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1 Sustainability Statement

Sustainability Statement - Snowy Peak Peak/sustainability-lookbook.pdfThe governance model at Untouched WorldTM is viewed equally as a reporting structure and as an ... appointed as

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1

Sustainability Statement

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3

Untouched WorldTM finds its whole philosophy in a symbol representing a Maori kite; the emblem of an ideal relationship between man and nature. The kite is the outcome of an art involving natural materials and

human skills. It symbolises a soaring freedom of the spirit. Cultures the world over have deep and intimate relationships with kites. According to many Maori tribal legends, kites in the shape of birds were used as an intermediary step

between man and the gods. Specially made kites were used to prophesy the future, and omens were read from the kite’s movement in the air currents.

4

Copyright © Snowy Peak.

The publication is copyright. No part may be reproduced by any process other than for the purpose of and subject to the provisions of the Copyright Act.

Authors Note:

This Sustainability Statement is the result of a considerable period of focused work, exploring the key sustainability issues which make up this detailed profile of Untouched WorldTM. It is at one level a snap-shot in time but also a template for continual improvement across the business and its relationship with key stakeholders.

I would like to thank all who have contributed to this report, in particular Founder-CEO Peri Drysdale, for enabling these insights to be drawn and we look forward to further feedback from readers. I would also like to thank those peers in the sustainability field who have already shared their views in the front of this document.

Dr Barry LawDirector360O Insight

5

ContentsWho are we? 7

Business Systems and Accountability 8

What do we believe in? What do we strive for? 11

Systems Thinking Approach to Smart Business Practice 12

The Untouched WorldTM Journey 15

UNESCO (Education for Sustainable Development 2005-2015 - DESD) 17

Awards and Recognition 18

Untouched WorldTM Strategic Aspirations for our Planet and its People 20

Environmental Aspirations 22

Social Aspirations 24

Economic Aspirations and Commitment 27

Environmental Actions we have taken 28

Social Actions we have taken 36

Sustainability Staff Dinner 39

Children’s Christmas Party 41

Supply Chain Engagement Processes 46

Economic Actions we have taken 48

What drives our practice? 50

Framework for change 52

Community Education Programmes. Untouched WorldTM Charitable Trust 55

Clinton Global Initiative 56

Performance, Benefits and Impact 58

Our Contribution 60

Our People 62

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6 7

Untouched WorldTM is a sustainable fashion and performance sportswear brand based on the New Zealand lifestyle. It grew out of a desire to create a positive, sustainable future. Social, cultural and environmental values are embedded deep within the DNA of Untouched WorldTM. We believe there is no need to give up quality, function and style to be good to the planet. We design without compromising performance and style.

Who are we?

8

The governance model at Untouched WorldTM is viewed equally as a reporting structure and as an interconnecting web that relies on everybody functioning as a team. This approach to governance encourages innovation, responsibility and accountability. It also encourages individuals and specific management groups to communicate and work together, rather than work in isolated units. Keeping the web intact requires constant maintenance from everyone. Understanding and implementing a systems thinking approach toward sustainable practice has helped the business align management structures to model a connected approach to managing the business.

Business Systemsand Accountability

9

Business Systemsand Accountability

SUSTAINABILITYCEO

General Manager

OperationsChief Financial

Officer

Untouched WorldTM

Retail and Marketing Operations Manager

ManagerPerformance

Cycle Business

Design Director

and Manager Sales

Graphics

Marketing

Retail & Café

Managers

Sales

Buying

Design

ProductDevelopment

Product Development

Apparel

Production &Sourcing

Knit Production &Sourcing

DistributionInformation

Technology

Finance

Production

Sales

Marketing

New Zealand

Australia

Apparel

Knit

AdvisoryBoard

PROCESS

1010

10 11

All life and systems on Earth are inter-related.Sustainability has several meanings, including:

to keep in existence; maintain to supply with necessities or nourishment; provide for to support from below; keep from falling or sinking

to support the spirits, vitality, or resolution; encourage

For us, sustainability is about all of these. It is about ensuring that the Earth’s resources are able to meet the needs of current generations and future generations.

Our aspiration in business is to provide a platform for the human spirit to grow to its full potential. This platform is founded on environmental sustainability. We strive to use renewable resources, to reduce our energy, water and waste footprints to a level and rate that the planet can recycle and resupply these elements; and that meets the needs of future generations.

What do we believe in? What do we strive for?

12

In our business we merge the social-cultural, environmental and economic aspects to better understand the inter-relationships and complexity of working toward sustainable practice. A systems thinking approach drives our business practice.

A systems thinking approach focuses on the environment as the bedrock of business, and views ecological limits as a long term barrier toward economic growth. The underlying message is: “One must look after the environment to ensure social and economic benefits.”

The major issue for business is the tension that exists between producing goods for profit, growth and expansion, at the expense of the environment, and in some cases people, thus increasing the potential for environmental degradation and poverty. At Untouched WorldTM staff are working hard to design the business to place more emphasis on an “environment first” approach. This outlook places high value on the Parliamentary Commissioners Office view, that “redesign must occur within ecological limits”, prioritising environmental protection.

Systems Thinking Approachto Smart Business Practice

13

Systems Thinking Approachto Smart Business Practice

Environmental

Social

Economic

Green Consumerism

Fair

Distr

ibut

ion

of R

esou

rcesFair

TradeResource

Managem

ent

Personal and SocialResponsibility for

Action

Unde

rstan

ding

Cult

ural

Value

s and

Asp

iratio

ns fo

r

a Su

staina

ble

Futu

re

Legi

slatio

n an

d

Com

plia

nce

Equity and

Fairness

Ecol

ogic

al

Life

Supp

ort S

yste

ms

Knowledge about

Ecosystems and How

they

function

Know

ledg

e an

d

Unde

rstan

ding

of B

iodi

versi

ty

Interdependence

Knowledge and Understanding of

Change and Adaptation

Gro

ss As

set V

alue

of

Susta

inabl

e Pr

actic

e

Quality

vs

Quantity

14

1981 The establishment of Snowy Peak Ltd as a cottage industry with 10 outworkers, knitters using natural fibres grown and made in New Zealand.

