As an internationally operating fashion and lifestyle company in the premium segment, the HOLY FASHION GROUP attaches great importance to the highest product quality. Taking responsibility for people, animals, the environment and society forms the basis of all entrepreneurial activities.

#sustainability

The success of HOLY FASHION GROUP with the brands JOOP!, windsor. and STRELLSON is based on responsible and value-oriented sourcing and purchasing practices as well as a careful use of resources.

In global and complex value chains with numerous international partners, respect for human rights as well as labor, social and environmental standards is a significant and central challenge that HOLY FASHION GROUP meets with particular care and proactivity.

In the Declaration on Respect for Human Rights Environmental Protection and the Ethical Code of Conduct published in 2022, we define our values and expectations with regard to social and environmental responsibility, thus providing an official and transparent framework for our business practices since then. Our business partners undertake to recognize and implement these and in turn to bring them to the attention of their suppliers and apply them accordingly.

The foundation of these documents are internationally recognized frameworks and standards such as the ILO Core Labor Standards, the UNGPs, the OECD Guidelines, the UN Human Rights Charter, the UN Convention on the Rights of the Child, and chemical management in accordance with the ZDHC.

With particular attention to the materials used, manufacturing processes and compliance with social requirements, HOLY FASHION GROUP has set the following sustainability goals:

SUSTAINABILITY GOALS

#social

Continuous expansion of communication of HOLY FASHION GROUP requirements to all suppliers
Regular social audits for all Tier 1 production sites in both risk and non-risk countries, as well as expansion into further upstream supply chain (Tier 2)
Establishment of an effective grievance mechanism
Expansion of training opportunities for suppliers
Engagement in multi-stakeholder initiatives

#product

Strengthen responsible sourcing and procurement practices
Introduce a supplier score card that includes social and environmental sustainability criteria in addition to business performance criteria
Increase transparency in upstream supply chains
Increase the use of more sustainable and certified materials
Development of circular products
Maintain and expand product certifications
Implement a Manufacturing Restricted Substance List (mRSL) to improve chemical management in supply chains with reference to Zero Discharge of Hazardous Chemicals (ZDHC)

#environment

Increasing the use of more sustainable packaging materials
Reduction of packaging materials
CO2 balance with subsequent action plan for reduction and compensation, as well as definition of scientifically based targets

TRANSPARENT RISK MANAGEMENT

Our risk analysis aims to systematically identify and assess human rights and environmental risks along our supply chain and to minimize them through appropriate prevention and remediation measures. This process is based on a risk-oriented approach that considers both the likelihood of occurrence and the potential severity of possible violations.

We view risk analysis as an ongoing process that is regularly reviewed and updated to ensure that new insights, developments, or changes within our supply chain are promptly incorporated.

By evaluating various country-level risk factors, we can identify potential high-risk countries within our supplier network. In this context, Egypt, China, Turkey, Vietnam, India, and Bangladesh have been classified as high-risk countries.

To assess country risks, we rely on a wide range of trusted sources, including publicly accessible indices, established databases, and regularly published reports focusing on the fashion and textile industry and its social and environmental impacts. Relevant references include OECD sector risks, BAFA guidelines, UNECE standards, IFRS, the Green Button certification, and other ESG frameworks.

For analysis and evaluation, we use a digital online tool that is officially recognized and compliant with the requirements of the German Supply Chain Due Diligence Act (LkSG). This tool enables a structured, comparable, and transparent recording and assessment of risks within our supply chain.

Next, various risk mitigation measures are incorporated into the analysis to accurately determine the actual net risk per supplier. These factors include audit reports, recognized certifications, supplier feedback, as well as completed training and educational initiatives.

Based on our extensive experience in apparel manufacturing, we have identified the following human rights risks particularly in garment factories: excessive working hours, inadequate wages, insufficient occupational health and safety, and inadequate grievance mechanisms. Environmentally, the use of chemicals and water pollution in wet processing pose major challenges. In raw material sourcing, potential risks include child and forced labor on cotton farms as well as high CO₂ emissions. Additionally, possible threats to animal welfare have been recognized as relevant risks.

Effective risk mitigation requires prioritization. Therefore, each supplier is evaluated using a risk score that helps identify high-risk suppliers, who are then specifically selected for developing and implementing targeted risk reduction measures.

Transparency in the supply chain is crucial for effective risk management, enabling reliable identification, assessment, and minimization of risks. For selected products, the supply chain is already largely traceable—this process is continuously extended to more items. Currently, comprehensive information is available on first- and second-tier suppliers and partly on third-tier suppliers. The country of origin of raw materials is fully known only for certified products.

Increasing transparency in deeper supply chain levels involves considerable effort and is still in progress. Our goal is to gradually close existing information gaps and continuously improve traceability.

