LTP Annual Sustainability Performance Report 2022

EMBRACE DURABILITY ​ & CIRCULARITY

Recycle plastic Reducing plastic in our packaging has been a focus for LTP Group for several years. In 2022, we made progress in both divisions but fell short of the targets to reach 90% recycled plastic bags, having 50% recyclable content. The garment Europe division managed to increase the percentage of recycled plastic bags to 69%, up from 41% in 2021. Sustainable material substitution In 2021, LTP Group made the switch to using only water- based glue for furniture production. In 2022, and despite its now all water-based glue, LTP Group continued to focus on improving the gluing process by creating a safer and healthier working environment for production workers. To achieve this, a second robot was added, and today more than 80% of gluing is done in cabins without human involvement. This has significantly reduced the exposure to glue and improved the overall working conditions for the employees. LTP furniture has made significant progress in sustainable sourcing of cardboard, with more than 60% of all cardboard sourced having a full chain of custody under the FSC certification in Europe. The plan is to extend this certification to Mexico in 2023. As for FSC sourced wood, LTP Group has set a target to reach 50%. In 2022, 19% were achieved, while 30% was the target.

Production waste management and disposal For 2022 an ambitious goal was set to recycle 100% of all textile leftovers. This target has not been achieved. It is extremely challenging to convert sustainability concepts into new production solutions, as it necessitates a significant quantity of leftovers with the same composition. Additionally, the textile suppliers do not yet offer take-back options for recycling, and many customers are not yet prepared to pay more for eco-friendly solutions. The most successful project exploring creative textile waste management in 2022 was carried out in collaboration with MAAP. This project created a limited-edition bikewear collection utilising the brand's production leftovers. Other customers could benefit from a similar initiative. More details on this project can be found on page 24. The efforts to repurpose textile leftovers from production will continue to be a top priority in the coming years. In 2022, several projects were initiated in collaboration with both customers and suppliers to explore potential solutions for recycling textile leftovers. It remains a commitment to find innovative ways to reduce waste and promote sustainable practices in the industry. To meet the set goals of reducing the number of physical samples through 3D sampling, significant investments were made in 2022. These included the adoption of new 3D software and the full implementation of elongation testing for textiles.

Professional training was provided to the furniture division. As a result of the investments in 3D sampling, the furniture division now builds products in a 3D environment. This has led to a significant improvement in the correctness of the first samples. The ratio of 3D sampled products now stands at 20%. This improvement has resulted in a linear reduction in the consumption of raw materials making samples, helping implementation of more sustainable production practices. In the garment division, the first trial customers have used 100% e-samples without creating physical samples before mass production. As a result, the proportion of samples made in 3D increased from 0% to 9%. The new target for 2025 is 25%, and LTP Group is determined to promote more sustainable practices throughout the production process. Designing products for reuse, repair, and recycling is essential for achieving a circular economy. In the furniture division 5 projects were successfully made, designed for complete disassembly. This was achieved by avoiding the use of glue in all processes, making it easier to reuse or recycle the materials at the end of the product's life cycle. LTP Group remain committed to promoting circular design principles and incorporating them into the production process.

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