Workwear Group - Sustainability Progress Report 2024

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SUSTAINABILITY PROGRESS REPORT 2024

October 2024

Workwear Group acknowledges the Traditional Owners and Custodians of Country throughout Australia and pays respects to Elders past and present.

Workwear Group acknowledges Māori as tangata whenua and Treaty of Waitangi partners in Aotearoa New Zealand.

FOREWORD

Executive General Manager

Prashant Billimoria

I am proud to present Workwear Group’s FY24 Sustainability Report and to reflect on the strides we have made in our sustainability journey this year. Embracing sustainability as a core component of our business strategy has empowered our team members to innovate, to challenge and to truly begin ‘shifting the dial’ on how we create a more positive impact for the environment, for our customers, and for our community.

As awareness and expectations around corporate sustainability continue to grow, we understand the importance of leading the charge. This means constantly reassessing our goals, refining our practices, and ensuring we provide clear and verifiable information about our sustainability efforts, as detailed in this report.

As well as providing valuable insight into our sustainability progress, this report is also a worthy celebration of the efforts of the Workwear Group team. It is through their hard work and commitment that Workwear Group is able to deliver on its vision to be a leading Australian workwear provider.

I

am incredibly proud that Workwear Group has continued to make strides in sustainable practices this year, driven by our commitment to more circular product design and manufacturing, ethical production processes, resource and emissions reduction efforts and community support.

I am also proud to report that in FY24, Workwear Group exceeded our First Nations procurement target for the first time and although falling just short of our employment target, significantly improving this area from 0.2% 30 June 2023 to 1.28% at 30 June 2024, demonstrating effectiveness of the

Reconciliation Working Group. Looking ahead, we will continue to build on these efforts with the introduction of our new First Nations Scholarship program next year to further support talent development and collaboration with First Nations education communities.

Workwear Group’s sustainability efforts resonate strongly with our customers and stakeholders and their support has been instrumental. We are committed to working hand-in-hand with customers to develop solutions that not only meet their needs but align with their sustainability goals. Workwear Group’s receipt of the 2024 Westpac Award for Supplier Sustainability and NZ Safety Blackwoods’ Sustainability Supplier of Year 2023/2024 was a valuable endorsement of our approach and a genuine highlight for our team.

I extend my heartfelt thanks to everyone at Workwear Group who has contributed to our sustainability journey. Our progress reflects not only the passion and dedication of our team but also the trust and support of our customers and stakeholders. Together, we’re not just responding to a changing world; we’re making a positive impact for our customers and our community. With your continued support, I’m confident that Workwear Group will continue to drive improvements in sustainable workwear, setting new standards for our industry in the years to come.

About Workwear Group

Workwear Group is proud to be a leader in specialised uniform solutions, serving more than one million customers worldwide from its operations in Australia and New Zealand.

Owned and backed by Australian-listed company, Wesfarmers Limited, Workwear Group’s portfolio includes iconic Australian brands like Hard Yakka, KingGee and NNT. These world-class apparel, uniforms and footwear ranges have been part of the Australian DNA for decades.

Workwear Group also provides a bespoke uniforms solution program - available through Workwear Group Uniforms – to over 150 customers in Australia and New Zealand, including Qantas, Westpac, Australian Defence Force, Queensland Health, and Fire and Emergency New Zealand.

Port Melbourne, VIC

Silverwater, NSW

Hendra, QLD

Thebarton, SA

Albany, NZ

Welshpool, WA

From humble beginnings supplying garments to the Australian defence personnel in World War II, Workwear Group brands are now proudly stocked in over 1000 retail outlets nationwide. Included in this footprint is Workwear Group’s franchise brand, Totally Workwear, which is Australia’s largest network of locally owned and operated workwear specialist stores for iconic workwear, footwear and safety brands.

Workwear Group believes that its positive workplace culture and commitment to continuous improvement, is critical to the success of its business. This includes a targeted focus on corporate social responsibility and sustainability across environmental, social and governance factors.

Workwear Group strives to continually improve its ethical compliance, sustainability, and sourcing practices and continues to explore and test new ways to improve the circularity and sustainability properties of its products, and its business model. •

Melbourne Airport

Distribution Centre, VIC

Welshpool Distribution Centre, WA

Mascot Distribution Centre, NSW

Albany Distribution Centre, NZ

Totalcare Auckland and Christchurch

Queensland ThirdParty Logistics (3PL)

Distribution Centre, QLD

Workwear Group’s Approach to Sustainability

Workwear Group is committed to lead in ethical production, sustainability and sourcing to ensure its workwear products have a positive impact on customers, suppliers and the communities in which they operate.

SOURCING

Material Issues

• Ethical sourcing and human rights

• Product safety

ENVIRONMENT

Material Issues

• Waste

• Packaging

• Climate change resilience

• Product stewardship

Relevant SDGs

Goal 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment, and decent work for all

Goal 12: Ensure sustainable consumption and production patterns

Relevant SDGs

Goal 12: Ensure sustainable consumption and production patterns

Goal 13: Take urgent action to combat climate change and its impacts

Workwear Group has four sustainability pillars - Sourcing, Environment, People and Community – that align to the United Nations’ Sustainable Development Goals (SDGs) on which it believes it can make the most impact.

These pillars guide how Workwear Group sources and creates products, cares for its people and reduces its environmental impact. Each pillar includes material issues and targets that are most relevant

to Workwear Group’s operations and stakeholders, including its customers and team members.

