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Kathmandu Sustainability Report 2019

ESG8 October 2019KMDConsumer Discretionary

KATHMANDU HOLDINGS LIMITED
Sustainability

Report 2019

Whakaoho te Manurau I
roto ia tatou

To inspire and equip the

adventurer in all of us.

Since 1987, we’ve been

engineering gear to equip

adventurers around the world

in their quest to discover.

Our passion is to inspire

everyone to feel the thrill of

travel and adventure.

Nothing enriches us like

exploring our planet, which is

why caring for it is at our

core. We strongly believe

in sustainable product

development and doing

business ethically. We’re

focused on minimising

environmental impact, and

look to contribute to the

wider community.

We believe we have

an opportunity, and

responsibility,

to help create a better world.

Na tatou – nga kaitiaki

o te Ao

We need to care for this

world together

Inspiring

adventure is

what inspires us.

The people who make up

Kathmandu are travellers and

adventurers from all over the globe.

From our beautiful, untamed home

New Zealand, we go out into the

world with a purpose at heart.

INTRODUCTIONSUSTAINABILITY REPORT 20191SUSTAINABILITY REPORT 2019

Southern Alps / Ka Tiritiri o te Moana – South Island, New Zealand

RECYCLED 9.3 MILLION
PLASTIC BOTTLES INTO

OUR GEAR

LAUNCHED OUR NEW

‘BEST FOR THE WORLD’

FIVE YEAR SUSTAINABILITY PLAN

RANKED SECOND IN THE

TEXTILE EXCHANGE REPORT

THREE YEARS RUNNING

SCORED AN ‘A’ IN THE

ETHICAL FASHION REPORT

TWO YEARS RUNNING

BECAME A CERTIFIED B CORP,

MEETING THE HIGHEST VERIFIED

STANDARDS OF SOCIAL AND

ENVIRONMENTAL PERFORMANCE

A

2

Our top 5

sustainability

highlights.

At Kathmandu, sustainability isn’t

a department, it’s a way of doing

things. Here are some of our

highlights from this year.

INTRODUCTIONSUSTAINABILITY REPORT 201932SUSTAINABILITY REPORT 2019

Contents.
Our biggest news in sustainability

this year is the announcement that

Kathmandu has become the

largest company in Australia and

New Zealand to join the B Corp

movement.

Certified B Corporations commit to

using business as a force for good

to create a more sustainable and

inclusive economy.

The certification measures

performance in five categories:

governance, workers, customers,

community and the environment.

Sustainability has always been part

of the Kathmandu DNA, and this

milestone reflects the hard work

our teams have done over the years

to improve the lives of people in our

supply chain and our community

and the efforts we’ve made to

lessen our impact on the planet.

This year, we released a five-year

sustainability plan that pushes our

efforts in all these areas even

further. It includes our new social

impact statement to positively

impact the lives of 100,000 people

through adventure and education.

The plan also challenges us to

integrate the principles of circular

economy throughout our business.

It’s all part of our mission to inspire

and equip the adventurer in all of us.

XAVIER SIMONET

CHIEF EXECUTIVE OFFICER

DAVID KIRK

CHAIRMAN

Chairman’s and

CEO ’s r e p o r t.

6Ta matou korero – Our Stories

Kathmandu becomes a certified B Corp. Our fight against modern slavery.

And a campaign to encourage helpful travellers.

12Ta matou rerenga – Our Journey

An in-depth review of our strategy has led to an ambitious

new five-year plan.

22Nga kaiwhakarato – Our Suppliers

Moving beyond compliance to improving the lives of workers in

our supply chain.

32Nga hua – Our Products

A move towards more recycled materials and fibres from renewable

resources sets up the future.

46Ta matou tapuwae – Our Footprint

We set a goal to have net zero environmental harm from our business

operations by 2025.

54Ta matou hapori – Our Community

A new social impact statement aims to empower our community to

positively change the lives of 100,000 people in the next five years.

64Ta matou ranga – Our Team

A focus on diversity has led to a rainbow network and new roles

for people with disabilities.

INTRODUCTIONSUSTAINABILITY REPORT 201954SUSTAINABILITY REPORT 2019

Kathmandu has become the largest
certified B Corporation (B Corp) in

Australia and New Zealand.

We are proud to be the first publicly

listed certified B Corp in New Zealand

and the first outdoor apparel and

equipment retailer in Australia and

New Zealand to become one.

Kathmandu is part of a global ethical

business movement driving a more

sustainable and inclusive economy.

By harnessing the power of business,

B Corps aim to use profits as a means

to positive impacts for their

employees, communities and the

environment.

B Corp is an initiative from B Lab, a

global non-profit movement of people

using business as a force for good.

The B Corp assessment process

measures a company’s performance

in five categories: governance,

workers, customers, community and

the environment.

“The B Corp certification is a milestone

achievement for the company and

reflects Kathmandu’s exceptional

record in sustainability leadership,

which has been fundamental to our

success,” says Kathmandu CEO Xavier

Simonet.

“Sustainability is part of Kathmandu’s

DNA and is integral to our entire

operation, from our supply chain to

our materials and products and our

operational footprint.”

In the B Corp certification,

Kathmandu was awarded high scores

in the workers, environment and

community sections. These scores

reflect the work we’ve done in

preferred fibres and materials as well

as protecting the rights of employees

in our supply chain.

Globally, there are more than 3,000

companies that have become

certified B Corps after completing the

certification process. There are nearly

300 certified B Corps in Australia and

New Zealand, making it the fastest

growing region per capita.

“Kathmandu’s announcement as New

Zealand’s first B Corp-certified

multinational retail business and

Australasia’s biggest B Corp is a

significant milestone for Australia,

New Zealand and the wider B Corp

movement,” says B Lab Australia &

New Zealand CEO Andrew Davies.

“Certification is open to all sizes of

business, and we are seeing increasing

interest from large corporations

across the world Kathmandu’s

certification sends an important

signal for other big businesses to

follow in their lead.”

Business as a force

for good.

Kathmandu meets the

highest standards of

positive social and

environmental impact

6SUSTAINABILITY REPORT 2019OUR STORIESSUSTAINABILITY REPORT 20197

Slavery is not history.
Did you know that there are more

people in slavery now than at any

other time in human history?

1

It’s

estimated that 40.3 million people are

trapped or working against their will.

2

As a criminal industry, the global

profits from human trafficking are

second only to the drug trade.

3

Human

trafficking accounts for approximately

25% of modern slavery.

1

The other 75% of modern slaves are

hiding in global supply chains.

1

This is

often in the form of debt bondage or

debt slavery. This is when a person is

forced to work to pay off a debt. It

might start when a mother seeks a

loan to provide resources for her

children and then finds her entire

family forced into labour for the ever-

increasing loan. Attempts to escape

are often met with violence.

The solution requires action from

governments, NGOs and businesses.

The 2018 Global Slavery Index found

36 countries were taking steps to

investigate forced labour in business

or public supply chains, up from just

four countries in 2016.

Australia was one of them. The

Modern Slavery Act was passed by

the Australian Government in

October 2018.

From 1 July 2019, every company with

revenues of AU$100 million or more

are required to track the risks in their

supply chains. From 1 July 2020,

these companies will be required to

report their risks and what they are

doing about it.

Kathmandu Corporate Social

Response-ability Manager Gary Shaw

says the legislation is a big step

forward for reducing slavery.

“With 75% of modern slavery

happening in the global supply chains

of businesses, there is a huge

opportunity for businesses to make a

dent in this problem,” Gary says.

Gary has seen modern slavery and

human trafficking firsthand. For eight

years, he worked as a human rights

investigator, going undercover in 13

countries to help rescue enslaved

people and facilitate the prosecution

of the perpetrators.

“Right now, less than 2% of people in

slavery are liberated and their

perpetrators held accountable.

3

This

rate shows that governments and

NGOs working on this problem are not

going to address this issue without

the help of the private sector. The

Australian Modern Slavery Act creates

the opportunity for collaboration

between businesses, governments

and NGOs.”

Gary says the Act will mean all large

businesses will have to become more

aware of the risks.

“Initially, it might be confronting for

some businesses who have just

assumed that their supply chain is

free of slavery. A lot of people assume

that slavery ended in the 1800s. When

they start to look, they might be

surprised to find that their supply

chain includes high-risk industries or

product lines that cause, contribute or

are directly linked to modern slavery.”

Gary is hopeful about the response that

will come from more open reporting.

“The aim is not to say that you don’t

have slavery in your supply chain. The

legislation is encouraging companies

to report where they identify those

risks so that they can be addressed,”

Gary says. “Allowing businesses to

discuss slavery risks in the open

without fear of shame or criticism will

allow for the collaboration necessary

to shut it down.”



For Kathmandu, this meant ensuring

our supply chain was transparent

and that our workers had a voice. We

worked in partnership with our

suppliers and in collaboration with

other brands to proactively address

such risks.

At the heart of the Kathmandu

approach to human rights in the

supply chain is the brand statement –

to inspire and equip the adventurer in

all of us.

“That includes the people who make

our gear and to inspire adventure

presupposes that you have the

freedom to adventure in the first place.”

75% of modern

slaves are hiding

in global supply

chains.

1. The Mekong Club, Oct. 2019, themekongclub.

org

2. International Labour Organization and Walk

Free Foundation. Global Estimates of Modern

Slavery: Forced Labour and Forced Marriage,

2017, pp. 1–68. https://www.ilo.org/wcmsp5/

groups/public/---dgreports/---dcomm/

documents/publication/wcms_575479.pdf

3. United States Department of State.

Trafficking in Persons Report. US Department of

State Publication Office, June 2017, pp. 1-454

https://www.state.gov/wp-content/

uploads/2019/02/271339.pdf

8

SUSTAINABILITY REPORT 2019OUR STORIESSUSTAINABILITY REPORT 20199

A worker at one of our supplier factories

outside of Ho Chi Minh City, Vietnam.

Travel and tourism is a US$8 trillion
industry and the largest employer on

Earth. But as Elizabeth Becker writes

in Overbooked, “Travel and tourism

has become a behemoth, capable of

doing great good and great damage.”

As part of our World Ready brand

proposition last year, we decided to

take some responsibility to educate

travellers and address some of the

impacts of travel.

Helpful or Harmful is a report and

documentary series commissioned by

Kathmandu and released last year.

Research commissioned by

Kathmandu found a third of Aussies

and half of Kiwis think of themselves

as the best travellers in the world, yet

only 20% of us make an effort to spend

our money to benefit local people.

To help travellers match their actions

with their intentions, the Helpful or

Harmful report shines a light on

harmful effects of tourism and provides

education about how individual

travellers can be more helpful in the

choices they make when travelling.

The report looks at a problem called

“tourism leakage”. This is when

companies in developed nations take

more profit from travellers than the

less-developed destinations, which

still have to absorb the costs.

The report found that, on average, for

every US$100 spent by a tourist from

a developed country, only US$5 stays

in the developing destination

country’s economy.

Tourism can also be harmful when it

overloads infrastructure, damages

nature, alienates local residents or

threatens culture and heritage.

These ideas were explored by

investigative journalist Jan Fran, who

travelled to three areas impacted by

tourism to shine a light on these

issues in the three-part documentary

series. The films explored the impacts

of tourism in Bali, Nepal and Australia.

Kathmandu General Manager

Marketing and Online Paul Stern says

the series and report were designed to

educate customers and the public on

how to have a more positive impact.

“It’s part of our purpose to inspire

people to go travelling, but we felt we

also had a responsibility to help

people think a bit more deeply about

their impact.”

This content reached millions of

people. It sparked discussion on social

media – with many people grateful to

learn more about how they could be

more helpful.

The second phase of this project will

launch this year to include markets

beyond Australia and New Zealand.

Helpful or harmful.

“We felt we had a

responsibility to

help people think

more deeply about

their impact.”

PAUL STERN

GENERAL MANAGER

MARKETING AND ONLINE

SUSTAINABILITY REPORT 20191110SUSTAINABILITY REPORT 2019

A local Nepalese man outside a waste

incinerator. Burning of waste surges in

Nepal during peak tourism seasons.

OUR STORIES

PURIFY YOUR OWN

WATER

GET OFF THE

BEATEN TRACK

ALIENATED LOCAL

RESIDENTS

CHOOSE LOCAL,

ETHICAL OPERATORS

LEARN SOME LOCAL

LANGUAGE

DEGRADED TOURIST

EXPERIENCE

DAMAGE TO

NATURE

THREATS TO

CULTURE & HERITAGE

OVERLOADED

INFRASTRUCTURE

OFFSET YOUR

FLIGHTS

HARMFUL EFFECTS OF TOURISM

WAYS TO BE HELPFUL

Our journey.
Ta matou rerenga.

13OUR JOURNEYSUSTAINABILITY REPORT 201912SUSTAINABILITY REPORT 2019

Nepalese expedition guide Chhiring

Sherpa takes a break while hiking in

Nepal.

Four years ago, the United Nations
released a roadmap for ending

poverty, fighting injustice and tackling

climate change by 2030. The

Sustainable Development Goals

address the most pressing challenges

of our time, including climate change,

resource depletion, poverty and social

justice – aiming to help everyone from

governments and businesses to

citizens to transform our world by

stimulating actions that benefit

people and the planet.

These 17 global goals have defined

the agenda for good business –

because all businesses will benefit

from more resilient communities,

reliable access to natural resources

and a healthy population.

Although we’re proud of the work

we’ve done already, we know that

doing our part for sustainable

development will require us to keep

trekking this path. Understanding

where we are is the first step.

This year, we brought in Drs Brian and

Mary Nattrass of Sustainability

Partners to review our sustainability

strategy and initiatives. Based in

Canada, Brian and Mary are global

leaders in sustainability, having worked

with some of the world’s biggest

brands.

After a comprehensive review of our

current practices and strategies, Brian

and Mary’s report showed that,

although we are a leader in Australasia

and we stack up with global leaders

on material choices and human rights,

we still have room to improve

compared to global competitors in

some areas – particularly around our

environmental footprint, governance

and social impact.

The report strongly advised

Kathmandu to invest in these areas.

Both Brian and Mary emphasise one

thing. “Our vision for Kathmandu is

to be a bright, shining voice of

human rights coming out of the

southern hemisphere – and they can

do it at home as well as around the

world. They can do it with that

Kathmandu spirit of adventure and

do it in an active way. There is a real

opportunity for Kathmandu to lead in

the people space, generating truly

positive social impacts.”

We’re aiming to be best

for the world.

“Our new

sustainability

action plan is not

about Kathmandu

being the Best in

the World. It’s

focused on

making the best

decisions for the

world.”

OLIVIA BARCLAY

BRAND MANAGER

OUR JOURNEY14SUSTAINABILITY REPORT 2019SUSTAINABILITY REPORT 201915

SOCIAL IMPACT

Empower our community

to positively change

100,000 lives.

