2021 PrimaLoft Relentlessly Responsible™ Report

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2021

PrimaLoft Relentlessly Responsible Report

TM



Our Philosophy is Simple.

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Relentlessly Responsible How do you choose between what’s good for you and what’s good for the earth? Isn’t it one in the same? That’s why we’ve created a single focused movement, using innovation and performance to drive sustainability. We do this by pushing the limits of material science forward, resulting in the perfect balance between performance and responsibility. Each one elevated. Neither one sacrificed.


A Message from our President & CEO Recently, I was reflecting on the influence our Relentlessly Responsible™ platform has had on our growth as a company. As my thoughts wandered back through the company’s history, I recognized that our Relentlessly Responsible mission is not a recent invention. Rather, its core principles were part of our inception back in 1984 when our former parent company, Albany International, was first commissioned by the U.S. Army to develop a synthetic insulation as a water-resistant alternative to goose down. Our revolutionary solution was made free of fluorocarbons and PFC’s. Even back then, we were leading innovators in both performance and sustainably. By 1997, we were producing a high-performance synthetic insulation product using post-consumer recycled material, well before the market was ready to embrace the now-common practice. We were ahead of our time but, the market soon followed suit. By the early 2000’s, the sustainability trend began to take hold in Europe before expanding across the globe. It was fortuitous that PrimaLoft had already established a sustainable approach and was ready to lead in this area. Over the last five years, our cultural belief of innovation, sustainability, and performance has become a purpose statement. Our purpose is to unleash the full potential of people, products and the planet, together in harmony. This statement acts as our true north, helping us navigate all aspects of our business. It shows itself through our sustainable approach to products, process, and materials. It is embodied by a commitment to enabling our consumers to stay out longer, remain comfortable and enjoy the outdoors. And it guides how we partner with our employees, suppliers, and other stakeholders. What you’ll find in this report is a showcase of the purposeful, meaningful work that our company has done in recent years, with a special emphasis on 2021. You’ll also see a peek into our vision for the future of our company. Moving forward, we will be focusing our innovation on reducing our impact on the environment through continued use of recycled materials, designing for circularity, aggressive carbon reduction, and the development of technologies using non-petroleum based raw material – all while continuing to elevate the industry-leading performance of our products. While no one can solve the issues facing our planet alone, every bit helps. We are proud to lead the way in a market that is counting on us to continue our relentless pursuit of sustainable performance.

Mike Joyce PrimaLoft president & CEO

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Contributors

Mike Joyce

to the 2021 Relentlessly Responsible Report. TM

President + CEO

The content of this report would not be possible without the dedicated work of many additional PrimaLoft team members & partners.

Kristen Ashcom

Erika Enquist

Ken Fisk

Shana Getchell

Product Development Engineer

QC & Compliance Manager

Global Communications Senior Manager

Global Brand Building Vice President

Chris Humphris

Mike Martini

Vanessa Mason

Tara Maurer-Mackay

Global Sales Senior Vice President

Operations Senior Vice President

Engineering Senior Vice President

Product Strategy Senior Vice President

Haley Pullin

Bob Sameski

Tom Seaver

Jennifer Stott

Brand Building Manager

Licensing Vice President

Chief Financial Officer

Global Business Systems & Customer Fulfillment Director

Mary Schulte | Creative Lead

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Table of Contents Our Development Lens Waves of Innovation

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Decarbonization

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PrimaLoft Partners with Origin Materials Making Strides Towards Decarbonization

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Global Supply Chain Network

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An Asset Light Model 13 Business Systems Increase Efficiency 13 Compliance Certifications are Essential 15

Market Desire Beyond Insulation and Fabric 16 2021 Key Brand Partnerships

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A True Down Alternative 20 Growing Demand for Sustainable Technologies

Connecting PrimaLoft + Our Conscious Consumer A Bridge Back

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2021 Relentlessly Responsible Summary TM

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Our Development Lens Since the commission from the U.S. Army in 1983, PrimaLoft technology has been used to create high-performance fibers for a variety of applications, with a focus on insulation and fabrics for apparel and home applications. At its core, PrimaLoft is an advanced material science company with a focus on fiber technology.

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We approach development through the lens of our expertise – Innovation.

