Submitted on 2024-09-30

Introduction *

Commitment and Targets *

Own Emissions *

Value Chain Emissions *

(optional)

Climate Solutions *

(optional)

Management, Strategy and Climate Risk *

(optional)

Results, Challenges and Outlook *

Version 3.0

Introduction *

1.1 Reporting year

*

2023

1.1.1 Reporting period

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from 1.2023 to 12.2023

1.2 Describe your business activities

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ACS Clothing Ltd. is Europe's largest circular fashion company, specialising in rental, reuse, and recycling solutions for garments. The company focuses on offering sustainable alternatives to the traditional linear fashion model, which relies heavily on the production, consumption, and disposal of clothing. By embracing circular economy principles, ACS extends the life cycle of garments through services such as rental, garment cleaning, repair, and refurbishment. Their core business activities include: 1. Garment Rental: ACS manages the logistics and maintenance of rental garments for fashion brands and retailers. This model allows customers to rent clothing rather than purchase it, reducing the demand for new production and encouraging more sustainable consumer behavior. 2. Take-back & Resale Programs: Through take-back schemes, ACS helps brands collect used garments, which are then cleaned, repaired, and resold. This ensures that clothing is reused multiple times, reducing waste. 3. Garment Care Services: ACS operates large-scale laundry facilities, providing cleaning, mending, and sanitization services to extend the usable life of clothing. The company has integrated water conservation and other eco-friendly practices into its operations to minimise its environmental footprint. 4. Recycling and Upcycling: ACS also engages in garment recycling and upcycling initiatives, repurposing fabrics and materials from end-of-life garments into new products or ensuring that they are recycled responsibly. They work with various industries, including handling specialised projects like the recycling of PPE. 5. Sustainability Consulting: ACS offers expertise and support for brands and retailers looking to adopt circular economy models. This includes consulting on best practices for sustainability, product lifecycle management, and compliance with emerging regulations like Extended Producer Responsibility (EPR). Through these activities, ACS helps its clients reduce their environmental impact while promoting more sustainable fashion practices, aligning with global sustainability goals.

1.3 Annual revenue in the reporting year

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10101472
USD

1.4 Number of employees in the reporting year

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164

1.4.1 Full-time equivalent (FTE) or headcounts

*
Headcounts

1.5 Let us know if your company is a parent company or subsidiary

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Parent company

Commitment and Targets *

2.1 Net zero target year

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2030

2.1.1 Base year

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2019

2.2 Near-term target

*

50% of absolute total emission reduction from my base year by 2025

75 of absolute total emission reduction from my base year by 2027

90 of absolute total emission reduction from my base year by 2028

2.3 Provide any additional comments or context on your net zero and near term targets.

*
To achieve net-zero emissions by 2030, ACS set several specific targets focused on reducing emissions across all Scope 1, 2, and 3 categories. These targets are aimed at minimising environmental impact and promoting sustainable practices across the business: 1. Reducing Scope 1 Emissions (Direct Emissions) - Energy Efficiency in Operations: Implement energy-efficient technologies to reduce fuel consumption in heating and other direct operational activities. - Alternative Energy Sources: Transition away from fossil fuel-based energy to renewable energy sources for heating and other direct energy uses within ACS facilities. - Green Fleet Transition: Minimise emissions from transportation and logistics by transitioning to a green shipping fleet, utilising electric or low-emission vehicles, optimising delivery routes, and adopting sustainable fuel alternatives to reduce overall fuel consumption and carbon footprint. 2. Reducing Scope 2 Emissions (Indirect Energy Consumption) - 100% Renewable Electricity: Switch to 100% renewable electricity for all ACS operations, ensuring that all energy used within facilities is sourced from renewable options like wind, solar, or hydroelectric power. - Energy Efficiency Initiatives: Upgrade lighting and equipment to energy-efficient alternatives, such as smart LED lighting, voltage optimisation and energy-efficient machinery, to reduce electricity consumption across the business. - Install Solar Roof: Install solar panels on facility rooftops to generate on-site renewable energy, reducing reliance on external power sources and further minimizing emissions. - Install Heat Pumps: Transition from traditional heating systems to energy-efficient heat pumps, utilising renewable energy to heat and cool facilities while reducing overall energy consumption. - Install Wind Turbines: Explore the installation of small-scale wind turbines to generate additional renewable energy on-site, further contributing to ACS's goal of using 100% renewable electricity across all operations. - These initiatives will help ACS significantly reduce Scope 2 emissions and move closer to its net-zero target. 3. Reducing Scope 3 Emissions (Indirect Emissions from Supply Chain and Other Activities) - Sustainable Procurement Practices: Work with suppliers to source sustainable materials and reduce emissions across the supply chain. Prioritise procurement from suppliers who follow sustainable and low-carbon practices. - Circular Economy Initiatives: Scale up ACS’s rental, resale, and renewal services to extend the lifecycle of garments, reducing the need for new production and thereby minimizing emissions from the entire value chain. - Employee Commuting and Travel: Encourage sustainable commuting options for employees, such as public transportation, carpooling, and remote work, to reduce travel-related emissions. - Waste Reduction and Recycling: Implement zero-waste practices and maximise recycling efforts to reduce emissions from waste generation and disposal. 4. Technological Innovations for Carbon Reduction - AI-Powered Defect Detection: Utilise advanced technologies like AI defect detection to reduce waste in the clothing renewal process, lowering resource usage (water, energy) and minimising emissions. - Ozone Sanitisation Chamber: Continue using the ozone sanitisation process to reduce water, chemical, and energy consumption, further cutting emissions linked to garment renewal. 5. Offsetting Residual Emissions - For any remaining emissions that cannot be eliminated by 2030, ACS plans to invest in high-quality carbon offset projects, ensuring that the business achieves net zero by balancing unavoidable emissions with verified offsets such as reforestation, sea grass plantations, peatland restoration, renewable energy projects, or carbon capture initiatives. 6. Monitoring & Reporting Progress - Regular Carbon Footprint Assessments: Continue working with third-party organisations like ClimatePartner, Normative and Worldfavor to monitor, report, and verify carbon footprint progress, ensuring alignment with the net-zero goals. - Sustainability Scorecard: ACS uses a sustainability scorecard to track progress on these targets and adjust strategies as necessary to ensure all goals are met by 2025. By focusing on energy efficiency, renewable energy adoption, circular economy principles, and reducing supply chain emissions, ACS is on track to meet its ambitious net-zero target by 2025.

Own Emissions *

3.1 To reduce emissions in line with my commitment, my company has a plan and is taking action

*
Yes

Energy consumption

3.2 Total energy consumption

*
2313884 kwh

3.3 Renewable energy

*
2301221 kwh

Scope 1 emissions

3.4 Scope 1 emissions

*
0.557 metric tons CO2e

Scope 2 emissions

3.5 Location based scope 2 emissions

*
144.3 metric tons CO2e

3.6 Market based scope 2 emissions

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0 metric tons CO2e

3.7 Describe your plans and actions taken to reduce scope 1 & 2 emissions.

*
To reduce Scope 1 emissions (direct emissions from operations, such as fuel consumption for heating and company-owned vehicles), ACS Clothing Ltd. implemented several key initiatives focused on energy efficiency and transitioning to renewable energy sources. Below are the primary initiatives: 1. Energy Efficiency in Operation • Upgrading Heating Systems: ACS implemented energy-efficient technologies to reduce fuel consumption for heating. This included optimizing heating systems across their facilities, ensuring better temperature control and reducing energy waste. • Heat Pumps Installation: ACS began the transition from traditional fossil-fuel-based heating systems to energy-efficient heat pumps. These pumps use renewable energy sources to heat and cool the facilities, drastically reducing direct emissions from heating. 2. Transition to Alternative Energy Sources • Use of Renewable Energy for Heating: ACS transitioned from using fossil fuels for heating to utilizing renewable energy wherever possible, such as solar-powered heating systems or integrating heat pumps. • Solar Panels: The installation of solar panels on facility rooftops allowed ACS to generate clean, renewable energy on-site, reducing reliance on external energy sources and minimizing fuel consumption used for heating and other operations. 3. Green Fleet Transition • Transition to Low-Emission Vehicles: ACS focused on reducing emissions from its transportation and logistics activities by transitioning to a green shipping fleet. This included replacing traditional vehicles with electric or hybrid vehicles to reduce fuel consumption and emissions. • Optimising Delivery Routes: ACS implemented route optimisation technologies to minimise fuel usage for logistics, ensuring vehicles take the most efficient routes to reduce overall mileage and emissions. 4. Reducing On-Site Energy Consumption • Energy-Efficient Equipment: ACS upgraded its on-site equipment and machinery to more energy-efficient models, reducing the direct fuel or energy consumption required for daily operations. This included upgrading machinery used in garment processing to more energy-efficient alternatives. 5. Sustainable Infrastructure • Green Building Practices: ACS invested in sustainable infrastructure across its facilities, including enhanced insulation and energy management systems. These improvements minimised the need for heating and cooling, directly reducing Scope 1 emissions from energy use. 6. Behavioural & Operational Changes • Employee Training: ACS engaged employees in energy-saving practices, such as turning off heating and equipment when not in use, optimizing thermostat settings, and regular maintenance of heating systems to prevent energy wastage. 7. Monitoring & Optimising Fuel Use • Fuel Monitoring Systems: ACS introduced monitoring systems to track fuel use across their operations, particularly in transportation. These systems helped identify areas of high fuel consumption and enabled the company to adjust and reduce unnecessary fuel usage. By implementing these initiatives, ACS successfully reduced their Scope 1 emissions by focusing on energy efficiency, transitioning to renewable energy sources, and optimizing operational practices. These actions not only minimised their carbon footprint but also aligned with the company’s broader goal of achieving net-zero emissions by 2025. ACS Clothing Ltd. addressed Scope 2 emissions - which are indirect emissions from purchased energy, primarily electricity - by implementing a series of key initiatives aimed at reducing energy consumption and transitioning to renewable energy sources. These initiatives were designed to significantly cut the company’s reliance on fossil fuels for electricity and improve energy efficiency across their operations. 1. Switch to 100% Renewable Electricity • Transition to Renewable Energy Sources: ACS committed to powering all their facilities with 100% renewable electricity, sourced from wind, solar, and hydroelectric power. By switching to renewable energy providers, ACS significantly reduced the carbon emissions associated with electricity consumption. • Green Energy Contracts: ACS entered into long-term contracts with green energy providers, ensuring a stable and reliable supply of renewable electricity for their operations. 2. On-Site Renewable Energy Generation • Solar Panel Installation: ACS installed solar panels on the rooftops of their facilities to generate clean, renewable energy on-site. This allowed the company to reduce its reliance on grid-supplied electricity and minimise Scope 2 emissions from electricity consumption. • Heat Pumps: To further reduce reliance on fossil-fuel-based heating, ACS installed heat pumps that utilise renewable energy for heating and cooling their facilities. Heat pumps are far more energy-efficient than traditional systems and significantly reduced electricity usage. • Wind Turbines: ACS explored the installation of small-scale wind turbines at some of their facilities to generate additional renewable energy, further reducing the company’s dependence on grid electricity and contributing to emissions reductions. 3. Energy Efficiency Initiatives • Smart LED Lighting: ACS upgraded all lighting across their facilities to smart LED lighting systems, which are highly energy-efficient compared to traditional lighting. This not only reduced electricity consumption but also lowered emissions associated with lighting their operations. • Voltage Optimisation: To further improve energy efficiency, ACS installed voltage optimisation technology across their sites. This technology helps ensure that equipment and machinery only use the electricity they need, reducing waste and improving overall energy efficiency. • Energy-Efficient Machinery: ACS replaced older, less efficient machinery with modern, energy-efficient equipment that consumes less electricity during garment processing, further cutting Scope 2 emissions. 4. Smart Energy Management Systems • Energy Monitoring: ACS implemented energy management systems to track and monitor electricity consumption across all their facilities. These systems provided real-time data on energy use, allowing the company to identify areas of inefficiency and adjust operations to reduce electricity consumption. • Automation & Controls: ACS introduced automated controls for lighting, heating, and cooling systems, ensuring that energy was only used when needed. Automated systems were set to optimise energy usage, particularly during off-peak hours, minimizing unnecessary consumption. 5. Sustainable Building Upgrades • Green Building Practices: ACS invested in sustainable infrastructure improvements across their facilities, such as better insulation and energy-efficient windows, to reduce the need for heating and cooling. These upgrades helped minimise electricity demand and reduced Scope 2 emissions. • Smart Thermostats and HVAC Systems: By installing smart thermostats and upgrading their HVAC systems, ACS was able to optimise the heating and cooling of their facilities, reducing electricity consumption and improving overall energy efficiency. 6. Employee Engagement in Energy Efficiency • Sustainability Training: ACS engaged employees in energy-saving initiatives, educating them on the importance of reducing electricity usage and how they could contribute to minimising energy waste in their daily operations. This helped foster a culture of sustainability across the company. • Behavioural Changes: Employees were encouraged to turn off lights, equipment, and heating systems when not in use, helping to further reduce unnecessary electricity consumption. 7. Partnership with External Stakeholders • Scottish Enterprise Support: ACS received support from Scottish Enterprise to fund and implement energy efficiency projects, including the installation of renewable energy systems and energy-efficient equipment. • Zero Waste Scotland Collaboration: ACS worked with Zero Waste Scotland to explore opportunities for further reducing their Scope 2 emissions through innovative technologies and energy management strategies. 8. Continuous Monitoring and Reporting • Regular Energy Audits: ACS conducted regular energy audits to assess the effectiveness of their energy efficiency measures and identify areas for further improvement. This continuous monitoring allowed ACS to stay on track with their emissions reduction goals. • Sustainability Scorecard: ACS used a sustainability scorecard to track progress in reducing electricity consumption and Scope 2 emissions. This scorecard was reviewed regularly by the Board to ensure targets were being met and adjustments were made where necessary. By focusing on the transition to 100% renewable electricity, implementing energy-efficient technologies, and generating on-site renewable energy, ACS successfully reduced their Scope 2 emissions. These efforts contributed significantly to the company's overall goal of achieving net-zero emissions by 2025, while also aligning with their broader commitment to sustainability and circular business practices.

3.8 Describe the calculation methodology and comment on the data accuracy, including any tools/methods used to calculate.

