Sustainability

At PT Pan Brothers Tbk, sustainability is integral to our long-term business strategy. We recognize that as a global textile and apparel manufacturer, we have a responsibility to minimize our environmental impact, uphold ethical labor practices, and contribute positively to the communities in which we operate. Our sustainability strategy focuses on three key pillars: Environmental Responsibility, Social Equity, and Ethical Governance. These pillars guide our operations to ensure sustainable growth while aligning with global sustainability frameworks such as the United Nations Sustainable Development Goals (SDGs) and Environmental, Social, and Governance (ESG) principles. We align our sustainability strategy with 10 of 17 of the United Nations Sustainable Development Goals (SDGs) to contribute to global sustainability efforts. Our initiatives are particularly focused on the following SDGs: • SDG 1 (No Poverty) : We support the Government of Indonesia in reducing the number of people below the poverty line by employing PT Pan Brothers Tbk and Group. • SDG 3 (Good Health and Well-Being): To enable access to safe, effective, affordable, quality healthcare services for all, including employees and surrounding community members where PT Pan Brothers Tbk and Group are located. • SDG 4 (Quality Education): We provide technical skills and vocational training to young and mature adults related to PBRX business functions to enhance employability and encourage entrepreneurship. • SDG 5 (Gender Equality): We provide equal opportunity for women so that they can participate in the management function at all levels in PT Pan Brothers Tbk and Group and grow as leaders • SDG 7 (Affordable and Clean Energy): We utilize energy efficiently, invest in renewable energy resources, and use at least 31% renewable energy by 2030 at PT Pan Brothers Tbk and Group. • SDG 8 (Decent Work and Economic Growth): We ensure fair wages, safe working conditions, and equal employment opportunities. • SDG 9 (Industry, Innovation, and Infrastructure): We promote inclusive and sustainable industrialization and innovation in the garment industry by raising the share of GDP while maintaining the share of employment • SDG 12 (Responsible Consumption and Production): We implement circular economy principles by developing recycled textile products and reducing waste. • SDG 13 (Climate Action): We are committed to reducing our carbon footprint through energy efficiency, renewable energy adoption, and sustainable sourcing. • SDG 16 (Peace, Justice and Strong Institution): We support the Government of Indonesia to eliminate corruption in all forms by implementing good corporate governance

We have taken concrete steps to integrate sustainability into our business operations: 1. Environmental Initiatives: o Adoption of energy-efficient production processes (Energy Management System/EnMS Projects) and renewable energy sources (SPV Installed). o Development of sustainable product lines using recycled and organic materials. o Reduction of carbon footprint through optimized logistics and supply chain management (SBTi Validated in Scope 1.2 and 3). 2. Circular Economy & Waste Management: o Implementation of fabric waste recycling programs to minimize landfill waste. o Collaboration with partners to develop closed-loop textile recycling systems. 3. Certifications & Compliance: o We adhere to internationally recognized sustainability certifications, including Global Organic Textile Standard (GOTS), OEKO-TEX, and Higg Index. o Compliance with global labor standards, ensuring ethical working conditions.

Over the next year, PT Pan Brothers Tbk is committed to achieving the following sustainability goals: • Carbon Emission Reduction: Aiming to cut Scope 1 and 2 emissions by 15-20% through increased reliance on renewable energy. • Increased Circularity: Expanding our recycled textile initiatives to incorporate more post-consumer waste. • Enhanced ESG Reporting: Strengthening transparency in sustainability reporting by aligning with Global Reporting Initiative (GRI) and Indonesian Financial Services Authority (OJK) standards.

We are deeply committed to social equity through various initiatives that protect our workforce and support local communities: 1. Workers’ Health & Safety o Strict adherence to international occupational health and safety standards. o Regular safety training programs and audits to maintain a secure work environment. o Provision of comprehensive healthcare programs for all employees. 2. Worker Rights, Wages & Benefits o Ensuring fair wages that comply with or exceed local labor regulations. o Providing employee benefits such as insurance, maternity leave, and professional development opportunities. o Implementation of grievance mechanisms to allow workers to voice concerns freely. 3. Community Involvement o Engagement in CSR programs focusing on education, healthcare, and skill development. o Partnerships with local stakeholders to empower small businesses and local artisans. o Disaster relief initiatives to support communities affected by natural disasters. At PT Pan Brothers Tbk, we believe that sustainability is not just a responsibility—it is an opportunity to create long-term value for all stakeholders. We strive to build a more sustainable and ethical future for the textile and apparel industry through continuous improvement and innovation. For more information on our sustainability initiatives, please visit our website or contact our sustainability department.