Our overarching goal is to develop innovative products and technologies that remain on the cutting edge of material science.

And we focus our innovation through two guiding principles – Performance and Sustainability.

With each new technology, we are always striving to provide the highest possible performance, while also reducing our impact on the environment.

With that lens in mind, our product line is built upon a Sustainable Chassis – the backbone of materials and processes that we employ to reduce our impact, while continuing to lead in performance. This includes:

Using post-consumer recycled content

Decarbonization efforts

Combatting microplastic pollution

End-of-life solutions

Our Sustainable Chassis is not just an engineering or design consideration, but a requirement. So, what makes up this chassis? Our journey begins with thoughtful product design that includes both mechanical and material factors to support durability and product longevity with consideration for its eventual end-of-life. Design targets include: •

Material inputs... used to create our products. We target 50% or greater postconsumer recycled waste usage, diverted from landfills or coastal environments – with many products reaching 80-100% PCR content

Manufacturing processes... to reduce or neutralize the carbon footprint associated with the product’s development

Polymer optimization... for high performing, low impact materials

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Waves of Innovation BIO™

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1997 – Today:

2018:

Leveraging Post-Consumer Recycled (PCR) material to make microfibers for high performance, thermally efficient products.

PrimaLoft® Bio™ is designed to return to materials found in nature, reducing the long-term impact of microplastics in our oceans, landfills and waterways.

Future:

2019:

To manufacture our high-performance product solutions, we require high-grade recycled inputs. We have been working with polyester stabilizers that would enable us to leverage more prolific, lower-grade recycled inputs. By doing so, we will be able to offer the same high performing, thermal insulating fibers while also participating in the global reduction of plastic waste in a deeper way.

PrimaLoft® P.U.R.E.™ is a renewable manufacturing technology developed to drastically reduce the carbon emissions produced during the manufacturing process of our products.

Future:

Future:

PrimaLoft was founded with the intention to mimic and match the performance and lightweight properties of duck and goose down in synthetic form. Decades of innovation, including the launch of our ThermoPlume® product line, has brought us closer to a solution. Recent advancements in fiber and processing technology have gotten us closer to a one-for-one replacement. While still in an incubation phase, we are encouraged by preliminary findings and the ability to eliminate global demand for animal by-products in favor of a blowable, synthetic, vegan alternative.

A strategic alliance between Origin Materials and PrimaLoft to develop high-performance, carbon negative insulating fibers for diverse product applications. This alliance will focus on carbonnegative PET and next generation polymers, turning wood residue into carbon-negative materials that reduce our reliance on fossil fuels. With time and scale, this will serve as a new sustainable chassis on which further technologies will be built.


Decarbonization For decades, petroleum has been a key resource used to make polyester-based fibers for a wide variety of applications. Historically, PrimaLoft has utilized polyester as the main ingredient for the fibers in our primary product lines. It is important for us, and for industries across the globe, to reckon with the negative impact petroleum based raw materials have on our planet. Over the past 10 years, PrimaLoft has invested heavily in developing technology, and the respective supply chains, that utilizes recycled content as the raw material used to create our high-performance polyester fibers.

Utilizing recycled fiber is great but, it is no longer enough. In April 2021, PrimaLoft partnered with Origin Materials to produce polyester fiber made from non-petroleum, carbon-negative raw materials.

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PrimaLoft Partners with Origin Materials Origin Materials is the world’s leading carbon negative materials company. The Origin platform turns cellulose-based feedstocks such as wood, cardboard and pulp waste into cost-advantaged, carbon negative materials that reduce the need for fossil resources.

• • •

Trees capture carbon dioxide from the environment and then the carbon is stored in the wood of the tree. The carbon that is captured in the wood of the tree remains in the molecular backbone of the C6 cellulose. The cellulose feedstock used by Origin is therefore a carbon negative material.

A new development. In recent months, PrimaLoft has utilized Origin technology to produce a fine denier polyester fiber suitable for use in textiles. Origin and PrimaLoft have collaborated with a third-party polymerization company to produce polyester chip that PrimaLoft has begun extruding into fiber. Our intention in the coming year is to make nonwoven insulations utilizing this advanced polymer fiber, without compromising our high performance standards. We are also in the process of securing approximately five brand partners to showcase the new fiber technology in concept garments. Origin & PrimaLoft will continue to collaborate on a multiyear development plan to commercialize this disruptive technology, with the hopes to have prototypes ready by 2023.

