Read about LTP's commitment to Sustainability and see our data and results from 2023
2022
Sustainability Performance Report 2023
1
Content
LTP AT A GLANCE - UNLOCK TRANSPARENCY
SOCIAL – CARE FOR PEOPLE Our approach..................................................................................................................................... 35 Towards diversity, inclusion & equity..................................................................................... 36 Diversity........................................................................................................................................... 37 Gender Pay Ratio........................................................................................................................ 38 Employees...................................................................................................................................... 39 Living Wages................................................................................................................................. 40 Health & safety.................................................................................................................................. 42 Lost Time Injury Frequency.................................................................................................... 43 GOVERNANCE - RESPONSIBLE BUSINESS CONDUCT Governance - Responsible Business Conduct..................................................................... 44 Compliance Program.................................................................................................................. 45 Whistle blower hotline............................................................................................................... 46 Governance & Reports............................................................................................................... 47 Code of Conduct........................................................................................................................... 48 Protection of human and labor rights................................................................................ 50 Responsible business partner management................................................................... 51 Responsible supplier management...................................................................................... 52
Letter from Executive Management.............................................................................. 4 Sustainability at a glance - Global overview............................................................... 5 Our strategy................................................................................................................................6 Stakeholder engagement.................................................................................................... 9 Governance................................................................................................................................. 10 We are LTP ................................................................................................................................. 11 Business model.................................................................................................................... 11 We are LTP - Furniture.........................................................................................................13 Business & Product segments.................................................................................... 13 Production facilities & Performance Highlights 2023.................................... 14 Certifications....................................................................................................................... 15 We are LTP - Garment Business & Product segments................................................................................... 16 Production facilities & Performance Highlights 2023................................... 17 Certifications...................................................................................................................... 18
ENVIRONMENT – FIGHT FOR CLIMATE
Environment - Fight for Climate....................................................................................... 20 Energy use & mix...................................................................................................................... 21 GHG Emissions........................................................................................................................... 23 Carbon Calculator..................................................................................................................... 25 Water management................................................................................................................ 26 Waste management................................................................................................................ 27 Materials, Durability & Circularity..................................................................................... 28 3D samples vs. physical samples................................................................................. 29 Furniture - FSC certified wood & cardboard......................................................... 30 Garment - Plastic bags with 50 % recycled content......................................... 31 Chemical Management..................................................................................................... 32 Design for disassembly & surplus stock................................................................... 33
SUSTAINABILITY DATA COLLECTION
Sustainability data collection....................................................................................................... 53 Accounting practices.................................................................................................................. 54 Management & board statement.............................................................................................. 58 Appendix 1 - Fact box regarding FSLM (Garment).......................................................... 59 Appendix 2 - Fact box regarding Amfori BSCI (Garment)............................................. 60 Appendix 3 - Characteristics own employees by country............................................. 61
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Unlock Transparency
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Letter from Executive Management
Successfully navigating the complexities of 2023 among geopolitical and economic turbulence indeed requires resilience and adaptability. Despite these challenges, the enduring importance of sustainable business practices remains a priority for LTP Group. We continuously enhance our sustainability approach to effectively manage the environmental and social impacts throughout our value chain, while also addressing the needs of our stakeholders. LTP Group will continue to drive positive social and environmental change in the areas where we operate. This commitment aligns with our acknowledgment of the textile industry's significant environmental impact. Our sustainability report for 2023 remains consistent with the materiality assessment we conducted in 2021. The format of our ESG reporting will evolve as we adapt to the EU Corporate Sustainability Reporting Directive (CSRD) coming into effect. We strive to provide our stakeholders with comprehensive financial and non-financial information that adds value and nurtures trust.
Jeannett Hvidkjær
Henrik Holmgaard Olsson
Rasmus Helt Poulsen
However, we recognize that achieving our sustainability goals requires collaboration. Engagement from employees, customers, suppliers, and business partners is essential. Central to our strategy is our unwavering dedication to sound governance and integrity. We recognize that trust forms the cornerstone of our connections with stakeholders, employees, customers, and communities. We persist in strengthening and maintaining stringent ethical standards, transparent business practices, and anti-corruption approaches across every facet of our activities. Materials are the largest contributor to environmental impact in our value chain, and while material sourcing is largely influenced by customer preferences, we take responsibility by ensuring transparency in data for customers to make informed decisions towards more sustainable solutions. Together, through partnership, we aim to address sustainability challenges and drive positive change in the textile industry and beyond.
This year we progressed on our sustainability journey and are pleased to be able to present improvements in most of our ESG areas within our 4 commitments: Unlock transparency, Fight for Climate, Care for People and Governance Responsible Business Conduct.
We want to thank all our colleagues, customers and partners for their efforts. There is still a lot to do, but with the progress so far, we are confident that together we will play a key role in advancing the sustainability goals.