*
ACS Clothing Ltd. has established a robust system for regularly measuring and reporting on its emissions to ensure they remain on track toward achieving their net-zero emissions goal by 2030. Below is an overview of the frequency with which ACS measures and reports its emissions: 1. Annual Emissions Reporting • Comprehensive Carbon Footprint Assessment: ACS conducts a full carbon footprint assessment on an annual basis in collaboration with ClimatePartner and other sustainability partners such as Normative and Worldfavor. This assessment includes detailed data on Scope 1, 2, and 3 emissions across all operations, including direct emissions, energy consumption, and supply chain emissions. The results are used to create an annual emissions report, which tracks overall progress toward the company’s net-zero goals. 2. Monthly Monitoring & Internal Reporting • Monthly Emissions Monitoring: ACS uses real-time emissions monitoring systems and software solutions to track emissions on a monthly basis. This includes data from energy management systems, smart meters, and IoT devices that provide insights into electricity and fuel consumption, as well as waste and water usage. These monthly reports help identify trends and enable the company to make timely adjustments to operational practices. • Internal Reporting to Management: Emissions data is reviewed internally each month and presented to the senior management team. This monthly review includes updates on energy usage, transportation emissions, and supplier compliance with carbon reduction targets. It ensures that the company can swiftly address any areas that are not progressing as expected. 3. Quarterly All-Hands Updates • Quarterly Emissions Updates: ACS provides quarterly updates on emissions performance during all-hands meetings. These updates share key progress with all employees, ensuring transparency and engagement across the company. Employees are informed about how their work contributes to the reduction of emissions and the overall progress toward net-zero goals. • Sustainability Scorecard Review: The sustainability scorecard, which tracks emissions and other sustainability metrics, is reviewed on a quarterly basis by leadership and shared with staff to promote accountability and progress visibility across the organisation. 4. Weekly Sustainability Strategy Meetings • Board-Level Review: ACS conducts weekly sustainability strategy meetings with the board of directors, during which emissions data is discussed. This frequent review ensures that emissions reduction strategies are consistently evaluated and adjusted as needed. By reviewing real-time emissions data from the monitoring systems, the board ensures that ACS remains proactive in managing its carbon footprint. 5. Real-Time Emissions Tracking • Continuous Monitoring: ACS has invested in technologies such as IoT sensors and smart metering systems that provide real-time tracking of energy use and emissions across its facilities. This allows ACS to continuously monitor electricity, heating, cooling, and logistics emissions, ensuring quick identification of inefficiencies and enabling immediate corrective actions when necessary. 6. Supplier Emissions Reporting • Regular Supplier Reporting: Key suppliers are required to report emissions data regularly, typically on a quarterly or biannual basis, depending on their role in the supply chain. This ensures that ACS can closely track Scope 3 emissions and hold suppliers accountable for meeting the company’s sustainability standards. 7. External Audits & Verification • Annual Third-Party Audits: To ensure the accuracy and transparency of its emissions data, ACS undergoes an annual third-party audit conducted by ClimatePartner and other sustainability partners. These audits verify the emissions data and confirm that ACS is making measurable progress toward its targets. The audit results are included in the company’s annual sustainability report, which is shared with external stakeholders. 8. Public Reporting • Annual Sustainability Report: ACS publishes an annual sustainability report, which includes detailed emissions data and progress updates on its net-zero journey. This report is shared with stakeholders, including customers, partners, and regulators, providing transparency on how ACS is managing its carbon footprint. • Commitment to Global Initiatives: As a signatory of The Climate Pledge, UN Global Compact, and UN’s Race to Zero, ACS regularly reports its emissions data and reduction progress in alignment with these global initiatives. This reporting ensures that ACS is adhering to international sustainability standards. By measuring emissions continuously, monthly, quarterly, and annually, ACS ensures that it can track its carbon footprint in real-time while making data-driven decisions throughout the year. This frequent reporting and review process allows ACS to maintain transparency and accountability as it works toward its net-zero target by 2030. ACS Clothing Ltd. has further aligned its net-zero targets with global standards by committing to several key international sustainability initiatives: 1. Science-Based Targets Initiative (SBTi) ACS’s emissions reduction goals are aligned with the Science-Based Targets initiative (SBTi), which ensures that their targets are in line with the Paris Agreement to limit global warming to well below 2°C, with efforts to limit it to 1.5°C. By adhering to the SBTi framework, ACS demonstrates that their emissions reductions are based on the latest climate science, ensuring their path toward net zero is credible and effective. 2. Commitment to the UN's Race to Zero Campaign ACS has committed to the UN's Race to Zero, a global campaign aimed at rallying businesses, cities, and investors to achieve net-zero emissions by 2050. By joining this initiative, ACS pledges to take immediate action to halve emissions by 2025 and reach net-zero carbon emissions by 2030, far ahead of the 2050 target set by the Race to Zero. 3. Global Compact Signatory As a signatory of the United Nations Global Compact, ACS has committed to integrating the Ten Principles of the Compact into its strategies and operations, particularly those related to environmental sustainability. This includes taking decisive climate action in alignment with the UN Sustainable Development Goals (SDGs), particularly SDG 13: Climate Action and DG 12: Responsible Consumption and Production. 4. Climate Pledge Signatory ACS has also signed The Climate Pledge, a global commitment co-founded by Amazon and Global Optimism. This pledge aims to meet the goals of the Paris Agreement 10 years early by achieving net-zero carbon emissions by 2040. ACS’s commitment to reaching net-zero by 2030 exceeds the requirements of this pledge, further demonstrating their leadership in sustainability. 5. Alignment with Scope 1, 2, and 3 Emissions ACS’s targets comprehensively address Scope 1 (direct), Scope 2 (indirect), and Scope 3 (value chain) emissions. By focusing on these scopes, ACS aligns with the Greenhouse Gas Protocol and SBTi’s requirements for comprehensive emissions accounting and reduction. Specific measures include transitioning to 100% renewable electricity, implementing green logistics, and focusing on sustainable procurement practices throughout the supply chain. 6. Sustainability Reporting & Accountability Through partnerships with third-party organizations such as ClimatePartner, Normative, and Worldfavor, ACS ensures their emissions reduction efforts are monitored, reported, and verified in line with global standards such as the Task Force on Climate-Related Financial Disclosures (TCFD) and the Global Reporting Initiative (GRI). 7. Carbon Offsetting & High-Quality Standards For residual emissions, ACS is committed to investing in high-quality carbon offset projects aligned with international standards such as the Verified Carbon Standard (VCS) and Gold Standard. These offsets contribute to global carbon reduction efforts, including reforestation, seagrass plantations, peatland restoration, and renewable energy projects. By aligning with the UN’s Race to Zero, becoming a Global Compact signatory, and joining The Climate Pledge, ACS is reinforcing its leadership in sustainability. Their commitment to Science-Based Targets and comprehensive emissions reductions across Scope 1, 2, and 3, along with transparent reporting and high-quality offsetting, ensures that ACS is on track to meet its ambitious net-zero target by 2030 while contributing to the global effort to mitigate climate change.

Value Chain Emissions (optional) *

Scope 3 emissions

4.1 Have you measured any of your scope 3 emissions?

*
Yes

4.1.1 Total scope 3 emissions

*
1227 metric tons CO2e

Supply chain related - upstream emissions

Customer related - downstream emissions

4.1.17 Do you have a plan and are taking action to reduce emissions from your value chain?

*

Yes

To address Scope 3 emissions, which constitute the largest portion of ACS Clothing Ltd.’s carbon footprint, encompassing indirect emissions from the supply chain, employee commuting, and other activities, ACS have been implementing a range of strategies. These focus on supplier collaboration, circular economy practices and operational improvements to minimise emissions throughout the value chain. Below is a consolidated overview of the key strategies employed: 1. Sustainable Procurement Practices • Engaging Suppliers: ACS collaborate closely with suppliers to encourage sustainable practices across the supply chain, focusing on reducing their carbon footprints, adopting energy-efficient technologies, and sourcing materials with a lower environmental impact. • Supplier Code of Conduct: ACS have established a Supplier Code of Conduct that required suppliers to meet specific environmental standards, including reducing energy consumption, cutting waste, and lowering emissions. • Prioritising Low-Carbon Materials: ACS has shifted procurement strategies to prioritise the use of sustainable, low-carbon materials, ensuring that textiles and other consumables were environmentally friendly. 2. Expanding Circular Economy Initiatives • Rental and Resale Models: ACS has scaled up its rental and resale services to extend the lifespan of garments, reducing the need for new production and minimising emissions from manufacturing, transportation, and disposal. • Garment Renewal: The company invested in AI-powered defect detection and ozone sanitisation technologies to renew and refurbish garments, extending their lifecycle and further reducing supply chain emissions. • Product Take-Back Programmes: ACS launched take-back schemes that allowed customers to return garments for renewal and resale, diverting clothing from landfills and lowering emissions associated with waste and new manufacturing. 3. Optimising Logistics & Transportation • Green Fleet Transition: ACS introduced low-emission vehicles and electric/hybrid options for transportation and reverse logistics, reducing emissions from vehicle use. • Route Optimisation: ACS optimised delivery routes using advanced logistics management software to reduce fuel consumption, travel distances, and transportation-related emissions. • Third-Party Logistics Collaboration: ACS collaborated with third-party logistics providers that adhered to carbon reduction strategies, including using fuel-efficient vehicles and optimising load capacity. 4. Employee Commuting & Travel • Encouraging Sustainable Commuting: ACS promoted sustainable commuting options such as public transportation, carpooling, and cycling to lower emissions from employee travel. • Remote Work Policies: Flexible remote work policies were introduced to reduce commuting-related emissions, especially for employees living farther from the office. • Electric Vehicle Incentives: ACS incentivised electric vehicle (EV) use by installing charging stations and offering salary sacrifice schemes to encourage employees to switch to EVs. 5. Reducing Waste & Enhancing Recycling • Zero-Waste Initiatives: ACS implemented zero-waste practices by increasing recycling and minimising waste sent to landfills. This included recycling textiles, packaging, and other materials. • Textile Recycling & Upcycling: ACS developed solutions to recycle and upcycle garments that were no longer fit for resale, reducing waste and emissions. • Packaging Innovations: ACS introduced recyclable and compostable packaging, minimising the environmental impact associated with packaging production, transportation, and disposal. 6. Supplier Collaboration & Training • Capacity Building: ACS worked with suppliers to build their capacity for sustainable practices by offering training and resources. This helped reduce emissions throughout the supply chain. • Supplier Emissions Tracking: ACS required key suppliers to measure and report their emissions, ensuring alignment with ACS's sustainability goals. 7. Product Innovation & Design for Sustainability • Designing for Longevity: ACS collaborated with fashion brands to design durable garments that are easier to renew and recycle, thereby reducing emissions from frequent replacements. • Sustainable Product Development: ACS and its brand partners developed product lines using eco-friendly materials and low-impact production processes to minimise emissions. 8. Offsetting Residual Scope 3 Emissions • For any remaining Scope 3 emissions that cannot be eliminated, ACS will invest in high-quality carbon offset projects such as reforestation, seagrass plantations, and peatland restoration to ensure they reached their net-zero goals. 9. Continuous Monitoring & Reporting • Emissions Tracking Tools: ACS partnered with organisations like ClimatePartner, Normative, and Worldfavor to track and report on Scope 3 emissions reductions. Regular monitoring ensured strategies were adjusted for maximum effectiveness. • Sustainability Scorecard: ACS use a sustainability scorecard to monitor key metrics related to Scope 3 emissions, including supplier engagement, logistics, and employee commuting. Regular reviews helped ensure progress toward net-zero goals. 10. Transition from Single-Use Consumables to Reusable Packaging • Elimination of Single-Use Cardboard: ACS moved from using single-use cardboard to reusable packaging, which significantly reduced waste and associated carbon emissions. • Reusable Packaging Systems: These packaging systems were designed to be durable and eco-friendly, contributing to lower environmental impacts across the supply chain. 11. Replacement of Hydrocarbon-Based Polyethylene with Sustainable Alternatives • Tree-Sap-Based Garment Shrouds: ACS replaced hydrocarbon-based polyethylene garment covers with a tree-sap-based biodegradable alternative, reducing reliance on fossil fuels and lowering emissions tied to traditional garment covers. • Biodegradable and Compostable Packaging: The company also introduced biodegradable garment covers and compostable packaging materials, further minimising environmental impact and waste sent to landfills. By focusing on supply chain collaboration, expanding circular economy models, optimising logistics, transitioning to reusable packaging, and replacing hydrocarbon-based materials with sustainable alternatives, ACS effectively tackled Scope 3 emissions. These efforts significantly contributed to their progress toward achieving net-zero emissions by 2030 while promoting sustainability across the fashion industry.

4.2 Have you asked any of your suppliers to set a net zero target (either voluntarily or as a requirement)?

*
Yes

4.2.1 What percentage of your suppliers have you asked?

*
100 of emissions covered

4.3 Have you communicated your commitment and actions to any of your customers?

*
Yes

4.4 Describe the calculation methodology and comment on the data accuracy and any tools used to calculate your scope 3 emissions.

*
ACS Clothing Ltd. has established a robust system for regularly measuring and reporting on its emissions to ensure they remain on track toward achieving their net-zero emissions goal by 2030. Below is an overview of the frequency with which ACS measures and reports its emissions: 1. Annual Emissions Reporting • Comprehensive Carbon Footprint Assessment: ACS conducts a full carbon footprint assessment on an annual basis in collaboration with ClimatePartner and other sustainability partners such as Normative and Worldfavor. This assessment includes detailed data on Scope 1, 2, and 3 emissions across all operations, including direct emissions, energy consumption, and supply chain emissions. The results are used to create an annual emissions report, which tracks overall progress toward the company’s net-zero goals. 2. Monthly Monitoring & Internal Reporting • Monthly Emissions Monitoring: ACS uses real-time emissions monitoring systems and software solutions to track emissions on a monthly basis. This includes data from energy management systems, smart meters, and IoT devices that provide insights into electricity and fuel consumption, as well as waste and water usage. These monthly reports help identify trends and enable the company to make timely adjustments to operational practices. • Internal Reporting to Management: Emissions data is reviewed internally each month and presented to the senior management team. This monthly review includes updates on energy usage, transportation emissions, and supplier compliance with carbon reduction targets. It ensures that the company can swiftly address any areas that are not progressing as expected. 3. Quarterly All-Hands Updates • Quarterly Emissions Updates: ACS provides quarterly updates on emissions performance during all-hands meetings. These updates share key progress with all employees, ensuring transparency and engagement across the company. Employees are informed about how their work contributes to the reduction of emissions and the overall progress toward net-zero goals. • Sustainability Scorecard Review: The sustainability scorecard, which tracks emissions and other sustainability metrics, is reviewed on a quarterly basis by leadership and shared with staff to promote accountability and progress visibility across the organisation. 4. Weekly Sustainability Strategy Meetings • Board-Level Review: ACS conducts weekly sustainability strategy meetings with the board of directors, during which emissions data is discussed. This frequent review ensures that emissions reduction strategies are consistently evaluated and adjusted as needed. By reviewing real-time emissions data from the monitoring systems, the board ensures that ACS remains proactive in managing its carbon footprint. 5. Real-Time Emissions Tracking • Continuous Monitoring: ACS has invested in technologies such as IoT sensors and smart metering systems that provide real-time tracking of energy use and emissions across its facilities. This allows ACS to continuously monitor electricity, heating, cooling, and logistics emissions, ensuring quick identification of inefficiencies and enabling immediate corrective actions when necessary. 6. Supplier Emissions Reporting • Regular Supplier Reporting: Key suppliers are required to report emissions data regularly, typically on a quarterly or biannual basis, depending on their role in the supply chain. This ensures that ACS can closely track Scope 3 emissions and hold suppliers accountable for meeting the company’s sustainability standards. 7. External Audits & Verification • Annual Third-Party Audits: To ensure the accuracy and transparency of its emissions data, ACS undergoes an annual third-party audit conducted by ClimatePartner and other sustainability partners. These audits verify the emissions data and confirm that ACS is making measurable progress toward its targets. The audit results are included in the company’s annual sustainability report, which is shared with external stakeholders. 8. Public Reporting • Annual Sustainability Report: ACS publishes an annual sustainability report, which includes detailed emissions data and progress updates on its net-zero journey. This report is shared with stakeholders, including customers, partners, and regulators, providing transparency on how ACS is managing its carbon footprint. • Commitment to Global Initiatives: As a signatory of The Climate Pledge, UN Global Compact, and UN’s Race to Zero, ACS regularly reports its emissions data and reduction progress in alignment with these global initiatives. This reporting ensures that ACS is adhering to international sustainability standards. By measuring emissions continuously, monthly, quarterly, and annually, ACS ensures that it can track its carbon footprint in real-time while making data-driven decisions throughout the year. This frequent reporting and review process allows ACS to maintain transparency and accountability as it works toward its net-zero target by 2030. ACS Clothing Ltd. has further aligned its net-zero targets with global standards by committing to several key international sustainability initiatives: 1. Science-Based Targets Initiative (SBTi) ACS’s emissions reduction goals are aligned with the Science-Based Targets initiative (SBTi), which ensures that their targets are in line with the Paris Agreement to limit global warming to well below 2°C, with efforts to limit it to 1.5°C. By adhering to the SBTi framework, ACS demonstrates that their emissions reductions are based on the latest climate science, ensuring their path toward net zero is credible and effective. 2. Commitment to the UN's Race to Zero Campaign ACS has committed to the UN's Race to Zero, a global campaign aimed at rallying businesses, cities, and investors to achieve net-zero emissions by 2050. By joining this initiative, ACS pledges to take immediate action to halve emissions by 2025 and reach net-zero carbon emissions by 2030, far ahead of the 2050 target set by the Race to Zero. 3. Global Compact Signatory As a signatory of the United Nations Global Compact, ACS has committed to integrating the Ten Principles of the Compact into its strategies and operations, particularly those related to environmental sustainability. This includes taking decisive climate action in alignment with the UN Sustainable Development Goals (SDGs), particularly SDG 13: Climate Action and DG 12: Responsible Consumption and Production. 4. Climate Pledge Signatory ACS has also signed The Climate Pledge, a global commitment co-founded by Amazon and Global Optimism. This pledge aims to meet the goals of the Paris Agreement 10 years early by achieving net-zero carbon emissions by 2040. ACS’s commitment to reaching net-zero by 2030 exceeds the requirements of this pledge, further demonstrating their leadership in sustainability. 5. Alignment with Scope 1, 2, and 3 Emissions ACS’s targets comprehensively address Scope 1 (direct), Scope 2 (indirect), and Scope 3 (value chain) emissions. By focusing on these scopes, ACS aligns with the Greenhouse Gas Protocol and SBTi’s requirements for comprehensive emissions accounting and reduction. Specific measures include transitioning to 100% renewable electricity, implementing green logistics, and focusing on sustainable procurement practices throughout the supply chain. 6. Sustainability Reporting & Accountability Through partnerships with third-party organizations such as ClimatePartner, Normative, and Worldfavor, ACS ensures their emissions reduction efforts are monitored, reported, and verified in line with global standards such as the Task Force on Climate-Related Financial Disclosures (TCFD) and the Global Reporting Initiative (GRI). 7. Carbon Offsetting & High-Quality Standards For residual emissions, ACS is committed to investing in high-quality carbon offset projects aligned with international standards such as the Verified Carbon Standard (VCS) and Gold Standard. These offsets contribute to global carbon reduction efforts, including reforestation, seagrass plantations, peatland restoration, and renewable energy projects. By aligning with the UN’s Race to Zero, becoming a Global Compact signatory, and joining The Climate Pledge, ACS is reinforcing its leadership in sustainability. Their commitment to Science-Based Targets and comprehensive emissions reductions across Scope 1, 2, and 3, along with transparent reporting and high-quality offsetting, ensures that ACS is on track to meet its ambitious net-zero target by 2030 while contributing to the global effort to mitigate climate change.