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Making Strides Towards Decarbonization In 2019 and 2020, PrimaLoft has taken a deep dive into understanding our company-wide carbon footprint. The majority of our impact is associated with the manufacturing facilities throughout our global supply chain network used to produce PrimaLoft products. The carbon footprint associated with that production stems from both the textile manufacturing process, as well as raw materials. And PrimaLoft is taking steps to reduce our impact at each level.


Manufacturing Over the past five years, PrimaLoft has invested heavily in disrupting traditional manufacturing processes. The result is PrimaLoft® P.U.R.E.™ , a renewable manufacturing technology that is Produced Using Reduced Emissions. PrimaLoft completed a comprehensive environmental assessment of the insulation manufacturing processes and identified the most impactful opportunities to reduce carbon emissions. From there, PrimaLoft engineers focused on increasing energy efficiency by making changes around the fiber recipe, introducing new thermal equipment, and optimizing the source of energy to drastically reduce carbon emissions. This proprietary process reduces emissions by up to 70%, with developments in the works that will raise that number to as much as 95%, for specific products.

Materials In addition to innovations at the manufacturing level, PrimaLoft’s longstanding use of recycled material also represents a drastic reduction in emissions. Since 2015, the use of recycled material has saved more than 22.9 million kgs of CO2, compared to using virgin polyester. This represents a reduction of 43%. In 2021, we saved more than 6.4 million kgs of CO2 – a 66% reduction Recycled Materials Carbon Footprint Impact 2021

Recycled Materials (Actual) 3,372,974 kgs CO2

P.U.R.E. Manufacturing Carbon Footprint Impact 2021 Standard Manufacturing (Equivalent) 9,801,719 kgs CO2

P.U.R.E. Manufacturing (Actual) 6,165 kgs CO2e

Standard Manufacturing (Equivalent) 11,989 kgs CO2e

What’s Next? Packaging. In 2022, PrimaLoft will be determining the carbon footprint associated with the current packaging of PrimaLoft finished goods and will begin to identify and source alternative packaging solutions with lower CO2 profiles. PrimaLoft will also analyze the CO2 footprint associated with shipping of raw materials (inputs) into our contract manufacturing locations as well as the shipping of finished goods (outputs) out of our contract manufacturing locations that PrimaLoft is responsible for.

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Global Supply Chain Network

New Business Systems Team based out of North America

An Asset Light Model PrimaLoft retains a global network of contract manufacturers, partnering with facilities across Asia, Europe and North America. This asset light model aligns perfectly with our company’s Relentlessly Responsible™ mission to reduce our impact on the environment, while also reducing lead-times and transit costs. We are able to strategically align our production locations so that they are clustered close to our customers’ garment factories. This allows us to reduce the emissions associated with the transportation of our products, through reduced transit distance and times. Our asset light model provides us the flexibility to quickly pivot and increase or decrease the number of contract partners in our supply chain network, as needed, in order to achieve a balanced production

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capacity within proximity to our customers. Our supply chain strategy is to ship within the same country or region once a product reaches a certain level of sales growth. In 2021, our top two contract manufacturers shipped an average of 63% of shipments within their region. This shipment strategy results in a 25% reduction in CO2 emissions.*

Business Systems Increase Efficiency PrimaLoft’s asset light model demands strong collaboration with our global vendor network. Our


*Calculations based on 2021 shipment totals from top two manufacturers, comparing emissions from ground shipping v. ocean freight