Workwear Group’s sustainability efforts, including its governance and reporting approach are also directly aligned to the broader Wesfarmers sustainability framework. It measures and reports data relating to its material sustainability issues to the Wesfarmers Industrial and Safety Board which provides additional

governance and oversight of material issues. Consolidated reporting for material issues across Wesfarmers Industrial and Safety is submitted for review by the Wesfarmers Limited Audit & Risk Committee and the Board.

This comprehensive governance framework promotes accountability and transparency and achievement of sustainable outcomes across Workwear Group’s operations and supply chain.

WORKWEAR GROUP’S SUSTAINABILITY PILLARS

PEOPLE COMMUNITY

Material Issues

• Health, safety and wellbeing

• Diversity and inclusion

• People development

Relevant SDGs

Goal 3: Ensure healthy lives and promote wellbeing for all ages

Goal 5: Achieve gender equality, and empower all women and girls

Material Issues

• Community contributions

Relevant SDGs

Goal 5: Achieve gender equality, and empower all women and girls

Goal 10: Reduce inequality within and among countries

Goal 17: Strengthen the means of implementation and revitalise the Global Partnership for Sustainable Development.

Progress Highlights SOURCING

Workwear Group sources quality products in an ethical and responsible manner that considers worker welfare, health and safety, and potential environmental impacts.

Material Issues

• Ethical sourcing and human rights

• Product safety FY24 Highlights

Workwear Group upholds rigorous quality standards and engages with suppliers to promote positive social and environmental practices.

Workwear Group’s Compliance and Ethical Sourcing Strategy and Sustainable Material Strategy aligns with the United Nations’ Sustainability Development Goal 12: Responsible Production and Consumption. 98%

PASS RATE (during the first product quality inspections)

0.23%

0.23%

• returns rate •

Ethical Sourcing & Human Rights

Workwear Group’s aim is to ensure it thoroughly understands any modern slavery risks in its operations and supply chain so it can improve its approach to managing these risks. Workwear Group is committed to supporting employees and supply partners to achieve better outcomes and protect the safety and welfare of workers in its supply chain. Workwear Group prepares an annual modern slavery report, published in Wesfarmers annual modern slavery statement, and also participates in Wesfarmers’ Human Rights forums.

Key Targets

Cat B high-risk suppliers onboarded into Ethical Sourcing framework: 100% (FY24 target) •

Semi-announced Ethical sourcing audits: 95% (FY24 target) • Employees trained in ethical sourcing: 100% (FY24 target)

FY24 Result

• 99% Cat B high-risk suppliers onboarded.

• 59.5% of the offshore audits were semiannounced.

• 81.4% of Workwear Group team members completed training in ethical sourcing, modern slavery and human rights training.

FY24 Highlights

• 106 ethical compliance audits completed of which 84 offshore (SMETA 4-pillar audits •) and 22 onshore (Ethical Clothing Australia audits)

• Of the offshore audits 59.5% were semiannounced, 2.4% unannounced and 38.1% announced

Next Steps

• Transition audits to semiannounced format to get a more objective picture of compliance to the Sedex • Members Ethical Trade Audit (versus announced) and reducing complexities and business interruptions associated with unannounced audits.

• Take steps to improve team members’ attendance and completion rate for ethical sourcing and modern slavery risks training.

Empowering Change: Team Member and Supplier Training

Workwear Group’s employee and supplier training program is designed to build capability in identifying and addressing modern slavery risks in its operations and supply chain.

Team member training

All Workwear Group team members are required to complete modern slavery awareness training on an annual basis, to understand Workwear Group’s obligations under the Australian Modern Slavery Act 2018.

Workwear Group also provides targeted training to team members who manage its Ethical Sourcing program, and who work with high-risk supply partners.

Supplier Training

Workwear Group provides annual compliance training to its core and strategic footwear, apparel and accessories suppliers. The training aims to empower suppliers with knowledge and tools to help provide a safe, clean and respected work environment for employees.

As at end of FY24, Workwear Group’s training program has now been delivered to international suppliers in China, Bangladesh, India, Indonesia, and Sri-Lanka, which employ approximately 27,880 workers combined.

Workwear Group’s Australian supply partners are accredited to Ethical Clothing Australia (ECA), which assists local suppliers to understand their modern slavery obligations.

Fibres

Workwear Group aims to source 95 per cent of fibres from preferred or sustainable sources by 2030. • Workwear Group’s target recognises the current limitations that apply to specialist, technical fibres that Workwear Group customers depend on, such as fire-resistant materials that may not currently have a commercially available, sustainable solution.

Workwear Group applies quality, safety, ethical sourcing and sustainability requirements when choosing fabrics and trims and works closely with supply partners and innovators to improve sustainability outcomes across its products. Workwear Group has a preferred material sourcing strategy in place to improve sustainability outcomes for all garments, fabrics and fibres used in its ranges and to drive our commitment to responsible sourcing.

Key Targets

Workwear Group’s key targets are focussed on its two most common fibres, cotton and polyester, which make up over 95% of fibres used in its products.

Preferred cotton* sourced: 100% (FY25 target)

Recycled polyester sourced: 70% (FY25 target)

Phase out non-PET** buttons and nylon care labels (FY25 target)

CY234 Result

• Preferred cotton* sourced: ~79% cotton sourced as Better Cotton and 1% Australian Cotton

• Recycled polyester sourced: ~13%

FY24 Highlights

• Completed a fibre data update covering 100% of Workwear Group’s material sourcing portfolio. (see Case Study for in-depth overview) •

• Workwear Group currently sources 61% of its fibre portfolio from preferred sources (e.g. Better Cotton, recycled, or certified responsible).