We invite you to explore our report and learn more about our achievements across ESG in 2023.
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Sustainability at a glance - Global overview
2022 data
2023 data
MATERIALS LS -Durability & Circularity ALS
SOCIAL
GOVERNANCE
ENVIRONMENT
-Fight for Climate
-Care for People
-Responsible Business Conduct
Gender diversity management 78.3 % 78.0 %
Whistle blower hotline Training material in development
Total renewable energy share 5.1 % 11.3 % Target 2030: To be defined in 2024
FSC wood (Furniture, LT) 19 % 41 % Target 2025: 50 %
to be rolled out in 2024 100 % employees trained
Scope 1 621 tCO2e
Reports 5 5 Target 2025: 3-5 reports
FSC cardboard (Furniture, LT) 60 % 85 % Target 2025: 90 %
Turnover white collar 5.5 % 10.4 % Target 2025: less than 10 %
521 tCO2e Target 2030: To be defined in 2024 Scope 2 market based 2,115 tCO2e 1,488 tCO2e Target 2030: 0 CO2e Waste recycling 25 % 21 % Target 2025: 30 %
Supplier management Revised and ready for global implementation 2024 Target 2025: 90 % direct suppliers have signed CoC and compliance declaration Business partner management Revised and ready for global implementation 2024 Target 2025: 100 % business partners have signed revised CoC
Turnover blue collar 29.7 % 28.3 % Target 2025: less than 20 %
Design for disassembly (Furniture, LT) 5 5 Target 2025: 10 Plastic bags with recycled content (Garment, global) 52 % 44 % Target 2025: 70 %
Lost Time Injury Frequency 1.9 1.1 Target 2025: less than 1
Water management 17,840 m3 Target 2030: 12,000 m3
19,007 m3
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Our Strategy
Our Four Commitments
UNLOCK TRANSPARENCY We commit to open communication and demonstrate results to all stakeholders.
Our 2025 strategy is built upon the materiality assessment conducted in 2021. Since then, both the regulatory environment and our customers' sustainability expectations have evolved significantly. In 2024, we eagerly anticipate collaborating with our stakeholders to conduct a fresh, comprehensive double materiality assessment and formulate our updated sustainability strategy. As a step towards aligning with forthcoming reporting requirements, this report has already interpreted our four sustainability commitments -"Fight for climate," "Embrace durability & circularity," "Care for people," and "Unlock Transparency" - in terms of Environmental (E), Social (S), and Governance (G) considerations.
CARE FOR PEOPLE It is essential for LTP Group to provide opportunities for our employees to develop their skills and continuously contribute to improve working, social and living conditions. We are committed to a healthy and safe work environment in all factories. We also commit to involve business partners to meet high environmental and social industry standards. FIGHT FOR CLIMATE Given the urgency of the climate crisis we will invest in renewable energy. We are committed to disclose our scope 1 and 2 emissions, and are working to disclose our scope 3 emissions. As a manufacturer LTP takes the responsibility to collaborate with brands and suppliers on materials substitution, product development and innovation for design for durability and design for disassembly. We also commit to minimize production waste and optimize recycling of waste. GOVERNANCE - RESPONSIBLE BUSINESS CONDUCT LTP Group, operating in multiple high-risk countries, mitigates human rights and corruption risks by training employees, having business partners & suppliers sign a Code of Conduct, and conducting due diligence. Our ethical standards encompass respect for human rights, labor rights, and a commitment to a safe working environment, opposing all forms of violence, forced labor, child labor, and discrimination.
Open communication and demonstration of results
Unlock Transparency
Fight for Climate
Disclosure of our emissions, focus to energy, materials, durability & circularity
Governance - Responsible Business Conduct Includes human & labor rights, code of conduct and whistleblower hotline
Care for People
Focus to our valued employees, including working, social and living conditions
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Our Strategy
Sustainability ladder
Continuously improving
We still work towards continuous improvement as depicted in our sustainability ladder.
Key performance indicators and measurable targets to track progress on strategic priorities
Performance based metrics
Step 1 “Compliance and corporate values” is the base of the ladder since it is a foundation which is essential to successfully build sustainability initiatives and monitor risk – read more in the section “Governance – Unlock transparency”. Step 2 “Certifications” verify our sustainability progress. Upholding certifications provides us with continuous expertise from third party organizations specialized in best practices within different areas of Environment, Social and Governance. Step 3 “Strategic priorities” and Step 4 “Performance based metrics” defined by end 2025 were the result of the 2021 materiality assessment and included topics as “Green House Gas emissions”, “Materials, durability and circularity”, “Living wages”, ”Health & safety at work”, and “Protection of human & labor rights” – topics you can read more about throughout this report.
