CORPORATE SUSTAINABILITY REPORT 2020 - Jacob Holm

 
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CORPORATE SUSTAINABILITY REPORT 2020 - Jacob Holm
CORPORATE
SUSTAINABILITY
REPORT

                 2020
CORPORATE SUSTAINABILITY REPORT 2020 - Jacob Holm
REPORT CONTENTS

                                                                                              Message from the CEO                          ..............................................................                                                   4

                                                                                              2020 Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    6

                                                                                              Selected Financial Figures                          ...........................................................                                                7

                                                                                              A Leading Innovator                      .................................................................                                                     9

                                                                                              Our Commitment to Sustainability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                          16
Jacob Holm & Sons AG                                                                                      ■   A Systematic Approach               ..........................................................                                                18
Picassoplatz 8
                                                                                                          ■   Horizon 2030          ..................................................................                                                      18
4052 Basel
Switzerland                                                                                   Reducing our Environmental Impact with Sustainable Solutions                                                              ..................                  28

                                                                                                          ■   Sustainable Manufacturing                .......................................................                                              30
This report provides the status of the sustainability work done by Jacob Holm & Sons AG for
                                                                                                          ■   Responsible products and innovation                      ..............................................                                       35
the fiscal year of 2020, covering the period from January 1st 2020 to December 31st 2020.
                                                                                              Our Role in Society                    .................................................................                                                      38
We welcome feedback, including suggestions, comments and questions.                                       ■   The Pandemic in the Community                        ................................................                                         40

                                                                                              People of Jacob Holm                          .............................................................                                                   44
Please direct any feedback to Carmelo Carrubba, Corporate Vice President of Strategy
and Sustainability, at carmelo.carrubba@jacob-holm.com.                                                   ■   Protecting our people during a pandemic                          .........................................                                    46

                                                                                                          ■   Employee Health and Safety                    ....................................................                                            47

                                                                                              GRI Index              ..........................................................................                                                             54

                                                                                              Key Performance Indicators                             ........................................................                                               58

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CORPORATE SUSTAINABILITY REPORT 2020 - Jacob Holm
SUSTAINABILITY IS                                                                                                                                                                                                            SUSTAINABILITY

A GLOBAL EFFORT
AT JACOB HOLM
At Jacob Holm we are committed to making a positive            the Jacob Holm process and the legacy of the Sontara®           Soultz, France, has doubled every year for the past 3 years   Achieving these goals will require new technologies, new
impact on the world - fostering the well-being of people,      Technology. I am encouraged to see the growing interest         while the same site is leading the way with zero waste        partnerships and new ways of working. Some of these
protecting the planet and contributing to the prosperity       in sustainability risks and opportunities from investors        to landfill. With the launch of project BOOST, we are         innovations will have to be developed in partnership
of our communities.                                            and the engagement from all stakeholders in creating a          increasing our operational efficiency even further. This      between public and private stakeholders, while some
                                                               sustainable world. Moving forward, we will continue to          enables us to reduce our consumption of energy and            are already available and need to be fine-tuned and
In 2020 the global pandemic affected everyone's lives          raise the bar and set new and higher sustainability targets.    water and bring down our environmental footprint even         implemented with speed and efficiency in coming years.
and tested the cohesion of our societies in ways we            Achieving these will help us mitigate sustainability risks to   further per unit of production.                               To make sure that we stay on track and make continuous
had not experienced before. However, amid the unique           the business that are amplified by increased pressure on                                                                      improvements, we will communicate updated 2025
challenges of 2020, our employees and our business             natural resources and climate change.                           Sustainability challenges are too wide and deep for           sustainability targets and strategies during 2021. I am
demonstrated how strong we are as a team. I would like                                                                         anyone to solve them in isolation. Therefore, Jacob Holm      convinced it will help us create value for our people, for
to thank all our people for their continued support for        The health of our commercial business enables us to             is partnering with our customers to generate sustainable      customers, for communities, and for society at large.
each other, for Jacob Holm and for our customers when          act on our commitment to sustainability and corporate           solutions through co-innovation. In support, we continued
it really mattered.                                            responsibility. In 2020 we delivered top line organic           in 2020 to promote the Jacob Holm sustainability
                                                               growth of 16% and an EBITDA at DKK 314 mill, a 135%             eCO2quation app that empowers customers to make
Both our people and our products played a role in              growth compared to 2019.                                        informed decisions and reduce the carbon footprint of
fighting the COVID-19 pandemic during 2020. We are                                                                             finished products.
humbled to see our products leave converting facilities        Being engaged in our communities is an essential part
as personal protective apparel to become part of the           of who we are at Jacob Holm. In 2020 we invested                As we move forward, we are aligning our sustainability
first line of protection for emergency response workers        in local communities, supported charities worldwide,            ambitions to the UN Sustainable Development Goals
around the world. To amplify our efforts, Jacob Holm           and our employees volunteered through our outreach              (the SDGs) and the Paris Agreement’s 1,5 °C climate
collaborated with local non-profits and business partners      programs, e.g. Asheville employees donated school items         goal. In doing so, we are setting the course towards a
to produce protective face masks and isolation gowns for       to children in need and Sontara collaborated with the           2030 horizon with the aspiration to become carbon
health care workers, first responders, adult care facilities   “Ciudad Para Todas” program to help training and finding        neutral, eliminate waste from our operations, grow our
and others in need.                                            jobs for people with special needs.                             100% recyclable or biodegradable product portfolio and
                                                                                                                               continue to create sustainable value to people in the
We have always believed that the success of our business       In parallel to our focus on the people dimension of             communities that we are part of.
depends on our people. Their health and safety must            sustainability, I am encouraged by seeing the growing
remain a top priority as we pursue our business goals.         commitment in the world to sustainability. As pioneers
In 2020 we continued our efforts to eliminate accidents        in natural fibers and leaders in sustainable solutions,
and enroll employees in our health care program.               we take on the responsibility to be part of the solution
                                                               to environmental problems and climate change. As an
As we create shared value for business and society, we         example of recent achievements, the share of recyclable
build on more than 226 years of Jacob Holm history and         or biodegradable products from our production site in
our heritage in combination with cutting-edge products,
                                                                                                                                             MARTIN MIKKELSEN
                                                                                                                                            CEO of Jacob Holm Group

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CORPORATE SUSTAINABILITY REPORT 2020 - Jacob Holm
SUSTAINABILITY

2020                                                         SELECTED FINANCIAL
HIGHLIGHTS                                                   FIGURES
                                                               FISCAL YEAR                                2020          2019                     2018

                                                               Revenue                                    2.638         2.271                     2.287

                                                               Ebitda                                     314            134                       140

                                                               Organic Growth                             16%            -1%                       1%

                                                               Total Assets                               1.621         1.586                     1.686

  60MM
  ESSENTIAL WORKERS
                         2,500
                        MEALS PROVIDED TO
                                                               Total Equity                               272            278                       317

     PROTECTED BY       ESSENTIAL WORKERS
                                                               Number Of Employees (FTE)                  772            673                       682
   SONTARA® GOWNS        & LOCAL FAMILIES
                                                                                                                        Units = Dkk Mill. / Source = Annual Report

       CO2

      6%
  DECREASE IN TOTAL
                          48%
                       INCREASE IN RATIO OF
                                                   22%
                                              DECREASE IN RECORDABLE
                                                                                           13%
                                                                                   INCREASE IN NUMBER
                                                                                                                       25%
                                                                                                                   DECREASE IN WATER
  CARBON EMISSIONS    WOMEN IN MANAGEMENT       INCIDENT RATE (RIR)*             OF FULL-TIME EMPLOYEES           CONSUMPTION PER KG
   PER KG PRODUCT*         POSITIONS*                                                                                 OF PRODUCT*

                                                                                                                  *COMPARED TO 2018 BASELINE

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CORPORATE SUSTAINABILITY REPORT 2020 - Jacob Holm
SUSTAINABILITY

                                                                                               A LEADING
                                                                                               INNOVATOR
                                                                                               Jacob Holm is a leading innovator of nonwoven fabrics and finished goods. We manufacture nonwoven
                                                                                               products for performance applications in personal care, hygiene, health care, beauty care and critical
                                                                                               cleaning, as well as high performance material for protective equipment and other highly technical
                                                                                               applications.