• Launched Workwear Group’s first Australian Cotton product, a t-shirt carrying the Cotton Australia trademark for Hard Yakka and KingGee.

Next Steps

• Drive identified actions from fibre data update to transition conventional polyester to recycled polyester and conventional cotton to Better Cotton, Australian Cotton or recycled cotton. •

• Expand Australian Cotton apparel product and launch Cotton Australia NNT T-shirts in FY25.

• Explore new opportunities identified in fibre data update to streamline Workwear Group’s supply chain, reduce production complexities and mitigate sustainability risks.

*Preferred cotton at Workwear Group is defined as Better Cotton, Australian Cotton, recycled cotton, organic cotton.

** PET (polyethylene terephthalate) is a polyester plastic derived from petroleum

KingGee’s preferred materials focus

In FY24, KingGee expanded the use of recycled or alternative fibres across its national product ranges, including:

• using Better Cotton in the new KingGee Workcool Range;

• using Global Recycling Standard (GRS) certified recycled polyester in the KingGee Workcool Polo Range; and

• using recycled performance fibre REPREVE® in the KingGee Fuze Winter Range.

By the end of FY24, KingGee had grown the number of national product (apparel) styles incorporating recycled fibres or preferred cotton by 72 items. A total of 63% of KingGee’s national product styles (apparel) now include recycled or alternative fibres such as Better Cotton, REPREVE® or GRS-certified recycled polyester.

These efforts support Workwear Group’s commitment to sourcing more sustainable fibre solutions, without compromising on product quality and safety requirements.

Pursuing a plant-based chemistry footwear transition

Throughout FY24, Workwear Group’s footwear team have continued to work with industry- leading plant based chemical companies Bloom and Evoco with the goal of reducing petrochemical compound use in the footwear manufacturing process. In FY24 Workwear Group:

• introduced BLOOMTM into midsoles reducing EVA foam use by up to 15%. BLOOM is an algae-based compound used in the midsoles of the KingGee FUZE footwear range;

• explored the use of BLOOM’sTM newly developed algae-based foam padding in the uppers of our footwear to potentially replace synthetic EVA foam; and

• engaged with Evoco, an industry-leading plantbased chemical company, to explore ways of reducing petrochemical compounds used in our footbeds.

Hard Yakka X Thrills: Collaborating for Impact

Workwear Group’s focus on continual improvement in sustainability captures both its own brands and its partnerships and product collaborations.

In FY24, Hard Yakka launched its third Hard Yakka x Thrills collaboration range, with 85% of apparel styles made with Organic Cotton. Organic Cotton is grown without the use of synthetic fertilisers, pesticides, and insecticides. This reduces harmful environmental impacts like water contamination, soil degradation and use of finite resources, while crop rotation enhances soil health and promotes biodiversity.

Clothing items in the Hard Yakka x Thrills collaboration also use cotton thread swing ticket attachments and are packaged in recycled plastic garment bags, helping divert unnecessary plastic waste from landfill.

In FY24, Hard Yakka launched its third Hard Yakka x Thrills collaboration range, with 85% of apparel styles made with Organic Cotton.

Improving fibre portfolio visibility and performance measures

In FY24, Workwear Group launched a comprehensive fibre data collection project to gain a more accurate view of its fibre portfolio.

Historically, Workwear Group had collected purchase data from mills, covering approximately 80% of its fabric production volume. In FY24, data collection was extended to all fabric mills, including one-off and small volume suppliers. This allowed Workwear Group to accurately evaluate performance against its preferred fibre targets, make more informed decisions within its sourcing strategies, and identify ways to improve its fibre consumption practices.

As a result of this project, several mills were identified to

quickly transition their fibres, including switching from virgin to recycled polyester. These opportunities will remain a core focus for FY25. Additionally, scenario modelling identified key sourcing moves to convert more fabric qualities from conventional cotton to cotton sourced as Better Cotton or from Australian Cotton.

Workwear Group will conduct bi-annual reviews of its fibre portfolio data to ensure that it:

• maintains current and accurate insights into fibre usage, geographical positioning and performance against preferred fibre targets; and

• identifies emerging opportunities and areas of improvement.

Progress Highlights ENVIRONMENT

Workwear Group is committed to reducing its environmental footprint, taking action to address climate change and contributing to a sustainable, low-carbon future

Material Issues

• Climate change resilience

• Waste & packaging

• Product stewardship

Workwear Group recognises and takes responsibility for resource use within its operations and its products. Workwear Group is especially focussed on ways to embed climate change resilience, reduce waste and packaging and better manage the environmental impacts of its products, including by keeping resources in use for as long as possible.

FY24 Highlights

100%

of internal garments diverted from landfill

Climate Change Resilience

Workwear Group has set emissions reduction targets in line with its 2035 Net Zero (Scope 1 and 2) goal and is working to improve how it captures, discloses, and develops strategies to address Scope 3 emissions.

Key Targets

70 per cent reduction of Scope 1 & 2 emissions by 2025 (based on 2018 baseline)1 and net zero by 2035**

FY24 Result

• 73.3 per cent reduction in Scope 1 & 2 emissions based on 2018 baseline1

• Actual Scope 1 and 2 emissions equal to 835 tCO2e1

FY24 Highlights

• 89 per cent of Workwear Group fleet vehicles are now hybrid vehicles.

• Obtained Renewable Energy Certificates to offset emissions from Workwear Group’s New Zealand operations.

• Workwear Group New Zealand new office location fitted out with LED lighting and old light fittings sent for recycling.

• Completed Scope 3 emissions data reporting for the third year in a row capturing Scope 1 and 2 emissions from 47.4% of suppliers.