1984 500 outworkers, working with a number of local natural fibres including New Zealand mohair and New Zealand cashmere.

1985 Bought state of the art computerised knitting machine from Japan, moved business into leased premises, gradually brought production in house.

1992 Knitted first garment ever in possum blended with wool. First new natural fibre in yarn for knitwear for over 200 years.

1995 Untouched WorldTM by Snowy Peak Biogrow Certified Collection launched, sold in New Zealand and Japan.

1996 Launched MerinominkTM – after four years research overcoming quality issues associated with a possum fibre as a recovered material. Technically too short and with variation from the wild. Much of this research done in Japan.

1998 Launched Untouched WorldTM as a broader, more extensive New Zealand lifestyle brand. Opened first retail and Native Garden Café concept.

1998 Research and development for Untouched WorldTM Charitable Trust– coalescing stakeholders around the philosophy of the business.

2000 Established Untouched WorldTM Charitable Trust Board.

2000 Whole staff from supervisor level up enagaged in ‘what does being a sustainable business mean for us?, what are our aspirations for the business?’.

2000 Hosted Paul Hawken and Ray Anderson at Untouched WorldTM, subsequently invited to join the Redesigning Resources Group of eight organisations in New Zealand and Australia working together to pioneer a pathway for organisations to work on a sustainable basis.

2000 A senior employee from Landcare Research, and a member of the Redesigning Resources group worked with us in the company one day a week helping overcome barriers and provide tools to assist the business in becoming a Sustainable Company; in turn he gained insights into the real life challenges of being a sustainable enterprise.

2002 First sustainability report published.

2002 First Untouched World Charitable Trust Programme at Blumine Island, Marlborough Sounds.

2004 Joined organic exchange, CEO and Head Designer attended organic conference.

2004 Introduced patented mechanically processed bamboo fabric.

2005 Launched Certified Organic Cotton Collection.

2005 First Children’s Christmas party (see page 41), making the company cards from recovered materials.

2006 Launched certified organic merino mountainsilk collections.

2007 Peri Drysdale and Dr Barry Law asked to present Untouched WorldTM and Untouched WorldTM Charitable Trust as one of 12 global exemplars of sustainable practice in business at United Nations convened meeting in Bonn.

2007 Untouched WorldTM Charitable Trust executive Mark Prain worked with United Nations on sustainable business policy development.

2008 Peri Drysdale presented/exhibited Untouched WorldTM at World Mid Decade Sustainability Conference in Bonn.

2008 Leading practitioner and thinker Dr Barry Law appointed as dedicated sustainability adviser to guide business practice.

2008 Peri Drysdale attended Clinton Global Initiative, personal invitation from President Clinton.

2009 Signed partnership agreement with Clinton Global Initiative.

2009 Blumine Island project achieves predator free status.

2010 Clinton Global Initiative partnership programme developed for January 2011.

2010 The first knitting machine purchased, number one of its generation, was farewelled by the whole company. Subsequent machines now being replaced by fourth generation machines that operate with minimal waste.

2010 Three pairs of Kiwi from Okarito programme released on Blumine Island by Minister of Conservation, Kate Wilkinson and Untouched WorldTM Charitable Trust Chair (Peri Drysdale) accompanied by two alumni from the Blumine programmes, a great outcome after eight years of work on the island.

Time frame

14

14 15

The Untouched WorldTM Journey...

Our journey towards being a sustainable business started when the parent company of Untouched WorldTM, Snowy Peak Ltd, was established in 1981. Back then, as she does now, founder and CEO Peri Drysdale saw business as a vehicle to bring holistic prosperity to all stakeholders, present and future, including the local and global community. Peri wasn’t interested in building a business that was one dimensional, concerned only with financial outcomes. She knew that she couldn’t work towards a goal that wasn’t for the benefit of all.

The journey to create Peri’s business vision is ongoing. The vision includes creating enduring products and services that have the most positive impact possible on the planet and its people directly and indirectly through the Untouched WorldTM Charitable Trust.

Our progress along the journey was greatly enhanced by engaging with eight organisations in New Zealand and Australia in a pioneering Redesigning Resources process. The process enabled participating organisations to share information and work together to shift their practice over a four-year period. The outcome was a book describing the cross-sector pathway of each organisation to illustrate some signposts for others to follow on their pathway. In 2008 a further step was taken: a leading thinker in sustainable practice (Dr Barry Law) was appointed to work with and educate staff across the company.

This report documents our thinking now, our strategies and where we have moved on our journey over the past decade.

1616

16 17

UNESCO (Education for Sustainable Development 2005-2015 - DESD)

Untouched WorldTM is committed to working towards a sustainable future. In November 2007, Untouched WorldTM

become the first fashion company in the world to be given permission by UNESCO to carry the United Nations Decade of Education for Sustainable Development (UN DESD) logo on its labelling-one of a small number of organisations internationally permitted to use it. The use of the logo is in recognition for the holistic decision-making approach taken by the company, which considers not only the environmental, but also the social, cultural and economic principles associated with sustainability.

More specifically, Untouched WorldTM was recognised by UNESCO for its leadership in sustainability, collective and strategic visioning, sustainability auditing, product research and development, the ethical values that underpin the design process and for the educational programmes for youth leadership that all focus on ensuring sustainable resource use for future generations. The logo recognises the efforts of Untouched WorldTM and the Untouched WorldTM Charitable Trust in the area of education for sustainability.

“Untouched WorldTM is an outstanding example of a company that takes a holistic approach to business. They are implementing projects that are outstanding case studies for what is possible with sustainable business.”

