OUR RESPONSIBILITY

AMANN SUSTAINABILITY REPORT

 "A family business like AMANN stands for responsibility towards employees,
customers, suppliers and society. It results from our values, which we have stood
for since 1854.

Trust and reliability, cohesion and foresight, entrepreneurial spirit and innovative
strength. When it comes to the future, it is associated with a clear mission."
Katja Pielenz
Ivo Herzog Katja Pielenz
OUR MISSION

"The expanded international perspective of our company regarding sustainability should have clear effects
for how we deal with our customers, our employees, our suppliers and our environment and stay ahead of
the applicable law at all times.

For the company, this results in an expanded responsibility for the future, from development to production
and sales, which finds its expression in a changing work culture in sustainable interaction between nature,
people and profitability."

Katja Pielenz
Director of the Hanns A. Pielenz Foundation and shareholder of Amann & Söhne GmbH & Co. KG
February 2023

1
CONTENT

03 MESSAGE FROM THE BOARD 18 – 25 PEOPLE & COMMUNITY

04 – 05 5 QUESTIONS FOR IVO HERZOG 26 – 33 CLIMATE & ENVIRONMENT

06 – 09 AMANN GROUP 34 – 43 PRODUCT & ECONOMICS

10 – 17 SUSTAINABILITY 44 – 45 APPENDIX

2
MESSAGE
FROM THE BOARD
Dear readers,

Sustainability is a central component of our strategic corporate direction. The AMANN Group sets standards when it comes to acting
ecologically, socially and fairly while at the same time meeting high quality standards for ourselves and our products.

Corporate management that is geared towards the future must recognise changes in the market environment at an early stage and
take measures to meet these changes. In this sense, we see sustainability as an opportunity to do the right thing to secure the future of
our company, but also to make a contribution to the future of our planet.

We are convinced that people are the most important lever for a sustainable transformation. Together with our stakeholders, we
want to consistently act sustainably. We offer our customers a comprehensive service and are available as a competent contact
partner offering everything from professional advice to the reliable delivery of products. In doing so, we minimise the environmental
impact. We respond transparently to all customer enquiries. Likewise, we also bear responsibility for our upstream value chain on an
economic, ecological and social level.

We look to the future with confidence and will constantly review our processes. In this way, we continuously improve the sustainable
and resource-saving efficiency of our operational activities with a clear goal in mind. This is the only way we can live up to our high
standards and combine ecological impact with our economic activities.

On behalf of all employees of the AMANN Group, we would like to thank you for your interest in our Sustainability Report 2022.

Wolfgang Findeis Ivo Herzog Peter Morgalla Arved Westerkamp

Wolfgang Findeis Ivo Herzog Peter Morgalla Arved Westerkamp
CFO CSIO COO CSO

3
5 QUESTIONS What tools do you have for the new task?
FOR IVO HERZOG I am storm-proof and steady, bring innovation expe-
rience with me and, as a family member, I know the
THINKING FOR AMANN Group very well. For me, entrepreneurship
Ivo Herzog has been a member of the Board of GENERATIONS means preserving and creating values that will ben-
Trustees of the Hanns A. Pielenz Foundation since efit future generations. And so that you don't get the
2005. The charitable foundation is the sole share- wrong impression of me: I am not a climate activist.
holder of the AMANN Group alongside the Pielenz As a child, I was allowed to live in freedom and
family. Since 2013, Herzog has also been a member Mr Herzog, you have been with the grew up close to nature. My thoughts and actions
of the Advisory Board of the AMANN Group and AMANN Group for a long time. Why the are shaped by social, environmental and long-term
moved from the Advisory Board to the company change to operational business? issues. For me, it is a matter of the heart to make
management in 2022. He took over the newly creat- In connection with our special responsibility for the AMANN sustainable and thus fit for the future.
ed "Sustainability & Innovation" division as Manag- company, Katja Pielenz and I have been concerned
ing Director. with the sustainable development of the AMANN
Group for many years. Climate change is forcing us
to rethink. Many things that were taken for granted
for many years are being called into question. We
have to act. And not tomorrow, but now. Consider- ACT AS AN
ing this background, we have decided to address ENTREPRENEUR
the topic of sustainability & innovation with a sep-
VALUE & CREATE arate division in the management of the AMANN
VALUES Group. This will enable us to implement the neces-
sary change with even greater clout. I am delighted To what extent does the AMANN Group
to have taken on the new task in this business area. have to change in your opinion?
As an internationally active company, we must
pragmatically and consistently adapt to new con­
"It would be unthinkable today for a company to survive that pollutes waters as it did in
ditions, markets and global changes. We want to
the 1970s and 80s. Today, water protection is standard. It is equally inconceivable that
be pioneers for the development of sustainable
in ten to 15 years a company can still exist that emits as much CO2 as it does today. In
business processes. What we create today will affect
this area, too, there will be a new standard that will become a matter of course. We all
future generations. We need to be aware of this in
therefore need change quickly."
everything we do. We only have one planet and we
Ivo Herzog, Managing Director Sustainability & Innovation of the AMANN Group

4
 will continue to shape our corporate destiny in the
future. Many employees have been with us for a
long time and our charitable foundation, as one of
TAKE the AMANN shareholders, also provides us with a STRENGTHEN
RESPONSIBILITY consistent orientation towards the common good. EMPLOYEES
We have internalised this set of values. This is how
we have always emerged stronger from challenging
times.
have to protect it or, at the very least, not burden and our technologies. Biopolymers, for example, are
it. Economic performance, the protection of natural How do you intend to drive sustainability a topic for us. Overall, raw material management is
resources, and social responsibility go hand in hand. in the AMANN Group? of great importance to us in this context. This is also
Ecological efficiency is of particular importance to Fortunately, there are already many measures that the reason for the consistent linking of "Sustainability
us. Ambitious, self-explanatory solutions are required we can build on. AMANN is not starting from & Innovation".
so that we operate environmentally soundly and not scratch. Sustainability issues have already been con-
just act in an environmentally neutral way. We must sistently implemented in recent years. An important We will set clear, ambitious corporate goals. What
show that it is possible to act ecologically, socially, milestone is the new plant in India, which will pro- we are counting on above all are our 2,600 employ-
and at the same time economically viably – if possi- duce almost climate-neutrally thanks to state-of-the- ees. These are a lot of smart people who work every
ble in large steps, but sometimes also by means of art technologies1. Now the next steps will follow. The day to make the company a little bit better! We want
"salami tactics". CO2 balance for the entire group has been kickstart- to use this potential even more consciously in the
ed. It will be the basis for further effective measures future. This is how we bundle worldwide knowledge.
The necessary change calls for a rethink. But this for climate protection. We will systematically pro- I know that many of them want to work on the future
has been part of our company's DNA since 1854. mote the sustainability of our products, our locations of the company!
Without the willingness to change, the generations
before us would not have been able to handle their 1 Planned start of operation autumn 2023