Next Steps

• Implement a pilot program to verify reported Scope 1 and Scope 2 emissions of overseas manufacturing partners.

• Investigate technology platforms to further improve measurement of Scope 3 emissions year-on-year. Implement a pilot project to measure emissions outcomes associated with end-of-life recycling of garments

• Progress installation of solar panels at Workwear Group’s Melbourne Airport and Welshpool Distribution Centres.

1 Location-based emissions for all sites where Workwear Group operates.

**Disclaimer: Consistent with the Wesfarmers Climate Policy, baselines will be updated in the event of material or significant portfolio changes, such as material changes to production volumes (including through substantial plan investments) and mergers, acquisitions and divestments. Baselines will also be updated to reflect changes in greenhouse gas emission reporting protocols, including changes in reporting (including operational control) definitions. Should changes to baselines occur, then adjustments may be made to the interim Scope 1 and 2 emissions reduction targets or may be made to the net-zero targets. Hard-to-abate sectors are those that are widely recognised as having no readily available or commercially viable technology to abate their carbon emissions. This is particularly acute for the divisions’ extensive distribution network whereby technologies are either newly commercialised, currently in development and/or currently economically unviable alternatives. The new interim and net-zero targets assume that emission-reduction technologies relating to distribution assets (including heavy vehicle distribution) will continue to develop in the coming years, as they have in recent years, and that in time they will become commercially viable and operate at scale to meet these targets. It is also assumed government policy will be supportive of climate change action.

Waste & Packaging

Workwear Group is working to reduce operational waste by facilitating recycling, reducing packaging and using recycled materials across selected product ranges. It also collaborates with suppliers, customers, and garment end-of-life solution providers to responsibly manage own-branded garments at the end of their first useful life.

Recycling and Diversion from Landfill

Key Targets

Three per cent waste reduction year on year by FY30 (based on FY22 baseline)

10 per cent reduction of waste to landfill year on year by FY30 (based on FY22 baseline)

90 per cent of waste to be recycled by FY30.

FY24 Result

• Workwear Group’s annual waste increased by 34.2% in FY24, mostly due to waste disposed when exiting its offsite warehouse storage in Victoria.

• 140 tonnes of waste was sent to landfill, an annual increase of 102.9%.

• 231 tonnes of waste was diverted from landfill, an annual improvement of 11.7%.

FY24 Highlights

• Diverted 1.19 tonnes of waste away from landfill via comingle recycling bins at the Melbourne Airport Distribution Centre.

• Diverted 1.72 tonnes of steel and 2.36 tonnes of timber from landfill through Workwear Group’s warehouse clean-out recycling program.

• Remapped the Melbourne Airport Distribution Centre bin layout and developed comprehensible signage for more efficient waste separation.

• Identified a recycling solution for waxy paper backing from used sticky labels in Workwear Group’s Distribution Centres.

Next Steps

• To improve use of waste streams, implement the new bin layout at Melbourne Airport Distribution Centre.

• Commence recycling the waxy paper backing from used sticky labels.

• Initiate actions from FY24 waste audits, including improved signage at office bins to improve use of waste streams

Note: Workwear Group continues to review and improve its sustainability targets, reporting methodology and data collection points. After introducing additional waste data sources in FY23, Workwear Group has reset its waste baseline from FY22 to FY23 and subsequently updated its anticipated target delivery timeframe to better reflect actual results. These new targets will apply from next financial year and will be documented in the Workwear Group FY25 Sustainability Report.

Packaging

Key Targets

100% of packaging being reusable, recyclable or compostable by 2025

70% of plastic packaging being recycled or composted by 2025

50% of average recycled content included in packaging (revised from 30% in 2020) by 2025

The phase out of problematic and unnecessary single-use plastics packaging by 2025.

Thesetargetsarealignedtothe2025APCO(AustralianPackagingCovenantOrganisation)NationalPackaging Targets.WorkwearGroupisanAPCOsignatory.

FY24 Result

• Workwear Group‘s on-product packaging contained an average of 47% recycled content, on track towards the 2025 National Packaging Target of 50% recycled content.

• All locally sourced cartons were made of 100% recycled materials and supplier cartons were transitioned to FSC Mix quality.

FY24 Highlights

• Added more detailed disposal instructions to Hard Yakka and KingGee swing tickets to support more responsible decisionmaking by end users.

• Transitioned 229,300 units of Hard Yakka-branded product to single swing tickets in line with Workwear Group’s Packaging Standard and Procedure.

• Identified a twisted paper string solution to replace plastic fasteners on NNTbranded products and tested on a number of products.

Next Steps

• Implement the twisted paper string (single-use plastic fastener alternative) solution on remaining NNT-branded products

• Commence roll out of packaging reduction initiatives for uniforms customers

• Implement recycled shipping satchels across all Workwear Group Distribution Centres.

• Continue transition from conventional virgin and recycled garment polybags to lowerimpact alternatives.

Second hand first for New Zealand office fitout

When refurbishing their new office, the Workwear Group New Zealand team had a clear goal to modernise the space using second-hand and repurposed office furniture where possible and responsibly dispose of existing items no longer fit for-purpose.

The team sourced desks from a local sustainabilityfocussed company that repurposes older corner and larger desks into new linear options. The same company provided all second-hand end cabinets and under-desk drawers, as well as modular seating

to become the centrepiece for the new space. LED lighting was also fitted throughout the office.

Existing furniture or surplus unwanted items were either transferred to the new tenants of Workwear Group’s former Auckland office location or donated to local charities ensuring it stayed out of landfill.