4
Focus areas where LTP Group has a high ambition level and an ability to drive change
Strategic priorities
3
Certifications
Third party certificates at product and factory level, which attest of the sustainability level and efforts
2
Compliance & Corporate Values
Code of Conduct, core values, internal compliance policies and processes
1
7
Our Strategy
Sustainability Outlook In March 2022, the EU strategy for sustainable and circular textiles was adopted, which implements the commitments of the European Green Deal, the Circular Economy Action Plan and the European industrial strategy. For LTP Group, this signifies a progression towards upcoming legislation. First upcoming is Corporate Sustainability Reporting Directive (CSRD) followed by Corporate Sustainability Due Diligence Directive (CSDDD) and Eco-design for Sustainable Products Regulation (ESPR). Accordingly, we are proactively preparing for the future, ensuring timely compliance. CSRD was adopted in July 2023, and we have already initiated planning for its implementation, anticipating stakeholder engagement in a double materiality assessment.
While CSDDD awaits formal adoption, ESPR for textiles remains to be defined, a process in which we participate in though our engagement with Danish Fashion and Textile (DM&T).
As we prepare, we remain actively involved with our customers to ensure that we meet and exceed their expectations and needs. In 2024, within the Garment Division, we will focus on obtaining the Global Recycling Standard certification – GRS certification – starting in Ho Chi Minh, Vietnam, and expanding throughout Europe. This initiative will enable our customers to have their products GRS certified, providing them with more sustainable options. Maintaining our certifications and commitments is a significant achievement, especially as the requirements continue to evolve. In 2023, we achieved our first FSLM Higg Index (Higg Facility Social & Labor Module) verification through an assessment in Ho Chi Minh, Vietnam. Furthermore, our production facility in Saltillo, Mexico, obtained the FSC certification and initiated preparations for ISO 9001 certification in 2024.
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Stakeholder Engagement
LTP Group stakeholders are, among others, employees, management, Board of Directors, suppliers, customers, industry associations, certification bodies, industry experts and authorities. We include stakeholder feedback in our work on materiality, strategy, target setting and reporting. Engagement with our key stakeholders takes place in our daily operations and in formalized settings. The outcome of the stakeholder engagement has given us nine priorities which is coupled into our 4 commitments.
LTP Group 9 material topics
Relevant UN SDGs*
Sustainability commitments
Injuries & accidents
14
Occupational health
15
Fair working conditions
16
CARE FOR PEOPLE
Fair wages & benefits
17
Recycled, recyclable & durable material sourcing
In 2023 we engaged stakeholders across the following key areas:
1
Sustainable product development & innovation for Design for Circularity* Production waste management & disposal
2
EMBRACE DURABILITY & CIRCULARITY
Addressing climate change is a key priority for LTP, and we are taking proactive steps to mitigate our environmental impact. One significant aspect of our approach involves entering into Power Purchase Agreements (PPAs) to transition towards renewable energy sources. By partnering with renewable energy providers, we aim to reduce our carbon footprint and contribute to a more sustainable future. To further our commitment to carbon reduction, we have implemented a carbon calculator tool within our Furniture Division. This tool allows us to measure and monitor carbon emissions from manufactured products. By understanding the carbon footprint of products , we can identify areas for improvement and implement targeted strategies to minimize carbon emissions. Transparency is integral to our sustainability efforts, and we are committed to fostering open communication with our customers and stakeholders. Our sustainability reporting processes enable us to share information on our sustainability initiatives, performance, and goals with customers and stakeholders. Through collaborative efforts, we aim to drive positive change throughout our supply chain and uphold the highest standards of ethical and sustainable practices.
3
Renewable energy sourcing (electricity & heating) Energy efficiency (electricity & heating)
4
5
FIGHT FOR CLIMATE
*) Identified by looking at overlaps at the target level based on the GRI UN SDGs linkage resource
Policies Our Global Code of Conduct is the foundation of our commitment to ethical excellence and provides the guidelines defining how we do business the right and responsible way. Our Sustainability Engagement Policy describes our commitments and continuous improvement focus within climate & environment, human & labor rights and anti-corruption.
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Governance
The oversight of sustainability within LTP Group is firmly rooted in our Board of Directors. With the introduction of new EU legislation on sustainability reporting, the mandate of boards and audit committees is expanding to include Environmental, Social, and Governance (ESG) matters. The Board of Directors play a pivotal role in fostering robust corporate governance and policies, by actively engaging in oversight of risks, internal controls, corporate reporting, and audit functions. Empowered by the Board of Directors, the sustainability Steering Committee, comprising executive management and the Director of Sustainability & Compliance, establishes strategic direction and priorities, overseeing the integration and execution of the Sustainability strategy. The sustainability Steering Committee is responsible for approving policies and action plans. The Sustainability Management Committee represented by key-stakeholders, is tasked with developing, anchoring, and executing policies, targets and action plans. They closely monitor progress and address potential challenges, ensuring that each member comprehends and contribute to sustainability impacts. By providing insight into local conditions and posing pertinent questions, they ensure organizational preparedness.