                                                                                               As a manufacturer of nonwoven products, we use natural and synthetic raw materials and hydro-entangle
                                                                                               them to a nonwoven fabric. Our fabrics are sold as roll goods to converters who produce the finished
                                                                                               product sold to end users. We perform converting activities for critical cleaning applications at some of our
                                                                                               production sites.

                                                                                               For generations, we have been highly focused on maintaining and developing sustainable products and
                                                                                               operations that minimize the environmental impact. Today, we offer sustainable solutions with fibers made
                                                                                               from natural and bio-degradable resources and free from chemicals and adhesives.

                                                                                                                                  NONWOVEN SUPPLY CHAIN

    RAW MATERIAL                         SUPPLIER                MANUFACTURER                         CONVERTER                                      SELLER                                     END USER
     ■ natural material from          pulp and paper producers   ■ produces nonwoven roll            transforms roll goods into                                                                 private consumers or
                                  ■                                                             ■                                           ■   global brand leaders and                   ■

    cellulose / cotton / pulp            ■ fiber producers       goods from staple fiber and              finished product                         leading retailers                           industrial customers
■   synthetic material from oil        ■ chemical suppliers       other raw material input      ■   sells under own brand or as
                                                                                                    a private label store brand
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CORPORATE SUSTAINABILITY REPORT 2020 - Jacob Holm
OUR PRODUCTS
                                                                                                                                                                                                            SUSTAINABILITY

AND MARKETS                                                                                                                 Jacob Holm commercializes four brands that are used for many different applications:

Jacob Holm serves customers all around the globe with our fabrics and solutions. Our primary markets are North                                              strong web formed by hydraulic
America and EMEA.                                                                                                                                           entanglement of various fibers

We organize our business in 3 business units:                                                                                                               sustainable and ultra-pure, no binders,
                                                                                                                                                            chemicals or adhesives
Sontara® Professional provides superior performing products for critical cleaning applications, a full value offering and                                   filtered water of drinking quality and our manufacturing
new product innovation to essential industries.                                                                                                             environment and air quality adhere to the highest standards

Health and Skin Care is a trusted partner to long term customers in Medical and Skin Care. We offer solutions
compliant with existing regulatory requirements, superior performance and brand value.                                                                                 STRONG                     PURE                   CERTIFIED

Personal Care is the leading co-innovation partner for global customers in consumer wipes, dispersible wipes and
                                                                                                                                                            patented dispersible wipe material with
hygiene products, enabling growth in sustainable solutions and circularity.
                                                                                                                                                            best-in-class dispersibility

                                                                                                                                                            100% biodegradable material, which is made of custom-designed
                                                                                                                                                            fiber blends from sustainable natural resources

                                                                                                                                                            softer and loftier than other commercially available offerings with
                                                                                                                                                            higher wet strength

                                                                                                                                                                     DISPERSIBLE             BIODEGRADABLE              SOFT ON SKIN

                                                                                                                                                            best fit in substrates for liquid handling and cleaning efficiency

                                                                                                                                                            best in class opacity, with a wide range of available basis weights

                                                                                                                                                            100% biodegradable and sustainable fabrics

                                                                                                                                                                    HIGH STRENGTH             HIGH OPACITY                NATURAL

                                                                                                                                                            a fabric with basis weights as low as 15 gsm, providing high
                                                                                                                                                            performance and soft comfort needed by end-users

                                                                                                                                                            the key features of SoftLite include excellent stretch and recovery,
                                                                                                                                                            ultimate softness at required strength, and skin sensitivity

                                                                                                                                                            our fabrics are engineered to meet the demands for wicking and fluid
                                                                                                                                                            distribution in disposable Hygiene products

               HEADQUARTERS                          SALES OFFICE                       PRODUCTION SITE
                                                                                                                                                                     LIGHTWEIGHT                STRETCH &                 LIQUID
                                                                                                                                                                                                RECOVERY                MANAGEMENT

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CORPORATE SUSTAINABILITY REPORT 2020 - Jacob Holm
SUSTAINABILITY

GLOBAL PRESENCE                                                                                                                                             JACOB HOLM SUBSIDIARIES

Jacob Holm Headquarters is located in Switzerland.
                                                                                                                                                                                  & SONS AG - SWITZERLAND
We manufacture nonwoven fabrics using proprietary technology in France and Spain as well as in the US in Tennessee
and North Carolina.

Our French facility in Soultz has been a zero waste-to-landfill site since 2013, and the most versatile plant able to serve
all our markets.                                                                                                                                                             & SØNNER HOLDING A/S - DENMARK

In Asheville, we have a high-speed line together with our latest brownfield investment - a proprietary, patent granted
air-lace line.

In our facilities in Old Hickory, TN, US and Asturias, Spain we manufacture roll goods for Health and Skin Care, Industrial
and High-Performance material applications leveraging the unique Sontara® technology and we have the capabilities to          & SØNNER A/S - DENMARK                                                                                     AG - SWITZERLAND

convert them into finished goods for Automotive, Aerospace, Printing, and other critical cleaning industrial applications.

Finally, we have sales offices located in every major market, including Asia and Latin America, to ensure proximity to our          INDUSTRIES INC. - US      OLD HICKORY INC - US                          A M E R I C A I N C. - U S                                INC. US
customers and close connection to local needs.

Our operational footprint reflects an optimal balance between local presence, diversification, and economies of scale.                                        ASTURIAS S.A.U. - SPAIN
                                                                                                                                  INDUSTRIES SAS - FRANCE                                                        JA PA N G .K

                                                                                                                                                                                                      NONWOVENS CO. LTD • CHINA

                                                                                                                                                                                                      SOUTH ASIA SDN. • MALAYSIA

                                                                                                                                                                                                              MEXICO S.A. DE C.V

                                                                                                                                                                                                               ARGENTINA S.R.L

                                                                                                                                                                                                                KOREA CO. LTD.

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CORPORATE SUSTAINABILITY REPORT 2020 - Jacob Holm
SUSTAINABILITY

OUR PHILOSOPHY
                                                                                                                                                                            LIFE AT JACOB HOLM                         WE ARE PIONEERS
Jacob Holm is more than 226 years old. We have a proud legacy of innovating and adapting to new needs of our                   OUR
                                                                                                                               CORE
                                                                                                                                                                         To develop unique nonwoven fabrics       We want to conquer new markets,
customers and society as we combine valuable lessons from centuries of Scandinavian heritage with pioneering
                                                                                                                                                                         that meet customers' challenges,         always. We developed SoftFlush®
products and process technology.