The team was proud to create a modern, functional workspace with a sustainable and costeffective mindset without compromising on quality or aesthetics.

Qantas sustainability initiatives

In FY24, Workwear Group partnered with Qantas to implement three significant sustainability initiatives to reduce product and garment packaging waste.

Removing foam inserts from luggage, traditionally used for product protection during shipping. This change significantly reduced singleuse waste to landfill while maintaining product safety and durability.

Removing plastic hangers from trench coat liners to reduce singleuse plastics without compromising garment integrity or quality.

Replacing plastic tape with biodegradable paper tape to make recycling easier and further reduce plastic pollution.

These initiatives showcase how Workwear Group can help reduce customers’ plastic waste, while maintaining quality standards, through thoughtful changes to packaging and materials.

Garment End-Of-Life Solutions

Key Targets

Divert 100% of internal* garments from landfill by FY27

Facilitate end-of-life service offering for business-to-business (B2B) uniform customers by FY27.

FY24 Result

• 99.9% of internal garments (equal to 64.9 tonnes) were diverted from landfill as follows:

• 42.3% of internal garments (equal to 27.5 tonnes) were donated to charitable organisations, enabling reuse and repurposing of garments at their highest value;

• 57.5% of internal garments (equal to 37.3 tonnes) were mechanically shredded and turned into insulation or stuffing materials; and

• 0.1% of internal garments were composted through vermiculture.

FY24 Highlights

• Supporting customers to identify appropriate end-oflife solutions for unwanted uniforms by assessing range composition and, by expanding potential providers, assist with sourcing logistics solutions to support end-of-life solutions.

• Made progress in design for recyclability by developing a polo that requires fewer decommissioning steps at the end of its life, thereby reducing both recovery costs and waste. (Refer to NNT Polo shirt case study on page 25)

Next Steps

• Explore potential new partnerships to ensure recycling options are available for all fabric types used in Workwear Group products.

*Internal garment refers to any textile waste generated by Workwear Group at a WORKWEAR GROUP location (excludes used or new garments held by our customers) regardless of who technically owns the product - e.g. samples, unsellable returns, fabric offcuts, excess and obsolete stock

Second Life for Unused Workwear

As part of its waste diversion activities, Workwear Group seeks opportunities to donate excess or obsolete workwear items to not-for-profit organisations and/or individuals in need. This ensures an extended or second-life for unused clothing and reduces Workwear Group’s potential emissions impacts.

In FY24, Workwear Group New Zealand donated 5,100 kilograms of unused workwear items to the New Zealand Department of Corrections. These items were then available for permanently or temporarily released prisoners, including those undertaking employment opportunities through the Department of Corrections’ work release program, which aims to reduce the likelihood of re-offending.

In Australia, Workwear Group donated 14 pallets of new workwear items to The Salvation Army to be sold in Salvos Stores. Profits from instore purchases are used to help fund The Salvation Army programs to end hunger, homelessness and build stronger families and communities.

Transitioning to a circular economy •

A key focus of Workwear Group since FY23 has been maturing its garment end-of-life approach. Rather than simply trying to retrofit its current workwear and uniforms to meet current recycling technology requirements, it has looked at ways to embrace circular principles at the beginning of the product design process.

In FY24, Workwear Group undertook a dedicated project to:

• review its current product ranges and fibres

• better understand the circularity methods already applied to its garment design and production processes

• better understand its customers’ needs, preferences and understanding of circularity

• conduct a local and international legislative review, and

• analyse global best-practice in adopting a fully circular model.

The analysis confirmed Workwear Group was taking positive action towards embracing circular principles but needed to be more strategic in its approach.

FY24 Circularity Highlights

Design for recyclability working group

Found substitutes for difficult-torecycle trims.

Manufacturing efficiency

Reduced offcuts and end-of-roll textile waste.

Next Steps

• Launch two pilot trials in July 2024 to test and evaluate opportunities for product and service-based circular transformation.

• Provide in-house circular economy training for Workwear Group team members to uplift their capabilities.

• Complete the NNT polo redesign so it can be chemically recycled without requiring decommissioning (Refer to the NNT Polo Shirt case study).

Strategic supplier partnerships

Explored partnerships with suppliers who could support circular economy initiatives through advanced manufacturing innovations

Uniform reuse improvements

Explored the swapping of embroidery to easily removable logo badges to support garment donations & reuse.

Scope 3 emissions quantification

Investigated the emissions footprint of common recycling solutions to compare against landfilling and waste-to-energy scenarios.

NNT Polo Shirt journey towards reduced decommissioning at end-of-life

In FY24 Workwear Group began a process to redesign its bestselling NNT polo range in line with circular principles. The end goal is to update every trim, button, and label so polos can be chemically recycled without requiring decommissioning (process to remove non-recyclable garment elements).

Although the polo range now contains more sustainable fabric and components, finding an appropriate adhesive placket fusing remains a challenge. The proposed polo, which is engineered for end of life with the exception of the fused centre front placket, will transition into the new features at a colour level, from November 2024 to June 2025.

NNT POLOS Designing for Recyclability with Block Texx

Brand labels: made from 100% recycled polyester

WIP: Jelly tape on shoulder seam can be replaced with self fabric

WIP: re-source buttons to be 100% PET, cost neutral

WIP: Fusing: testing a 100% cotton fusing with biodegradable adhesive

Sewing thread: 100% polyester

Plastic kimbles removed: replaced with paper string for swing tag and sewing thread for loose pocket

Polygiene antibacterial nish seems to comply with recycling but needs to be certi ed by Polygiene. Other nishes need to be tested

Rib collar and bands made from 100% recycled polyester. Elastane edging removed

WIP: VA - investigate embroidery threads for compliance

WIP: Prints - plastisol will not go through BT process.

