At Nybo Workwear, we work systematically to prevent, reduce and address adverse impacts on people and the environment throughout our value chain.

For us, it is not enough simply to carry out activities. We also want to understand whether they work.

We therefore monitor progress through specific KPIs and other indicators. Some KPIs show whether an activity has been implemented. Others show whether it has actually led to improvements for suppliers or workers.

Our measurement system is continuously developing. In some areas, we already have several years of data. In others, including living wages and responsible purchasing practices, actual effectiveness measurements will only be established from 2027.

Key KPIs

Grievance mechanisms and worker voice

A central part of our due diligence is ensuring that workers at our suppliers have the opportunity to raise concerns and report problems.

We therefore monitor whether our Tier 1 manufacturing suppliers have:

• an anonymous grievance mechanism
• access to worker representation
• the possibility to report concerns without fear of retaliation.

We also collect the number of grievances registered by suppliers through their own systems.

The number of grievances cannot in itself be used as a measure of good or poor working conditions. A higher number of reports may also indicate that workers know the mechanism and trust that it can be used.

We are therefore improving our reporting from 2027.

Suppliers will in future not only report the number of grievances, but also the categories they relate to. This will make it possible to identify recurring issues, for example related to wages, working hours, occupational health and safety, discrimination or other working conditions.

The aim is to make worker input more useful in our due diligence process and provide a better basis for targeted dialogue with suppliers.

Audits and corrective actions

Social audits and certifications are an important part of our supplier management, but we do not consider the completion of an audit to be an objective in itself.

When an audit identifies shortcomings, we review the findings and follow up on corrective actions together with the supplier.

In 2026, follow-up after audits at two Tier 1 manufacturing suppliers was completed, while follow-up at a third supplier remains open.

We have also provided concrete support to a supplier in connection with its audit process.

Our aim is gradually to move from simply measuring whether audits have been carried out to measuring:

• whether identified problems are corrected
• how quickly corrective actions are implemented
• whether the same issues recur in subsequent audits.

This will give us a better picture of the actual effectiveness of our follow-up.

From analysis to action on living wages

Living wages are one of our prioritised human rights areas.

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

On this basis, we developed a Living Wage Pilot Programme together with the supplier.

The programme will examine whether Nybo can:

• contribute financially to reducing the wage gap
• document that the contribution actually reaches the intended workers
• verify the payment through payroll data and anonymised payslips
• ensure that the contribution is not offset against existing wages, bonuses or allowances
• develop a model that can eventually be applied with additional manufacturing suppliers.

The first financial contribution is planned for the first quarter of 2027.

Quarterly reviews will then be carried out, during which we will monitor:

• whether the contribution has been paid
• whether it can be documented at worker level
• wage development
• any deviations
• lessons learned from implementation
• the need for adjustments.

This makes it possible to move from measuring whether a pilot has been launched to measuring whether the initiative actually improves wage conditions for workers.

Supplier support

When we identify challenges at supplier level, we seek where possible to work on improvements rather than simply imposing additional requirements.

In 2026, this included:

• supporting a supplier in connection with its audit process
• developing the Living Wage Pilot Programme together with a manufacturing partner
• ongoing dialogue on documentation requirements and implementation.

We use the experience from these activities to improve our approach to supplier support.

Going forward, we want to be better able to measure both the number of support activities carried out and the concrete improvements they lead to.

Responsible purchasing practices

Our own purchasing and planning processes can affect working conditions at supplier level.

Poor planning and late changes may, for example, create unnecessary production pressure and increase the risk of excessive overtime.

We have therefore analysed our own purchasing practices and identified a need for better data.

From 2027, we will measure the share of orders completed on the basis of a forecast.

This KPI will help us understand whether better planning leads to more stable production processes and reduces the need for late changes.

2027 will be the first year with a systematic baseline for this measurement.

Environmental improvements

We also monitor the effectiveness of our environmental efforts.

In this area, we have a longer data history than in several of the social areas. We therefore measure, among other things, our total CO2e emissions and CO2e intensity annually.

In 2025, Nybo Workwear’s total carbon footprint was 3,536 tonnes CO2e.

We also use environmental data from suppliers, including energy, CO2e, water consumption, waste and environmental management, in our risk analysis and supplier dialogue.

The purpose is not only to collect data, but to use trends in the data to identify where new preventive and reduction measures should be prioritised.

Remedy

If Nybo identifies an adverse impact that we have caused or contributed to, it must be addressed through appropriate corrective action and, where necessary, remedy.

During the reporting period, we did not identify any concrete cases where Nybo was required to provide remedy.

The area is nevertheless monitored continuously through:

• audits
• supplier dialogue
• grievance mechanisms
• Nybo’s whistleblower channel
• our annual risk analysis.

If a concrete case arises, both the action taken and the outcome must be documented.

From activity to effectiveness

Our due diligence work continues to develop.

We do not only want to be able to answer:

Have we carried out the activity?

We also want to be able to answer:

Has the activity improved conditions?

We therefore continue to strengthen our KPIs and our data foundation.

The most important development areas for 2027 are:

• categorisation and analysis of worker grievances
• effectiveness measurement of the Living Wage Pilot Programme
• more systematic measurement of corrective actions following audits
• measurement of purchasing practices through forecast data
• further development of KPIs for supplier support.

In this way, we use the results of our due diligence to continuously adjust our activities and focus on the areas where we believe we can create the greatest improvement.