Sustainability Report 2021

PUTTING THE FUTURE FIRST.
2021 SUSTAINABILITY REPORT

Message from the Board Approach to Sustainability Conserve Empower Support Trust
ABOUT HIRDARAMANI
A pioneer of the Sri Lankan apparel industry, today
The Hirdaramani Group is a global manufacturer
providing integrated apparel design, sourcing,
production, and distribution solutions to premium
international brands. With over 55,000 employees
across 6 countries, at Hirdaramani, we don’t just
manufacture clothing. We partner with clients to
deliver the finest garments to discerning customers
worldwide. For us, it’s about combining the magic
of design with the sensibility of business. A future-
focused organisation, we’re committed to doing the
right thing today, for a better tomorrow.
ABOUT THIS REPORT

This report provides an overview of the
performance of the Hirdaramani Sustainability
Programs as of 31st December 2021. The data
provided here represents the results for our
manufacturing operations across Sri Lanka,
Vietnam, Bangladesh and Ethiopia for the year of
reporting. To the best of our knowledge, all data is
complete and accurate at the time of publication.
The report also sets out our sustainability goals

and targets as part of our roadmap for 2025.
1
CONTENTS
1 Message from the Board 3

Sustainable Manufacturing Technologies
Empower
Our 2025 People Ambitions

19
20
21
2 Our Approach to Sustainability

4 A Culture for Creating the Future
22
Led by Our Values 5 Wonders of Wellbeing 23
Materiality Assessment 5 Equal Opportunities, Diversity and Inclusion 26
UN Sustainable Development Agenda 6 Covid-19 Response 29
Alignment with the Global ESG Agenda 7 5 Support 32
Putting the Future First 8 Our 2025 Community Ambitions

33
Pillars of Sustainability 9 Children and Education 34
Our Ambitions 10 Healthcare 35
3 Conserve 11 Environment 36
Our 2025 Environment Ambitions 12 6 Trust 41
Energy 13 Our 2025 Ambitions 42
The Road to Net Zero 14 Sustainable & Ethical Product 43
Water 15 Jeans ReDesign 44
Waste
16 Partnering for Good 45
The HIGG Index 17 Developing best practices with the SAC 46
Chemical Management 18 Commitment to Standards 47

2
MESSAGE FROM THE BOARD

Our focus on sustainability is rooted in a deeply very proud. Back in 2008, we opened the world’s other organisations, the pandemic forced a
held belief in doing the right thing. This belief first custom-built green apparel factory. In complete re-evaluation of our approach to people,
drives us to do more than talk about good 2010, we launched our first renewable energy health and safety, operations, and supply chain.
intentions. It drives us to take action and make a project, scaling up to the 573GWh of annual It also reinvigorated our mission and showed
real impact, because truly driving a sustainability capacity we have in place today. We had the first Hirdaramani values in action in the best way –
agenda is not easy. And having a measurable CarbonNeutral® certified apparel manufacturing through helping others and working creatively
impact on the planet, people and communities is facility in Asia, and in 2021 we renewed this during times of hardship.
a difficult challenge. But it is one we have never certification for the ninth consecutive year. Our list
shied away from. of accomplishments goes on, as you will see in this For example, we fast-tracked Group-wide
report. digitalisation investments that are benefiting
At Hirdaramani, we have never settled for taking our people, our customers, our suppliers and the
the easy path. Our ambition is to be a global sustainability planet. Our internationally recognised Wonders of
Today, the apparel and fashion industry is the trailblazer and standard setter and therefore our Wellbeing program provided invaluable support to
second largest consumer of water and produces up efforts are underpinned by an alignment with our associates and their families. You will also read
to 10% of global greenhouse gas emissions – this the global ESG agenda. We were early adopters about our many community initiatives across Sri
is more than all international flights and maritime of global standards and best practices, from Lanka, Vietnam and Bangladesh – from distributing
shipping combined. Our Group has operated in UN Sustainable Development Goals and the US personal protective equipment and donating food
areas facing multiple challenges including natural Green Building Council LEED certification to the parcels to supporting children’s education.
disasters, civil war and economic crises for over Higg Index and the Social & Labour Convergence
a hundred years. Throughout our history, we Program (SLCP). Forging ahead / Putting the Future First
have constantly challenged ourselves to tackle We have always known we are part of a greater
obstacles head-on and make the maximum This year, by launching our Future First whole, and we will continue to do our part to
difference in everything we do. sustainability roadmap, aligned with science make the world a better place and create a more
based targets, we have given new (or “a renewed”) sustainable future for everyone. By holding
Rooted in our heritage, intrinsic to our culture impetus to our efforts – and have signaled our ourselves accountable through our Future First
A longstanding, ongoing commitment to intention to be a leader in ESG transparency and roadmap, we will not only have a direct impact, but
sustainability is part of our heritage and culture accountability. we will also support the sustainability agendas of
as a family business. You see this in the values many leading global apparel and fashion brands.
we live every day: innovating to create the future; Responding to a changing world “Our ambition is to be a global
doing the right thing and making things better; Our sustainability leadership within the apparel So we will continue our century-long journey. We sustainability trailblazer and standard
collaborating to be stronger together; acting fast sector was reinforced during the Covid-19 will continue to take the initiative, to battle our way
and keeping things moving; and believing in our pandemic, which has prompted the wider through the toughest obstacles and to apply our setter and therefore our efforts are
ability to make the impossible possible. industry to prioritise environmental and social innovative thinking to solving the global challenges
underpinned by an alignment with the
considerations. we all face.
These values have driven years of impressive The past two years have been the most challenging global ESG agenda.”
sustainability achievements of which we are that Hirdaramani has ever faced. As with so many
3
OUR APPROACH TO
An Inconvenient Truth. A watershed
2006 moment for re-evaluating our
approach to sustainability
SUSTAINABILITY
Opened the world’s
first custom-built green 2008
apparel factory
Launched our first

2010
Hirdaramani has always operated responsibly For us, sustainability has never been about ticking wind energy project
and strived to do the right thing. But in 2006, we a box on a report or keeping up appearances.
experienced a watershed moment that led to a It’s about truly transforming our business and Announcing Group-wide
fundamental shift for the company. committing to making things better. commitment to achieving LEED 2013
green building standards
Anil Hirdaramani, currently Director Emeritus in An enduring commitment Aligning with UN Sustainable
the Group, having just watched the documentary Within two years, we had opened the world’s first 2016 Development Goals for our
An Inconvenient Truth. Former US Vice President custom-build green apparel factory. 15 years later, sustainability efforts
Al Gore’s effort to raise awareness of the dangers we are still walking the talk – environmental, social Launch of Wonders of Wellbeing
of climate change, was able to convince the family and governance (ESG) principles are embedded in (WOW), a holistic and engaging 2017
and the leadership of the business that we needed every facet of our operations and inform our values employee wellbeing initiative
to act immediately and do what is right based on and all our ways of working. We collaborate with
First stage of the Suryadhanavi
our own core values. customers to pioneer more sustainable products
2018 rooftop solar project, 21,000 rooftop
and consistently use more environmentally friendly
solar panels installed in Sri Lanka
A fundamental shift raw materials. We partner with industry colleagues
The movie kick-started a broad-ranging discussion to set and implement new standards. And we take Production of first batch of
about the long-term sustainability of our business pride in thinking big – whether it’s achieving net- circular jeans as part of The Jeans 2019
– what we could do differently to reduce our zero across all our facilities in Sri Lanka, or helping Redesign
contribution to the world’s shared challenges, and develop a new, circular economy-based approach t Z er o Achieve net-zero status for GHG
Ne
how we could make a positive impact through our to manufacturing denim jeans, one of the most 2019 emissions from energy across all
activities. Nothing was off the table. resource-intensive garments. our facilities in Sri Lanka
Begin reviewing our sustainability
That discussion sparked a mindset shift strategy with a new materiality 2020
for Hirdaramani and a renewed focus on assessment to set future goals.
our responsibility to future generations. We
Achieve I-REC accreditation
immediately began researching, developing, and
2020 recognising the high standard of
implementing an environmental sustainability
our energy monitoring systems
strategy. We knew we didn’t have all the answers
We launch Future First, our
when we set out, but we were committed to
2025 sustainability roadmap,
learning through the process and applying those 2021
setting ambitious targets
learnings throughout our operations. aligned with global initiatives
4
LED BY OUR VALUES

