2022 PrimaLoft Relentlessly Responsible™ Report

PrimaLoft Relentlessly Responsible Report

makes high performance

insulation felt by you and the planet.

Our Philosophy is Simple.

Relentlessly Responsible TM How do you choose between what’s good for you and what’s good for the earth? Isn’t it one and 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

When evaluating PrimaLoft’s position as a company, I always begin with our purpose: to unleash the full potential of people, products, and the planet.

Everything we do is driven by this guiding principle. It’s the “why” behind our Relentlessly Responsible™ mission to develop innovative solutions that push the boundaries of performance while reducing our impact on the environment.

Last year, the inaugural Relentlessly Responsible Report represented the culmination of more than a decade of work. It provided an overview of the purposeful efforts our company has taken in recent years to elevate both the performance and sustainability of our technologies and processes.

Reducing our environmental impact through continued use of recycled materials, designing for circularity, aggressive carbon reduction, and the development of technologies using non-petroleum based raw material continues to be at the forefront of our efforts. With the second annual issuance, we’ll be showcasing the progress we’ve made over the past year, as well as the latest strategies that will be shaping our future.

2022 was a monumental year for our company, highlighted by our acquisition by Compass Diversified (NYSE: CODI), a publicly traded holding company with a unique portfolio of middle-market business partners. CODI endeavors to be a leader in responsible investment and management practices and counts ESG as a critical component to their success.

As you review this report, I encourage you to read the summary of CODI’s ESG mission for additional insight as to why PrimaLoft was a high priority for CODI.

The progress we’ve made would not be possible without the dedication and meaningful work from every member of our company. I’d like to recognize those efforts and thank everyone who contributed to this report. I look forward to our continued commitment to our purpose.

Michael Joyce PrimaLoft president & CEO

Contributors

to the 2022 Relentlessly ResponsibleTM Report. The content of this report would not be possible without the dedicated work of many additional PrimaLoft team members & partners.

Haley Pullin Brand Building Senior Manager

Bob Sameski Licensing Vice President

Tom Seaver Chief Financial Officer

Tara Maurer-Mackay Product Strategy Senior Vice President

Mike Martini Operations Senior Vice President

Manish Jain Technology & Innovation Senior Vice President

Chris Humphris Global Sales Senior Vice President

Erika Enquist QC & Compliance Manager

Ken Fisk Global Communications Senior Manager

Shana Getchell Global Brand Building Senior Vice President

Zoe Koskinas Head of ESG CODI Vice President

Mike Joyce President + CEO

Mary Schulte Creative Lead

Lydia Youngman Social Media Specialist

Our Development Lens

We approach development from both a performance and sustainable angle – both elevated and considered, neither sacrificed. We believe there is a symbiotic relationship between the two – a partnership. As the leader in Advanced Material Technologies, we feel an obligation to our consumers and to the planet on which we live and play.

Our technological developments are grounded by this obligation and mission –to develop high-performing, long lasting, sustainably built products.

End of Life Solutions

Many of our materials can be repurposed and remade, again and again, into the same highperformance fibers.

TheJourneyContinues ...

Reuse

We start with recycled content, sourcing from PET bottles, and recently, from plastics sourced near coastal waterways and tributaries.

Microplastic Reduction

Certain products within our portfolio are complemented by an additive that accelerates the biodegradation process under certain conditions*. This acceleration was designed not as an endof-life solution, but as a measure to reduce impact during the product’s normal lifecycle.

*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.

Durability

Our products are then architected for product longevity, and strengthened by structural and mechanical integrity. Unique textile processing and manufacturing techniques are utilized. We launched our PrimaLoft® UTILITY product family in 2022, representing our best efforts in this space.

Carbon Reduction

We continue to expand our PrimaLoft® P.U.R.E.™ manufacturing footprint to reduce carbon emissions during the production process. What started with one product, introduced commercially in 2020, has expanded to 8 products over 5 manufacturing locations.

The PrimaLoft portfolio is built upon a chassis of sustainable principles. It’s the foundation on which our product families are developed.

Our Progress

Launched PrimaLoft® UTILITY

Products within the PrimaLoft UTILITY family were built to last.