- Hayden Montgomerie, Acting Secretary General The New Zealand National Commission for UNESCO

18

1990 Business Excellence Award.

1992 Export Commendation presented by Prime Minister Jim Bolger at opening of new Snowy Peak Ltd premises.1992 Founder/CEO made a Member of Order of British Empire (MBE) for services to New Zealand (Manufacturing and Export).

1995 New Zealand Way brand quality assessment (highest score ever achieved at that time).

1995 Official supplier of garments to state leaders in New Zealand for CHOGM (22 Commonwealth Heads of Government).

1998 Untouched World™ brand launched its flagship store opened by Prime Minister Jenny Shipley.

1999 CEO presented keynote speech at welcome ceremony for SME (Small and Medium Enterprise) APEC meeting held in Christchurch.

1999 CEO presentation and panellist at APEC Women’s leaders network meeting in Wellington.

1999 CEO at Untouched World™ restaurant hosted a satellite link up of international speakers at APEC breakfast.

1999 CEO presented at APEC Auckland business symposium.

1999 President Clinton endorsed his Untouched World™ APEC leaders garment as ‘smartest of a large number of garments i’ve been given in seven years of being President.’

1999 CEO named one of 100 New Zealanders who made the most contribution to New Zealand.

2002 Further endorsement of President Clinton’s appreciation of garments when he returned to personally shop at Untouched World™ Auckland in May.

2002 Untouched World™ Auckland won top Fashion Shop - Auckland in Top Shop Awards 2002 at the end of its first year in Auckland.

2002 Gold medal print/package award.

2002 ‘Most Ethical Company’ award, runner up, Deloitte Top 200 companies.

2002 CEO named New Zealand Businesswoman of the Year.

2004 Best Retailer Award.

2005 CEO named New Zealander of the Year 2006 by North & South magazine.

2006 Most innovative Retailer (Auckland Top Shop awards).

2006 Winner Management/Deloitte Top 200 Ethical Governance Award.

Awardsand Recognition

19

2007 CEO receives honorary doctorate in Commerce from Lincoln University.

2007 The company becomes the first fashion company in the world to be given permission by UNESCO to carry the United Nations Decade of Education for Sustainable Development Education (UN DESD) logo on its labelling-one of only three corporate entities internationally accredited.

2008 CEO winner of Supreme Award, 2008 World Class New Zealander Awards.

2008 CEO personally invited by President Clinton to attend the 2008 Clinton Global Initiative in Hong Kong, December 2008.

2009 Invited by UN to exhibit at Mid Decade World Conference in Education for Sustainable Development in Bonn.

2010 Minister of Conservation released first Kiwi on Blumine Island since predator free status achieved by students, teachers and Doc staff involved in Untouched World™ Charitable Trust programme.

19

20

Untouched WorldTM Strategic Aspirations for our Planet and its People...

Our aspiration is to ensure that we consider the environmental, social/cultural and economic impacts of our actions and how they affect all stakeholders on the planet.

Five strategic aspirations underpin the Untouched WorldTM business approach. They are supported by 22 additional aspirations and 1 commitment that addresses specific environmental, social /cultural and economic outcomes/objectives aligned to sustainable practice.

Environment1. to minimise overall energy use and work towards the use of clean renewable energy

2. to avoid over harvesting and contamination of all natural resources

Social/Cultural3. to ensure that the business and supply chain process directly and indirectly has a positive impact socially, culturally, environmentally and economically for all stakeholders

4. to lead our sector as a responsible and sustainable organisation

Economic5. to be financially sustainable

Transparent reporting (pp 28-57) addresses what we have achieved under each set of outcomes (environmental, social/cultural and economic). There are a number of key initiatives that we have not mentioned. Once these initiatives are completed they will allow us to report in greater detail in our next sustainability statement. Currently we feel these ‘undisclosed initiatives’ are not yet sufficiently advanced to demonstrate clear outcomes. They highlight were we would like to be, not what we have achieved.

21

Untouched WorldTM Strategic Aspirations for our Planet and its People...

21

22

EnvironmentalAspirations

The role of Untouched WorldTM in business is to ensure that resources are used wisely, that we constantly improve our footprint and protect biodiversity. We recognise that we have only one planet and we need to protect it to ensure resources for future generations.

Workplace Change and Planet Footprint1. to increase environmental monitoring to determine the extent of the business footprint

2. to minimise the waste, energy and water footprint of Untouched WorldTM

3. to make the most positive impact on biodiversity

Product4. to maximise the use of renewable natural materials to produce quality products

Specific Water Objective:We seek to optimise water use, reducing volumes used and contamination.

5. to monitor and minimise overall clean water draw off, including where possible downcycling and recycling.

6. to avoid contamination of water with toxic substances 7. to work with suppliers who already have a strategy in place to achieve, cleaner water exiting their processing operation than entering their operation8. to ensure we are not purchasing from organisations that have processes that contaminate water supplies endangering the health of local populations9. to raise the health and wellbeing of current and future generations by teaching comprehensive water awareness programmes (WaterWise) through our Untouched WorldTM Charitable Trust projects for youth

23

EnvironmentalAspirations

We have committed to monitoring and implementing water reduction technique in our Christchurch-based production facility and head office, as well as working with our suppliers.We are also committed to raising the health and wellbeing of current and future generations by teaching comprehensive water awareness programmes (WaterWise) through our Untouched WorldTM Charitable Trust projects for youth.Through designing and initiating such programmes, young people will have the chance to examine their own water use and implement a range of options for reducing their footprint. The practical work of our Clinton Global Initiative partnership WaterWise programme will focus on water as a resource for present and future generations.

23

24

Social Aspirations

People deserve a fair return (pay) for their goods and services. Untouched WorldTM is committed to social justice, fair trade, no child labour and working conditions that meet or better internationally approved standards. Furthermore, Untouched WorldTM seeks to provide every human being involved in the creation of its brand and products, the opportunity to individually reach their full potential.

