"However, to this day, we define ourselves not by numbers, but by people: our customers, suppliers and employees. We want to continue being a good partner and employer for them through consistency, long-term commitment, and reliability.”

_{https://www.wibu.care/de-de/ueber-wibu/ueber-uns/geschichte/}

Information on opportunities and risks is obtained from various sources, from which we derive measures and define targets in terms of sustainability: we derive our targets from the analysis of the roadmap, feedback from our grievance management as well as from our alliance partners and the research initiated (e.g. ILO). They are divided into binding and recommended targets:

Goal Implementation and training on the topics (requirements of the Green Button) in the individual departments

Goal already achieved ✓

GRI Index: 404-1 | 403-5

Goall : Publication of the topics on the homepage (details from the Policy Statement, details from this Sustainability Report)

Goal already achieved ✓

GRI Index: 102–18 | GRI 102–32

Goal : Certification in accordance with the requirements for the Green Button and the first products (bed linen, scrubs)

Status: Audit completed in December 2024 and certificate issued in January 2025.

GRI Index: 102-21

Goal Determination of the requirements of our suppliers by means of _{(F 0840-07)} Supplier Questionnaire and dispatch of the _{(F 0840-06)} Terms and Conditions of Purchase

Goal already achieved ✓

GRI Index: 102-21

Goal Active participation in the Textiles Partnership in the ‘BI Supplier Decarbonisation’ project. It is estimated that the textile industry is responsible for 10% of global carbon emissions. The long-term goal of the alliance initiative is to reduce greenhouse gas emissions in the textile supply chain. Training measures are intended to enable production companies to record their emissions. At least three energy-saving measures should be implemented per company.

Project measures:

GRI Index:

102–21 | 102-29 | 102-9 | 308–1 | 308–2 | 407-1 | 419–1

Goal : continuous assessment and identification of the most serious risks in our supply chain

Status: The Green Button risk assessment has been completed. The data from our suppliers is available. The available data can be used to compile an overview and prioritise our most important risks.

We take a methodical approach to identifying potential or actual serious risks. On the one hand, we are in dialogue with our suppliers, reaching agreements and reviewing their implementation as far as possible. On the other hand, we research reputable external sources on the risks in the respective countries or, where possible, in more detail in specific regions of a country. This task is carried out by our Sourcing Group Manager, for example by using research results from the ANKER Research Institute or the Wagelndicator Foundation regarding living wages in Pakistan. Where possible, we supplement our research with personal visits to our suppliers, including the opportunity to obtain information from employees or their representatives.

Nine per cent of our purchases are made in Germany (Bavaria region), which has an excellent system in place that regulates all legal issues and complies with ILO requirements. In Estonia, with an 11% share of business, the situation is similarly good, although the wage situation is not quite as optimal. The United Kingdom, with a 1% share, is also fairly unremarkable, although the less stringent EU laws apply here. In Turkey (Denizli region), with a 2% share, the risks are already significantly higher. In Romania, with an 11% share of procurement, inflation is high and the statutory minimum wage is set for companies several times a year. Here, of course, we increase our purchase prices by the same amount.

The situation is quite different in countries outside the EU. These include our largest partner companies in Pakistan (63%, Sindh, Punjab, Karachi, Faisalabad regions) and China (4%, Fujian, Taijiang District regions). This is where our risks are highest.

We have long-standing business relationships with companies in Pakistan and engage in intensive, constructive dialogue with them. We are delighted that we are able to deepen and expand our business relationships with the first companies in accordance with the recognitions in the multi-label process. We are also pleased that two of these partner companies are also part of our Textile Alliance working group and are participating in the decarbonisation project (see chapter). The aim is to gradually expand our trusting cooperation with the goal of strengthening this supply chain.

After the Covid-19 pandemic put our resilience and that of our suppliers to the test in 2020–2021, a devastating flood (10.2022) in Pakistan destroyed the factories and also the homes of our suppliers in this region. Millions of Pakistanis lost their homes and at least 1,700 people lost their lives in the flood disaster.