Climate Solutions (optional) *

5.1 Do you classify any of your existing goods and/or services as a climate solution?

*
Yes

5.2 What percentage of your total revenue comes from sales of climate solutions?

*
100 %

5.3 Provide descriptions/names of your climate solutions:

*
1. Circular Fashion Services: ACS Clothing Ltd. offers comprehensive circular fashion services that include garment rental, repair, refurbishment, and resale, significantly reducing the need for new garment production. This directly lowers carbon emissions by extending the lifecycle of fashion products, helping to reduce textile waste and the associated environmental impact. 2. Take-Back Scheme: ACS operates a take-back scheme that encourages consumers to return unwanted clothing, which is then refurbished, upcycled, or recycled. This service prevents garments from ending up in landfills, reducing greenhouse gas emissions linked to the fashion industry's waste problem. 3. Sustainable Laundry Operations: ACS has developed an eco-friendly laundry system that reduces water and energy consumption compared to traditional laundry services. Their advanced technology ensures garments are cleaned using fewer resources and less pollution, contributing to reduced emissions in garment care. 4. Sanitisation Chamber for PPE: ACS introduced a sanitisation chamber for Personal Protective Equipment (PPE), extending the usable life of items like masks and gowns. This reduces waste and avoids the emissions from producing and disposing of single-use PPE. 5. Upcycling and Repurposing of PPE for SPL Powerlines: Through partnerships like the one with SPL Powerlines UK Limited, ACS provides recycling, upcycling, and repurposing solutions for PPE, ensuring that these materials are kept in circulation and out of landfills, which significantly cuts down on associated emissions. All these solutions are designed to reduce greenhouse gas emissions by promoting circularity and resource efficiency, helping society transition towards a net zero carbon economy.

5.4 Methodology used to assess these as climate solutions, and third party which has validated the assessment, if any:

*
ACS is in Discussion with ClimatePoint to assess our Climate Solutions: ACS Clothing Ltd. will utilise the ClimatePoint methodology to rigorously assess the environmental impact of its products and services, ensuring alignment with global 1.5°C targets and supporting the transition to a net zero carbon economy. The methodology includes several key steps: 1. Assessment of Carbon Footprint per Functional Unit: ClimatePoint evaluates the carbon footprint of ACS's products and services by comparing emissions per functional unit to conventional alternatives (business-as-usual scenarios). This includes assessing the full lifecycle of the product or service—from raw material sourcing, production, and use, to end-of-life processes such as recycling or disposal. Products and services must demonstrate at least a 50% reduction in emissions compared to the conventional option to qualify as a climate solution. 2. Primary Purpose of Emission Reduction: The methodology ensures that the core purpose of ACS’s solutions is to enable emission reductions for clients and stakeholders. This is critical for circular fashion models like garment rentals, refurbishments, and take-back schemes, where the reuse and prolonged lifespan of products directly result in fewer new garments being produced, minimising associated emissions. 3. Net Zero Compatibility: ClimatePoint assesses whether ACS’s services are fit for a net zero future by comparing their emissions per functional unit to established thresholds aligned with global climate targets. This analysis ensures that ACS’s operations—such as sustainable laundry systems and upcycling initiatives—meet or exceed credible emissions thresholds that are compatible with the 1.5°C ambition. 4. Quantification of Emission Reductions: The methodology involves a detailed quantification process where ACS’s climate solutions are measured for their effectiveness in reducing emissions. This includes calculating emissions avoided through service offerings like garment reuse, refurbishment, and sustainable laundering, compared to the environmental impact of producing new items or using conventional laundry methods. 5. Verification & Continuous Improvement: ClimatePoint encourages ACS to continuously improve its operations and climate solutions by periodically reviewing and updating its methodology to capture advancements in low-carbon technologies and best practices. This dynamic approach ensures that ACS’s services remain relevant and contribute to accelerating the transition towards a net zero economy. Through ClimatePoint’s methodology, ACS will be able to demonstrate that its circular fashion services, take-back schemes, and innovative laundry solutions are making measurable contributions to reducing greenhouse gas emissions, positioning the company as a leader in sustainable fashion and climate action.

Management, Strategy and Climate Risk (optional) *

6.1 What governance processes do you have in place for your climate strategy? Choose as many as are applicable.

*

Governance process in place,Person is responsible for climate strategy at board level

6.1.1 Please describe their position and responsibility.

*
Michael Cusack, Chief Sustainability Officer at ACS Clothing Ltd. As Chief Sustainability Officer (CSO), Michael Cusack plays a pivotal role in shaping and driving the company's climate strategy and broader sustainability initiatives at the board level. His responsibilities encompass a wide range of activities that align ACS's operations with global sustainability goals, particularly in the areas of reducing greenhouse gas emissions, fostering circular fashion, and advancing social and environmental sustainability. Key Responsibilities 1. Climate Strategy Leadership: Michael is responsible for the development, implementation, and oversight of ACS’s climate strategy. He ensures that all business activities align with the company's long-term goal of achieving net zero carbon emissions. This involves setting targets, managing key performance indicators (KPIs), and leading projects that reduce the company’s carbon footprint, particularly through circular economy practices. 2. Board-Level Climate Advocacy As the board-level advocate for sustainability, Michael drives climate discussions at the highest level, ensuring that sustainability is embedded into ACS’s core business strategy. He regularly presents the company's progress on emissions reductions, innovations in sustainable fashion, and overall environmental impact to the board and external stakeholders. 3. Developing Climate Solutions: Michael plays a critical role in shaping ACS's product and service offerings to meet the company's climate goals. He oversees the development of climate solutions, such as garment rental, refurbishing services, and sustainable laundry operations, ensuring that these services meet rigorous environmental standards and contribute to the reduction of greenhouse gas emissions. 4. Stakeholder Engagement: Michael liaises with a broad spectrum of stakeholders, including clients, government bodies, and industry partners, to advance ACS's climate agenda. He collaborates with organizations such as the United Nations Global Compact, the Climate Pledge, and WRAP 2030, ensuring that ACS remains at the forefront of sustainability within the fashion industry. 5. Monitoring & Reporting: As part of his role, Michael oversees the monitoring of ACS’s carbon footprint and sustainability performance. He ensures accurate reporting of Scope 1, 2, and 3 emissions, utilising tools like Normative, to provide transparency to stakeholders and compliance with global environmental standards. His team regularly assesses the effectiveness of ACS’s sustainability initiatives and makes recommendations for continuous improvement. 6. Innovation & Circular Economy Champion Michael is a key driver of ACS’s innovation in circular fashion. He leads the exploration and implementation of new technologies and business models that extend the lifecycle of garments, minimize waste, and reduce emissions. This includes ACS’s take-back schemes, upcycling programs, and partnerships focused on sustainable business models. 7. Social Sustainability & Disadvantaged Talent Development In addition to environmental initiatives, Michael oversees ACS’s efforts to create social impact. This includes leading the company’s disadvantaged talent pipeline program, which supports individuals from marginalised communities, such as refugees and ex-offenders, through apprenticeships and career progression opportunities. His work ensures ACS maintains its Disability Confident Leadership status and drives social mobility. 8. Strategic Collaborations Michael engages in high-level partnerships with organisations like Circularity Capital, Zero Waste Scotland, and industry bodies, to advance research, secure funding, and promote initiatives that accelerate sustainability and circularity. His leadership was instrumental in ACS’s participation in programs such as the Amazon Sustainability Accelerator and Innovate UK’s research projects on circular business models. 9. Embedding Sustainability into Corporate Culture A core aspect of Michael's role is fostering a culture of sustainability within ACS. He works across all departments to embed sustainable practices, promote green skills development, and ensure that all employees understand and contribute to ACS's climate goals. Key Attributes & Expertise - Passion for Sustainability: Michael is deeply committed to addressing climate change and advancing environmental sustainability, reflecting a personal mission to give back to society as he approaches the end of his career. - Visionary Leadership: He brings a visionary approach to ACS’s sustainability goals, continuously seeking innovative ways to reduce emissions and create circular business models that align with the company’s BCorp status and broader environmental commitments. - Expertise in Circular Fashion: With years of experience, Michael is a recognized expert in driving circular economy solutions, with a focus on reducing textile waste, optimizing resource use, and achieving net zero through sustainable business practices. Through his leadership as CSO, Michael ensures that ACS remains a leader in climate action, advancing sustainable fashion solutions while addressing both environmental and social challenges.

6.1.2 Is this person (or another at executive and board level) also responsible for climate risk?

*
Yes

6.2 Have you started to identify and assess your companies climate risks and opportunities?

*
Yes - we have identified both climate risks and opportunities

6.2.1 Where are the climate risks you've identified?

*
Both operations and value chains

6.2.2 How are you managing these climate risks? Choose as many as are applicable.

*

We've started to prioritise climate risks,We've mapped the impact of our climate risks over time (short, medium and long term horizons),We've Identified plans for adaptation to mitigate these risks

6.2.3 Provide any additional comments or context on your climate risks:

*
ACS Clothing Ltd. Climate Risks and Opportunities Assessment As a leading circular fashion company, ACS faces both climate-related risks and opportunities as it continues to develop and scale its sustainable business model. These can be categorised into physical and transition risks, as well as opportunities aligned with climate resilience, emissions reduction, and market leadership. Climate Risks 1. Physical Risks Extreme Weather Events: Increasing frequency and severity of extreme weather events such as floods, storms, or heatwaves may disrupt ACS’s operations, particularly its supply chain and logistics. This could result in increased costs due to damaged infrastructure, supply chain delays, or loss of inventory. Water Scarcity: Given ACS’s large-scale laundry operations, water scarcity poses a risk to maintaining sustainable operations. Rising global temperatures and climate change-related droughts could limit access to water resources, increasing operational costs and potentially hindering garment processing. 2. Regulatory Risks Stricter Environmental Regulations: Governments worldwide are adopting stricter regulations on carbon emissions, waste management, and environmental practices. ACS could face additional compliance costs if regulations tighten, particularly around water use, energy consumption, and waste disposal in fashion. Extended Producer Responsibility (EPR) Legislation: Future EPR regulations could impose additional costs and operational complexities on companies like ACS to manage the end-of-life of products, including increased responsibility for recycling and waste reduction. This could lead to increased operating expenses or the need for new systems to manage compliance. 3. Market & Reputational Risks Consumer Demand Shifts: If consumer interest in sustainable fashion plateaus or if there’s a rise in "greenwashing" claims across the industry, ACS may face reduced demand for its circular fashion services. Additionally, negative press or failure to meet sustainability targets could damage ACS’s reputation, leading to loss of customers or partnerships. Supply Chain Instability: Given its reliance on a circular supply chain, disruptions in sourcing reusable materials or delays in product take-back programs due to external factors (like geopolitical instability or supplier sustainability issues) could impact service delivery and increase costs. 4. Financial Risks Funding and Investment Pressures: As climate-related financial regulations emerge (e.g., Task Force on Climate-related Financial Disclosures - TCFD), ACS may face increased scrutiny from investors regarding their carbon footprint and overall climate resilience. Failure to meet investor expectations could reduce access to capital. Carbon Pricing: As more markets implement carbon pricing or taxes, ACS could face increased costs related to its energy consumption and emissions footprint, particularly if it relies on non-renewable energy sources in any part of its supply chain. Climate Opportunities 1. Circular Economy Growth Expansion of Circular Fashion Services: ACS has a competitive advantage in circular fashion and is well-positioned to capitalise on the growing demand for sustainable, low-carbon alternatives to traditional fashion. Opportunities include expanding the rental, refurbishment, and take-back models to new markets, particularly as consumers and businesses seek to reduce their environmental impact. Innovation in Upcycling and Recycling: ACS’s expertise in recycling and upcycling textiles and PPE presents opportunities to explore new revenue streams. Continued innovation in recycling technology (e.g., fabric regeneration) could lead to new partnerships and business models that align with a net zero future. 2. Sustainable Laundry Technology Water Conservation Innovations: As part of ACS’s focus on sustainable laundry services, investments in water-efficient technologies, like closed-loop systems or water recycling methods, can position the company as a leader in water conservation. This would address climate risks related to water scarcity and reduce operational costs in the long term. Energy-Efficient Operations: There is an opportunity to further reduce the energy consumption of ACS’s laundry and garment care services by implementing renewable energy sources (e.g., solar or wind) or energy-efficient technologies. This would cut down on emissions and operating costs, aligning ACS with global carbon reduction targets. 3. Policy & Regulatory Opportunities Government Incentives and Funding: ACS is positioned to benefit from climate-related government funding and incentives, such as grants for sustainable innovation, circular economy initiatives, and green technology adoption. As a leader in circular fashion, ACS could access funding to expand its services or collaborate on government-led sustainability projects. Extended Producer Responsibility (EPR) Leadership: While EPR legislation poses a risk, ACS is already ahead of many industry players by implementing a robust take-back scheme and circular economy principles. By proactively engaging in the development of EPR frameworks, ACS could influence policy and cement its position as a sustainability leader in fashion. 4. Consumer Demand for Sustainable Products Growing Demand for Sustainable and Ethical Fashion: Increasing consumer awareness and demand for ethical, low-carbon products represent a key opportunity for ACS. By leveraging its BCorp certification, social mobility programs, and commitment to reducing emissions, ACS can appeal to conscious consumers and build strong brand loyalty. Corporate Partnerships: As more businesses seek to meet their climate commitments, ACS can expand partnerships with corporations looking to integrate sustainable fashion solutions into their supply chains (e.g., through rental programs or recycling services). Corporate clients concerned with achieving net zero targets will look for partners like ACS who can help reduce their Scope 3 emissions. 5. Technological Advancements Digitalization and Automation: There is potential to leverage digital tools such as AI, machine learning, and blockchain to optimize supply chain efficiency, reduce waste, and enhance transparency in circular fashion models. Automation in processes like sorting, recycling, and garment refurbishment could further increase operational efficiency and lower costs. R&D for Low-Carbon Innovations: ACS could capitalise on research and development (R&D) opportunities to explore new low-carbon textiles or sustainable fashion innovations. This could result in first-mover advantages in producing low-impact fabrics, materials, or services that align with the company’s climate goals. While ACS faces climate-related risks, particularly related to physical impacts, regulatory pressures, and supply chain disruptions, it is also uniquely positioned to capitalize on substantial opportunities within the growing circular economy and sustainable fashion sector. By continuing to innovate in circular fashion, water conservation, and climate solutions, ACS can not only mitigate risks but also lead the transition toward a net zero carbon economy.

6.3 Have you integrated climate and/or nature into your company mission statement or shareholder agreements? If yes, describe how.

