1. Strategic Analysis and Action

The company declares whether or not it pursues a sustainability strategy. It explains what concrete measures it is undertaking to operate in compliance with key recognised sector-specific, national and international standards.

The shared Group functions like Digitalization and IT, Logistics, CSR and Compliance are organized as strategic central services units and report directly to the CEO and Chairman of the Group. HR and Finance report to the President of Fenix Outdoor. All activities under the sustainability framework are centrally organized and implemented under a common structure by individual brands and entities. Through the centralization in certain areas (e.g. Brands Unit or Retail Unit) certain functions were created to serve all parts of these new units. The CSR Department had prepared for this as early as 2018 and therefore continues to serve its internal stakeholders accordingly. This allows the responsible managers to identify the appropriate specific approach and goal setting. The speed of development and the focus of the entities within Fenix Outdoor Group vary, but all follow the same framework. 

The CSR/Sustainability organization in 2021 comprised three CSR managers in the central office, one CSR manager at Fjällräven and one CSR manager at Royal Robbins, also servicing North America. All of them report directly to the Group’s Chief Sustainability Officer (CSO).

The CSO reports to the owner, CEO and Executive Chairman of the Group. The sustainability strategy has been developed in 2012 and updated in 2019, it is called "The Fenix Way". The agenda 2025 (as of page 41 of the document) shows the areas we have identified as being material and the CSR Reports are continues progress reports on those core areas. Some of the action points in 2021 referring to the sustainability strategy are described below. The main activities were the revision of the interior design guideline for a more sustainable store concept in cooperation with Cradle2Cradle; the expansion of our packaging memorandum with a section on a more sustainable polybag design; the continuation of switching to renewable energy in all global locations or the use of RECs and other systems alike; the growth of our "A greener Choice" tool and the development of a brand evaluation section; the initiation of several Life Cycle Assessment for various products; the development of new material strategies and the application of updated information from Textile Exchange, the MSI and other sources.

We comply with the GRI Reporting Standards, the UN Global Compact, the California Transparency in the Supply Chain Act, The UK Modern Slavery Act, the CDP and other standards or requirements. All information can be found at www.fenixoutdoor.se/hallbarhet.

2. Materiality

The company discloses the aspects of its business operations that have a significant impact on sustainability issues and what material impact sustainability issues have on its operations. It analyses the positive and negative effects and provides information as to how these insights are integrated into the company’s processes.

In our CSR Report 2021 we describe how our sourcing strategy (own production in Europe and USA but also contracting in Europe, USA, and Asia), the way we produce our products and the way how we distribute, sell and ship our goods impacts material sustainability issues. On page 8 a revised materiality matrix is presented. The axes of the materiality matrix show the significant influence on decisions of stakeholders as well as the significance of environmental, economic and social impacts and therefore reflects the impact our business has on certain aspects and what we are impacted by. Climate change for example is one issue which covers both perspectives: Through the consequences of climate change, we might not sell specific products any longer because there is a lower demand. On the other hand, suppliers might not be able to implement productions because of certain climate conditions. Thus, there are impacts through and on our business activities. 

We are a company that aims at having full control over the value chain. We are operating own production sites, have an own retail network and our own online channels. However, we are also in the B2B business and do use agents or distributors in various locations. Against this background, we are a bit different from the general structure of our industry. We are an outdoor company, mainly producing textile equipments and, hence, face the same challenges as the general textile industry: lack of transparency in the supply chain (labor rights, human rights, wages), heavy reliance on synthetics and cotton resources, water use in dying processes, chemical use to achieve functionality, and operations in risk countries. However, since 2012 we have established tight controls, moved out of high-risk countries and shifted high amounts of our materials to recycled or organic sources. Our chemical management goes far beyond REACH (Registration, Evaluation, Authorisation of Chemicals) and is often a challenge for testing companies and suppliers alike. The retail arm is actively communicating sustainability attributes of products or policies of the industry to customers and users through "A Greener Choice" or appropriate articles and Podcast ("Neue Horizonte" - Germany). In our strategy 2025 we have identified climate protection (sourcing of renewable energy, efficient transportation, resource use reduction, innovative technologies) as one of the core areas we want to address and we have made progress we report. We also identified circularity, reduction of packaging and input materials of questionable origin as well as risk countries (defined no-gos) as areas, we are constantly addressing. We also want to engage people (walking with nature) and involve them in a more sustainable lifestyle through our internal "A Greener Choice" system, as it becomes visible in the 2021 CSR report.