People10. to be socially responsible for future generations

11. to encourage staff to make healthy lifestyle choices that consider the environment

Process and Practice 12. to continually refine and implement a long-term vision for the company that integrates sustainable practice13. to continually integrate sustainable practice into the operational, organisational and workplace environment

14. to create a culture and work environment that is based on sustainable practice

15. to advance our core strength in research and design that supports the sustainable practices agenda.16. to increase Untouched WorldTM transparency in regard to the compliance and monitoring associated with sustainable practice

Product17. to create products and services that demonstrate transparency, focus on fair trade and enhance quality of life

Partnerships18. to align supply chain practice to sustainability aspirations

19. to develop partnerships with like-minded supply chains

2525

2626

26 27

Economic Aspirations and Commitment

At Untouched WorldTM, sustainability is viewed as a smart strategic economic move rather than a nice thing to do. We believe that business can only be conducted if we ensure the long-term health of our planet.

20. to contribute as much as possible to the economy by using local products and services, and at the same time provide value to our global suppliers and customers

Profit 21. to reduce Untouched WorldTM supply chain cost through sustainability efficiencies

22. to increase revenue through sales, modelling a sustainability brand

Commitment1. to provide 1% of sales to fund Untouched WorldTM Charitable Trust activities

Untouched WorldTM is a privately owned company and financial information is private property. Investment has been made to further increase the level of sustainable practice in the business. As a result both costs and savings have occurred in achieving this outcome. Examples of cost saving have been identified on page 48 in percentage figures based on historical expenditure.

28 29

Workplace Change and Planet Footprint

Right House Energy audit completed to support in-house monitoring. This process has helped determine energy use

and identification of areas where possible savings (environmental and social) can be achieved.

Full Circle cardboard recycling stations established, 2008.

Recycled card take-out coffee cups with Ingeo lids and brown recycled paper table coverings reduce water use in washing.

Recycling stations set up company-wide.

Reduced waste to landfill by a further 28% in 2009-10, plus increase in recovered materials to 84%.

Laundry product re-formulated to meet Untouched WorldTM goals and objectives.

Implemented a Bokashi system for all food waste. Bokashi system liquid is used by staff on their own vegetable gardens.

Paper covers on table clothes reduce laundering.

Long wash cycle for garments reprogrammed and reduced by 15 minutes per garment to save energy and water.

Water is metered. A break in pipes underground identified, stopped waste of 370,000 litres of water per week.

Blackboard menus introduced in restaurant to replace paper menus.

In the last three months at time of this report we have reduced paper use by 3.62% based on our 2008 practice.

Full recycled paper toilet tissue and hand towel product used in all toilets.

Reusable, biodegradable woven bags made from pre-consumer waste fabrics, to protect garments shipped by mail to

customers from web orders.

Eco Store cleaning and toilet products used to reduce impact on biodiversity.

Organic cotton and bamboo along with organic merino yarn are used in our garments.

Recycled buttons and fusing are used in our garments.

Environmental Actions we have taken

29

Environmental Actions we have taken

29

30

Informative Process

A ‘measure to manage’ process has been implemented at Untouched WorldTM to assist with the decision making process but also to provide greater transparency for our customers, stakeholders and suppliers. The data provided outlines our impact and ongoing shift in our practice over the last two years.

96% Yarn

Organic Waste CCC Kerbside 95%

re-filling

LandfillOther Waste 12-15% of allpurchasedproduct

CCC KerbsideRecovery

Glass Aluminium 99%

30

31

500 000

490 000

480 000

470 000

460 000

450 000

440 000

430 000

420 000

410 000

400 000

kilo

wat

t hou

rs u

sed

Electricity UseTotal Paper Use

550

500

450

400

350

300

250

200

150

100

50

reem

s of p

aper

2009

Water monitoring and efficiency is a major

environmental aspiration for Untouched

WorldTM. Both internal and external reviews

of water use and monitoring have been

carried out by our sustainability consultant

and Target Sustainability.

Monitoring in 2008 identified a high use of

water. Testing with ultrasonic equipment

detected a water leak under the building.

As a result we have reduced our water use

by 85%.

3300

3250

3200

3150

3100

3050

3000

GAS - Cubic Metres

Cubic Meters

A 2.39%

saving for

electricity

A 3.62%

saving for

paper

2008

550

500

450

400

350

300

250

200

150

100

50

cubi

c m

eter

s use

d

20102009

Water Use

A 85%

saving for

water

2008 2009 2010 2008

20102008-09 2009 -10

A 4.26% saving for gas

31

32

Tonnes Recovered

Tonnes to Landfill

Waste and Recovered Materials 2008-2009

7.06

9.2 Tonnes Recovered

Tonnes to Landfill

Waste and Recovered Materials 2009-2010

2.6

13.66

49% of current 2.6 tonnes to landfill is non-recycleable textiles.Further 28% shift in practice from landfill to recovered materials.

84% free from landfill.

In the areas related to our overall energy use we can state that we have and reduced our overall petrol /diesel consumption in company cars, our electricity, water and gas use, paper and waste to landfill. However, in 2009-10 we increased our air travel from 2008-09 figures. As a result our use of taxis was also higher, as we continue to grow the business.

We will continue to review our performance related to total energy use in 2010 and explore ways to further align what we do towards our sustainability aspirations.

A comprehensive effort is made in recovering materials for reuse, recycling and re-design. Internal reviews and efficiencies have been supported by third party verification. We are currently engaged in an external case study with Target Sustainability in Christchurch.

Informative Process

32

33Becon Recovery System 33

3434

34 35

Our passion for sustainable design flows through every element of our collections, from our buttons, to our textiles, to where and how we produce each and every garment. We are focussed on building transparency in our sourcing and fair trade manufacturing initiatives.

Post-consumer garment care can have a high environmental impact. Almost all Untouched WorldTM garments are washable. Furthermore, Untouched WorldTM signature fabrics and yarns require less laundering.

Nature is a great inspiration to us, having already created clever solutions for comfort and survival in extreme environments. Taking her raw materials, we apply our own technology to create high performance, sustainable luxury fabrics such as our Organic MountainsilkTM.