ACTION POINTS

Through collaboration, our

partners, suppliers and

Summit Club members will

strive to:

· improve the standard

of living and working

conditions for 50,000

workers in our supply

chain

· provide 30,000 Nepalese

people with access to

quality education

· give 10,000 Summit

Club members access

to volunteering and

outdoor adventure 

· provide 10,000

disadvantaged youth

with outdoor education

· proactively address

modern slavery within

our industry

· enhance worker

wellbeing through

mindset transformation

training.

PRODUCTS

100% of products

designed, developed and

manufactured using

elements of circularity

principles.


ACTION POINTS

Define our own unique

circularity principles.

FOOTPRINT

Net zero environmental

harm from our business.


ACTION POINTS

Operate only zero-waste

facilities.

Set science-based targets

to combat climate change.

Operate with a net zero

carbon footprint.

Have 100% sustainable

packaging materials by

2025.

TEAM

All Kathmandu team

members embody the

company purpose and

values.


ACTION POINTS

provide all team members

access to programmes that

align with the company's

purpose.

Rank in the top quartile

of high performance for

employee engagement.

be a leader in diversity and

inclusion.

SUPPLIERS

All direct suppliers across

our business meet our

minimum expectations

on their social and

environmental impacts.


ACTION POINTS

Ensure all suppliers across

our entire business are

subject to measuring and

improving their social and

environmental impact.

GOVERNANCE

Become a leading global

B Corp using our business

as a force for good.


ACTION POINTS

Become a leading certified

B Corp with an impact

score of >120.

CIRCULAR

Integrate circular

economy principles

within the business.


ACTION POINTS

Establish recommerce and

rental business models that

support and drive circular

economy solutions.

SDG

SDGSDG

SDG SDG SDG

A NEW FIVE-YEAR PLAN
After a comprehensive review by

Kathmandu, we have created a

five-year plan – Best for the World.

This new plan takes the

recommendations from the

Sustainability Partners review and

groups them into three pillars: people,

planet and practice.


BEST FOR PEOPLE

This pillar covers all the people in our

network – from the 50,000 people in

our supply chain to our 2,000

employees as well as our customers

and our wider community. This year,

we created our social impact

statement that sums it all up. Our

2025 aspirational goal is to empower

our community to positively change

the lives of 100,000 people. We’ll

inspire and equip people to discover

their potential through education,

personal development and wellbeing.

To achieve this goal, we’ll take action

over the next five years to improve the

standard of living and working

conditions for people in our supply

chain. We’ll help our partners provide

30,000 Nepalese people with access

to high-quality education. We’ll give

10,000 Summit Club members access

to outdoor adventure and volunteering

opportunities with free events.

For our team, we are aiming for 100%

of team members to embody the

company purpose and values. That

means we will be a leader in diversity

and inclusion and will rank in the top

quartile for employee engagement. It

will also mean staff have access to

programmes that align with the

company’s purpose.


BEST FOR THE PLANET

This pillar sees a big shift towards

circularity principles. The Ellen

MacArthur Foundation describes the

three principles of a circular economy

as designing out waste and pollution,

keeping products and materials in use

and regenerating natural systems. For

Kathmandu, this means applying

these principles to the way our

products are designed, developed and

manufactured. Our goal is to have

100% of our products designed,

developed and manufactured using

elements of circularity principles.

Our waste and carbon footprint are

another part of our impact on the

planet. Our aspirational goal for 2025

is to have zero environmental harm

from our business operations. To get

there, we’ll need to become carbon

zero, operate zero-waste facilities and

look at how we can remove waste

from our supply chains.


BEST FOR THE WORLD IN PRACTICE

In this pillar, we focus on governance

and widening the circular economy

principles to the whole business. This

year, as part of our goal to use our

business as a force for good, we

became a certified B Corp. This

means Kathmandu meets the highest

verified standards of positive social

and environmental impact. Our five-

year goal is to become a leading B

Corp by lifting our assessment score

from 83 points to more than 120.

The executive team and wider

leadership team will have training and

accountability for sustainability

performance. A sustainability

governance structure will provide clear

performance accountability for all of

our sustainability and community

impact strategies.

For the whole organisation to shift to

circular principles, we’ll need to clearly

define what our own circularity

principles are across the organisation.

From there, we’ll be able to experiment

with internal business models that

drive circular economy solutions. These

might be recommerce, repair or rental

business models.

INTEGRATE CIRCULAR ECONOMY

PRINCIPLES WITHIN OUR BUSINESS

BEST FOR THE WORLD

OUR 2025 SUSTAINABILITY GOALS

BECOME A LEADING GLOBAL

CERTIFIED B-CORP

100% OF PRODUCT DESIGNED,

DEVELOPED & MANUFACTURED

USING CIRCULARITY PRINCIPLES

NET ZERO ENVIRONMENTAL HARM

FROM OUR BUSINESS

EMPOWER OUR COMMUNITY TO

POSITIVELY CHANGE 100,000 LIVES

ALL KATHMANDU TEAM MEMBERS

EMBODY THE COMPANY PURPOSE

AND VALUES

ALL SUPPLIERS MEET OUR MINIMUM

EXPECTATIONS ON THEIR SOCIAL

AND ENVIRONMENTAL IMPACTS

16SUSTAINABILITY REPORT 2019OUR JOURNEYSUSTAINABILITY REPORT 201917

A little
help from

our friends.

CARBON DISCLOSURE

PROJECT

We submit an annual

report to the CDP, which

supports our carbon

measurement and reduction

programme.

ELEVATE

Elevate Limited is our

chosen supply chain partner

and an industry leader in

sustainability, auditing and

improvement services.

B CORP

Certified B Corporations®

(B Corps™) are for-profit

companies that use the

power of business to build a

more inclusive and

sustainable economy.

ENVIRO-MARK SOLUTIONS

Our membership with Enviro-

Mark Solutions helps us to

measure, manage and reduce

our carbon footprint.

GREEN BUILDING COUNCIL

AUSTRALIA

Our membership with the

GBCA supports our green

building programme.

We also work in collaboration

with this organisation in

trialling new projects.

LEATHER WORKING GROUP

Our work with the LWG helps

us to assess the environmental

compliance and performance

capabilities of our tanneries

and to promote sustainable

and appropriate environmental

business practices within the

leather industry.

CANOPY

We have been partners

with Canopy since 2016. We

work with them to use our

influence in our fabric

supply chain to protect the

world’s remaining ancient

and endangered forests

and endangered species

habitat.

HIMALAYAN TRUST

NEW ZEALAND

We have partnered with the

Himalayan Trust to further

improve outcomes in education

in remote rural Nepal.

Every explorer knows that a journey is better

with someone by your side. As we continue the

journey of sustainability, industry partnerships

provide important support – resources,

information and frameworks.

TEXTILE EXCHANGE

Our membership with the

Textile Exchange supports

our materials strategy, and

we also participate in their

Preferred Fiber & Materials

Market Report.

AUSTRALIAN PACKAGING

COVENANT ORGANISATION

We submit an annual report to

the APC, which supports our

packaging and waste strategy.

AUSTRALIAN HIMALAYAN

FOUNDATION

We have been partners with

the AHF since 2011. We work

with the AHF to support

communities in Nepal, the

nation that inspired our brand.

OUTDOOR INDUSTRY

ASSOCIATION

We participate in OIA’s

Sustainability Working Group,

a collaborative platform of

more than 300 outdoor brands

and suppliers working together

to identify and implement

better business practices.

SUSTAINABLE APPAREL

COALITION

Membership of the SAC gives

us access to the Higg Index

modules. We’ve been using

the index since 2014, which

supports our sustainability

strategy. The index guides us on

the environmental and social

impacts of our products and

how we can improve.

BLUESIGN

®


Our bluesign

®

system

partnership supports our

chemicals management

programme, materials

and products so that

they are environmentally

and socially friendly.

FAIR LABOR ASSOCIATION

We became the first brand in

the southern hemisphere to

achieve FLA accreditation.

This verifies that our social

compliance programme in our

supply chain exceeds the most

stringent global standards.

“B Corps form a

community of leaders

and drive a global

movement of people

using business as a

force for good.”

B CORP COMMUNITY

OUR JOURNEY18SUSTAINABILITY REPORT 2019SUSTAINABILITY REPORT 201919

Our world.
OUR JOURNEY20SUSTAINABILITY REPORT 2019SUSTAINABILITY REPORT 201921

New Zealand

Samoa

Ireland

Switzerland

Germany

Poland

Lithuania

Netherlands

Belgium

Iceland

Norway

Greece

Austria

Egypt

BrazilPeru

Macedonia

South Korea

Nigeria

Yemen

Algeria

Somalia

Ethiopia

Iraq

Malta

Italy

Spain

Denmark

France

UK

India

Myanmar

Malaysia

Pakistan

Chile

Zambia

Rwanda

Namibia

Mexico

Fiji

Papua New Guinea

Nepal

Cambodia

Afghanistan

Argentina

Canada

China

Russia

Japan

Taiwan

Hong Kong

Philippines

Vietnam

Laos

Thailand

Indonesia

South Africa

Kenya

Tanzania

Sri Lanka

Australia

KEY

FACTORIES

COMMUNITY

SPONSORSHIPS

49* NATIONALITIES

ACROSS OUR TEAM

MATERIALS SOURCING

OPERATIONS

101 TOTAL

China – 80

Vietnam – 11

Indonesia – 3

New Zealand – 3

Nepal – 1

Italy – 1

Spain – 1

Taiwan – 1

14 Adventure Sponsorship

winners travelled to


Mongolia, Namibia, Zambia,

Tanzania, Kenya, New Zealand,

Samoa, Papua New Guinea,

Nepal, Australia, Peru, Norway,

England, France



214 adventure sponsorship

recipients

*Estimated at the time of publication

New Zealand

48 stores

1 distribution centre

1 headquarters – Christchurch

Australia

119 stores

1 distribution centre

1 headquarters – Melbourne

America

1 headquarters – Bozeman

United Kingdom

1 store

USA

Scotland

Mongolia

Nga kaiwhakarato.
Our suppliers.

OUR SUPPLIERSSUSTAINABILITY REPORT 20192322SUSTAINABILITY REPORT 2019

A worker at one of our supplier

factories outside of Ho Chi Minh

City, Vietnam.

Our new five-year sustainability
strategy focuses on people, planet

and practice. We have included our

50,000 supply chain workers in our

social impact aspiration: to empower

our community to positively change

100,000 lives. We’ll do this by

proactively addressing modern slavery

in our industry, by working to improve

the standard of living and working

conditions for those people in our

supply chain and by enhancing worker

wellbeing with education, training

and mindset transformation.

This year, we travelled to one of our

most progressive factories in Vietnam

to collect stories from the workers

about how this training is already

changing lives.

Corporate Social Response-ability

Manager Gary Shaw says, “At a

baseline, we want to ensure that the

worst forms of modern slavery and

exploitation are eradicated. But that’s

just a baseline. The aspiration is that

we would empower and inspire our

workers to grow and flourish in the

same way we want to ourselves.”

Vietnamese supplier TGI has

implemented a mindset training

programme for its employees. Factory

manager Ms Nguyen Trang says they

saw this programme being used in

another company with good results

and implemented it at TGI in 2015.

The first round of training included

200 workers, and the second round

included 500 workers.

Trang says she’s seen the changes

firsthand. “They can organise their

daily life better. They are more

confident in themselves and in their

abilities. Before, when we offered

people promotions, many would

refuse. The mindset training helps

open their mind and be more positive.”

Trang says the people who go through

the training are better employees and

tend to stay with the company longer.

“We would like to improve the

education of the community. We

want to see our employees develop

their life with a transformed mindset

so they will be happier in their job and

in their family.”

My Le Thi is a worker who went

through the training. “I discovered I

had the ability to change my mindset

and overcome difficulties. There was a

class where we wrote down each of

the challenges we were facing. After

that, each person had the

opportunity to share their obstacles.

I heard about such difficult stories,

such sad circumstances. Instead of

hiding in fear, we were inspired to be

courageous and change together.

“After taking the course, I feel like, when

there are difficulties, I can openly share.

I can now openly report to my

supervisors to solve the obstacles and

not be afraid or hide things.

“What we learned was powerful

because we could apply our new skills

and ways of interacting with others to

our work but also in our daily life with

friends and family.”

New social impact

statement includes

workers.

Mindset training helps

workers see new possibilities.

“The aspiration

is that we would

empower and

inspire our

workers.”

GARY SHAW

CORPORATE SOCIAL

RESPONSE-ABILITY MANAGER

24SUSTAINABILITY REPORT 2019OUR SUPPLIERSSUSTAINABILITY REPORT 201925

DriFill down jackets being

produced in Shenzhen, China.

TGI factory manager

Ms Nguyen Trang.

Corrective action
plans

Kathmandu issued 144

corrective action plans

following social audits

designed to identify and

collaboratively improve the

working conditions and

wellbeing of those in our supply

chain.

Factory exits

Kathmandu exited 34 factories.

Some were as a result of

consolidating a number of

smaller suppliers with whom

we had very little influence. The

remaining suppliers were exited

after repeatedly failing to

improve and showing no

intention or desire to do so. By

working with fewer suppliers,

we can increase our purchasing

power, allowing us to have

more influence over workplace

best practice.

SUPPLIER PROFILE

Social media tools create

opportunities for change.

Last year, we introduced a new way

for workers around the world to let us

know directly when they felt their

human rights were being

compromised. WeChat is one of the

world’s largest multipurpose

communication platforms, and this

year, we have heard from several

workers via this channel.

These led to ongoing conversations

with our China-based supply chain

specialist and resulted in Kathmandu

contacting our suppliers to seek

clarification, redress or immediate

action.

Kathmandu Corporate Social

Response-ability Manager Gary Shaw

explains, “In one case, we received a

complaint about a particular manager

who was behaving in an unprofessional

manner towards some female workers.

“As a result of our intervention, the

factory invested in leadership training

and a review of management. They

hired someone to help them change

the company culture, and when the

manager concerned was unwilling to

change his behaviour, he was

ultimately dismissed.”


This is one example of how open lines of

communication with workers can spark

improvement. Kathmandu is currently

rolling out an equivalent platform in

Vietnam to ensure workers there can

also communicate immediately and

directly with the company.

“We aim to come alongside our suppliers

and work together to improve,” Gary

says.” In this case, our partner ELEVATE

was able to recommend the necessary

steps for improvement and facilitate

training. This is going beyond risk

management and compliance to

genuine positive change.”

“We created loans

to help the

employees have a

b e t ter life.”

