Annual Impact Report 2024

Despite the investment made in modernising our industrial processes and capacity in 2024, total water consumption at our facilities increased by 29%, with the most significant increase taking place in industrial processes: between 2023 and 2024, water consumption by quantity produced increased by 11%.

This increase was not due a loss of efficiency in comparable processes, but rather to a change in the weight of more demanding production batches and types with regard to water consumption, in response to requests from suppliers and market preferences. We will continue to work towards mitigating the impacts of these changes in production types in the future.

In 2024, we introduced a system for separating clean and dirty water in all the machines in the laundry and dyeing services in our industrial unit. The clean water undergoes physical and chemical treatment, and is then reintroduced into the production circuit. This system can currently reuse up to 30% of the water consumed. In this first year of operation, the 6% mark in the reuse of water was reached, but with the belief that even higher levels will be achieved in 2025.

We are aware that the management of liquid effluent in the textile industry is crucial for minimising impacts, given that these processes generate large volumes of water containing chemical products such as dyes, pigments and solvents. After physical separation of the components, the wastewater is sent to the Rio Ave Wastewater Treatment Plant (TRATAVE) for final treatment of the effluent, and then returned to natural watercourses, respecting the parameters defined by law. In 2024, despite the higher water consumption already mentioned, the levels of effluent sent increased by only 3%.

The production of effluent by quantity produced fell by 8% in our industrial unit in 2024. This reduction is not in proportion to the increase in water consumption, given that, in the industrial processes, part of the water used resumes its natural water cycle through evaporation in the product drying phase. In addition, the previously mentioned reuse of the water used in new industrial processes sends less effluent to wastewater treatment plants.

Between 2023 and 2024, and by introducing new practices and increasing the efficiency of the equipment installed, energy consumption at our facilities (which include our central offices, a warehouse and our industrial unit and own shops) fell by 4%, with energy consumption per m2 in our shops decreasing by 11%.

In 2024, 41% of all the energy used in the Salsa Jeans headquarters (offices, warehouse and industrial unit) came from renewable sources, with 15% of the total energy used being generated by the production units through solar panels installed in our offices and industrial unit.

Between 2023 and 2024, we recorded a 6% reduction in Scope 1 and 2 CO2 emissions. Scope 1 emissions fell by 6%, corresponding to direct emissions from operations belonging to or controlled by the company (e.g. fleet and fluorinated gas emissions from air conditioning systems). Fleet fuel consumption decreased by 12% due to the increase in the electric/hybrid fleet and the reduction in the fossil fuel fleet, as well as the installation of four more electric charging stations at our facilities (offices). In addition, we found that there was a 7% reduction in Scope 2 emissions, which are associated with indirect emissions from energy consumption (particularly electricity) in the company's activities.

The calculation of CO2 emissions underwent a new measuring approach. The values for 2022 and 2023 were adjusted in order to ensure comparability between historical values.

In 2024, we estimated a 22% increase in Scope 3 CO2 emissions, which is in proportion to the higher purchasing volume. These emissions, which include all the indirect emissions that occur throughout all the stages in the value chain (goods and services, use of products sold and transport and distribution), are the most representative for the sector, and correspond to 96% of the CO2 emissions recorded.

Packaging

At Salsa Jeans, as signatories to the Portuguese Plastics Pact, we have been working consistently over the years to use less plastic in our value chain. Between 2023 and 2024, we again recorded a remarkable reduction (this time 24%) in the use of plastic, paper and cardboard in product packaging and logistics operations (by purchasing volume in tonnes). The use of plastic by purchases (tonnes) fell by 10%, while the use of paper and cardboard by purchases (tonnes) fell by 28%. These figures are due to the constant optimisation of the use of packaging, both in operations (logistics) and in products through the introduction of innovative processes, such as the introduction of an elastic strap on all denim items in the logistics chain, completely eliminating the use of plastic in these product categories.

Waste

Our goal is to prioritise the waste hierarchy, ensuring reduction and reuse, as well as the proper routing of our waste for recycling whenever possible. This is why we have been able to increase the percentage of waste sent for recycling in recent years. In 2024, 58% of the waste we produced was recycled. We regularly analyse the waste characterisation and flow in all places of work and industrial production, and we have developed action plans for improving how internal audits are done, introducing and applying internal procedures, as well as continuous research into partners in order to recycle as much of our waste as possible.