.

Product

What we’re getting rid of:

contaminants and pollutants

excess water use

adverse effects on biodiversity

What we’re making the most of:

versatility

durability

the ability to re-use and recycle

minimising the environmental

impact per wear of clothing

36

Social Actions we have taken

People

Professional development programme for staff to communicate the business sustainability aspirations.

Staff sustainabilitiy dinner established as a team exercise to create a community of interest in modelling

sustainable practice.

A range of ongoing support for employees’ training needs, both internal and external.

Each year a children’s christmas party is organised by the sales staff to make Christmas cards using a range

of recycled and re-used materials.

Process and Practice

Company water and energy policy and strategic action refined and implemented 2009.

In house water, electricity, gas and waste audits completed 2008 and ongoing monitoring 2009.

Third party verification of water, waste and energy audits 2008-9.

Courier service review completed in 2008 to explore and implement greater efficiency.

Raw materials list identified.

Product pathway implemented to explore the cradle to gate process of yarns and fabric.

Implementation of a dry waste recovery system at manufacturing and retail sites that reduces 85%

of waste to landfill.

Review of all health and safety systems.

Implementing a lean business approach to assist operational practice and develop quality systems.

Researching new materials and design to improve our efficiency and reduce our environmental impacts.

37

Social Actions we have taken

1

2

4

6

5

3

Total number of staff (includes all permanent, part-time and casual roles for each year

People 2008-2009

Females in Senior Positions

Males in Senior Positions

Employee Turn-Over Rate

Sick Days per Employee

84

6

7

no data

no data

no data

no data

Staff Retention and Leave

2009-2010

104

no data

3.14 Days

No. Staff involved in sustainable practice professional development (internal & external

Factory

*Retail

*Cafe

Admin

*OthersIncludes a number of part-time and casual positions

50

6

7

17.54%

7.01%

26.31%

29.82%

19.25%

3.23 Days

46 62

6

7 120

100

80

60

40

20

0

Peop

le o

n St

aff

Female

Male

Work Place Profile 2009-2010

Full Time Permanent

Part Time Permanent

Casual

European

Asian

Pacific/Maori

South American

South African

Culture 2009-2010

Includes design, administration, sales, IT & marketing

2010 to date

At Untouched WorldTM there is a high percentage of young female staff. The business offers flexible employment above what is legally required for maternity leave, so that new mothers can balance employment and family.

*includes university holiday workers in peak season. 2008 2009

37

3838

38 39

Staff professional development in sustainable practice has involved face-to-face training sessions in small groups for factory staff, individual support for staff involved in specific projects, senior management team training, retail staff training and whole company activities to model sustainable practice.

The annual staff sustainability dinner is a great initiative and involves staff from across the business participating in teams to provide a dinner for between 50-60 people. Teams must consider the environmental, social and economic implications of their purchase, preparation and waste.

This is a highly entertaining evening that recognises and respects a range of cultural practice, requires collaboration and encourages staff to think about sustainable practice both within and beyond the business. Key food themes for the 2010 sustainability dinner included “The Best of Asia”, “Kiwiana” and “Australia Fare”. The Untouched World restaurant is transformed for the evening with the chef and manager on hand to provide support and encouragement.

“It was good to understand why we make certain choices...but above all I was pleased to see people from different departments working and thinking as ONE”- Amit

Had a ball! Great food, great company - enjoyed every moment, what a neat way to learn more about sustainability!- Fi

Sustainability StaffDinner

40

41

The Children’s Christmas Party involves children associated with the company. Sons, daughters, nieces, nephews, grandchildren and friends, with local schools now involved-getting together for a fun day, hand making the company Christmas cards, using recycled card and scrap materials from production.

The money the company saves on Christmas cards is donated to the fund the children use to buy beautiful sustainable wooden toys made by special needs workers for other not so fortunate children at Christmas time. All time for developing and managing this project is donated by staff.

Children’s ChristmasParty...

4242

42 43

Products

Progress has been made in implementing GOTS certified organic cotton, Biogro certified organic merino, sustainably farmed merino, patented chemical-free mechanically processed bamboo fabric, recycled fusing, recycled cotton buttons, nut buttons and organic cotton back sew in labels.

Significant progress has been made in the New Zealand farming community regarding the merits of organic farming. It is still a small number, but more farms are converting to organic. Certified organic cotton is more freely available in a wider range of materials, and fabrics have been developed for performance sportswear, where adding a thin recycled polyester skin in a specific way to our MountainsilkTM has created a fabric that is superior, performance-wise to anything else on the market.

PartnershipsPolicy established for reviewing partnerships with supply chains.

Implementation

Completed and on-going Implementation

Implementation underway

Completed and on-going Implementation

Completed

1

2

4

6

9

7

8

5

3

Strategic alignment of business goals with sustainability aspirations

Policy Completed, Implemented

Water Policy

Energy Policy

Product Pathway Process

Lean Business Systems

Health and Safety Review

Ethical Procurement Guidelines Sustainability Reporting Process

Life Cycle Analysis Product

Completed

Completed

Implementation

Implementation

Implemented and on-going

Recovered Materials Strategy

3

1

2

4

Policy Who

Water

Electricity

Waste

Organic Yarn, Organic Fabric

Sustainability Process

Target Sustainability

Righthouse

Target Sustainability

GOTS, Biogro NZZQuie Certified

5

Policy Related to Sustainable Practice

Third Party Verification 2008-2010

Dr Barry Law

10

44

Supply Chains and Stakeholder Agreement

We have stepped up our actions to ensure that all our major suppliers of product, material and service align their with Untouched WorldTM’s sustainable practice aspirations. By harnessing the collective knowledge and skills of both national and international supply chains, we will reduce our impact on the planet.

Collaborating, listening and working with our employees, local community, customers, suppliers and stakeholders has been a central aspect of the Untouched WorldTM approach to corporate social responsibility.