25 %

2 CO uc red

29%

tion

In 2021, our top contract manufacturers shipped an average of 63% of shipments within their region. This shipment strategy results in a 25% reduction in CO2 emissions.*

company has recently established a dedicated team focused on implementing and improving efficiencies across our operations. Examples include: The introduction of SourceDay in 2021, has bridged the email gap between PrimaLoft and our vendors. Purchase Orders are fully integrated between our Enterprise Resource Planning (ERP) system and SourceDay, allowing vendors 24/7 access to a shared platform. 10-12 lines of communication between PrimaLoft and a single vendor have been reduced to one platform for united collaboration. The introduction of NuORDER established a Customer Portal, granting our customers access to product data, certifications, and hourly updates to order status. Here, they can download shipping documents and manufacturing guidelines on demand, providing 24/7

self-service access for both our brand partners and their garment factories. Field automations within PrimaLoft’s ERP system have reduced order entry steps by 50%, enabling Customer Service to process a higher volume of orders, quickly. Fields auto-populate across records and transactions, and data from our global vendor network is integrated directly into the Sales Order, providing updates to orders in virtually real-time. Increased automation across pricing tools, data entry, information share between systems, and information flow to our customers has drastically increased efficiency within our customer service team. This allows our customer service representatives to better serve the needs of our brand partners, throughout the order process.

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Compliance Certifications are Essential When establishing partnerships with manufacturing facilities, comprehensive social and sustainability compliance certifications are an essential consideration. PrimaLoft and our partners work together to protect the health, safety, and fundamental rights of our partner employees, and to protect and enhance the community and environment in which they operate. To do this, we use compliance and certification audits that are executed by certifying bodies.

Facility Environmental Module

Facility Social Labor Module

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What is it?

What it means for PrimaLoft

A holistic system that provides solutions in sustainable processing and manufacturing to industries and brands.

Our toll manufacturers go through an in-depth assessment audit every 1-3 years. If concerning non-conformances are found, the site is required to resolve them with a corrective action before certification can be granted. PrimaLoft currently holds BLUESIGN certification at five toll locations, and two additional locations are undergoing certification with expected completion in 2022.

One of the world’s best-known labels for textiles tested for harmful substances, if a textile article carries the STANDARD 100 label, you can be certain that every component of the article has been tested for harmful substances and that the article is considered harmless for human health.

Over 90% of our products go through OEKO-TEX Standard 100 testing, under Class I certification. This is the highest level of testing offered with strictest limit values to ensure products are safe enough for infants.

An international, voluntary, full product standard that sets requirements for third-party certification of recycled content, chain of custody, social and environmental practices and chemical restrictions

Our toll manufacturers go through Global Recycled Standard certification on an annual basis, including a social compliance review. We currently have eight locations that are GRS certified, as well as our Latham and Xiamen PrimaLoft offices.

A third-party certifying body executes audits at the factory level to ensure down is being sourced in an ethical manner, adhering to RDS requirements - no live plucking or force feeding and the ethical treatment of duck or geese for the down being sourced, as well as full transparency and traceability behind all down being sourced.

Our China, Taiwan and Italian manufacturing facilities are each audited annually for RDS certification.

The Higg FEM provides verified, actionable, quantifiable environmental performance insights into our supply chain, across the following: Environmental management system, Energy use, Greenhouse gas emissions, Water use, Wastewater, Emissions to air (if applicable), Waste management, Chemical use and management.

Once verification is complete, the modules can be viewed and shared with brands/customers on the Higg portal to understand environmental performance across our facilities.

The Higg FSLM measures the social labor practices facilities have in place in the manufacturing process and helps improve the conditions for workers in the supply chain.

On an annual basis, we require our sites to complete the FSLM. Once completed, a third-party verifier will review all information and verify accuracy of the data.

The certification process includes comprehensive system audits that cover every aspect of testing.

Meeting ISO 17025 certification standards demonstrates that our Latham, NY lab operates competently and generates valid results, promoting confidence in its test work, globally.


Market Desire Beyond Insulation & Fabric

PrimaLoft has traditionally focused its business on insulation and fabric applications for apparel and bedding. However, our expertise in sustainable fibers and advanced materials allows us the unique opportunity to expand beyond those markets and introduce PrimaLoft into the growing non-woven market, which represents roughly $65 billion, globally.

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Consumer behavior and new legislation are driving a need for more sustainable products in the nonwoven industry. PrimaLoft is uniquely positioned to make a positive impact and deliver to customers in these markets.

Manufacturers are looking for ways to reduce impact through the use of renewables, recycled content, and plastic-free raw materials, as well as materials with compostable or biodegradable properties. PrimaLoft is well positioned to meet this growing need. The opportunity in the nonwoven market for technologies like PrimaLoft® Bio™, which is designed to biodegrade* and return to materials found in nature, is immense. In recent years, PrimaLoft has increased focus on our licensing business in an effort to capitalize on that opportunity. A key component of that effort is our valuable partnership with Fiberpartner – a leading global supplier of staple fibers, technical yarns and plastics.