MS NGUYEN TRANG

FACTORY MANAGER

The International Labour Organization

estimates that around 8 million

people around the world are enslaved

due to what is known as debt

bondage. It happens when people sell

their labour in exchange for a loan

and then become trapped in a

situation where they are unable to

repay or escape the bond. The

practice is illegal, but penalties are

rarely enforced in the parts of the

world where it’s most common. This is

the extreme end of the spectrum, but

debt can be crippling for many low-

wage workers.

Kathmandu’s Vietnam-based supplier

TGI has taken a progressive step

towards helping workers who find

themselves facing debt.

Factory manager Ms Nguyen Trang

explains, “Some workers need to

borrow money to help their parents

build a house or for a wedding,

university fees for their children or in

the case of illness. If they borrow

money from a private bank, the

interest is 20%. We created loans

from our management board to help

the employees have a better life so

they don’t have to worry and can

concentrate on their job.”

These interest-free loans are

approved on a case-by-case basis.

Stories are collected by the Youth

Union and put to the management

board. The company also has a

charitable foundation called Golden

Heart, which gives grants of US$500–

$10,000 to employees who are facing

hardship. The TGI management

board contributes US$22,000 per

year to this fund.

Progressive companies like TGI can see

the benefits of workers who are less

vulnerable and more engaged.

As a result of Kathmandu’s

commitment to sustainability, we

have identified suppliers like TGI as

"high-potential, high-growth vendors

that will be allocated more business.

“By supporting companies like TGI with

our business, we are directly

preventing and proactively addressing

those factors that fuel modern

slavery,” Corporate Social Response-

ability Gary Shaw says.

26SUSTAINABILITY REPORT 2019OUR SUPPLIERSSUSTAINABILITY REPORT 201927

How one factory protects

workers from debt

bondage.

101

KATHMANDU

BRANDED FACTORIES

37

KATHMANDU BRANDED

SUPPLIERS

OUR SUPPLIERS 2019

NEW SUPPLIERS SCREENED

USING SOCIAL CRITERIA

100

%

29

144

TOTAL AUDITS

CORRECTIVE

ACTION PLANS

34

EXITS

625

HOURS TRAINING STAFF

One of the other tools we use to
understand the concerns of workers in

our supply chain is Laborlink, an

anonymous confidential survey tool

that workers complete using their

own mobile phone.

“Audits are very good at looking at the

building, checking that fire escapes

aren’t blocked and that workers are

getting fairly paid, but it doesn’t

reveal things like harassment or

bullying, which can have a much

more detrimental impact,” says

Corporate Social Response-ability

Manager Gary Shaw.

The traditional audit process does

include interviews with workers, but

these are often done on the factory

premises, in sight of their managers,

and it’s not surprising that they result

in very few complaints. Some workers

are worried they will lose their jobs if

they speak up, or in some cases, there

is a cultural expectation that they

remain silent out of misplaced loyalty

to their employer.

“We did an audit this year on one of

our new suppliers that came back

almost perfect with a score of 93%.

However, in the anonymous Laborlink

survey, 58% of workers reported that

their supervisors often or sometimes

yell at them. So the workers’

wellbeing is still being impacted, and

that is a concern.”

Gary says the next step is a

conversation with the factory

managers. “We’ll ask if they

recognise the issues involved and

are equipped to address them. If

not, we’ll invite them to work with

ELEVATE to change the culture of

their workplaces and make it clear

to all what is acceptable.

“We don’t expect or anticipate

perfection. What we do require is

honest transparent communication

so we can work on these issues

together. This is how we create

change. We collaborate with ELEVATE

because they understand the issues,

have the experience and expertise

and know the culture,” Gary says.

“Honest

transparent

communication

is how we create

change.”

GARY SHAW

CORPORATE SOCIAL

RESPONSE-ABILITY MANAGER

Laborlink gives

workers a voice.

The 2019 Ethical Fashion Report was

released by Tearfund in April.

The Ethical Fashion Report sheds light

on what the industry and individual

companies are doing to address

issues such as forced labour, child

labour and other forms of worker

exploitation. Each report – since the

launch of the first in 2013 – has

tracked progress within the industry.

The change since 2013 has been

significant. The 2019 report assessed

130 fashion companies (representing

480 brands) on how well they

mitigate the risk of exploitation in

their supply chain.

Kathmandu scored an A again this

year and ranked as one of New

Zealand’s top five companies.

Companies are assessed at three

critical stages of the supply chain –

raw materials, inputs production and

final stage production. This year, in

addition to the four established key

areas of grading (policies,

transparency and traceability,

auditing and supplier relationships,

and worker employment), Tearfund

has added a fifth grading criteria –

environmental management.

Tearfund said this year saw the most

substantial progress in traceability

down the supply chain since its

conception in 2013.

Tearfund CEO Ian McInnes says this is

a sign that accountability is starting

to motivate change from companies.

Kathmandu Corporate Social

Response-ability Manager Gary Shaw

says the report helps raise the bar on

human rights in the supply chain.

“Companies are competitive by

nature. Now instead of trying to be

the best in the world, they’re

competing to be the best for the

world. Like the Modern Slavery Act,

the Ethical Fashion Report invites

companies to become more aware of

their supply chain and the impact

they have on the world.”

Another 'A' score in the

Ethical Fashion Report.

OUR SUPPLIERS28SUSTAINABILITY REPORT 2019SUSTAINABILITY REPORT 201929

A worker at one of our supplier

factories outside of Ho Chi

Minh City, Vietnam.

Garments being manufactured

at TGI in Vietnam.

COLLABORATION ADDRESSES
WORKER CONCERNS

In three cases, our grievance

mechanism resulted in us working with

other brands to increase our influence.

“Sometimes our spend with a

particular factory isn’t significant, so

our voice is not as influential,” explains

Corporate Social Response-ability

Manager Gary Shaw. “This is a

common problem for businesses all

over the world who truly want to

make a difference but don’t have the

leverage or influence to do so on their

own. However, as an example, by

working together with other brands,

we were able to approach one of our

shared factories with a unified and

powerful voice as together we made

up more than 90% of their business.

They were suddenly very responsive

and eager to address the issues we

raised.” This approach has been

welcomed by other brands. “New

ways of doing business built on

partnership and collaboration are

essential if we are going to

meaningfully improve the lives of

workers and their communities.”

SUPPLY CHAIN GOES PUBLIC

In December, we made 100% of our

Tier 1 manufacturing list public on the

Open Apparel Registry.

Gary says this move creates greater

transparency and accountability. “In

the past, many brands saw this as a

risk. But today, it’s best practice. It

means that, if someone finds human

rights violations in our supply chain,

we want people to be able to track us

down and let us know about it. We

are not about self-protection. We are

about collaboration and doing the

best for the world.”

Tier 1 includes all of our

manufacturers. Gary says the next

step is to increase transparency to our

Tier 2 suppliers, like fabric mills.

OBOZ TAKES FIRST STEPS ON

CORPORATE SOCIAL

RESPONSIBILITY JOURNEY

Gary spent time with the team at

Oboz this year to share his supply

chain approach and knowledge.

Oboz CEO Amy Beck says, “It was

great to have Gary and his

knowledge to partner with us on this

very important topic. We are in the

process of building our CSR and

sustainability road map. By working

with the Kathmandu team and their

processes, standards and training,

this will be an area of focus and

priority for our teams and partners.”

“We were able to

approach with a

unified and

powerful voice as

together we

made up more

than 90% of their

business.”

GARY SHAW

CORPORATE SOCIAL

RESPONSE-ABILITY MANAGER

Ongoing progress.

30SUSTAINABILITY REPORT 2019OUR SUPPLIERSSUSTAINABILITY REPORT 201931

Workers in our Nepalese factory handmaking

our annual Christmas ornament. All proceeds

go to our community partners to fund

education in Nepal.

Nga hua.
Our products.

OUR PRODUCTSSUSTAINABILITY REPORT 20193332SUSTAINABILITY REPORT 2019


Summit Club member Ben

on location in Kaikoura.

Number two in the
world for the third

year running.

The Textile Exchange is a global non-

profit on a mission to transform the

textile industry. It uses industry

benchmarking to help brands

understand where they are and where

they might be heading. As a network,

the Textile Exchange helps brands

share their knowledge and join forces

to influence change.

The Corporate Fiber & Materials

Benchmark is an annual report that

helps businesses to measure how their

preferred fibre and materials strategy

stacks up and to track progress.

Kathmandu is one of 43 companies in

the Founders Club of the Textile

Exchange and has reported its

material choices to the benchmark

study for three years.

For all three years, we’ve sat in the

Leader’s Circle for the Outdoor/Sports

category – with a number two ranking.

More importantly, the benchmarking

programme has been able to track

progress in the industry as a whole.

The number of companies

participating grew 106% to 111

companies from 17 countries with an

estimated combined turnover of

US$1.65 trillion. The report showed

that the Founders Club – who have

been using the tool for three years –

are outperforming other companies.

Kathmandu Head of Product

Innovation and Product Sustainability

Manu Rastogi says, “The Textile

Exchange benchmarking is a great

tool and has helped us develop

insights and strategies into areas for

improvement. It’s not about being

first or being last on the chart, it’s

more about learning and moving

forward as an industry.”

“It’s about learning

and moving

forward as an

industry.”

MANU RASTOGI

HEAD OF PRODUCT INNOVATION

AND PRODUCT SUSTAINABILITY

34SUSTAINABILITY REPORT 2019OUR PRODUCTSSUSTAINABILITY REPORT 201935

GLOBAL SCOREBOARD

INCLUDED IN THE 100% CLUB

ON THE PREFERRED DOWN LEADERBOARD,

PREFERRED LYOCELL LEADERBOARD AND

PREFERRED MAN-MADE CELLULOSICS

LEADERBOARD

100%

#

2

WORLD RANKING IN THE

TEXTILE EXCHANGE PREFERRED

MATERIALS REPORT

#

7

#

5

by volume on the Preferred

Down Leaderboard

by growth on the Preferred

Down Leaderboard

Kathmandu team member Jacinta wearing an

Earthcolours tee while exploring the farmers

markets in Vietnam. Every Earthcolours

product is dyed with fully traceable, patented

Earthcolours that come from agricultural

waste like nutshells, leaves and vegetables.

Our plastic bottle
recycling journey

10.0

MILLION

2020


TARGET

7. 5

6.7

MILLION

MILLION

9. 3

MILLION

2019


TARGET

2019


ACTUAL

2018

Recycled

materials win.

When it comes to choosing the most

sustainable materials, there are few

easy answers. Cotton is a natural,

renewable material, but its

environmental impacts are almost

three times greater than polypro. The

materials that win the sustainability

game change based on what you’re

measuring and where the material is

being made. Some methods use more

energy, but if it’s renewable energy,

the impact decreases.

There are so many variables that it

could be a full-time job just figuring

out what’s the best product to buy.

Luckily, at Kathmandu, there’s

someone whose job it is to do all this

analysis for you. His name is Manu

Rastogi, and his title is Head of

Product Innovation and Product

Sustainability.

Manu uses tools like the Higg Materials

Sustainability Index, life cycle analysis

and conversations with individual

suppliers to make decisions on which

materials have the least impact.

The ultimate aim is to move towards a

circular economy where products sit

within a closed loop, because we

know that 85% of a product’s impact

comes from its materials.

“Recycling is a key component of that.

If we want to shrink the loop, we’ve got

to keep materials in use for as long as

we can,” Manu says. “Our goal is to

become a recycling champion – not

just recycled polyester but nylon and

cotton and TPU in our rainwear.”

Polyester holds the title as the number

one fibre used worldwide. Only 15% is

produced using recycled materials –

the rest is virgin polyester produced

for consumer demand.

Recycled polyester has been part of

the Kathmandu range since the 1990s.

The REPREVE brand of recycled

polyester is now used in 101 products

in the Kathmandu range. We recycled

9.3 million bottles last year alone.

Manu says that measures of

sustainability change depending on

which lens you look through. If water

use is most important, one material

wins. If carbon emissions is most

important, another material wins.

Life cycle analysis is an attempt to

see a product with all the lenses

stacked together.

“People tend to go towards natural

fibres, but a life cycle analysis shows

polyester is the best of the lot. We do

all that research in the background.”

36SUSTAINABILITY REPORT 2019OUR PRODUCTSSUSTAINABILITY REPORT 201937

Summit Club member Jarod putting his Solus

pack to good use in Cuba. The Solus pack is

made with REPREVE fabric and recycles 13

plastic bottles.

bottles worth of fresh
water saved in 2018*

12.1

MILLION

* based on 500ml bottles.

For the last five years, we’ve been

working to transition our entire

range to sustainable cotton. This

year, we hit 99%, and from

September 2019, all new products

will be made exclusively with

sustainable cotton.

Head of Product Innovation and

Product Sustainability Manu

Rastogi says the biggest

challenges came when converting

the tail end – the blended fabrics

that were only 5% or 10% cotton.

Sometimes, this meant

approaching suppliers who we

didn’t have large volumes with and

asking them to switch to Better

Cotton Initiative (BCI) yarns.

“The first step is asking,” Manu

says. “We found that most of our

suppliers didn’t realise how easy it

was to do. We would give them

the resources to go further down

the chain to the yarn supplier. In

the end, everyone said yes.”

Better Cotton makes up the

largest chunk of our sustainable

cotton portfolio. The BCI exists to

make global cotton production

better for the people who produce

it, better for the environment it

grows in and better for the

sector’s future. They aim to do

that by making Better Cotton a

mainstream commodity.

Last year, more than 1 million

metric tonnes of Better Cotton

went into the world’s supply

chains. Better Cotton was grown

by 2.2 million farmers in 21

countries and made up 19% of

global cotton production.

Manu is excited about growing the

recycled cotton percentage in the

range. When it comes to impact,

recycled cotton beats other

sustainable cotton hands down. It

takes pre-consumer waste from

the factory floor and blends the

fabric back to a yarn, removing all

the heavy impacts from the

growing and dyeing phases of

cotton production.

By using more solution-dyed polyester,

nylon and polypropylene, recycled and

fairtrade cotton, we have been able to

increase our water savings from 11.5

million bottles for 2018 to 12.1 million

bottles for 2019.

100% sustainable

cotton on the horizon.

38SUSTAINABILITY REPORT 2019OUR PRODUCTSSUSTAINABILITY REPORT 201939


Summit Club Member Hayley wearing

the new Kathmandu Logo Tee on

location in Cuba

65

%

BCI

22

%

organic

9

%

fairtrade

3

%

recycled

Sustainable

cotton breakdown

99

%

Our sustainable

cotton journey

100

%

2020


TARGET

99

%

2019

78

%

2018

74

%

2017

59

%

2016

38

%

2015

As we transition away from fossil
fuels, the world will need renewable

materials to replace the synthetics

that make up many outdoor products.