Sourced Ocean Bound Plastic

Introduced two products using recycled content sourced from coastal waterways, shorelines and tributaries.

Expanded PrimaLoft® P.U.R.E.™

Unique textile processing stabilizes the insulation for repeated use and wear. The products within this family are afforded a different level of regain and thermal management after compression, resulting in a line of products built for long-term use and comfort – our most durable products to date. Quality, durability and integrity are critical to our product lifecycle management. Enabling the longest life cycle of the product reduces the need to replace garments as often and is integral to supporting our circularity ambitions.

PrimaLoft® UTILITY will be available at retail in the fall of 2023.

Our intent is to 1) intercept polyester from entering these water systems and 2) repurpose this plastic waste and give it a second life in the form of performance insulation.

Converted five additional insulation products to P.U.R.E. Manufacturing Technology.

We now offer eight products that achieve carbon emissions savings of 50% or greater over traditional manufacturing methods.

Looking Ahead...

Developing High-Performance Fibers from CarbonNegative Material

A strategic alliance between Origin Materials and PrimaLoft to develop high-performance, fibers made from carbon-negative raw materials for diverse product applications was formed in 2021. This alliance will focus on carbon-negative polyester and next-generation polymers, turning wood residue into carbonnegative materials that reduce our reliance on fossil fuels.

Advancing PrimaLoft®

Replacing Down

We continue to invest resources into realizing a true one-for-one synthetic substitute that replicates the look, feel, comfort and performance of goose and duck down.

While still several years from commercialization, in 2022, we completed a prospectus life cycle analysis that showed promising results for how using carbon-negative materials drastically reduces the overall carbon footprint of our fiber development. With time and scale, this bio-derived polyester will serve as a new sustainable chassis on which further technologies will be built.

with less. This ideology drives our search for technologies that will allow us to achieve impressive thermal performance with less material. We continue to evaluate existing and emerging solutions within, and outside of, our industry to create new systems and performance levels that omit unnecessary layers and weight.

The introduction of PrimaLoft® Active Evolve into our line architecture supports the ability to go from a 3-layer garment design to a 2-or even 1-layer design, providing breathable warmth and moisture management for a wider ranger of weather conditions and physical activities.

PrimaLoft® Active Evolve saw breakthrough progress in 2022, best exemplified by SITKA’s launch of their Ambient collection.

In 2023, PrimaLoft will introduce ThermoPlume+®, further expanding our existing ThermoPlume® platform. ThermoPlume+® is a hybrid blend of varying structures that provides unique loft and dimension. Our propriety fiber recipe affords the same comfort and performance benefits customers expect from PrimaLoft®: warmth even when wet, compressibility and recovery, and a luxurious soft hand. Reduced fill requirements and support for wider channels closes the gap between synthetic down alternatives and goose/duck down.

Beyond ThermoPlume+®, we continue to invest resources in materials, processing, and manufacturing to expand and improve our synthetic down alternative offerings. As the experts in advanced material technologies, we are uniquely qualified to lead this category and develop products that are accessible, sustainably built and performance driven.

Capturing Down

PrimaLoft continues to break into the down market.

Historically, we’ve been heavily focused on batting or rolled-good products. In 2012, we introduced our first loose fill product in partnership with The North Face. Since then, we have introduced several lines of loose fill products, with PrimaLoft® ThermoPlume® at the forefront of the synthetic down alternative movement.

Sales of PrimaLoft® ThermoPlume® saw an increase of 78% in 2022, to become the single largest volume product within the PrimaLoft portfolio.

ThermoPlume®

Increasingly, customers are interested in vegan-friendly alternatives to animal by-products. The science behind the development and commercialization of these products is growing in sophistication and efficiency and we are proud to be leading this category.

2022 saw an acceleration of this trend towards sustainable, manmade down replacement products becoming an important part of most apparel brands’ outerwear offerings. PrimaLoft® ThermoPlume® continues to meet this demand.

Largest brand adoptions by volume include ALO, CMP, CODE GRAPHY, Ecoalf, FIGS, Free People, Jean-Michel Basquiat, Joe Fresh, Land’s End, Nike, Peuterey, Polo Ralph Lauren, PUMA, Ripzone, Sun Valley and Tentree.