*

No

-

6.4 Have you taken actions this year outside of your emissions to accelerate climate progress?

*

Yes

This year, ACS has undertaken a series of actions outside its own emissions to accelerate climate progress. These initiatives focus on influencing the broader fashion industry, supporting external stakeholders, and advocating for policy changes that drive systemic shifts towards a sustainable, net zero carbon economy. Here are the key actions: 1. Industry Leadership and Advocacy Advancing Circular Economy Models: ACS has taken a leadership role in promoting circular fashion as a viable and necessary alternative to the traditional linear model. This includes sharing best practices with industry peers and participating in circular economy networks such as the UK Fashion and Textile Association (UKFT) and Zero Waste Scotland. By leading discussions on reducing textile waste and improving resource efficiency, ACS is influencing industry-wide adoption of more sustainable business models. Extended Producer Responsibility (EPR) Advocacy: As a proponent of Extended Producer Responsibility (EPR) frameworks, ACS has actively engaged with policymakers to shape regulations that hold producers accountable for the lifecycle of their products. This advocacy, including participation in pilot projects and working groups, supports the acceleration of EPR implementation across the fashion industry. Public Speaking and Thought Leadership: ACS executives, including Anthony Burns and Michael Cusack, have participated in high-profile industry events and conferences, such as the Drapers Sustainability Conference and the SDG Roadshow. These platforms allow ACS to advocate for the adoption of sustainable practices across the sector, amplifying its impact beyond its direct emissions. 2. Collaborations with External Organisations Partnership with SPL Powerlines for PPE Recycling: ACS partnered with SPL Powerlines UK Limited to handle the recycling, upcycling, and repurposing of Personal Protective Equipment (PPE). By offering sustainable solutions for PPE waste, ACS is contributing to a reduction in plastic and textile waste beyond its core fashion operations, aligning with broader goals to lower overall emissions in other industries. Collaboration with Academic Institutions: ACS continues to work with universities and research institutions to develop case studies and research projects that promote sustainable practices within the fashion industry. These collaborations focus on expanding the understanding of circular models and resource-efficient processes that can be implemented industry-wide, further accelerating climate progress. 3. Sustainable Fashion Salary Sacrifice Scheme Advocacy for Salary Sacrifice Scheme: ACS has been actively working to introduce a Sustainable Fashion Salary Sacrifice Scheme, which encourages consumers to purchase sustainable fashion products and services while receiving tax benefits. By reducing the cost barrier to sustainable options, this scheme aims to drive widespread consumer adoption of low-carbon fashion choices. The initiative could have significant implications across the industry, helping to create systemic demand for sustainable products. 4. Supporting Disadvantaged Communities and Social Mobility Disadvantaged Talent Pipeline Development: ACS has been a champion of social sustainability, developing a talent pipeline for individuals from disadvantaged backgrounds, including those with disabilities, refugees, and ex-offenders. This initiative indirectly accelerates climate progress by promoting inclusive economic growth and job creation in green industries, helping to foster the skills and expertise needed to support a low-carbon economy. Participating in BCorp and Disability Confident Networks: As a BCorp-certified company and a Disability Confident Leader, ACS has advocated for greater social inclusion within the context of sustainability. By promoting these values across their networks, ACS ensures that climate action is also socially equitable, encouraging other companies to prioritise both environmental and social sustainability in their operations. 5. Collaborating on Policy and Legislative Change Salary Sacrifice Discussions with MSPs and Government: ACS has been in discussions with Members of Scottish Parliament (MSPs), including Maurice Golden, to advocate for legislative support for circular fashion and salary sacrifice initiatives. By influencing government policies that support the uptake of sustainable fashion, ACS is playing a crucial role in creating favorable conditions for widespread climate action. Engagement in WRAP 2030 Commitments: ACS’s participation in WRAP’s (Waste and Resources Action Programme) 2030 strategy demonstrates its commitment to reducing waste and lowering emissions across the entire UK textile industry. By engaging in these nationwide programs, ACS is influencing broader climate-related goals beyond its direct operations. 6. Educational Initiatives and Capacity Building Working with Schools, Colleges, and Universities: ACS is actively involved in working with educational institutions to integrate sustainability into the curriculum, focusing on circular economy principles and green skills development. By fostering the next generation of sustainability leaders and professionals, ACS is accelerating progress toward long-term climate goals and preparing the workforce for a net zero economy. My Climate Path – My Fashion Path**: As part of the My Climate Path initiative, ACS has worked to inspire and educate young people about careers in sustainable and circular fashion. This initiative encourages climate-conscious thinking among the future workforce, which is crucial for achieving systemic changes across the fashion and retail sectors. ACS's actions beyond its own emissions this year are broad and impactful, targeting systemic change across the fashion industry, policy development, consumer behavior, and social inclusion. By leading advocacy efforts, engaging in policy discussions, fostering collaboration, and supporting educational initiatives, ACS is not only reducing its own emissions but also accelerating climate progress across the industry and society at large.

Results, Challenges and Outlook *

7.1 Provide any additional comments or context on your annual results and progress from previous years.

*
There has been a reduction in emissions versus 2022. This is largely due to that fact that we had an office refurbishment in 2022, so our capital goods was higher than this year. Our business travel has also reduced versus 2022 due to a decline in distance travelled and our policy to stop business class travel.

7.2 Do you face any key challenges in reducing emissions?

*

Reducing scope 3 emissions,Complexities in managing supply chain emissions,Slow societal and economic progress on climate action,Insufficient policies or government incentives,Insufficient funding,Low return on investment,Limited influence over suppliers

7.3 Has there been any third party validation of the data submitted in this report?

*

Yes

To achieve its goal of net-zero emissions by 2030, ACS Clothing Ltd. implemented a range of systems and processes to effectively monitor and track emissions across all Scope 1, 2, and 3 categories. These systems are essential for understanding the company's carbon footprint, making data-driven decisions, and ensuring progress toward sustainability goals. Below are the key systems and processes ACS put in place: 1. Carbon Footprint Assessments • Partnership with ClimatePartner: ACS partnered with ClimatePartner to conduct regular, comprehensive carbon footprint assessments. ClimatePartner's tools allow ACS to accurately measure and monitor emissions across all scopes, including direct emissions (Scope 1) from operations, indirect energy-related emissions (Scope 2), and supply chain and value chain emissions (Scope 3). This partnership ensures that ACS has access to precise and up-to-date data. • Annual Emissions Reporting: ACS undertakes annual emissions reporting based on its carbon footprint assessments. This process helps the company identify key areas of improvement, assess progress toward reduction targets, and transparently report emissions data to stakeholders. 2. Sustainability Software Solutions • Normative and Worldfavor: ACS uses advanced sustainability management platforms such as Normative and Worldfavor to track and monitor emissions in real-time. These tools provide granular insights into emissions data across different areas of the business, enabling the company to track progress, identify inefficiencies, and make adjustments as needed. • Data Integration: These software platforms integrate data from multiple sources, including energy usage, transportation, procurement, and supplier data. This ensures that all aspects of ACS’s operations are considered, providing a holistic view of the company’s emissions footprint. 3. Scope 1 & 2 Emissions Monitoring • Energy Management Systems: ACS implemented energy management systems across its facilities to track and optimize energy consumption. These systems monitor electricity usage, heating, and cooling in real-time, providing insights into where energy efficiency improvements can be made. The data from these systems is fed into the company’s carbon footprint calculations. • Smart Metering and Automation: The company introduced smart meters and automated controls for lighting, heating, and cooling systems. These meters provide detailed reports on energy consumption and allow ACS to identify patterns, inefficiencies, and opportunities to reduce energy use. • Tracking Fleet Emissions: ACS monitored fuel consumption and emissions from its fleet of vehicles, particularly those used for logistics and transportation. This data helped ACS optimise routes, reduce fuel use, and track emissions reductions related to their green fleet transition and electric vehicle (EV) integration. 4. Scope 3 Emissions Monitoring • Supplier Emissions Reporting: ACS requires key suppliers to track and report their emissions as part of their supplier engagement strategy. Suppliers provide data on their carbon footprints, including emissions from manufacturing, transportation, and raw materials sourcing. This data is crucial for measuring Scope 3 emissions and ensuring that suppliers align with ACS’s sustainability goals. • Supply Chain Collaboration: ACS works closely with suppliers to gather emissions data, encouraging them to adopt monitoring systems that track energy usage, waste, and carbon emissions. This collaboration ensures that ACS can accurately assess Scope 3 emissions across the supply chain. • Tracking Emissions from Procurement and Packaging: The company tracks emissions related to the procurement of consumables and packaging materials, especially after transitioning to reusable packaging and biodegradable alternatives. This process ensures that ACS can monitor the carbon impact of these materials and adjust procurement strategies accordingly. 5. Real-Time Emissions Monitoring • IoT and Smart Technology: ACS has adopted Internet of Things (IoT) technologies and smart systems to monitor emissions in real-time. These technologies track resource consumption, such as water and energy use, in garment cleaning and processing, providing data that can be used to optimize operations and reduce emissions. • AI-Powered Defect Detection: ACS uses AI-powered defect detection systems to optimize garment renewal processes. By ensuring that garments are processed efficiently and with minimal waste, these systems reduce water, energy, and chemical usage, which are all tracked as part of ACS’s emissions monitoring. 6. Emissions Scorecards and Dashboards • Sustainability Scorecard: ACS uses a sustainability scorecard to monitor and track key metrics related to emissions reductions. The scorecard covers various aspects of the business, including energy efficiency, transportation emissions, supplier compliance, and circular economy initiatives. The scorecard is reviewed regularly by senior management to ensure that the company is on track to meet its sustainability goals. • Real-Time Dashboards: The company employs real-time dashboards that provide visual representations of emissions data across different departments and areas of operations. These dashboards allow for quick identification of areas with high emissions and enable swift decision-making to mitigate carbon impacts. 7. Third-Party Audits and Verification • Third-Party Verification: ACS engages third-party organisations like ClimatePartner and Normative to verify emissions data. These external audits ensure accuracy and credibility in emissions reporting, giving stakeholders confidence in ACS’s sustainability performance. • Certification Standards: ACS aligns its emissions monitoring with global certification standards, such as the Science-Based Targets initiative (SBTi) and ISO 14064 standards for greenhouse gas accounting and verification. These certifications provide a structured approach to tracking and reducing emissions. 8. Regular Review and Adjustment • Weekly Sustainability Meetings: ACS’s board of directors holds weekly meetings focused on sustainability and emissions reduction. These meetings involve reviewing data from the emissions tracking systems, discussing progress toward net-zero goals, and making adjustments to strategies where necessary. • Continuous Improvement: ACS follows a process of continuous improvement by regularly evaluating its emissions monitoring processes. By reviewing data trends, ACS can identify new opportunities for further emissions reductions and adjust policies or investments accordingly. 9. Employee Engagement in Monitoring • Training Employees in Data Collection: ACS engages its employees in the emissions monitoring process by training them to collect data related to energy use, waste reduction, and other key sustainability metrics. This ensures that data collection is accurate and that employees understand their role in contributing to the company’s carbon reduction efforts. • Sustainability Champions: ACS has established Sustainability Champions within departments who are responsible for tracking progress on emissions reductions and reporting data for their specific areas. These champions play a vital role in ensuring that emissions monitoring is an ongoing priority throughout the company. By implementing these comprehensive monitoring systems and processes, ACS ensures that it can accurately track its emissions, make informed decisions about emissions reductions, and stay on course to achieve net-zero emissions by 2025. This combination of technology, data-driven insights, and collaborative supplier engagement ensures that ACS maintains a high level of transparency and accountability throughout its sustainability journey. ACS Clothing Ltd. uses a variety of frameworks and standards to guide its sustainability reporting and ensure that its efforts toward net-zero emissions are transparent, credible, and aligned with global best practices. These frameworks help ACS structure its reporting, measure progress, and communicate its sustainability initiatives to stakeholders. The key frameworks and standards ACS uses include: 1. Science-Based Targets initiative (SBTi) - Alignment with the Paris Agreement: ACS’s sustainability goals, particularly its net-zero emissions by 2025 target, are aligned with the Science-Based Targets initiative (SBTi). SBTi provides a globally recognised framework for setting emissions reduction targets that are consistent with the Paris Agreement’s goal of limiting global warming to 1.5°C. This ensures that ACS’s emissions reduction targets are grounded in the latest climate science and contribute meaningfully to global climate action. 2. Greenhouse Gas Protocol (GHG Protocol) - Comprehensive Carbon Accounting: ACS follows the Greenhouse Gas Protocol for measuring and managing its greenhouse gas emissions across all Scope 1, 2, and 3 categories. The GHG Protocol is the most widely used international accounting tool for government and business leaders to understand, quantify, and manage greenhouse gas emissions. It provides the framework for ACS to calculate its emissions in a transparent and standardised way. 3. UN Global Compact - Ten Principles for Sustainability: As a signatory of the United Nations Global Compact, ACS aligns its sustainability reporting with the Ten Principles of the Compact, covering human rights, labour, environmental, and anti-corruption standards. By participating in this initiative, ACS commits to advancing sustainable business practices in alignment with the UN Sustainable Development Goals (SDGs), particularly SDG 13: Climate Action and SDG 12: Responsible Consumption and Production. 4. The Climate Pledge - Commitment to Early Net-Zero: ACS is a signatory of The Climate Pledge, co-founded by Amazon and Global Optimism. The Pledge calls for organisations to meet the Paris Agreement goals 10 years early, achieving net-zero carbon by 2040 or sooner. ACS reports its progress toward net-zero emissions by 2025 as part of its commitment to this global framework, ensuring that its sustainability efforts align with the ambitious timelines set out by The Climate Pledge. 5. UN Race to Zero Campaign • Net-Zero Leadership: ACS is part of the UN Race to Zero campaign, a global initiative aimed at rallying leadership and support from businesses, cities, regions, and investors for a healthy, resilient, zero-carbon recovery. By participating, ACS commits to reducing emissions in line with the 1.5°C target and reports its progress within this global campaign. 6. Task Force on Climate-Related Financial Disclosures (TCFD) • Climate Risk and Opportunities: ACS is integrating the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) into its sustainability reporting. TCFD provides a framework for reporting on climate-related risks and opportunities, ensuring that ACS communicates the financial impacts of climate change to investors and stakeholders. This standard helps ACS identify, assess, and disclose how climate risks might affect the business, as well as how it is managing those risks. 7. Global Reporting Initiative (GRI) • Sustainability Reporting Standards: ACS aligns with the Global Reporting Initiative (GRI), a widely used international standard for sustainability reporting. The GRI framework provides guidance on reporting environmental, social, and governance (ESG) performance, ensuring that ACS’s sustainability efforts are comprehensive, transparent, and comparable across industries. GRI helps ACS structure its reports to cover the full range of sustainability topics, including emissions reduction, resource management, and social impact. 8. ISO 14064: Greenhouse Gas Accounting and Verification • Emissions Verification: ACS follows the guidelines of ISO 14064, an internationally recognised standard for greenhouse gas accounting and verification. This standard ensures that ACS’s emissions reporting is accurate, consistent, and credible. ISO 14064 helps ACS track and report emissions reductions, providing third-party verification of its carbon accounting practices. 9. B Corp Certification • Comprehensive Sustainability Commitment: ACS is a certified B Corporation, meaning that it meets rigorous standards of social and environmental performance, accountability, and transparency. As part of the B Corp framework, ACS regularly reports on its sustainability performance, including its efforts to reduce emissions, promote a circular economy, and engage with disadvantaged communities. B Corp certification ensures that ACS is held accountable for creating a positive impact on society and the environment. 10. SDG Impact Standards and UN Women's Empowerment Principles • Social Sustainability and Gender Equality: ACS aligns with the Sustainable Development Goals (SDG) Impact Standards and has signed the UN Women's Empowerment Principles. These frameworks guide ACS’s broader sustainability reporting, ensuring that it addresses social and economic factors, including gender equality and diversity, alongside its environmental efforts. 2. Carbon Offsetting Standards (VCS and Gold Standard) • High-Quality Carbon Offsets: For emissions that cannot be eliminated, ACS invests in carbon offset projects that adhere to recognised standards such as the Verified Carbon Standard (VCS) and Gold Standard. These standards ensure that ACS’s offset investments contribute to credible and effective carbon reductions, such as through reforestation, renewable energy projects, and biodiversity conservation. 3. Normative & Worldfavor Platforms • Sustainability Management and Reporting Tools: ACS uses platforms such as Normative and Worldfavor for **sustainability management and reporting. These tools help track carbon emissions, resource use, and energy efficiency, allowing ACS to align its reporting with global standards and communicate its progress effectively. These platforms ensure transparency and provide detailed insights into ACS’s emissions data. By utilising a combination of globally recognised frameworks and standards such as SBTi, GHG Protocol, GRI, TCFD, and the UN Global Compact, ACS ensures that its sustainability reporting is credible, transparent, and aligned with international best practices. These frameworks provide a robust foundation for measuring progress, managing risks, and communicating the company’s commitment to net-zero emissions by 2030.

