Driving positive impact by prioritizing Individuals, Planet, Ecosystems

Our Sustainability Priorities

Individuals
Workforce Resilience
We cultivate a resilient workforce by empowering individuals to achieve their utmost potential and embrace diversity and agility. To accomplish this, we prioritize training, education, and capacity building for our employees, while simultaneously fostering a fair and inclusive environment.
Wellbeing
Our commitment to creating a safe and healthy workspace goes beyond mere physical measures. We empower our employees to make informed choices and prioritize their well-being in every aspect of their lives, encompassing physical, financial, social, and psychological dimensions.
Nurturing the holistic
development of
our employees
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Planet
Decarbonization
Aligning with the global objective of keeping warming “well below” 2°C, we are committed to decarbonization by aiming to achieve net-zero within our own operations by 2050 and. To accomplish this, we are dedicated to enhancing energy efficiency and investing in renewable energy sources.
Water Stewardship
Conscious freshwater consumption and water pollution prevention form the cornerstones of our responsible water stewardship practices. Through sustainable water management strategies, such as prioritizing water efficiency enhancement, promoting water reuse and recycling, and implementing zero-input, zero-output solutions, we strive to preserve this invaluable resource for future generations.
Circularity & Waste Management
We embrace circularity by reducing unnecessary production and extending the life cycle of materials through practices like reuse, repair, recycling, repurposing, and enhancing durability. We actively incorporate circularity principles in our products and operations whenever feasible. We also implement robust chemical and waste management systems to ensure responsible disposal when it is unavoidable.
Reducing the
enviromental footprint
of our operations
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Ecosystems
Technology Partnerships
To cultivate innovative solutions for sustainability challenges, we foster collaborations and actively invest in and incubate promising projects. By leveraging our resources and expertise, we aim to drive meaningful changes and contribute to a more sustainable future.
Supply Chain Responsibility
We commit to creating a responsible and transparent supply network by enhancing supply chain traceability and collaborating with our partners and suppliers, with the aim of collectively establishing a shared goal and standard prioritizing ethical practices and sustainability across our supply chain.
Community Engagement
Partnering with NGOs and other institutions, we address educational needs and promote the overall well-being of vulnerable populations. Moreover, we create platforms and opportunities that facilitate connections among like-minded individuals and organizations who share our vision of a more sustainable world. Through these partnerships and collaborations, we aim to make a positive and lasting impact on the communities we serve, contributing to a brighter future for all.
Forming collaborative
networks towards
shared goals
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In line with UNSDGS…

UN Sustainable Development Goal 1: No Poverty, represented by a family with children on a red background

UN Sustainable Development Goal 2: Zero Hunger, represented by a steaming bowl on a yellow background

UN Sustainable Development Goal 3: Good Health and Well-Being, represented by a heartbeat line and heart on a green background

Promoting holistic wellbeing by supporting the physical, financial, social, and psychological health of our employees and members of our surrounding communities.

UN Sustainable Development Goal 4: Quality Education, represented by an open book and pencil on a red background

Promoting holistic wellbeing by supporting the physical, financial, social, and psychological health of our employees and members of our surrounding communities.

UN Sustainable Development Goal 5: Gender Equality, represented by a gender symbol on a red background

UN Sustainable Development Goal 6: Clean Water and Sanitation, represented by a water drop on a blue background

Supporting the industry's water footprint reduction through practicing responsible water stewardship and investing in water-saving innovation.

UN Sustainable Development Goal 7: Affordable and Clean Energy, represented by a sun on a yellow background

Decarbonizing by investing in renewable energy generation and innovating towards greater energy efficiency.

UN Sustainable Development Goal 8: Decent Work and Economic Growth, represented by a graph with an upward arrow on a dark red background

Prioritizing people by ensuring a safe and fair working environment, alongside education and development opportunities for upward mobility.

UN Sustainable Development Goal 9: Industry, Innovation, and Infrastructure, represented by a cube structure on an orange background

Transforming the textile industry through research, development, and promotion of green technology.