LTP Furniture Production
Board of Directors
Steering Committee
Management Committee
Audit & Certifications Committee
Members of the Sustainability Audit & Certifications Committee support customer audits and maintain sustainability certifications in close collaboration with stakeholders at certified and/or audited sites.
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We are LTP
Business Model
LTP Group is composed of a Garment division and a Furniture division. The strategic and shared functions are located in Denmark.
In a field so rapidly changing as the apparel and furniture industry, the only way to get by, is by always being one step ahead. And so, we have made challenges our specialty. Founded in the 1980s, today LTP has grown into a global production partner for forward-thinking garment and furniture brands. We have made it our mission to care – for our customers, business partners, employees, and the environment. We challenge the standards of yesterday and keep raising the bar for responsible and transparent production by actively developing reporting on our work within the four areas of Unlock Transparency , Environment - Fight for climate, Social - Care for people, Governance - Responsible business conduct. We take pride in our skilled and reliable employees who are committed to helping our customers’ brands fl ourish in an ever-changing market. From our base in Copenhagen, LTP is a leading manufacturer, employing more than 2,200 people in 12 fully-owned factories across six countries. Powered by passion, we partner up with ambitious brands that are also eager to innovate and lead the way forward. LTP Group manufacture high quality iconic furniture and high-performance garments. Our pledge is to enhance positive impact and minimize any negative social and environmental impact throughout our value chain. The commitment spans from raw material production, processing and sourcing to our own production and distribution and includes the usage- phase and waste management of our sold products.
Our business model / value chain from raw material production to end of life:
Waste Management
Raw Materials
Processing of raw materials
Manufacturer of Furniture & Garments
Brand / Design Company
Distribution
Shops / Customers
"Being a link in the supply chain, between brands and suppliers, LTP works closely with customers, suppliers and business partners to create more sustainable solutions"
LTP - Consciously crafted.
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EUR +114 M. In revenue
12 Fully-owned factories across 6 countries
HQ, Copenhagen
50/50 Diversity in executive management split.
2,200 Employees worldwide
>3,400,000 Items in output
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We are LTP - Furniture
Business & product segments
LTP Furniture provides a comprehensive supply chain solution including full assembly, packaging, and logistics of upholstery chairs and sofas tailored to high-end design driven retail or contract brands with a global distribution setup.
ACCESSORIES & ALTERNATIVE COVERS
UPHOLSTERY CHAIRS
ACOUSTIC PANELS & DIVIDERS
SOFA & SOFT SEATING
BED & SOFA COVERS
PUBLIC SEATING & TEXTILE SOLUTIONS
In 2022, preparations were made for near shoring to North America culminating in the establishment of a fully operational local facility in Mexico. This includes setting up a local supply chain sourcing components, resulting in reduced carbon footprint for delivered products compared to shipping containers from Europe.
In the European market we operate from our four factories in Lithuania. As part of our vertical integration strategy, we expanded with the addition of new facilities. Firstly, we established an in-house wood frame facility in 2022, enabling the production of FSC certified products. Subsequently, we incorporated a foam facility into our operations in 2023. The vertical integration strategy will ensure competitiveness and a continued focus on an even stronger sustainable production platform.
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We are LTP - Furniture
Production sites 2023
Performance highlights 2023
2022 data
2023 data
SOCIAL
MATERI -Durability & Circularity ALS
ENVIRONMENT
LTP Sofa & Chair Kedainiai, LT
LTP Wood Factory Kedainiai, LT
LTP Foam Factory Kedainiai, LT
-Fight for Climate
-Care for People
12,177
600
1,480
Gender diversity management 67.6 % 60.7 % Gender diversity employees 79.0 % 76.4 %
Total renewable energy share 2.2 % 15.9 %
FSC wood (Furniture, LT) 19 % 41 %
2023 Warehouse: 5,000
1998
2022
Scope 1 450 tCO2e
FSC cardboard (Furniture, LT) 60 % 85 %
323 tCO2e
Turnover white collar 4.8 % 10.6 %
Scope 2 market based 719 tCO2e
502 tCO2e
Design for disassembly (Furniture, LT) 5 5
Turnover blue collar 20.3 % 28.2 %
Waste recycling 35 % 33 %
LTP Mexico Saltillo, MX
LTP Bed & Cover Silale, LT
Water management 3,648 m3 5,157 m3
LTIF 9.7
3,500
4,858
3.3
2021
2021
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Certifications - Furniture
Fact box regarding Certifications & Commitments - FURNITURE
LTP Group has diligently worked with different certifications and commitments to create value for our customers, while caring for people and planet.