                                                                                                                               VALUES
                                                                                                                                                                         you need exceptional people with         FAST, a dispersible wipe that breaks
Our founder Mr. Jacob Holm opened a grocery store in Copenhagen, Denmark in 1794. Over the years, he ventured                                                            strengths that combine extensive         up like toilet paper and has the
into shipping and ships’ fittings, including the production of ropes. Over more than 2 centuries of evolutions, in the                                                   know-how with an entrepreneurial         strength of a wet wipe, and SoftLite,
1950’s the company started the manufacturing of synthetic fibers.                                                                                                        spirit. That is why at Jacob Holm        a high performing hygiene fabric with
                                                                                                                                                                         we nurture an open, multifaceted         basis weights as low as 15gsm. Such
As a natural extension to fiber production, the company established its first nonwovens operation in France in 1995. In                                                  and diverse culture. We encourage        developments are a testament to
2005, this was followed by the expansion to North America with the establishment of a first nonwoven production line                                                     our people to contribute innovative      our entrepreneurial spirit. We are
in North Carolina.                                                                                                                                                       ideas that drive the direction of our    also committed to exploring new
                                                                                                                                                                         company and market segments.             segments. This dedication makes us
Later, in 2014, Jacob Holm acquired the Sontara® business from DuPont. This expanded our global reach, more than
                                                                                                                                                                                                                  the pioneers of the nonwoven industry.
doubled our footprint in the nonwoven industry and extended our portfolio with new, high tech segments
and products.

                                                                                                                                       WE ARE YOUNG                             WE ARE DARING                            WE ARE HUMAN
The Jacob Holm Way
                                                                                                                               We are young in spirit. In spite of our   We dare, experiment, and try our         We are human, giving us the ability
Today, the Group remains privately owned by the Mikkelsen family who has guarded our values and culture                        long history, we continue to evolve       hand at every challenge brought to       to adapt to the expectations of
through generations.                                                                                                           and take risks. We continuously strive    us. We take risks, test and learn from   end users. Our products are part of
                                                                                                                               to add value to our products. We          our mistakes. We innovate to be at       everyday life; We listen to the needs
To be a pioneer and develop unique sustainable nonwoven fabrics and solutions that meet customers' and society’s
                                                                                                                               are agile as we constantly reinvent       the forefront of our technologies.       of end users to bring the smartest
challenges, Jacob Holm employs more than 700 people with exceptional ability.
                                                                                                                               ourselves and adapt to ever                                                        solutions to market.
Our people combine extensive know-how with an entrepreneurial spirit and sustainability as a core value in everything          changing markets.
we do, day in day out, and we have a young, daring and human spirit. This enables us to continue to evolve, despite our
long ancestry. This also allows us to take risks, to test and learn from our mistakes which in turn helps us to innovate and
be at the forefront of sustainable technological developments. All this gives us the ability to learn and quickly adapt to
the ever-evolving expectations of all our stakeholders and the needs of society.

Our values represent the foundation of every choice we make as we strive to realize our vision.
We refer to them as 'The Jacob Holm Way': S-SPEED.

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CORPORATE SUSTAINABILITY REPORT 2020 - Jacob Holm
OUR COMMITMENT                                                                                      Despite our long history, we remain agile and constantly reinvent our business, while being mindful of global

     TO SUSTAINABILITY
                                                                                                         sustainability challenges that impact markets, environment, people and communities. We are determined to do
                                                                                                         our part in solving these challenges.

                                                                                                         Our fundamental approach is to ensure that sustainability is an integral part of our business, and that we truly
                                                                                                         engage with our stakeholders on the matter. It is building on the firm belief that what is right for the people
                                                                                                         and the planet is right for the business. As such, sustainability is guiding us to take responsible decisions in
                                                                                                         every aspect of the business — from the innovative design of new, plastic-free or recyclable products, to the
                                                                                                         environmentally friendly use of water and energy in our manufacturing facilities that are working tirelessly to
                                                                                                         make responsible use of raw materials and reduce waste.

                                                                                                         The Mikkelsen family, owners of Jacob Holm, run a diverse forestry and agriculture business in Denmark and
                                                                                                         Sweden. The sustainability efforts on this land have taken shape over the past 3 decades and have led to an
                                                                                                         increase of the forested area of 19%, doubling the wetlands portion on former farm and forestry lands, PEFC
                                                                                                         certification for all forests, registering 7.5% of forests for biodiversity as primary objective and reserving 5% of
                                                                                                         farmland for fauna-improvements.

                                                                                                         Being actively engaged in the communities that host our facilities is a given for us. Wherever you find a Jacob
                                                                                                         Holm office or factory you will see that our people are involved in enhancing human well-being and helping
                                                                                                         those in need through donations or volunteering. Throughout it all, the health and well-being of our people is
                                                                                                         a key priority. Consequently, the enforcement of a zero-accident culture will forever be a core element in
                                                                                                         our approach.

                                                                                                                                               2017                              2020
                                                                                                                2016                   ■ Launch of award-
                                                                                                                                                                     ■  Launch of eCO2quation app                  2021
                                                                                                                                       winning sustainable
                                                                                                                                                                     ■  Maria Curran is named site
                                                                                                       ■ IDEA award for SoftLite,
                                                                                                                                                                     manager in Candler and is the
                                                                                                                                                                                                          ■ Jacob Holm is the first
                                                                                                                                       substrate for Baby Care
        2010                                                                          2015             a solution that enables                                       first female Jacob Holm plant        spunlace nonwoven
                                     2012                  2013                                        reduction of basis weight
                                                                                                                                       Branded player
                                                                                                                                                                     leader in the US                     manufacturer to join the
■ Launch of baby wipe                                                         ■ First SoftFlush®
                             ■ Launch of cotton   ■ Soultz becomes zero                                of nonwoven substrate                                         ■ Jacob Holm is rated by             UN Global Compact as
program with regen cotton                                                     nonwoven line (patent
■ Sontara® Spain kicks off
                             top sheet            waste to landfill site                                                                                             Sustainalytics and ranks #1          participant
                                                  ■ Obtained GOTS (Global
                                                                              granted) offering                                                                                                           ■ Jacob Holm issues
initiatives in support to                                                     unique dispersible and                                                                 in the textile sub-industry
                                                  Organic Textile Standard)                                                                                          ■ Jacob Holm wins 2020               the first Corporate
"Una Ciudad para Todos"                                                       compostable solutions
                                                  certification                                                                                                      Index Innovation Award               Sustainability Report

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CORPORATE SUSTAINABILITY REPORT 2020 - Jacob Holm
SUSTAINABILITY

         HORIZON 2030                                                                                                         ■   2030 Sustainability Visions and Goals
                                                                                                                              We lead the nonwoven industry sustainability journey through uncompromising commitment to run the most sustainable
                                                                                                                              manufacturing process, offer the most sustainable portfolio, be the most attractive employer and the most admired business in our
                                                                                                                              communities.