Bio-based materials are essentially

synthetics made from plants. Not only

can they can help reduce our

dependence on fossil fuels, they can

also absorb CO

2

when growing to give

us a climate-neutral alternative.

Of course, it’s never that simple. If

growing plants for synthetic fabrics

takes away from land we need for

food or if it requires fertilisers that

cause the release of nitrous oxide,

then we’re not really winning. But

these problems are slowly being

tackled, and bio-based synthetics is

one of the major areas of innovation

in the textile industry.

Today’s commercial bio-based

synthetics come from renewable

sugars, starches and lipids – think

corn, beets, sugar cane and plant oils.

In the future, there may be an

opportunity to extend this to an even















broader range of renewables,

including algae, fungi and bacteria.

Kathmandu made its foray into bio-

based materials with EarthColors dye,

which is made from the inedible parts

of nuts, fruits and seeds. This year, our

Stockton Jacket used a bio-based

waterproof membrane.

“Bio-based materials will move up our

preferred fibre and material portfolio,”

says Head of Product Innovation and

Product Sustainability Manu Rastogi.

Commercial bio-

based synthetics

come from

renewable sugars,

starches and

lipids – think corn,

beets, sugar cane

and plant oils.

OUR PRODUCTSSUSTAINABILITY REPORT 20194140SUSTAINABILITY REPORT 2019

A growing

resource.

Summit Club member Jen wearing the

highly sustainable Stockton Jacket during

an unexpected sun shower in Tasmania. The

Stockton Jacket features recycled REPREVE

face fabric, recycled polyester insulation

and a recycled inner lining.

0.34
%

2016

0.31

%

2017

0.26

%

2018

0.20

%

2019

Customer return

rates for quality

New quality

programme rewards

excellence.

Quality is at the heart of

Kathmandu’s sustainable approach to

product development, because even

the greenest material choices won’t

stack up if the products don’t have a

long and useful life.

Group Product Operations Manager

Tara Strangwick explains, “There are

lots of facets to quality. One part is

designing for quality. Does the

product do what it’s supposed to do?

Then there is the quality of

development. Does everything tick

the boxes for the user and does it

work? And then there is the quality of

the manufacturing. We’ve spent the

last two years designing a new

programme that addresses that.”

The Supplier Quality Excellence

programme is designed to be an early

detection system that picks up

manufacturing problems before the

product leaves the supplier. The aim is

to reduce the number of

unacceptable products that arrive to

our warehouses and, ultimately, to

reduce the number of customer

returns due to manufacturing

workmanship.

The new Supplier Quality Excellence

programme is an award-based system

for suppliers. The programme includes

a factory quality audit that helps drive

continuous improvement in a factory’s

quality processes. The programme

also includes product inspections and

incorporates customer feedback by

aligning with return rates.

Five core suppliers were onboarded

into the programme this year. These

suppliers represent 43% of our total

spend. The programme is working.

First-time pass rates improved by 38%.

The programme also includes a

Certified Factory Auditor initiative,

designed to make sure factory

inspectors are crystal clear about our

quality standards. Only those that

pass the programme become

Certified Factory Auditors and are

able to inspect product on our behalf.

This year, we certified our first two

groups of auditors at two of our

suppliers’ factories in China.

“We’ve spent the

last two years

designing a new

programme that

addresses quality

of manufacturing.”

TARA STRANGWICK

GROUP PRODUCT

OPERATIONS MANAGER

42SUSTAINABILITY REPORT 201943

DATA BREACH

Between 8 January and 12

February, an unidentified third

party gained unauthorised access

to Kathmandu’s website. During

this process, the third party may

have captured customer personal

information and payment details

entered at checkout for potential

fraudulent use.

As soon as we became aware of

this incident, we took immediate

steps to confirm that our online

store and our wider IT environment

were secure. After this, we worked

closely with leading external IT and

cyber security consultants to fully

investigate the circumstances of

the incident and confirm which

customers were impacted.

Our number one focus was to

clearly identify who had been (and

rule out who had not been)

potentially affected by this

incident and also identify precisely

what information was involved so

we could meaningfully inform our

customers about how they may

have been affected.

Kathmandu proceeded to roll out

a global notification campaign to

directly notify 19,726 potentially

affected customers and 24

regulators/law enforcement

agencies in 93 jurisdictions. It is

not clear the exact amount of

individuals who suffered a loss or

fraud as a result and no

substantiated complaints were

received from customers or

regulators.

As an organisation, we attach a

high value to our customer data,

and we take the protection of our

customers’ data very seriously. We

have worked and will continue to

work with the relevant authorities

and independent security experts.

Kathmandu conducted a post-

incident review of the security

breach, and from this review, we

understand our management

approach to the breach was

adequate. Further changes have

been made to upgrade credit card

payment processing systems to

prevent this happening again.

CARE AND REPAIR

SAFETY

3,546

REPAIRS

Incidents

11

Reported incidents

were a result of

foreign articles

found in clothing and

some equipment

failures. Over half of

the reported

incidents resulted in

no injuries and four

were a result of

non-compliance with

voluntary codes.

OUR PRODUCTSSUSTAINABILITY REPORT 2019

Oboz
sustainability

update.

WHAT ARE THE BIGGEST

SUSTAINABILITY CHALLENGES FOR

OBOZ WHEN IT COMES TO

PRODUCT?

I think overall our biggest

sustainability challenge has been

clarifying our core values as a

company and then using those values

to inform the overall sustainability

strategy. The challenge is that we can

go so many different directions when

it comes to product-related

sustainability, but we really need clear

overarching values that inform where

we should go. We are in the process of

doing that work.


WHAT PROGRESS HAVE YOU MADE

THIS YEAR?

I think the biggest progress we have

made in sustainability in 2019 has been

in setting up verification mechanisms.

The first was getting integrated into

the Kathmandu factory audit system.

That has been a huge step for us, and

it has been great to have the support

of Kathmandu during that process.

The second form of verification is

around restricted substance list testing.

We are working with a third-party

testing firm to help set up that

programme.

The transition to Forest Stewardship

Council (FSC) mixed packaging has

been a big win this year. We will

complete this transition before the

end of 2019.

We have also started to incorporate

more sustainable materials into our

development process. We will be

launching products in 2020 and 2021

that utilise a percentage of recycled

materials as well as bloom algae

foam (replacing 30% of petroleum-

based materials in our insoles). These

changes will not impact all products,

but we are testing them in collections

with the hope of using them more

broadly in the future.

WITH DAWSON WESTENSKOW,

DIRECTOR OF PRODUCT

“We have started

to incorporate

more sustainable

materials into our

development

pro cess.”

DAWSON WESTENSKOW

DIRECTOR OF PRODUCT

44SUSTAINABILITY REPORT 2019OUR PRODUCTSSUSTAINABILITY REPORT 201945

Oboz products will incorporate

more sustainable materials in

the next two years.

Ta matou tapuwae.
Our footprint.

OUR FOOTPRINTSUSTAINABILITY REPORT 20194746SUSTAINABILITY REPORT 2018

Our new flagship store

in Christchurch.

Oboz
According to Trees for the Future,

between 1 August 2018 and 31 July

2019, Oboz funded the planting of

503,810 trees. Total trees planted from

inception to 30 June 2019 – 2,618,511.

Our footprint.

Become carbon neutral. That was one

of the recommendations of global

sustainability experts Brian and Mary

Nattrass when they did an in-depth

review of Kathmandu’s footprint last

year. They also recommended we

keep up the continuous improvements

in reducing waste.

As a result, we’ve developed an

ambitious five-year plan that aspires

to net zero environmental harm from

our business operations.

In practice, this means operating zero

waste to landfill facilities, setting

science-based targets to address

climate change, understanding the

alternatives to plastic polybags with an

intent to remove these from the supply

chain and becoming net zero carbon.


WASTE

Just as we were narrowing in on our

zero waste to landfill target, China

shut the doors to recycling plastics,

which created a chain reaction.

Australia, inundated with its own

waste, stopped accepting soft

plastics from New Zealand.

Last year, we reported 100% of our

polybags in New Zealand were

collected for recycling. Eight of our

New Zealand stores’ soft plastics

were collected by the Love NZ Soft

Plastic Recycling Scheme. When

Australian processors stopped

accepting New Zealand plastics, the

scheme was halted, and the

Packaging Forum, which runs the

scheme, began searching for an

onshore processor.

Two companies have been engaged,

and the scheme has restarted with

limited collection in Auckland. Three

Kathmandu Auckland stores have

joined this trial.

The polybags are sent to Future Post,

who are turning them into long-lasting

fence posts for farms, fruit growers,

vineyards and other rural sectors.

In September, a second onshore trial

started with 2nd Life Plastics, a Levin

company making recycled plastic

matting, fibre optic cable, buckets and

other products. Kathmandu’s Hamilton

store was able to join this trial.

Donna Hellens of the Packaging Forum

says packaging helps preserve products

and extend shelf life. “You need to

have packaging in a lot of areas. The

most important thing is reducing, the

next is to look for ways to reuse and

then the rest we need to recycle.”

The Packaging Forum brings together

more than 200 companies who

belong to voluntary product

stewardship schemes. They invest

more than $1 million annually to

increase recycling and reduce litter.

Kathmandu Brand Manager Olivia

Barclay says Kathmandu will work

with Love NZ Soft Plastic Recycling

to recycle polybags as soon as

possible. “We also want to encourage

people to support companies who

are making recycled products. This is

how we will create a sustainable,

circular economy.”


CONVERTING AND REDUCING

PACKAGING

The packaging department is a place

where small things can add up to

make a big difference. A few years

ago, we consolidated our packaging

suppliers and used the Avery

Dennison Greenprint packaging audit

tool to assess the footprint of our

packaging options across six factors –

fossil material, trees, water, energy,

CO

2

and waste.

Last year, we converted the final

pieces of our packaging to soy-based

inks and Forest Stewardship Council-

certified card.

Now, we are reducing the amount of

packaging we produce. Instead of

printing separate inserts, we are

utilising space on the inside of folded

swing tags to reduce the amount of

paper, ink and cost.

We started with one range of

products and have already reduced

the number of pieces of paper by

131,738 or 13.97%.

We’ll continue this work on other

product ranges, because every little

bit adds up.

Tim Jarvis documentary

submitted to international

film festivals.

Kathmandu global ambassador Tim

Jarvis has been climbing the summits

of 25 equatorial glaciers that will have

zero ice in 25 years. His mission is to

use these expeditions to raise

awareness of climate change around

the globe.

The 25 Zero documentary will premiere

this year and has been submitted to

International film festivals.

48SUSTAINABILITY REPORT 2019OUR FOOTPRINTSUSTAINABILITY REPORT 201949

Net zero environmental
harm from our business

by 2025.

We’ve set a goal to become net zero

carbon by 2025. To get there, we’ll be

following four steps – measure,

manage, verify, mitigate – with the

help of Enviro-Mark Solutions, who

are independent experts in

environmental certification.

We have achieved our second year of

certification in the Certified Emissions

Measurement And Reduction Scheme

(CEMARS®) programme through

Enviro-Mark Solutions. Achieving

CEMARS certification means we are

measuring, managing and reducing

our greenhouse gas emissions to

standards that meet international

best practice.

To achieve CEMARS certification, an

organisation must measure their

organisation’s full greenhouse gas

emissions so they understand their

impact on the global climate. All

operational emissions are measured –

including vehicles, business travel,

fuel and electricity, paper and waste.

Once the footprint has been

measured, the organisation must

develop plans to manage and reduce

their emissions continually. To

maintain CEMARS certification, the

organisation needs to reduce

emissions on a five-year cycle.

Identifying science-based targets and

actual reduction of Scope 2 emissions

are the next summits for us to conquer.

Targets are considered science-based

if they are in line with what the latest

climate science says is necessary to

limit global warming to well below 2°C

above pre-industrial levels and pursue

efforts to limit warming to 1.5°C.

Store waste

breakdown

50

% paper/

cardboard

10

% co-mingled

recycling

30

% polybags and

shrink wrap

10

% non-recycled

material

79

%

2019

72

%

2017

80

%

2018

Company-wide

recycling rate

50SUSTAINABILITY REPORT 2019OUR FOOTPRINTSUSTAINABILITY REPORT 201951

Our overall

recycling rate

98

% paper/

cardboard

27

% co-mingled

recycling

87

% polybags and

shrink wrap

The business has had a fantastic year
of record growth, which includes

the addition of three new stores

in Australia as well as more team

members joining our head offices. It

was also one of the hottest recorded

summers reported

1

and we saw our

electricity usage for our retail stores

increase. Electricity in our stores in the

State of Victoria spiked especially, we

are investigating the cause and what

we can do to reduce their power usage.

As a direct result we estimate our

Scope 2 emissions have grown this

year, impacting our target of a 20%

reduction of Scope 2 emission by 2020.

The increase in our CO

2

e reinforces the

need for our business to set Science

Based Targets, in order for us to

achieve Net Zero Environmental harm

from our business by 2025.

FY19 results are still in the process

of being audited, numbers we have

reported on are our estimate.

Our Scope 2 emissions include all of

our stores and distrubution centres

and office electricity usage. Our main

emissions come from Australia as coal

is the main energy source.

Our reported Scope 3 emissions from

transport is primarily through sea

freight and air freight emissions from

factories to distribution centres.

Our carbon footprint gets

audited and certified.

Our carbon offsetting

regenerates native forest.

From 2016–2018, we started a

programme to offset all of our

business air travel emissions through

the Hinewai Reserve on New

Zealand’s Banks Peninsula. The

Hinewai project focuses on the

regeneration of native vegetation and

habitat for wildlife.

For 2019, we have been broadening

our search for local partners across

Australia, New Zealand and the

United States to further our offsetting

programme.

1. Bureau of Meteorology. (2019, March 1). 2018–19 was Australia's hottest summer on record, with a warm Autumn likely too. Retrieved October, 2019, from

http://www.bom.gov.au/climate/updates/articles/a032.shtml

52

SUSTAINABILITY REPORT 2019OUR FOOTPRINTSUSTAINABILITY REPORT 201953

4,788

2020

20

% REDUCTION

OF 2012 CO2e

7, 2 3 063853

40

40

2017

2017

48.6

TONNES CO2e

2018

38.1

TONNES CO2e

2019*

40.8

TONNES CO2e

OUR CARBON JOURNEY

TOTAL SCOPE 2 EMISSIONS

SCOPE 3 TRANSPORT EMISSIONS

5,582

6,340

*Pre-audited estimate

*Pre-audited estimate*Pre-audited estimate

Numbers have been

updated since 2018’s report

in line with the CEMARS

certified data.