Fabric: 55% BC cotton 45% recycled polyester (Repreve)

Care label: changed from nylon to 100% polyester

WIP:

Transitioning to a circular economy •

Workwear Group acknowledges that a circular model for workwear and uniforms requires a dedicated circular value chain. This means setting up dedicated partnerships with suppliers who embrace a similar circularity mission to minimise impact throughout the entire garment life cycle. This includes supplier commitment to renewable energy, water and waste reduction and responsible production methods, including zero liquid discharge and recycling of pre-consumer manufacturing waste.

A key focus for Workwear Group in FY25 will be progressing an overarching circular support system, fuelled by transparency and traceability technology solutions to better measure the impact of its circular economy initiatives.

The below diagram represents Workwear Group’s circularity approach, including progress against identified initiatives, as at 30 June 2024.

Design with end-of-life in mind and reduce material use

Circular product training

3D sampling

Low-waste pattern making

Trial and pilot circular products

Phase out materials, chemicals and trims of concern

DESIGN

Choose regenerative natural fibres

Increase the use of recycled inputs

Phase out materials, chemicals and trims of concern

RAW MATERIALS

Closed-loop fibre to fibre recycling

Using circular materials into new products

Compostable products that regenerate nature when they can no longer be used

Optimise manufacturing processes to reduce waste

Reintroduce recycled pre-consumer textile waste into production

Reduce and recycle chemicals and water in the manufacturing process

Reduce emissions in the manufacturing process

Zero-waste manufacturing (3D)

PRODUCTION

CIRCULAR

WORKWEAR

A genuine circular model closes this loop so materials never cascade to other industries (downcycling) or end up as waste. They become valuable raw materials that go back into textile and footwear production and when they can no longer be used, they regenerate nature.

DISTRIBUTION & USE

Increase garment use by improving durability

Enable reuse/repurpose through decommissioning strategies

Reduce and use recycled and recyclable packaging

Repair to extend product life

Conduct circular business model (rental, recommerce) pilot projects

Minimise garments to landfill

Recycle (mechanical and chemical) garments

Regenerate nature by composting natural fibres

Donate wearable garments to charitable organisations

Strategic collaborations with end-of-life solution providers

Measure impact of textile waste diversion

Progress Highlights

Workwear Group aims to be an employer and partner of choice, and deliver better performance, by providing a safe and welcoming workplace that embraces diversity.

FY24 Highlights

Material Issues

• Health, safety and wellbeing

• Diversity and inclusion

• People development

Workwear Group is committed to safe, healthy and respectful work environments, and to building a culturally safe and welcoming organisation where people from all backgrounds are able to thrive.

1.28%

1.28%

First Nations representation (permanent workforce)

TRIFR* result

Reconciliation

As part of its commitment to Diversity and Inclusion, Workwear Group is proud to support Wesfarmers’ Reconciliation Action Plan and its vision for an Australia that affords equitable opportunities for all. Workwear Group’s reconciliation efforts are built on a foundation of respect and shared benefit, and focus on learning, engagement, connection, and celebration.

Key Targets

1.5% Aboriginal or Torres Strait Islander employment across permanent workforce (approximates to seven team members).

$300,000 AUD spend with First Nations-owned suppliers.

$10,000 NZD spend with Maori and Pasifika-owned businesses.

FY24 Result

• Throughout FY24, Workwear Group employed eight team members that identified as Aboriginal or Torres Strait Islander. This included six new hires two interns as part of the CareerTrackers program.

• As at 30 June 2024, Workwear Group employed five team members that identified as Aboriginal or Torres Strait Islander.

• Workwear Group increased spend with Indigenous-owned businesses by 357% to $553,985 AUD.

FY24 Highlights

• Accelerated progress against all reconciliation targets through Workwear Group’s dedicated Internal Steering Committee and Working Group.

• Provided targeted recruitment support in Workwear Group Distribution Centres, including establishing identified roles for Aboriginal or Torres Strait Islander team members.

• Extended potential internship pathways through the CareerTrackers program by broadening available opportunities for interns.

• For one intern, provided ongoing casual work, beyond the internship period, to maintain relationship and continue building capability through real-life experience.

• Established a First Nation’s student scholarship program which will launch in FY25.

Next Steps

• Progress a new procurement target for Workwear Group New Zealand to support Maori and Pasifika-owned businesses.

• Launch the Workwear Group First Nations Scholarship Program.

• Increase supplier diversity by identifying opportunities to transition existing spend.

Partnership with CareerTrackers to support First Nations students

CareerTrackers is a national non-profit organisation whose goal is to create pathways and support systems for First Nations adults exploring further education. Designed for students from Year 12 and in tertiary education, its purpose is helping them to navigate their studies while linking them to multi-year paid internships related to their interests and career aspirations. In FY24, Workwear Group welcomed two CareerTrackers interns to its Wholesale Marketing team and its People team.

Satine

Satine is studying Media & Communications and has a background in fashion and merchandising. Her role as a Summer Marketing Intern within the Wholesale Marketing Team involved content creation, copywriting, and social media marketing. “This internship has been helpful with figuring out what I want to pursue,” she said. “I’ve realised I want to work in marketing or advertising in the fashion space.”

Kaylah

Kaylah is in her final year of a Bachelor of Psychological Sciences and has plans to do her Honours, followed by a Masters or PhD. In her role as Summer Intern in the People team, Kaylah contributed to the planning of Workwear Group’s MentorMe program and supported the Safety team with team member mental health and wellbeing initiatives.