Certificate
Focus Area
Environment Social
Environment Material
Environment, OHS, Social, Quality
Environment
Quality
Environment management system at production facility
Quality management system at production facility
Scope
Material Production Facility
Production Facility
Material Product safety
Foam Factory
X
X
Wood Factory
X
X
X
Sofa & Chair Kedainiai
X
X
X
X
X
Bed & Cover Silale
X
X
X
X
X
Mexico
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We are LTP - Garment
Business & product segments
LTP Garment operates in 6 product categories: Active Sport, Cycling, Outdoor, Athleisure, Urban Performance and Sustainable Fashion & Lifestyle.
URBAN PERFORMANCE
OUTDOOR
CYCLING
ACTIVE SPORT
ATHLEISURE
ORGANIC & LIFESTYLE APPAREL
LTP Garment serves customers from two Innovation Centers, one in Europe and one in Asia. The European Innovation and cutting Center is situated in Kaunas, Lithuania with a local management team overseeing 3 manufacturing service sites in Ukraine and Romania.
As a comprehensive service provider, LTP facilitates customers from initial concept to bulk production. Our proficient product development team based in Lithuania incorporates state-of- the-art technologies, such as 3D prototyping. Supported by an extensive network of fabric and trim suppliers, along with an in-house fabric library, we ensure access to premium-quality and sustainable materials for each client. With a wide range of options available, we possess the capability to realize your vision with precision and ingenuity.
In total the European manufacturing set up counts +800 employees and 54 3rd party business partners.
The Innovation Center in Asia is situated in Ho Chi Minh, Vietnam and count +800 employees and 17 3rd party business partners.
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We are LTP - Garment
Performance highlights 2023
Production sites 2023
Garment
2022 data
2023 data
MATERI -Durability & Circularity ALS
SOCIAL
ENVIRONMENT
LTP Vietnam Company Ltd, HCMC
LTP UAB Kaunas, LT
LTP Ukraine LLC Lviv, Ukraine
LTP Balkan Botosani, Romania
-Fight for Climate
-Care for People
14,000
9,429
3,585
2,247
Gender diversity management 86.8 % 87.9 % Gender diversity employees 85.2 % 87.1 %
Total renewable energy share 7.9 % 7.3 %
Plastic bags with recycled content (Garment, global) 52 % 44 %
2008
1995
2017
2022
Scope 1 171 tCO2e
198 tCO2e
Turnover white collar 5.6 % 10.0 %
Scope 2 market based 1,392 tCO2e
982 tCO2e
Turnover blue collar 32.7 % 28.5 %
Waste recycling 33 % 35 %
LTP Balkan Harlau, Romania
Orlit, Belarus
Belvit, Belarus
(Phase-out)
Water management 14,166 m3
(Phase-out)
LTIF 0.0
13,823 m3
300
2,834
2,087
0.5
2022
2020
2008
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Certifications - Garment
Fact box regarding Certifications & Commitments - GARMENT
LTP Group has diligently worked with different certifications and commitments to create value for our customers, while caring for people and planet.
Certificate
Focus Area
Chemicals, OHS
Organic materials
Social
Social (FSLM) Environment (FEM)
BSCI: Business Social Compliance Initiative
Scope
Production Facility
Materials
Production Facility
Production Facility
Production Facility
Kaunas, Lithuania
X
X
X
Lviv, Ukraine
X
X
X
X
Botosani, Romania Harlau, Romania Belvit, Belarus Orlit, Belarus
X
X
X
X
X
X
X
X
X *
Ho Chi Minh, VN
X
X
X
* FSLM verified 2023
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Environment - Fight for Climate
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Environment - Fight for Climate
The Furniture and Garment Divisions produce durable, long-lasting products in the form of iconic furniture and high-performance garments.
Our goal is to source renewable electricity at all production sites. We have therefore been exploring our options in the countries where we operate and have faced challenges. For instance, in Vietnam, legislation permit solar panels on the roof of the building where the electricity is consumed, but prohibits connection to the grid to supply excess electricity. Power Purchase Agreements (PPAs) typically entail a 10-year commitment to use a specified amount of electricity. Given the fluctuating market demand for both our Furniture and Garment Divisions, it is crucial to consider both market conditions and energy efficiency opportunities when strategizing for a fossil- free future.
Main components in the production of furniture are wood, metal, plastic, foam and fabric, whereas for garments it is fabric and trims. Resent years, huge attention has been paid to the environmental impact of use of fabrics, with reasoning. The growing or extraction of raw materials and processing for fabrics require large amounts of water and chemicals. The majority of the environmental impact from fabrics and other components are concentrated within our value chain (see our Business model on page 11). We see it as our obligation to do as much as possible to reduce the environmental impact. Both we and our customers possess the power to demand wood, fabrics, trims and other components with lower environmental impact. Consequently, we are collaborating with our customers to address the complexities of sourcing more inherently sustainable materials, improving our waste sorting processes, exploring recycling opportunities, and, endeavoring to raise consumer awareness to the greatest extent possible as brand manufacturer.