*Pre audited estimate

630

492

2018

2019*

AUSNZUK

6,251

6,862

TONNES CO2e

TONNES CO2e

SCOPE 2 AVERAGE CARBON

EMISSIONS PER STORE

155 TONNES OF STOCK MOVED*1,696 TONNES CO

2

e*5,745 TONNES OF STOCK MOVED*

752 TONNES CO

2

e*

7,9 2 1

TONNES CO2e

Nepalese school children celebrate Sir
Edmund Hillary’s 100th birthday.

Our community.

Ta matou hapori.

OUR COMMUNITYSUSTAINABILITY REPORT 20195554SUSTAINABILITY REPORT 2019

Focusing impact to
change lives.

Our community work is framed by our

new social impact statement: to

empower our community to positively

change 100,000 lives in the next five

years. We’ll do this by inspiring and

equipping people to discover their

potential through education, personal

development and wellbeing.

For our community, that means

working with our partners to provide

30,000 Nepalese people with access

to quality education and giving

10,000 Summit Club members access

to volunteering opportunities and

outdoor adventure.


GIVING BACK TO THE REGION THAT

INSPIRED OUR BRAND

This year, with the help of our

customers, we have raised more than

$260,000 for education programmes

in Nepal.

This money has come from our

growing range of products that give

back and through adventure

fundraising events like the Neverest

and Summit Challenges and the

Summit Club Treks.

EVEREST AND EDUCATION

Sir Edmund Hillary sat at a high-

altitude camp in the Everest region one

night when he asked his friend Sirdar

Urkien what he would most like for his

children and the Sherpa people. Urkien

said a school for his community was

the thing they most needed. A year

later, Sir Ed had fulfilled that wish for

his friend, and 26 more schools

followed along with two hospitals, six

health clinics and a rebuilt monastery.

Sir Ed’s aid work was the great

achievement of his last 50 years of life.

Sir Ed’s legacy continues through the

work of our partners, the Australian

Himalayan Foundation (AHF) and the

Himalayan Trust New Zealand (HTNZ).

Former Prime Minister Helen Clark

travelled to the Everest region this

year to celebrate Sir Ed’s 100th

birthday and to see firsthand some of

the work of the trust he founded.

“All along the trekking route, I’ve met

people who have been educated in

the schools established by Sir Edmund

Hillary and the Himalayan Trust. Many

have gone on to become teachers,

health workers, doctors, community

leaders and to work in trekking and

tourism. Education is always a

catalyst for human development, and

I’ve been reminded of that every day

here in Nepal,” she says.

Though the earthquakes of 2015

damaged many schools, the challenge

today is more about the quality of

education being delivered than the

classrooms they are delivered in.

To support better education for

Nepalese children, both the AHF and

HTNZ provide teacher training and

equipment.

This year alone, AHF provided access

to education for more than 11,000

people, training more than 400

teachers and providing resources and

materials to 96 schools.

And the impact this is having? The AHF

reports, “In eight of our project schools,

the average learning achievement in

the Nepali language in the past year

for grades 1–3 is 71.7% compared to

the district average of 59.24%.”

The HTNZ has been working to improve

the quality of education in the Everest

region, with a focus on improving

literacy learning for children aged 5–8.

The four-year programme involves

teachers and parents and aims to

improve the way literacy skills are

taught in the early years.

In 2019, HTNZ completed the rebuild

of 150 earthquake-strengthened

classrooms at 36 schools across the

Everest region to replace those

destroyed in the 2015 earthquakes,

7,000 students benefited this year

from educational resources and

equipment at 61 schools, 94 teachers

at 22 schools benefited from teacher

training and 1,500 students at seven

high schools now have access to

better libraries and equipment.

Investing in education for Nepalese

people is just one way we can fulfil our

goal to positively impact 100,000 lives.

“Education is

always a catalyst

for human

development.”

HELEN CLARK

FORMER NEW ZEALAND PRIME

MINISTER AND FORMER

ADMINISTRATOR OF THE UNITED

NATIONS DEVELOPMENT

PROGRAMME

56SUSTAINABILITY REPORT 2019OUR COMMUNITYSUSTAINABILITY REPORT 201957

Former New Zealand Prime Minister

Helen Clark in Nepal for Sir Edmund

Hillary’s 100th birthday celebration.

Developing products
to support Nepal.

Artist Sean Duffell owns a very

valuable collection of drawings. They

were given to him by a class of

Nepalese children when he travelled

to Nepal as a contributor to our

Artists Series T-Shirt.

The t-shirt sales contribute to the

work done by the Himalayan Trust

and the Australian Himalayan

Foundation to improve education for

Nepalese children.

“We spent a day teaching drawing to a

class of local Namche kids,” Sean says.

“I was amazed at how good their

English was. The kids were fizzing on

having a class dedicated solely to

drawing.”

The 10-day trek to Everest Base Camp

included several stops at schools

supported by the Himalayan Trust.

Sean describes the trip as “inspiring,

life-changing and motivating – all the

cliché things – but I do think travel has

the power to broaden your horizons,

especially when you’re learning about

different cultures and how they live and

how they are connected with the Earth.”

As an artist, Sean appreciated the

ancient Nepalese culture as reflected

through art. “We live in such a young

country, so when you see artworks

that are thousands of years old, it

really blows your mind.”

Sean is a self-taught artist who grew

up in the South Island. As a teenager,

Sean was always drawing. “Art is a

big part of skateboard culture. But

my father didn’t want me to go to

art school – he thought it was a

waste of time.”

Instead, Sean became a professional

skater, travelling around New Zealand

to demos and competitions. Drawing

remained a hobby. At 27, he decided

that he couldn’t keep skateboarding

forever and did a graphic design




































degree in Christchurch. Sean worked

in a Wellington graphic design studio

while doing street art with friends on

the side. When his wall paintings got

noticed, he started doing more and

more commissioned work. Five and a

half years ago, Sean left his day job

to work full-time as an artist.

When Sean was contacted by

Kathmandu to design an Artists Series

T-Shirt, he was “psyched”.



The brief was to use an animal from

Nepal or New Zealand. Sean put

forward a few options, and the kea

was chosen.

Sean’s Artists Series T-Shirt design

includes New Zealand’s iconic

mountain parrot, the kea, and his

nature-inspired patterns. For each

t-shirt sold, $5 will be donated to the

Himalayan Trust New Zealand and

the Australian Himalayan Foundation.

Nepal through an

artist’s eyes.

KHUSI BEANIE

Employment in Nepal can be a

challenge. Women tend to have lower

rates of education and less chance to

earn an income.

This is why our Khusi Beanie is so

much more than a hat. It’s a chance

for us to connect to the place that

inspired our name – and a way for our

customers to support the

craftspeople of Nepal. Each beanie is

hand-knitted in Nepal and helps to

improve the lives of the knitters, who

value their independence, their

community and the chance to use

their traditional craft.

Sabina uses her income on household

expenses for her family – the rest she

saves for a rainy day.

“I feel independent and proud of myself.”

Before joining the knitting business,

31-year-old Sabina experienced regular

headaches. Now, knitting is both a

livelihood and a support unit.

“I feel a strong connection with the

other knitters. We work like friends,

and this helps us enjoy our work,”

Sabina says. “I used to have frequent

headaches when I used to stay at

home alone. But once I am here, I feel

like I am in a community and knitting

has become like a therapy for me.”

Sapana is 22 years old and one of the

many women employed to knit the

Khusi Beanie. As the only woman in

her family with paid work, it’s given

her a sense of independence.

“Young girls like me want to be

independent,” Sapana says. “Now I

do not have to depend on money

from someone else.”

The Khusi Beanie is in stores this

winter for the third year.


THE BIRD THAT GAVE BACK

We continued our Christmas Giving

programme by making the gift of

education available to more children

in Nepal. Inspired by the national bird

of Nepal, our woollen Himalayan

monal was handmade by artisans of

Nepal. The $10 customer donation for

each bird was passed on to our

Himalayan charity partners to provide

books, literacy materials and teacher

training in Nepal. This Christmas, our

generous customers helped us raise

$57,940 for this cause.

58SUSTAINABILITY REPORT 2019OUR COMMUNITYSUSTAINABILITY REPORT 201959

$33,720

$ 5 7,9 4 0

PRODUCT SALES FOR NEPAL

23,332

TOTAL UNITS SOLD

DONATED FROM SALES

FROM CUSTOMERS

Khusi Beanie

Ar tists Tee

Xmas giving

Artist Sean Duffell

travelled to Nepal as part

of the Artists Series Tee.

Woollen birds hand-knitted in

Nepal raised money for our

Himalayan charity partners

last Christmas.

Getting customers into
the outdoors.

Summit Challenge

profile: Samuel Muir

Twelve-year-old Queenstown boy

Samuel Muir gave up his winter

school holidays to take on the

Himalayan Trust’s Summit

Challenge and raise $1,900 for

education in Nepal.

“I just saw the need, I just want to

help,” he says.

Samuel’s challenge was to climb

the equivalent of Mt Everest –

8,848 metres. He used

Queenstown’s mountains to help

him get there, eventually climbing

more than 9,000 metres.

Samuel has also cycled the Otago

Central Rail Trail to raise money for

children with cancer.

“He loves a good challenge,” says

his mum Victoria.

Kathmandu supported Marc

Nieuwenhuys (Adventure Sponsorship

winner) to tackle the Murray River,

bringing awareness to clinical

depression.

Kathmandu exists to inspire and equip

the adventurer in all of us. Our

Summit Club programme helps make

this real for customers every day by

creating a community of adventurers.

We use Summit Club events to make

it easy for customers to get outdoors.

RUN CLUB

Our Run Club programme continued

to expand this year with more than

6,000 participants across three cities.

The Run Club aims to get customers

outdoors to explore local trails.

These free weekly meet-ups are

professionally coached and focus on

building a range of skills that put trail

running techniques into practice all

over the city.

HIKE CLUB

This year, we started Hike Club – a

series of events that span trail running,

hiking, navigation, wilderness skills

and photography. The aim is to

provide affordable outdoor

adventures for our Summit Club

members to learn new skills in the

outdoors. Eleven events across

Australia and New Zealand saw 150

people participate.

WORKPLACE GIVING

The Higg Index, sustainability self-

assessment tool provided by the

Sustainable Apparel Coalition,

challenges us to involve our staff in our

community partnerships. We are proud

to report that 100% of our Kathmandu

executive team are on board, and the

company matched employee

donations dollar for dollar to raise a

total of $22,000 this past year.

EVERESTING

In our annual Neverest Challenge in

Australia and the Himalayan Trust

New Zealand Summit Challenge,

participants walk or run the

equivalent of the height of Mt Everest

– 8,848 metres – to raise money for the

people of Nepal. The New Zealand

event grew from 69 participants last

year to 330 this year, and the total

raised between the two events for our

Himalayan partners was $145,000.

VOLUNTEERING

Our partnership with Tangaroa Blue

continued to help Summit Club

members connect and make a

difference in their communities. Eight

events saw 540 people work together

to collect more than a tonne of rubbish

and plant more than 3,000 plants.

OUR COMMUNITYSUSTAINABILITY REPORT 20196160SUSTAINABILITY REPORT 2019

150

people

1,604

kg

$10,167

SUMMIT CLUB PARTICIPATION

6,625

km

$145,000

OVER 150 RUNNING SESSIONS

RAISED FOR NEPAL

OVER 11 EVENTS

FROM 49 STORES

FROM CUSTOMERS

Run Club

Neverest and


Summit Challenge

Red Cross

Hike Club

Nepal treks

RUBBISH


COLLECTED

TREES PLANTED

2,500

NATIVES PLANTED

800

PARTICIPANTS (170 IN AUS)

540

616

kg (NZ)

502

kg (AU)

SUMMIT CLUB VOLUNTEERING

EVENTS

7

Adventure Sponsorship
recipients hit the road

to fight malaria.


Our Summit Club Adventure

Sponsorship programme equips our

customers for adventure.

We received 422 applications last year

and gave sponsorships in free or

discounted gear to 47 applicants.

Among them were three Oxford

University scientists who took a

portable DNA sequencing laboratory

from Namibia to Kenya to learn more

about malaria.

With a state-of-the-art lab in the

boot of a car, the Mobile Malaria

Project spent eight weeks driving and

trekking to remote communities to

reach the parts of the continent most

in need. They visited malaria workers

and researchers to document the

approaches and technologies used on

the front line of malaria control.

Camping on the top of the car, the

three researchers are also

collaborating with African scientists

to trial the latest DNA technology in

the field.

This adventure was undertaken during

the rainy season when malaria flares

up. The route took them 6,300

Kilometres across Africa, where 90%

of the world’s cases of malaria occur.

“Although global malaria rates have

halved over the past 20 years,

progress more recently has stalled,”

says expedition leader Dr George

Busby. “By working with colleagues in

Namibia, Zambia, Tanzania and

Kenya, our journey will help us to

understand the challenges facing

malaria researchers in Africa in 2019.”

The Coast to Coast Rangers

programme gives kids who might not

otherwise have the opportunity to

participate in the Kathmandu Coast

to Coast a chance to give it a go.

In its fourth year, the programme is

sponsored by Kathmandu and has

seen 40 kids trained by founder Jess

De Bont.

Jess says the exercise involved in

training helps these kids do better at

school. There’s also great benefits in

getting outside and away from screens.

“Each year, we have different students.

Some years, we might use the

programme to keep students from

joining gangs. Sometimes, it might be

to keep them in school and also for

striving more in school. By getting

them out into nature, we’re building

confidence. They’re gaining self-

esteem and becoming role models in

their schools and in their families.”

Linwood College participant Hengi

joined Coast to Coast Rangers for the

second year. This time, the school’s

head boy decided to do the full race

in tandem with Jess.

Hengi says the experiences outdoors

are remarkable. “Usually, you just see

this kind of stuff on TV or on your

phone, just scrolling, but to actually

do it is something different. It’s not

every day you get to do the Goat Pass

run or see that amazing view.”

Coast to Coast

Rangers give kids a go.

OUR COMMUNITYSUSTAINABILITY REPORT 20196362SUSTAINABILITY REPORT 2019

Coast to Coast Rangers founder

Jess De Bont with Linwood

College participant Hengi.

The Mobile Malaria Project received

support from our Adventure

Sponsorship programme.

Our Team.
Ta matou ranga.

OUR TEAMSUSTAINABILITY REPORT 20196564SUSTAINABILITY REPORT 2019

Christchurch team members sing a

waiata at the opening of our new

flagship store.

Our Tangata
Whenua, Our People.

More employment

opportunities for people

with disabilities.

We want our teams to fully represent

the communities we work in.

The ACEs (Adventure Challenges

Everyone) programme was developed

to make our workplaces more

inclusive for people with disabilities.