challenges successfully. And that is how we will now

proceed: not dogmatically, but consistently.

That means something has to change in

order to keep it the way it is? SHAPE
CHANGE
Yes, exactly. We are committed to change so that
sustainable growth, innovation, and social benefits

5
 CONTINUITY SINCE 1854
THE BASIS FOR SUSTAINABILITY

"For the purpose of manufacturing twisted and dyed AMANN produces high-quality sewing threads and
silks", Alois Amann and Imanuel Böhringer founded embroidery threads for Apparel, Shoes & Acces-
the company Amann & Böhringer in 1854. Even sories, Home Interior, Automotive, Techtex as well
then, the company was a pioneer in Europe. The as for consumers in its own production facilities in
professional processing of silk yarns was considered Europe and Asia.
an elaborate art that hardly anyone had dared to try
before. The non-profit Hanns A. Pielenz Foundation is the
shareholder of the AMANN Group alongside the
Today, the AMANN Group is one of the world mar- Pielenz family and supports projects in the fields of
ket leaders of sewing and embroidery threads. From arts and culture, science and research, as well as
universal sewing threads to highly technical special education. AMANN is committed to sustainable,
yarns, we offer a wide range of products for nume- fair and safe production processes worldwide.
rous different applications.

6
AMANN GROUP TIMELINE

1854 1902 1994 1996 2006 2008 2009 2013 2019 2022
Foundation Construction of Takeover of Commissioning New produc- Acquisition of New produc- New produc- New produc- Start of
the AMANN sewing and em- of the central tion plant in Oxley Threads tion plant in tion plant in tion plant in construction
headquarters broidery thread industrial Romania production China Bangladesh Vietnam AMANN
manufacturer warehouse and facility in UK India
Ackermann logistics center
with its new IZL in Germany
dyehouse

Takeover of
production plant
in Czech Repub-
lic (Sponit a.s.)

1860 1880 1900 1920 1940 1960 1980 2000 2020

1850 1870 1890 1910 1930 1950 1970 1990 2010

1955 1968 2004 2014 2015 2019 2020 2021

Market launch of Launch of Launch of the Launch of Eco-friendly, Commitment to the Launch of the C2C Launch of the
Serafil Saba highly elastic Sabasoft PFC-free UN Global Compact Certified® Gold stone thread
sewing thread WRe-finish and publication of and GRS-certified Basalt-tech
Sabaflex the first sustainability product range:
report Recycled and
Lifecycle

7
INTERNATIONAL PRESENCE OF THE AMANN GROUP

The AMANN Group

employs approx. 2,600
people of 35 different
nationalities in
20 countries worldwide.
LEGEND: PRODUCTION SITES
At all our locations, we rely ƒ Germany (Augsburg) ƒ China (Yancheng)
Production site
on sustainable, fair and safe ƒ Great Britain (Manchester) ƒ Bangladesh (Dhaka)
Subsidiary
production processes and ƒ Romania (Brasov) ƒ Vietnam (Đà Nang)
working conditions. ƒ Czech Republic (Chribska) ƒ India (Ranipet / Tamil Nadu,
commissioning Q4/2023)

8
AMANN GROUP 2022 AT A GLANCE

PRODUCTION
SITES
in 8 countries

GROUP TURNOVER EMPLOYEES SUBSIDIARIES

approx. 240 million euros approx. 2,600 worldwide in 19 countries
PRODUCED
QUANTITY
approx. 10,500 tons

QUALITY AND ENVIRON-

MENTAL MANAGEMENT PRODUCT CERTIFICATIONS
DIN EN ISO 9001 STANDARD 100 by OEKO-TEX®
IATF 16949 GRS – Global Recycled Standard
DIN EN ISO 14001* Cradle to Cradle Certified® Gold

*For a detailed list, see page 45

9
 SUSTAINABILITY

10
For AMANN, sustainability is a
vision for the future, a roadmap
and an orientation framework
for responsible action.

11
SUSTAINABILITY
MILESTONES AT AMANN

2000 2019 2020 2022

ISO 14001 Envi- Joining Participation in the
ronmental man- UN Global UN Climate Leaders campaign
agement Compact

Expansion of the Management

Board to include the area of
"Sustainability & Innovation"
2000 2020

2010

2009 2020 2022

First Recycled product range First Cradle to Cradle Certified ®
The Circle is Blue®
Lifecycle product range our overarching claim

12
SUSTAINABLE DEVELOPMENT GOALS
COMPASS OF SUSTAINABLE DEVELOPMENT

For the sustainable development of the AMANN Agenda 2030 of the United Nations; the action plan UN GLOBAL COMPACT
Group worldwide, we align our actions with for a liveable future worldwide AMANN already joined the UN Global Compact,
internationally applicable sustainability goals and the world's largest and most important initiative for
principles: For AMANN, the SDGs are the international com- responsible corporate governance, in 2019. The
pass that guides our actions. They are an important UN Global Compact Network Germany (UN GCD)
SUSTAINABLE DEVELOPMENT basis for the strategic consideration and further with 1,050 participants from business, civil society
GOALS (SDGS) development of our specific sustainability goals. and politics supports companies in strategically
The SDGs of the United Nations set the framework AMANN has a very diverse impact on the UN's 17 anchoring sustainability on the basis of 10 universal
for our corporate governance. The 17 goals with SDGs. In particular, the focus is on 9 goals to which principles and contributing to the implementation of
169 corresponding sub-goals are the core of the we as a company can make a relevant contribution. the Sustainable Development Goals.