A list of our sourcing countries and regions can be found here: procurement countries

Due diligence processes for risk mitigation

To effectively prevent and reduce risks in our supply chain, we have developed targeted measures focusing on particularly severe risk areas. Our actions are based on transparency, close and collaborative partnerships with our suppliers, and the consistent enforcement of social and environmental minimum standards.

When developing and implementing these measures, we place particular emphasis on practical applicability. Solutions must be realistic and workable for all parties involved—both for us and for our partners in the supply chain—to ensure lasting impact. Our balanced approach aligns ambitious standards with the real conditions of global supply chains. Central to this are the risks that bear the greatest relevance for our business as well as for the affected people and environmental areas.

Below and on the following pages #PRODUCT and #SOCIAL, we outline the preventive, mitigating, and remedial measures used to address the most serious risks and negative impacts. Through concrete examples, we demonstrate how effective these measures are and what progress has already been achieved.

As part of a responsible sourcing and procurement policy, HFG relies on long-term partnerships, continuous dialogue, and regular on-site visits. These visits are used to review quality standards, communicate new requirements, and openly discuss current challenges. Our goal is to work together with partner facilities to develop viable solutions for more sustainable and socially responsible production.

In the selection process for new suppliers, HOLY FASHION GROUP places great importance on compliance with defined minimum standards in the areas of labor and environmental protection as well as chemical management. A fundamental requirement for collaboration is agreement to the HOLY FASHION GROUP’s Policy Statement, the Ethical Code of Conduct, and the Product Restricted Substances List (PRSL). In addition, a valid social compliance audit report (e.g., amfori BSCI) is mandatory. Further certifications according to internationally recognized textile standards are explicitly welcomed and actively supported.

Termination of a business relationship is only considered after careful examination of all relevant circumstances. Immediate termination is only contemplated in particularly severe cases. In such instances, no new orders are placed, while existing orders are completed in accordance with contractual obligations. In all other cases, the preferred approach is to engage in dialogue with the supplier to jointly develop solutions and support targeted measures for improvement.

Further cross-cutting initiatives and programs promoting sustainable business practices at HOLY FASHION GROUP include:

SUSTAINABLE TEXTILES SWITZERLAND 2030

HOLY FASHION GROUP has joined the "Sustainable Textiles Switzerland 2030" (STS2030) program and has committed to taking action to achieve the following goals:

Reduction of greenhouse gas emissions
Promotion of fair wages and humane working conditions for all
Support for innovative business models aimed at a circular economy
Transparency to ensure that sustainable purchasing decisions can be made

Further information about STS2030 can be found here: https://www.sts2030.ch/

GTEX/MENATEX Programm des International Trade Centers (ITC)

The GTEX/MENATEX programme aims to strengthen the export competitiveness of selected textile and apparel manufacturers. The focus lies on optimizing production processes with particular attention to sustainability, circular economy principles, and digitalization as key competitive factors. The programme was initiated by the International Trade Centre (ITC) and is supported by the Swiss State Secretariat for Economic Affairs (SECO) and the Swedish International Development Cooperation Agency (Sida).

In June 2023, three Egyptian suppliers of HOLY FASHION GROUP participated in the multi-week training programme. Together with local experts, concrete measures were developed and implemented to sustainably improve the social and environmental performance of the facilities.

In the environmental field, a comprehensive assessment was first carried out covering waste, wastewater, energy consumption, environmental management systems, chemical management, and emissions. Several weaknesses were identified, including the absence of an environmental protection strategy, inadequate waste management, improper storage and labeling of chemicals, and inefficient resource use. With the support of the expert team, numerous improvements were achieved—such as the introduction of waste separation, regular wastewater testing, secure storage and labeling of chemicals, and the implementation of energy-saving measures that significantly increased energy efficiency and reduced CO₂ emissions.

Progress was also made regarding working conditions. Following an in-depth analysis, three targeted training sessions were conducted for each facility. Topics included workers' rights, fair employment conditions, effective grievance mechanisms, and occupational health and safety. On-site interviews with workers provided additional insights. Implemented measures included widening emergency exits, keeping escape routes clear, and replacing outdated equipment with new personal protective gear.

Further information about the programme can be found here:
https://intracen.org/our-work/projects/gtexmenatex-global-textiles-and-clothing-programme

The declaration on Respect of Human Rights and Environmental Protection is the commitment by the HOLY FASHION GROUP to publicly state expectations for its own operations and for suppliers regarding respect for human rights, protection of the environment and integrity.

The Ethical Code of Conduct defines our requirements for sustainable, ecologically and socially responsible cooperation with our suppliers.

We provide the opportunity to raise concerns or complaints about negative impacts on human rights, the environment or integrity that are related to the HOLY FASHION GROUP.