Our sustainability approach at Yünsa is based on the principle of creating value for all our key stakeholders, beyond solely generating economic value for shareholders and investors, by fully considering our social and environmental responsibilities. We manage all material sustainability issues in a manner that goes beyond legal compliance and reflects the expectations of our key stakeholders. We conduct our activities with a view to managing our sustainability impacts and regularly disclose progress towards our sustainability goals. Our corporate and ethical values guide us throughout our journey towards long-term sustainability.

OUR PRINCIPLES

SOCIAL

Human Resources and Employee Rights

• Acting in accordance with internationally recognized human rights principles in our relationships with all stakeholders, including employees, suppliers, and business partners, and encouraging awareness and compliance across our value chain;
• Identifying human rights risks within our operations and value chain and taking necessary preventive and corrective actions.

Occupational Health and Safety

• Implementing and continuously improving preventive occupational health and safety systems across all operations;
• Encouraging active participation of all employees in risk reduction efforts;
• Taking proactive measures that go beyond legal requirements.

Customer Health and Safety

• Developing safe and healthy products through a continuous improvement approach to protect human health.

Employment

• Creating a working environment that promotes ethical values, mutual trust, diversity, inclusion, work–life balance, and practices exceeding legal requirements.

Diversity and Equal Opportunities

• Implementing a diversity and equal opportunity policy throughout the employee lifecycle, without discrimination based on gender, age, belief, disability, ethnicity, or other personal characteristics.

Training and Development

• Supporting corporate development through training programs that enhance employee skills and capabilities.

ENVIRONMENTAL

Climate Change, Energy and Emissions

Yünsa recognizes climate change as a material risk and opportunity and manages climate-related physical and transition risks as a distinct risk category. The company aligns its climate strategy with international and European climate-related public policy frameworks, including the EU Green Deal, and closely monitors emerging regulatory mechanisms such as the Carbon Border Adjustment Mechanism (CBAM) as reference frameworks for industrial decarbonization.

Although CBAM does not currently apply to the textile sector, Yünsa proactively monitors regulatory developments and aligns its climate transition roadmap, energy sourcing strategy, capital allocation priorities, and supplier engagement practices with anticipated climate policy directions and long-term decarbonization pathways.

To reduce the environmental impact associated with employee transportation, Yünsa promotes sustainable commuting and business travel practices. The company encourages the use of online meetings and video conferencing as an alternative to business travel, supports shared transportation and carpooling practices among employees on similar routes, and provides shuttle services where applicable to reduce single-occupancy vehicle use.

Within this framework, Yünsa:

• Measures and assesses energy consumption and implements proactive improvement measures;
• Identifies energy-intensive processes and reduces energy intensity through efficient resource use;
• Reduces greenhouse gas emissions arising from its operations;
• Supports global efforts to mitigate climate change.

Water Management

• Measuring and assessing water consumption and implementing efficiency measures;
• Identifying water-intensive processes and reducing water intensity;
• Implementing initiatives to improve water efficiency across operations.

Waste and Wastewater

• Taking measures to reduce all types of waste, including wastewater, and ensuring environmentally sound waste management;
• Supporting circular economy principles through waste recovery and reuse, where feasible.

Materials

• Selecting sustainable materials suitable for cleaner production;
• Minimizing environmental impacts through efficient material use;
• Increasing the use of recycled and responsibly sourced materials.
• Establishing a sustainable packaging approach aimed at reducing packaging intensity and environmental impact across operations
• Prioritizing the assessment of alternative packaging materials with lower environmental footprints, including recyclable, reusable, or reduced-material options
• Integrating sustainability criteria into future packaging design, procurement, and supplier selection processes.

ECONOMIC

• Creating long-term economic value that contributes to social development;
• Ensuring sustainable growth through comprehensive corporate risk assessment;
• Working with suppliers that demonstrate commitment to ethical conduct, employee rights, occupational health and safety, environmental protection, and resource efficiency;
• Developing sustainable products through innovation, R&D, and responsible production practices.

CORPORATE GOVERNANCE

• Conducting operations in line with ethical, transparent, and accountable corporate governance principles;
• Raising sustainability awareness among employees and stakeholders;
• Maintaining strong stakeholder engagement and communication;
• Ensuring sustainability responsibilities are shared across the organization and value chain;
• Complying with applicable national and international legislation;
• Maintaining zero tolerance for corruption and bribery.

 

CLIMATE GOVERNANCE AND RISK MANAGEMENT

Oversight of climate-related risks and opportunities is ensured at the Board level. A designated member of the Board of Directors is responsible for overseeing climate-related strategy, targets, and risk management, including both transition and physical climate risks, and regularly reports to the Board on climate-related matters.

Climate Governance, Risk Management and Accountability

Yünsa maintains a dedicated process to identify, assess, and manage climate change–related risks, distinct from its general enterprise risk management framework. Climate-related physical and transition risks are periodically evaluated based on their potential financial, operational, and supply chain impacts.

The outcomes of these assessments are used to inform the company’s climate transition roadmap, investment planning, and operational resilience measures. Climate-related risks and mitigation actions are monitored on a regular basis and reported to senior management and the Board as part of the company’s climate governance structure.

A portion of the variable remuneration of the CEO and selected executive committee members is linked to the achievement of climate-related performance indicators, including greenhouse gas emissions reduction targets and progress against the company’s climate transition roadmap.

• In line with the foregoing principles, Yünsa commits to:
• Continuously improving sustainability performance;
• Fostering a corporate culture of continuous development and improvement;
• Reviewing and enhancing systems, processes, and communication channels in line with evolving requirements;
• Strengthening sustainability governance, risk management practices, and strategic priorities in response to scientific developments, stakeholder expectations, and regulatory trends.