With a fast-paced environment and a team brimming with ideas and experience, Satine was able to dive headfirst into her responsibilities, while also having a bit of fun on the side. “Right now, I’m soaking everything up and enjoying the social culture and flexibility at Workwear Group.”

“My involvement in maintaining the mentor program has given me a unique opportunity to contribute to the growth and development of others. Through communication, both via email and Teams, as well as crafting content, I’ve played a key role in supporting mentors and mentees”, Kaylah said. “This experience has strengthened my desire to assist people, whether it be directly or by developing tools that make their success possible”.

When asked about how the internship has assisted Kaylah’s career aspirations, she said, “My internship has been instrumental in understanding my desire to focus on research and helping others. As a People and Safety intern, I’ve had the chance to assess and communicate data, which has improved my analytical abilities and expanded my knowledge of how data can be used to improve the workplace.”

Working Together for Reconciliation

In FY24, Workwear Group’s crossorganisational Reconciliation Working Group connected with Wesfarmers Industrial & Safety’s Indigenous Affairs Lead, to accelerate and better align its employment, procurement, and cultural safety initiatives to Wesfarmers’ Reconciliation Action Plan (RAP).

This Working Group provided greater transparency and accountability throughout the year, including through more direct alignment to corporate reporting requirements for the Wesfarmers RAP.

Through initiatives directed by this Working Group, Workwear Group was proud to deliver its strongest First Nations procurement and employment results since acquisition by Wesfarmers in 2014.

Progress Highlights COMMUNITY

Workwear Group strives to do the right thing by its people, the environment, and the communities it operates in.

Material Issues

• Community contributions FY24 Highlights

Workwear Group’s community focus is on forming meaningful long-term partnerships with not-for-profit social enterprises. As well as providing financial and volunteering support, it leverages its leadership, functional and technical skills for the benefit of not-for-profit organisations aligned to its purpose and values.

$348,935

$6,140 in community contributions raised in the SPLASH corporate fundraising event for Special Olympics Australia.

Community contributions

As part of its commitment to Diversity and Inclusion, Workwear Group is proud to support Wesfarmers’ Reconciliation Action Plan and its vision for an Australia that affords equitable opportunities for all. Workwear Group’s reconciliation efforts are built on a foundation of respect and shared benefit, and focus on learning, engagement, connection, and celebration.

Key Targets

$200,000 AUD in community contributions

FY24 Result

• $348,935 AUD in community contributions

FY24 Highlights

• 50 team members took up general volunteering opportunities in support of Workwear Group’s partnership with The Big Issue, including supporting The Big Sell fundraising initiative, community soccer program and vendor magazine launches.

• 24 team members provided expertise-based volunteering support, for example by supporting The Big Issue’s social impact research surveys.

• Created work opportunities for 65 women as part of The Big Issue Women’s Workforce including subscription mail-outs and garment decommissioning pilot (Refer to Increasing Employment Skills case study on page 35).

The Big Issue

Workwear Group has partnered with The Big Issue, a social enterprise that helps people who are experiencing marginalisation, disadvantage or who are at-risk of homelessness. The Big Issue creates work opportunities for people struggling to access mainstream employment.

Increasing Employment Skills While Reducing Waste

As part of its partnership commitment with The Big Issue, Workwear Group has proactively sought opportunities to leverage its professional skills, expertise and connections to support employment opportunities for The Women’s Workforce. A key focus has been on leveraging its networks to identify and support The Big Issue to test long-term, scalable employment programs.

In FY24, Workwear Group facilitated a pilot partnership between The Big Issue Women’s Workforce and a local textile recovery and recycling company, to provide new skills for Women’s Workforce employees to learn about upcycling and decommissioning textiles.

In FY25, The Big Issue will assess and share learnings from the pilot with Workwear Group, to understand the potential for pursuing an ongoing, scalable employment program related to textile decommissioning.

Empowering Refugee Women Through Uniform Supply

Workwear Group is proud to work closely with its major uniforms clients to help deliver positive impact on behalf of both companies. This commitment to sustainability and dedication to customer relationships is why Workwear Group was recognised with the Westpac Award for Supplier Sustainability in November 2023.

As part of this collaborative partnership, Workwear Group was invited by Westpac to develop a relationship with The Social Outfit, to create and supply scarves and pocket squares for Westpac branch employees. This opportunity marked the largest business-to-business contract for the social enterprise.

The Social Outfit is a Westpac Foundation partner and registered charity, supporting migrant women who are largely unable to find work due to language limitations. The women are trained in cutting, sewing and using pre-sewing machines and turn donated fabric remnants into saleable garments, allowing them to earn a living wage.

About this Report

This report has been prepared by the Workwear Group management to provide an overview of the Workwear Group’s sustainability performance for the period FY2024.

The information in this report is given in good faith and derived from sources believed to be accurate at the time of reporting however it has not been independently audited and external assurance has not been sought. Users of this material should rely on their own enquiries in making any decisions which relate to the content in this publication.

Reporting of Scope 1 and 2 greenhouse gas data is completed under National Greenhouse and Energy Reporting Act 2007. tCO2e is a location-based figure and applies to locations relevant to Workwear Group operations.

This report includes estimates, projections, and other forwardlooking statements which are generally identified by the words “believe,”,” “aim”, “target”, “project,” “expect,” “goal” “anticipate,” , “objective”, “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties many of which are beyond our control that may cause actual results to differ materially from those expressed in statements contained in this report. We undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events, or otherwise.