                                                                                                                                        Sustainable                Sustainable Solutions            Community Prosperity             People & Responsible
                                                                                                                                       Manufacturing               We develop solutions for          We enhance the quality                Business
                                                                                                                                     We pioneer sustainable          our customers that             of life in our communities         We promote diverse,
                                                                                                                                  solutions in our operations,      enable the creation of               through pro-active           healthy & safe working
    In 2020, we took our sustainability strategy to the next level in order to                                                     and we commit to partner         sustainable products.           engagements with social            conditions supported
    mitigate business risk caused by sustainability issues and amplify our role                                                   with key stakeholders to lead                                                progress.               by corporate culture,
                                                                                                                                          the change.                                                                               governance, processes, data
    in tackling global challenges such as climate change, plastic waste and
                                                                                                                                                                                                                                       & management tools.
    human well-being.

    Building on our past, strong performance we will, starting in 2021,
    accelerate our sustainability impact under the banner of our new
    Horizon 2030 sustainability strategy.                                                                                                  2025 Goals – Leading The Journey                                    2030 Goals – 100% Sustainable

                                                                                                                                                                                                             100%                              0%
    The purpose is to create a positive, sustainable impact on                                                                                5%                          10%                             Carbon Neutral                Manufacturing Waste
    markets, environment, people and communities. With                                                                                 Water Reduction*             Energy Reduction*                     Manufacturing                     to Landfill
    Horizon 2030, we are enhancing our sustainability
    efforts with the aspiration to be a zero carbon,
    zero waste and zero accident business that is
    offering a reusable, recyclable, biodegradable,
                                                                                                                                             15%                          30%                                                    100%
    or compostable alternative for 100% of our                                                                                         GHG Reduction*               Landfill Reduction*                                Portfolio Available as
    portfolio and creating shared value for the                                                                                                                                                           Reusable, Recycled, Recyclable or Compostable
    business, our people and communities.
                                                                                                                              *reduction is intended per Kg of product from the 2018 baseline

                                                                                                                              Since technologies and ways-of-working need to be upgraded or innovated to achieve the Horizon 2030 vision, we rely
                                                                                                                              on our culture of speed, innovation, and our ability to dare trying new things to succeed. Hence, to measure progress
                                                                                                                              and hold ourselves accountable to make visible progress, we are setting specific mid-way targets for 2025. These will
                                                                                                                              be strengthened annually, as we develop and implement sustainable solutions and improve our performance inside our
                                                                                                                              business and across our value chain.
■   A Systematic Approach
                                                                                                                              Our 2030 vision and 2025 targets are aligned with the UN Sustainable Development goals focusing on those areas
In 2020 we formalized our sustainability program and created a Group Sustainability Steering Committee with our CEO           where we have the most impact.
and senior management representation that covers material sustainability issues. The Committee is instrumental in
translating group wide strategies into local action, with the sharing of new and best practices. Locally, site managers are   Recognizing that sustainability challenges outside our facilities are best solved together with external stakeholders, we
engaged together with representatives from Human Resources departments as well as Environment, Health and Safety              will scale-up existing partnerships with our customers and build new ones with suppliers, NGO’s, industry associations
(EH&S) leads. In this way, we leverage our global capacity to scale the reach and the impact of sustainable solutions. At     and authorities.
the same time, our approach enables local entities to engage in local issues. By taking a dual approach — maintaining a
global perspective and taking local actions — we ensure that Jacob Holm remains a relevant and value-adding corporate
citizen in every one of our host communities, and we simultaneously share the benefits of our global presence and
scalability with stakeholders across borders.

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SUSTAINABILITY

■   What Matters                                                                                                                      ■   Our Key Stakeholders
In line with our colleagues in the nonwoven industry, our business model is associated with a number of inherent                      Managers and employees across the Group engage with multiple stakeholders in their daily work, and the feedback is
sustainability risks as well as positive impact opportunities. Sustainability is a global effort for Jacob Holm and                   important for determining relevant material sustainability issues.
keeping focus on what matters in that perspective is fundamental for our business success and our stakeholders.
                                                                                                                                      We are in continuous dialogue with multiple key stakeholders through Jacob Holm’s management, marketing, sales, and
Based on our skilled employees’ analysis, science, stakeholder dialogue, and management prioritization, we                            production departments, and we also engage with external stakeholders such as raw material suppliers, customers, end-
continuously validate and determine what sustainability issues are material to Jacob Holm and our stakeholders by                     users, and product developers within the nonwoven industry. The aim of our engagement is to uncover expectations to
applying criteria and filters of risk, responsibility, and strategic opportunity assessment. Further, we apply external               Jacob Holm’s sustainability work and provide input for the determination of our material issues.
ESG-ratings and other third-party analysis of Jacob Holms’ sustainability performance in our determination of
                                                                                                                                      Resulting from our stakeholder dialogue and supporting analysis, we have identified the following stakeholder groups to
material issues to manage.
                                                                                                                                      be relevant for our sustainability work and our material issues:
Another important modifier in the process of determining materiality are the UN Sustainable Development Goals.
The goals provide a frame of reference in our strategy and a perspective on the business opportunities and risks that
lie within our sustainability work.

In 2020, we conducted a materiality assessment according to our guiding principles.

                                                                                                                                                                                            END-USERS

             TOPIC                                                             ABOUT

                                Continuing our efforts to minimize Jacob Holm’s environmental impact by reducing waste
    Manufacturing Waste
                                generation from operations and products and integrating circular waste processes.
                                                                                                                                                                BUSINESS
                                Taking the needed steps to reach carbon neutrality by reducing carbon emissions from our                                           TO                                                    EMPLOYEES
    Carbon Emissions                                                                                                                                            BUSINESS
                                operations and products.

    Water Use                   Using water responsibly and protecting the finite resources of freshwater.

                                Pushing the limits for sustainable nonwoven fabrics and solutions through tireless innovation,
    Sustainable Products
                                experimenting and promoting the exceptional ability of our people

                                Ensuring a solid and appropriate foundation of policy commitments and processes that help us
    Human Rights                prevent and mitigate adverse impacts on human rights, i.e., health and safety, labour rights, rest,
                                and leisure.
                                                                                                                                                                POLITICAL                                                 LOCAL
                                Promoting diversity and inclusion o ensure the best possible development of both business and                                 INSTITUTIONS                                             COMMUNITIES
    Diversity And Inclusion
                                collegial relations.

    Human Rights                Ensuring that our work on responsible purchasing prevents adverse impacts on human rights and
    (Supply Chain)              complies with globally recognized principles and guiding industry standards.

                                Engaging in local community activities where we operate to increase Jacob Holm’s social value                                                               INDUSTRY
    Community Engagement
                                creation and stand out as a good corporate citizen.                                                                                                       ASSOCIATIONS

                                Ensuring a solid and appropriate foundation of policy commitments and processes that help us
    Responsible Business
                                prevent and mitigate adverse impacts on anti-corruption, environment, and human rights when we
    Relationships
                                interact with business relations, including customers, suppliers etc.

                                Maintaining a systematic approach to sustainability in Jacob Holm through appropriate policy
    Sustainability Governance
                                commitments and effective management systems and processes.

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SUSTAINABILITY

 PERSPECTIVES
 ON RISK          Being a global enterprise that develops, manufactures, and distributes nonwoven fabrics and solutions to customers
                  around the world is inevitably associated with the risk of causing or contributing to adverse impacts on human rights,
                  the environment and anti-corruption.

                  An external ESG (environment, social, governance) audit by Sustainalytics in 2020 concluded from an internal and
                  external scan that Jacob Holm is a “low risk” company, and they confirmed that Jacob Holm continues to deliver best-
                  in-class performance in ESG matters.

