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Sustainability means to us to take over social and environmental responsibility along the whole product creation process and supply chain. We fixed this claim in the FALKE Code of Conduct. Our Buying Conditions and our Quality Guideline define the according criteria for our suppliers of yarn and finished goods. We use different global standards to make sure all our own facilities as well as those of our suppliers can follow our guidelines reasonably. Focus of our activities is on Product Quality, Social Responsibility and Environment Protection.
Sustainability at FALKE 2024
Mission statement
Dear Readers,
Through our regular Sustainability Report, we would like to share with you our understanding, our views and our goals about sustainability.
Sustainable corporate governance has always accompanied us and is reflected in our corporate culture, our processes and even in the design of our products. The past year was characterised by global events and economic uncertainties, driven by the sharp rise in inflation. These developments meant that the industry and our company had to face unexpected challenges. We successfully faced these challenges with responsible behaviour, commitment and adaptability. Once again, it has been demonstrated that our adherence to our own production sites and the close partnership with our suppliers form the basis for our long-term existence and the lasting success of our company.
The sustainability principles "social, ecological and economic" are considered throughout the company in the daily activities of our employees. Since 2021, we have been driving forward our initiatives to promote corporate and product sustainability, thereby gaining new insights in various areas of the company. Since then, we have been recording our carbon footprint annually and initiating suitable measures to avoid and reduce emissions, from switching to green electricity to considering solutions for using renewable energy at our own sites. This also includes continuously scrutinizing our processes. We have further intensified our efforts to replace conventional materials with sustainable alternatives. This has led to steady growth in the proportion of sustainable products under the label "FALKE - WE CARE". We are pursuing the goal of making our products even more sustainable.
A significant step in 2023 was the implementation of a software to digitalize our supplier network and data on certifications and sustainability. In this way, we do not only support our processes for compliance with the FALKE standard, but also establish the basis for fulfilling our obligations in 2024 and for future regulatory requirements.
We hope you enjoy reading the report. Please do not hesitate to contact us for further information or feedback.
Best regards,
Franz-Peter Falke Paul Falke
How we make our products
The FALKE GROUP produces legwear, apparel and underwear of the brands FALKE and Burlington. Furthermore, FALKE is licensee for ESPRIT legwear.
FALKE operates own facilities within Germany, Europe and South Africa in which 89% of our legwear articles are produced. Selected global suppliers supply yarn and fabrics for our in-house production. To compensate capacity constraints and to extend the range of technology FALKE also selected and developed strategic suppliers for finished goods within Europe and Asia.
Our drive and basic principles
Our business operations are determined by the action fields Product Quality, Social Responsibility and Environment Protection. Corresponding guidelines set the framework of thinking and acting for us and for our suppliers. These guidelines base on internationally accepted standards as OEKO-TEX® Standard 100, the amfori BSCI[1] Code of Conduct and the ZDHC[2] initiative. The relevant Standards will be described further in the following sections.
Through our FALKE Buying Conditions and the FALKE Quality Guideline including RSL[1] and MRSL[2] our suppliers accept on following these guidelines and to supply the demanded goods in the quality we expect – for more information, please find the documents at the end of the report.
To verify the compliance to our requirements and fulfil our duty of care towards our employees and the employees in the supply chain, we evaluate our suppliers and the FALKE production sites. In doing so, we pay particular attention to compliance with our requirements regarding working conditions, environmental protection and chemicals management. In order to fulfil our due diligence obligations under the Supply Chain Act, we have converted our existing evaluation system into a risk management system. We have summarised the exact procedure in the FALKE policy statement on responsible business practices. To ensure compliance with our requirements, we require our suppliers to provide evidence in accordance with internationally recognised standards in the form of audits or certificates. The audits focus on risk countries as classified by amfori BSCI and are performed either by our specially trained employees or by independent external institutes. Based on the audit results we accompany the relevant suppliers closely to support them implementing our high standards. An important step in supporting these processes is the introduction of a software solution to digitalise our supplier network. The software enables the automation of workflows, the efficient management and analysis of data and the targeted implementation of measures. This not only increases our efficiency, but also gives us an even more detailed insight into our supply chain.
