NWG // SUSTAINABILITY REPORT
Policies and guidelines related to circular economy New Wave Group establishes in its CSR and environmental policy that the company shall:
# Strive to minimize the use of natural resources( direct impact) and reduce resource consumption in the production of the company’ s products.
# Manufacture products with more preferred fibers and materials- defined as those that consistently reduce impact and provide greater benefits for the climate, nature, and people compared to conventional alternatives- whenever possible without compromising quality.
# Manage resources responsibly and ensure that waste generated by the company’ s operations is handled within national recycling systems. Textile reuse and recycling should be prioritized.
Additionally, the company has a quality program and a plastics strategy aimed at reducing plastic usage.
Actions and resources related to circular economy Responsibility for product design, considering factors such as functionality, repairability, and recyclability, as well as transitioning to more sustainable materials, lies with each company within the group and their product development departments. In recent years, there has been a significant shift toward products and packaging made from more preferred materials such as organic cotton, solution-dyed polyester, recycled polyester, and other recycled materials, see more under“ products with sustainability attributes” on page 72.
Regardless of the material used, quality remains a central focus to ensure the long lifespan of products. The Group has a strong advantage in its procurement strategy, which relies on direct purchasing from suppliers without intermediaries that could diminish influence in the value chain. The company employs its own quality controllers, who regularly visit manufacturing facilities for inspections. New Wave Group also operates its own quality laboratories, equipped to perform various quality tests, such as shrinkage, colorfastness, and pilling for textiles.
Furthermore, waste generated within subsidiaries’ own facilities is managed through a combination of waste reduction, reuse, and recycling within the framework of national recycling systems.
Targets related to circular economy Currently, New Wave Group’ s overarching group-wide targets are primarily related to“ products with sustainability attributes”( see more on page 72).
Social information
Own workforce Material impacts, risks and opportunities New Wave Group’ s workforce primarily consists of office staff and warehouse workers at subsidiaries with warehouse operations. A smaller portion is involved in production, mainly in specific regions. The company operates under a decentralized organizational model, meaning each subsidiary is directly responsible for its employees, including working conditions and workplace environment. Key impacts and risks include:
# Workplace environment and health. Office workers may face risks such as ergonomic injuries, stress, and mental health issues, particularly in demanding or fast-paced environments. Warehouse and production staff may encounter physical risks, such as heavy lifting, repetitive motions, noise, and insufficient workplace safety measures.
# Inequality and variations. Given New Wave Group’ s operations across multiple countries with diverse labor laws and workplace cultures, there is a risk of unequal working conditions between subsidiaries and regions. This could impact employees’ perceptions of fairness and corporate culture. Lack of alignment in conditions may lead to discrepancies in access to resources such as training, healthcare, and employment benefits.
# Recruitment and skills provision. Challenges in attracting and retaining qualified personnel in a competitive global labor market. There is a risk of skill shortages in certain regions or industries, which could affect productivity and operational quality.
# Psychosocial factors. Cultural differences or communication gaps within the decentralized organization could lead to uncertainty or workplace conflicts. Expectations of high flexibility, particularly in global roles, could negatively impact work-life balance.
# Compliance with labor laws. Risk of unintentional violations of labor regulations in countries with complex or evolving legislation, potentially leading to legal and financial consequences. Ensuring consistent standards for working conditions and workplace safety can be challenging.
# External factors. Pandemics, natural disasters, or economic crises can impact workforce health, safety, and job security. Technological advancements and digitalization may require rapid adjustments and new skills, posing challenges for some employees.
Opportunities include enhancing the employer brand and market position by offering attractive working conditions, robust internal policies, and opportunities for skill development. Additionally, implementing clearer global standards and internal frameworks for working conditions and workplace
076 // ANNUAL REPORT