_{See also the article by the Federal Agency for Civic Education:}  

_{https://www.bpb.de/kurz-knapp/hintergrund-aktuell/514557/flutkatastrophe-in-pakistan/}

The infrastructure has suffered long-term damage, especially in the provinces of Sindh, where our suppliers operate their factories, Khyber Pakhtunkhwa and Balochistan. An estimated two million homes, nearly 400 bridges and around 13,000 kilometres of roads were destroyed, and hundreds of thousands of farm animals died. According to government estimates, the damage to homes, infrastructure and agriculture amounts to around 30 billion euros. Crop failures have consequences for the country's economy and food security that are difficult to quantify.

_{See also the article by the Federal Agency for Civic Education:}  

_{https://www.bpb.de/kurz-knapp/hintergrund-aktuell/514557/flutkatastrophe-in-pakistan/#node-content-title-2}

Climate change is considered the main cause of the weeks of flooding. During this time, we stood by our suppliers and adjusted our delivery dates for items that had already been notified in advance to suit our suppliers' respective capabilities. It was our suppliers' strong wish not to withdraw from orders that we were able to fulfil. The aim was to secure the livelihoods of the employees in the factories. In this challenging situation, we were able to prove ourselves as a reliable partner, which formed the basis for our joint decarbonisation project. In this case, this support included both the suppliers of the clothing and those of the wet processes.

In the Singh region, where our main suppliers from Pakistan are located, the current minimum wages cover only about one-third to one-half of the living wage.

_{Source: WP#12_Living+Wage+in+Pakistan_+Estimates_Adoption+and+Policy+Challenges.pdf,} https://www.ankerresearchinstitute.org/ _{December 2024}

In projects to secure livelihoods, we work together with our suppliers by implementing additional measures and special campaigns and providing evidence of these (e.g. daily central meal distribution, special meal events). These measures also protect families and thus children by securing their livelihoods. Where we can provide support within the scope of our capabilities, we either support our suppliers directly (e.g. orders are not withdrawn in the event of natural disasters (fire, flood, etc.)) or support entire regions or institutions (e.g. through donations to Ukraine) in order to alleviate hardship on the ground.

Goal : Continuous evaluation of the status of our suppliers' seals and certifications

Status : Has been implemented on an ongoing basis within the Procurement function since the introduction of the Green Button.

GRI Index: 102-21

Goal : Continuous assessment of the situation at our suppliers, especially in Pakistan

Status : Assessment of the situation after the fall of the government (04.2022)

After the fall of Imran Khan’s government in April 2022, Pakistan is facing turbulent times in terms of domestic politics. The security situation has also deteriorated. This is because the Taliban takeover in neighbouring Afghanistan has given Islamist extremists and separatist nationalists a boost in Pakistan. In future, we would like to keep ourselves informed about the situation on the ground and work with our suppliers to analyse mitigation options in order to counteract potential effects. These include, for example, food distribution in the factories (see Supplier Questionnaires) and the prevention of labour migration from Pakistan to the Gulf States.

_{https://www.bpb.de/themen/kriege-konflikte/dossier-kriege-konflikte/54682/pakistan/}

_{https://www.bpb.de/themen/migration-integration/regionalprofile/510100/arbeitsmigration-aus-suedasien-in-die-golfstaaten-das-beispiel-pakistan/}

GRI Index: 102-21

Goal : Assessment of the impacts of WiBU’s procurement and purchasing practices and their influence on the occurrence of adverse impacts on human rights, the environment, and integrity.

Status : Assessment of the following factors:

Goal : Identification of wage gaps between wages paid and living wages.

Status : unadjusted wage gaps can be assessed, as suppliers have now provided the relevant infor-mation. Status: unadjusted wage gaps can be assessed, as suppliers have now provided the rele-vant information. The challenge lies

GRI Index: 102-21

Goal: Reduction of wage gaps between wages paid and living wages.: Primary focus: gender pay gap

Status: In 2024, children were identified as a vulnerable group. As our ability to materially influ-ence the payment of minimum wages, or wages only marginally above the statutory minimum but in most cases still below living wage levels, is limited, we have identified the gender pay gap (women/men) as a key priority measure for 2026 and intend to support initiatives in this area. In Pakistan, women earn between 25% and 30% less than men for work of equal value. In the infor-mal sector, the gap amounts to as much as 40%. Despite progress (from 33% in 2018 to 30% in 2025), Pakistan continues to lag behind regional benchmark values. Children are particularly af-fected by this shortfall where their mothers are remunerated unequally.