's Climate Report - 2023

Introduction *

1.1 Reporting year

*

2023

1.1.1 Reporting period

*

from 1.2023 to 12.2023

1.2 Describe your business activities

*
ACS Clothing Ltd. is Europe's largest circular fashion company, specialising in rental, reuse, and recycling solutions for garments. The company focuses on offering sustainable alternatives to the traditional linear fashion model, which relies heavily on the production, consumption, and disposal of clothing. By embracing circular economy principles, ACS extends the life cycle of garments through services such as rental, garment cleaning, repair, and refurbishment. Their core business activities include: 1. Garment Rental: ACS manages the logistics and maintenance of rental garments for fashion brands and retailers. This model allows customers to rent clothing rather than purchase it, reducing the demand for new production and encouraging more sustainable consumer behavior. 2. Take-back & Resale Programs: Through take-back schemes, ACS helps brands collect used garments, which are then cleaned, repaired, and resold. This ensures that clothing is reused multiple times, reducing waste. 3. Garment Care Services: ACS operates large-scale laundry facilities, providing cleaning, mending, and sanitization services to extend the usable life of clothing. The company has integrated water conservation and other eco-friendly practices into its operations to minimise its environmental footprint. 4. Recycling and Upcycling: ACS also engages in garment recycling and upcycling initiatives, repurposing fabrics and materials from end-of-life garments into new products or ensuring that they are recycled responsibly. They work with various industries, including handling specialised projects like the recycling of PPE. 5. Sustainability Consulting: ACS offers expertise and support for brands and retailers looking to adopt circular economy models. This includes consulting on best practices for sustainability, product lifecycle management, and compliance with emerging regulations like Extended Producer Responsibility (EPR). Through these activities, ACS helps its clients reduce their environmental impact while promoting more sustainable fashion practices, aligning with global sustainability goals.

1.3 Annual revenue in the reporting year

*
10101472
USD

1.4 Number of employees in the reporting year

*
164

1.4.1 Full-time equivalent (FTE) or headcounts

*
Headcounts

1.5 Let us know if your company is a parent company or subsidiary

*
Parent company

Commitment and Targets *

2.1 Net zero target year

*
2030

2.1.1 Base year

*
2019

2.2 Near-term target

*

50% of absolute total emission reduction from my base year by 2025

75 of absolute total emission reduction from my base year by 2027

90 of absolute total emission reduction from my base year by 2028

2.3 Provide any additional comments or context on your net zero and near term targets.

*
To achieve net-zero emissions by 2030, ACS set several specific targets focused on reducing emissions across all Scope 1, 2, and 3 categories. These targets are aimed at minimising environmental impact and promoting sustainable practices across the business: 1. Reducing Scope 1 Emissions (Direct Emissions) - Energy Efficiency in Operations: Implement energy-efficient technologies to reduce fuel consumption in heating and other direct operational activities. - Alternative Energy Sources: Transition away from fossil fuel-based energy to renewable energy sources for heating and other direct energy uses within ACS facilities. - Green Fleet Transition: Minimise emissions from transportation and logistics by transitioning to a green shipping fleet, utilising electric or low-emission vehicles, optimising delivery routes, and adopting sustainable fuel alternatives to reduce overall fuel consumption and carbon footprint. 2. Reducing Scope 2 Emissions (Indirect Energy Consumption) - 100% Renewable Electricity: Switch to 100% renewable electricity for all ACS operations, ensuring that all energy used within facilities is sourced from renewable options like wind, solar, or hydroelectric power. - Energy Efficiency Initiatives: Upgrade lighting and equipment to energy-efficient alternatives, such as smart LED lighting, voltage optimisation and energy-efficient machinery, to reduce electricity consumption across the business. - Install Solar Roof: Install solar panels on facility rooftops to generate on-site renewable energy, reducing reliance on external power sources and further minimizing emissions. - Install Heat Pumps: Transition from traditional heating systems to energy-efficient heat pumps, utilising renewable energy to heat and cool facilities while reducing overall energy consumption. - Install Wind Turbines: Explore the installation of small-scale wind turbines to generate additional renewable energy on-site, further contributing to ACS's goal of using 100% renewable electricity across all operations. - These initiatives will help ACS significantly reduce Scope 2 emissions and move closer to its net-zero target. 3. Reducing Scope 3 Emissions (Indirect Emissions from Supply Chain and Other Activities) - Sustainable Procurement Practices: Work with suppliers to source sustainable materials and reduce emissions across the supply chain. Prioritise procurement from suppliers who follow sustainable and low-carbon practices. - Circular Economy Initiatives: Scale up ACS’s rental, resale, and renewal services to extend the lifecycle of garments, reducing the need for new production and thereby minimizing emissions from the entire value chain. - Employee Commuting and Travel: Encourage sustainable commuting options for employees, such as public transportation, carpooling, and remote work, to reduce travel-related emissions. - Waste Reduction and Recycling: Implement zero-waste practices and maximise recycling efforts to reduce emissions from waste generation and disposal. 4. Technological Innovations for Carbon Reduction - AI-Powered Defect Detection: Utilise advanced technologies like AI defect detection to reduce waste in the clothing renewal process, lowering resource usage (water, energy) and minimising emissions. - Ozone Sanitisation Chamber: Continue using the ozone sanitisation process to reduce water, chemical, and energy consumption, further cutting emissions linked to garment renewal. 5. Offsetting Residual Emissions - For any remaining emissions that cannot be eliminated by 2030, ACS plans to invest in high-quality carbon offset projects, ensuring that the business achieves net zero by balancing unavoidable emissions with verified offsets such as reforestation, sea grass plantations, peatland restoration, renewable energy projects, or carbon capture initiatives. 6. Monitoring & Reporting Progress - Regular Carbon Footprint Assessments: Continue working with third-party organisations like ClimatePartner, Normative and Worldfavor to monitor, report, and verify carbon footprint progress, ensuring alignment with the net-zero goals. - Sustainability Scorecard: ACS uses a sustainability scorecard to track progress on these targets and adjust strategies as necessary to ensure all goals are met by 2025. By focusing on energy efficiency, renewable energy adoption, circular economy principles, and reducing supply chain emissions, ACS is on track to meet its ambitious net-zero target by 2025.

Own Emissions *

3.1 To reduce emissions in line with my commitment, my company has a plan and is taking action

*
Yes

Energy consumption

3.2 Total energy consumption

*
2313884 kwh

3.3 Renewable energy

*
2301221 kwh

Scope 1 emissions

3.4 Scope 1 emissions

*
0.557 metric tons CO2e

Scope 2 emissions

3.5 Location based scope 2 emissions

*
144.3 metric tons CO2e

3.6 Market based scope 2 emissions

*
0 metric tons CO2e

3.7 Describe your plans and actions taken to reduce scope 1 & 2 emissions.

*
To reduce Scope 1 emissions (direct emissions from operations, such as fuel consumption for heating and company-owned vehicles), ACS Clothing Ltd. implemented several key initiatives focused on energy efficiency and transitioning to renewable energy sources. Below are the primary initiatives: 1. Energy Efficiency in Operation • Upgrading Heating Systems: ACS implemented energy-efficient technologies to reduce fuel consumption for heating. This included optimizing heating systems across their facilities, ensuring better temperature control and reducing energy waste. • Heat Pumps Installation: ACS began the transition from traditional fossil-fuel-based heating systems to energy-efficient heat pumps. These pumps use renewable energy sources to heat and cool the facilities, drastically reducing direct emissions from heating. 2. Transition to Alternative Energy Sources • Use of Renewable Energy for Heating: ACS transitioned from using fossil fuels for heating to utilizing renewable energy wherever possible, such as solar-powered heating systems or integrating heat pumps. • Solar Panels: The installation of solar panels on facility rooftops allowed ACS to generate clean, renewable energy on-site, reducing reliance on external energy sources and minimizing fuel consumption used for heating and other operations. 3. Green Fleet Transition • Transition to Low-Emission Vehicles: ACS focused on reducing emissions from its transportation and logistics activities by transitioning to a green shipping fleet. This included replacing traditional vehicles with electric or hybrid vehicles to reduce fuel consumption and emissions. • Optimising Delivery Routes: ACS implemented route optimisation technologies to minimise fuel usage for logistics, ensuring vehicles take the most efficient routes to reduce overall mileage and emissions. 4. Reducing On-Site Energy Consumption • Energy-Efficient Equipment: ACS upgraded its on-site equipment and machinery to more energy-efficient models, reducing the direct fuel or energy consumption required for daily operations. This included upgrading machinery used in garment processing to more energy-efficient alternatives. 5. Sustainable Infrastructure • Green Building Practices: ACS invested in sustainable infrastructure across its facilities, including enhanced insulation and energy management systems. These improvements minimised the need for heating and cooling, directly reducing Scope 1 emissions from energy use. 6. Behavioural & Operational Changes • Employee Training: ACS engaged employees in energy-saving practices, such as turning off heating and equipment when not in use, optimizing thermostat settings, and regular maintenance of heating systems to prevent energy wastage. 7. Monitoring & Optimising Fuel Use • Fuel Monitoring Systems: ACS introduced monitoring systems to track fuel use across their operations, particularly in transportation. These systems helped identify areas of high fuel consumption and enabled the company to adjust and reduce unnecessary fuel usage. By implementing these initiatives, ACS successfully reduced their Scope 1 emissions by focusing on energy efficiency, transitioning to renewable energy sources, and optimizing operational practices. These actions not only minimised their carbon footprint but also aligned with the company’s broader goal of achieving net-zero emissions by 2025. ACS Clothing Ltd. addressed Scope 2 emissions - which are indirect emissions from purchased energy, primarily electricity - by implementing a series of key initiatives aimed at reducing energy consumption and transitioning to renewable energy sources. These initiatives were designed to significantly cut the company’s reliance on fossil fuels for electricity and improve energy efficiency across their operations. 1. Switch to 100% Renewable Electricity • Transition to Renewable Energy Sources: ACS committed to powering all their facilities with 100% renewable electricity, sourced from wind, solar, and hydroelectric power. By switching to renewable energy providers, ACS significantly reduced the carbon emissions associated with electricity consumption. • Green Energy Contracts: ACS entered into long-term contracts with green energy providers, ensuring a stable and reliable supply of renewable electricity for their operations. 2. On-Site Renewable Energy Generation • Solar Panel Installation: ACS installed solar panels on the rooftops of their facilities to generate clean, renewable energy on-site. This allowed the company to reduce its reliance on grid-supplied electricity and minimise Scope 2 emissions from electricity consumption. • Heat Pumps: To further reduce reliance on fossil-fuel-based heating, ACS installed heat pumps that utilise renewable energy for heating and cooling their facilities. Heat pumps are far more energy-efficient than traditional systems and significantly reduced electricity usage. • Wind Turbines: ACS explored the installation of small-scale wind turbines at some of their facilities to generate additional renewable energy, further reducing the company’s dependence on grid electricity and contributing to emissions reductions. 3. Energy Efficiency Initiatives • Smart LED Lighting: ACS upgraded all lighting across their facilities to smart LED lighting systems, which are highly energy-efficient compared to traditional lighting. This not only reduced electricity consumption but also lowered emissions associated with lighting their operations. • Voltage Optimisation: To further improve energy efficiency, ACS installed voltage optimisation technology across their sites. This technology helps ensure that equipment and machinery only use the electricity they need, reducing waste and improving overall energy efficiency. • Energy-Efficient Machinery: ACS replaced older, less efficient machinery with modern, energy-efficient equipment that consumes less electricity during garment processing, further cutting Scope 2 emissions. 4. Smart Energy Management Systems • Energy Monitoring: ACS implemented energy management systems to track and monitor electricity consumption across all their facilities. These systems provided real-time data on energy use, allowing the company to identify areas of inefficiency and adjust operations to reduce electricity consumption. • Automation & Controls: ACS introduced automated controls for lighting, heating, and cooling systems, ensuring that energy was only used when needed. Automated systems were set to optimise energy usage, particularly during off-peak hours, minimizing unnecessary consumption. 5. Sustainable Building Upgrades • Green Building Practices: ACS invested in sustainable infrastructure improvements across their facilities, such as better insulation and energy-efficient windows, to reduce the need for heating and cooling. These upgrades helped minimise electricity demand and reduced Scope 2 emissions. • Smart Thermostats and HVAC Systems: By installing smart thermostats and upgrading their HVAC systems, ACS was able to optimise the heating and cooling of their facilities, reducing electricity consumption and improving overall energy efficiency. 6. Employee Engagement in Energy Efficiency • Sustainability Training: ACS engaged employees in energy-saving initiatives, educating them on the importance of reducing electricity usage and how they could contribute to minimising energy waste in their daily operations. This helped foster a culture of sustainability across the company. • Behavioural Changes: Employees were encouraged to turn off lights, equipment, and heating systems when not in use, helping to further reduce unnecessary electricity consumption. 7. Partnership with External Stakeholders • Scottish Enterprise Support: ACS received support from Scottish Enterprise to fund and implement energy efficiency projects, including the installation of renewable energy systems and energy-efficient equipment. • Zero Waste Scotland Collaboration: ACS worked with Zero Waste Scotland to explore opportunities for further reducing their Scope 2 emissions through innovative technologies and energy management strategies. 8. Continuous Monitoring and Reporting • Regular Energy Audits: ACS conducted regular energy audits to assess the effectiveness of their energy efficiency measures and identify areas for further improvement. This continuous monitoring allowed ACS to stay on track with their emissions reduction goals. • Sustainability Scorecard: ACS used a sustainability scorecard to track progress in reducing electricity consumption and Scope 2 emissions. This scorecard was reviewed regularly by the Board to ensure targets were being met and adjustments were made where necessary. By focusing on the transition to 100% renewable electricity, implementing energy-efficient technologies, and generating on-site renewable energy, ACS successfully reduced their Scope 2 emissions. These efforts contributed significantly to the company's overall goal of achieving net-zero emissions by 2025, while also aligning with their broader commitment to sustainability and circular business practices.

3.8 Describe the calculation methodology and comment on the data accuracy, including any tools/methods used to calculate.