Our drive to making things better is enshrined in our company values, along with our conviction that by working together we can achieve great things.
These values are infused throughout our organisation and guide everything we do. Every day we strive to:
CREATE THE FUTURE MAKE THINGS BETTER STRONGER TOGETHER KEEP IT MOVING BELIEVE WE CAN
We have a long history of using our We have always had the integrity to Hirdaramani is a family business with a In our business, we never stand still. Hirdaramani has an insatiable hunger
entrepreneurial spirit to create the do the right thing. That’s how our vast footprint. The business is built on We live in a world of constant change. for achievement. A resilient force, we
future. We value people, processes business began and why it continues to our tradition of respecting relationships, We value the ability to think quickly and face obstacles every day, but with hope
and products that enable this pursuit. thrive. As the business world becomes collaborating like kin, and ensuring act fast. When issues arise, we resolve and determination, we always prevail.
It’s about recognising an opportunity, more transparent and sustainability, the outcomes benefit all. We may not them with pace and move on. It’s about We find opportunities when it seems
having an innovative vision, creating a compliance and equality become all be blood relatives, but we treat our continuous progress, staying on our there are none and turn the impossible
solution, and making it a reality. increasingly important, it’s crucial we suppliers, employees, and customers toes and always moving forward. into the possible. We value those who
continue to make the world a better like they’re one of us, partnering with never give up.
place. them on the journey to success.
MATERIALITY ASSESSMENT “The Hirdaramani sustainability team – in Sri Lanka, Bangladesh and
Where can we make the biggest difference to our across Vietnam, Bangladesh and Sri Lanka. It also Vietnam – has a longstanding work to implement good sustainability
customers, communities, colleagues, industry and encompassed a detailed benchmarking exercise, practices, like for example the implementation of Higg FEM and FSLM,
planet? That’s where our material topics come in. including qualitative and quantitative analysis of the green building certifications and the WoW project. During my work
risks, opportunities and impacts across our value
with Hirdaramani I was impressed by the competent teams and the
We identified our material topics through an in- chain.
depth assessment of areas that matter most to continuity in their efforts.
our stakeholders and have the greatest impact The materiality assessment helps guide our Future Furthermore, Hirdaramani is a best practice example in the important
on society and the planet. The assessment was First sustainability roadmap as we implement matter of having top management involved. Cudos, Hirdaramani team!.”
carried out by Karin Ekberg, CEO of Leadership & the recommendations and achieve measurable
Sustainability, who engaged with our global teams progress towards our 2025 targets. – KARIN EKBERG, CEO, LEADERSHIP & SUSTAINABILITY.
as well as conducting site visits to many facilities
5
CONTRIBUTING TO
THE UN SUSTAINABLE
DEVELOPMENT AGENDA
Our Future First sustainability roadmap is also education, reduce inequality and drive economic
aligned with the United Nations Sustainable growth – all while tackling climate change and
Development Goals Framework (UN SDGs), which working to preserve oceans and forests. They
provide a shared blueprint for peace and prosperity therefore provide a meaningful framework for
for people and the planet. UN SDGs recognise a holistic sustainability strategy that ensures
that ending poverty and deprivation must go hand- Hirdaramani’s efforts have maximum positive
in-hand with strategies that improve health and impact.
6
ALIGNMENT WITH THE

GLOBAL ESG AGENDA
We’re committed to putting the future first and being effective custodians for future generations. But we
know we can’t do this alone. Effective ESG is about working together to tackle big problems with creative
solutions, which is why we align with our customers’ priorities and global best practices. We’ve therefore
referred to the following international frameworks and standards in developing and implementing our
sustainability strategy.
ISO
14001 : 2015
ISO
26000 : 2010
7
PUTTING THE
FUTURE FIRST
Importantly, we know that our work towards we have established a framework for monitoring
sustainability will be continuous. We will always our impact, and we are setting targets to focus our
push ourselves to do more. This commitment is efforts and measure our performance.
defined in Future First, our 2025 sustainability
roadmap. Future First is based on four pillars As we execute Future First, we’re making the
– Conserve, Empower, Support and Trust – and business more resilient while aligning with the
sets out our ambition to be a global sustainability values of our customers, employees, and society
leader and standard setter. – who all want to work with and buy from brands
they can trust. In everything we do, we will
This strategy was developed in consultation with continue to heed the call to action that began our
a range of stakeholders, informed by industry sustainability journey – fulfilling the Hirdaramani
best practices, and guided by expert consultants. tradition as proud custodians of our communities
Through a comprehensive materiality assessment, and the planet for future generations.
8
PILLARS OF SUSTAINABILITY
CONSERVE EMPOWER SUPPORT TRUST

THE ENVIRONMENT OUR ASSOCIATES COMMUNITIES IN GOOD CHOICES
We are making a steadfast commitment to Every day we make a heartfelt promise to our True humanity lies in our willingness to help each We are committed to earning and maintaining
reducing the impact we have on the planet. people – to inspire, to uplift and to protect. By other. Health, education, and equality are key the trust people place in us. From ensuring the
From the way we manufacture to what we create committing to ensuring happy, healthy, fulfilling drivers in our commitment as we put the future of highest quality sustainable products to upholding
– aligning with science based targets – we are lives, we are putting their future first. our people and communities first. the highest governance and standards – we work
holding ourselves accountable to putting the future together with our stakeholders to put the future
first. first.
9
OUR 2025 AMBITIONS

We have set high ambitions for 2025 with our targets across all elements of our sustainability strategy.
Here are some highlights.
100%
of facilities LEED or green
building certified
50%
absolute greenhouse gas
savings, also to align with the
50%
reduction in normalised
industrial freshwater
ZERO
waste to landfill
science based target initiative consumption

by 2030
80%
of all raw material
used to be
100%
of the Group involved in
our Wonders of Wellbeing
30%
of our leadership positions
held by women
70%
of supervisors reached
through our Supervisory
“certified sustainable” (WOW) Program Development Program
12,800 100%
people impacted annually
through education and
reforestation and biodiversity
projects, reflecting the total
community health projects physical footprint of our facilities
spearheaded by each factory
10
CONSERVE
THE ENVIRONMENT
3 Conserve 11
Our 2025 Environment Ambitions 12
Energy 13
The Road to Net Zero 14
Water 15
Waste 16
The HIGG Index 17
Chemical Management 18
Sustainable Manufacturing Technologies 19

11
We are making a steadfast commitment to point where the positives outweigh the negatives. do, everywhere we have a presence. As a result,
reducing the impact we have on the planet. From our environmental commitments aren’t just about
the way we manufacture to what we create – From fibres to dyes, we have long relied on the headline projects – they’re about a long-term,
aligning with science based targets – we are incredible textures and colours nature gives holistic approach to conserving the planet for
holding ourselves accountable to putting the us to create beautiful products. As a result, future generations.
future first. the Hirdaramani way has always focused on
conserving and enriching our natural environment
The energy used to power manufacturing facilities. – and we’ve long been a pioneer when it comes
The water used to produce textiles and wash to driving initiatives and adopting technology to
garments. The fuel used to transport everything achieve this.
from raw materials to finished products – the list
goes on. There’s no question that the apparel and Our Future First sustainability roadmap is the
fashion industry has an impact on the planet. Not latest milestone in our ongoing ESG efforts,
only does the industry account for 10% of global building on our achievements to date. It represents
greenhouse gas emissions, but it’s responsible for a comprehensive approach to addressing our
up to 35% of marine microplastics and 1.2 billion environmental footprint, using industry best
tonnes of carbon dioxide emissions annually. 1 practices and science based targets to analyse
Despite this, our industry truly can work to reach a and minimise our impact throughout everything we
OUR 2025 ENVIRONMENT AMBITIONS