UN Sustainable Development Goal 10: Reduced Inequalities, represented by arrows pointing in opposite directions on a pink background

Ensuring inclusive growth by promoting diversity and equal opportunities in the workplace.

UN Sustainable Development Goal 11: Sustainable Cities and Communities, represented by buildings on an orange background

UN Sustainable Development Goal 12: Responsible Consumption and Production, represented by an infinity loop on a brown background

Striving to achieve fully responsible and sustainable product life cycles, through internal production management and meaningful partnerships.

UN Sustainable Development Goal 13: Climate Action, represented by a globe on a green background

Integrating climate change measures into our strategy and building a climate-conscious community with our stakeholders.

UN Sustainable Development Goal 14: Life Below Water, represented by a fish and water waves on a blue background

UN Sustainable Development Goal 15: Life on Land

UN Sustainable Development Goal 16: Peace, Justice, and Strong Institutions, represented by a dove holding an olive branch and a gavel on a blue background

UN Sustainable Development Goal 17: Partnerships for the Goals, represented by a floral emblem on a blue background

Our Sustainability Report Key Insights

Individuals

Planet

Ecosystem

Workforce Resilience is firstly about helping our employees survive in and adapt to an ever-changing world. Therefore, we focus on training our people to meet upcoming trends and develop job-specific knowledge and skills that help them thrive within the company and larger job market. We offer opportunities through our online and offline learning channels, as well as through the subsidy of external education and informally with the introduction of new technology.

Workforce Resilience is also about embracing diversity to enhance the group’s overall adaptability. A diverse and inclusive collective is more likely to encompass a range of skills and experiences that can help us respond to new challenges and opportunities. Therefore, we strive to better include different ages and genders in our workforce, while harnessing the power of local talent.

8.23

Learning Hours per Employee

90%

Senior Leadership Comprised of Local Talent

Our definition of well-being covers a range of topics beyond traditional understanding, which tends to focus on physical health. While we place a big emphasis on protecting the safety of our employees from injury in the workplace as well as from chronic disease, we also consider other forms of wellbeing to enhance the personal and professional lives of our people.

Recognizing that basic financial stability and adequate emotional and social support are all key contributors to the quality of life we lead, we strive to equip our people with the skills, resources, and community necessary to nourish these aspects. We believe that doing so will also allow them to improve focus and performance in the workplace to bring out their best selves.

0.06

Reportable Incidents (per 200,000 working hours)

Exploring Mental Well-being through Art Therapy: We encourage our employees to embrace non-traditional means of caring for their emotional well-being, such as through immersion in art. Between the months of March and November, the Hong Kong office held a series of free art therapy workshops to help employees relieve stress and practice mindfulness. The classes, which varied from mandala drawing, to dream catcher making and coaster weaving, were conducted by a registered art therapist on-site. Participants were also offered a light lunch during the sessions.

As the world moves to keep global surface warming below 2 degrees above pre-industrial temperatures, we recognize the impact that climate change will have on us, as well as the role we play in perpetuating it. It is thus imperative for us to prioritize decarbonization in our operations as we grow.

Decarbonization means not only transitioning away from fossil fuels to cleaner, renewable sources of energy, but reducing our total energy consumption to be feasibly supported by alternative sources of energy. In this past year, we have been working to increase our solar power capacity and improve energy efficiency in our operations to support this.

43,392

tCO2e of GHG Emitted

Net Zero Goal

Carbon Neutral by 2050: In October 2023, we took a step forward by publicly pledging to achieve carbon neutrality by 2050. We understand the urgency of addressing the environmental challenges of climate change. Moving forward, we will develop detailed action plans and roadmaps that will guide our progress towards this ambitious goal.

Freshwater is a vital resource for humanity, yet its availability is threatened by increasing water demand and the impacts of climate change. Within our operations, a significant portion of water consumption is attributed to our production processes. Recognizing this challenge, we actively seek practical ways to address the issue of water scarcity within our operations.