LTP Group has a four-step strategy to reduce our energy use and CO2 emissions:
Reduce use of non-renewable fuels
Minimize carbon emissions from production sites through energy efficiency
Acquire Guarantees of Origin (GO‘s) or Renewable Energy Certificates (REC’s)
Enter into Power Purchase Agreements (PPA’s) in countries where we have production facilities in order to ensure additionality and the expansion of renewable energy production
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Energy use & mix
Our energy use is distributed as electricity use, heating and fuels for company cars:
Unit
2022
2023
Non-renewable energy
Fuel consumption from coal and coal products
MWh
0
0
Fuel consumption from crude oil and petroleum products
MWh
791
751
Fuel consumption from natural gas
MWh
2,255
2,062
Fuel consumption from other non-renewable sources
MWh
Consumption from nuclear products
MWh
0
0
Consumption of purchased or acquired electricity, heat, steam, and cooling from non-renewable sources
MWh
5,238
4,033
Total non-renewable energy consumption
MWh
8,283
6,846
Renewable energy
Fuel consumption from renewable sources (including biomass, biogas, non-fossil fuel waste, renewable hydrogen, etc.)
MWh
352
296
Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources
MWh
0
485
The consumption of self-generated non-fuel renewable energy
MWh
93
88
Total renewable energy consumption
MWh
445
869
Distribution of energy consumption
Total energy consumption
MWh
8,729
7,715
Share of renewable sources in total energy consumption
%
5.1
11.3
Share of non-renewable sources in total energy consumption
%
94.9
88.7
Share of renewable electricity
Renewable electricity
MWh
93
573
Non renewable electricity
MWh
5,201
3,996
Total
MWh
5,294
4,569
Share of renewable electricity
%
1.8
12.5
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Energy use & mix
Most of our heating requirements are currently met by non-renewable sources. Across our production sites in Lithuania, Ukraine, Romania, and Belarus, natural gas and LPG are used for heating purposes. However, in Belvit, Belarus biomass is used, in Silale, Lithuania, electrical heating pumps have been installed for production heating, while in Kedainiai, Lithuania, an electrical heating pump serves as an alternative to gas. No heating is utilized at our production sites in Ho Chi Minh, Vietnam and Saltillo, Mexico. Company vehicles, which facilitate employee commuting and inter-site transportation, primarily uses fuels from non-renewable sources. Adhering to our car policy, one hybrid car was included in the fleet in 2023. Electricity comes both from non-renewable sources and renewable sources. We have solar panels on the roof, covering approximately 10 % of the total electricity usage of our main production site in Kedainiai, Lithuania. Additionally, we acquire renewable electricity covered by guarantees of origin for approximately 55 % of the total electricity usage of our main production site in Kedainiai. Totalling 65 % renewable energy at our Furniture main production site in Kedainiai in 2023. Overall, we see a 13 % reduction in energy use, which is expected due to the reduced production compared to 2022. The use of non-renewable energy is reduced with 21 %, while the use of renewable energy has increased with 49 % resulting in improvement of the share of renewable sources from 5 % in 2022 to 11 % in 2023. LTP Group has entered into a Power Purchase Agreement with Green Genius supplying renewable electricity for our main production site in Kedainiai, Lithuania. The solar park became operational in February 2024.
5.1 % Share of renewable sources in total energy consumption
Energy consumption & mix 2022
5.1 %
Total energy consumption 8,729 MWh
94.9 %
94.9 % Share of non-renewable sources in total energy consumption
11.3 % Share of renewable sources in total energy consumption
Energy consumption & mix 2023
11.3 %
Total energy consumption 7,715 MWh
LTP Furniture commissioning part of a new 20,000 m2 solar park near Radviliškis, Lithuania
88.7 %
88.7 % Share of non-renewable sources in total energy consumption
22
GHG Emissions
Fact box regarding GHG emissions
The Intergovernmental Panel on Climate Change (IPCC) leaves no doubt about the link between the emission of greenhouse gasses and climate change, and it underlines the urgency of immediate action to keep temperature rises below 1.5 degrees Celsius to avoid serious negative repercussions for life on Earth.
So where does LTP Group’s greenhouse gas emissions come from?
Scope 1 are direct GHG emissions occurring from fuels used for company cars or at production sites owned or controlled by LTP Group.
Scope 2 are indirect GHG emissions caused by the energy purchased, such as electricity and district heating.
Scope 3 are indirect GHG emissions – not included in Scope 2 – that occur in our value chain, including both upstream and downstream emissions.