100% 50% 50%
building certified
ZERO
of facilities LEED or green absolute greenhouse gas
savings, also to align with the
reduction in normalised
industrial freshwater
waste to landfill
science based target initiative consumption

by 2030
ZERO
Use of hazardous
chemicals
80%
of all raw material
used to be “certified sustainable”
100%
of facilities ISO 14001
certified or aligned to
100%
of facilities with a Higg Facility
Environmental Module (FEM)
ISO 26000 score of at least 80
1 Sources: UN Environmental Program (UNEP) and a report from the International Union for Conservation of Nature (IUCN) in 2017 12
ENERGY
Over the years, we have developed robust
processes for tracking, monitoring, and optimising
our energy consumption. We continue to build on
these by embracing new technology and standards
that help us boost transparency and accountability
as we work towards our 2025 ambitions – reducing
emissions by 50% in line with the Science Based
Targets Initiative, achieving 20% normalised energy
reductions and certifying all facilities Carbon
Neutral.
OUR 2021 PROGRESS

Starting in 2021, we conducted comprehensive
energy audits at more than 70% of our facilities,
informing the development of KPIs for each cluster
and factory. These KPIs are helping us define
roadmaps for running all facilities on the most
70% 50%
energy-efficient equipment available by 2025 and
with at least 50% renewable energy by 2030. This
year, we began addressing initial opportunities
highlighted in the audits, including installing
of facilities conducted of clusters and facilities
submeters and more accurate measurement
comprehensive energy now have specific KPIs for
mechanisms across all energy sources in energy-
audits energy efficiency
intensive areas.
OUR 2025 ENERGY AMBITIONS

Hirdaramani is a regional pioneer when it comes
to LEED and green building certifications, and we
continuously learn from our experiences as we
drive energy efficiency across our facilities. We are
100% 20% 50%+ 100%

making steadfast progress on our path to achieve
100% LEED or green building-certified facilities by
2025, including a deep commitment to investing
in renewable energy as the power source of the
future. of facilities certified normalised energy of energy requirements covered of facilities using the most
Carbon Neutral savings (from our by renewable sources at all energy-efficient equipment
2019 baseline) facilities by 2030 available
13
THE ROAD TO NET ZERO

100% 16
Our ultimate, long-term aim is to achieve net-zero dioxide equivalent (CO2e) each year. We now have
status across our entire manufacturing footprint, rooftop solar generation capabilities across eight
and we’ve aligned with the Science Based Targets facilities in Sri Lanka and five in Vietnam, with
Initiative (SBTi) to give us a viable roadmap for plans to expand in those countries and launch the
achieving that. project in Bangladesh in 2022. net zero from energy across facilities globally are LEED or green
Hirdaramani Sri Lanka, based building certified, 11 of which are Gold
In May 2019, we achieved net-zero status for And we’re not just investing in renewable energy on ISO 14064 standards (2019) or Platinum Rated (2009-2021)
greenhouse gas emissions from energy across – we’re also holding ourselves accountable for
16.18 GWh 1 ST
all our Sri Lankan facilities based on ISO 14064 our progress. We were the first company in Sri
standards. It was a major milestone, which we Lanka to receive International Renewable Energy
accomplished by moving beyond offsetting and Certificates (I-RECs), which provide a clear
embracing bold energy efficiency and renewable and accurate view of each facility’s renewable
energy generation initiatives. electricity energy usage. This ensures we’re of renewable electricity in Sri Lanka to receive International
transparent about our efforts to reduce greenhouse generated annually Renewable Energy Certificates (I-RECs)
As part of our energy efficiency drive, we aim gas emissions from electricity and overall energy
to have all our facilities LEED or green building and adhere to international standards.
certified in line with international standards
recognising sustainability achievement and
leadership. As of the end of 2021, 16 facilities
across Sri Lanka, Vietnam and Bangladesh were
certified, and we’re continuing to convert existing
facilities and building all new ones to meet these
standards.
Our on-site renewable power generation capacity

now totals a massive 16.2 GWh annually. This is
in addition to 100 MW capacity of wind power
across four farms and 25 MW capacity of mini
hydro power across three plants. The majority
of our renewable power comes from solar PV as
part of our ongoing project to install photovoltaic
panels on all our facility rooftops. Through our
Suryadhanavi Rooftop Solar Project, we generate
16.2 GWh annually, saving 13,400 tonnes of carbon
14
WATER
The apparel industry has traditionally relied on
water-intensive processes – it takes an incredible
7,000 litres of water to manufacture a single
pair of denim jeans. As a result, Hirdaramani
has long focused on water efficiency, whether in
creating innovative new processes that reduce
consumption, taking a creative approach to
rainwater harvesting, ensuring all facilities
have water treatment plants or boosting water
recycling rates. And it’s not just about reducing
consumption; we also focus on how we impact
OUR 2021 PROGRESS

the water cycle, pioneering new ways of managing
chemical usage and discharge. After all, water is a
valuable resource not just for us as manufacturers
but for human existence – and we take our
responsibility to preserve it seriously.
As part of our 2025 goals, we’re on track to

optimise water use, minimise soil and water
pollution, and reduce our dependence on ground
water and municipal water for non-potable
71% 100%
of laundries, our most water-intensive
facilities, conducted comprehensive water
of our laundries were upgraded with
more water-efficient equipment
requirements. In 2021, we conducted detailed
audits and cleaner production assessments
audits and production assessments at facilities like
laundries that have water-intensive processes. We
OUR 2025 WATER AMBITIONS

then installed new sub meters that give us more
detailed insight into usage from all water sources.
In addition, we implemented more water-efficient
equipment such as taps and dishwashers in non-
50% 50%+ 10% 10%

industrial processes.
reduction in normalised industrial of industrial wastewater recycled reduction in normalised of our domestic water requirement
freshwater consumption for industrial process use domestic water consumption (for cooling or cleaning) met from
(from our 2019 baseline) (from our 2019 baseline) (from our 2019 baseline) rainwater harvesting
United Nations: Act Now - https://www.un.org/en/actnow/facts-and-figures 15
WASTE
With 104 billion items of clothing purchased
globally each year – and 20% of clothing produced
going unsold – it’s imperative that we break the
culture of wastefulness that prevails around the
fashion industry. And we’re doing our part.
Zero waste to landfill is our ambitious goal as we

champion circular economy principles in fashion.
And we’re putting every aspect of operations
under the microscope to achieve this. Many of our
facilities have already succeeded thanks to our
OUR 2021 PROGRESS

long-established Reduce, Reuse, Recycle policies,
but we’re constantly striving to improve.
We have implemented mechanisms for accurately

measuring waste generated from both production
100% 100%
and non-production processes. As part of this,
we mapped out fabric waste, looking at both
composition and quantity so as to increase
recycling rates.
of waste types across production and of fabric waste mapped by composition
non-production processes now covered and quantity to help optimize recycling
by new measurement mechanisms
OUR 2025 WASTE AMBITIONS

ZERO 5%
waste to landfill
80% reduction in normalised
solid waste
of fabric waste recycled back
into production processes
(from our 2019 baseline)
Bloomberg: https://www.bloomberg.com/graphics/2022-fashion-industry-environmental-impact/ 16
FACILITY
ENVIRONMENTAL
MANAGEMENT:
THE HIGG INDEX
As an Initial Manufacturing Member of the
Sustainable Apparel Coalition (SAC), Hirdaramani
is proud to have played a key role in developing
and testing their Higg Index, which has landmark
standards for assessing environmental and social
OUR 2021 PROGRESS

sustainability across the apparel supply chain.
Over the years, we have worked closely with SAC
using our experiences to collectively improve
the standards so they’re not just practical and
75% 100%
actionable but are also truly valuable in driving
ESG outcomes.
As of the end of 2021, we have achieved Higg

Facility Environmental Module (FEM) Level 2 with of Hirdaramani-owned facilities achieved of Hirdaramani-managed facilities achieved
an overall score of at least 65 at 75% of facilities Higg FEM Level 2 in most sections with an Higg FEM Level 1 with scores of at least 50
we own. We’ve achieved FEM Level 1 with scores overall score of at least 65
of at least 50 at 100% of all Hirdaramani-managed
OUR 2025 HIGG AMBITIONS

facilities.
Read more about our partnership with SAC and the

Higg Index on page 46.
100% 80
of facilities achieve Higg FEM Level 2 minimum Higg FEM score for all
our manufacturing units
17
CHEMICAL OUR 2021 PROGRESS