2025 Global Outlook for Nonwovens Production by End-Use (thousand tonnes)

Absorbent Hygiene Production: 4,232

Other Nonwovens Opportunities Production: 13,497

Filtration Medical Geosynthetics Home/Office Furnishings Building Construction Transportation Apparel Other

*93.8% biodegradation in 646 days under ASTM D5511 conditions (accelerated landfill environment); 86.1% biodegradation in 1563 days under ASTM D6691 conditions (accelerated marine/ocean environment); 17.8% biodegradation in 241 days under ASTM D5210 conditions (wastewater environment). The stated rate and extent of degradation do not mean that the product will continue to degrade.

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Wipes

Production: 2,712

Source: Global Nonwoven Markets Report; INDA/EDANA/ANFA, 2021


2021 Key Brand Partnerships In recent years, the portfolio of technologies developed under our Relentlessly ResponsibleTM mission has grown significantly. And 2021 was a powerful year in the adoption of these technologies by our brand partners.

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PrimaLoft® Insulation x Parley

PrimaLoft® Gold Insulation

Made from 100% recycled material, with 35-40% coming from plastic diverted from coastal and ocean environments.

High-performance, 100% recycled synthetic insulation that maintains up to 98% of its warmth in wet conditions.

2021 Impact

2021 Impact

822,640 Bottles

8,023,550 Bottles

34,353 kg CO2 Reduction

335,063 kg CO2 Reduction

Key Adopter

Key Adopter

Myshelter Hooded Jacket

Canada Goose Snow Mantra Boot

BIO™

PrimaLoft® Bio™

PrimaLoft® Black Insulation RISE

Made from 100% recycled material and designed to return to materials found in nature.

Increased loft allows for the technical lifestyle look traditionally created by using down, with all the benefits of a high-performance synthetic.

2021 Impact

2021 Impact

2,484,286 Bottles

18,311,092 Bottles

103,744 kg CO2 Reduction

764,671 kg CO2 Reduction

Key Adopter

Key Adopter

Solace Boot

Round Jacket

Pelorus snap pullover

Forte sleeping bags RitterlingM Jacket

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PrimaLoft® Insulation ThermoPlume® A unique structure offers the luxurious benefits of down with the performance and socially conscious benefits of 100% recycled PrimaLoft synthetic insulation.

2021 Impact

22,442,550 Bottles

937,201 kg CO2 Reduction

A True Down Alternative

Key Adopter Lunar Lake jacket

PrimaLoft® Gold Insulation P.U.R.E.™ 100% recycled insulation made using a renewable manufacturing technology that drastically reduces carbon emissions during the production process.

2021 Impact

4,317,979 Bottles

180,319 kg CO2 Reduction

Key Adopter

PrimaLoft is at the forefront of a significant ongoing market trend - the gradual but accelerating movement away from down towards sustainable down alternatives. Our recycled loose-fill insulations position us to lead this charge, globally. 2021 saw PrimaLoft® ThermoPlume® emerge as the class leading product in this important category. Sales of ThermoPlume increased by more than 300% from 2020 to 2021, seeing great success with brands such as Lands’ End, Nike, Polo Ralph Lauren, Quiksilver & Timberland.

Nano Puff jackets

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Growing Demand for Sustainable Technologies 275% increase

337% increase 321% increase

2021 saw a significant increase in the adoption of key sustainable technologies. Approximate percent increase in sales, FY 2020 v. FY 2021

114% increase

PrimaLoft® Black Insulation 100% PCR

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PrimaLoft® Gold Insulation P.U.R.E.™ 100% PCR

PrimaLoft® Black Insulation ThermoPlume® 100% PCR

PrimaLoft® Black Insulation RISE 80% PCR


Connecting PrimaLoft + Our Conscious Consumer

2012 - 2020

2021

Partnership Marketing PrimaLoft has a strong and lengthy history providing partnership marketing support for hundreds of brand partners.