                  Some of our risk perspectives include:

                      HEALTH AND SAFETY RISK
                  ■   Health and safety risk regarding the well-being, safety and security of our employees in a fast-paced environment,
                      especially during COVID-19 which significantly increased demand of several Jacob Holm products.

                      ENVIROMENT RISK
                  ■   Environment risks due to non-compliance with environmental regulations and directs emissions to air and water, and
                      waste to landfills and incineration.

                      CLIMATE RISK
                  ■   Climate risks due to challenges with reducing carbon emissions in our operations in order to meet our goals of
                      carbon neutrality and customer expectations.

                       HUMAN RIGHTS RISK
                  ■   Human rights risk due to immature systems for identifying, preventing, or mitigating actual and/or potential adverse
                      impacts on principles defined by the UN Guiding Principles on Business and Human Rights or OECD’s Guidelines.
                      Both regarding Jacob Holm’s operations and those of our business relationships.

                       PRODUCT RISK
                  ■   Product risks due to unintentional quality defects or other errors that may result in the product being discarded
                      or redone.

                  Consequently, we are especially focused on maintaining and developing an agile organization that adheres to sound
                  practices and continuously strengthens its resilience to avoid adverse impacts on our business, our customers and
                  society at large. We aim to hedge risks through strong management, leading industry certifications, strategy, policy
                  commitments and practices that align with globally recognized principles for responsible business conduct and
                  industry standards.

22																															                                                                                                          23
SUSTAINABILITY
■   Managment System
The Group’s sustainability efforts are being guided by a range of policy commitments and management systems that           ■   Certified Offerings
ensure a solid and appropriate foundation for our work.                                                                    Sustainability, innovation and quality are nobility marks of Jacob Holm and as the global industry and innovation leader
                                                                                                                           in spunlaced nonwoven fabrics, we are proud of being able to offer a wide range of sustainable, plastic-free, and
All the Group’s plants have a management team and EH&S committees in charge of driving the sites' initiatives on safety.   biodegradable products, based on plant-based resources.
In 2020, we expanded the charter of these teams to embrace Health Safety and Sustainability through the creation of
our Jacob Holm Sustainability Committees.                                                                                  To ensure integrity in our product offerings and operations, Jacob Holm maintains a wide range of globally
                                                                                                                           recognized certifications that support a systematic approach to sustainable product innovation, product safety, quality,
                                 SUSTAINABILITY STEERING COMMITTEE                                                         environmentally friendly operations, and the well-being of our employees. We value the environment so we maintain
                                                                                                                           eco-friendly certifiied fabrics, processes and products. We are innovative and open to more certifications as needed or
                             ROLE                                                     MEMBERS
                                                                                                                           requested.
      ■   Provides guidance and strategic direction               ■   Chair: CEO
          on sustainability                                                                                                Directors and managers in the Group are responsible for implementing and maintaining our certifications with support
                                                                  ■   Corporate VP of Strategy and Sustainability          from process managers and staff in general.
      ■   Approves vision and goals
                                                                  ■   COOs
      ■   Ensures progress towards goals and vision
                                                                  ■   Business Units Presidents
      ■   Foster the Sustainability culture throughout
          the organization
                                                                  ■   Corporate Vice President Research
                                                                      and Development

                                  CVP STRATEGY AND SUSTAINABILITY
                                                           ROLE

      ■   Under the guidance of the steering committee,      ■   Oversees the sustainability data aquisition, analysis
                                                                                                                                                                                  Organic                                                       Enviromental                                          Fine to Flush®
          sets company vision, goals and milestones              and reporting                                                                                                    Certify by Ecocert                                            Management                                            WIS 4-02-06:2019
      ■   Drives Sustainability agenda of the Company,       ■   Maintains relationship with external stakeholders,                                                               Greenlife – F32600                                            System                                                FF/045/0221
                                                                                                                                                                                  135102/1093417/1                                              ISO 14001
          setting priorities and resources needs                 including customers, international bodies,
      ■   Ensures effective resource allocation to support       suppliers and other supply chain partners as
          execution of strategic initiatves                      required to advance the Sustainability agenda of
                                                                 the Company
      ■   Provides tools and leads the processes necessary                                                                                            ANCE M                                                         FETY M                                                   C TUR I NG
          to drive the company towards attainment of the     ■   Drives engagement of all Jacob Holm employees                                   UR
                                                                                                                                                                                  Quality Assurance
                                                                                                                                                                                                                SA            A
                                                                                                                                                                                                                                                Health and Safety           FA                         Good Manufacturing

                                                                                                                                                           A
                                                                                                                                             S

                                                                                                                                                                                                          D

                                                                                                                                                                                                                                                                      U
                                                                                                                                                                                                                              NA

                                                                                                                                                                                                                                                                                       PR
                                                                                                                                   L I TY AS

                                                                                                                                                               NA

                                                                                                                                                                                                       LTH AN

                                                                                                                                                                                                                                                                    D MAN
          sustainability goals                                   Is an ambassador of JacobHolm Sustainability                                                                     Management                                                    Management                                             Practices

                                                                                                                                                                                                                                G E ME NT

                                                                                                                                                                                                                                                                                           ACTI CES
                                                             ■

                                                                                                                                                                 GEMEN
                                                                                                                                                                                  System                        45001                           System                      22716                      ISO 22716
                                                                 Leadership

                                                                                                                                                                                                                                                                     OO
                                                                                                                                                                                                        EA
                                                                                                                                UA
                                                                                                                                                                                  ISO 9001                                                      ISO 45001

                                                                                                                                                                                                           H
                                                                                                                                                                       T

                                                                                                                                                                                                                                                                        G
                                                                                                                                         Q
                             PLANT-LEVEL SUSTAINABILITY COMMITTEES
                             ROLE                                                     MEMBERS                                                                                     PEFC™                                                     FSC®                                                              SFI®
                                                                                                                                                                                  10-31-2482                                                Soultz : FSC-C001586                                              SFI-01 724
      ■   Sets the plant vision, goals and milestones 		                                                                                                                                                                                    Candler : FSC-C116044
                                                                  ■   Chair: Site manager
          consistent with the Company’s goals                     ■   Lead: Sustainability advocate                                                                                                      www.fsc.org
      ■   Drives Sustainability agenda and engagement
          of plant employees
                                                                  ■   Enginerering, HR, EH&S leader in each plant
      ■   Ensures effective resource allocation to
          support execution of key initiatves                                                                                                                                       OK                                                               OEKO-TEX®
                                                                                                                                                                                    bio-degradable                                                   CQ 1142/1
      ■   Is an ambassador of Jacob Holm Sustainability                                                                                                                    S538
                                                                                                                                                                                    SOIL                                                             IFTH
          Leadership in the local communities

24																															                                                                                                                                                                                                                                                                                          25
■   Our Policy Commitments                                                                                                                                                                                                        SUSTAINABILITY