Our washing facilities, Hirdaramani Industries
Seethawaka and Sithro as well as Kenpark
Bangladesh Pvt Ltd have successfully completed
MANAGEMENT ‘Zero supplier Foundation Level’ and earned the

Certification as well (Certificate number 174-2512-
100% 69%
7E7 and 131-2451-7E7 respectively).
Hirdaramani has long spearheaded an ambitious

Our efforts this year also focused on enhancing
approach to chemical management. We’ve worked
our approach in line with best-practice standards,
extensively to refine manufacturing processes to of our chemical-intensive usage of chemicals from positive
achieving ZDHC Foundational Level for all
reduce the use of hazardous substances and are facilities achieved Higg FEM lists for our chemical intensive
industrial processes. We also implemented
working towards achieving Zero Discharge for Level 1 and 2 requirements on processes
Manufacturing Restricted Substances Lists
Hazardous Chemicals (ZDHC). chemical management
(MRSL), Restricted Substances Lists (RSL) and
chemical management processes in accordance
OUR 2025 CHEMICAL

The ZDHC in check report is obtained through
with Higg FEM at all our chemical-intensive
the clean chain platform to check the chemical
facilities and 100% of our conventional facilities.
inventory against the ZDHC MRSL Accepted
Certifications in the ZDHC Gateway. Hirdaramani
MANAGEMENT GOALS
is committed to ZDHC protocols when selecting
any chemicals for the wash/dye process. In
our facilities all chemical (production and non-
production) are binding with ZDHC MRSL Version
2.0. We can proudly say that we have been working
ZERO 100%
vigorously to eliminate hazardous chemical usage
in our production process.
To ensure in-house use of safer chemicals the

ZDHC conformance guidance is used. Where the use of hazardous of facilities achieve Higg FEM
chemicals are categorized under three levels. The chemicals standards for MRSL, RSL and
1st level and above indicates better conformance chemical management processes
of the chemical with ZDHC MRSL.
Our washing plants also adhere to ZDHC

Wastewater 1.1 version parameters. We carry out
bi-annual ZDHC wastewater testing for Treated
water, Raw Waste water and Sludge and update
these reports to ZDHC portal under water data. We
100% ZERO
of industrial processes
achieve ZDHC Aspirational
release of synthetic
microfibres from production
ZERO
use of pumice stones in laundry
processes
make these reports visible to our buyers through Level processes.
our ZDHC portfolio.
18
SUSTAINABLE
MANUFACTURING NINE YEARS AT THE
TECHNOLOGIES FOREFRONT OF CARBON
NEUTRALITY
From waterless washing and ozone washing to
laser finishing and waste-eliminating digitalisation,
Hirdaramani has continuously invested in a broad
range of sustainable technologies. We will continue
being an early adopter of new solutions, setting an
We certainly don’t rest on our laurels when it Mihila is now one of Sri Lanka’s most accredited
industry standard for innovation in action.
comes to environmental achievements. Mihila, factories, with certifications ranging from LEED
our flagship green factory in Sri Lanka, was Gold, ISO 14001 and ISO 45001 to Worldwide
Hirdaramani product development centres
the first CarbonNeutral® certified apparel Responsible Accredited Production (WRAP), Fair
drive our leadership in this area. They have an
manufacturing facility in Asia, and in 2021 we Trade, Ethical Trading Initiative (ETI), Business
embedded ESG ethos and empower our teams with
renewed this certification for the ninth year. Social Compliance Initiative (BSCI), Global
the technology and resources needed to engineer
This renewal was a particularly impressive Security Validation (GSV) and Hazard Analysis
more sustainable processes and products.
achievement given the challenges of the and Critical Control Point (HACCP), as well as
Covid-19 pandemic and the need to work extra CarbonNeutral®.
Importantly, this is a collaborative effort, not
hard to maintain our momentum.
just within Hirdaramani but with our customers
Our successes at Mihila are a blueprint we’re
and across the apparel industry. By working with
Mihila began operating in 2008 as the world’s taking forward at all our facilities, with all new
cutting-edge partners, we are at the forefront of
first custom-built eco-friendly apparel factory. facilities being built eco-friendly and existing
new opportunities to develop and test solutions
Over the past 13 years, we’ve adopted new facilities being converted to follow the same
that help us put the future first.
technologies and ways of working that continue principles.
to drive down energy use, water consumption
and waste generation. For example, renewable
energy generation has skyrocketed from 22,000
kWh per year in 2018 to 1,181,482 kWh in 2021
as part of our rooftop solar power projects.
We also have invested in I-RECs for Mihila to
increase transparency and accountability around
renewable energy generated on site.
19
EMPOWER
OUR ASSOCIATES
4 Empower 20
Our 2025 People Ambitions 21
A Culture for Creating the Future 22
Wonders of Wellbeing 23
Equal Opportunities, Diversity and Inclusion 26
Covid-19 Response 29
20
Every day we make a heartfelt promise to our extended family. And as a family business, we As a result, we’re proud to be an employer of
people – to inspire, to uplift and to protect. By cultivate that tight-knit, supportive culture. We’re choice in the places we operate. We’re proud to
committing to ensuring happy, healthy, fulfilling committed to helping everyone at Hirdaramani have an ongoing, measurable impact on people’s
lives, we are putting their future first. grow professionally and as people, whether it’s wellbeing. And we’re proud to help people develop
through our internationally-recognised wellbeing rewarding careers that contribute to a sense of
program, our efforts to promote diversity and fulfilment and happiness.
Each garment we produce has a team of people inclusion, or our commitment to fostering a
behind it – people who support each other as an nurturing and welcoming working environment.
“When we look at a finished garment, we don’t just see a t-shirt or a pair of trousers. We see
the great minds that generated amazing designs, we see the skilled hands that created it and
we see the eagle eyes that ensured the highest quality,”
THEODORE GUNASEKARA, CEO – HIRDARAMANI INDUSTRIES CLUSTER
OUR 2025 PEOPLE AMBITIONS

100% 30% 70% 80%
of the Group involved in our
Wonders of Wellbeing (WOW)
of our leadership positions
held by women
of facility supervisory positions
held by women
of supervisors reached through our
Career Enhancement Program
program
60%
of executives reached through
our Career Enhancement
100%
of facilities with a Social & Labour
Convergence program (SLCP)
100%
of facilities with a Higg Facility Social
and Labour Module (FSLM) reaching
program reaching minimum score target minimum score target
21
A CULTURE CREATE THE FUTURE

and personal growth, wellbeing, entrepreneurship,
and inclusion. These include competitive salary
and benefit packages, comprehensive behaviour
FOR CREATING
We have a long history of using our entrepreneurial
policies, performance management processes and
spirit to create the future. It’s about recognising an
training opportunities. We’re constantly improving
opportunity, having an innovative vision, creating a
THE FUTURE
what we offer our associates, whether it’s on-site
solution and making it a reality.
facilities or post-Covid flexible working.
A 100-year heritage, more than 55,000 associates