At the Group level, our brands and retail companies developed a common and streamlined program of focus areas. We have addressed social compliance matters throughout the supply chain and within our own organization, in particular by carrying through on the recommendations we have received from our partners at the Fair Labor Association (FLA). As climate change is a global challenge, we now have the right resources, allowing us to address the importance of climate mitigation and positive climate action. In 2021, we conducted our yearly energy survey of all our retail operations in Europe and have begun to dive deeper into our Scope 3 emissions, which we are now capturing and calculating more and more.

To exemplify our materiality approach: Impacts of climate change will lead to a change in our product range and eventually the moving of sourcing and storage operations. There are risks (loss in market share) but also opportunities (new products, sellable in more markets). Outdoor companies can adapt quickly to changes and so can we. We see an increasing interest in the outdoors in various societies, leading to increased sales. The equipment needed becomes lighter and makes nature more accessible. On the other hand: through an extended production in various locations globally, we have an impact on resources used, transportation and by that also on climate change. Our aim is to reduce negative direct and indirect impacts -> see the chapters of our CSR Report explicitly dealing with Climate change and our resource strategy.

3. Objectives

The company discloses what qualitative and/or quantitative as well as temporally defined sustainability goals have been set and operationalised and how their level of achievement is monitored.

The Group's Sustainability Agenda is given in the Annex to our Fenix Way (which was lastly updated in 2019 and is still valid, view pages 41-43). Short- and midterm goals are described in each chapter of our CSR Report 2021. We identified these aspects through stakeholder involvement, industry initiatives, leveraging the knowledge of non-governmental partners and by identifying our own possibility to make meaningful changes. One of our core approaches is: we do our homework first. The central CSR Team sets the framework for all entities and controls progress. The Fenix Materiality Matrix guides us in setting the priorities. Our CSR Report is a progress report over the last calendar year. In addition, we have aligned our sustainability work with the SDGs, which are now mentioned on page 9 of The Fenix Way and which are also reflected in all projects we carry out (like carbon offset projects). For us, "leaving the basecamp in a better shape than we found it" is part of our corporate identity. Subsequently, our goals are to rapidly contribute to the 1.5 degree climate goal by 2030 to become "carbon neutral" and to reduce our resource usage. We therefore developed midterm and shortterm goals such as switching all operation to renewable energy, or to use RECs and similar tools to become carbon-neutral in our Scope 2 emissions, and to dig deeper into our supply chain. We started projects with suppliers to enhance their energy efficiency and well as raising awareness and suggesting the switch to new forms of energy supply (renewable like PV or at least away from coal). When it comes to resource reduction, new business models have been piloted and established like care and repair services in all our stores, second hand offerings as well as rental services. Here we are also working with suppliers to reduce pre-consumer waste and a switch of materials to more sustainable solutions (as suggested by Textile Exchange where all our textile brands contribute to the benchmarking reports or in applying the MSI of the SAC). In 2021, we held our regular CSR Stakeholder Roundtable with more internal participants than ever before. We remain committed to the principles of the UN Global Compact and have systematically addressed the Sustainable Development Goals (SDGs) in various workshops and online training sessions.

4. Depth of the Value Chain

The company states what significance aspects of sustainability have for added value and how deep in the value chain the sustainability criteria are verified.

We work with all business partners upstream and downstream to improve social and environmental aspects. As we are a house of outdoor companies, we have supplier to brands (e.g. manufacturing factories and their supplier up to Tier 4 of raw material production), hence, raw material and energy use and efficiency as well as labor conditions are important. For our own production sites (Vierkirchen, Tartu, Riverton, Debrecen) we focus on energy, materials efficiency and product shipment optimization. But for our retail business, other, external brands (as well as our own) are the supplying partners (e.g., Vaude, Deuter etc.). For all this we have our own logistics and distribution centers (energy and shipment efficiency are our topics) as well as sales channels including ecommerce. In our retail business we have created "A Greener Choice" as a tool to raise awareness among customers; in our supply chain we have collaborated with the Fair Labor Association, The German Textile Alliance and other stakeholders to assess and improve environmental and social issues. We conducted online trainings and have constant roundtables with selected suppliers to address relevant topics as wages, labor conditions, climate protection efforts or leftover usage. We believe our suppliers and retail partners are our long-term partners and therefore decisions and discussions are taken in consent and jointly. The training sessions we held in 2021 revealed that there is a high interest by our production partners to be on the CSR/Sustainability journey together with us and subsequently actively contribute to a more sustainable supply chain. We also use a blockchain technology to track and trace our supplying partners. With our partnership in the Sustainable Apparel Coalition we promote and apply the Higg Index Suite. Our progress in our supply chain development including environmental and social aspects are described extensively on pages 26-33 in our CSR Report 2021.

Key Performance Indicators to criteria 1 to 4