13
OUR SUSTAINABILITY STRATEGY
ECONOMIC. ECOLOGICAL. SOCIAL.

Sustainability is not just one of many to-do items for „ We are committed to combining economic suc- With environmentally friendly products and efficient
AMANN. Sustainability defines our roadmap and cess with ecological and social responsibility. production processes, we want to achieve our am-
sets the orientation framework for our entrepreneur- „ We address the environmental and social impacts bitious sustainability goals in the areas of "Climate
ial actions. We harmonise economy, ecology, and of our business activities. & Environment" and "Product & Economics".
social responsibility. „ We anchor sustainability holistically in our prod-
ucts and processes. In the field of action "People & Community",
Our overarching claim THE CIRCLE IS BLUE express- we are committed to safe working conditions,
es our understanding of a sustainable future. This fair framework conditions and appreciative,
is how we communicate in a clear message – both respectful cooperation.
internally and externally – our central promise of
sustainability:

14
 PEOPLE & WE TOGETHER FOR
COMMUNITY A SUSTAINABLE FUTURE
Sustainability is a joint task that requires
consistency and perseverance. Only
together with all 2,600 employees world-
wide can we meet this challenge and
make an effective contribution to a more
environmentally friendly, more socially
responsible and better managed economy.
CLIMATE & PRODUCT & Our products and solutions are aligned
ENVIRONMENT ECONOMICS
with this. In doing so we also support our
partners along the value chain and our
customers in their transformation.

15
OUR SUSTAINABILITY GOALS 2025

PEOPLE & COMMUNITY CLIMATE & ENVIRONMENT

EMPLOYEE DEVELOPMENT ACCIDENTS WASTE CO2 EMISSIONS

Further development of the "AMANN Vision: "zero accidents" No waste disposal to landfills. Reduction of CO2 emissions by
Learning Hub" as an internal training 30% per kg produced and switch
Status 2022: Continued Status 2022: Already over 87%
and further education programme. to renewable energy sources.
positive development of the of waste is recycled / thermally
By 2024, regional training coordinators accident rate. The measures recovered, only 13% is disposed Status 2022: Reduction of 33%
and technical trainers will be trained taken in 2021 are effective. of in landfills. compared to the previous year,
at all AMANN production sites among other things through the
worldwide. The foundation for this use of green electricity in Augs-
further development was laid in 2022. burg and Great Britain. Transport
optimisation in the Czech Repub-
lic (saving of 80,000 km driven).
The overall 2025 target was
thus already exceeded by 8% in
GENDER EQUALITY
2022.

The aim is to achieve a balanced gender quota, especially in the repre-

sentation of women and men in management functions.

Status 2022: 45% of all employees are women.

16
 CLIMATE & ENVIRONMENT PRODUCT & ECONOMICS

ENERGY / ELECTRICITY WATER CONSUMPTION SUSTAINABLE SUPPLIER

CONSUMPTION PRODUCTS RESPONSIBILITY

Reduction of electricity consump- Reduction of water consumption Expansion of sustainable product Implementation of the rules set out
tion per kg produced by 25%. by 25% per kg produced. lines with increasing use of circu- in the Supplier Code of Conduct
lar raw materials. and implementation of corre-
Status 2022: Slightly negative de- Status 2022: Significant reduction
sponding supplier audits on site.
velopment. For resilience reasons, in water consumption per kilo Status 2022: Initiation of a sus-
the in-house production depth produced due to the improvement tainable raw materials strategy. Status 2022: All strategic key
was increased, which led to a in the wastewater treatment plant suppliers have signed the code
slight increase in specific electrici- with reverse osmosis in Romania. or were able to provide evidence
ty consumption. Progress at the other sites through of a comparable code. With the
treatment of wastewater and its end of the pandemic situation,
The higher-quality wastewater
return to the process cycle. Further supplier audits were resumed.
treatment in the Romanian plant
12% reduction in the previous On-site compliance audits at two
leads to a lower freshwater re-
year's result. The 2025 target was key suppliers' factories in India in
quirement, but unfortunately also
thus already exceeded by 40% in Nov. 2022.
to higher electricity consumption.
2022.

17
 PEOPLE &
COMMUNITY

18
Social sustainability worldwide –
fair, safe, appreciative.

19
OUR RESPONSIBILITY

TEXTILE STANDARD
INDUSTRY CONTEXT AT AMANN
Relevant social risks in the global textile indus- ƒ Respect for ILO conventions
try are, for example, the violation of the right (International Labour Organization)
to freedom of association, the right to freedom
from discrimination and the freedom from child ƒ AMANN Code of Conduct
and forced labour. The rights to health and safe-
ty at work, legally compliant working hours and ƒ High standard of occupational
living wages are also continuously violated. health and safety worldwide
Source: “Nachhaltigkeit ist nicht umsonst. Preisgestaltung nachhaltiger Textilien
in der Beschaffung durch Großverbraucher.“ Hrsg: Deutsche Gesellschaft für
Internationale Zusammenarbeit (GIZ) GmbH. Bonn 2021.
ƒ European standards in our
production facilities worldwide

20
EMPLOYMENT AND
SOCIAL ENGAGEMENT

Worldwide, more than 2,600 employees in 20

countries with 35 different nationalities ensure our
mutual success every day

Regardless of age, gender, colour and race, religious belief and

sexual orientation, we encourage and challenge our employees
with the aim of developing our organisation over the long term.
We take into account and accept local cultures and values and
continuously work on improvements beyond the usual standards.
We ensure compliance with ILO (International Labour Organiza-
tion) conventions at all locations worldwide.