As a British woollen mill we hold traditional values yet have an innovative and forward thinking attitude to our work. We believe in creating high quality products which are made to last. When good design is used, natural fibres can be turned into classic, elegant and hard-wearing products for those who value and care for them. As part of our Core Values, we continue to work hard to care for the environment. and do all we can to limit our impact. All our manufacturing processes take place under one roof, reducing our carbon footprint.

We work with wool which is 100% natural, renewable and kind to the planet. We have achieved our Carbon Reduction accreditation with a validated carbon footprint and have implemented measures to reduce our energy consumption and carbon emissions such as installing energy monitors, solar panels and developing more efficient ways of operating our machinery (longer hours over fewer working days per week). We recycle all our mill waste generated through our wool processing stages using them to create a new revenue stream as limited edition yarn ranges which we sell as well as mill by-product waste materials for padding/stuffing for home furnishings, pet bedding, stuffed toys and sustainable craft activities.

We regularly collaborate with academia and other industry experts to research and develop new and innovative ways of working such as finding a more energy-efficient drying solution for the yarns that we produce and to develop a unique scouring process using supercriticalCO2 to reduce our energy use and eliminate water use.

We provide private health care packages for our team members, operate a four day working week to promote a good work/life balance, and offer staff development and inhouse training opportunities.

Electric vans and electric cars. Recycling also and solar panels.

Our purpose to maintain or improve systems and processes without depleting natural resources or harming the environment for future generations. For textile companies, this means minimizing pollution, waste, and resource consumption while ensuring fair labor practices and supporting communities.

We mainly use natural fibers to manufacture our fabrics, reduce pollution by implementing waste water treatment system and constantly monitoring air quality surrounding our plant.

Minimizing our production waste by proper production management and re-utilizing left over materials.

implementing standard wages set by local government and health benefits for the workers. No children labour allowed to work on the premises.

ITS OUT development strategy

50% PRODUCTS ARE NOW IN SUSTAINABLE FABRIC

USING MORE SUSTAINABLE AND APPLY MORE SUSTAINABLE AUDIT

WE AUDIT AND RE-AUDIT OUR COMPANY EVERYYEAR

take 3rd-party social audit regularly

RECYCLED

RECYCLED

RECYCLED

RECYCLED

100% of our garment made from sustainable material

all the material and washing house are all certified

B Corp and GOTS certified

Sedex member and BSCI certified

For over 30 years, sustainability has been the cornerstone of our existence. It is deeply ingrained in our brand ethos, a commitment we have held steadfastly since our inception. Our unwavering dedication to sustainability has been evident in every facet of our operations. From meticulous raw material sourcing to our manufacturing processes, sustainability serves as the guiding principle that shapes every decision we make.

At Tex India, we have made significant investments in renewable energy, including owning windmills and solar panels to support sustainable operations. Our India unit is equipped with a Zero Liquid Discharge (ZLD) system, where 85% of the water used in dyeing is recycled, and the remaining 15% is evaporated. In Bangladesh, we are proud to be the first company to implement in-house alloy recycling for producing metal trims. From using recycled polyester yarn to create sustainable zippers to recycling brass for metal trims, we are committed to offering eco-friendly solutions. Our sustainable products are trusted by renowned global brands such as Ralph Lauren, H&M, Kohl’s, and many more, showcasing our dedication to driving innovation and sustainability in the industry. Our management also co-founded IIMPACT, an inspiring initiative dedicated to educating girl children from socially disadvantaged communities, empowering them to build a brighter future.

In the coming year, we aim to proactively offer sustainable products to our customers, even if they do not explicitly request them, as part of our commitment to encouraging sustainability. Additionally, we do not impose any upcharge on our sustainable zippers made from recycled polyester yarn, reinforcing our dedication to making eco-friendly solutions accessible to all.

To promote social equity, we have adopted the Higg Index across all our facilities in India, Bangladesh, and Vietnam. The Higg Facility Social and Labor Module (FSLM) ensures adherence to global standards for working conditions and social practices, fostering a fair and equitable workplace for all.