At Nybo Workwear, we work systematically with responsible supplier management as a central part of our ESG efforts. Our approach is based on ongoing due diligence, close dialogue, clear requirements and follow-up, with the aim of preventing and reducing adverse impacts on people and the environment throughout our value chain.

In recent years, we have strengthened our processes significantly. This work is supported, among other things, by our Green Button certification and by the requirements we set for both ourselves and our suppliers.

A structured and data-based approach

The foundation of our supplier management is the systematic collection and use of data.

Each year, we collect detailed information from our suppliers across key ESG areas. This includes, among other things, climate and environmental impacts, resource consumption, working conditions, wage levels, working hours, occupational injuries, grievance mechanisms, worker representation, certifications and internal policies.

The information is collected and used as a basis for:

• ongoing dialogue with suppliers
• assessment of risks and areas for improvement
• follow-up on developments over time
• planning of concrete improvement measures
• our annual risk analysis.

In this way, we do not work with control alone, but with continuous improvement in cooperation with our suppliers.

Focus on vulnerable groups of workers

Risks do not necessarily affect all workers in the same way. Therefore, particularly vulnerable groups are included as a separate part of our risk analysis.

Depending on the production country and type of production, this may include migrant workers, young workers, women, trade union members, seasonal workers, homeworkers, people with limited access to information and other groups that may be particularly exposed to discrimination, exploitation or limited access to their rights.

We assess, among other things, the need for:

• access to safe and effective grievance mechanisms
• protection against discrimination and retaliation
• fair wages and working conditions
• access to information about labour rights
• safe working conditions
• opportunities for worker representation and dialogue.

These needs are included in our risk assessment and in the continued development of our supplier management approach.

Dialogue and physical presence

We prioritise close and long-term relationships with our suppliers.

We therefore regularly visit our production suppliers. These visits enable us to:

• review production conditions
• follow up on ESG activities
• discuss identified risks and areas for improvement
• gain a better understanding of local conditions and challenges.

In addition, we conduct regular ESG dialogues with our suppliers, where we follow up on developments, discuss new requirements and plan concrete improvement projects.

Suppliers’ own knowledge of worker groups, working conditions and internal processes is an important source of information in our due diligence work.

Audits and follow-up

All our production facilities are expected to meet high social and environmental standards and to be covered by recognised schemes such as OEKO-TEX® STeP, SA8000 or amfori BSCI.

However, certifications do not stand alone.

Following audits, we review the reports and assess, among other things, findings, corrective actions and information from worker interviews where these are included in the audit.

If areas for improvement are identified, we follow up with the supplier and work with concrete action plans.

Information from audits is also used to further develop our own processes and requirements.

Worker voice and grievance mechanisms

An important part of responsible supplier management is that workers have the opportunity to raise concerns.

We therefore require suppliers to have a grievance mechanism through which workers can report issues without fear of retaliation. Nybo Workwear also has an external whistleblower channel that provides an additional opportunity to report serious concerns.

We continuously work to improve the information we receive about grievances.

From 2027, our suppliers will therefore not only be required to report the number of grievances received, but also the categories of issues to which they relate.

This is intended to make worker input more useful in our due diligence process and enable us to conduct more concrete dialogue with suppliers about recurring problems and their underlying causes.

Our work on living wages

Living wages are one of the most complex challenges in the global textile industry and a priority area in our ESG work.

Based on wage data from a supplier in China, we identified in 2026 a significant gap between wages paid and a relevant living wage benchmark.

On this basis, we have developed a pilot programme together with the supplier with the aim of gradually reducing this gap.

The supplier’s management and HR function have been involved in the development of the programme and have, among other things, provided input on documentation requirements and practical implementation.

An important part of the programme is to ensure that Nybo’s financial contribution actually reaches the workers. We are therefore examining how the contribution can be documented clearly and potentially shown separately in employees’ wage information.

The experience from the pilot will be used to further develop our long-term living wage strategy.

Cooperation with external stakeholders

Some challenges in the textile industry cannot be solved by one company alone.

We therefore actively seek external knowledge and cooperation, particularly in areas where our own influence or expertise is not sufficient.

In 2026, we have been in dialogue with, among others, amfori BSCI and Fair Wear on how to strengthen our work on living wages and more effective grievance mechanisms.

These dialogues have given us a better understanding of the opportunities and limitations of existing systems. They have also highlighted the need for partners who can not only support data collection and analysis, but also help translate findings into concrete improvements in the supply chain.

We therefore continue to identify relevant partners and have, among other things, planned dialogue with the Danish Ethical Trading Initiative on living wages, grievance mechanisms and conditions for textile workers in our sourcing countries.

We use the learning from these dialogues to continuously develop our own due diligence processes and priorities.

Clear requirements and shared responsibility

Our Code of Conduct forms the foundation for our cooperation with suppliers.

It sets out our requirements regarding, among other things, human rights, working conditions, the environment, integrity and responsible production.

Suppliers are also responsible for cascading relevant requirements to their own suppliers and business partners.

We do not only expect suppliers to demonstrate compliance with our requirements. We also expect transparency about challenges so that problems can be identified and addressed jointly.

Continuous improvement

For us, supplier management is not a static control exercise.

Our processes are continuously developed based on:

• new supplier data
• risk analyses
• audit findings
• worker grievances
• supplier dialogue
• experience from concrete projects
• input from external stakeholders.

When we gain new knowledge, we assess whether our requirements, processes or activities should be adjusted.

In this way, we work systematically to reduce risks, strengthen working conditions and support more responsible textile production throughout the value chain.