The basis for our cooperation is the "AMANN Code of Conduct".

It describes our ethical expectations and defines the position of
the AMANN Group worldwide. In times of fundamental change,
managers bear a special responsibility for their team. They have
to actively shape change and deal with risks and uncertainties in
equal measure. A differentiated, worldwide training programme
and the active exemplification of our values by our managers
create a reliable environment for good, sustainable cooperation for
our employees and partners.

Understanding change as an opportunity.

People and community are at the centre.

21
HUMAN RESOURCES DEVELOPMENT EMPLOYEE SURVEY 2022

familiarisation programmes as well as the "AMANN Employee loyalty, identification and satisfaction are
By 2024, we will develop regional Education Programme" form the basis of professional key objectives of our social sustainability strategy.
training coordinators and technical personnel development. Time off from work for per- We therefore regularly conduct global employee
trainers at all AMANN production sonal further education is supported both temporally surveys to make these parameters measurable and to
sites worldwide. and financially wherever operationally possible. Our identify potential for improvement. In July 2022, we
established digital learning platform, the "AMANN again surveyed employees via the external service
The competence model developed on the basis Learning Hub", is available to many employees provider Korn Ferry. With 51 questions in 16 lan-
of our corporate strategy forms the foundation for worldwide. The platform offers videos, presentations guages, we sought feedback on the topics of respect
our diverse personnel and organisational develop- and online training for professional and personal de- & recognition, trust in leaders, development opportu-
ment measures. These include, in particular, ca- velopment. Our leadership principles and our group- nities, performance management, available resourc-
reer and personal development plans as essential wide leadership development programme ensure es and collaboration. With a high participation rate
building blocks. They support our organisation in that our high standards of employee leadership are of 88%, the responses revealed a representative,
the structured succession planning processes and implemented. Important principles of our corporate positive sentiment and measurable "engagement"
the targeted promotion and further development of governance are open, transparent communication, and "enablement" scores.
internal talents. Dual training models in cooperation a professional culture of error, professional conflict
with universities and schools, internal training and management and leaders acting as role models.

All employees worldwide receive

online access to our digital learning
platform, the "AMANN Learning Hub".

22
EQUAL OPPORTUNITIES

As an industrial production company, the AMANN

Group is proud of its almost balanced proportion of
male (55%) and female (45%) employees. The pro-
portion of women in management positions is also
high by global standards, at 33%. We are particu-
larly proud of our female engineers in a wide range
of production areas worldwide.
To achieve our goal of equal opportunities, we
support women entering management positions
through personal career plans and special external
training designed for female managers. In addition,
our family-friendly working hours and working time
models as well as flexible modern forms of work and
mobile working programmes help many families to
optimally combine career and private life. A modern
culture that also enables fathers to engage in family
work without disadvantages is becoming more and
more prevalent in many country organisations and
is specifically supported by AMANN. We ensure
equal pay for women and men in comparable jobs.

23
 We have introduced health days for our employees wered staff turnover and absenteeism. Each monthly
worldwide. Catering at AMANN locations is free of safety audit was conducted in a different zone within
charge or heavily subsidised in many countries. the plant. Employees from other departments were
We also offer nutritional advice and coaching for a invited to provide additional input. This measure was
healthy lifestyle. With our old-age and future pen- very successful and transferred to other AMANN
sion systems, we generally secure our employees plants.
beyond the legal requirements and active working
life.

MANAGEMENT BY WALKING ABOUT

HEALTH CARE
Amann Threads UK revived the "Safety is our
We strengthen the health and vitality of our employees number one priority" guideline in early 2022. It
as the basis for an agile and efficient organisation. introduced a new form of safety audit. Management
To achieve this, we apply uniform global standards by Walking About (MBWA) is a leadership style
for health protection and offer targeted programmes that encourages direct contact with team members.
for health promotion and prevention. In this way, we Open, natural and informal communication improves
prevent workplace-related and general health risks the relationships of all parties. All aspects of com-
that can lead to illness. AMANN cooperates with lo- munication come into play, including, for example,
cal doctors and clinics. By doing so, we ensure a high non-verbal cues. With the introduction of MBWA,
level of preventive health care in all countries. we have reduced the number of accidents and lo-

24
CORPORATE CITIZENSHIP

Voluntary social commitment – also known as corpor­ make possible on their own without support. With
ate citizenship – is an integral part of our corporate the profound training, which is recognised on the
culture and is also reflected in our corporate purpose. international labour market, the scholarship holders
The Hanns A. Pielenz Foundation, established in contribute in the best case to the transformation to
2005, stands as a corporate foundation for the social fair and sustainable working conditions in their home
responsibility of its founder and is part of the sustain­ countries. Three scholarship holders were supported
ability strategy of the AMANN Group. In the spirit in 2022.
of corporate citizenship, AMANN, as part of society
together with its independent foundation, is commit- MOON
ted to the community above and beyond its actual The MOON project, conducted by Gherzi Germany
business activities. and funded by the Hanns A. Pielenz Foundation,
provides companies in the textile industry with a tool-
kit to actively shape the transformation in the field
FOUNDATION HIGHLIGHTS of tension of current developments. The core of the
OF THE YEAR 2022 project is the MOON study, which forms the basis
for forward-looking options for action. It shows ways
SCHOLARSHIP PROGRAMME for the individual transformation of companies.
In cooperation with the Niederrhein University of
Applied Sciences, the foundation has been support­ The study can be downloaded at:
ing students from Bangladesh since 2018. The integ- www.afbw.eu/projekte/moon
ration of the scholarship holders into the daily work
routine at AMANN ensures practical relevance. The
foundation also provides support for living away
from home. The goal of the support is an academic
career that many families would not be able to

25
 CLIMATE &
ENVIRONMENT

26
With circular products and environmentally
friendly, resource-efficient production
towards more sustainability.

27
OUR RESPONSIBILITY

TEXTILE GUIDELINES AT
INDUSTRY CONTEXT AMANN
The apparel industry uses 93 billion cubic ƒ Professional environmental man-
metres of water every year, which is roughly agement according to ISO 14001
equivalent to the water consumption of five mil-
lion people. Almost 20% of the world‘s waste- ƒ Focus on resource efficiency and
water comes from textile dyeing and processing solutions for circular economy
processes.
Source: “How Much Do Our Wardrobes Cost to the Environment?“ ƒ Saving of fresh water as well as
The World Bank 2019.
treatment of wastewater in cycles
in the production process

28
KEY PERFORMANCE INDICATORS 2015 – 2022

Significant savings were achieved compared to the base year 2015*:

-15% -33% -35%

Reduction in power consumption per kg produced. Reduction in CO2 emissions per kg produced. Reduction in water consumption per kg produced.