ADAPTING OUR WORKPLACES

We are creating more accessible

workplaces so that existing positions

can be more attainable to candidates

with mobility challenges. We have

modified aspects of store design

including point of sale counters

specifically designed for team

members utilising wheelchairs.


ADAPTING OUR POSITIONS

We have created accessible positions

that can be filled by candidates with

differing intellectual abilities and

challenges. We have created a sales

floor assistant position to greet and

assist customers in our stores. We

have adapted positions within our

support offices and are continuing to

explore new opportunities throughout

all our workplaces.

We have partnered with IDEA Services

New Zealand and its employment

support team to develop a successful

ACEs programme.

Ian Whittle of IDEA Services says, “The

Kathmandu programme is an inspiring

move towards total inclusion.”

For the people Ian and his team works

with, getting a job can be life changing.

“Having a paid job gives them a

feeling of importance, value and

worth. And obviously when you’re

generating your own income, that

creates a real feeling of

empowerment. It makes you feel like

you’re not so different.”

In paid work, people gain social skills

and confidence. Another massive

benefit, Ian explains, is forming

natural friendships, which improves

emotional wellbeing. There is no more

natural place to make new friends

than in a work environment.

Ian says we have a long way to go to

shift attitudes about employment for

people with intellectual disabilities, but

he hopes that others will be inspired by

the steps Kathmandu has taken.

“As a successful and strong brand,

Kathmandu can be very influential in

showing their support and

commitment to inclusion. They’ve

taken an important step to represent

all people, and I think it can never be

underestimated how important big

companies like Kathmandu have the

power to move things. It is a big deal

in our sector, and it’s great that

Kathmandu are being thoughtful

about stepping up.”

Kathmandu Group Learning and

Development Manager Kelly Hopkins

says, “Our ACEs have different

challenges, but they have even more

in common with our teams – they

share our values including a love of

travel and adventure and passion for

the environment, and they have all

been hired because of what they can

bring to Kathmandu.”

To be true to our purpose of inspiring

and equipping the adventurer in all of

us, it’s important that we recognise

the wealth of diversity that exists in

our communities, our customers and

our teams. We are backyard

adventurers and world travellers with a

shared passion for the great outdoors.

Sustainability is in our hearts.

We are committed to being a next-

level inclusive employer. We are

passionate about having workplaces

that welcome, celebrate and leverage

our differences.

Diversity and inclusion is more than

just one group or identity. It’s how we

can ensure that our unique cultures,

experiences, beliefs and identities are

woven into the fabric of Kathmandu.

He aha te mea nui o te

ao? He tangata! He

tangata! He tangata!

What is the most

important thing in the

world? It is people, it is

people, it is people.

EM I LY C A N’T WAIT TO GO TO ROME.

23-year-old Emily Coull is one of the

ACEs employed at Papa Kainga

(Christchurch Support Office) two

afternoons a week. Emily helps out at

reception, tidies the kitchen, takes the

mail around and helps our customer

service and HR teams.

“I’m just loving it,” says Emily.

“Everybody is so lovely and nice here,

and I enjoy the jobs I’m doing.”

Her favourite, she says, is helping in

the kitchen. “I like stopping by and

seeing my close friends that I’ve made

here at Kathmandu.”

Emily is putting all her earnings into a

savings account, earmarked for travel.

“I love history and I love travelling. I’m

saving up to go to Europe one day,

and my dream is to go to Rome.”

Christchurch team members at

the start of the Kathmandu

Coast to Coast.

OUR TEAM66SUSTAINABILITY REPORT 2019SUSTAINABILITY REPORT 201967

Rainbow Kampers.
Team members go Coast to Coast.Tyler takes on the

outdoors on two wheels.

We are proud to have established an

employee-led rainbow community

network, Rainbow Kampers.

The Kampers network brings together

team members who identify as

LGBTQIA+ and allies within the

business who want to support them.

Rebecca Edwards, General Manager,

Group Human Resources, is the

executive sponsor of the Rainbow

Kampers network. She says, “It’s

important that we not only celebrate

and embrace diversity but also

recognise that people of diverse

sexualities and gender identities still

face discrimination in society and

workplaces. It’s important that all

team members feel safe and able to

bring their true selves to work.”

Our Rainbow Kampers community

aims to create a culture that

embraces diversity and to build

support mechanisms for team

members. It also exists to influence

the business and drive diversity in

marketing campaigns and business

decisions and engage and inspire

team members, customers and our

wider communities.

We are committed to identifying and

supporting community organisations

aligned with Kathmandu’s values that

work with rainbow youth in our

communities.

We have set a goal of achieving the

Rainbow Tick accreditation in New

Zealand in 2019.

Kathmandu Rainbow Kampers

purpose: Diversity and inclusion are

part of our DNA. Together we will

continue to build an inclusive culture

based on knowledge, acceptance,

mindfulness, pride, equality, respect

and support for our diverse

employees. All team members feel

safe, supported and empowered to

bring their true selves to work.

Celebrating and embracing diversity

fuels our innovation and connects us

to our customers and the

communities we serve

The Kathmandu Coast to Coast race

brings together two big names in

adventure each February for an epic

multisport race across the Southern

Alps of New Zealand.

Competitors start at Kumara beach

on the West Coast and run 2km

inland to their bikes and then ride to

the foothills for a 30km mountain run.

Then it’s a 15km road bike followed by

a 70km kayak down the braided

bends of the mighty Waimakariri River

and a 70km ride to the finish line at

New Brighton beach.

This year, 23 team members

participated in the race and Chris

Harte won the mountain run.

Tyler Belcher loves getting outdoors.

“Any day of the week, I’d rather be out

there doing it than sitting in front of

the TV,” he says.

Tyler was born with spina bifida, a

condition that develops in the womb

and affects the spine.

“Until I was 3 years old, I used a

walking frame to get around and then

I got my first wheelchair. I can walk

short distances with crutches.”

This doesn’t stop Tyler from getting

into the outdoors. “I’ve always been

an outdoor person. I’m really keen

on nature walks and shorter hikes

– or in my case, rolls. I love to head

out on adventures in my 4WD and

can load and unload my wheelchair

from the car.”

Employment has been challenging for

Tyler. “I’m a qualified personal trainer

but I feel like my condition has been

seen as a boundary when I’ve applied

for roles in gyms. I used to live in

Dunedin – it’s an older city where few

of the buildings are wheelchair

accessible. Christchurch is much more

accessible, and that’s only improved

since the earthquake with rebuilding.”

As a Kathmandu customer, Tyler says

he always felt aligned to the brand.

“Every time I’ve gone into a store, the

team have been awesome. You could

see people were happy to be there,

and they were always welcoming.”

“I’d love to work my way up here and

hopefully build a career.”

Tyler has a message for people who

interact with him. “For anyone with a

disability, don’t assume that we can’t

do things. Instead, assume that

people with disabilities can do

anything – unless we tell you we can’t

or we need help with it.”

68SUSTAINABILITY REPORT 2019OUR TEAMSUSTAINABILITY REPORT 201869

Christchurch team member Chris

Harte after winning the Kathmandu

Coast to Coast mountain run.

Tower Junction store team

member Tyler Belcher.

Our retail teams are the face of our
brand to our customers. We continue

to look for ways to develop our teams

and provide them with career

opportunities.

We’ve radically improved our online

retail training tools this year. Working

with Christchurch company RedSeed,

we migrated our Learning

Management System (LMS) to a new

platform that is more interactive. The

new system blends online and real-

world training.

Group Learning and Development

Manager Kelly Hopkins says, “We’ve

improved the way it looks and feels –

even the way we measure it. We also

created our first-ever online customer

service training course to support our

drive for improved customer

experiences across the brand.”

“Kathmandu’s learning platform

connects each learner with a coach

for one-on-one feedback and practice,

which has a significant positive

impact on learning transition over

other systems,” she says “Training

that is relevant and engaging will

encourage team members to use it.”

We’ve also introduced an internal

certification for footwear product

knowledge. Following two days of

intensive training, a practical

assessment and an online exam, 25

team members received their

certification and now sport a badge

showing their level of expert

knowledge in footwear. The Footwear

Guide Certification programme will be

extended across further locations in

2019/20 and beyond.

This year we developed a partnership

with Service IQ, the industry training

organisation for retail organisations in

New Zealand, and we now provide our

New Zealand retail teams with a

development pathway for NZQA

qualifications including the National

Certificate in Retail and the National

Certificate in Business. In the coming

year, we will implement a programme

to provide similar opportunities for our

Australian teams.

New frontiers

in learning.

Ehara taku toa i te toa

takitahi engari he toa

takimano.

My strength is not that of

an individual but that of

the collective.

COMMUNICATION

TRANSFORMED

Like most retailers, we’ve found

communicating with a

dispersed workforce a challenge.

This year, we rolled out

Facebook Workplace to make

team communication easier.

Facebook Workplace looks and

feels just like Facebook – a

platform nearly everyone is

familiar with – except it is a

closed network.

General Manager Retail Stores

and Operations Stephen

Domancie says Facebook

Workplace has transformed

communication and

interaction opportunity and

connected stores to teams at

the support office and

distribution centres in Australia,

New Zealand and beyond.

“Knowledge sharing has

increased dramatically and

communications have become

more streamlined.”

Workplace enables us to share

breaking news, individual or

team achievements and

important announcements with

all team members in real time.

“Every team member can now

access a wide body of

information and discussions

directly from their mobile

device,” Stephen says. “Team

members at all levels are

empowered to join in and drive

conversations that align with

their values and interests. They

now have a voice that can be

heard, which can range from

voting for songs in store music

playlists, providing feedback

on new products to sharing

their adventure experiences.”

Workplace is also a platform

for the executive team to listen

to and engage with team

members, and for team

members from across the

business to share their ideas

and passions.

Kathmandu Kids at work.

KMD Kids at Work initiatives were

launched this year with events held

across Australia and New Zealand.

Kathmandu kids joined parents and

extended whanau (family) in stores

and support offices, creating a great

experience for everyone and an

opportunity to give tamariki (children)

of all ages a chance to see what our

team members do at work, experience

a workplace environment and provide

older tamariki with some valuable work

experience and workplace interaction

skills. For our smaller tamariki, it was

hugely exciting for them to see what

their whanau do at work and be part

of the fun.

General Manager Group Human

Resources Rebecca Edward says,

“Parents are a critical part of our team,

and we want to support them with

flexibility, return to work opportunities

and whanau initiatives.”

To support our parents who faced

teacher strikes in New Zealand this

year, we wanted to ease concern

around childcare options during these

events and provided Kathmandu Kids

Day events with supervised offsite

fun-filled childcare.

70SUSTAINABILITY REPORT 201971OUR TEAMSUSTAINABILITY REPORT 2019

Kathmandu Onehunga store team

members hosting one of our KMD Kids

at Work initiatives.

Team member Michelle Wong has

recently completed Kathmandu

Footwear Guide Certification.

This is our eighth annual
sustainability report. It covers

the period from 1 August 2018

to 31 July 2019. The report is

prepared in accordance with the

core requirements of the Global

Reporting Initiative (GRI)

Standards reporting framework.

It accompanies our Kathmandu

Annual Report 2019, available online

at kathmanduholdings.com, which

includes our full financial results.

Data in this report covers

Kathmandu’s operations, including

our stores, distribution centres and

support offices in New Zealand,

Australia, United States of America

and United Kingdom. If any issues

are material beyond these

boundaries, we have reported on

these issues and our approach to

managing them, but we may not

have complete data available.

Financial figures are expressed in

New Zealand dollars unless

otherwise specified.

We’d love to hear your feedback

on the report. Feel free to send

comments and questions to our

team at sustainability@

kathmandu.co.nz .

About this report

Values in

action.

Brand

truths in

action.

7273SUSTAINABILITY REPORT 2019SUSTAINABILITY REPORT 2019

It’s great to have a list of values to

guide us, but it’s the way our team

puts them into action that makes

them real. Here’s some of the ways

we lived our values this year.


OPENNESS AND DIRECTNESS

We introduced anonymous online

surveys to give workers in our supply

chain a way to communicate honestly

with us about their working

conditions.


ENVIRONMENTAL ACTION

We set a goal to have net zero

environmental harm from our

business operations, which includes

becoming carbon neutral and zero

waste to landfill.


INTEGRITY

We joined the B Corp movement to

use business as a force for good in a

more sustainable and inclusive

economy.


RESOURCEFULNESS

We recycled 9.3 million plastic bottles

by using recycled polyester in 101

products in our range.


LOVE OF TRAVEL AND ADVENTURE

We commissioned a report and

created a content series to look more

deeply at the helpful and harmful

aspects of travel.


PASSION AND DETERMINATION

Determined to be a more inclusive

employer, we created new roles for

people with disabilities.

Our Brand Truths stand for what we

believe in and how we put our brand

into action. Here’s some of the ways

we have lived our brand truth this year.

WE SERVE THE ADVENTURER

We involve Summit Club members

with our Run Clubs, Hike Clubs,

Neverest Challenge and Summit

Challenge and through Kathmandu

Coast to Coast sponsorship.


OUR PRODUCTS MAKE FOR BETTER

ADVENTURES

This year, we launched our most

sustainable jacket ever. The Stockton

is a waterproof, windproof and

breathable companion for any

adventure.


SUSTAINABILITY IS IN OUR DNA

Our new Best for the World

sustainability action plan sets

ambitious five-year goals around

people, planet and practice.


WE EMBRACE DIVERSITY

This year, we introduced the ACE

programme to create new roles for

people with disabilities and launched

the Rainbow Kampers network to

support our LGBTQIA+ team members.


ADVENTURE IS OUR PASSION

Our Adventure Sponsorship

programme helps adventurers in our

Summit Club community live their

dreams to use travel and adventure to

make a difference.

SUSTAINABILITY REPORT 20197574SUSTAINABILITY REPORT 2019APPENDICES
Sustainability Report

2019: Appendix

IND.DESCRIPTION REFERENCE PAG E #NOTES
ORGANISATIONAL PROFILE

102-1Name of the organisation Cover page Cover pageKathmandu Holdings Limited.

102-2Activities, brands, products

and services

Introduction 1Kathmandu is an outdoor travel and adventure

brand. We sell our own branded gear including

other brands through our online, retail and

wholesale network.

102-3Location of headquartersOur World 20–21—

102-4Location of operations Our World 20–21—

102-5Ownership and legal form This appendix This

appendix

Kathmandu is a publicly listed company. For

more information, please see page 14 in our

2019 Annual Report.

102-6Markets served Our World, this

appendix

20–21Kathmandu sells products through our store

network in Australia, New Zealand and the

UK. We also sell online and have begun to sell

through wholesale partners internationally.

102-7Scale of the organisation

Our World, Our Team.

Annual Report 2019

20–21For full financial disclosures, please see pages

33 and 35 in our 2019 Annual Report.