A commitment to work with supply chain partners and organisations that share our vision and approach towards sustainability. The shared vision is built around a collaborative partnership that allows Untouched WorldTM

to influence change and also be influenced, by working with supply chains/organisations to ensure greater social responsibility.

New supply chains that approach Untouched WorldTM are asked to participate in a partnership review process to help us determine the extent of the relationship and the benefit or risk towards the company’s sustainability aspirations and values.

How does the partnership relationship contribute to the sustainable practices/values of our business?

What are the limitations of risk in becoming involved with this client/business?

How does the partner client meet Untouched WorldTM aspirations and objectives?

What ongoing support mechanism is in place to keep this partnership relationship positive long-term and to assist the environmental, social, political and economic change process?

What specific client contribution is provided to advance the business process?

What is the expected contribution of Untouched WorldTM in this partnership and how does that affect our broader sustainability aspirations?

Considering each partnership relationship includes :

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Supply Chains and Stakeholder Agreement

New Zealand & Overseas Garment Manufacturing

New Zealand

China

India

International Supply Chain

We have an extensive organic cotton and merino sourcing programme. We are focused on ensuring there is transparency in our sourcing and fair trade manufacturing supply chains.

Suppliers from a range of countries are used to source product that meets the high standards required by the business. The product pathway project, currently being developed at Untouched WorldTM, focuses on the pathway of raw materials through transport, manufacturing, delivery, further manufacturing and delivery to enlighten the business about the full extent of their global footprint and specific impacts.

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Supply Chain EngagementProcesses

There has been a long history of supply chain and stakeholder engagement with the business. Economic, social and environmental issues related to products and service have become an increasing aspect of this engagement over more recent years. Feedback from customers and suppliers is viewed as critically important in supporting change and verifying product disclosure statements.

Top 10 supply chains online review. Identification of social, environmental and economic commitment towards sustainable practice. Alignment with Untouched WorldTM aspirations.

Carter Holt Harvey (Full Circle recovery) Courier Companyies x 5 (Review Process) Target Sustainability (Third party verification) CCC

Web-based feedback from customers. Dedicated role responsible for monitoring and disseminating feedback to the appropriate person in the business

Process Sustainable Practice Example

Face-to-face discussion with supply chain and stakeholders

Regular feedback and communication with supply chain, stakeholders and customers.

National and international

Information sheets used by retail staff to address questions from customers. Recording sheet used to identify key questions and issues from customers

Review of stakeholder commitment towards sustainable practice based on online data. Information gathering process.

Feedback from customers on paper use, prompting a review of printed material. Feedback on new seasons designs and support for sustainability journey.

Wide range of suppliers contact on a daily basis.

Beacon Recovered Materials (landfill and recovered materials)The Textile Recovery Centre (Yarn recovery), China (manufacturing site)

Many international customers ask specific questions about Untouched WorldTM approach. Monitoring this process helps us address concerns and pass on positive feedback to inform decisions.

Policy Related to Sustainable Practice

Online - Web portal review

Formal meetings

Online feedback

Email, fax and phone

Visits to supply chain

Face to face informal communication

2008-2010Type

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Lammermoor Station, situated near the Paerua Valley in southern New Zealand - Organic Merino.

Beacon - Recovered materials company Christchurch.

Org

anic

cot

ton

man

ufa

ctu

rer

- In

dia

.

Carter Holt Harvey - Fullcircle Recycling

Suppliers of cardboard, plastic and paper recycling services.

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Economic Actions we have taken

ProcurementPurchasing policies for products and services developed and implemented to make sure that sustainability aspirations and objectives are considered when buying products and services across the business.

Sustainability advisor employed one day a week to provide guidance, implement new approach and enhance staff capability.

Profit

Full Circle cardboard recycle process 23% cost saving off cardboard repurchasing.All merino wool waste now recycled by textile recovery. Income generation per kilo for 100% wool and 95% wool.

New products have been created out of recovered wool waste and discontinued lines, creating new income.

30% cost saving on overall waste disposal, due to efficient re-use and recycling process.

84% cost saving on restaurant waste due to merged waste disposal with factory.

76% cost saving on green bathroom products limiting footprint and waste.

10% cost saving on cleaning products by switching to green supplier.

10% cost saving on international courier services after supply chain review.

11% cost saving on green garment wash product.

Water 8K saving per year on excess water changes due to the discovery of a major water leak during audit.

Reduced kilowatt hours 2009 to 2010, 11355 kwh saving approximately 2.39% of energy costs.

4.26% reduction in gas costs in Christchurch, Head Office.

6% saving in total yarn costs in 2009-10 due to new whole garment machines.

66% saving in laundry liquid use per 4kg load in washing machines.

Charitable Contributions

Untouched WorldTM Charitable Trust receives 1% of sales to promote youth leadership in sustainable practice.

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*Recovered materials from cut and sew process

Economic Actions we have taken

Full garment knitting machines introduced in 2010 have reduced waste and recovered yarn, transport, energy and time as the business reduces a cut (waste) and sew (labour) model to keep the business competitive.

Manufacturing yarn waste and recoveryRevenue from recovered yarn has increased to approximately 4% in 2010, and will increase by a further 3% by 2011 meeting environmental, social and economic aspirations. Reduced waste creates a higher product yield (94% in 2010 and approximately 97% in 2011) from purchased yarn, saving between 5-7% of total yarn cost.

Yarn Waste3%

Yarn Projection 2011

Yarn Used97%

Yarn Waste6%

Yarn Purchased 2010

Yarn Used96%

Yarn Waste10%

Yarn Purchased 2008-2009

Yarn Used90%

“Manufacturing waste from knitting machines in 2007 was 1.96%; in 2008% it was 1.026%. At the beginning of 2010 it has been reduced to 0.9% waste. Purchased cones of yarn left over from product runs are now used in full garment machine process to make small items. This process will reduce waste to 1% of purchased yarn and increase revenue per cone.”