2015 100% 2015 100% 2015 100%

2016 -12% 2016 -14% 2016 -15%
2017 -18% 2017 -23% 2017 -7%
2018 -26% 2018 -31% 2018 -18%
2019 -18% 2019 -26% 2019 -18%
2020 -13% 2020 -20% 2020 -15%
2021 -17% 2021 -21% 2021 -23%
2022 -15% 2022 -33% 2022 -35%

Development of KPIs 2015 – 2022 Accident rate per 100 employees 2018 – 2022
Power CO2 Water
100 %
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
90 %

80 %

70 %
1,55 0,74 0,97 0,65 0,47
60 % Fatal
2015 2016 2017 2018 2019 2020 2021 2022 Accident rate accidents

*For better comparability a uniform percentage form of presentation was chosen.

29
ENVIRONMENTAL
AND CLIMATE MANAGEMENT

Active environmental, energy, water, chemical and waste management, which is con- in order to continuously improve waste avoidance
stantly being improved, is an essential part of AMANN's sustainability strategy. For this, and increase the reused quota – particularly in
we rely on uniform environmentally and quality-oriented production processes world- regard to tubes. In Bangladesh, for example, the
wide. This ensures that the same standards apply everywhere - whether in the Czech dyeing tubes are recycled and the recycled mate-
Republic, Bangladesh, China or Germany. rial is reused for the thread carrier for our sewing
threads. In the production plant in China, the tubes
are processed into granulate and find a second
With our uniform global standards for production WASTE PREVENTION life in plastic pallets, umbrella handles or clothes
processes, we can exceed the minimum standards BEFORE DISPOSAL racks. And the end consumer product Seracycle is
set by local regulations on climate and environmen- delivered directly on a thread carrier made of 100%
tal management in many places. Our environmental While the economical use of resources is a value recycled polystyrene (PS), which can be disposed of
management system at the German production site that is being practised at all AMANN locations, directly via recycling bins.
has been certified according to ISO 14001 since waste disposal must be adapted to local conditions.
2000. In China, this was introduced in 2020. This The different regional concepts focus on the fact that
means that we are at the forefront of managing thermal recycling and disposal via landfills must be
waste, water, emissions, energy and raw materials. avoided. For example, fibre-based production waste
In all plants there is continuous
in Augsburg has been almost 100% recycled since
monitoring of all processes and
March 2022 and is no longer thermally recycled.
consumption in the course of
Intensive work is being carried out on new concepts
production in order to optimise
them continuously and sustainably.

30
WATER – OUR KEY RESOURCE „ By shifting the sewing thread finishing from the dye- By using membrane units such as ultrafiltration and
ing process to the final make-up winding process, it reverse osmosis it is planned to reuse up to 50% of the
The production of our sewing threads and embroi- was possible to achieve a saving of around 20% in wastewater in the production cycle. In 2022, 12% on
dery threads consumes a lot of water - especially process water while improving quality at the same average, and at peak time up to 80%, of the waste-
in the dyeing process. We therefore have a special time. water could be recycled. These fluctuations occurred
responsibility to reduce our water consumption and „ Additional saving potentials were achieved through for a number of reasons associated with the introduc-
the environmental impact of our wastewater as much water optimisation in boiler cleaning and cleaning tion phase. At the beginning of 2023, a constant 30%
as possible. cycles. Additionally, the reuse of cold rinse water could already be achieved. We noticed that, compared
We achieve this by optimising processes so that we has led to significant savings. to conventional methods, the ETP system produces more
need less fresh water and can minimise the ex- „ In the Czech Republic, technical improvements to stable dyeing results, and a much better water quality
traction of groundwater. the wastewater treatment plant led to a reduction can be achieved. However, the ETP system requires
By redesigning the processes, we also focus on a in wastewater volumes of up to 50%. The technical more chemicals and energy (approx. 35% additional
reduction of chemicals. At the same time, we are expansion of the wastewater treatment plant in expenditure).
working intensively on the further development of Bangladesh is being planned and will lead to a
water-free dyeing technologies. halving of freshwater consumption.
„ The new plant in India will be equipped with a
Water is essential for our production
full-stage wastewater treatment plant for complete
and has been required in large quanti-
SPECIFICALLY IN 2022: water treatment. This will allow all production
ties up to now.
„ The production site in Vietnam obtains process wastewater to be fully treated and reused in
This is why we are targeting this area
water from a wastewater recycling plant, and a production (zero liquid discharge).
and continuously reducing our fresh
reverse osmosis system is operated at our plant in
water consumption.
Romania. In the long term, up to 50% of the dyeing In the 2021 Sustainability Report, we reported on the
wastewater can be treated here and used again planned measures at our plant in Romania. In 2022,
for dyeing. these were implemented, and the so-called ETP plant
(Effluent Treatment Plant) was commissioned in May.