102-8Information on employees

and other workers

Our Team, this

appendix

64–71

Table 7 on

pg 86


102-9Supply chain Our World, Our

Suppliers, Our Products

20–21

22–31

32–45


102-10 Significant changes to the

organisation and its supply

chain

Our World, Our

Suppliers, Our Products

20–21

22–31

32–45


102-11Precautionary principle

approach

Our Suppliers,

Customer health and

safety, Our Footprint

20–21

22–31

32–45

We use a precautionary approach across each

department of the business to ensure we do not

harm the environment or people.

102-12External initiatives Our Journey18–19We collaborate with specialist organisations

to support our sustainability strategy and

outputs. Collaboration is absolutely core to our

development as a business.

102-13Membership of associations Our Journey, Our

suppliers, Our Products,

Our Footprint, Our

Community

18–19Collaboration is fundamental to our

sustainability strategy and programme. Without

our memberships, we would not understand the

complexities of our impacts and outreach to

global initiatives and communities.

STRATEGY

102-14Statements from senior

decision maker

Chairman's and

CEO's report

5—

ETHICS AND INTEGRITY

102-16Values, principles, standards

and norms of behaviour

Our Team 73—

TABLE 1: GRI GENERAL STANDARD DISCLOSURES

IND.DESCRIPTION REFERENCE PAG E #NOTES

GOVERNANCE

102-18Governance and structure

Annual Report 2019Annual

Report 2019

The Board guides the overall governance of our

organisation. Please see pages 14 to 22 in our

2019 Annual Report for more information on

our governance and structure.

STAKEHOLDER ENGAGEMENT

102-40 List of stakeholder groups Our Journey, Our

Stakeholders

18–19

Table 4 on

pg 83


102-41Collective bargaining

agreements

This appendix Table 10 0n

pg 87


102-42Identifying and selecting

stakeholders

Our Journey, Our

Stakeholders

——

102-43Approach to stakeholder

engagement

Our Journey, Our

Stakeholders

18–19

Tables 4 & 5

on pg 83–84


102-44Key topics and concerns

raised

Our Journey, Our

Stakeholders

18–19

Tables 4 & 5

on pg 83–84


REPORTING PRACTICE

102-45Entities included in the

consolidated financial

statements

Annual Report 2019—Kathmandu Holdings Limited, Milford Group

Holdings, Kathmandu Pty Ltd, Kathmandu

Limited and Kathmandu UK Limited.

102-46Defining content and topic

boundaries

Our Journey, Our

Stakeholders, Our

Impacts

18–19

Tables 4 & 5

on pg 83–84


102-47List of material topics Our Journey, Our

Stakeholders, Our

Impacts

18–19

Tables 4 & 5

on pg 83–84


102-48Restatements of information This appendix —No restatement this year.

102-49Changes in reporting This appendix —This is our third year using the new GRI

Standards reporting framework.

102-50Reporting period This appendix —1 August 2018 to 31 July 2019.

102-51Date of most recent report This appendix—Kathmandu Sustainability Report 2019

(01/08/2018 – 31/07/2019).

102-52Reporting cycle This appendix —Annual (01/08/2018 – 31/07/2019).

102-53Contact point for questions

regarding the report

This appendix —Olivia Barclay olivia.barclay@kathmandu.co.nz

102-54Claims of reporting in

accordance with the GRI

standards

Back cover —This report has been prepared in accordance

with the GRI Standards Core option.

102-55GRI content index This appendix—This appendix.

102-56External assurance This appendix—Kathmandu has adopted numerous

certifications, partnerships and programmes

that verify our various sustainability initiatives.

This report has not been externally assured.

76SUSTAINABILITY REPORT 2019SUSTAINABILITY REPORT 201977APPENDICES

TOPICREFERENCE PAG E # NOTES
GRI 407: FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING

GRI 103:

Management

approach

103-1: Explanation of the

material topic and its boundary

Our Journey,

Our Suppliers

18–19

22–31

Table 5

on pg 84

103-2: The management

approach and its components

Management

Approach table

Table 6

on pg 85

407-1: Operations and suppliers in which workers’

rights to exercise freedom of association or

collective bargaining may be violated or at

significant risk

Our Suppliers22 –3180% of our suppliers are in China. Due to the

communist government, individual worker rights

including freedom of association and collective

bargaining are inevitably at risk. Collective

bargaining is almost unheard of, and independent

unions do not typically have any real power to

leverage change in wages or working conditions.

Updating our code of conduct and terms of trade

documents; creating a new CSR strategy that puts

more emphasis on performance and partnership

and less emphasis on policing and compliance;

investing in a new CSR professional services

company specialising in sustainability and supply

chain analytics’ designing and implementing

customised programmes that reflect our unique

supply chain; worker surveys and improved

grievance mechanisms’ supplier training and

education.

GRI 408: CHILD LABOUR

GRI 103:

Management

approach

103-1: Explanation of the

material topic and its boundary

Our Journey,

Our Suppliers

18–19

22–31

Table 5

on pg 84

103-2: The management

approach and its components

Management

Approach table

Table 6

on pg 85

408-1: Operations and suppliers at significant risk

for incidents of child labour.

Our Suppliers22–31Child labour is common in the international apparel

industry, especially in Tier 2 and 3. We created and

implemented a mandatory child labour and forced

labour policy company wide. We also cemented

a partnership with a consultancy specialising in

advising businesses in child rights and improving

the lives of children in supply chains across Asia.

GRI 409: FORCED OR COMPULSORY LABOUR

GRI 103:

Management

approach

103-1: Explanation of the

material topic and its boundary

Our Journey,

Our Suppliers

18–19

22–31

Table 5

on pg 84

103-2: The management

approach and its components

Management

Approach table

Table 6

on pg 85

409-1: Operations and suppliers considered to

have significant risk for incidents of forced

or compulsory labour

Our Suppliers22–31Forced labour is still common in the international

apparel industry. Migrant workers are especially

vulnerable to forced labour. China, Taiwan,

Vietnam and Indonesia are all high risk for

forced labour and these are all areas where we

source our product. Created and implemented a

mandatory child labour and forced labour policy

company wide. Investing in a CSR professional

services company specialising in sustainability

and supply chain analytics with the ability to

access worker voice through social media and

anonymous worker surveys.

TOPICREFERENCE PAG E # NOTES

GRI 412: HUMAN RIGHTS ASSESSMENT

GRI 103:

Management

approach

103-1: Explanation of the

material topic and its boundary

Our Journey,

Our Suppliers

18–19

22–31

Table 5

on pg 84

103-2: The management

approach and its components

Management

Approach table

Table 6

on pg 85

412-1: Operations that have been subject

to human rights reviews or impact

assessments

Our Suppliers22–31Nil.

412-2: Employee training on human rights policies

or procedures

Our Suppliers22–31625 hours of training by 1,622 staff members

(80% of all Kathmandu staff)

412-3: Significant investment agreements and

contracts that include human rights

clauses or that underwent human rights

screening

Our Suppliers22–31Every one of our 101 factories has to enter into

an agreement with Kathmandu, which includes

signing and agreeing to abide by and be assessed

against our code of conduct. A significant

investment includes any and every supplier

because no matter how much we spend with a

supplier, our commitment to our stakeholders

and shareholders is to invest our resources into

our supply chain to ensure that human rights are

protected.

GRI 414: SUPPLIER SOCIAL ASSESSMENT

GRI 103:

Management

Approach

103-1: Explanation of the

material topic and its boundary

Our Journey,

Our Suppliers

18–19

22–31

Table 5

on pg 84

We are unable to quantify total weight or volume

of materials that are used to produce or package

Kathmandu’s primary products.

103-2: The management

approach and its components

Management

Approach table

Table 6

on pg 85

414-1: New suppliers that were screened using

social criteria

Our Suppliers22–31100%

414-2: Negative social impacts in the supply

chain and actions taken

Our Suppliers22–31Excessive overtime, incorrect wages, workplace

bullying and sexual harassment were documented

in our supply chain. Actions taken included

working with ELEVATE and the relevant suppliers

to provide workplace training and improvement

services, provide access to better systems and

processes and identify which supervisors required

assistance and a change in behaviour.

GRI 301: MATERIALS

GRI 103:

Management

Approach

103-1: Explanation of the

material topic and its boundary

Our Journey,

Our Products

18–19

32–41

Table 5

on pg 84

103-2: The management

approach and its components

Management

Approach table

Table 6

on pg 85

No indicator We do not collect recycled materials as a

percentage according to topic indicator

requirements. We collect data and information

in accordance with the Higg Index and Textile

Exchange reports.

TABLE 2: GRI TOPICS

78SUSTAINABILITY REPORT 2019SUSTAINABILITY REPORT 201979APPENDICES

TOPICREFERENCE PAG E # NOTES
GRI 303: WATER

GRI 103:

Management

approach

103-1: Explanation of the

material topic and its boundary

Our Journey,

Our Products

18–19

32–45

Table 5 on pg 84


103-2: The management

approach and its components

Management

Approach table

Table 6 on pg 85—

GRI 416: CUSTOMER HEALTH AND SAFETY

GRI 103:

Management

approach

103-1: Explanation of the

material topic and its boundary

Our Journey,

Our Products

18–19

32–45

Table 5 on pg 84


103-2: The management

approach and its components

Management

Approach table

Table 6 on pg 85—

GRI 416-2: Incidents of non-compliance

concerning the health and safety impacts of

products and services

42Kathmandu takes customer health

and safety seriously. Kathmandu has

implemented practices to safeguard the

wellbeing of its customers while instore

and using their purchased products.

Any health and safety-related

incidents are treated as high priority

and investigated accordingly with the

appropriate corrective action to prevent

reoccurrence.

GRI 418: CUSTOMER PRIVACY

GRI 103:

Management

approach

103-1: Explanation of the

material topic and its boundary

Our Journey,

Our Products

18–19

32–45

Table 5 on pg 84


103-2: The management

approach and its components

Management

Approach table

Table 6 on pg 85—

GRI 418-1: Substantiated complaints concerning

breaches of customer privacy and losses of

customer data

42—

GRI 305: EMISSIONS

GRI 103:

Management

approach

103-1: Explanation of the

material topic and its boundary

Our Journey,

Our Footprint

18–19

46–53


103-2: The management

approach and its components

Management

Approach table

Table 6 on pg 85—

GRI 305-2: Energy indirect (Scope 2) GHG

emissions

46–53We account for our greenhouse gas

emissions in alignment with the

Greenhouse Gas (GHG) Protocol. Our

emissions figures are derived from

Scope 2 purchased electricity usage

across our stores, distribution centres

and support offices. Our emissions

factors are sourced from government

GHG reporting guidance documents

published in each jurisdiction that we

operate in. Our FY17 and FY18 Scope 2

emissions have been audited by Enviro-

Mark Solutions and certified under the

CEMARS programme.

TABLE 2: GRI TOPICS (CONTINUED):

TOPICREFERENCE PAG E # NOTES

GRI 305-3: Other indirect (Scope 3) GHG

emissions

46–53We have aligned our Scope 3 emissions

quantification with the Higg Index. We

used the CEMARS software platform to

calculate Scope 3 emissions using the

certification’s latest emission factors.

Our FY17/18 Scope 3 emissions have

been certified by CEMARS.

GRI 305-4: GHG emissions intensity 46–53—

GRI 306: WASTE

GRI 103:

Management

approach

103-1: Explanation of the

material topic and its boundary

Our Journey,

Our Footprint

18–19

46–53

Table 5 on pg 84


103-2: The management

approach and its components

Management

Approach table

Table 6 on pg 85—

GRI 306-2: Waste by type and disposal method 50–51—

GRI 401: EMPLOYMENT

GRI 103:

Management

approach

103-1: Explanation of the

material topic and its boundary

Our Journey,

Our Team


103-2: The management

approach and its components

Management

Approach table

Table 6 on pg 85—

GRI 401-1: New employee hires and employee

turnover

64–71

Table 8 on pg 87


GRI 401-2: Benefits provided to full-time

employees that are not provided to temporary or

part-time employees.

Table 3 on pg 82—

GRI 401-3: Parental leave 64–71

Table 8 on pg 87

Only non-hazardous waste was

disposed of

GRI 403: OCCUPATIONAL HEALTH AND SAFETY

GRI 103:

Management

approach

103-1: Explanation of the

material topic and its boundary

Our Journey,

Our Team

Table 11 on pg 88—

103-2: The management

approach and its components

Management

Approach table


GRI 403-1: Occupational health and safety

management system

Table 12 on pg 88—

GRI 403-4: Worker representation in formal

joint management-worker health and safety

committees

Table 6 on pg 85—

GRI 403-9: Work-related injuries 64–71

Table 13 on pg 89


GRI 403-10: Work-related ill health 64–71

Table 12 on pg 88


GRI 404: TRAINING AND EDUCATION

GRI 103:

Management

approach

103-1: Explanation of the

material topic and its boundary

Our Journey,

Our Team


103-2: The management

approach and its components

Management

Approach table

Table 6 on pg 84—

80SUSTAINABILITY REPORT 2019SUSTAINABILITY REPORT 201981APPENDICES

STAKEHOLDER GROUPENGAGEMENT MECHANISMFREQUENCY OF
ENGAGEMENT

KEY ISSUES RAISED

Customers— Social media

— Customer insights

— In our stores

— Our website

— Via our customer services team

— Summit Club member

communication

Ongoing— Animal welfare

— Waste management

— Community investment

opportunities and sponsorship

— Human rights in our supply chain

— Product care and repair

— Microfibres

Staff— Performance mechanisms

— Questionnaire and surveys

— Dream Team meetings

— Other engagement committees

Ongoing— Health and safety

— Waste management

— Training

— Sustainability leadership

Suppliers— Meetings

— Site visits

Ongoing— Fair and open procurement

practices

— Fair working conditions

— Environmental impacts

— Product quality and safety

Factories — Meetings

— Site visits

— Audits

Ongoing— Fair working conditions

Local communities— In our stores and offices

— Community events

— Social media

— Website

Ongoing— Our impact on communities

— Social investment and

sponsorship

Government

and regulators

— Meetings

— Reports

— Site visits

Quarterly and as required— Economic performance

— Environmental impacts

— Community impacts

Shareholders— Our annual reports

— Annual general meeting

— ASX and NZX announcements

— Website

— Investor roadshows, briefing

forums

Quarterly and as required— Economic performance

— All sustainability material issues

Industry associations— Meetings

— Reports

— Workshops

Annually — Environmental impacts

— Community impacts

— Human rights in our supply chain

Investment community — ASX announcements

— Website

— Investor briefings and forums

Quarterly and as required— ESG performance

Civil society

and community

organisations

— Social media

— Requests for information

Ongoing— Human rights in our supply chain

— Environmental impacts

— Fair working conditions

— Product materials stewardship

— Supplier management

TABLE 4: OUR STAKEHOLDERS TABLE 2: GRI TOPICS (CONTINUED):

TOPICREFERENCE PAG E # NOTES

GRI 404-2: Programmes for upgrading employee

skills and transition assistance programmes

64–71—

GRI 404-3: Percentage of employees receiving

regular performance and career development

reviews

64–71

Table 6 on pg 85


GRI 405: DIVERSITY AND EQUAL OPPORTUNITY

GRI 103:

Management

approach

103-1: Explanation of the

material topic and its boundary

Our Journey,

Our Team


103-2: The management

approach and its components

Management

Approach table

Table 6 on pg 85—

GRI 405-1: Diversity of governance bodies and

employees

64–71

Table 15 on pg 90


BENEFITS WHICH ARE STANDARD FOR FULL-TIME EMPLOYEES OF THE ORGANIZATION BUT ARE NOT PROVIDED TO TEMPORARY

OR PART-TIME EMPLOYEES

Life insurance

HealthcareYes – Oboz only

Disability and invalidity coverage

Parental leaveYes – Oboz only

Retirement provision

Stock ownershipYes – wider

leadership team

- Oboz only

Others

TABLE 3: EMPLOYMENT

82SUSTAINABILITY REPORT 2019SUSTAINABILITY REPORT 201983APPENDICES

TABLE 6: MANAGEMENT APPROACH
TOPIC POLICIES AND

MANAGEMENT

ACTIVITIES EVALUATION ACCOUNTABLE

DEPARTMENT

Workers’ rights:

freedom of association

and collective

bargaining, child

labour, forced or

compulsory labour,

human rights

assessment, supplier

social assessment

Supplier Code of Conduct We are members of the

Fair Labor Association.