Manufacturer of Furniture & Garments
Brand / Design Company
Processing of raw materials
Raw Materials
Shops / Customers
Waste Management
Distribution
Scope 3
Scope 1 + 2
Scope 3
23
GHG Emissions
Regarding the reduction in our scope 2 emissions, this can be attributed to two distinct factors. Firstly, in 2023, we acquired GO’s to cover some of our electricity used at our main Furniture production site. This led to a significant improvement in the proportion of renewable electricity used, increasing from 1.8 % to 12.5 %. Secondly, from 2022 to 2023, there was a decrease in the CO2 emissions factors in the countries where our production sites are located, resulting in a natural reduction in our CO2 emissions from electricity usage. During 2024 we will establish a scope 3 inventory enabling us to reduce our CO2 emissions up- and downstream in our value chain. We expect our Scope 3 emissions to cover more than 95 % of our total CO2 emissions.
Green House Gas Emissions
Unit
2022
2023
%
Scope 1 GHG emissions
Gross Scope 1 GHG emissions
tCO2e
621
521
-16
Scope 2 GHG emissions
Gross location-based Scope 2 GHG emissions
tCO2e
1,654
1,203
-27
Gross market-based Scope 2 GHG emissions
tCO2e
2,115
1,488
-30
Share of renewable electricity
Total GHG emissions
2030 Target: 100 %
1.8 %
Total GHG emissions (location-based)
renewable electricity
12.5 %
tCO2e
2,275
1,723
-24
Total GHG emissions (market-based)
tCO2e
2,736
2,009
-27
5,294 MWh
4,569 MWh
81,6
Most of our production sites rely on heating powered by either natural gas or LPG gas. The decrease in scope 1 emissions observed from 2022 to 2023 can be attributed to the transition from natural gas to electricity for heating purposes.
2022
2023
Renewable electricity
Non-renewable electricity
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Carbon Calculator
Fact box regarding Carbon Calculator
Our carbon calculator delivers GHG Protocol aligned CO2 emissions for our customers’ scope 3 inventory for purchased goods manufactured by our Furniture Division in LTP Group.
LTP’s Carbon Calculator
Customer’s Carbon Footprint
Waste related to product during LTP production
Energy LTP usage
Sales / retailing
Customer’s / consumers usage
Waste / recycling
Materials
Transportation Upstream to LTP
Transportation to customer / consumer
Cradle to.....
LTP Gate
End of life
25
Water Management
Water is a scarce resource and known to be used in high quantities in the textile industry. However, LTP Group's production processes are not water-intensive. Across all LTP Group production sites, water is solely utilized for sanitary purposes, with the exception of Ho Chi Minh, Vietnam and Saltillo, Mexico, where water is additionally used for cooling. The increase in water consumption can be linked to the scaling up of production activities, accompanied by an increase in the number of employees at our facilities in Botosani and Harlau, Romania, as well as Saltillo, Mexico.
2030 Target
Water consumption, m
3
12,000
17,840
19,007
81,6
2022
2023
26
Waste Management
We are dedicated to reducing production waste wherever possible. One illustration of this commitment is evident in our Garment Division, where we create our own cutting files for fabrics. This practice enables us to maximize fabric utilization, thereby conserving resources and minimizing waste. Similarly, in our Furniture Division's foam factory, we optimize cutting profiles to reduce waste. Additionally, any cut-offs generated in the process can be recycled as pillow filling, further contributing to our waste reduction efforts. At all our production sites, we prioritize to move waste up the waste hierarchy where possible. However, it is important to acknowledge that recycling opportunities for fabrics are currently limited globally, and therefore in the countries where we operate.
In 2024, we plan to launch waste campaigns at all sites. Internally, our focus will be on implementing onsite sorting measures to facilitate the recycling of pure waste fractions. Externally, we aim to engage with customers and waste collectors to enhance the upcycling of more of waste materials. Only limited amounts of hazardous waste are generated. Most of it is related to gluing processes in the Furniture Division, as glue contaminated material is characterized as hazardous waste. While use of glue processes can enhance the visual appearance of products, they pose challenges from a recyclability standpoint. Gluing makes disassembly and refurbishment during the product’s lifecycle difficult, particularly impacting end-of-life disassembly efforts. To address this issue, LTP Group frequently collaborates with customers on development projects aimed at designing products for disassembly.
