ESRS E2 Pollution |
Impact – Chemicals in the production of textiles and other products Substances of concern and substances of very high concern( SVHCs) are primarily present in the upstream stages of the production chain. Examples include pesticides used in cotton cultivation, as well as various chemicals applied in the manufacturing processes of different types of products to achieve desired properties and performance. Time horizon: S, M
Impact – Chemical emissions to water and soil In chemical intensive production processes – such as the textile value chain – the release of chemicals into water and soil occurs. This can affect people, living organisms, and food resources. Time horizon: S, M, L
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Risk – Compliance with chemical requirements Risk of unintentional breaches of chemical requirements or chemical taxation, as well as the risk of inventory that may not, should not, or cannot be sold due to changes in regulatory frameworks Time horizon: S, M, L |
The Group conducts systematic work with chemicals to limit the impact.
Any potential emissions and toxins may affect affected communities living and working nearby. This risk is primarily associated with upstream production. Therefore, an ongoing dialogue is maintained with suppliers to ensure that this risk is reduced and that necessary measures are taken in the event of any incidents.
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ESRS E3 Water and marine resources |
Impact – Water usage Clothing production requires large amounts of water. This is because water is used both in the cultivation of raw materials and in the manufacturing and dyeing of textiles. Extensive water use leads to several potential consequences, such as the depletion of local water resources in areas where water is already scarce, as well as pollution through the discharge of chemicals. Time horizon: S, M, L |
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Risk – Physical risks Access to water may affect where and how products can be manufactured, which can lead to higher production costs. Time horizon: M, L |
At present, the Group focuses primarily on water treatment in textile processes. |
ESRS E4 Biodiversity and ecosystems |
Impact – Indirect impact on biodiversity The impact on biodiversity is primarily linked to direct drivers such as climate change, upstream changes in land and water use associated with the establishment of new production facilities( suppliers), and pollution throughout the value chain. These factors may in turn affect the conservation status of species, the extent and condition of ecosystems, and dependencies on ecosystem services. Time horizon: M, L |
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Risk- Physical risks Potential financial effects primarily linked to climate change( which directly affects biodiversity). Time horizon: M, L |
At present, the Group focuses primarily on water and chemical management in textile processes.
Consequences for ecosystems have not been assessed.
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ESRS E5 Resource use and circular economy |
Impact – Resource inflow of natural resources Resource inflows primarily refer to materials supplied to contracted manufacturing units for the production of textile and plastic products, as well as packaging made of cardboard and plastic. Textile materials such as cotton and polyester account for the largest share.
The use of natural resources, such as cotton and wood based fibers, combined with water consumption in production, results in negative consequences upstream in the value chain. This can lead to environmental pressures and reduced availability of land and freshwater. Time horizon: S, M, L
Impact – Resource outflow of textile and other products The main products and materials resulting from the production process are clothing and textiles, as well as various types of so called " hard products " within the‘ Gifts and Home Furnishings’ segment. Time horizon: S, M, L
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Risk / Opportunity – Shift in market and technology A full transition to more sustainable materials and products, as well as the introduction of production methods that do not generate waste, may lead to higher production and handling costs. With increasing customer awareness and demand, this may also represent an opportunity – being at the forefront with a more sustainable offering can attract more customers. A shifting market also creates opportunities for new revenue streams through the development of new circular business models. Time horizon: S, M, L
Risk / Opportunity- The Group’ s reputation Both risks and opportunities are linked to stakeholders’ trust in the Group and the perception of its brands. For example, inadequate management of circular economy practices may affect stakeholder confidence, which in turn could lead to reduced sales. Conversely, strong performance can strengthen the brand and generate financial benefits. Time horizon: S, M, L
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The share coming from more sustainable fibers and materials increases every year. Areas such as quality, design, and product development are central to the adaptation of the strategy and business model. |
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Impact- Waste In the production chain, waste primarily refers to production residues, for example fabric pieces left over after cutting. Waste is also generated downstream in the value chain after the products’ use phase, which may result in waste disposal.
In our own operations, waste mainly consists of cardboard and plastic packaging from our warehouses, as well as waste generated in our own manufacturing, particularly at Orrefors Kosta Boda AB and Glasma AB. Time horizon: S, M
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Risk – Product-related legislation Stricter legislation regarding environmental impact and sustainability, such as the ESPR( Ecodesign for Sustainable Products Regulation), may pose risks if we do not stay updated on and comply with these requirements. Non compliance may result in fines, legal action, or reputational damage. Time horizon: S, M, L
Risk- Returns and complaints Poor quality products may lead to increased returns and complaints. Low quality and rapid wear of products can create a faster replacement cycle, which leads to higher consumption of resources and increased amounts of waste. Time horizon: S, M
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