All dollar figures are expressed in Australian dollars (AUD) unless otherwise stated.

All references to ‘Indigenous’ or `First Nations’ people are intended to include Aboriginal and/or Torres Strait Islander people.

Please see following pages for a Glossary of terms and a Data Table which provides an overview of the material issues.

Data Table

The following table provides an overview of the material issues Workwear Group reports on. It includes a breakdown of our key metrics, commencing from 2021 to current financial year. Note: A definition of each metric can be found below the table.

1. Total Learning and Development increased in FY24 compared to FY23 due to the addition of another data point. This data increased learning hours by approximately 5,700 hours in FY24. This data point will continue to be captured beyond FY24.

2. Scope 3 data collection has been completed in good faith and utilising available date sources, as well as assumptions in areas where data is unavailable at time of reporting. Workwear Group has engaged an agency to support the collection of scope 3 data. While it has done its utmost best to collect all data available to them, it recognises Scope 3 data collection still remains challenging and the data will not be considered accurate. This is partially driven by the use of assumptions in areas where data is lacking and partially by the data not being exhaustive as remains too complex to gather. While methods have significantly improved since FY22 and the overall data is more comprehensive than in FY23, the number published should be considered an estimated indication of the baseline rather than a finite number.

3. Scope 3 Emissions data is calculated on 8 months actual data and extrapolated to calculate 12 months data.

4. Recycled polyester and preferred cotton data for calendar year 2023, accurate at the time of reporting.

• Glossary

About Workwear Group:

Circular business models in apparel industries allow companies to make revenue without making new clothes. These business models can include resale, rental, repairs and remaking.

Sourcing:

Progress

Highlights

Trust and Verify Audit:

Group Trust and Verify Audits are conducted on apparel suppliers located in high-risk countries to verify production is occurring at Workwear Group-authorised factories, rather than being subcontracted out to external parties without authorisation.

Quality Inspection Pass Rate:

This is a measure that captures the percentage of products meeting our product quality standards on first inspection.

Faulty Return rate:

This is a product quality metric, measuring the number of items that were returned due to a product fault.

Textile Exchange:

Defines preferred fibre or material (“PFM”) as one that results in improved environmental and/or social sustainability outcomes and impacts compared to conventional production.

Cat B high-risk suppliers:

Suppliers located in countries with known risks to modern slavery that directly supply own-brand (Hard Yakka, KingGee, NNT and customer-branded uniforms) products to Workwear Group.

SEDEX - Supplier Ethical Data Exchange

an online platform that allows suppliers to maintain ethical data and social compliance audits, enabling sharing of information with customers.

SMETA - Sedex Members Ethical Trade Audit

Globally recognised social compliance audit covering the 4 pillars of labour rights, health and safety, environment, and business ethics.

Semi-announced Audit:

The audit is arranged to take place within a set booking window of 3-4 weeks. The actual date of the audit is not disclosed to the factory site.

Fibres

Preferred cotton:

Cotton fibre makes up the largest portion of Workwear Group’s fabric. Cotton is a versatile, breathable and naturally biodegradable fibre. We have partnered with global organisations such as Better Cotton to help address the environmental impact of cotton cultivation. We have committed to sourcing 100% of cotton used in our own-brand products from preferred (more sustainable) sources by 2025. Preferred cotton includes cotton sourced through Better Cotton, Australian cotton, recycled cotton and organic cotton.

Better Cotton:

Workwear Group is a proud member of Better Cotton, the world’s largest cotton sustainability program. Better Cotton’s mission is to improve cotton farming globally and to help cotton communities survive and thrive, while protecting and restoring the environment. Better Cotton helps in educating farmers to use water efficiently, care for soil health and natural habitats, reduce use of the most harmful chemicals and respect workers’ rights and wellbeing. ‘By choosing cotton products from Workwear Group brands, you’re supporting responsible cotton production through Better Cotton. Better Cotton is sourced via a chain of custody model called mass balance. This means that Better Cotton is not physically traceable to end products, however, Better Cotton Farmers benefit from the demand for Better Cotton in equivalent volumes to those we ‘source.’

Recycled polyester:

Polyester is a synthetic fibre with strong performance attributes well suited to various textile applications. Given these synthetic materials are derived from oil, it is important that Workwear Group reduces the impact of use and embraces new fibre innovations. Workwear Group opts for recycled alternatives where possible, including using fully GRS-certified recycled fibres like REPREVE® AND Hyosung Regen. We also use a variety of recycled materials across our footwear ranges, such as, recycled polyester shoelaces, and recycled polyester lining from NatureTex® in some of our Hard Yakka and KingGee footwear collections.

Packaging

FSC (Forest Stewardship Council)

Mix:

The product is made with a mixture of materials from FSC-certified forests, recycled materials, and/or FSC-controlled wood. While controlled wood doesn't come from FSC-certified forests, it mitigates the risk of the material originating from unacceptable sources.

Transitioning to a circular economy

The circular economy (incorporates references to circularity and circular principles) is a system where materials never become waste and nature is regenerated. In a circular economy, products and materials are kept in circulation through processes like maintenance, reuse, refurbishment, remanufacture, recycling, and composting. The circular economy tackles climate change and other global challenges, like biodiversity loss, waste, and pollution, by decoupling economic activity from the consumption of finite resources. (Ellen MacArthur Foundation)

People: Progress Highlights

TRIFR:

Total Recordable Injury Frequency Rate calculated: (number of Lost Time Injuries) + (number of Medical Treatment Injuries) x (total hours worked over 12 months) / 1 million hours

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