The Group’s commitment to leading sustainable development in the
                                                                                                                                  ■   How We Measure Progress
nonwoven industry is supported by a range of policy commitments that
                                                                                                                                  We continuously work to develop and ensure a high-quality standard of our sustainability data and thereby a robust
guide our business decision making at all levels of the organization and
                                                                                                                                  basis for monitoring and reporting on our policy commitments, our efforts, and results. We base our calculations and
provide a frame of reference for how we want to conduct our business,
                                                                                                                                  reporting principles on leading standards and methods.
both in relation to creating targeted developments and improvements as
well as to counter risks.                                                                                                         This is the Group’s first sustainability report. The report has been prepared with references to Global Reporting Initiative
                                                                                                                                  (GRI) Standards. In the coming fiscal years, we will broaden the scope of our data collection and add more KPIs and GRI
Our general commitment and the underlying policies are applicable
                                                                                                                                  standards to our reporting to increase transparency and systematically report on the developments of our sustainability
to all of the Group’s processes, products, and organizational units and
                                                                                                                                  vision and Horizon 2030 strategy.
we encourage our business relationships to follow the same principles
that we hold ourselves to which we hold ourselves accountable. Our
top management and Board of Directors review our policies yearly and
update them as needed. In addition, we have introduced the Jacob                                                                  ■   We Support the UN Sustainable Development Goals
Holm PolicyApp®, which provides all of our employees with instant user-
friendly guidance to our compliance policies.                                                                                     With the Group’s commitment to leading sustainable development, we seek to contribute to the UN Sustainable
                                                                                                                                  Development Goals (SDGs) in the best possible way. The global goals give us a frame of reference in our strategy
Our policies and codes cover areas such as human rights, equality of                                                              and a perspective on the business opportunities that lie within our sustainability work.
treatment, animal testing, environmental protection, anti-corruption,
whistleblower schemes, working environment, quality, responsible                                                                  Our Horizon 2030 strategy will increase the Group’s positive impact on the climate and environment as well as our
global supply chain management, product development and more.                                                                     employees, the local communities we serve, and not least the health and safety of our end-users.

                                                                                                                                                 OUR FOCUS
                                         Key Messages In Our Policy Commitments

                              We respect the rule of law and comply with national regulations in all countries in
         Rule Of Law
                              which we operate.                                                                                               SUSTAINABLE
                                                                                                                                             MANUFACTURING
                              We do not accept any form of bribery, corruption, or fraud and we commit to being open and
       Anti-Corruption
                              transparent about our business activities.

                              We respect the human rights of our employees and provide our employees with a professional,                       SUSTAINABLE
        Human Rights
                              safe and secure working environment.                                                                               PRODUCTS
                              We are committed to conserving natural resources and promote and support environmentally
                              sustainable practices. All our companies fully comply with or exceed the local legal requirements
         Environment          for environmental protection. We will continuously work to reduce our own adverse environmental
                              (including climate) impacts by developing climate and environmentally friendly products and
                              operations.
                                                                                                                                       COMMUNITY PROSPERITY
                              We are committed to developing greater transparency in our supply chain and to promoting high
       Business Partners
                              ethical standards among our suppliers.

                              We are committed to being a good corporate citizen and contribute to the well-being of the local         PEOPLE AND RESPONSIBLE
      Local Community
                              communities where we operate.
                                                                                                                                              BUSINESS

26																														                                                                                                                                                                                                                           27
CHAPTER ONE
REDUCING OUR ENVIRONMENTAL
IMPACT WITH SUSTAINABLE
FABRICS AND SOLUTIONS

                              SUSTAINABILITY
28
SUSTAINABLE
                                                                                                                                                                                                                           SUSTAINABILITY

MANUFACTURING                                                                                                                 We acknowledge the many challenges in delivering short term improvements and turning our 2030 vision into reality.
                                                                                                                              New technologies, new partnerships and new ways-of-working need to be invented. To make the process as fast
                                                                                                                              and efficient as possible, we invite stakeholders up and downstream to work with us and implement new sustainable
                                                                                                                              systems across the value chain with speed and impact.

■   Our Approach
                                                                                                                              ■   2025 Targets
Jacob Holm’s vision is to be a zero-impact manufacturing business in terms of our footprint on climate and the
environment in the next decade. In a journey towards the 2030 vision, we commit to pioneer more sustainable                   To drive continuous progress, we have set ourselves environmental targets for the year of 2025. Compared to a
solutions in our manufacturing sites and continue to innovate cutting-edge fabrics and materials.                             2018 benchmark, we will reduce our environmental footprint from our production sites in terms of greenhouse
                                                                                                                              gas emissions, water consumption, energy consumption and waste-to-landfill. For every environmental indicator,
Our environmental commitment is supported by our Code of Conduct and has a particular focus on greenhouse gas                 performance is measured relative to total production volumes.
emissions, energy, water and waste from our production sites. Our policies commit all the Group’s production sites to
take a precautionary approach to environmental risks and carry out programs to reduce our environmental footprint and
lower our greenhouse gas emissions.

To implement sustainable production, we take action in five areas: Maintenance, Process Optimizations, Raw Materials,
New Technologies and New Product Design. In support of our systematic approach, we manage our production sites                                     10%                                  By
                                                                                                                                                                                                             15%                   CO2

                                                                                                                                                                           2025
according to best practice management systems. These are certified according to global standards as described earlier                            reduction in energy                                        reduction in GHG
in this report.                                                                                                                                     consumption                                                 emissions

                                                                                                                                                    5%
                                                                                                                                                    reduction
                                                                                                                                                                             per kg production vs 2018
                                                                                                                                                                                                           30%
                                                                                                                                                                                                             reduction in
                                                                                                                                                   net water use                                            waste to

                             PROCESS                RAW MATERIAL                 NEW                   NEW PRODUCT
    HOUSEKEEPING
                           OPTIMIZATION              SUBSITUTION             TECHNOLOGIES                DESIGN

                                                                                                                              These targets cover the environmental footprint from our production sites. The reduction targets for greenhouse
    Improvements in        Making                   Shifting to more         Enabling lower            Minimize impact        gases, include scope 1 (direct emissions from owned or controlled sources) and scope 2 (indirect emissions from the
    work practices         adjustments              enviromentally           resource                  throughout             generation of purchased electricity, steam, heating and cooling consumed by our production sites).
    and maintenance        to processes             sound inputs             consumption,              product lifecycle
                           to increase                                       waste
                           efficiency                                        generation, and                                  Emissions from other sources from upstream and downstream activities are excluded in the group targets as is.
                                                                             emissions                                        However, we will include more emissions data from scope 3 (indirect emission from up- and downstream activities) and
                                                                                                                              set reduction targets in due course when the scope 3 baseline is complete.

                                                                                                                              Sustainability is a key driver in our culture and behaviors, and we will continue to improve our performance everywhere
In everything we do, we rely on the world-class expertise and strong engagement of our people. As a natural                   in the business, for example by encouraging our people and partners to adopt a sustainable lifestyle in and outside the
consequence, we promote environmental consciousness among our employees through virtual and on-site                           workplace with responsible use of products and services.
sustainability working groups and integrate environmental considerations in our activities. This includes, for example, the
development and use of sustainable production processes and products as well as a reduction of the consumption of
both raw materials and natural resources. Lowering consumption of raw materials, energy and water as well as lower
production of waste nets a smaller climate impact. These considerations apply to decisions both internally in the Group
and in the ongoing dialogue with our business partners.

