Kathmandu Sustainability Report 2019
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.