LTP Annual Sustainability Performance Report 2021

15

HOW WE ANCHOR SUSTAINABILITY

THE JOURNEY TOWARDS OUR 4 SUSTAINABILITY COMMITMENTS

2021 RESULTS

2022 TARGETS

RISK AND COMPLIANCE

EMBRACE DURABILITY & CIRCULARITY

Priority topic

2022 Target

Committed Entity

Production waste management & disposal % of leftover textiles technically recyclable Ratio of 3D samples versus physical samples

The widely acknowledged need for scalable and innovative circularity solutions is disrupting our traditional role as a manufacturer. It is clear to us that we must play a larger role in the selection of materials and increasingly challenge those product designs which do not enable the recycling of products parts or repair and/ or reuse of products. Circularity is thus opening new areas for collaboration along the supply chain between manufacturers like us and material suppliers and brands on the design and construction processes as well as the material selection and substitution processes. The main challenges we have identified for those collaborative projects to be successful are: • The lack of transparency fostered by the fear of losing competitive advantage • The cost associated with the additional time for product development • The lack of clarity about where this new responsibility lies, and who is going to cover additional costs

The identified priority topics under this commitment require a high degree of innovation and testing from our side. They will be integrated into the R&D and testing centers in our regional offices. We also need to focus on waste reduction and recycling of waste in our operation which is pre- consumer waste. We do not include in our 2022-2025 strategy handling of post-consumer waste nor systemic take-back schemes. To be scalable, those initiatives must be implemented locally — where the product is located after distribution.

100%

LTP Group – all countries

5%

LTP Furniture – LT LTP Garment – all countries

Ratio of 3D samples versus physical samples

25%

Product manufacturing for circularity 1) Number of projects with solution for disassembly Sustainable material substitution Number of projects with sustainable material as an alternative

5

LTP Furniture – LT

5

LTP Group – all countries

Note: 1) Manufacturing for Circularity is the manufacturing of a product to facilitate integration of sustainable raw materials, the recovery of industrial waste and the EOL recycling, upcycling or downcycling

LTP Group 2021 Sustainability performance report

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