Focusing on “purify” and “reduce” from our three-pronged approach to water stewardship, we have placed great effort this year in practicing responsible effluent management and driving down freshwater consumption through reuse and recycle operations.

150,055m³

of Water Consumed

51,081m³

of Water Recycled or Reused

The global economy is characterized by persistent overproduction and overconsumption. In the relentless pursuit of maximized profits and consumer convenience, our planet's resources are being rapidly depleted while the waste crisis worsens. In our capacity as a producer, we strive to reduce our environmental footprint through responsible production and waste management practices, by embracing the potential of circularity.

Our approach spans the whole product life cycle from design to end-of-life handling. This has included efforts to minimize waste through better quality management, a transition into digital sampling, conscious material choices, as well as the diversion of generated waste from landfills.

7,594

Digital Samples Created

4,390

Metric Tons of Production Waste Generated

As we navigate our way into a more sustainable future, community-wide cooperation for innovative solutions is crucial. Change requires bright minds to combine with adequate resources, a clear vision, and believers. Taking advantage of our knowledge and expertise in the textile industry, we seek out partners that share our values and create meaningful networks for collaboration.

In this first year, we have engaged in a variety of partnerships, including research and development projects with technology and academic institutions, investments into meaningful startups, and the commercialization of ground-breaking technologies.

ECOHUES™ Waterless Dyeing by Exponent Envirotech: ECOHUES™ Waterless Dyeing is a patented technology pioneering the ability to dye natural fibers at an industrial scale without requiring any freshwater input. Consisting of 1) a proprietary organic dyeing medium, 2) a set of production control parameters and equipment, and 3) an industrial system design that allows the medium to be fully recycled, ECOHUES™ Waterless Dyeing targets one of the most significant environmental pain points of the textile industry—overconsumption and pollution of water resources in dyeing.

For brands and manufacturers, it is crucial to recognize that a commitment to sustainability extends beyond one's own operations. The environmental and social impact of products is deeply intertwined with the practices of the entire supply chain—from raw material suppliers to logistics providers. That is why Tessellation collaborates with companies and uses its influence to develop better practices for the organizations involved.

So far, our focus has revolved around the management of upstream partners to ensure that our suppliers do not cause social or environmental harm. We are further reviewing our procurement practices to ensure consciousness of the indirect impact of our supply chain choices, Supply chain responsibility starts with identifying upstream and downstream partners that align with our sustainability values. We consider the shared commitments they may have towards sustainability as well as the practical impact their role in our supply chain has on our social and environmental footprint. Throughout the duration of our partnerships, we regularly assess their performance and encourage their sustainability journey.

77%

of Procurement Budget Spent on Local Suppliers

Sustainability is about meeting the needs of all people and weaving a better future together. As we pursue growth in our business and workforce, it is important that we bring our surrounding communities up with us as well and recognize the role they play in achieving our shared goal.

This year, we have partnered with a number of experienced, like-minded organizations to empower and effectively address needs in the areas we operate. At our manufacturing sites, we focus on donating our resources and time to the immediate community, while at the brand and group-level, we aim to use our expertise to educate and mobilize.

Lead the Wave Forward Campaign by DETERMINANT: In August 2023, DETERMINANT launched a 3-week “Lead the Wave Forward” campaign to raise awareness about the water footprint of the fashion industry and promote environmentally conscious wardrobe choices. The edu-retail initiative utilized its industry expertise to shed light on the consequences of the current state through its store decor and introduced the first cotton, waterless dye collection as an example of the industry’s potential for change. The campaign also included a charitable component, with DETERMINANT pledging to donate money to its strategic partner, A Drop of Life, for every post using its original Instagram filter. The proceeds went to A Drop of Life's biosand filter project in Cambodia, which disseminates innovation that can filter out bacteria and contaminants in dirty water to make it suitable for drinking.

Driving positive impact by prioritizing Individuals, Planet, Ecosystems ​

In line with UNSDGS…​

Driving positive impact by prioritizing Individuals, Planet, Ecosystems

In line with UNSDGS…