Brand Narrative Expansion In 2021, PrimaLoft expanded the brand narrative beyond its B2B marketing efforts and started communication directly with a targeted group of consumers. This newly defined target places high value on products that not only perform at the highest levels, but are also legitimately good for the world around them.

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PrimaLoft values marketing support as a key component to the success of the business. Given the brand’s purpose of unifying people, products and the planet, brand support is a necessity to ensure that PrimaLoft’s message of commitment to performance and sustainability is heard.

October 2021 Seek the Unseen™ launched as PrimaLoft’s first consumer campaign, bringing to life a product that is often unseen. Supported via paid social media advertising and a refreshed website, the Seek the Unseen campaign consists of an array of videos, supporting social content, and an influencer campaign.

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In a time where seemingly every moment of life is broadcast, there is something intriguing about unseen moments. The moments that provide a spark of inspiration, the moments that grant you the comfort you were looking for, the moments where you make a responsible decision to care for the earth. This campaign is about highlighting these moments, paying attention to them, and knowing that PrimaLoft can help make them happen. Encouraging people to look for these moments in their lives, and to look for PrimaLoft in their apparel, footwear, and bedding purchases, allows us to create an authentic link between the benefits of PrimaLoft and a consumer’s life.


Early campaign metrics are extremely positive,

Additionally, PrimaLoft launched the brand’s “PrimaLoft House” initiative,

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Take care of yourself take care of your family and the rest will fall into place.

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- Mike Joyce


A Bridge Back Our company is driven by its people. Employee safety, health and work-life balance is a top priority. In 2021, PrimaLoft implemented a “Bridge Back” program, setting a goal to support employees who take leave, enabling a smooth and healthy transition between time away and returning to work. For U.S. employees, we have expanded short-term leave benefits that cover welcoming a new member to the family (newborn, adoption, foster), as well as providing care for the health of a family member. Under the Bridge Back program, the primary parent will receive their full pay for up to 12 weeks, once their leave begins. If the employee is a secondary parent, they will receive 50% of their pay for up to 6 weeks which, combined with state benefits, will provide 100% of their salary, in most cases. When returning from full leave, managers will work with the employee to establish a transition plan that includes remote work options to allow additional flexibility. Additionally, PrimaLoft will be providing financial aid for childcare during the first year to assist with the financial challenges of a growing family. Our sincere hope is that these benefits combine to offer the support necessary for our employees to feel comfortable and confident in taking the time they need to strengthen family connections.

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Innov Carbon Negative Insulating Fibers

PrimaLoft and Origin Materials have launched a strategic alliance to develop and functionalize high-performance, carbon-negative fibers and filaments for an array of textile applications. PrimaLoft will utilize Origin’s technology and fully functionalize next-gen polymers for applicable use in textiles, reducing reliance on fossil fuels.

Relentlessly Summa

Soft

The thinner the fiber, the softer the material. PrimaLoft fibers are more than 50x thinner than a human hair - so they’re incredibly soft.

Durable

Strong enough to withstand the rigors of military use. PrimaLoft products are designed to last through any activity and repeated laundering.

ce

an

orm

rf Pe

Dry

Our water repellent products are created with fibers that are inherently hydrophobic + repel water without the use of harmful chemicals.

Warm

We start every material with ultra-fine fibers designed to trap warmth. This allows for comfort and thermal regulation.

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vation Product Vitality

One-for-One Down Replacement

64%* of our products have been introduced to the market within the last 5 years.

Recent advancements in fiber and processing technology have gotten us closer to a true, onefor-one, synthetic replacement for goose and duck down. While still in an incubation phase, we are encouraged by preliminary findings and the ability to eliminate global demand for animal by-products in favor of a blowable, synthetic, vegan alternative.

Responsible ary | 2021

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Reuse 2021

153,900,000 plastic bottles saved from oceans + landfills.

CO2 Reduction 2021

ina Su

25% of our insulation products are designed to reduce microplastic impact by returning to materials found in nature.

sta

Microplastics 2021

bili ty

6.4 million kgs of CO2 reduction.

Circular Enabled 2021

85% of our insulation products are circular enabled. *As of 12/31/2021, percentage of sales attributed to new products launched in the last five years

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Unleashing the power of

People Products Planet together in harmony


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