INFINITY

Infinity is a service designed to extend the life cycle of Salsa Jeans denim products. Available in all Salsa-operated stores, it allows customers to request the repair of their used items, while also ensuring the collection and best possible end-of-life solution for irreparable pieces. We’re proud to say that since its launch in June 2022, we have already repaired over 5,300 items and collected more than 1,500 pieces which, depending on their condition, may be donated to charities, recycled, or used in upcycling collections. In total, in 2024 alone, we carried out 2,540 repairs and 733 collections — meaning that 78% of the items delivered by customers were repaired and given a second life.

Circularity

We recognise the importance of preserving natural resources in the supply chain, so our aim is to introduce circular models, prioritising product development based on eco design, with a particular focus on durability, mono-materials, repairability and recyclability, aware that this is a long journey, but we must remain constant.

We are committed to purchasing and using more responsible raw materials with a smaller environmental impact sourced from certified forests. This is why we have drawn up and use a guide document, the Manual Circularity Tool Kit, in our product development decisions. The use of this document makes it possible to prioritise product development based on eco design, with a particular focus on durability, mono-materials, repairability and recyclability. Thus, in 2024, we concluded that 58% of the fibres used in our products were of natural origin, while 57% of our products are made from mono-materials (>=95% raw material), facilitating recycling at the end of the item's lifecycle.

At the end of the year, we teamed up with RECOVO to turn surplus textiles into new resources, extending the lifetime of our materials and reinforcing our commitment to circularity.

Our partners are fundamental to our strategy. We work behind the scenes to bring customers a product that’s unique, exclusive and special.

We realise that knowing the origin of a product, monitoring its progress and understanding its production process are all essential for us to assure quality and compliance with standards. This is why we are working towards reaching 100% traceability up to Tier 4 of our value chain.

After achieving 100% traceability in Tier 1 and Tier 2 in 2024, we are working towards ensuring that all the information shared meets with our parameters.

We are deeply committed to and have long-standing relationships with our suppliers (over half of our suppliers have worked with us for five years or more). In 2024, 69% of our suppliers had been working with Salsa Jeans for more than five years, and 47% of our Tier 1 suppliers had been working with us for at least ten years (based on turnover).

We work towards having a balanced production chain in terms of the mix of origins, complementing our network of local suppliers (which, apart from Portugal, includes Spain, Morocco, Tunisia and Turkey), with a smaller number of suppliers from further afield (particularly Asia). We have always fostered a relationship of continuity with all of them, assuring the support and development of the communities they are part of. In 2024, 50% of our suppliers were from neighbouring countries.

We want to ensure that 100% of our suppliers comply with ESG (Environmental, Social and Governance) criteria by 2026. In order to achieve this goal, all suppliers are initially assessed through their environmental and social certification, and then audited externally. In 2024, 58% of our suppliers received a positive assessment according to ESG criteria.

Equity and Diversity

We are committed to gender equality in leadership positions. Salsa Jeans has a total of 1186 employees, 903 of whom are women. In 2024, 76% of the employees on our central teams were women, who also occupy 55% of leadership positions. In addition, we guarantee pay equity between men and women through internal studies that analyse salary levels for comparable positions. Our goal is to continue to maintain balance and parity in all our in-house policies, always based on merit, and to provide training for all our staff.

Reborn

In 2024, we held the second Reborn event, an initiative aimed at social reintegration of women at risk, in partnership with the Incorpora Portugal programme by the “la Caixa” Foundation. With the aim of supporting the social and professional reintegration of women at risk of social exclusion, the goal of the project was to organise a number of sessions, both group sessions and individual mentoring, on essential topics for the reintegration into society of the women taken in by Incorpora, such as: the job seeking process, with help in drawing up CVs and preparing for interviews; training in financial literacy, with support in the organisation of personal finances; finishing school; sharing nutrition tips; image consultancy sessions and self-care and make-up tips. The second initiative involved 19 women (eight more than in the previous one) and focused on knowledge sharing in different areas over 10 sessions (four more than in the previous one).

The result was very positive, and the project goal was achieved once again: helping women to become more confident and empowered and to learn new skills that will allow them to have new opportunities in their lives.

Training

We believe that the personal development of individuals is a continuous process that involves the acquisition of knowledge, skills and values, shaping their identity and preparing them to face the challenges of life and to contribute positively to society. This is why training for our staff is imperative for driving productivity, fostering innovation and promoting an atmosphere of continuous learning. In 2024, each employee had an average of 49 training hours.

We also focus on providing our staff with the conditions they need to increase their levels of academic qualifications, both at the secondary school level where, through the Qualifica project, over 50 staff members have already proceeded in their qualification since 2021, and through a new scholarship programme for higher education which, in 2024, supported the first two Salsa Jeans employees to start their academic career in higher education.