31
 HEAD START
SAVE ENERGY, REDUCE EMISSIONS THROUGH DIGITALISATION

We aim to continuously make our energy mix more energy consumption by up to 15%. Through these Digitalisation across the textile value chain is steadily
sustainable and pay particular attention to energy various measures we were able to almost compensa- gaining momentum. The textile iindustry is increas-
efficiency. Wherever possible, green electricity is to te for the increased energy due to the ETP in ingly beginning to understand the advantages of
be used. Romania. digitalisation. AMANN has been pioneering in the
One path we have already taken in production is the area of digital colour matching since we started our
conversion of the steam boilers in our dyeing plants collaboration with ColorDigital back in 2020. The
to efficient low-temperature processes. Energy con- ENERGY FROM THE SUN DMIx cloud of the ColorDigital company transforms
sumption and carbon dioxide emissions have been workflows along the textile value chain and allows
reduced as a result. Last year, we already reported In order to make our production more climate- fashion brands and suppliers to utilise relevant assets
on the potential savings in gas consumption of up to friendly, we also rely on solar energy from our own in all phases of the value chain: from raw material
20%. In 2022, optimisation measures enabled us to photovoltaic systems. The Erligheim site already has sourcing to the design, sample process and pro-
additionally reduce gas consumption by up to 13% a photovoltaic system that covers 70% of the daily duction. Using the DMIX cloud for the digital colour
(Romania and Bangladesh). electricity demand on site. The electric charging matching of AMANN threads is a fast and easy
At the same time, the issue of compressed air con- infrastructure, which promotes the e-mobility of our process with a big impact on processing speed and
sumption was effectively addressed. New machines employees, is also achieved in a sustainable manner. process sustainability as it helps avoiding both physi-
in the twisting mill offer the possibility of reducing cal lab dyes and sample shipments.

Digitalisation transforms
workflows and contributes to the
conservation of resources.

32
INCREDIBLE AMANN INDIA
BLUEPRINT FOR SUSTAINABLE PRODUCTION

AMANN has been present in India for more than 15 Completion is planned for autumn 2023. The initial A comprehensive photovoltaic system is also planned
years and serves the flourishing Indian fashion and production target is 800 tons of sewing threads per to cover the entire electricity requirement as well as
technical textiles market with high-quality sewing year. An area of 32,000 square metres is planned a boiler house that is heated with biomass. The latest
and embroidery threads. Now we are taking the for this purpose. production technologies will also reduce the amount
next step with a new, sustainable and state-of-the-art of waste to a minimum.
sewing thread production in Ranipet/Tamil Nadu. In Ranipet, a complete closed-loop system (Zero
AMANN India will thus set a milestone in the history Liquid Discharge / ZLD) will be implemented for the By using ZLD, wastewater-free production is possible,
of the local market. In April 2022, the foundation production water. "Not a single drop of wastewater since the focus of this technology is on reduction
stone was laid with a groundbreaking ceremony for into the ground" - this is the ambitious goal. of the economic wastewater and the production of
the new production plant. clean water which is suitable for reuse. With this
technology, 100% of the extracted water used gets
purified and remains in the cycle. Only 9% of fresh
water has to be replenished due to evaporation.

Particularly with regard to sustainability, the plant

sets new standards:
„ higher efficiency through the use of the latest
technologies
„ lower operating costs
„ minimal emissions
„ avoidance of environmental pollution

India is thus becoming a blueprint for future plans.

33
 PRODUCT &
ECONOMICS

34
When sustainability
meets profitability.

35
OUR RESPONSIBILITY

TEXTILE GUIDELINES AT
INDUSTRY CONTEXT AMANN
The Intergovernmental Panel on Climate Change ƒ Contribute to circular solutions and
(IPCC) clearly identifies the necessary measures sustainable product innovations in
for climate-resilient and sustainable develop-
the textile industry
ment. Implementation often fails to materialise
due to the economic assessment. We must learn ƒ Resource-saving product line and
to think of the three sustainability goals - eco-
cradle to cradle approach
nomic, ecological and social - together and
to see sustainability as an opportunity for the ƒ Supplier Code of Conduct and
economy.
verification through our own
Global Climate Report 2023
https://www.lpb-bw.de/ipcc
audits of suppliers on site

36
CRADLE TO CRADLE
CONSISTENT CIRCULAR ECONOMY

Cradle to Cradle is an approach modelled

on nature: Raw materials are used in
closed cycles and are reused.
TECHNICAL CYCLE BIOLOGICAL CYCLE
In contrast to the linear economy, in which new
resources have to be continuously added, the raw
materials circulate in biological and technical
PRODUCTION PRODUCTION
cycles. This allows for the most resource-efficient
and innovative production processes and products
for the benefit of people and the environment. With TECHNICAL PLANTS PRODUCT
our Cradle to Cradle Certified® Gold product line NUTRIENTS PRODUCT

Lifecycle, we are the first sewing thread manufac-

turer worldwide to cover both the technical and the
biological cycle. Therefore our sewing threads meet
the highest requirements for a resource-efficient and
closed circular economy.

BIOLOGICAL USE PHASE

NUTRIENTS
RETURN USE PHASE
DISASSEMBLY
BIO-DEGRADATION

Cradle to Cradle Certified® is a registered trademark of the

Cradle to Cradle Products Innovation Institute.

37
SUSTAINABILITY NEEDS
INNOVATION

With circular products and environmental- CERTIFIED ACCORDING TO THE

ly friendly, resource-efficient production, GLOBAL RECYCLED STANDARD
we are continuously working towards a
sustainable future worldwide. We can Another milestone is the certification of our production
draw on a long tradition for the innova- sites according to the Global Recycled Standard - GRS
tion processes required for this: Innova- for short. The certification took place at the sites where
tion is part of our DNA, driving us every we manufacture the Recycled product line. The Global
day to achieve our ambitious sustainabil- Recycled Standard includes full traceability of the re-
ity goals. Certifications from "third par- cycled material used throughout the entire production
ties" confirm our claim to compliance with chain. In addition, the GRS certificate documents that
globally recognised standards. AMANN meets the requirements for social and envi-
ronmental practices as well as chemical restrictions.