30																															                                                                                                                                                                                                                   31
2020 Achievements
                                                                                                                              Of the Jacob Holm manufacturing
                                                                                                           Index numbers
Key Performance Indicators (KPI) relative to production volume                                                                plants, the Soultz facility boasts
                                                                                                          (year 2018=100)
                                                                                                                              the lowest environmental impact,
Name                                                             2018          2019         2020        2018   2019    2020
                                                                                                                              leading the way within our
Production Total KG                                            105,569,781   99,250,084   124,434,765   100     94      118
                                                                                                                              corporate family and across our
Gas Kwh                                                          97,912       99,464       122,268      100    102      125   industry. The share of recyclable
Electricity Kwh                                                  172,110      175,589      197,953      100    102      115   or biodegradable products from
                                                                                                                              the production site has doubled
    Energy Kwh (Gas + Electricity)                              270,022       275,053      320,221      100    102      119
                                                                                                                              every year for the past 3 years. At
    Water M3                                                     510,176      460,992      451,261      100     90      88    the same time Soultz is leading
    Waste KG                                                    7,916,131    7,892,720    9,983,624     100    100      126   the way with zero waste to landfill
    Waste to landfill KG                                        6,393,341    6,523,837    8,564,627     100    102      134   and sustainable sourcing of water
                                                                                                                              and the ability to recycle the vast
    Gas Kwh per Production Total Tonnes                          0.927         1.002        0.983       100    108      106
                                                                                                                              majority of it.
    Electricity in Kwh per Production Total Tonnes               1.630         1.769        1.591       100    109      98

    Energy Kwh (Gas+Electricity) per Production Total Tonnes     2.558         2.771        2.573       100    108      101

    Water M3 per Production Total Tonnes                         4.833         4.645        3.626       100     96      75

    Waste Kg per Production Total Tonnes                         74.985       79.524        80.232      100    106      107

    Waste to landfill Kg per Production Total Tonnes            60.560        65.731       68.828       100    109      114

    Scope 1 emission, KG CO2e per Production Total KG             0.171        0.185         0.181      100    108      106

    Scope 2 emission, KG CO2e per Production Total KG            0.594         0.631        0.543       100    106      91

    Scope 1 and 2, KG CO2e per Production Total KG               0.765         0.816        0.723       100    107      95

    Scope 3 emission, KG CO2e per Production Total KG            0.040         0.044        0.033       100     111     84

    Total emission, KG CO2e per Production Total KG              0.805         0.860        0.756       100    107      94

    Scope 1 emission, tCO2e                                      18,019       18,360        22,482      100    102      125

    Scope 2 emission, tCO2e                                      62,736       62,668        67,513      100    100      108

    Scope 3 emission, tCO2e                                      4,192         4,364        4,127       100    104      98

    Total emission, tCO2e                                       84,948        85,393        94,124      100     101     111

We are pleased to report our environmental performance improvement from 2019 to 2020 on carbon emissions,
energy and water consumption, which bring us closer to the achievement of our 2025 targets and put us on the right
course towards the 2030 horizon. Although we took a step back on waste to landfill, we will renew our focus and
leverage the experience of our team in Soultz France, where we have been zero-waste-to-landfill since 2013.

To keep momentum, our priorities for 2021-2023 are to:

■    Set science-based GHG targets (includes scope 1, 2, 3 accounting)
■    Implement initiatives to reduce carbon footprint incl. renewable energy
■    Optimize manufacturing sites to improve asset efficiency and reduce our environmental
      footprint in waste, energy and water.

                                                                                                                                                                    SUSTAINABILITY
32
■   Lowering Carbon Emissions and Optimizing Energy and Water Use
                                                                                                                                                                                                                            SUSTAINABILITY

To continue lowering our carbon emissions in 2021 and onwards, we will be implementing operational efficiency

                                                                                                                            RESPONSIBLE PRODUCTS
programs (see below) and developing a plan for renewable energy solutions. Recognizing that systemic changes take
time, we will engage in carbon off-setting schemes when necessary to achieve short term goals.

We believe that “what gets measured gets done.” Consequently, we will continue to drive our action plans with
ambitious targets and continuous performance measurements. Furthermore, in 2021-2023 we plan to commit to
the science based targets initiative (SBTi) – a partnership between CDP, the United Nations Global Compact, World
                                                                                                                            AND INNOVATION
Resources Institute (WRI) and the World Wide Fund for Nature (WWF).
                                                                                                                            ■   Our Approach
■   Increasing Operational Efficiency                                                                                       Innovation is at the heart of Jacob Holm’s drive to grow sustainably. We continuously invest in new technologies
                                                                                                                            and capabilities and work with and for our customers to develop the best solutions. The challenges in the Hygiene,
The use of energy and water and the disposal of waste is a significant driver of financial cost and our environmental
                                                                                                                            Consumer Wipes, Dispersible Wipes, Industrial Wipes, Health Care and Beauty Care markets are our daily motivation.
footprint. Our operational efficiency programs address these challenges by reducing our use of utilities and raw
                                                                                                                            Each day we strive to improve the performance of our materials. In our innovation, we take a precautionary approach
materials, thereby bringing down manufacturing cost and sharpening our competitive edge. In this way, operational
                                                                                                                            to handling environmental risks and opportunities and we strive to apply environmentally friendly technologies in our
efficiency programs benefit the business, the environment and reduce climate risk.
                                                                                                                            production.

Equipment upgrades and process improvements are key drivers in our operational efficiency programs. To give a few           In our relationship with suppliers and service providers the Group has implemented a Supplier Code of Conduct that
examples, the Candler site installed more energy efficient dryers on production lines in 2020. The production site Old      clarifies the Group’s ethical expectations and requirements towards our suppliers, as well as internal guidelines to our
Hickory concluded the installation of new chillers and the elimination of approximately 1200 meters of poorly insulated     employees on avoiding corrupt practices and safe-guarding the environment and human rights. We conduct regular
piping by placing the chillers beside the building. On the same token, the Asturias production site installed a new HVAC    compliance trainings of all employees and we assess suppliers via self-assessments to ensure compliance with the
system (heating, ventilation, and air conditioning) with significantly lower energy consumption. Finally, during 2020 all   Group’s code of conduct. When qualifying new suppliers, we collect all certifications a company has, we test fiber
production sites implemented energy efficient LED lightbulbs. In one of our production sites, TWIG, this resulted in a      materials and products according to our quality guidelines, and we communicate the Group’s Supplier Code of Conduct
30% decrease in energy used.                                                                                                to them. In addition, the Group has provided our employees with an app on their mobile devices that provides easy-to-
                                                                                                                            understand behavioral guidelines in high-risk situations, internally and when dealing with our business relations, including
In 2020 we also launched the BOOST flagship program to increase operational efficiency and reduce the environmental         suppliers. The Group also operates a web-based whistleblowing hotline that allows employees and other stakeholders to
footprint even further. It applies significant investments to upgrade all production, increase line efficiency and bring    report cases of corruption or other unethical behavior anonymously. Any reports made are sent to two separate parties
down the environmental footprint.                                                                                           for review to further limit the possibility of corruption.