Product Quality
We design and develop our products to be in line with the FALKE quality requirements. OEKO-TEX® Standard 100 is the basis for the FALKE Quality Guideline which is provided to our material suppliers, our own production facilities as well as external manufacturers of finished goods. According to the OEKO-TEX® Standard 100, textiles are tested for harmful substances beyond legal requirements. We assess quality along four categories:
Physical characteristics
Pilling
Abrasion resistance
Change of colour shade
Using Characteristics
Shrinkage after washing according to care labelling
Visual appearance after washing
Lose thread ends
Colourfastness
Colourfastness to washing
Colourfastness to heavy water
Colourfastness to rubbing
Colourfastness to sweat (alkaline and acid)
Colourfastness to saliva and perspiration
Prohibited substances
Conformity to Restricted Substances List (RSL)
Conformity to the EU Regulation REACh[5]
Meeting the FALKE Quality Guideline starts by purchasing material preferably holding an appropriate OEKO-TEX®-Standard-100 certificate. Regardless of whether a certificate is in place or not our own laboratory performs standard random incoming controls regarding the above-mentioned criteria on all materials before being processed in our facilities. The finished goods are tested during the subsequent product creation process. This applies to both, products from our own facilities and products sourced from external partners.
The tests performed in our laboratory cover the requirements of physical characteristics, using characteristics and colourfastness as figured above. Independent research and testing institutes verify compliance with the FALKE RSL, which sets the limits of certain substances that must not be exceeded in our products. The FALKE RSL considers relevant requirements of OEKO-TEX® Standard 100 and REACh. Any exception from our guideline will be declared and results in root cause analyses with subsequent corrective actions.
Should there be any reason for complaint – we look forward to receiving your feedback for consideration in our product development and improvement process.
Social Responsibility
Our definition of social responsibility includes both those along the supply chain and internal obligations within our own company.
To be in line with our definition of social responsibility the conformity to the BSCI Code of Conduct along the supply chain is an essential part. Therefore, this is anchored in our Buying Conditions. BSCI is an optional initiative for companies to ensure and support the improvement of working conditions along their supply chains. Specific institutes perform audits on a regular basis at participating companies around the world. FALKE is BSCI participant for years and performs audits in all own facilities in BSCI risk countries. FALKE also accepts adequate social standards as an alternative.
At FALKE
We attach great importance to fair, safe and healthy working conditions as well as equal opportunities and respect for diversity at our own production sites and administrative locations. We offer our employees training opportunities for professional development and promote a culture of openness and cohesion. The opinions of our employees are important to us. That is why we regularly organise information and dialogue events and have established digital information channels to create transparency. Constructive cooperation within the company promotes a positive and sustainable corporate culture that strengthens the social balance within the company in the long term.
Environment Protection
Environment Protection means to FALKE meeting nature with the biggest respect along the whole product creation process and supply chain. We recognise the challenges that a sustainable transformation entails and are working in various areas to make our business practices more environmentally friendly. Right from the start, we develop our products under consideration of material origin and consequences of the required production process. We review our production and logistic processes continuously to reduce energy consumption, waste and rejects. We have summarised further information under "Goals, measures and successes in environmental protection" and update this regularly.
Animal Welfare
Animal Welfare has been and is a matter of course for us. As wool is one of the most important raw materials we use in our products, we havae set animal protection as an essential principle in our FALKE Quality Guideline. Please find relevant guidelines and requirements for the individual kinds of wool below.
Mulesing is a painful treatment of sheeps to prevent infestation of special maggots. Our Quality Guideline excludes the purchase of wool obtained using this method.
Hazardous Substances & Chemical Management
In textile production the main concern is the exhaust of wastewater from chemical processes. These so called “wet processes” are used for dying as well as for treatment of materials to achieve certain functional or haptic product characteristics. We continuously work on innovative processes to reduce the usage of chemicals within our processes – no matter if this concerns our own or external factories. All chemicals used for the production of our products meet the statutory REACh standards of the European Union.
As proof of conformance to the ZDHC criteria, a global initiative of fashion brands aiming to reduce harmful substances within the manufacturing process to zero, we perform wastewater analyses for all our factories with wet processes. For external factories with wet processes, we request a valid wastewater analysis and agree on measures in case of deviations from the standard.
Climate Protection
Since calculating our carbon footprint for the first time in 2022, based on the year 2021, FALKE KGaA has made a conscious change in its approach to corporate climate protection. We are aware of our responsibility towards the global climate and the environment, which is why we balance our greenhouse gas emissions annually. This not only serves to monitor the development of our environmental impact, but also enables us to identify emission-intensive areas and analyse short, medium and long-term measures to avoid and reduce our emissions. The results as well as the main sources of the corresponding emissions are communicated to the entire FALKE team and are in focus of our activities. The implementation of measures is planned and followed up within our sustainability team.