TRANSPARENT STANDARDS
Five of our seven production
THROUGH OWN PRODUCTION
sites are now GRS certified
and more are to follow.
AMANN manufactures exclusively in its own produc-
tion facilities. Transparent and controlled processes
are thus firmly anchored as standard at all sites. This With the Higg Facility Environmental Module (Higg
is reflected in the certification of our quality manage- FEM) and the Higg Factory Social & Labour Module
ment system according to ISO 9001 and the environ- (Higg FSLM) the environmental performance and
mental management system according to ISO 14001 social labour performance of individual factories
for the Augsburg and China sites. can be measured in a standardised way. We at

38
AMANN are proud that we already use Higg tools
at two of our sites: AMANN Sewing Threads China
- Higg FEM and Higg FSLM, AMANN Bangladesh -
Higg FEM. The reports are on the website of the
Sustainable Apparel Coalition.

SUSTAINABLE PROOF OF ZERO DISCHARGE

PACKAGING SOLUTIONS HIGHEST STANDARDS OF HAZARDOUS CHEMICALS

As part of the circular economy, we are working to With regard to substances of very high concern, Our production is aligned with the "Zero Discharge
continuously increase the recycled content for thread our sewing and embroidery threads comply with of Hazardous Chemicals Manufacturing Restricted
carriers and packaging materials and to reduce the the requirements of the REACH regulation of the Substances List, ZDHC MRSL", which is derived
use of outer packaging as much as possible. The European Union. The current candidate list (SVHC) from the original Detox campaign. The ZDHC (Zero
bobbins for our recycled product line are already of the ECHA as well as the requirements according Discharge of Hazardous Chemicals), an alliance of
made exclusively from recycled granulate. When it to Annex XVII are to be emphasised. As proof and more than 160 international textile companies and
comes to packaging, we dispense with colour-print- for reasons of occupational safety and environmen- organisations, aims to banish hazardous chemicals
ed cardboard packaging and use only recycled tal protection, all dyes and auxiliaries used in our from the global fashion value chain with the Road-
material. By optimising the dimensions of the sales production are listed internally and subjected to a map to Zero programme. We follow this step with
cartons, sustainable successes were achieved at the risk assessment. In addition, our products are tested the AMANN Road to Zero and thus continue to take
Bangladesh production plant. Or another example: for harmful substances and certified according to proactive action against potential pollutants in order
at the production site in the Czech Republic, packag- STANDARD 100 by OEKO-TEX® - a large part of to achieve the highest standards for sustainable
ing films for consumer articles are no longer in use. them even according to the stricter criteria of An- chemical management.
nex 6, which are based on the Detox campaign by
Greenpeace.

39
OUR LIFECYCLE
AND RECYCLED LINES

The products from our Lifecycle line are circular and

Cradle to Cradle Certified® Gold. Cradle to Crad-
le stands for a continuous and consistent circular
economy in which no more waste is produced. After
the use phase, products are either returned to bio-
logical cycles as biological nutrients or kept in their
technical cycles as technical raw materials. Cradle
MATERIAL HEALTH
to Cradle Certified® products are tested and certi-
fied in five critical areas of sustainability: Material PRODUCT CIRCULARITY
Health, Product Circularity, Clean Air and Climate
CLEAN AIR & CLIMATE PROTECTION
Protection, Water and Soil Stewardship, and Social
Fairness. The certificate is awarded in levels: Basic, WATER & SOIL STEWARDSHIP

Bronze, Silver, Gold and Platinum.

SOCIAL FAIRNESS

The AMANN Group is the first sewing thread

manufacturer in the world to be able to offer sewing
threads for both the biological and the technical
cycle with its Lifecycle range. Lifecycle Cotton, the new sewing thread for the bio- The AMANN sewing and embroidery threads from
logical cycle, is made from extra long-staple organic the Recycled line are made entirely from recycled
Lifecycle Polyamide, a sewing thread made from cotton and dyed exclusively with compostable dyes. materials. In order to guarantee the high strength
recycled polyamide 6, has been specially develo- Our purchased cotton is also certified according to and corresponding elongation required for the
ped for the technical cycle. It is made from textile the Global Organic Textile Standard (GOTS), but we sewing thread, only raw threads are utilised that
waste and has excellent strength and colour fastness do not list this certification, as our Cradle to Cradle have been produced 100% from used and recycled
properties. certification meets an even higher standard. transparent PET bottles. Naturally, we only purchase
GRS-certified recycled raw threads.

40
SUPPLIER RESPONSIBILITY
AT A GLANCE

AMANN stands for transparency, SUPPLIER CODE PARTNERSHIP

partnership and social and ecological OF CONDUCT COOPERATION
responsibility in the supply chain.

We therefore select our sales partners and suppliers

very carefully. In addition to the legal requirements,
we also ensure compliance with our own ethical
principles of conduct as well as the environmental
standards and criteria of our Supplier Code of Con-
duct and check these in the course of on-site audits
at suppliers.

SUPPLIER
RESPONSIBILITY

RESTRICTION LIST FOR CERTAIN IMPLEMENTATION

CHEMICAL SUBSTANCES OF AUDITS

CONSIDERATION OF
ENVIRONMENTAL ASPECTS

41
SUSTAINABLE PROCUREMENT

As a globally active family business, we take responsibility in our supply chain and materials from ecologically progressive and approv-
select our sales partners and suppliers with special care. To this end, we ensure that ed suppliers and have managed to eliminate almost
our own ethical principles of conduct as well as environmental standards are com- all listed substances since 2020.
plied with in addition to legal requirements. In accordance with our cluster strategy,
supply chains are kept as short as possible by selecting local suppliers in order to A final focus here is on per- and polyfluorinated
minimise CO2 emissions. alkyl compounds (PFAS), which are used in many
products because of their water- and dirt-repellent
properties. These persistent substances, once releas­
Our goal is to do business ethically in the sense of We base our production on the "Zero Discharge ed, remain in the environment for a long time and
the United Nations Global Compact. Integrity is an of Hazardous Chemicals Manufacturing Restricted lead to irreversible environmental exposure and
indispensable prerequisite for this, and in this context Substances List". This list, provided by the "Zero accumulation, which is a cause for great concern.
it means above all compliance with the law, honesty, Discharge of Hazardous Chemicals" initiative of the We already comply with the impending restrictions
reliability and fairness. same name, currently lists more than 20 groups of or ban on PFAS, and by the end of 2023 all water-
substances that are to be banned from the textile repellent articles will be converted to a completely
PARTNERSHIP FOR MORE industry. Accordingly, we only purchase our raw PFAS-free finish.
ENVIRONMENTALLY FRIENDLY
RAW MATERIALS We will therefore continue our AMANN Road to
Zero mission in 2023 and drive towards zero
We only procure from suppliers with
We also expect integrity from our sales partners and pollutants in the future.
an ecologically progressive portfolio
suppliers, whom we treat with courtesy and respect.
and have a clear focus on shortening
Furthermore, we attach great importance to ensuring
the delivery routes from the supplier to
that decisions are made and passed on transparent-
our plants (local sourcing).
ly and comprehensibly in our exchanges with these
partners.