Its 10 principles guide

our Corporate Social

Responsibility team’s

strategy working towards

accreditation in 2018. The

10 principles and strategy

corroborates GRI’s workers’

rights indicators, which we

respond to.

We assess our programme

against the 10 FLA

principles to ensure

our programme is

comprehensive for

accreditation. We recently

evolved our CSR strategy

based on the evaluation

process.

Quality and CSR

Materials, waterAzo Dyes Policy, Down

Feather Policy, Leather

Policy, Uzbek Cotton Policy,

Nano-Silver Technology

Statement of Intent,

Perflourinated Chemicals

Statement of Intent,

Sheep Mulesing Statement

of Intent, Man-Made

Cellulosics Policy, Restricted

Substances List.

Our materials priority

list guides our materials

sustainability strategy.

We participate in the

Textile Exchange report

rankings. We use the Higg

Index as a key driver for

better materials.

Product

Customer health

and safety

We research and complete

all compliance requirements

before entering new

products into the market.

Our quality department

reviews products before

entering the market. Market

compliance research.

We review our research

and completion processes

to achieve continuous

improvement.

Quality

Customer privacy We have a stringent policy

and process to protect

the privacy of our Summit

Club members and online

account customers.

Our relevant customer

services team are briefed

on the details of the policy

to ensure no breaches are

made. Communication is

highly prioritised with the

customer following any

incidents.

Reviews are completed on

any incidents to achieve

continuous improvement.

Customer

Services

WasteWe issued a zero waste to

landfill by 2018 strategy

earlier this year. This strategy

is core to the management

approach.

We engage with all key

stakeholders internally and

externally in managing our

operational waste.

We review our strategy

goals and objectives twice

a year to evaluate how we

are managing waste.

Brand,

Finance, Retail

Operations

Carbon emissions We have a goal to reduce

our Scope 2 emissions by

20% by 2020 from 2012

levels. We have issued

a carbon strategy that

aligns with the CEMARS

certification. We are also

using the Higg Index as a

guideline for understanding

our Scope 3 emissions.

We report annually to the

Carbon Disclosure Project.

We annually offset our

business staff air travel

at a local offsetting and

conservation project in

Canterbury, New Zealand.

Using the Higg Index.

We evaluate main sources

of energy usage across

Scope 2 and 3 areas.

Brand,

Finance, Retail

Operations

Team development:

new employee

hires and turnover,

benefits for full-time

employees, parental

leave, occupational

health and safety,

training and

education, diversity

and equal opportunity

As part of our People Plan

strategy, we integrate these

material topics as part of

our continuous improvement

management approach.

We engage with all key

stakeholders internally and

externally in managing our

strategy.

We conduct interviews and

surveys as a way to inform

our strategy approach.

Human

Resources

MATERIAL TOPIC IN

ORDER OF PRIORITY

WHO IT APPLIES TO WHERE IT APPLIES

AND BOUNDARIES

LIMITATIONS

OUR SUPPLIERS

Freedom of association and

collective bargaining

Kathmandu factories and

suppliers

Our supply chain —

Child Labour Kathmandu factories and

suppliers

Our supply chain —

Forced or compulsory labour Kathmandu factories and

suppliers

Our supply chain —

Supplier social assessmentsKathmandu factories and

suppliers

Our supply chain —

OUR PRODUCTS

Materials Suppliers, KathmanduOur operationsOur overall sustainable

materials percentage use

against conventional materials

is too complex to calculate to

meet topic requirements.

Products and servicesKathmandu , consumersOur operations—

Customer health and safety Kathmandu, consumersOur operations—

Product labelling Kathmandu, consumersOur operations—

WaterSuppliers, KathmanduOur operations—

Marketing Kathmandu, consumersOur operations—

Customer privacy Kathmandu, consumersOur operations—

OUR FOOTPRINT

Economic performance Kathmandu, investorsOur operations—

Energy Kathmandu Our operations and stores—

Emissions KathmanduOur operations and stores—

WasteKathmandu, customersOur operations and stores—

TransportKathmandu, supply chain Our operationsWe currently only have the

information to report on sea

freight and air freight port to

port Scope 3 emissions.

OUR TEAM

Employment Kathmandu Our operations —

Occupational health and safety KathmanduOur operations —

Training Kathmandu Our operations —

Diversity and equal opportunity Kathmandu Our operations —

Compliance Kathmandu, consumers Our operations —

TABLE 5: WHERE DO OUR IMPACTS OCCUR?

84SUSTAINABILITY REPORT 2019SUSTAINABILITY REPORT 201985APPENDICES

AUSNZUKUSA
NEW HIRES

PermanentTotal 302153117

IndefiniteTotal 32013320

BY GENDER

PermanentMale1096365

PermanentFemale1939052

IndefiniteMale1456420

IndefiniteFemale1756900

BY AGE GROUP

Permanent <3022111491

Permanent30–50703526

Permanent50+11400

Indefinite <3027611000

Indefinite30–50401710

Indefinite50+4610

TABLE 8: HIRING AND TURNOVER (INCLUDES OBOZ)

MALEFEMALE

1Report the number of employees by gender that were entitled to parental leave.611874

2Report the number of employees by gender that took parental leave.151

3Report the number of employees who returned to work after parental leave

ended, by gender.

126

4Report the number of employees who returned to work after parental leave

ended who were still employed 12 months after their return to work, by gender.

329

5Report the return to work rate of employees who returned to work after leave

ended, by gender.

100%51%

6Report the retention rate of employees who returned to work after leave ended,

by gender.

60%60%

TABLE 9: PARENTAL LEAVE (INCLUDES OBOZ)

AUSNZUKUSA

TURNOVER

PermanentTotal 29118594

IndefiniteTotal 29210740

BY GENDER

PermanentMale1206574

PermanentFemale17112020

IndefiniteMale1314620

IndefiniteFemale1616120

BY AGE GROUP

Permanent <3020611660

Permanent30–50726622

Permanent50+13312

Indefinite <302288840

Indefinite30–50581600

Indefinite50+6300

COLLECTIVE BARGAINING AGREEMENTS

Percentage of total employees covered by collective bargaining agreements.0

TABLE 10: COLLECTIVE BARGAINING AGREEMENTS (INCLUDES OBOZ)

AUSTRALIANEW ZEALAND UKUSATOTAL

BY EMPLOYMENT TYPE

Full-time employees384317524730

Part-time employees60228340889

Casual3419100432

Total employees1,3276919242,051

BY CONTRACT TYPE

Permanent9115219241,465

Fixed-term full-time33300063

Fixed-term part-time42490091

Casual3419100432

Total workforce1,3276919242,051

BY GENDER

Male56725867838

Female7604333171,213

BY AGE GROUP

<30831358331,195

30–50409271517702

50+876214154

BY CATEGORY

Executive370111

Senior management19310656

Management32216944499

Non-management9834845131,485

TABLE 7: INFORMATION ON EMPLOYEES AND OTHER WORKERS (INCLUDES OBOZ)

86SUSTAINABILITY REPORT 2019SUSTAINABILITY REPORT 201987APPENDICES

ALL EMPLOYEES
Number of fatalities as a result of work-related ill health0

Number of cases of recordable work-related ill health4

Main types of work-related ill healthStress, repetative strain injury

(RSI)

ALL WORKERS WHO ARE NOT EMPLOYEES BUT WHOSE WORK AND/OR WORKPLACE

IS CONTROLLED BY THE ORGANISATION

Number of fatalities as a result of work-related ill health0

Number of cases of recordable work-related ill health0

Main types of work-related ill healthNA

WORK-RELATED HAZARDS THAT POSE A RISK OF ILL HEALTH

How these hazards have been determinedNA

WORK-RELATED HAZARDS THAT POSE A RISK OF HIGH-CONSEQUENCE INJURY

How these hazards have been determined• Incident and near miss

reporting

• Regular safety inspections

• Regular safety committee

meetings

• Risk assessments

Which hazards have caused or contributed to cases of ill health during

the reporting period

Multiple

Actions taken or under way to eliminate these hazards and minimise risks using

the hierarchy of controls

Multiple

TABLE 12: WORK-RELATED ILL HEALTH (INCLUDES OBOZ)

TABLE 12: WORK RELATED ILL HEALTH (INCLUDES OBOZ) CONTINUED

FOR ALL EMPLOYEES

Number and rate of fatalities as a result of work-related injury0

Number and rate of high-consequence work-related injuries (excluding fatalities)0

Number and rate of recordable work-related injuries138

Main types of work-related injurySprains and strains, bruising,

cuts

ALL WORKERS WHO ARE NOT EMPLOYEES BUT WHOSE WORK AND/OR WORKPLACE

IS CONTROLLED BY THE ORGANISATION

Number and rate of fatalities as a result of work-related injury;0

Number and rate of high-consequence work-related injuries (excluding fatalities);0

Number and rate of recordable work-related injuries;1

Main types of work-related injuryBruising – leg

Number of hours workedUnable to calculate hours for

contractors

WORK-RELATED HAZARDS THAT POSE A RISK OF HIGH-CONSEQUENCE INJURY

How these hazards have been determinedNear miss incidents

Which hazards have caused or contributed to high-consequence injuries

during the reporting period

0

Actions taken or under way to eliminate these hazards and minimise risks using

the hierarchy of controls

Engineering controls,

administrative controls,

substitution

ANY ACTIONS TAKEN OR UNDER WAY TO ELIMINATE OTHER WORK-RELATED HAZARDS

AND MINIMISE RISKS USING THE HIERARCHY OF CONTROLS

Whether the rates have been calculated based on 200,000 or 1,000,000 hours workedNA – no rates calculated

Whether and, if so, why any workers have been excluded from this disclosure, including the

types of worker excluded

NA

Any contextual information necessary to understand how the data has been compiled, such

as any standards, methodologies, and assumptions used.

NA

TABLE 13: WORK-RELATED INJURIES (INCLUDES OBOZ)

OCCUPATIONAL HEALTH AND SAFETY MANAGEMENT SYSTEM

A statement of whether an occupational health and

safety management system has been implemented,

including whether: i. the system has been implemented

because of legal requirements and, if so, a list of the re-

quirements; ii. the system has been implemented based on

recognised risk management and/or management system

standards/guidelines and, if so, a list of the standards/

guidelines

Occupational health and safety management system has been

implemented because of legal requirements in the countries we

operate in.

o Model Work Health and Safety (WHS) Act

o Model WHS Regulations

o Model Codes of Practice

o Occupational Health and Safety Act 2004 (Vic)

o Occupational Health and Safety Regulations 2017 (Vic)

o Health and Safety at Work Act (HSWA) 2015

o Occupational Safety and Health Act (United States)

A description of the scope of workers, activities and

workplaces covered by the occupational health and safety

management system and an explanation of whether and,

if so, why any workers, activities or workplaces are not

covered.

Scope of workers – support offices, distribution centres, stores, casual,

part-time, full-time, fixed-term.

Activities include administration, logistics, customer service, sales,

Stock management, manual handling, staff management, product

management.

TABLE 11: OCCUPATIONAL HEALTH AND SAFETY (INCLUDES OBOZ)

WHETHER AND, IF SO, WHY ANY WORKERS HAVE BEEN EXCLUDED FROM THIS DISCLOSURE,

INCLUDING THE TYPES OF WORKER EXCLUDED

Workers that have been excluded from this disclosure0

ANY CONTEXTUAL INFORMATION NECESSARY TO UNDERSTAND HOW THE DATA HAS BEEN

COMPILED, SUCH AS ANY STANDARDS, METHODOLOGIES AND ASSUMPTIONS USED

88SUSTAINABILITY REPORT 2019SUSTAINABILITY REPORT 201989APPENDICES

EXECUTIVESENIOR
MANAGEMENT

MANAGEMENTNON-

MANAGEMENT

TOTAL

Number of employees receiving

performance reviews/ appraisals

11564991,0531,619

Male938179409627

Female218320631968

Total number of employees11564991,4852,051

Percentage of employees receiving

performance reviews/ appraisals

100%100%100%70.91%78.94%

GENDER DIVERSITY

BOARD

201851

201951

EXECUTIVE

201881

201992

SENIOR MANAGEMENT

20183319

MANAGEMENT

2018187282

NON-MANAGEMENT

2018574873

20193818

2019179320

2019622863

MALEFEMALE

AGE DIVERSITY

EXECUTIVE

201881

SENIOR MANAGEMENT

20181447

MANAGEMENT

201817225740

NON-MANAGEMENT

201897338391

20194511

201983

201918327244

2019101237895

<3030–5050+

TABLE 14: PERCENTAGE OF TOTAL EMPLOYEES BY GENDER AND BY EMPLOYEE CATEGORY WHO RECEIVED

A REGULAR PERFORMANCE AND CAREER DEVELOPMENT REVIEW DURING THE REPORTING PERIOD (INCLUDES

OBOZ)

TABLE 15: DIVERSITY (INCLUDES OBOZ)

90SUSTAINABILITY REPORT 2019

92SUSTAINABILITY REPORT 2019
kathmanduholdings.com

Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.