*
ACS Clothing Ltd. has established a robust system for regularly measuring and reporting on its emissions to ensure they remain on track toward achieving their net-zero emissions goal by 2030. Below is an overview of the frequency with which ACS measures and reports its emissions: 1. Annual Emissions Reporting • Comprehensive Carbon Footprint Assessment: ACS conducts a full carbon footprint assessment on an annual basis in collaboration with ClimatePartner and other sustainability partners such as Normative and Worldfavor. This assessment includes detailed data on Scope 1, 2, and 3 emissions across all operations, including direct emissions, energy consumption, and supply chain emissions. The results are used to create an annual emissions report, which tracks overall progress toward the company’s net-zero goals. 2. Monthly Monitoring & Internal Reporting • Monthly Emissions Monitoring: ACS uses real-time emissions monitoring systems and software solutions to track emissions on a monthly basis. This includes data from energy management systems, smart meters, and IoT devices that provide insights into electricity and fuel consumption, as well as waste and water usage. These monthly reports help identify trends and enable the company to make timely adjustments to operational practices. • Internal Reporting to Management: Emissions data is reviewed internally each month and presented to the senior management team. This monthly review includes updates on energy usage, transportation emissions, and supplier compliance with carbon reduction targets. It ensures that the company can swiftly address any areas that are not progressing as expected. 3. Quarterly All-Hands Updates • Quarterly Emissions Updates: ACS provides quarterly updates on emissions performance during all-hands meetings. These updates share key progress with all employees, ensuring transparency and engagement across the company. Employees are informed about how their work contributes to the reduction of emissions and the overall progress toward net-zero goals. • Sustainability Scorecard Review: The sustainability scorecard, which tracks emissions and other sustainability metrics, is reviewed on a quarterly basis by leadership and shared with staff to promote accountability and progress visibility across the organisation. 4. Weekly Sustainability Strategy Meetings • Board-Level Review: ACS conducts weekly sustainability strategy meetings with the board of directors, during which emissions data is discussed. This frequent review ensures that emissions reduction strategies are consistently evaluated and adjusted as needed. By reviewing real-time emissions data from the monitoring systems, the board ensures that ACS remains proactive in managing its carbon footprint. 5. Real-Time Emissions Tracking • Continuous Monitoring: ACS has invested in technologies such as IoT sensors and smart metering systems that provide real-time tracking of energy use and emissions across its facilities. This allows ACS to continuously monitor electricity, heating, cooling, and logistics emissions, ensuring quick identification of inefficiencies and enabling immediate corrective actions when necessary. 6. Supplier Emissions Reporting • Regular Supplier Reporting: Key suppliers are required to report emissions data regularly, typically on a quarterly or biannual basis, depending on their role in the supply chain. This ensures that ACS can closely track Scope 3 emissions and hold suppliers accountable for meeting the company’s sustainability standards. 7. External Audits & Verification • Annual Third-Party Audits: To ensure the accuracy and transparency of its emissions data, ACS undergoes an annual third-party audit conducted by ClimatePartner and other sustainability partners. These audits verify the emissions data and confirm that ACS is making measurable progress toward its targets. The audit results are included in the company’s annual sustainability report, which is shared with external stakeholders. 8. Public Reporting • Annual Sustainability Report: ACS publishes an annual sustainability report, which includes detailed emissions data and progress updates on its net-zero journey. This report is shared with stakeholders, including customers, partners, and regulators, providing transparency on how ACS is managing its carbon footprint. • Commitment to Global Initiatives: As a signatory of The Climate Pledge, UN Global Compact, and UN’s Race to Zero, ACS regularly reports its emissions data and reduction progress in alignment with these global initiatives. This reporting ensures that ACS is adhering to international sustainability standards. By measuring emissions continuously, monthly, quarterly, and annually, ACS ensures that it can track its carbon footprint in real-time while making data-driven decisions throughout the year. This frequent reporting and review process allows ACS to maintain transparency and accountability as it works toward its net-zero target by 2030. ACS Clothing Ltd. has further aligned its net-zero targets with global standards by committing to several key international sustainability initiatives: 1. Science-Based Targets Initiative (SBTi) ACS’s emissions reduction goals are aligned with the Science-Based Targets initiative (SBTi), which ensures that their targets are in line with the Paris Agreement to limit global warming to well below 2°C, with efforts to limit it to 1.5°C. By adhering to the SBTi framework, ACS demonstrates that their emissions reductions are based on the latest climate science, ensuring their path toward net zero is credible and effective. 2. Commitment to the UN's Race to Zero Campaign ACS has committed to the UN's Race to Zero, a global campaign aimed at rallying businesses, cities, and investors to achieve net-zero emissions by 2050. By joining this initiative, ACS pledges to take immediate action to halve emissions by 2025 and reach net-zero carbon emissions by 2030, far ahead of the 2050 target set by the Race to Zero. 3. Global Compact Signatory As a signatory of the United Nations Global Compact, ACS has committed to integrating the Ten Principles of the Compact into its strategies and operations, particularly those related to environmental sustainability. This includes taking decisive climate action in alignment with the UN Sustainable Development Goals (SDGs), particularly SDG 13: Climate Action and DG 12: Responsible Consumption and Production. 4. Climate Pledge Signatory ACS has also signed The Climate Pledge, a global commitment co-founded by Amazon and Global Optimism. This pledge aims to meet the goals of the Paris Agreement 10 years early by achieving net-zero carbon emissions by 2040. ACS’s commitment to reaching net-zero by 2030 exceeds the requirements of this pledge, further demonstrating their leadership in sustainability. 5. Alignment with Scope 1, 2, and 3 Emissions ACS’s targets comprehensively address Scope 1 (direct), Scope 2 (indirect), and Scope 3 (value chain) emissions. By focusing on these scopes, ACS aligns with the Greenhouse Gas Protocol and SBTi’s requirements for comprehensive emissions accounting and reduction. Specific measures include transitioning to 100% renewable electricity, implementing green logistics, and focusing on sustainable procurement practices throughout the supply chain. 6. Sustainability Reporting & Accountability Through partnerships with third-party organizations such as ClimatePartner, Normative, and Worldfavor, ACS ensures their emissions reduction efforts are monitored, reported, and verified in line with global standards such as the Task Force on Climate-Related Financial Disclosures (TCFD) and the Global Reporting Initiative (GRI). 7. Carbon Offsetting & High-Quality Standards For residual emissions, ACS is committed to investing in high-quality carbon offset projects aligned with international standards such as the Verified Carbon Standard (VCS) and Gold Standard. These offsets contribute to global carbon reduction efforts, including reforestation, seagrass plantations, peatland restoration, and renewable energy projects. By aligning with the UN’s Race to Zero, becoming a Global Compact signatory, and joining The Climate Pledge, ACS is reinforcing its leadership in sustainability. Their commitment to Science-Based Targets and comprehensive emissions reductions across Scope 1, 2, and 3, along with transparent reporting and high-quality offsetting, ensures that ACS is on track to meet its ambitious net-zero target by 2030 while contributing to the global effort to mitigate climate change.

Value Chain Emissions (optional) *

Scope 3 emissions

4.1 Have you measured any of your scope 3 emissions?

*
Yes

4.1.1 Total scope 3 emissions

*
1227 metric tons CO2e

Supply chain related - upstream emissions

Customer related - downstream emissions

4.1.17 Do you have a plan and are taking action to reduce emissions from your value chain?

*

Yes

To address Scope 3 emissions, which constitute the largest portion of ACS Clothing Ltd.’s carbon footprint, encompassing indirect emissions from the supply chain, employee commuting, and other activities, ACS have been implementing a range of strategies. These focus on supplier collaboration, circular economy practices and operational improvements to minimise emissions throughout the value chain. Below is a consolidated overview of the key strategies employed: 1. Sustainable Procurement Practices • Engaging Suppliers: ACS collaborate closely with suppliers to encourage sustainable practices across the supply chain, focusing on reducing their carbon footprints, adopting energy-efficient technologies, and sourcing materials with a lower environmental impact. • Supplier Code of Conduct: ACS have established a Supplier Code of Conduct that required suppliers to meet specific environmental standards, including reducing energy consumption, cutting waste, and lowering emissions. • Prioritising Low-Carbon Materials: ACS has shifted procurement strategies to prioritise the use of sustainable, low-carbon materials, ensuring that textiles and other consumables were environmentally friendly. 2. Expanding Circular Economy Initiatives • Rental and Resale Models: ACS has scaled up its rental and resale services to extend the lifespan of garments, reducing the need for new production and minimising emissions from manufacturing, transportation, and disposal. • Garment Renewal: The company invested in AI-powered defect detection and ozone sanitisation technologies to renew and refurbish garments, extending their lifecycle and further reducing supply chain emissions. • Product Take-Back Programmes: ACS launched take-back schemes that allowed customers to return garments for renewal and resale, diverting clothing from landfills and lowering emissions associated with waste and new manufacturing. 3. Optimising Logistics & Transportation • Green Fleet Transition: ACS introduced low-emission vehicles and electric/hybrid options for transportation and reverse logistics, reducing emissions from vehicle use. • Route Optimisation: ACS optimised delivery routes using advanced logistics management software to reduce fuel consumption, travel distances, and transportation-related emissions. • Third-Party Logistics Collaboration: ACS collaborated with third-party logistics providers that adhered to carbon reduction strategies, including using fuel-efficient vehicles and optimising load capacity. 4. Employee Commuting & Travel • Encouraging Sustainable Commuting: ACS promoted sustainable commuting options such as public transportation, carpooling, and cycling to lower emissions from employee travel. • Remote Work Policies: Flexible remote work policies were introduced to reduce commuting-related emissions, especially for employees living farther from the office. • Electric Vehicle Incentives: ACS incentivised electric vehicle (EV) use by installing charging stations and offering salary sacrifice schemes to encourage employees to switch to EVs. 5. Reducing Waste & Enhancing Recycling • Zero-Waste Initiatives: ACS implemented zero-waste practices by increasing recycling and minimising waste sent to landfills. This included recycling textiles, packaging, and other materials. • Textile Recycling & Upcycling: ACS developed solutions to recycle and upcycle garments that were no longer fit for resale, reducing waste and emissions. • Packaging Innovations: ACS introduced recyclable and compostable packaging, minimising the environmental impact associated with packaging production, transportation, and disposal. 6. Supplier Collaboration & Training • Capacity Building: ACS worked with suppliers to build their capacity for sustainable practices by offering training and resources. This helped reduce emissions throughout the supply chain. • Supplier Emissions Tracking: ACS required key suppliers to measure and report their emissions, ensuring alignment with ACS's sustainability goals. 7. Product Innovation & Design for Sustainability • Designing for Longevity: ACS collaborated with fashion brands to design durable garments that are easier to renew and recycle, thereby reducing emissions from frequent replacements. • Sustainable Product Development: ACS and its brand partners developed product lines using eco-friendly materials and low-impact production processes to minimise emissions. 8. Offsetting Residual Scope 3 Emissions • For any remaining Scope 3 emissions that cannot be eliminated, ACS will invest in high-quality carbon offset projects such as reforestation, seagrass plantations, and peatland restoration to ensure they reached their net-zero goals. 9. Continuous Monitoring & Reporting • Emissions Tracking Tools: ACS partnered with organisations like ClimatePartner, Normative, and Worldfavor to track and report on Scope 3 emissions reductions. Regular monitoring ensured strategies were adjusted for maximum effectiveness. • Sustainability Scorecard: ACS use a sustainability scorecard to monitor key metrics related to Scope 3 emissions, including supplier engagement, logistics, and employee commuting. Regular reviews helped ensure progress toward net-zero goals. 10. Transition from Single-Use Consumables to Reusable Packaging • Elimination of Single-Use Cardboard: ACS moved from using single-use cardboard to reusable packaging, which significantly reduced waste and associated carbon emissions. • Reusable Packaging Systems: These packaging systems were designed to be durable and eco-friendly, contributing to lower environmental impacts across the supply chain. 11. Replacement of Hydrocarbon-Based Polyethylene with Sustainable Alternatives • Tree-Sap-Based Garment Shrouds: ACS replaced hydrocarbon-based polyethylene garment covers with a tree-sap-based biodegradable alternative, reducing reliance on fossil fuels and lowering emissions tied to traditional garment covers. • Biodegradable and Compostable Packaging: The company also introduced biodegradable garment covers and compostable packaging materials, further minimising environmental impact and waste sent to landfills. By focusing on supply chain collaboration, expanding circular economy models, optimising logistics, transitioning to reusable packaging, and replacing hydrocarbon-based materials with sustainable alternatives, ACS effectively tackled Scope 3 emissions. These efforts significantly contributed to their progress toward achieving net-zero emissions by 2030 while promoting sustainability across the fashion industry.

4.2 Have you asked any of your suppliers to set a net zero target (either voluntarily or as a requirement)?

*
Yes

4.2.1 What percentage of your suppliers have you asked?

*
100 of emissions covered

4.3 Have you communicated your commitment and actions to any of your customers?

*
Yes

4.4 Describe the calculation methodology and comment on the data accuracy and any tools used to calculate your scope 3 emissions.

*
ACS Clothing Ltd. has established a robust system for regularly measuring and reporting on its emissions to ensure they remain on track toward achieving their net-zero emissions goal by 2030. Below is an overview of the frequency with which ACS measures and reports its emissions: 1. Annual Emissions Reporting • Comprehensive Carbon Footprint Assessment: ACS conducts a full carbon footprint assessment on an annual basis in collaboration with ClimatePartner and other sustainability partners such as Normative and Worldfavor. This assessment includes detailed data on Scope 1, 2, and 3 emissions across all operations, including direct emissions, energy consumption, and supply chain emissions. The results are used to create an annual emissions report, which tracks overall progress toward the company’s net-zero goals. 2. Monthly Monitoring & Internal Reporting • Monthly Emissions Monitoring: ACS uses real-time emissions monitoring systems and software solutions to track emissions on a monthly basis. This includes data from energy management systems, smart meters, and IoT devices that provide insights into electricity and fuel consumption, as well as waste and water usage. These monthly reports help identify trends and enable the company to make timely adjustments to operational practices. • Internal Reporting to Management: Emissions data is reviewed internally each month and presented to the senior management team. This monthly review includes updates on energy usage, transportation emissions, and supplier compliance with carbon reduction targets. It ensures that the company can swiftly address any areas that are not progressing as expected. 3. Quarterly All-Hands Updates • Quarterly Emissions Updates: ACS provides quarterly updates on emissions performance during all-hands meetings. These updates share key progress with all employees, ensuring transparency and engagement across the company. Employees are informed about how their work contributes to the reduction of emissions and the overall progress toward net-zero goals. • Sustainability Scorecard Review: The sustainability scorecard, which tracks emissions and other sustainability metrics, is reviewed on a quarterly basis by leadership and shared with staff to promote accountability and progress visibility across the organisation. 4. Weekly Sustainability Strategy Meetings • Board-Level Review: ACS conducts weekly sustainability strategy meetings with the board of directors, during which emissions data is discussed. This frequent review ensures that emissions reduction strategies are consistently evaluated and adjusted as needed. By reviewing real-time emissions data from the monitoring systems, the board ensures that ACS remains proactive in managing its carbon footprint. 5. Real-Time Emissions Tracking • Continuous Monitoring: ACS has invested in technologies such as IoT sensors and smart metering systems that provide real-time tracking of energy use and emissions across its facilities. This allows ACS to continuously monitor electricity, heating, cooling, and logistics emissions, ensuring quick identification of inefficiencies and enabling immediate corrective actions when necessary. 6. Supplier Emissions Reporting • Regular Supplier Reporting: Key suppliers are required to report emissions data regularly, typically on a quarterly or biannual basis, depending on their role in the supply chain. This ensures that ACS can closely track Scope 3 emissions and hold suppliers accountable for meeting the company’s sustainability standards. 7. External Audits & Verification • Annual Third-Party Audits: To ensure the accuracy and transparency of its emissions data, ACS undergoes an annual third-party audit conducted by ClimatePartner and other sustainability partners. These audits verify the emissions data and confirm that ACS is making measurable progress toward its targets. The audit results are included in the company’s annual sustainability report, which is shared with external stakeholders. 8. Public Reporting • Annual Sustainability Report: ACS publishes an annual sustainability report, which includes detailed emissions data and progress updates on its net-zero journey. This report is shared with stakeholders, including customers, partners, and regulators, providing transparency on how ACS is managing its carbon footprint. • Commitment to Global Initiatives: As a signatory of The Climate Pledge, UN Global Compact, and UN’s Race to Zero, ACS regularly reports its emissions data and reduction progress in alignment with these global initiatives. This reporting ensures that ACS is adhering to international sustainability standards. By measuring emissions continuously, monthly, quarterly, and annually, ACS ensures that it can track its carbon footprint in real-time while making data-driven decisions throughout the year. This frequent reporting and review process allows ACS to maintain transparency and accountability as it works toward its net-zero target by 2030. ACS Clothing Ltd. has further aligned its net-zero targets with global standards by committing to several key international sustainability initiatives: 1. Science-Based Targets Initiative (SBTi) ACS’s emissions reduction goals are aligned with the Science-Based Targets initiative (SBTi), which ensures that their targets are in line with the Paris Agreement to limit global warming to well below 2°C, with efforts to limit it to 1.5°C. By adhering to the SBTi framework, ACS demonstrates that their emissions reductions are based on the latest climate science, ensuring their path toward net zero is credible and effective. 2. Commitment to the UN's Race to Zero Campaign ACS has committed to the UN's Race to Zero, a global campaign aimed at rallying businesses, cities, and investors to achieve net-zero emissions by 2050. By joining this initiative, ACS pledges to take immediate action to halve emissions by 2025 and reach net-zero carbon emissions by 2030, far ahead of the 2050 target set by the Race to Zero. 3. Global Compact Signatory As a signatory of the United Nations Global Compact, ACS has committed to integrating the Ten Principles of the Compact into its strategies and operations, particularly those related to environmental sustainability. This includes taking decisive climate action in alignment with the UN Sustainable Development Goals (SDGs), particularly SDG 13: Climate Action and DG 12: Responsible Consumption and Production. 4. Climate Pledge Signatory ACS has also signed The Climate Pledge, a global commitment co-founded by Amazon and Global Optimism. This pledge aims to meet the goals of the Paris Agreement 10 years early by achieving net-zero carbon emissions by 2040. ACS’s commitment to reaching net-zero by 2030 exceeds the requirements of this pledge, further demonstrating their leadership in sustainability. 5. Alignment with Scope 1, 2, and 3 Emissions ACS’s targets comprehensively address Scope 1 (direct), Scope 2 (indirect), and Scope 3 (value chain) emissions. By focusing on these scopes, ACS aligns with the Greenhouse Gas Protocol and SBTi’s requirements for comprehensive emissions accounting and reduction. Specific measures include transitioning to 100% renewable electricity, implementing green logistics, and focusing on sustainable procurement practices throughout the supply chain. 6. Sustainability Reporting & Accountability Through partnerships with third-party organizations such as ClimatePartner, Normative, and Worldfavor, ACS ensures their emissions reduction efforts are monitored, reported, and verified in line with global standards such as the Task Force on Climate-Related Financial Disclosures (TCFD) and the Global Reporting Initiative (GRI). 7. Carbon Offsetting & High-Quality Standards For residual emissions, ACS is committed to investing in high-quality carbon offset projects aligned with international standards such as the Verified Carbon Standard (VCS) and Gold Standard. These offsets contribute to global carbon reduction efforts, including reforestation, seagrass plantations, peatland restoration, and renewable energy projects. By aligning with the UN’s Race to Zero, becoming a Global Compact signatory, and joining The Climate Pledge, ACS is reinforcing its leadership in sustainability. Their commitment to Science-Based Targets and comprehensive emissions reductions across Scope 1, 2, and 3, along with transparent reporting and high-quality offsetting, ensures that ACS is on track to meet its ambitious net-zero target by 2030 while contributing to the global effort to mitigate climate change.

