Annual impact report - Become 2023

Annual impact
report




Become 2023

Salsa Jeans' business strategy is based on the principle of transparency, assuring environmental impact is minimised in all the decisions we make.


To this end, we created “Become”, our social responsibility and environmental programme that reflects who we are and our commitment to people and to the planet. This is the responsibility we take on, to do what we do best, respecting the ecosystem we are all part of.
We work every day towards the “Principle of 100%”, which means we approach each issue with the aim of bringing about a 100% change or improvement in our production chain, a certain family of products, some specific process... honestly and transparently.
Our goal and our actions have always been influenced by progress. We look at this impact report as a way of measuring the small victories won and understanding the road we still have to travel.
Because as a brand, we believe that intentions alone are not enough, we will now present, through our three pillars – Planet, Product and People – a brief outline of what we achieved in 2023.









PLANET


At Salsa Jeans, we are committed to being part of the change by implementing campaigns that respect our communities and the environment. This means that, in all the production stages, we actively work with the aim of measuring our impact and coming up with new ways of protecting the planet, particularly in terms of saving water and cutting down on plastic and CO2 emissions.





-42%

Water consumption

Betterwash®


In 2021, we introduced Betterwash®, a certified washing process aimed at reducing water consumption through more advanced techniques, such as ozone, laser and e-flow, instead of more traditional techniques.
According to a study carried out with the support of Control Union, we concluded that we reduced average water consumption per item produced by 42% between 2013 and 2021. This reduction came as a result of these techniques adopted at the time Betterwash® was implemented, the investment made in factory machinery, the introduction of optimisation processes and the relationship we have with our suppliers

Energy and Emissions


In 2023, there was a 10% reduction in energy consumption, while 13% of the energy used in our facilities (which include our main offices, a 14,000 m˛ warehouse and our industrial unit, which carries out laundry and dyeing services and special finishes) was of renewable origin and generated by our solar panels.

Between 2022 and 2023, we recorded a slight reduction of emissions in extent 1 and 2. Emissions in extent 1 saw a reduction of -23%, these correspond to direct emissions resulting from operations owned or controlled by the company (e.g. fleet and fluorinated gas emissions from air conditioning systems). These results are a reflection of the campaigns we implemented in terms of changes to the employee fleet, opting for the acquisition of electric or hybrid cars and using air conditioning systems with recirculate water instead of fluorinated gases.
Unlike this reduction, we found that there was an increase of 6% in Scope 2 emissions per square metre (m2), which are associated with indirect emissions from energy consumption (particularly electricity) in company activities. We associate this increase with the weather conditions we experienced, which required more energy to be used to heat our facilities. However, we also know that one of our priorities will be based on raising employee awareness in terms of more efficient energy consumption.
Between 2022 and 2023, we estimated a 17% reduction in Scope 3 CO2 emissions. 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 over 90% of the CO2 emissions recorded.

Plastic


At Salsa Jeans, and as signatories of the Portuguese Plastics Pact, we have been working consistently over the years to use less plastic in our value chain. 2023 proved to be a very positive year in this area, with a 69% reduction in plastic reaching the end customer.
This percentage comes as a result of eliminating the plastic on the boxes of accessories, replacing the plastic pin on the labels of jeans and shorts with cotton thread.
In addition, in 2021, we set ourselves an ambitious challenge (and one that we believe is unique in the market): to completely eliminate the use of plastic from our denim supply chain. This means getting all these products circulating in perfect condition between our suppliers, warehouses, shops and end customers without using a single plastic bag. To respond to this challenge, we introduced the use of an elastic strap on all denim items, and we reached a percentage of 78% of items not needing plastic packaging in the supply chain.










PRODUCT


The product is the raison d’ętre of our business, which makes it essential for its development process to become more and more responsible. To this end, we work every day to innovate and create products and services that will allow us to give our products identity and quality, ensuring they have the longest life possible.





INFINITY


Infinity is a service aimed at extending the lifecycle of Salsa Jeans denim products. Available in all shops operated by Salsa, it allows customers to ask to have their used items repaired, while also assuring collection and the best possible end of life for items that can't be repaired. We are proud to be able to say that, since its launch in June 2022, we have now repaired more than 3300 items and collected more than 950 items which, depending on their condition, will be donated to charity institutions or recycled. In total, we repaired 2086 items and collected 601 items in 2023, which means that 77% of the items handed in by customers were repaired, thus gaining a new lease of life.

Treated ITEMS
(UN.)

2086

REPAIRED ITEMS

601

COLLECTED ITEMS

Traceability


We realise that knowing the origin of a product, monitoring its progress and knowing 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.
In 2023, we achieved 100% traceability in Tier 1 and 2. We will continue to work with a focus on Tier 3 and 4. Apart from being able to trace the value chain, it is also important to ensure that our suppliers meet ESG (Environmental, Social and Governance) criteria, which is why we carry out internal and external audits of suppliers and their facilities. We started out on this journey in 2023, and we want to ensure that 100% of our suppliers are audited by 2025, according to stricter criteria.

Ellen MacArthur Foundation


In 2023, we joined the Jeans Redesign project by the Ellen MacArthur Foundation, and together we developed four types of jeans according to a philosophy of circularity in the techniques and material used in order to increase their service life, but also to make final recycling easier and more complete.
What we learned on this project, we can now introduce into new products developed according to more responsible techniques, including removable buttons, non-hazardous chemicals and mono-materials (e.g. 100% cotton), seeking to gradually minimise our environmental impact.

Raw Materials


In 2023, we created our “Circularity tool kit”, a document where we classify the different fibres we use in our products with environmental scores so that we can teach our designers and buyers to choose the most environmentally responsible fibres. At the moment, through this tool, we have concluded that 57% of the fibres used in our items were of natural origin, but there is still plenty of room for improvement.










PEOPLE


At Salsa Jeans, we are committed to conscientious business practices that respect the rights of all. This means that, from our employees to our partners, our goal is to assure the best conditions and relationships so that everybody can feel motivated, safe and, above all, passionate about the work they do every day.





Suppliers


We have a strong sense of commitment to our suppliers and build lasting relationships with them. We work together to achieve the goals of both parties, which go from the perfect fit to social and environmental responsibility policies, allowing us to deliver the best product with pride and confidence, rejecting any kind of child labour or forced labour, ensuring respect for the rights of workers, their working conditions and the right to free association.
We work towards having a balanced production chain in terms of the mix of origins, complementing our network of local suppliers (where, in addition to Portugal, Spain, Morocco, Tunisia, and Turkey are also included), with a small set of suppliers from more distant origins (mainly in 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 2023, 55% of our suppliers had been working with Salsa Jeans for more than five years and 24% of our Tier 1 suppliers had been working with us for at least ten years.

EQUITY AND DIVERSITY


We are committed to gender equality in leadership positions. In 2023, 65% of the leadership positions were held by women. 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 - 1st phase


The Reborn project was launched in 2023. It is 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.








We know that progress is a process, and we still have a long way to go.


This 2023 impact report allows us to quantify and assess the progress made in these early years of the Become programme. But there is plenty of room for improvement, as well as increasing urgency. This is why we relaunched Become in 2024 with a more ambitious vision, based on four macro projects that cover topics like water, circularity, biodiversity and community support.
We also outlined continuous improvement projects aimed at reducing carbon emissions, the use of more responsible raw materials, guaranteeing more and more equity and equality, optimising packaging and transport, the use of materials in the supply chain and the introduction of ESG policies in the value chain.
All of these campaigns will be implemented so that we can become a brand that is more and more environmentally and socially responsible.





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