GRI Index: 102-21

Goal : Reduction of wage gaps between wages paid and living wages.: Primary focus: gender pay gap

Status: In order to improve overall partnership-based cooperation with our suppliers, WiBU Textil’s organisational structure, particularly within the Procurement department, has been optimised. A new Sourcing Group Manager role has been established within the Procurement function, with responsibility for supplier strategies, including their further development and continuous improvement. Suppliers are developed in cooperation with Category Management, which holds responsibility for the collections. An integral element of supplier development is close cooperation, including on-site visits. For the purpose of assessing the on-site situation, separate performance assessments are designed and conducted in a fair manner. This includes the assessment of data collection and the subsequent validation and cleansing of such data.   Unexplained wage differentials may constitute an indication of, or potential for, discrimination.

GRI Index: 102-21

Goal: Design supplier assessments in a fair manner

Status: In addition to performance assessments relating to delivery performance, sustainability topics will in future also be addressed using a standardised assessment guideline to be applied on site. The standardised assessment guideline is currently being developed, with a key focus for 2026 on protecting the vulnerable group of children through the protection of their mothers.

GRI Index: 102-21

Goal : Ensuring the legal compliance of our grievance mechanism

Goal already achieved ✓

GRI Index: 102-21

Goal: Establishment of the possibility for continuous feedback from interested parties

Goal already achieved ✓

GRI Index: 102-21

_{Note: Source of the whistleblower system (WiBU Group):} https://www.wibu.care/de-de/ueber-wibu/

The internal reporting office was implemented in Q2/2024. No grievances have been addressed since the introduction of this system. Neither internal nor external grievances were forwarded to the law firm. In addition, the WiBU Group has established a central Code of Conduct as a code of conduct for business partners and published it in 2025.

Goal : Ongoing evaluation of the grievance mechanisms

Status: Will be implemented continuously following the introduction of the Green Button . We are receiving legal support for this.

We are proceeding according to the guidelines of CSR Europe, which are based on the framework of the ‘CSR Europe’s Collaborative Project on Sustainable Supply Chains, Business & Human Rights’. The ‘tandem system’ for utilising the legal entity is described here, see ‘UN Guidance Principles and Grievance Mechanisms’ (see introduction, page 4).

GRI Index: 102-21

Goal: Ensure that vulnerable groups are aware of the grievance mechanism

Status: The ‘Internal Reporting Office’, including whistleblower protection, is linked to a law firm that records and categorises the grievances before the issues are forwarded to us.

Access should be ensured for employees in the factories, e.g. training should be provided and access to this contact should be granted. Access should also be ensured for all vulnerable groups who are unable to read. We coordinate this with our suppliers (see also process "P 1020-01 Grievances"), as a notice (even in the local language) may not always be the most effective approach. We want the grievance mechanism to be effective. It is effective when we meet the requirements and it is:

GRI Index: 102-21

As a “5.1.2 Back-up Grievance Mechanism”, the newly established Sourcing Group Manager func-tion will verify the effectiveness of grievance mechanisms on site. We regard this as a signifi-cant improvement to our mechanism and, where possible and appropriate, improvements will be identified jointly with potentially affected parties and/or their legitimate representa-tives. It would be desirable for them to be involved in this process. This is also intended to form part of the preparation for on-site visits.

_{Green Button Requirement:}

_{Based on the overview and identified gaps (5.1.1) regarding existing backup mechanisms, the company has identified areas for improvement and:}

_{- reviews participation in existing effective mechanisms and/or}

_{- works on improving existing mechanisms and/or}

_{- explores opportunities to develop new mechanisms in collaboration with external stakeholders. Potentially affected parties and/or their legitimate representatives are involved.}

_{The development and/or improvement of these mechanisms is designed to make them effective (5.1.1).}

_{Note: External stakeholders can include, for example, suppliers, civil society, trade unions, other companies, as well as industry and/or multi-stakeholder initiatives.}