Environmental and Climate Policy

Applicability

This Environmental and Climate Policy applies to all facilities and brands owned and/or operated by Wheat A/S including its subsidiaries. It distinguishes between two scopes of applicability:

1) facilities within Wheat’s control (operations), where Wheat is directly accountable for policy implementation and environmental and climate management and performance.

2) facilities within Wheat’s scope of influence (supply chain), where Wheat does not have direct operational control.

Scope

This policy defines Wheat's focus impact areas and commitments related to climate and environment. Wheat identifies the following environmental and climate impact areas related to its business:

1.     Greenhouse gas emissions

2.     Energy type and use

3.     Water consumption and recycling

4.     Chemical use and management

5.     Natural habitats, ecosystems, and biodiversity

6.     Animal welfare

7.     Circularity

Specific supplier requirements and expectations to environmental and climate stewardship are set out in Wheat’s Supplier Code of Conduct. 

Environmental and climate due diligence

Wheat conducts environmental and climate due diligence to identify, assess, prevent and mitigate its actual and potential adverse impacts across its own operations and in the supply chain. The process is guided by OECD’s guidelines. Efforts are prioritized based on severity and likelihood of impact. Roles, responsibilities and procedures for implementing environmental and climate due diligence are set out in Wheat’s Environmental Management System and Due Diligence process manual.

Greenhouse gas emissions

Wheat annually measures and reports on greenhouse gas emissions across its value chain (Scopes 1, 2, and 3) and dedicates activities to reduce emissions. Baseline emissions and notes on method and data quality is included in Wheat's most recent Climate Report.

Energy type and use

Wheat monitors energy type and energy consumption at its own facilities and strives to use certified renewable energy, such as renewable energy certificates, to the extent possible. Wheat monitors energy type and consumption at Tier 1 suppliers, and engages with relevant suppliers on renewable energy transition, while recognizing that this is out of Wheat’s direct control. Renewable energy claims must be documented for Wheat and suppliers alike.

Water consumption, recycling and treatment

Wheat monitors water consumption at its own facilities, which is limited to household use. Wheat requires suppliers to comply with wastewater treatment requirements, and recommends suppliers to be guided by the ZDHC Wastewater Guidelines and a prohibition on untreated discharge.

Wheat expects suppliers to implement water stewardship practices, particularly at wet processing facilities, and to conduct water risk assessments for facilities located in water-scarce areas, recognizing that these facilities are outside Wheat's direct control.

Chemical management

Wheat is committed to minimizing chemical-related risks across its operations and products, through compliance with the restricted substance lists and certification requirements set out below.

Chemical use in manufacturing

All chemical inputs are expected to comply with the ZDHC Manufacturer Restricted Substance List (MRSL). Where a product carries a third-party certification (e.g. GOTS, GRS, OEKO-TEX Standard 100), chemical inputs must comply with that certification's requirements. Wheat requires suppliers to manage and dispose of chemical and hazardous waste in accordance with applicable legislation and industry guidelines.

Chemicals in final products

Wheat operates test programs for products certified to the GOTS or OEKO-TEX Standard 100. These products account for approximately 85-95% of Wheat’s total textile styles.

Natural habitats, ecosystems, and biodiversity

To prevent and mitigate risks of harm to natural habitats, ecosystems and biodiversity in our raw material sourcing, Wheat prioritizes third-party certified materials where relevant and feasible, such as organic cotton, responsible wool and recycled synthetic fibers. 

Global Organic Textile Standard

Fibers must not come from production systems that erode ecosystem functioning, contribute to deforestation, or threaten biodiversity and habitat conservation (GOTS v8.1, §2.1.6, p. 4). Organic fibre must come from producers registered in the Global Fibre Registry, with documentation to back up production claims (§2.1.7). Fibres are excluded where there is irrefutable evidence of a persistent pattern of land grabbing (§2.1.4).

Wheat is certified to the Global Organic Textile Standard, Control Union, GOTS-20938.

Responsible Wool Standard

Each RWS-farm must have a biodiversity management plan (LM2.1). Grazing must be managed to protect native vegetation and wildlife, and degraded land must be identified, with restoration measures set out in the plan (LM2.2). Invasive species may not be introduced and must be controlled (LM2.3). Farms must reduce livestock–wildlife conflict and are encouraged to maintain known migration corridors. Hunting protected, threatened or endemic species is prohibited. Lethal predator control is allowed only as a last resort, and poison, leg-hold traps and snares are banned (LM2.4–2.6). Deforestation and conversion of natural ecosystems are prohibited, with a cut-off date of 1 June 2016. Native vegetation, hedgerows and large native trees must be kept (LM2.7). Farming must not degrade the values a Protected Area or Key Biodiversity Area is designated for (LM2.8). Water bodies must be conserved, and natural wetlands must not be drained (LM2.9).

Wheat is certified to the Responsible Wool Standard, Control Union, 1198955.

Global Recycled Standard

The standard does not include direct requirements for protection of natural habitats, ecosystems and biodiversity. Sourcing recycled synthetic fibres is part of Wheat's strategy to reduce reliance on virgin fossil-based materials such as nylon and polyester, and the potential adverse impacts connected to crude oil extraction.

Wheat is certified to the Global Recycled Standard, Control Union, 1198955.

Animal welfare

Wheat sets standards for safeguarding animal welfare across its supply chain, applying the Five Freedoms as guiding principles. Wheat requires suppliers using animal-derived materials to comply with recognized welfare and traceability standards, such as the Responsible Wool Standard (RWS), and prohibits banned practices and the use of endangered or protected species (CITES), while recognizing that supporting documentation is not always available across the supply chain.

Circularity

Wheat builds circular principles into its design guidelines and business model where feasible and applicable. This includes but is not limited to: 1) using recycled content in its collections where feasible, 2) integrating design principles that support extended use, repairability and recyclability, 3) considering use-phase implications such as microplastic shedding, and 4) providing guidance on product care, resale options (currently in Denmark and Germany) and repair services (currently in Denmark). 

Wheat monitors waste at its own facilities. Waste is sorted and recycled to the extent local waste management systems allow. Wheat monitors and engages with suppliers on improving waste management where necessary, recognizing that e.g. diversion from landfill depends on local infrastructure and facilities outside Wheat's direct control.

Reporting

Environmental due diligence is monitored on an ongoing basis by the impact manager, and reviewed as a minimum once a year. Climate reporting is done annually per fiscal year.

Governance and implementation

Wheat commits to comply with all applicable environmental laws, regulations and standards in the markets where it operates. This Environmental and Climate Policy forms part of Wheat A/S's overall Responsibility framework and should be read in conjunction with Wheat’s Policy on Responsible Business Conduct, Supplier Code of Conduct, Environmental Management System, Due Diligence Commitment, Due Diligence Process Manual, and latest version of Wheat’s Certifications process manual.

Oversight of environmental priorities is managed by the impact manager in collaboration with management and with oversight from the Board. Ultimate responsibility lies with the executive management. This policy is reviewed when needed, and minimum once a year, and updated as required to reflect regulatory developments, business changes, and improved practices.