As part of our strong commitment to supporting
our people and promoting this value-driven
MAKE THINGS BETTER
and a presence in six countries. What binds all this culture, we’re underpinning our approach with We always have the integrity to do the right thing.
together? Our strong culture. international standards. We’re implementing the As the business world becomes more transparent
Higg Facility Social and Labour Module (FSLM) and sustainable, it’s crucial we continue to make
In 2019, we carried out an in-depth exercise and Social & Labour Convergence program (SLCP), the world a better place.
engaging internal and external stakeholders to help with the aim of all facilities achieving the minimum
STRONGER TOGETHER
us understand the essence of what Hirdaramani score requirement or better by 2025. That way,
has always stood for. This led us to define five our culture becomes more than a way of life,
values that encapsulate the Hirdaramani culture: it becomes something that we hold ourselves
Hirdaramani is a family business with a vast
accountable to as a leading employer and extended
footprint. The business is built on our tradition of
To foster these values, we spearhead programs Hirdaramani family.
respecting relationships, collaborating like kin,
and implement systems that promote professional
and ensuring the outcomes benefit all. We may not
all be blood relatives, but we treat our suppliers,
employees, and customers like they’re one of us,
partnering with them on the journey to success.
KEEP IT MOVING
We never stand still. We value the ability to
think quickly and act fast. It’s about continuous
progress, staying on our toes and always moving
forward.
BELIEVE WE CAN
We have an insatiable hunger for achievement. We
face obstacles with hope and determination. We
turn the impossible into the possible. We value
those who never give up.
22
WONDERS OF WELLBEING
environmental – and includes a wide range of tools requirements and changing needs. We’re now
and initiatives to achieve measurable impact. And rolling out WOW in our operations in Ethiopia,
it’s not just about supporting our direct employees; starting with a research phase to create an
it also extends to their families and wider implementation roadmap.
communities because we recognise the broader
We started by defining what wellbeing means for influence and responsibility that we have in the We assess WOW’s performance in several ways,
all of us at Hirdaramani and came up with the idea places we operate. including employee surveys. Each business unit
of it being a life well-lived – a life that’s healthy, has an overall WOW score, which we monitor
wealthy and meaningful. WOW has now reached a point of maturity where monthly to identify opportunities for improvement.
it’s embedded in the business across Sri Lanka, We also do an annual Group-wide questionnaire
This then led to two more questions: How do we Vietnam and Bangladesh. It’s internationally that measures 120 wellbeing indicators. This year,
You often hear companies talk about ‘fostering actually help people live healthier, wealthier, and recognised by Harvard University’s T.H. Chan we began cross-tabulating this data with business
wellbeing’ among their people. At Hirdaramani, we more meaningful lives? And how do we do it in a School of Public Health; Shine, the Sustainability data to track the connection between wellbeing
definitely want to do that. But how do you make systematic, scalable, and data-driven way? and Health Initiative for NetPositive Enterprise; and business performance. Transparency is key
that more than a vanilla statement – and truly, as and public health advocates Swasti Health to WOW’s success, and we communicate results,
an employer, make a positive difference to people’s Our answer was Wonders of Wellbeing (WOW), Catalyst. As of 2021 approximately 21,708 people discuss challenges and are clear about ways we’re
lives? which is a holistic strategy that integrates across Hirdaramani have participated. Wellbeing improving. That way, employees know they can
wellbeing into the business’ agenda and culture. champions are drawn from across our operations provide honest feedback – and everyone is truly
That was the question that started an important It’s based around five key pillars – psychological, in Sri Lanka, Vietnam and Bangladesh, and engaged in this mission to help colleagues live
journey for us. relational, physiological, economic, and they’re spearheading projects that adapt to local better lives.
INSPIRED EMPLOYEE
HAPPY EMPLOYEE
PSYCHOLOGICAL RELATIONAL PHYSIOLOGICAL ECONOMIC ENVIRONMENTAL
Healthy environment at
Inner peace, mindfulness, spirituality Positive & nurturing relationships Overall physical health Financial security & stability macro & micro level
23
27,708 120+ 5
Hirdaramani people have
participated in WOW as
wellbeing indicators
assessed annually to
pillars ensure we promote a holistic
approach to wellbeing among staff, their
of 2021 measure our impact families and our wider communities
Recognised By
“WOW is built around the theme of a life well-lived. And as life evolves,
we continue to bring in new aspects to reflect what that means. As
demographics change, lifestyles change and people’s interpretation of a
life well-lived changes. We’re confident we have a baseline of tools and
resources to adapt to those changes, so our strategy meets both current
and future wellbeing needs.”
CHAMINDRA DASSANAYAKE, CHIEF HUMAN RESOURCES OFFICER – KNIT CLUSTER
24
250+ PREGNANT
MOTHERS AND 4000+
EMPLOYEES
Pregnancy care and parenting workshops are
regularly carried out to support expecting parents.
All factory canteens provide specialised meals
for pregnant mothers to support their health and
wellness.
200+ WELLBEING
CHAMPIONS TRAINED
EACH YEAR
Wellbeing champions play a crucial role in helping
to embed wellness into the organizational culture
by championing it every day at a factory level.
They take leadership and ownership in driving the

initiatives and programs that meet not just broad
wellness goals but also goals that may be localised
priorities and needs.
40% IMPROVEMENT IN
SAVINGS BEHAVIOURS
Financial literacy and positive financial habits are
a core element of the WOW program, with regular
workshops and education we guide our teams on
several aspects of their financial wellbeing.
Through these programs we have seen a 40%

improvement in savings behaviours amongst
employees.
25
EQUAL OPPORTUNITIES,
DIVERSITY AND INCLUSION
Hirdaramani has always been a highly inclusive Despite being an industry with a large female
organisation, a place where people of all genders, workforce the upward movement to middle
races and religions are stronger together. We have management and more importantly upper
always prided ourselves on the way we celebrate management among women remains low. A
merit, foster a supportive culture, and give people combination of social and cultural factors
the freedom to achieve their goals. contribute towards the low uptake of management
opportunities. While there are some small shifts in
Throughout our history, we are proud to have recent years this is an industry wide problem that
championed women in the workforce. We apparel manufacturers as a whole are working to
have always had a high proportion of female address.
employees, and we operate in smaller and more
rural communities where this empowerment With this in mind, 2021 marked a milestone: as part
has a tangible impact. As a result, we recognise of our Future First roadmap, we are taking a more
our important role in breaking traditional systematic approach to what has always been an
gender stereotypes, promoting female financial intrinsic way of life at Hirdaramani. This year, we
independence and helping to break cycles of conducted a benchmarking exercise, gathering and
violence and poverty. analysing baseline data to help us set targets and
develop robust reporting systems.
26
EMPLOYEES
36% Male
64% Female
LEADERSHIP BREAKDOWN
100%
87%
80% 75%
69%
“There is no limit for women at Hirdaramani, we are always motivated
60% to reach our potential and are prioritized as pioneering leaders.”
40% Having worked at Hirdaramani for 6 years, Thanh Nga always finds immense motivation in the
31% learning and development opportunities provided by the company, which drives her to push her
25%
boundaries, explore her creativity and reach her potential. She is especially proud of how she
20% 13% has been able to develop her communications and English speaking skills.
Since joining Hirdaramani, Thanh was able to achieve one of her main goals, which was to build
0%
a house for herself and her family. But one of the best things for her as a mother, is the work-life
Middle Manager Senior Manager Supervisor balance that has enabled her to be present for her child, something she did not have in previous
jobs. At Hirdaramani, there are great policies to support women in the workplace that consider
different stages such as pregnant women and women with younger children, she says.
Male Female
27
Parul’s story is one of true perseverance in the face of

hardship. Having lost her father at the age of 11, difficult
times hit her family, Parul however managed to finish
secondary school but had to stop her education to find
work.
She started her career at Hirdaramani as a Junior Quality

Checker, using the money she earned to support her
mother and younger sister. As she worked and progressed
she not only supported her sisters schooling but
supported herself to achieve a Bachelor’s Degree and also
managed the expenses for her wedding.
With her strong performance at work, by 2013 Parul was

promoted to Senior Quality Checker, she married in the
same year and life progressed well until her husband lost
his job. But with her income and her hard work she was
able to continue to support her family and her mother.
Today she is a Supervisor in the Quality Section, her
family is doing well and most importantly her daughter is
in grade 1 and getting a good education.
Having joined Hirdaramani in 2014 as a Merchandiser,