     Project Boost                                                                                                          ■   A Pioneer in Natural Fibers
     Project Boost was launched in June 2020 in response to the needs of                                                    Jacob Holm uses both 100% plant-based and all-natural fibers for our nonwoven products. Our plant-based fibers
     our partners across the globe for increasing capacity, providing more                                                  include Viscose, Lyocell, PLA and Cellulose Acetate. For customers whose needs include all-natural raw materials, we
     sustainable substrate choices and continuing to uphold our position as an                                              offer cotton, organic cotton, hydrophobic cotton, pulp, flax and hemp. Additionally, we can produce nonwovens with
     innovation leader in nonwovens. The investment program is significant in                                               recycled polyester.
     scope, affecting all production lines across all production sites globally. The
     investment will lead to the creation of at least 57 new full-time positions                                            Using these products, our customers can certify their finished goods to various OK Biodegradable and OK compost
     across the group’s global manufacturing footprint. True to Jacob Holm’s                                                standards, as well as GOTS and Oeko-tex. It is our mission to enable our customers to meet their end-users’ strictest
     commitment to sustainability, the investment will target a clear upgrade of the                                        environmental standards.
     capabilities for utilizing renewable raw materials. Additionally, the upgraded
     production methodology will further reduce waste and improve production                                                For years we have collaborated with our customers to co-innovate new high-performing products. We are inviting
     efficiency, thus lowering the carbon footprint of the entire Jacob Holm and                                            existing and new commercial partners to accelerate these partnerships to launch first-to-market sustainable solutions in
     Sontara® product portfolios. To give some examples of the expected impact                                              consumer products.
     from Project Boost, the installation of pre-drying equipment is projected
     to reduce natural gas consumption by 25% in the Asheville, US, site and                                                Today, about 50% of our input fibers are plant-based or all-natural fibers. Our vision for 2030 is to offer a sustainable
     electricity consumption by 10-15% in Soultz, France.                                                                   alternative for 100% of our stock-keeping units. This is our humble way of supporting sustainable consumption patterns
                                                                                                                            and making a sustainable life-style possible for all.

34																															                                                                                                                                                                                                                   35
RESPONSIBLE
                                         Forming new partnerships to increase
                                         recycling                                                                        PRODUCTS
                                         Sontara® Old Hickory produces medical drape and gown
                                         products. Our external partner on the product line performs
                                         the coating of our material with a moisture barrier, then slits
                                         and rewinds our material for our final customers. This coating
                                                                                                                              Celebrating 150 years of
                                         makes the material impervious to liquids (blood, body fluids),
                                                                                                                              the Mulhouse Zoo. The
                                         protecting the health care provider. Unfortunately, this coating
                                                                                                                              ephemeral work from
                                         makes any waste (edge trim, butt rolls, stripped waste) less
                                                                                                                              Vortex-X settled in the
                                         desirable for the by-product and recycle markets, and for some
                                                                                                                              Park! This work illustrates
                                         time excess materials ended up as waste going to a landfill.
                                                                                                                              the link between the
                                         Thankfully, we have entered an agreement with a new recycling
                                                                                                                              textile industry behind
                                         partner. As a result, 75 metric tons a month are recycled into
                                                                                                                              the zoo and sustainable
                                         new products instead of going into a landfill.
                                                                                                                              development.

As an additional next step, we are planning to integrate cradle-to-cradle principles in our production design and
innovation process. We do so to decouple economic growth from the depletion of the environment and to make
our products ready to enter circular material streams. We acknowledge the many challenges that need to be
overcome, but through cross-industry collaboration, innovation and partnerships, we are determined to accomplish
our goals and turn our 2030 vision into reality.

■   Products Improving the Quality of Life
To Jacob Holm, sustainability is both about doing things right – e.g. reducing our environmental footprint –
and doing the right things by making products that enhance people's quality of life. We are proud that most of
our products help protect human life in critical situations or improve well-being. To give some examples, face
mask components and medical apparel are critical to protecting human life against viruses or other infections.
Furthermore, our personal care products and components for personal hygiene and critical cleaning products are
essential to maintain human well-being.
                                                                                                                    ■   Art Partnerships Reduce Waste
                                                                                                                    Jacob Holm embraces sustainability on all levels — including the artistic. By partnering with French eco-designer Gérard
                                                                                                                    Dumora, we can contribute our non-woven fabrics to industrial and urban art projects through an initiative Dumora
                                                                                                                    calls Vortex-X. Up-cycling Jacob Holm nonwoven fabrics, Vortex-X creates sculptures of intricate, gossamer strands.
                                                                                                                    Our material is sliced into strings, then stretched and tied in precise angles, gracing public spaces and industrial sites
                                                                                                                    with sculptures called “wipe webs.” In this way, we are not only providing raw materials for artists, but also finding value
                                                                                                                    for the public in industrial waste. Through these art installations, Jacob Holm and Vortex-X hope to inspire viewers and
                                                                                                                    encourage the practice of upcycling. To find out where you can view a Vortex-X exhibition, www.vortex075.com has
                                                                                                                    information about all past and future sculptures.
36																															                                                                                                                                                                                                            37
OUR ROLE IN SOCIETY

                                               CHAPTER TWO
                              SUSTAINABILITY
38
■   Our Approach                                                                                                                                                                SUSTAINABILITY

Jacob Holm is committed to being a good corporate citizen and contributing to the well-being of the local
communities where we operate. Ensuring healthy and sustainable relations with our local communities allows us to
build better relations with employees and customers, and facilitates the creation of local community cohesion through   Supporting Drive-By Virus Testing
active participation in and support for local associations, initiatives, and institutions.                              At the height of the pandemic, when limited PPE
                                                                                                                        was available, a Sontara® Old Hickory production
                                                                                                                        team member located 60 N95 Masks and over
■   The Pandemic in the Community                                                                                       350 unopened surgical gowns. We partnered
                                                                                                                        with Meharry Medical College, a HBCU in Nashville,
Throughout the Covid-19 pandemic, Jacob Holm Group has been deeply engaged in defending the safety and                  to donate these plus additional Sontara® fabric
well-being of those in our communities. People, communities, and associations were dealt a hard blow and a lot of       material to lend our support for their contributions
uncertainty when the pandemic struck in Spring 2020. Consequently, our executive management decided to dedicate         to drive-by virus testing.
resources from each of the Group’s plants to impact those emergency personnel, restaurants, local business partners
and neighbors who were severely challenged during the COVID-19 pandemic.

Examples of our Efforts to Combat Covid-19:

                                                                                                                        300 kg of Fabric for Face Masks
                                                                                                                        Our Sontara® employees in Asturias, Spain,
                                                                                                                        expanded their roll donation program to meet
                                                                                                                        the needs of a particularly vulnerable population:
                                                                                                                        residents of private long-term adult care facilities.
    Helping out Hospitals                                                                                               Right away, we were able to release 300 kilograms
    In Soultz, France, we were able to gather and                                                                       of material, which dedicated local volunteers turned
    distribute FFP3 and FFP2 face masks, hair nets                                                                      into enough masks for 45 different care facilities
    and protective suits to regional hospitals and                                                                      covering a total of 1,952 site locations.
    pharmacies.

                                                                                                                        162 Seamstresses in Action
                                                                                                                        Sharing the experience, our team in Soultz,
    Protecting our Business                                                                                             France, were inspired to provide material to the
    In Old Hickory, Tennessee, a product development                                                                    Alsace Citizens Movement against COVID-19.
    technician located 600 Biosecurity Kits, which                                                                      This group includes 6 material cutters and 162
    include antiseptic spray, disinfectant cleaner, a spray                                                             seamstresses divided into 14 teams that have been
    bottle, 30 surgical masks, 1 digital thermometer, and                                                               able to create duck masks according to AFNOR
    2 pairs of nitrile gloves. This was enough to fully                                                                 recommendations of different filtration levels and
    protect all three of our regional facilities and one                                                                gowns for the Mulhouse Sud-Alsace Regional
    of our American suppliers, another local essential                                                                  Hospital Group to protect nurses, doctors and local
    business.                                                                                                           government workers.

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