- Michael Stewart

Merino PossumHead Warmers

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What drives our Practice?An interwoven framework is used to convey the extent of the Untouched WorldTM commitment towards sustainable practice.

Sustainable practice is not viewed as a stand-alone concept that supports the business, but as an integral interconnected part of the business DNA. The DNA model is underpinned by a shift in thinking (awareness, understanding and responsibility) and a shift in action (exploration, experimentation and implementation) through all dimensions of the business process.

Interconnected thinking and action across the business provide a platform for innovation, change and new ways of doing things.

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Framework forChange...

Unlocking the business potential requires an alignment between the way we think and how we act (practice).

At Untouched WorldTM the aim is to achieve greater efficiency, less environmental impact and better conditions for supply chains. The change process is based on shifting thinking and behaviour through practical experience and improving workplace practice. While continuing to make use of general sustainability indicator frameworks, the Untouched WorldTM model goes beyond a mechanistic approach and uses a range of tools that have been customised to suit the company’s aspirations. This approach focuses on how the company addresses the social, economic and environmental implications of sustainability.Customised tools are used to gather data, guide practice and identify risks and opportunities. The Untouched WorldTM approach to sustainability is an inclusive process that engages staff in different parts of the company, both individually and collectively to unlock the business potential.

Risk Management

Risk assessment and management is a critical aspect of the Untouched WorldTM approach to sustainable practice and considers environmental (ecological limits) social (risk to brand, social justice, responsibility and compliance) and economic (financial viability) factors. The tension for the business is balancing and maintaining financial bottom line outcomes while trying to redesign the business model and practicetowards an ‘environment first’ systems thinking approach. Risk analysis forms have been developed to review stakeholder and supply chain partnerships, and review specific issues that have the potential to take the business away from its core aspirations (also see stakeholder partnership process). Working withour customers, suppliers and stakeholders is essential if the business is to achieve its sustainable practice aspirations.

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A shift in Thinking

A shift in Practice

Framework forChange... CEO Commitment Driving

ChangeWorking Beyond

ComplianceSkilful

CommunicationBreaking

New GroundReinforcing

Brand Aspirations,Beliefs and

NeedsCEO Vision and Aspirations

SustainabilityAdvisor Guiding

Practice

A Shift inThinking

Sharing What We Do

Identifying RisksImpacts andOpportunity

Establishing and Embedding New

Behaviour

Learning Together and

Harnessing Collective

Knowledge

Developing New

Partnerships

Education Focus Workplace Collaboration

5454

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Community Education ProgrammesUntouched WorldTM Charitable Trust

An important question for Untouched WorldTM to answer was: ‘What difference could be made with the profits of the company that couldn’t be done through the business alone?’

The result has been the set up and funding of the Untouched WorldTM Charitable Trust through company profits. The corporate board and Charitable Trust board cooperate closely to align the sustainability aspirations of both organisations. As a result both organisations mutually benefit and reinforce each other. The more successful the company is, the more funding can be provided to the Charitable Trust.

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Clinton GlobalInitiative

Untouched WorldTM Charitable Trust has partnered with the Clinton Global Initiative and is currently working closely to implement the following commitment:

We commit to raising the health and wellbeing of the current and future generations by teaching comprehensive awereness programmes for society to use as basic templates for building a better world.

Through designing and initiating such programmes, current problems will be solved and future unnecessary ones will be prevented. The practical work on our CGI partnership Water Wise programme will focus on water as a resource for present and future generations.”

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Clinton GlobalInitiative

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Performance, Benefits and Impact

Sustainable practice at Untouched WorldTM is both an action and a process. The staff education process has created an appetite for change, and has shifted thinking. Staff have been encouraged to explore new ways of working and ‘walk the talk’. Attracting new talent is a positive outcome when business practice aligns itself to a high level of corporate responsibility.

Actions have led to new behaviour and new ways of conducting business. Recovering materials, reducing landfill waste, water conservation and working to reduce energy use have all improved our environmental footprint. Designing quality products with minimal environmental impact and placing higher expectations on suppliers encourages greater alignment with our sustainability aspirations.

Improved performance has led to increased stakeholder relationships and a positive feel good factor attached to the brand. As a result the company was not adversely affected by the economic downturn in 2009, driven by the values, priorities and change that underpin the sustainable practice agenda.

Inclusive partnershipsStakeholder partnerships, supply chain reviews and customer feedback are all key aspects of the Untouched WorldTM sustainable practice journey. Regular interaction with suppliers, stakeholders and customers allows Untouched WorldTM to address issues and opportunities quickly. Constant feedback, innovation and challenge from staff provide a fertile environment for change, re-design and integration

of new practice.

Informative processUntouched WorldTM has spent the last two years reviewing data and introducing new data collection processes to further ensure sustainable practice is interwoven through the business model. Data is used in a ‘measure to manage’ model to inform decisions and actions.

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Performance, Benefits and Impact

A brief snapshot of environmental, social/cultural and economic benefits and impacts identified. This provides a broad overview and builds on what we have done.

Responsibility Untouched WorldTM has developed a range of policies, standards and guidelines to inform its sustainability journey. Third party verification has helped inform these documents. Implementation of new standards and guidelines is ongoing.

84%

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ble

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OurContribution

The biggest contribution this business can make to a positive sustainable future is to design clothes and products that reduce our impact on the environment, and in doing so, contribute positively to the people engaged in producing the garments and products.