Thejani Amarasinghe, credits the company culture as a
key element that enabled her to balance her career with
her family life without compromising on the things that
are important to her.
“I am a proud mother of two little princesses, aged eight

and one and a half years. Being a working mother is a big
challenge to manage time and balance both home and
work, but with the support of my dearest husband and
the guidance of my managers at work, I have been very
successful in overcoming all those challenges.” Today
Thejani is an Assistant Manager – Merchandising and is
sitting for her MBA.
28
COVID-19 RESPONSE
When the COVID-19 pandemic hit, Hirdaramani manufacturing and donating testing swabs to meet
along with every other apparel manufacturer, unprecedented demand.
every industry, every person was faced with a
challenge none of us had ever faced before. Then we focused on how to safely get our people
More importantly, it was a challenge that was so back to work to support the economy. Significant
unforeseen that none of us had a plan. So we had planning and investment went into changing the
to learn and adapt quickly. way we work.
THE BELOW WAS IMPLEMENTED IN ALL FACILITIES ACROSS ALL COUNTRIES:
First, we focused on how we could help at a Our primary goal was to keep our employees safe
country level. Some facilities quickly adapted while continuing to contribute to the economies of • Shift structures were changed to allow for safety and social distancing
to producing PPE for frontline workers, often each country we operate in, where apparel exports
• Sewing machine lines were restructured and safety panels added
doing so with only a skeleton staff, in the hope of are crucial. We are proud to say that the hard
providing much needed assistance in tackling the work and commitment of our teams paid off with • Every employee was provided with masks
pandemic. We focused on procuring masks and minimal outbreaks due to robust safety measures
then manufacturing them to be donated while also and early detection and quarantine procedures. • Temperature checking & extensive sanitization measures were introduced at
entrances
• Transport was adapted for social distancing
• Canteen processes were changed for safety
SUPPORTING OUR EMPLOYEES
THROUGH THE PROCESS • Regular facility disinfection processes were established
• Stringent rules on mask wearing, social distancing and regular handwashing were
While we were successful in minimising
infections in our facilities, all employees who
implemented, with hand washing stations added around all facilities
did test positive were supported with medical • All goods and supplies coming into the facilities went through new checking and
advice, food ration deliveries and other
quarantine procedures
supplies during their quarantine period.
• There were continuous communications and education on Covid-19 and how to stay
For example, in Bangladesh we arranged doctor
safe to ensure employees kept focused on this
tele-consultations along with the delivery of
medication and dry rations to 45 employees • Regular weekly testing of employees
who tested positive, at a cost of BDT 500,000
• Paid leave was granted to all employees who tested positive / were required to
quarantine
29
SUPPORTING
INNOVATION TO GOOD HEALTH
SUPPORT OUR TEAMS FOR OUR PEOPLE
Difficult times often give rise to innovative
thinking and many innovations were introduced
AND OUR
by our factories to support employees to stay
healthy during this time. These included steam
COMMUNITIES
inhalation stations and hot water tumblers to Hirdaramani Bangladesh donated BDT
make it possible for employees to carry and USD 10,000 to support a dental clinic at
drink hot water as recommended by doctors. KEPZ BEPZA Hospital. The clinic offers
free dental care to approximately 70,000
people working in the Karnaphuli Export
Processing Zone, broadening access to this
essential treatment.
30
FAIRTRADE: EMPOWERING
WORKERS TO LEAD INITIATIVES
Fairtrade is one of the most recognised day-care centre offering free childcare. We
sustainability labels in the world. But what made the centre a reality in partnership with
actually happens behind the logo? clothing giant Patagonia, which supported us
in achieving Fairtrade certification. The free
Fairtrade certification signifies that people are childcare has made a huge difference to the
treated well, paid fairly, and have a healthy, extended Hirdaramani family, making it easier
safe work environment. Importantly, it also for parents to work and offer new opportunities
signifies that people have a voice. Because to their children.
Fairtrade gives workers direct control over
the funds distributed through the program, Our other Fairtrade factories are driving
meaning they can spearhead projects that initiatives that make a difference, too. For
matter to them. instance, at our factory in Kahathuduwa,
Sri Lanka, the Fairtrade Employee Council
At our US Fairtrade-certified Mihila factory, established a community development fund
the Fairtrade Employee Council decided that buys grocery bundles.
to use the initial funding to build and run a
Learn more about our Fairtrade partnership with Patagonia

Watch video
“If the Fairtrade day-care centre wasn’t there, I would be at home –

and I would never be able to achieve my aspirations. Being able to go
to work gives me the opportunity to educate my son. He is my greatest
hope, and if he does well in life and succeeds, the biggest wish of both
my husband and myself will come true.”
- UPEKSHA MADUSHANI, SEWING MACHINE OPERATOR
31
SUPPORT
COMMUNITIES
5 Support 32
Our 2025 Community Ambitions 33
Children and Education 34
Healthcare 35
Environment 36
32
True humanity lies in our willingness

to help each other. Health, education,
and equality are key drivers in our
A COMMUNITY RESPONSE have now supplied more than 9,300 pieces of
commitment as we put the future of our TO COVID-19 personal protective equipment, 1,100 test kits
and 300 hand sanitisers. And in Bangladesh,
people and communities first. we have provided food parcels to 150 people
When the pandemic hit at Hirdaramani, we enduring poverty during the pandemic as well
Stronger together. That’s one of Hirdaramani’s five mobilised to support our communities in any as donating PPE kits to frontline workers. The
core values – and it’s a key element of our ESG way possible. In Sri Lanka, we have donated effects of Covid-19 will continue to be felt, and
approach. After all, sustainability isn’t something more than 30,000 masks to government our ongoing health and education projects
any individual person or company can do on agencies and frontline workers along with PPE will help our communities deal with those
their own. It requires true collaboration to tackle kits, as well as building an extended patient ramifications for years to come.
complex problems and make things better in facility at Wethara Hospital. In Vietnam, we
people’s day-to-day lives.
That’s why our communities are so important to

us. Because we recognise the impact we have –
and our ability to make a difference – on everyone OUR 2025 COMMUNITY AMBITIONS
6,000 6,000 EQUAL
around us. We believe that a willingness to help
one another is essential to our collective humanity,
whether it’s in a time of crisis like a pandemic or
natural disaster, or it’s supporting long-term health
and education.
students impacted annually through education people impacted annually through community reforestation and biodiversity projects, reflecting
projects spearheaded by each factory health projects spearheaded by each factory the total physical footprint of our facilities
33
CHILDREN SUPPORTING NISHANTHA

AND CHILDREN IN KARIYAWASAM
EDUCATION
What’s the most effective way to build a better
VIETNAM
One of our key objectives was
SCHOLARSHIP
future for the planet and communities? At providing help to communities during
Hirdaramani, we believe it is about investing in the pandemic. Our factories in Vietnam
children and building them a better future. undertook some specific projects to
help the children in the surrounding
Since we were founded a century ago, we communities. This included:
have supported schools, children’s homes
- Building an outdoor playground at
and paediatric hospitals. We have provided
the Pham Van Dong Primary School
scholarships as well as time volunteering and
providing a safe space for over 600
direct aid. Underpinning every project is our aim
children Nishantha Kariyawasam, was a much
of helping children get the best start, the right
loved and dynamic CEO of Hirdaramani
education and opportunities to thrive. - Providing food supplies to the Thien Bangladesh. Joining Hirdaramani in
Binh Orphanage which cares for 170 2009 as the Manager – Merchandising
Every single Hirdaramani facility in every country children he soon rose up the ranks and was
has at least one (and often several) projects
- Donating mobile phones to 30 appointed CEO in 2020. Diagnosed
to support children and their education. As
children to enable them to study from with pancreatic cancer in early 2021,
we progress towards our 2025 goals, we’re
home Nishantha passed in September of the
implementing targets and robust measurement
same year.
systems to track our impact.
We established the “Nishantha
2,750 200
Kariyawasam Scholarship” in his
memory, to carry on his name and
potential through the children who will
be empowered through this program.
children given support for education children in homes supported Through the scholarship we support
the education of 10 children in the
USD 75,000+
CEPZ and KEPZ BEPZA schools with
30,000 BDT provided per month for
them.
spent on projects
34
HEALTHCARE
Access to healthcare can be a challenge in many
of our communities. From lack of awareness to a
shortage of clinics and underfunded hospitals, we
work hard to help address this. Every Hirdaramani
facility is involved in healthcare projects, which
include supporting local hospitals with donations,
equipment and building upgrades, as well as
sponsoring free clinics for common issues such as
eyecare.
As part of our Future First strategy, we’re

consolidating these efforts and setting Group-wide
targets so we can have a more profound impact on
healthcare outcomes in our communities.
10,000
PPE & masks donated
1,200
Covid test kits donated
70,000
people benefitted from dental clinic
35
ENVIRONMENT
Conserving the environment is a key pillar of
our Future First roadmap – and we’re ambitious
about the difference we can make every day,
at every stage of operations and with every
article of clothing. But protecting the planet is a
shared responsibility, especially in communities
experiencing first-hand the impact of climate
change on their health, wellbeing, and livelihoods.
We have long been involved in projects based on