2021 Sales of PrimaLoft® ThermoPlume®

2022 Sales of PrimaLoft® ThermoPlume®

Reducing Carbon Emissions in Our Supply Chain

PrimaLoft has invested heavily in disrupting traditional manufacturing processes.

The result is PrimaLoft® P.U.R.E.™, a renewable manufacturing technology that is P roduced U sing Reduced Emissions.

Sales of PrimaLoft® P.U.R.E.™ saw an increase of 118% in 2022.

Manufacturing

Our engineers have focused on increasing energy efficiency by making changes around the fiber recipe, introducing new process technology, and optimizing the source of energy to drastically reduce carbon emissions. This proprietary process provides customers with the same great performance while reducing emissions by 50% or greater over traditional manufacturing methods.

P.U.R.E. Manufacturing

Carbon Footprint Impact 2022

P.U.R.E. Manufacturing (Actual)

233,400 kgs CO2e

Standard Manufacturing (Equivalent)

Materials

625,000 kgs CO2e

In addition to innovations at the manufacturing level, PrimaLoft’s longstanding use of recycled material also represents a drastic reduction in emissions.

Recycled Materials

Carbon Footprint Impact 2022

Recycled Materials (Actual)

3,441,486 kgs CO2

Standard Manufacturing (Equivalent)

11,594,175 kgs CO2

Notable new brand adopters include: Cotopaxi, Houdini, Prana, Stone Island, The GAP and Vaude.

2021 Sales of PrimaLoft® P.U.R.E.TM

2022 Sales of PrimaLoft® P.U.R.E.TM

Operational Excellence

PrimaLoft continues to rely on 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 physically 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.

* Calculations based on 2022 shipment totals from top two manufacturers, comparing emissions from ground shipping v. ocean freight

New contract manufacturer in Padua, Italy

In 2022, we onboarded a new contract manufacturer in Padua, Italy, to better serve our European brand partners. Qualified to produce some of our most popular products, this new facility allows for better lead times for EU-to-EU shipments, reduced costs, and a reduced carbon footprint, compared to shipping from facilities in Asia.

In 2022, our top two contract manufacturers shipped an average of 60% of shipments within their region. This shipment strategy results in an approximately 25% reduction in CO2 emissions.*

29% 25%CO2reducti o n

0.145 kg CO2 is saved for every kg of product shipped

Essential Compliance Certifications Continue to Grow

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.

bluesign® is a holistic system that provides solutions in sustainable processing and manufacturing to industries and brands. As an independent authority, bluesign® checks the progress that a company has made in this effort, provides consistent development of solutions, and continuously optimizes its criteria.

PrimaLoft currently holds bluesign® certification at 7 contract manufacturer locations.

Our contract 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.

OceanCycle provides a 100% independent, third-party certification of ocean-bound plastics recycling supply chains to ensure that they meet international quality, ethical, environmental, and labor standards.

Ocean-bound plastic is defined as plastic waste recovered from within 50 km (30 miles) of an ocean coastline or major waterway that feeds into the ocean in a geographic region that lacks formal waste management. Except in the case of a sea, material collected from major waterways may be no further than 200 km from the mouth or end point of that waterway.

Our contract manufacturers go through Global Recycled Standard certification on an annual basis. We currently have 8 locations that are GRS certified, as well as our Latham and Xiamen PrimaLoft offices.

In addition, locations also go through a social compliance review as part of this annual audit to ensure workers are treated fairly and factory management is following proper standards.

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

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

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

Facility Environmental Module

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 and customers on the Higg portal to understand environmental performance across our facilities.

The certification process includes comprehensive system audits that cover every aspect of testing. Meeting ISO 17025 certification standards demonstrates that a lab operates competently and generates valid results, promoting confidence in its test work globally.

Facility Social Labor Module

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 thirdparty verifier will go in to review all information and verify the accuracy of the data.

2022 Key Brand Partnerships

Our brand partners continue to showcase our wide range of Relentlessly Responsible™ product offerings.

PrimaLoft® Active Evolve Insulation

Unique construction that promotes moisture management during exertion and thermal performance while at rest.