42
THE AMANN SUPPLIER „ Responsibile sourcing of raw materials To monitor compliance with the standards set out in
CODE OF CONDUCT „ Anti-discrimination and a respectful working our Supplier Code of Conduct, we regularly con-
environment duct compliance audits on site at our suppliers. We
The basis for our day-to-day work is our AMANN „ Occupational safety and health protection expect an open-minded attitude from our partners in
Supplier Code of Conduct, which must be signed by „ Respect for workers' rights this regard. We reserve the right to take legal action
all suppliers. It includes the following key points: „ Exclusion of forced labour and child labour if violations are discovered. In the event of serious
„ Complaints mechanism and protection of violations, ongoing contractual relationships may be
„ Conformity with applicable laws and regulations whistleblowers terminated without notice. On-site compliance audits
„ Anti-corruption were conducted at two main supplier factories in
„ Fair competition Since 2020, all of AMANN's strategic key suppliers, India in November 2022. Two on-site compliance
„ Foreign trade restrictions without exception, have signed the code or were audits at third-party suppliers were included in the
„ Protection of data and business information able to provide evidence of their own comparable AMANN internal audit plan for 2023. In addition,
„ Avoidance of conflicts of interest code. the implementation status of the action plans agreed
„ Environmental protection and economical use of after the two supplier compliance audits will be
natural resources The AMANN Supplier Code of Conduct was revised monitored in follow-up audits during the first half of
„ Fair working conditions in 2022 and will be published in 2023. In particular, 2023.
new regulations on the German LKSG (Supply Chain
Due Diligence Act) and on whistleblower protection
were included.

We regularly check compliance with

our Supplier Code of Conduct by
auditing our suppliers on site.

43
TEN PRINCIPLES OF THE UN GLOBAL COMPACT
AND PAGE REFERENCES
Principle Page
The AMANN Group is a signatory HUMAN RIGHTS
of the United Nations Global
Compact. The table explains the 1 Respect for international human rights 20-25, 41-43
assignment of the ten principles.
2 Avoidance of human rights violations 41-43

WORK STANDARDS

3 Upholding freedom of association and collective bargaining 41-43

4 Elimination of forced labour 41-43

5 Abolition of child labour 41-43

6 Elimination of discrimination 20-23, 25

ENVIRONMENT AND CLIMATE

7 Precautionary principle in dealing with environmental problems 28-33, 36-40

8 Promotion of environmental awareness 28-33

9 Environmentally friendly technologies 28-33, 36-40

PREVENTION OF CORRUPTION

10 Fight against corruption 41, 43

44
KEY FIGURES FROM THE
SUSTAINABILITY MANAGEMENT 2022
Company profile Quality and environmental management
Legal form: Limited partnership DIN EN ISO 9001 – all production plants
Ownership: 47% Verwaltungsgesellschaft Amann & Söhne mbH 53% Family IATF 16949 – all production plants except Czech Republic, Vietnam and
ownership Bangladesh
Sectors: Automotive, Apparel industry, Techtex and consumer DIN EN ISO 14001 – production sites in Augsburg and China are already
certified. The certifications for the remaining sites are in the planning stage.
Central company data
Higg FEM is already being used at the production sites AMANN Sewing
Group turnover: approx. 240 million EUR
Threads China and AMANN Bangladesh. AMANN China is additionally
Subsidiaries in 19 countries
assessed according to Higg FSLM.
Production facilities in 8 countries
Produced quantity approx. 10,500 tons Hazardous Substances
Product alignment according to Zero Discharge of Hazardous Chemicals
Central employee data Manufacturing Restricted Substances: We purchase our raw materials only
Employees approx. 2,600 worldwide from ecologically progressive and approved suppliers, and have managed to
Distribution women/men with a ratio of 45% to 55% worldwide. eliminate almost all listed substances since 2020.
33% of all management positions are held by female colleagues. The REACH regulation (Annexes XIV and XVII) of the European Union is com-
AMANN Code of Conduct - complied with by all employees worldwide. plied with.
PFAS / PFC containing finishes (water-repellent finish) have been replaced by a
Product certifications:
PFAS-free finish.
AMANN products are certified according to STANDARD 100 by OEKO-TEX®.
A large number of them are in fact certified according to the even stricter crite- Key figures on supplier / supply chain management
ria of Annex 6. The technical products Serabond, Zyex and PP-tech are exempt AMANN Supplier Code of Conduct: Since 2020, all of AMANN's strategic key
from certification. suppliers have signed the code without exception or have been able to demon-
Additionally: GRS Global Recycled Standard and Cradle to Cradle Certified®. strate their own and comparable code. The code was revised in 2022 and will be
Our purchased cotton is also certified according to the Global Organic Textile published in 2023. In particular, new regulations on the German LKSG (Supply
Standard (GOTS). Chain Sourcing Obligations Act) and on whistleblower protection were included.
Audits: after the end of the pandemic situation, we were able to conduct on-site
compliance audits at two main supplier factories in India in November 2022.

45
 EN 0112023
AMANN & Söhne GmbH & Co. KG
Hauptstrasse 1 | 74357 Bönnigheim, Germany
Telephone +49 7143 2770
E-mail: [email protected]
www.amann.com