needs and opportunities in different communities
– from clean water systems and renewable
energy to reforestation, coastal protection, and
organic farming. In our Future First roadmap, we
have renewed this commitment and are creating
mechanisms for all of Hirdaramani to work
together to have a lasting impact.
12,000+
trees planted
59
Farmers supported in organic farming
20,000+
People supported by clean water projects
36
HELPING FOSTER
A VIBRANT AND
EMPOWERED
COMMUNITY
Tea is a major crop in Sri Lanka, but many tea provide services, but would also be a hub
plantation communities are impoverished, with for the community. Hirdaramani and sports
children struggling to access quality education. footwear and apparel company Asics rose to
the challenge, helping build their new Centre
The T.E.A. (Training, Empowerment and for Children’s Empowerment. Affectionately
Awareness) Project seeks to change that called The Cloud, the centre in Kithulmulla,
and is working on the ground in these rural Galaha, features a preschool, library, free
communities. For many years, this British- healthy meals, a youth empowerment service
Sri Lankan charity has cooperated with rural and a work experience program, as well as
schools and orphanages to run enrichment and programs for adult community members.
teacher training programs.
As of 2021, more than 175 children have
But the T.E.A. Project had an even grander benefited from our contribution. “We are grateful to Hirdaramani for their support in building our dedicated
vision – a new centre that would not only
Centre for Children’s Empowerment – The Cloud. It creates opportunities
175 50 60
for realising the aspirations of disadvantaged children living in the tea-
producing communities. We have already observed a positive impact on
learning and the development of skills in the children who visit our Centre.”
children benefited from our free, healthy meals served adults and young people
contribution in 2021 daily at The Cloud participated in programs to J. ARUN JP, CEO, THE T.E.A. PROJECT
promote employment
37
SPECTRA CLEAN
We have invested in developing the infrastructure Access to clean water was a significant challenge
at the school establishing an IT Hub with for the people in the Xuan Tay Community in Dong
computers, multimedia facilities, laptops, tablets, Nai. We worked with local authorities to set up a
software and network capabilities. We also help clean water system powered by renewable energy
SCHOOL OF WATER
to pay the monthly salaries for the teachers at the to help provide the water needs to this community
school. of over 20,000 people.
AUTISM SYSTEM
In addition our teams also engage with the school At present the project provides Domestic Water
on a more personal level with days where our for over 50 households per day as well as Drinking
associates go in and spend time with the children, Water for over 400 households per day.
sponsor special meals and provide gifts and
PROJECT
donations of essentials.
SUPPORT AND IMPACT AUTISTIC CHILDREN

At present there is still very little support and few
AND ENABLE THEM TO LEAD A NORMAL LIFE
programs for the special education needed by
children on the spectrum, and we are proud to do
Hirdaramani Bangladesh has been assisting the
our part to help change this and have an impact on
Spectra School of Autism since 2014, our goal is
the 60 wonderful children currently at the school
to support the education and teaching that would
and more in the future.
enable these kids to achieve their true potential
and live positive, productive, and independent lives
as adults.
38
WORKING TOGETHER TO SAVE

SRI LANKA’S RAINFORESTS
2021 marked the completion of the ambitious reforested buffer zone between two large remnant
Hiniduma Bio-Link reforestation and biodiversity disturbed rainforest patches – the Sinharaja
project. UNESCO World Heritage Site and the Kanneliya
International Man and Biosphere Reserve.
Hiniduma in southwest Sri Lanka is an agricultural
community surrounded by one of the island’s few A remarkable 10,000 trees were planted and are
remaining rainforest ecosystems. In partnership maintained through Hirdaramani’s efforts and
with local communities, renowned clothing brand funding. In total, the Bio-Link project has covered
Patagonia and the Carbon Consulting Company, 31.2 acres, with the trees having a remarkable 93%
we worked to establish a biodiversity corridor and survival rate.
39
COASTAL MANGROVES PROJECT

IN QUANG NAM
Quang Nam a coastal province in Central Vietnam facility and nursery to cultivate the seedlings
has been strongly affected by severe erosion and over a period of 7 – 12 months. Stage one was
accretion due to both climate change and human successfully completed and now we are in the
activities. The severity of the problem has led to process of stage two, which includes planting
extensive research being conducted on the causes and extending the coastal mangroves along the
and several projects being actioned to help stop Thu Bon River. On completion of stage two, stage
the erosion. three will focus on engaging with the local primary
school to educate children on the project and
Hirdaramani Vietnam is involved in supporting a involve them in on-going tree planting in the hope
project to prevent sea erosion by creating coastal of ensuring the lasting impact and commitment to
mangroves in the province. The project involves 3 the project and coastal protection in the area in
stages. The first stage was to build a greenhouse general.
DRIVING ECO-INNOVATION & OCEAN CONSERVATION

In 2021 Hirdaramani entered into a partnership with Parley for the oceans. As part of this two-
pronged partnership, Hirdaramani will work to incorporate Parley Ocean Plastic® to its product
range and, the companies will work together on ocean conservation, eco-innovation, and beach
clean-up initiatives.
Through this collaboration, Hirdaramani hopes to create new opportunities for our existing
customer base while exploring opportunities with potential new customers as well who are keen to
use Parley Ocean Plastic® fabrics and accessories.
In addition, the work Parley does in terms of coastal cleanups and educating local youth and
communities is aligned with our own goals. Since November 2018, Parley Sri Lanka has collected
over 11,700lbs of marine waste, alongside the cleanups, each event is coupled with awareness
sessions and creative engagement activities. We look forward to partnering with Parley in these
initiatives as well.
40
TRUST
IN GOOD CHOICES
6 Trust 41
Our 2025 Ambitions 42
Sustainable & Ethical Product 43
Jeans ReDesign 44
Partnering for Good 45
Developing best practices with the SAC 46
Commitment to Standards 47
41
OUR 2025 AMBITIONS

We are committed to earning and
maintaining the trust people place in
us. From ensuring the highest quality
sustainable products to upholding the
highest governance and standards – we
work together with our stakeholders to
put the future first. 25%+ 10%
of suppliers Higg Facility Environmental
Module (FEM) verified
of suppliers Higg Facility Social
and Labour Module (FSLM) verified
80%
of all raw material used to be
“certified sustainable”
So many people put their trust in us. The
customers who trust us to produce high-quality
products in an ethical and sustainable way. The
associates who are the beating heart of the
Hirdaramani family. The industry that looks to us
to set an example. The communities we’re part of,
who trust us to make a positive difference.
We truly value that trust – and always strive to

live up to it. This means we’re steadfast in our
commitment to doing the right thing, even (and
especially) when it’s not the easy, sure or safe
choice. For us, doing the right thing means making
choices that put the future first – and being held
accountable for it.
Our Future First sustainability roadmap is aligned

with science based targets. A key part of our
approach is about reporting transparently against
those targets – and becoming not just a follower of
best practice, but a trend-setter. We’re therefore
working to implement governance, procurement
and business systems that enable this. And we’re
collaborating with organisations globally like the
Ellen Macarthur Foundation and Sustainable
Apparel Coalition who are pioneering in their
own right, as we take collective responsibility for
putting the future first.
42
SUSTAINABLE &
ETHICAL PRODUCT
Hirdaramani has long been at the vanguard when product design and product engineering. This
it comes to sustainable and ethical product includes analysing fabric decomposition rates and
innovation. Back in 2008, we opened the world’s applying finishes to accelerate them. It includes
first custom-built green apparel factory to making non-recyclable products biodegradable.
incorporate sustainability principles into the And it includes investing in more sustainable
manufacturing process. We have long upheld technologies and machinery to reduce our
Sri Lanka’s Garments without Guilt standards, environmental impact.
implementing these best practices at our facilities
globally. And in 2010, we manufactured the first As a result, we are at the cutting edge of bringing
collection of upcycled garments for Tesco’s F&F new materials, finishes, technologies and
brand, working with leading upcylist and designer processes to our customers and the industry.
Orsola de Castro. Recent successes include collaborating with the
Ellen Macarthur Foundation’s Jeans Redesign
Since then, we have researched, innovated, and Project to bring circular economy principles
refined our approach across the product lifecycle. to jeans manufacturing, partnering with Asics
For the past five years, we have had a sustainable- to create t-shirts from plastic recovered from
first approach at our product development oceans, and working with Patagonia to use only
centres, reflecting our deep focus on sustainable regenerative cotton in their products.
GARMENTS WITHOUT GUILT