Climate Solutions (optional) *

5.1 Do you classify any of your existing goods and/or services as a climate solution?

*
Yes

5.2 What percentage of your total revenue comes from sales of climate solutions?

*
100 %

5.3 Provide descriptions/names of your climate solutions:

*
1. Circular Fashion Services: ACS Clothing Ltd. offers comprehensive circular fashion services that include garment rental, repair, refurbishment, and resale, significantly reducing the need for new garment production. This directly lowers carbon emissions by extending the lifecycle of fashion products, helping to reduce textile waste and the associated environmental impact. 2. Take-Back Scheme: ACS operates a take-back scheme that encourages consumers to return unwanted clothing, which is then refurbished, upcycled, or recycled. This service prevents garments from ending up in landfills, reducing greenhouse gas emissions linked to the fashion industry's waste problem. 3. Sustainable Laundry Operations: ACS has developed an eco-friendly laundry system that reduces water and energy consumption compared to traditional laundry services. Their advanced technology ensures garments are cleaned using fewer resources and less pollution, contributing to reduced emissions in garment care. 4. Sanitisation Chamber for PPE: ACS introduced a sanitisation chamber for Personal Protective Equipment (PPE), extending the usable life of items like masks and gowns. This reduces waste and avoids the emissions from producing and disposing of single-use PPE. 5. Upcycling and Repurposing of PPE for SPL Powerlines: Through partnerships like the one with SPL Powerlines UK Limited, ACS provides recycling, upcycling, and repurposing solutions for PPE, ensuring that these materials are kept in circulation and out of landfills, which significantly cuts down on associated emissions. All these solutions are designed to reduce greenhouse gas emissions by promoting circularity and resource efficiency, helping society transition towards a net zero carbon economy.

5.4 Methodology used to assess these as climate solutions, and third party which has validated the assessment, if any:

*
ACS is in Discussion with ClimatePoint to assess our Climate Solutions: ACS Clothing Ltd. will utilise the ClimatePoint methodology to rigorously assess the environmental impact of its products and services, ensuring alignment with global 1.5°C targets and supporting the transition to a net zero carbon economy. The methodology includes several key steps: 1. Assessment of Carbon Footprint per Functional Unit: ClimatePoint evaluates the carbon footprint of ACS's products and services by comparing emissions per functional unit to conventional alternatives (business-as-usual scenarios). This includes assessing the full lifecycle of the product or service—from raw material sourcing, production, and use, to end-of-life processes such as recycling or disposal. Products and services must demonstrate at least a 50% reduction in emissions compared to the conventional option to qualify as a climate solution. 2. Primary Purpose of Emission Reduction: The methodology ensures that the core purpose of ACS’s solutions is to enable emission reductions for clients and stakeholders. This is critical for circular fashion models like garment rentals, refurbishments, and take-back schemes, where the reuse and prolonged lifespan of products directly result in fewer new garments being produced, minimising associated emissions. 3. Net Zero Compatibility: ClimatePoint assesses whether ACS’s services are fit for a net zero future by comparing their emissions per functional unit to established thresholds aligned with global climate targets. This analysis ensures that ACS’s operations—such as sustainable laundry systems and upcycling initiatives—meet or exceed credible emissions thresholds that are compatible with the 1.5°C ambition. 4. Quantification of Emission Reductions: The methodology involves a detailed quantification process where ACS’s climate solutions are measured for their effectiveness in reducing emissions. This includes calculating emissions avoided through service offerings like garment reuse, refurbishment, and sustainable laundering, compared to the environmental impact of producing new items or using conventional laundry methods. 5. Verification & Continuous Improvement: ClimatePoint encourages ACS to continuously improve its operations and climate solutions by periodically reviewing and updating its methodology to capture advancements in low-carbon technologies and best practices. This dynamic approach ensures that ACS’s services remain relevant and contribute to accelerating the transition towards a net zero economy. Through ClimatePoint’s methodology, ACS will be able to demonstrate that its circular fashion services, take-back schemes, and innovative laundry solutions are making measurable contributions to reducing greenhouse gas emissions, positioning the company as a leader in sustainable fashion and climate action.

Management, Strategy and Climate Risk (optional) *

6.1 What governance processes do you have in place for your climate strategy? Choose as many as are applicable.

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Governance process in place,Person is responsible for climate strategy at board level

6.1.1 Please describe their position and responsibility.

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Michael Cusack, Chief Sustainability Officer at ACS Clothing Ltd. As Chief Sustainability Officer (CSO), Michael Cusack plays a pivotal role in shaping and driving the company's climate strategy and broader sustainability initiatives at the board level. His responsibilities encompass a wide range of activities that align ACS's operations with global sustainability goals, particularly in the areas of reducing greenhouse gas emissions, fostering circular fashion, and advancing social and environmental sustainability. Key Responsibilities 1. Climate Strategy Leadership: Michael is responsible for the development, implementation, and oversight of ACS’s climate strategy. He ensures that all business activities align with the company's long-term goal of achieving net zero carbon emissions. This involves setting targets, managing key performance indicators (KPIs), and leading projects that reduce the company’s carbon footprint, particularly through circular economy practices. 2. Board-Level Climate Advocacy As the board-level advocate for sustainability, Michael drives climate discussions at the highest level, ensuring that sustainability is embedded into ACS’s core business strategy. He regularly presents the company's progress on emissions reductions, innovations in sustainable fashion, and overall environmental impact to the board and external stakeholders. 3. Developing Climate Solutions: Michael plays a critical role in shaping ACS's product and service offerings to meet the company's climate goals. He oversees the development of climate solutions, such as garment rental, refurbishing services, and sustainable laundry operations, ensuring that these services meet rigorous environmental standards and contribute to the reduction of greenhouse gas emissions. 4. Stakeholder Engagement: Michael liaises with a broad spectrum of stakeholders, including clients, government bodies, and industry partners, to advance ACS's climate agenda. He collaborates with organizations such as the United Nations Global Compact, the Climate Pledge, and WRAP 2030, ensuring that ACS remains at the forefront of sustainability within the fashion industry. 5. Monitoring & Reporting: As part of his role, Michael oversees the monitoring of ACS’s carbon footprint and sustainability performance. He ensures accurate reporting of Scope 1, 2, and 3 emissions, utilising tools like Normative, to provide transparency to stakeholders and compliance with global environmental standards. His team regularly assesses the effectiveness of ACS’s sustainability initiatives and makes recommendations for continuous improvement. 6. Innovation & Circular Economy Champion Michael is a key driver of ACS’s innovation in circular fashion. He leads the exploration and implementation of new technologies and business models that extend the lifecycle of garments, minimize waste, and reduce emissions. This includes ACS’s take-back schemes, upcycling programs, and partnerships focused on sustainable business models. 7. Social Sustainability & Disadvantaged Talent Development In addition to environmental initiatives, Michael oversees ACS’s efforts to create social impact. This includes leading the company’s disadvantaged talent pipeline program, which supports individuals from marginalised communities, such as refugees and ex-offenders, through apprenticeships and career progression opportunities. His work ensures ACS maintains its Disability Confident Leadership status and drives social mobility. 8. Strategic Collaborations Michael engages in high-level partnerships with organisations like Circularity Capital, Zero Waste Scotland, and industry bodies, to advance research, secure funding, and promote initiatives that accelerate sustainability and circularity. His leadership was instrumental in ACS’s participation in programs such as the Amazon Sustainability Accelerator and Innovate UK’s research projects on circular business models. 9. Embedding Sustainability into Corporate Culture A core aspect of Michael's role is fostering a culture of sustainability within ACS. He works across all departments to embed sustainable practices, promote green skills development, and ensure that all employees understand and contribute to ACS's climate goals. Key Attributes & Expertise - Passion for Sustainability: Michael is deeply committed to addressing climate change and advancing environmental sustainability, reflecting a personal mission to give back to society as he approaches the end of his career. - Visionary Leadership: He brings a visionary approach to ACS’s sustainability goals, continuously seeking innovative ways to reduce emissions and create circular business models that align with the company’s BCorp status and broader environmental commitments. - Expertise in Circular Fashion: With years of experience, Michael is a recognized expert in driving circular economy solutions, with a focus on reducing textile waste, optimizing resource use, and achieving net zero through sustainable business practices. Through his leadership as CSO, Michael ensures that ACS remains a leader in climate action, advancing sustainable fashion solutions while addressing both environmental and social challenges.

6.1.2 Is this person (or another at executive and board level) also responsible for climate risk?

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Yes

6.2 Have you started to identify and assess your companies climate risks and opportunities?

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Yes - we have identified both climate risks and opportunities

6.2.1 Where are the climate risks you've identified?

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Both operations and value chains

6.2.2 How are you managing these climate risks? Choose as many as are applicable.

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We've started to prioritise climate risks,We've mapped the impact of our climate risks over time (short, medium and long term horizons),We've Identified plans for adaptation to mitigate these risks

6.2.3 Provide any additional comments or context on your climate risks:

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ACS Clothing Ltd. Climate Risks and Opportunities Assessment As a leading circular fashion company, ACS faces both climate-related risks and opportunities as it continues to develop and scale its sustainable business model. These can be categorised into physical and transition risks, as well as opportunities aligned with climate resilience, emissions reduction, and market leadership. Climate Risks 1. Physical Risks Extreme Weather Events: Increasing frequency and severity of extreme weather events such as floods, storms, or heatwaves may disrupt ACS’s operations, particularly its supply chain and logistics. This could result in increased costs due to damaged infrastructure, supply chain delays, or loss of inventory. Water Scarcity: Given ACS’s large-scale laundry operations, water scarcity poses a risk to maintaining sustainable operations. Rising global temperatures and climate change-related droughts could limit access to water resources, increasing operational costs and potentially hindering garment processing. 2. Regulatory Risks Stricter Environmental Regulations: Governments worldwide are adopting stricter regulations on carbon emissions, waste management, and environmental practices. ACS could face additional compliance costs if regulations tighten, particularly around water use, energy consumption, and waste disposal in fashion. Extended Producer Responsibility (EPR) Legislation: Future EPR regulations could impose additional costs and operational complexities on companies like ACS to manage the end-of-life of products, including increased responsibility for recycling and waste reduction. This could lead to increased operating expenses or the need for new systems to manage compliance. 3. Market & Reputational Risks Consumer Demand Shifts: If consumer interest in sustainable fashion plateaus or if there’s a rise in "greenwashing" claims across the industry, ACS may face reduced demand for its circular fashion services. Additionally, negative press or failure to meet sustainability targets could damage ACS’s reputation, leading to loss of customers or partnerships. Supply Chain Instability: Given its reliance on a circular supply chain, disruptions in sourcing reusable materials or delays in product take-back programs due to external factors (like geopolitical instability or supplier sustainability issues) could impact service delivery and increase costs. 4. Financial Risks Funding and Investment Pressures: As climate-related financial regulations emerge (e.g., Task Force on Climate-related Financial Disclosures - TCFD), ACS may face increased scrutiny from investors regarding their carbon footprint and overall climate resilience. Failure to meet investor expectations could reduce access to capital. Carbon Pricing: As more markets implement carbon pricing or taxes, ACS could face increased costs related to its energy consumption and emissions footprint, particularly if it relies on non-renewable energy sources in any part of its supply chain. Climate Opportunities 1. Circular Economy Growth Expansion of Circular Fashion Services: ACS has a competitive advantage in circular fashion and is well-positioned to capitalise on the growing demand for sustainable, low-carbon alternatives to traditional fashion. Opportunities include expanding the rental, refurbishment, and take-back models to new markets, particularly as consumers and businesses seek to reduce their environmental impact. Innovation in Upcycling and Recycling: ACS’s expertise in recycling and upcycling textiles and PPE presents opportunities to explore new revenue streams. Continued innovation in recycling technology (e.g., fabric regeneration) could lead to new partnerships and business models that align with a net zero future. 2. Sustainable Laundry Technology Water Conservation Innovations: As part of ACS’s focus on sustainable laundry services, investments in water-efficient technologies, like closed-loop systems or water recycling methods, can position the company as a leader in water conservation. This would address climate risks related to water scarcity and reduce operational costs in the long term. Energy-Efficient Operations: There is an opportunity to further reduce the energy consumption of ACS’s laundry and garment care services by implementing renewable energy sources (e.g., solar or wind) or energy-efficient technologies. This would cut down on emissions and operating costs, aligning ACS with global carbon reduction targets. 3. Policy & Regulatory Opportunities Government Incentives and Funding: ACS is positioned to benefit from climate-related government funding and incentives, such as grants for sustainable innovation, circular economy initiatives, and green technology adoption. As a leader in circular fashion, ACS could access funding to expand its services or collaborate on government-led sustainability projects. Extended Producer Responsibility (EPR) Leadership: While EPR legislation poses a risk, ACS is already ahead of many industry players by implementing a robust take-back scheme and circular economy principles. By proactively engaging in the development of EPR frameworks, ACS could influence policy and cement its position as a sustainability leader in fashion. 4. Consumer Demand for Sustainable Products Growing Demand for Sustainable and Ethical Fashion: Increasing consumer awareness and demand for ethical, low-carbon products represent a key opportunity for ACS. By leveraging its BCorp certification, social mobility programs, and commitment to reducing emissions, ACS can appeal to conscious consumers and build strong brand loyalty. Corporate Partnerships: As more businesses seek to meet their climate commitments, ACS can expand partnerships with corporations looking to integrate sustainable fashion solutions into their supply chains (e.g., through rental programs or recycling services). Corporate clients concerned with achieving net zero targets will look for partners like ACS who can help reduce their Scope 3 emissions. 5. Technological Advancements Digitalization and Automation: There is potential to leverage digital tools such as AI, machine learning, and blockchain to optimize supply chain efficiency, reduce waste, and enhance transparency in circular fashion models. Automation in processes like sorting, recycling, and garment refurbishment could further increase operational efficiency and lower costs. R&D for Low-Carbon Innovations: ACS could capitalise on research and development (R&D) opportunities to explore new low-carbon textiles or sustainable fashion innovations. This could result in first-mover advantages in producing low-impact fabrics, materials, or services that align with the company’s climate goals. While ACS faces climate-related risks, particularly related to physical impacts, regulatory pressures, and supply chain disruptions, it is also uniquely positioned to capitalize on substantial opportunities within the growing circular economy and sustainable fashion sector. By continuing to innovate in circular fashion, water conservation, and climate solutions, ACS can not only mitigate risks but also lead the transition toward a net zero carbon economy.

6.3 Have you integrated climate and/or nature into your company mission statement or shareholder agreements? If yes, describe how.

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No

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6.4 Have you taken actions this year outside of your emissions to accelerate climate progress?