We can do this by making garments that deliver more wears for our customers. The process of creating a garment and delivering it to market has an environmental impact, regardless of what it is made from. From raw material through production to grave and point of sale, the environmental impact of a garment is minimised over the number of wears. We create garments that deliver more wears by using fabrics that hold their shape, colour and general quality over many wears. We design contemporary classic designs with a unique edge that transcends fashion-creating wardrobes. They are versatile, fewer pieces are worn more often. We reduce the environmental impact throughout the creation of each garment by:

using organic and sustainably produced fibres

up-cycling; recycling and closed system processing

creating, where possible, fabrics and garments that need less washing; are washable and easily dried considering the end of life of the garment, a complex consideration to minimise the garment ending up in landfill and to optimise post-life environmental impact

considering shipping and packaging impacts

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OurContribution

However, we have found that what seems, at a glance, to be a more sustainable option often creates other issues when we examine the full life-cycle process. We are constantly checking out new ideas and exploring advances in technology that will assist us to optimise our overall impact.

The complexity of sustainable practice requires an in-depth examination of the business and how we do things. This process takes time, effort and energy to implement and requires us to really reconsider how we do things. However, the environmental, social and economic outcomes outlined in this report have definitely been worthwhile. We have continued to reduce our impact, and we have changed the way we do things. We still have things to work on and we are always keen to hear about new or better solutions to operate within ecological limits.

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Our People...

Our people are innovative, collaborative, care for the planet and are prepared to make a difference.Here’s what they have to say...

“Sustainability dinner was the best

professional development exercise

I have ever been on. Great fun

and learnt heaps!”

- Marion

“Nice environment, supportive team

and good work ethics.

This job has opened my eyes up to

sustainability and what it means!”

- Amit

“The atmosphere, friendly people and working

in a good cafe, with high quality food, is

fun, I really like the garden and natural

environment. It is good to see the cafe team

working towards sustainable practice.”

- Donna

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Our People...

The friendship, fun and support for staff in the factory is the main reason I enjoy working here. -Dennis

Everyone gets a card on their birthday and business success is celebrated with staff on a weekly basis.- Jill

People in the factory get a buzz out of being creative and innovative in reducing yarn and fabric waste. It has become a challenge for some people. -Margaret

I enjoy wearing the company's clothing brands because they last. Some staff place items on lay by and pay them off because they know the quality of the product. -Fiona

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Peer Reviews of this Document

The honest truth for most companies is that sustainable development remains an add-on. To remotely meet the challenges we face today, UK Sustainable Development Commission Chair, Jonathan Porritt, suggested sustainable development needed to be not left on the fringes but put at the heart of things - it needed to become the central organising principle underpinning all our lives. Reading Untouched World's Sustainability Statement, it is clear environmental sustainability resides at their heart. They understand the need for change at their core. A rare endeavour indeed, and as they make great strides to make sustainable development their key organising principle, they offer a genuine beacon of hope to others. Markus J. Milne, Professor of Accounting, College of Business and Economics, University of Canterbury

“Corporate reporting on sustainable best practice varies widely - most in terms of what constitutes ‘best practice’. Accepting that, at day’s end the best reportage is about authenticity and integrity in the marriage between a company’s values and how those values are expressed in the daily practicalities of the journey (as Ray Anderson puts it), up the many faces of ‘Mt. Sustainability’. Untouched World has very high aspirations and it has been a privilege for me personally to play a small, ongoing role in their formation and execution. But although it’s ‘been hard at it’ for over 10 years, and has received a plethora of accolades along the way, UW is not (yet) a perfect show-case for best practice, no one is. This report demonstrates that fact with a high degree of transparency - which should be applauded. Therein lies the essence of both the company’s internal value proposition and its value-add to those externally who may want to join the journey.” Mark Prain, Executive Director, Hillary Institute of International Leadership

“Applying a systems concept such as sustainable development at the organisational level provides a significant challenge. It is good to see organisations like Untouched World trying to grapple with these issues. I particularly appreciated their acknowledgement of issues such as accountability, social justice and the limits to growth which are ignored in many corporate social and environmental reports. I look forward to watching the ways Untouched

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World continue to develop reporting of their performance against their economic, social and environmental aspirations. In terms of transparent reporting, I would encourage them to think about reporting on targets against which future performance might be assessed (e.g. reduction of ecological footprint, workplace diversity, fair trade wage and supplier payments, occupational safety and health) and engaging their various stakeholding communities in these endeavours. This might help to further illustrate some of the tensions Untouched World recognizes for business in the sustainability concept. Too often, corporates gloss over these in pursuit of a ‘business case’ approach to sustainability which focuses on simple win-wins.”

Judy Brown, Professor of Accounting, School of Accounting and Commercial Law, Victoria University of Wellington

‘There is an ancient Chinese saying that ‘when the winds of change blow, some build walls while others build windmills’. There is a storm, rather than a gentle wind, blowing at the current time regarding the need to change the ways in which we treat planet earth. Part of this involves the need to achieve sustainable development, which involves a balanced blending of the natural, economic and social environments. This is a major global concern and challenge for all individuals, communities and societies, regardless of whether they are in developed or developing countries. The challenges are far too large and important to be left just to Governments to handle. Success will only be achieved through effective partnerships between individuals and groups in civil society, various levels of government and, in particular, by fully involving the business sector.

In this regard Untouched World New Zealand is a very positive role model for the corporate sector. It is a powerful, giant ‘windmill’ on the New Zealand and world landscape that is addressing the challenge of sustainable development head on, by turning environmental sustainability problems and challenges into opportunities for the betterment of our planet and humankind.’

Professor Rupert Maclean, former Director, UNESCO-UNEVOC International Centre for Education, Bonn, Germany; currently Chair Professor of International Education and Director of the Centre for Lifelong Learning Research and Development, the Hong Kong Institute of Education

www.untouchedworld.com

Untouched Worldtm Retail StoresAuckland: 20 High Street, Auckland, Ph 09 303 1382

Wellington: 147 Featherston Street, Wellington, Ph 04 473 2596Christchurch Flagship Store: 155 Roydvale Avenue, Christchurch, Ph 03 357 9399Christchurch Downtown Store: 301 Montreal Street, Christchurch, Ph 03 962 6551

Queenstown Store: Eichardts Building, The Mall, Queenstown, Ph 03 442 4992 Worldwide Online Sales: www.untouchedworld.com