FALKE - WE CARE
In addition to fulfilling existing requirements in the areas of social responsibility and environmental protection, we strive to continuously improve and intensify sustainable business practices at FALKE within the corporate initiative FALKE - WE CARE.
FALKE – WE CARE - Products
The FALKE - WE CARE label is used to label products that contain a large proportion, but at least 50% of sustainable materials. In addition to the requirements of the current FALKE Quality Guideline and Purchasing Guideline, sustainability in this context is measured for us by the criteria of resource conservation, social responsibility, traceability and respect for animal welfare. By using a mixture of sustainable and conventional materials, we are already able to produce articles that fulfil the FALKE - WE CARE sustainability criteria and offer the usual FALKE quality and durability.
Resource-efficient
We use materials that are grown or produced with reduced resource consumption. This can be represented by recycling, effective irrigation systems, short transport routes or the use of regenerative energy sources.
Socially responsible
In the supply chain, we demand the improvement of working conditions, the payment of fair wages and the observance of safety aspects and ensure this through appropriate evidence.
Traceable
We strive for the highest possible transparency in the traceability of the materials we use, preferably by requesting the relevant certificates. We work together with long-standing business partners in the procurement of materials and inform ourselves very precisely about the origin of the materials.
Respecting animal welfare
For articles containing wool, additional criteria for animal welfare, such as needs-based access to food and water or the avoidance of animal suffering, are required with corresponding evidence.
FALKE – WE CARE – Protection of species
Our responsibility towards the environment, employees and society is an integral part of "FALKE - WE CARE". Together with our employees, we are involved in a project to actively support local species conservation. The family-owned company FALKE is located in the heart of the Sauerland region at its founding site in Schmallenberg. In the midst of nature, surrounded by forests and meadows, an appropriate commitment lends itself. On free areas of the company's property, the project team has settled bee colonies, whose honey has been sold for a good cause for the second year in a row. The pollination by the bees within a radius of up to 3 km around the settlement area contributes significantly to the preservation of the vegetation and wildlife. Besides the positive effects on the environment, the project offers all employees variety in their daily work and promotes cohesion and interaction among colleagues. In addition, a species conservation seminar was held in 2023 to inform our employees about insect-friendly gardening. We then implemented an initial measure and planted a flower meadow on a green space at FALKE KGaA. This serves as a habitat and nutritional source for bees and other insects.
Goals, activities and achievements in Environment Protection
Plastic & Waste
- The high quality of our products ensures a long product durability – and with that, there is no need to dispose FALKE clothing after using it only a few times.
- We increase the proportion of recycled materials in our products and packaging. This reduces our use of resources:
- We eliminate plastic in our packaging:
- Over the past year, we have been working on a solution to replace the separate polybags in the packaging for fine goods. From 2024, the first product ranges will be packaged in a paper packaging with a viewing window based on cellulose and without polybags.
Energy & Emission
- We reduce our energy consumption and switch to renewable energies
- Regular independent energy audits ensure the verification of our energy concept and consumption.
- By the end of 2023, we had already successfully converted a large proportion of our articles to sustainable materials in accordance with our WE CARE guidelines. We aim to convert further basic and seasonal items to sustainable fibres by the end of 2024.
- In 2023, we stepped up our efforts to continuously optimise wet processes. These processes are highly resource-intensive in the textile industry. By implementing optimisation measures as part of a pilot project in the dyeing department, we were able to save energy and water resources. This was achieved by reducing the amount of water used in the dyeing process, which in turn led to a reduction in the amount of wastewater to be cleaned and to energy savings. In addition, the temperature in the dyeing process was lowered, which also leads to lower energy consumption.
- We produce the majority of our products in Germany and Europe. This results in shorter transport distances and thus lower emissions compared to other companies.
- We continuously strive to improve our logistics network to reduce the number of transports of materials and finished products between our suppliers, our plants and our customers, as well as the related CO2
Hazardous Substances & Chemical Management
The use of necessary chemicals within our processes is subject to strict guidelines and controls:
- We oblige our suppliers to provide wastewater and sludge analyses on a regular basis to track which substances are used in the process and what is released into nature. Alternatively, the certification of OEKO-TEX® Standard 100, Annex 6, can be carried out.
- Regular analyses based on the ZDHC requirements also take place in our plants.
- We continuously monitor new findings from research into potentially harmful ingredients in dyes or textile auxiliaries in order to prevent their use. Our aim is to proactively prioritise the use of less hazardous substances and ensure that we avoid negative impacts on the environment.