy sources and carbon neutrality

We conducted a survey among Nanso’s and Vogue’s active suppliers to assess their energy sources, readiness for emission reductions, and plans for achieving carbon neutrality. The survey was sent to 35 suppliers, and all of them responded.

In Nanso’s production, 11% of the energy used was renewable, while 89% was non-renewable, relative to production volume. Many suppliers have plans to increase the share of solar energy in particular. For Vogue, 26% of the energy used in production was renewable, while 74% was non-renewable.

25% of the responding suppliers are committed to pursuing carbon neutrality. 71% of respondents reported plans to reduce emissions, but only 20% measure their carbon footprint. Emission reductions are primarily pursued through a shift to renewable energy.

Among the suppliers,

25 % are committed to pursuing carbon neutrality

11 % of Nanso products* are made using renewable energy

26 % of Vogue products* are made using renewable energy

* The calculation is based on production volume.

CASE: Nanso Stores - Sustainability as a Concept

Sustainability is a key value for Nanso, and we strive to highlight it in our stores as well. In 2023, we opened stores in four new locations: Vaasa, Kluuvi, Turku city center, and Tripla.

In our new stores, we aim to use natural materials, such as FSC-certified wood for hangers. However, when opening new locations, we remain flexible regarding existing surface materials and avoid unnecessary renovations in wellmaintained spaces.

We were the first in Finland to introduce mannequin forms made from bio-degradable plastic, produced through 3D printing. These 3D-printed mannequins are as durable as fiberglass mannequins but offer the advantage of lower climate emissions. If a part of the mannequin breaks, only the biodegradable section needs to be replaced, rather than the entire mannequin.

Biodegradable PLA plastic is produced by fermenting starches, such as corn or sugarcane. PLA plastic can be reused as a biomaterial, composted in industrial facilities, or incinerated as an energy source.

Our commitment to the circular economy is also evident in our stores. Last spring, we introduced the New Life (Uusi Elämä) collection to some locations, which quickly gained popularity. Additionally, customers can bring clothes for resale through the Emmy partnership. Our stores also feature Stockholm Steamery’s garment care products.

We were the first in Finland to introduce mannequin forms made from biodegradable plastic, produced through 3D printing.

Transport Partnerships

We aim to reduce our environmental impact by optimizing transportation and prioritizing low-emission and carbon-neutral logistics partners.

Nanso Group’s main partner is Posti, which handles domestic customer deliveries as well as some e-commerce shipments, alongside Matkahuolto.

Import shipments are managed by the Finnish family-owned company Varova. Export shipments, e-commerce deliveries abroad, and courier services are handled by UPS.

Central Warehouse in Pennala

The Nanso Group’s central warehouse is outsourced to Transval’s logistics center in Pennala, Orimattila. The facility covers an area equivalent to 10 football fields, with Nanso Group utilizing 4,400 m² of this space. Transval’s services are carbon-neutral. The warehouse also

addresses energy and environmental concerns, featuring a hybrid heating system that utilizes geothermal and biogas. The carbon footprint of storage and parcel handling operations at the Pennala facility are included in Nanso Group’s 2023 carbon footprint calculation.

Posti’s Renewable Deliveries

Posti aims to transition its operations to be fossil-free by 2030. In 2022, Posti transported over 10 million packages using fossil-free methods, and this number is rapidly increasing. In the spring of 2022, Posti became the world’s first logistics company to have its net-zero emissions target approved by the Science Based Targets initiative.

Logistics Emissions

CASE: Protecting Marine Nature with the John Nurminen Foundation

Every year, Nanso donates all profits from the sale of shopping bags to protect the Baltic Sea. The John Nurminen Foundation carries out concrete actions to protect the Baltic Sea and strives to ensure that the cultural heritage related to the sea is passed on to future generations. Their work is guided by measurable results, impact, and the best interests of the Baltic Sea.

In 2023, the total amount collected from the sale of plastic bags was donated in full to the John Nurminen Foundation. The donated sum was €10,000.

Since 2019, we have donated over €36,000 to the protection of the Baltic Sea.

Nanso Group Oy Vilhonvuorenkatu 11 A, 00500 Helsinki asiakaspalvelu@nansogroup.com