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Yes

This year, ACS has undertaken a series of actions outside its own emissions to accelerate climate progress. These initiatives focus on influencing the broader fashion industry, supporting external stakeholders, and advocating for policy changes that drive systemic shifts towards a sustainable, net zero carbon economy. Here are the key actions: 1. Industry Leadership and Advocacy Advancing Circular Economy Models: ACS has taken a leadership role in promoting circular fashion as a viable and necessary alternative to the traditional linear model. This includes sharing best practices with industry peers and participating in circular economy networks such as the UK Fashion and Textile Association (UKFT) and Zero Waste Scotland. By leading discussions on reducing textile waste and improving resource efficiency, ACS is influencing industry-wide adoption of more sustainable business models. Extended Producer Responsibility (EPR) Advocacy: As a proponent of Extended Producer Responsibility (EPR) frameworks, ACS has actively engaged with policymakers to shape regulations that hold producers accountable for the lifecycle of their products. This advocacy, including participation in pilot projects and working groups, supports the acceleration of EPR implementation across the fashion industry. Public Speaking and Thought Leadership: ACS executives, including Anthony Burns and Michael Cusack, have participated in high-profile industry events and conferences, such as the Drapers Sustainability Conference and the SDG Roadshow. These platforms allow ACS to advocate for the adoption of sustainable practices across the sector, amplifying its impact beyond its direct emissions. 2. Collaborations with External Organisations Partnership with SPL Powerlines for PPE Recycling: ACS partnered with SPL Powerlines UK Limited to handle the recycling, upcycling, and repurposing of Personal Protective Equipment (PPE). By offering sustainable solutions for PPE waste, ACS is contributing to a reduction in plastic and textile waste beyond its core fashion operations, aligning with broader goals to lower overall emissions in other industries. Collaboration with Academic Institutions: ACS continues to work with universities and research institutions to develop case studies and research projects that promote sustainable practices within the fashion industry. These collaborations focus on expanding the understanding of circular models and resource-efficient processes that can be implemented industry-wide, further accelerating climate progress. 3. Sustainable Fashion Salary Sacrifice Scheme Advocacy for Salary Sacrifice Scheme: ACS has been actively working to introduce a Sustainable Fashion Salary Sacrifice Scheme, which encourages consumers to purchase sustainable fashion products and services while receiving tax benefits. By reducing the cost barrier to sustainable options, this scheme aims to drive widespread consumer adoption of low-carbon fashion choices. The initiative could have significant implications across the industry, helping to create systemic demand for sustainable products. 4. Supporting Disadvantaged Communities and Social Mobility Disadvantaged Talent Pipeline Development: ACS has been a champion of social sustainability, developing a talent pipeline for individuals from disadvantaged backgrounds, including those with disabilities, refugees, and ex-offenders. This initiative indirectly accelerates climate progress by promoting inclusive economic growth and job creation in green industries, helping to foster the skills and expertise needed to support a low-carbon economy. Participating in BCorp and Disability Confident Networks: As a BCorp-certified company and a Disability Confident Leader, ACS has advocated for greater social inclusion within the context of sustainability. By promoting these values across their networks, ACS ensures that climate action is also socially equitable, encouraging other companies to prioritise both environmental and social sustainability in their operations. 5. Collaborating on Policy and Legislative Change Salary Sacrifice Discussions with MSPs and Government: ACS has been in discussions with Members of Scottish Parliament (MSPs), including Maurice Golden, to advocate for legislative support for circular fashion and salary sacrifice initiatives. By influencing government policies that support the uptake of sustainable fashion, ACS is playing a crucial role in creating favorable conditions for widespread climate action. Engagement in WRAP 2030 Commitments: ACS’s participation in WRAP’s (Waste and Resources Action Programme) 2030 strategy demonstrates its commitment to reducing waste and lowering emissions across the entire UK textile industry. By engaging in these nationwide programs, ACS is influencing broader climate-related goals beyond its direct operations. 6. Educational Initiatives and Capacity Building Working with Schools, Colleges, and Universities: ACS is actively involved in working with educational institutions to integrate sustainability into the curriculum, focusing on circular economy principles and green skills development. By fostering the next generation of sustainability leaders and professionals, ACS is accelerating progress toward long-term climate goals and preparing the workforce for a net zero economy. My Climate Path – My Fashion Path**: As part of the My Climate Path initiative, ACS has worked to inspire and educate young people about careers in sustainable and circular fashion. This initiative encourages climate-conscious thinking among the future workforce, which is crucial for achieving systemic changes across the fashion and retail sectors. ACS's actions beyond its own emissions this year are broad and impactful, targeting systemic change across the fashion industry, policy development, consumer behavior, and social inclusion. By leading advocacy efforts, engaging in policy discussions, fostering collaboration, and supporting educational initiatives, ACS is not only reducing its own emissions but also accelerating climate progress across the industry and society at large.

Results, Challenges and Outlook *

7.1 Provide any additional comments or context on your annual results and progress from previous years.

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There has been a reduction in emissions versus 2022. This is largely due to that fact that we had an office refurbishment in 2022, so our capital goods was higher than this year. Our business travel has also reduced versus 2022 due to a decline in distance travelled and our policy to stop business class travel.

7.2 Do you face any key challenges in reducing emissions?

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Reducing scope 3 emissions,Complexities in managing supply chain emissions,Slow societal and economic progress on climate action,Insufficient policies or government incentives,Insufficient funding,Low return on investment,Limited influence over suppliers

7.3 Has there been any third party validation of the data submitted in this report?

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Yes

To achieve its goal of net-zero emissions by 2030, ACS Clothing Ltd. implemented a range of systems and processes to effectively monitor and track emissions across all Scope 1, 2, and 3 categories. These systems are essential for understanding the company's carbon footprint, making data-driven decisions, and ensuring progress toward sustainability goals. Below are the key systems and processes ACS put in place: 1. Carbon Footprint Assessments • Partnership with ClimatePartner: ACS partnered with ClimatePartner to conduct regular, comprehensive carbon footprint assessments. ClimatePartner's tools allow ACS to accurately measure and monitor emissions across all scopes, including direct emissions (Scope 1) from operations, indirect energy-related emissions (Scope 2), and supply chain and value chain emissions (Scope 3). This partnership ensures that ACS has access to precise and up-to-date data. • Annual Emissions Reporting: ACS undertakes annual emissions reporting based on its carbon footprint assessments. This process helps the company identify key areas of improvement, assess progress toward reduction targets, and transparently report emissions data to stakeholders. 2. Sustainability Software Solutions • Normative and Worldfavor: ACS uses advanced sustainability management platforms such as Normative and Worldfavor to track and monitor emissions in real-time. These tools provide granular insights into emissions data across different areas of the business, enabling the company to track progress, identify inefficiencies, and make adjustments as needed. • Data Integration: These software platforms integrate data from multiple sources, including energy usage, transportation, procurement, and supplier data. This ensures that all aspects of ACS’s operations are considered, providing a holistic view of the company’s emissions footprint. 3. Scope 1 & 2 Emissions Monitoring • Energy Management Systems: ACS implemented energy management systems across its facilities to track and optimize energy consumption. These systems monitor electricity usage, heating, and cooling in real-time, providing insights into where energy efficiency improvements can be made. The data from these systems is fed into the company’s carbon footprint calculations. • Smart Metering and Automation: The company introduced smart meters and automated controls for lighting, heating, and cooling systems. These meters provide detailed reports on energy consumption and allow ACS to identify patterns, inefficiencies, and opportunities to reduce energy use. • Tracking Fleet Emissions: ACS monitored fuel consumption and emissions from its fleet of vehicles, particularly those used for logistics and transportation. This data helped ACS optimise routes, reduce fuel use, and track emissions reductions related to their green fleet transition and electric vehicle (EV) integration. 4. Scope 3 Emissions Monitoring • Supplier Emissions Reporting: ACS requires key suppliers to track and report their emissions as part of their supplier engagement strategy. Suppliers provide data on their carbon footprints, including emissions from manufacturing, transportation, and raw materials sourcing. This data is crucial for measuring Scope 3 emissions and ensuring that suppliers align with ACS’s sustainability goals. • Supply Chain Collaboration: ACS works closely with suppliers to gather emissions data, encouraging them to adopt monitoring systems that track energy usage, waste, and carbon emissions. This collaboration ensures that ACS can accurately assess Scope 3 emissions across the supply chain. • Tracking Emissions from Procurement and Packaging: The company tracks emissions related to the procurement of consumables and packaging materials, especially after transitioning to reusable packaging and biodegradable alternatives. This process ensures that ACS can monitor the carbon impact of these materials and adjust procurement strategies accordingly. 5. Real-Time Emissions Monitoring • IoT and Smart Technology: ACS has adopted Internet of Things (IoT) technologies and smart systems to monitor emissions in real-time. These technologies track resource consumption, such as water and energy use, in garment cleaning and processing, providing data that can be used to optimize operations and reduce emissions. • AI-Powered Defect Detection: ACS uses AI-powered defect detection systems to optimize garment renewal processes. By ensuring that garments are processed efficiently and with minimal waste, these systems reduce water, energy, and chemical usage, which are all tracked as part of ACS’s emissions monitoring. 6. Emissions Scorecards and Dashboards • Sustainability Scorecard: ACS uses a sustainability scorecard to monitor and track key metrics related to emissions reductions. The scorecard covers various aspects of the business, including energy efficiency, transportation emissions, supplier compliance, and circular economy initiatives. The scorecard is reviewed regularly by senior management to ensure that the company is on track to meet its sustainability goals. • Real-Time Dashboards: The company employs real-time dashboards that provide visual representations of emissions data across different departments and areas of operations. These dashboards allow for quick identification of areas with high emissions and enable swift decision-making to mitigate carbon impacts. 7. Third-Party Audits and Verification • Third-Party Verification: ACS engages third-party organisations like ClimatePartner and Normative to verify emissions data. These external audits ensure accuracy and credibility in emissions reporting, giving stakeholders confidence in ACS’s sustainability performance. • Certification Standards: ACS aligns its emissions monitoring with global certification standards, such as the Science-Based Targets initiative (SBTi) and ISO 14064 standards for greenhouse gas accounting and verification. These certifications provide a structured approach to tracking and reducing emissions. 8. Regular Review and Adjustment • Weekly Sustainability Meetings: ACS’s board of directors holds weekly meetings focused on sustainability and emissions reduction. These meetings involve reviewing data from the emissions tracking systems, discussing progress toward net-zero goals, and making adjustments to strategies where necessary. • Continuous Improvement: ACS follows a process of continuous improvement by regularly evaluating its emissions monitoring processes. By reviewing data trends, ACS can identify new opportunities for further emissions reductions and adjust policies or investments accordingly. 9. Employee Engagement in Monitoring • Training Employees in Data Collection: ACS engages its employees in the emissions monitoring process by training them to collect data related to energy use, waste reduction, and other key sustainability metrics. This ensures that data collection is accurate and that employees understand their role in contributing to the company’s carbon reduction efforts. • Sustainability Champions: ACS has established Sustainability Champions within departments who are responsible for tracking progress on emissions reductions and reporting data for their specific areas. These champions play a vital role in ensuring that emissions monitoring is an ongoing priority throughout the company. By implementing these comprehensive monitoring systems and processes, ACS ensures that it can accurately track its emissions, make informed decisions about emissions reductions, and stay on course to achieve net-zero emissions by 2025. This combination of technology, data-driven insights, and collaborative supplier engagement ensures that ACS maintains a high level of transparency and accountability throughout its sustainability journey. ACS Clothing Ltd. uses a variety of frameworks and standards to guide its sustainability reporting and ensure that its efforts toward net-zero emissions are transparent, credible, and aligned with global best practices. These frameworks help ACS structure its reporting, measure progress, and communicate its sustainability initiatives to stakeholders. The key frameworks and standards ACS uses include: 1. Science-Based Targets initiative (SBTi) - Alignment with the Paris Agreement: ACS’s sustainability goals, particularly its net-zero emissions by 2025 target, are aligned with the Science-Based Targets initiative (SBTi). SBTi provides a globally recognised framework for setting emissions reduction targets that are consistent with the Paris Agreement’s goal of limiting global warming to 1.5°C. This ensures that ACS’s emissions reduction targets are grounded in the latest climate science and contribute meaningfully to global climate action. 2. Greenhouse Gas Protocol (GHG Protocol) - Comprehensive Carbon Accounting: ACS follows the Greenhouse Gas Protocol for measuring and managing its greenhouse gas emissions across all Scope 1, 2, and 3 categories. The GHG Protocol is the most widely used international accounting tool for government and business leaders to understand, quantify, and manage greenhouse gas emissions. It provides the framework for ACS to calculate its emissions in a transparent and standardised way. 3. UN Global Compact - Ten Principles for Sustainability: As a signatory of the United Nations Global Compact, ACS aligns its sustainability reporting with the Ten Principles of the Compact, covering human rights, labour, environmental, and anti-corruption standards. By participating in this initiative, ACS commits to advancing sustainable business practices in alignment with the UN Sustainable Development Goals (SDGs), particularly SDG 13: Climate Action and SDG 12: Responsible Consumption and Production. 4. The Climate Pledge - Commitment to Early Net-Zero: ACS is a signatory of The Climate Pledge, co-founded by Amazon and Global Optimism. The Pledge calls for organisations to meet the Paris Agreement goals 10 years early, achieving net-zero carbon by 2040 or sooner. ACS reports its progress toward net-zero emissions by 2025 as part of its commitment to this global framework, ensuring that its sustainability efforts align with the ambitious timelines set out by The Climate Pledge. 5. UN Race to Zero Campaign • Net-Zero Leadership: ACS is part of the UN Race to Zero campaign, a global initiative aimed at rallying leadership and support from businesses, cities, regions, and investors for a healthy, resilient, zero-carbon recovery. By participating, ACS commits to reducing emissions in line with the 1.5°C target and reports its progress within this global campaign. 6. Task Force on Climate-Related Financial Disclosures (TCFD) • Climate Risk and Opportunities: ACS is integrating the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) into its sustainability reporting. TCFD provides a framework for reporting on climate-related risks and opportunities, ensuring that ACS communicates the financial impacts of climate change to investors and stakeholders. This standard helps ACS identify, assess, and disclose how climate risks might affect the business, as well as how it is managing those risks. 7. Global Reporting Initiative (GRI) • Sustainability Reporting Standards: ACS aligns with the Global Reporting Initiative (GRI), a widely used international standard for sustainability reporting. The GRI framework provides guidance on reporting environmental, social, and governance (ESG) performance, ensuring that ACS’s sustainability efforts are comprehensive, transparent, and comparable across industries. GRI helps ACS structure its reports to cover the full range of sustainability topics, including emissions reduction, resource management, and social impact. 8. ISO 14064: Greenhouse Gas Accounting and Verification • Emissions Verification: ACS follows the guidelines of ISO 14064, an internationally recognised standard for greenhouse gas accounting and verification. This standard ensures that ACS’s emissions reporting is accurate, consistent, and credible. ISO 14064 helps ACS track and report emissions reductions, providing third-party verification of its carbon accounting practices. 9. B Corp Certification • Comprehensive Sustainability Commitment: ACS is a certified B Corporation, meaning that it meets rigorous standards of social and environmental performance, accountability, and transparency. As part of the B Corp framework, ACS regularly reports on its sustainability performance, including its efforts to reduce emissions, promote a circular economy, and engage with disadvantaged communities. B Corp certification ensures that ACS is held accountable for creating a positive impact on society and the environment. 10. SDG Impact Standards and UN Women's Empowerment Principles • Social Sustainability and Gender Equality: ACS aligns with the Sustainable Development Goals (SDG) Impact Standards and has signed the UN Women's Empowerment Principles. These frameworks guide ACS’s broader sustainability reporting, ensuring that it addresses social and economic factors, including gender equality and diversity, alongside its environmental efforts. 2. Carbon Offsetting Standards (VCS and Gold Standard) • High-Quality Carbon Offsets: For emissions that cannot be eliminated, ACS invests in carbon offset projects that adhere to recognised standards such as the Verified Carbon Standard (VCS) and Gold Standard. These standards ensure that ACS’s offset investments contribute to credible and effective carbon reductions, such as through reforestation, renewable energy projects, and biodiversity conservation. 3. Normative & Worldfavor Platforms • Sustainability Management and Reporting Tools: ACS uses platforms such as Normative and Worldfavor for **sustainability management and reporting. These tools help track carbon emissions, resource use, and energy efficiency, allowing ACS to align its reporting with global standards and communicate its progress effectively. These platforms ensure transparency and provide detailed insights into ACS’s emissions data. By utilising a combination of globally recognised frameworks and standards such as SBTi, GHG Protocol, GRI, TCFD, and the UN Global Compact, ACS ensures that its sustainability reporting is credible, transparent, and aligned with international best practices. These frameworks provide a robust foundation for measuring progress, managing risks, and communicating the company’s commitment to net-zero emissions by 2030.
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