2030 Target
2030 Target
0 % hazardous waste
Waste generation 2022
Waste generation 2023
45 %
Waste generation 2023
Waste generation 2022
53 % Incineration
53 %
1.7 %
2 %
98 %
55 %
98 %
55 % Incineration
20 % Landfill
20 %
26 %
LTP Furniture commissioning part of a new 20,000 m2 solar park near Radviliškis, Lithuania
LTP Furniture commissioning part of a new 20,000 m2 solar park near Radviliškis, Lithuania
98.3 %
98.3 %
21 %
25 %
25 % Recovery / Recycling
21 % Recovery / Recycling
26 % Landfill
1117 metric tonnes
Non-hazardous waste
Hazardous waste
2030 Target
1164 metric tonnes
2030 Target
50 %
5 %
27
Materials, Durability & Circularity
In our 2025 strategy “Embrace durability and circularity” is our aspiration to increase use of more sustainable materials, increase use of 3D samples, prepare design for disassembly and recycle leftover and surplus fabric. In contrast to fast fashion, the Garment Division embraces the principles of slow fashion. The philosophy of slow fashion includes reliance on trusted supply chains, smaller-scale production, traditional crafting techniques, and using local materials where possible. Slow fashion attempts to convince consumers to buy fewer clothes of better quality and to keep them for longer. “In resent years, significant attention has been directed towards the environmental impact of the textile and clothing industry with valid reasoning as “Clothing accounts for between 2 % and 10 % of the environmental impact of EU consumption. This impact is often felt in third countries, as most production takes place abroad. The production of raw materials, spinning them into fibers, weaving fabrics and dyeing require enormous amounts of water and chemicals, including pesticides for growing raw materials such as cotton. Consumer use also has a large environmental footprint due to the water, energy and chemicals used in washing, tumble drying and ironing, as well as to microplastics shed into the environment. Less than half of used clothes are collected for reuse or recycling when they are no longer needed, and only 1 % are recycled into new clothes, since technologies that would enable recycling clothes into virgin fibres are only starting to emerge”. 1)
LTP Garment manufacturing in Lithuania
1) European parliament "Environmental impact of the textile and clothing industry", 2019
28
Materials, Durability & Circularity
3D samples versus physical samples Developing both furniture and garments requires physical samples of the product for customers to accept the appearance of the product. To be faster and more efficient in our developing process we have invested in 3D technology within both our Furniture and Garment Divisions. A desired and sustainable benefit is that we reduce resource use and thereby enhance resource efficiency. Developing a new product within Furniture optimized with 3D can reduce the number of physical samples from 5 to 2 in average. Appearance of the final product is everything when it comes to the iconic products that LTP Group manufacture, therefor the physical sample is inevitable, as how the materials work together and how the product feels in practice is possible to know only on a real product sample. The same applies within Garment, where it is normal to make several physical samples for the customer. Using 3D has reduced the number of samples as the look of the product can be finalized within 3D before making the first prototype. As the first prototype is already closer to the desired product it is the finalization of the appearance and feel of the product that determines the number of samples used. Savings with 3D samples is found in different stages of product development for example a 3D is made instead of the first prototype, a size set, a photo sample, or a preproduction sample. Making 3D samples before the first prototype saves about 30 % of all samples quantity. In 2023 we saved 7 % of all physical samples by using 3D.
3D can reduce the number of physical samples from 5 to 2 in average.
Making 3D samples before the first prototype saves about 30 % of all 3D samples quantity. In 2023 we saved 7 % of all physical samples by using 3D.
29
Materials, Durability & Circularity
Furniture - FSC certified cardboard & wood In the manufacturing of furniture wood is a key material used, and cardboard is a material employed for packaging purposes. Recognizing the environmental impact of conventional materials, the Furniture Division of LTP Group has undertaken efforts to replace traditional wood and cardboard with FSC certified alternatives. In our own wood factory we use 100 % FSC certified wood.
FSC Certified Wood
2025 Target
50 %
81
59
81,6
We are pleased to note positive progress in sourcing FSC wood and cardboard. There has been a doubling in the FSC certified wood from 19 % to 41 %, and a substantial increase from 60 % to 85 % in FSC certified cardboard. In 2024, our aim is to sustain or further enhance the proportions of FSC certified wood and cardboard in our operations.
19
41
2022
2023
FSC certified wood
Wood
LTP Wood Factory in Lithuania
FSC Certified Cardboard
2025 Target
40
15
90 %
19007
81,6
60
85
2022
2023
FSC certified Cardboard
Cardboard
30
Materials, Durability & Circularity
Garment - Plastic bags with 50 % recycled content Regarding packaging, all garments are individually packed in plastic bags. Recognizing the importance of sustainability, the Garment Division at LTP Group has prioritized sourcing plastic bags with a minimum of 50 % recycled material content.
We see a reduction in the distribution of plastic bags with minimum 50 % recycled content. In 2024, our aim is to get back on track and enhance the proportion of plastic bags with recycled content.
Plastic bags with min. 50 % recycled content
2025 Target
56
48
70 %
81,6
52
44
2022 2023 Plastic bags with min. 50 % recycled content
Plastic bag with recycled content from Garment customer
Plastic bags
* Above relates to Garment globally.
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