2022 Impact

752,628 Bottles

31,430 kg CO2 Reduction

Key Adopter

Ambient Collection

PrimaLoft® Bio™

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

2022 Impact

2,125,966 Bottles

88,780 kg CO2 Reduction

Key Adopter

The Super (Re)Puff™

BIO

Houdini Bouncer Jacket powered by PrimaLoft® Black Insulation RISE.

PrimaLoft® Gold Insulation

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

2022 Impact

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.

2022 Impact

10,914,980 Bottles

455,809 kg CO2 Reduction

Key Adopter

Oven Mittens

PrimaLoft® Black Insulation RISE

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

2022 Impact

20,804,920 Bottles

868,813 kg CO2 Reduction

Key Adopter

Bouncer Jacket

40,321,217 Bottles

1,683,814 kg CO2 Reduction

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.

2022 Impact

8,496,578 Bottles

354,817 kg CO2 Reduction

Key Adopter

Nano Puff Jackets

Expanding Sustainable Technologies Outside of Apparel

Any company depending on polyester knows that to future-proof the business, they must speed up the transformation to a more sustainable production and consumption of polyester. Today, consumers expect brands to take an active stance when it comes to sustainability, and brands are now responding to consumers’ wishes for more sustainable products.

Through PrimaLoft’s licensing model, our PrimaLoft® Bio™ technology has begun to have an impact across new segments by delivering the message that polyester is no longer invincible. This growing desire for more sustainable solutions has opened the door for some early adoptions of PrimaLoft® Bio™ in new market segments, including medical care.

Sleep Angel Medical adopted PrimaLoft® Bio™ technology in 2022 for use in their line of PneumaPure® medical pillows. Their barrier bedding innovation increases utilization time, reduces water waste and now, with PrimaLoft® Bio™, takes another important step in life cycle responsibility and sustainability.

Spry Therapeutics introduced the world’s first “clean and green” positioning pillow for healthcare with PrimaLoft® BioTM technology. Bill Purdy, CEO of Spry Therapeutics, said, “By partnering with Fiberpartner® and PrimaLoft, we’re now able to make our filtered positioning products even more sustainable –allowing healthcare facilities to prioritize both patient safety and environmental responsibility.”

PrimaLoft has always been a leader in developing innovative products for the Home segment that focus on health and wellness, comfort, performance and sustainability. The introduction of PrimaLoft® Bio™ into the Home market is beginning to gain hold as consumers’ desire for new sustainable products grows. Our licensing partner, Fiberpartner®, is seeing growth and adoption with a variety of new customers in Europe.

In North America, our licensee, DownLite, has moved all their customers into PrimaLoft 100% PCR products that are GRS and OEKO-TEX Standard 100 certified.

Fiberpartner ® is involved in over 150 projects with PrimaLoft® Bio™, spread across 16 countries, with customers across hygiene, wipes, medical, agriculture, construction, home and automotive products. Fiberpartner® has continuously invested in testing the applicability of PrimaLoft® Bio™ technology on a variety of synthetic fibers used in a diverse set of industry segments, with the goal of proving its biodegradability across different materials and environments.

PrimaLoft Biodegradability Lab Launches with University Partnership

As part of our relentless pursuit of a better future, we were proud to partner with the University of Massachusetts Dartmouth and the Massachusetts Technology

^ PrimaLoft testing + Fiberpartner testing of PrimaLoft® BioTM

PrimaLoft Continues to Connect with Consumers

In 2021, we launched PrimaLoft’s first ever consumer-facing campaign, Seek The Unseen™ to bring brand awareness to the consumer. In 2022, we built upon that success with increased paid social media and influencer support.

We supported a wide range of influencers, ranging from fashion, lifestyle, and home bloggers to outdoor enthusiasts and highperformance athletes.

We also relaunched our Marketplace to highlight our brand partners, show the robust scope of our product collaborations, and create a seamless shopping experience for consumers.

The result of our B2C efforts is more impressions, higher engagement, stronger brand recall, and more web traffic than ever before—all working together to create momentum that we will continue to build on.