Spearheaded by the Joint Apparel Association Forum (JAAF) Garments without Guilt pioneered
the concept of running a responsible business and prioritizing ethical labour practices, at a time,
when the world had just started talking about it.
To be able to carry the ‘Garments without Guilt’ label on their garments, the apparel makers have
to undergo a rigid certification process which guarantees workers rights and safety including that
the garments are free of child labour, free of forced labour, free of discrimination & sweatshop
practices and follows responsible environmental practices. Hirdaramani has remained committed
to the GWG standards and ideals since the inception of the program.
43
JEANS
transformative workshop with the Ellen MacArthur
Foundation for designers, academics, and analysts
to discuss our experiences.
REDESIGN
Delegates from the Foundation also had a two-day
tour of our Seethawaka washing plant and Mihila
and Kahathuduwa manufacturing facilities to see
how we’re leading when it comes to incorporating
Start with a staple – and you can redesign the sustainable manufacturing practices from the
future design stage upwards. For example, our washing
plants have drastically reduced water usage
Jeans have long been a fashion staple – but they by using low liquor ratio machines and ozone
also require incredible amounts of water and technology that enables waterless washing.
energy to produce compared with other garments.
And they’re notoriously difficult to recycle. In addition to using Green Screen Chemicals and
meeting ZHDC standards, we optimise chemical
Jeans are popular, resource-intensive, and largely usage using state-of-the-art machinery. Drying
unrecycled. That combination made them an processes have been substituted with laser
ideal focus for the Ellen MacArthur Foundation’s finishing, and 60% of our output water is recycled.
Make Fashion Circular Initiative. This led to the
launch of The Jeans Redesign project, which Over the past two years, we have refined our
aims to bring circular economy principles to jeans approach to jeans manufacturing, making it
manufacturing. progressively easier for our designers to adhere
to circular economy principles. They are now
As one of the largest global jean manufacturers, embedded in how we do things – and in our culture
Hirdaramani was one of the first to sign up to this and DNA. Our experiences and achievements have
ambitious global project back in 2019, and over fed into The Jeans Redesign guidelines, which were
the past two years, we’ve worked with the Ellen officially completed in June 2021.
MacArthur Foundation and other companies from
across the fashion value chain.
“The Jeans Redesign has shown what can be achieved when the industry is committed to making
The project’s first goal was to develop a set of
common and realistic guidelines for durability,
better choices that put the future first. Yes, there were challenges involved in incorporating circular
material health, recyclability, and traceability – economy principles into jeans design and manufacturing. But we have overcome them – and the
ensuring jeans last longer, are more recyclable and
manufactured in a more sustainable way. common guidelines will help the entire industry live up to the trust customers place in us.”
- PIYUMI PERERA, HEAD OF DESIGN
In 2019, we produced our first batch of jeans in
accordance with draft guidelines. We then hosted a
44
PARTNERING
FOR GOOD
At Hirdaramani, we understand that true change – and, more importantly, sustainable change – comes
from collaboration. From sharing ideas, experiences, data and goals. And from holding each other
accountable for progress.
This change and this collaboration need to involve the entire value chain, which is why we work closely
with our customers, partners and even our competitors to put the future first. As leading apparel
manufacturers, we recognise our obligation to lead the way and set an example, forging a path so smaller
organisations can learn and follow. We are proud to be part of industry bodies, projects and programs that
help foster a more sustainable fashion and apparel industry.
45
DEVELOPING BEST PRACTICES

WITH THE SUSTAINABLE
APPAREL COALITION
Hirdaramani is proud to be an initial member of the for manufacturers. Our Mihila and Kahathaduwa
Sustainable Apparel Coalition (SAC). The SAC is a facilities were involved in developing both the
prime example of what can be achieved when an Facility Environment Module (FEM) and Facility
industry is united in an ambition to give more than Social and Labour Module (FSLM), with our
it takes – to people and the planet. experiences as a green factory pioneer playing
an important role in the process. We also learned
Building the Higg Index from other participants as we discovered ways
The Higg Index is a suite of tools for the to improve processes and policies. It was a true
standardised measurement of value chain collaboration that reflects how the industry must
sustainability. The SAC created it as a way of work to make measurable progress.
measuring sustainability data at every point across
brands, retailers and manufacturers. From the Today, we are implementing the Higg Index FEM
beginning, SAC focused on developing something and FSLM modules across all our facilities. This
practical, which is where organisations like gives us unified sustainability data and allows us
Hirdaramani came in. to collaborate with many of our customers who
have also adopted the Higg Index.
We worked with the SAC to test and refine Higg
Index modules so they were reliable and practical
“By being members of multi sector initiatives such as the Sustainable

Apparel Coalition and the Social and Labor Convergence program, we
have been able to positively influence policy creation and implementation
as well as have the opportunity to collaborate with all related stakeholders
to create a more sustainable footprint.”
- NIKHIL HIRDARAMANI, DIRECTOR HIRDARAMANI GROUP
46
COMMITMENT
TO STANDARDS
As part of our commitment to earning and
maintaining the trust people place in us, we uphold
the highest governance and standards. From
global certifications to industry best practices and
regional guidelines, we pride ourselves on setting
an example for what can be achieved when putting
the future first.
47
www.hirdaramani.com
48

Sustainability Report 2021

Uploaded by

Copyright:

Available Formats

Sustainability Report 2021

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Sustainability Report 2021

Uploaded by

Copyright:

Available Formats

PUTTING THE FUTURE FIRST.

2021 SUSTAINABILITY REPORT

ABOUT THIS REPORT

The report also sets out our sustainability goals

Our 2025 People Ambitions

2 Our Approach to Sustainability

Led by Our Values 5 Wonders of Wellbeing 23

Materiality Assessment 5 Equal Opportunities, Diversity and Inclusion 26

UN Sustainable Development Agenda  6 Covid-19 Response 29

Alignment with the Global ESG Agenda 7 5 Support 32

Putting the Future First 8 Our 2025 Community Ambitions

Pillars of Sustainability 9 Children and Education 34

Our Ambitions 10 Healthcare 35

Our 2025 Environment Ambitions 12 6 Trust 41

Energy 13 Our 2025 Ambitions 42

The Road to Net Zero 14 Sustainable & Ethical Product 43

Water 15 Jeans ReDesign 44

The HIGG Index 17 Developing best practices with the SAC 46

Chemical Management 18 Commitment to Standards 47

MESSAGE FROM THE BOARD

Launched our first

LED BY OUR VALUES

ALIGNMENT WITH THE

CONSERVE EMPOWER SUPPORT TRUST

OUR 2025 AMBITIONS

science based target initiative consumption

Our 2025 Environment Ambitions 12

The Road to Net Zero 14

The HIGG Index 17

Sustainable Manufacturing Technologies 19

OUR 2025 ENVIRONMENT AMBITIONS

science based target initiative consumption

OUR 2021 PROGRESS

OUR 2025 ENERGY AMBITIONS

100% 20% 50%+ 100%

THE ROAD TO NET ZERO

Our on-site renewable power generation capacity

OUR 2021 PROGRESS

As part of our 2025 goals, we’re on track to

OUR 2025 WATER AMBITIONS

50% 50%+ 10% 10%

Zero waste to landfill is our ambitious goal as we

OUR 2021 PROGRESS

We have implemented mechanisms for accurately

OUR 2025 WASTE AMBITIONS

OUR 2021 PROGRESS

As of the end of 2021, we have achieved Higg

OUR 2025 HIGG AMBITIONS

Read more about our partnership with SAC and the

CHEMICAL OUR 2021 PROGRESS

MANAGEMENT ‘Zero supplier Foundation Level’ and earned the

Hirdaramani has long spearheaded an ambitious

OUR 2025 CHEMICAL

To ensure in-house use of safer chemicals the

Our washing plants also adhere to ZDHC

Our 2025 People Ambitions 21

A Culture for Creating the Future 22

Equal Opportunities, Diversity and Inclusion 26

OUR 2025 PEOPLE AMBITIONS

UN Sustainable Development Agenda 6 Covid-19 Response 29