Seek the Unseen™

Seek the Unseen™ is our first-ever B2C campaign. It celebrates the unseen moments in life that are enabled by our performance technologies. Whether you’re scaling a mountain, hitting the slopes, or enjoying a brisk morning walk, PrimaLoft is there with high-performance insulation felt by you and the planet.

Brands that Matter

This past fall, Fast Company announced that PrimaLoft was selected as an honoree for their 2022 Brands That Matter issue. The list celebrates over 140 brands that have achieved relevance through their cultural impact and social engagement. We were selected because of our Relentlessly Responsible™ mission to elevate performance and sustainability, through innovation. Our inclusion on Fast Company’s 2022 list of Brands That Matter is a significant milestone on our journey to bring PrimaLoft to the consumer.

- Mike Joyce

We are all stewards of this company for a period of time. And we all want to leave it better than we found it. The same is true for our planet.

Promoting Prosperity for Our Employees

PrimaLoft’s success as a company is driven by our people. Every person impacts the success of our business, and the organization recognizes these contributions through the PrimaLoft Prosperity Plan. This plan aligns and rewards all employees with the financial performance of the company, long term, through the issuance of stock options. While PrimaLoft is not a publicly traded company, we created this system to ensure that our employees will benefit directly from the value creation that can only be achieved through the high performance of our people.

Moving Forward with Compass Diversified

We are proud to be working with Compass Diversified, a company that has implemented extensive environmental, social and governance policies for both themselves, as well as all companies that are a part of the CODI group. PrimaLoft is always striving to lead in these areas and, supported by CODI, we are currently in the process of implementing a tracking tool, Novata, which is used to collect data and report out ESG metrics related to our Latham and Xiamen offices. We report out information such as GHG emissions, water use, as well as a series of other ESG-related metrics.

A Message from CODI

Vice President, Head of ESG - Zoe Koskinas

CODI endeavors to be a leader in responsible investment and management practices, which we believe enables our middlemarket business partners to leave a sustainable legacy for future generations. ESG is critical to our company’s success. CODI is built to help our companies achieve long-term, sustainable success by leading the industry in responsible investment practices, taking care of our people and our planet, and holding ourselves to a higher standard of transparency and accountability.

Our goal is to generate measurable social and environmental benefits that align with our values and create strong financial returns. We work to be transparent and accountable in all aspects of our business. This imperative is driven through our unique business model, which enables us to invest in people, processes, and growth opportunities that facilitate long-term transformational change for our companies and the world they operate in.

Our ESG goals and action plans are very important not only to us but to all our companies’ overall business strategies. With our most recent acquisition of PrimaLoft and their Relentlessly Responsible mission, we knew that PrimaLoft was the right partner for us. A company like PrimaLoft’s ability to retain and recruit talent, preserve engagements with mission-critical suppliers, vendors, and other partners, manage customer relationships, and otherwise secure its license to operate is being shaped by our stakeholders’ view of their sustainability credentials.

The volatility that we face today only underlines the importance of businesses like ours and PrimaLoft stepping up with purpose.

PrimaLoft® Active Evolve

2022 saw significant interest in our PrimaLoft® Active Evolve series of insulating fabrics. Developed for aerobic activity, it provides unmatched breathability and ample warmth. Its unique construction enables designers to create garments that reduce the layers needed to keep you comfortable during active pursuits.

Soft

The thinner the fiber, the softer the material. PrimaLoft fibers are 7x thinner than a human - 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.

Dry

Our water-repellent products are created with fibers that are inherently hydrophobic and 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.

Product Vitality

68%* of our products have been introduced to the market within the last 5 years.

ResponsibleTM Summary | 2022

True Down Replacements

The trend of apparel brands seeking out sustainable, synthetic down replacements accelerated in 2022. Technologies like PrimaLoft® ThermoPlume® are providing solutions for brands but, we continue to strive towards a true, one-toone replacement for natural down.

Reuse 2022

777,000,000 plastic bottles saved from oceans and landfills. 27% increase over 2021.

CO2 Reduction 2022

8.1 million kgs of CO2 reduction through the use of recycled materials. 27% increase over 2021.

Microplastics 2022

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

Circular Enabled 2022

85% of our insulation products are circular enabled.

Sustainability

*As of 12/31/2022, percentage of sales attributed to new products launched in the last five years