Sustainability Report 2026

As a family-run company with its own fully integrated production facilities in Turkey and Egypt, Weberei Pahl is deeply embedded in textile supply chains. Sustainability is an integral part of our corporate strategy and our responsibility towards people, the environment and future generations.

We are guided by internationally recognised standards and frameworks, including:

•UN Guiding Principles on Business and Human Rights

•OECD Guidelines for Multinational Enterprises

•ILO Core Labour Standards

•National and European requirements relating to corporate due diligence obligations

•Industry-specific initiatives and guidance for the textile sector

Our Policy Statement forms the foundation of our actions. It is complemented by policies and guidelines covering human rights, working conditions, occupational health and safety, environmental responsibility and responsible business conduct.

The identification, assessment and management of human rights and environmental risks are based on a regularly updated risk analysis. The results are incorporated into our action planning, supplier communication and the continuous development of our sustainability management system.

During the reporting year, existing processes were further developed and additional tools for risk assessment, supplier evaluation and progress monitoring were implemented. Our objective is to continuously improve transparency throughout our supply chains and to strengthen the effectiveness of our due diligence processes in a transparent and measurable manner.

Our risk analysis is based on a structured assessment throughout the supply chain and considers both human rights and environmental risks. The evaluation follows a risk-based approach, taking into account the likelihood of occurrence, the potential severity of impact and our ability to influence and mitigate identified risks.

The risk analysis covers both our own production facilities and relevant business partners within the upstream supply chain. Findings from audits, supplier assessments, grievance mechanisms, certifications and ongoing dialogue with business partners are continuously incorporated into the evaluation process.

Prioritised risks include in particular:

•Discrimination, sexual harassment and gender-based violence

•Working hours and overtime

•Occupational health and safety

•Site-specific safety and security risks

•Greenhouse gas emissions

•Environmental impacts resulting from climate change

•Access to living wages and the preservation of purchasing power

Our measures include, among others:

•Regular external audits and supplier assessments

•On-site visits and direct dialogue with business partners

•Use of recognised certifications and standards

•Structured supplier and employee surveys

•Established grievance and whistleblowing mechanisms

•Sustainability coordination at our own production facilities

•Risk-based action planning and effectiveness monitoring

The results of the risk analysis are reviewed and updated on a regular basis. They form the basis for the continuous development of our due diligence processes as well as the planning and prioritisation of preventive and corrective measures.

Our risk analysis (as of 2026) prioritises human rights and environmental risks on two levels:

(a) Sector-specific in accordance with OECD guidelines for the textile industry:

(b) Prioritised countries and regions

Country-specific risks are regularly assessed and compared with sector-specific risks as part of our risk analysis. For selected sourcing regions, elevated risks have been identified and are therefore given particular consideration within supplier assessments, information gathering activities and action planning processes.

(c) Prioritised supply chain areas

A particular focus is placed on the gradual improvement of transparency within upstream supply chain tiers. This includes the collection of information from additional supply chain levels as well as the continuous expansion of the data basis relating to key material groups and relevant business partners.

The prioritised risks form the strategic starting point for our action planning. The risk analysis is regularly updated and firmly embedded within our sustainability management system. Feedback from supplier assessments, grievance mechanisms, audits and direct dialogue with business partners is systematically considered and incorporated into the continuous development of our risk evaluation processes.

We regularly identify and consider particularly vulnerable groups throughout our supply chains. The assessment is based on our risk analysis and takes into account both sector-specific and country-specific risk factors.

Currently documented:

The identification of vulnerable groups is carried out with particular consideration of the priority topics identified in our risk analysis, including discrimination, harassment and unequal treatment.

Various protection and support mechanisms are in place for these groups, including:

•Local contact persons

•Human rights and anti-discrimination policies

•Confidential and multilingual communication channels

•Awareness-raising and training for managers and responsible personnel

•Grievance and whistleblowing mechanisms

•Regular integration of relevant feedback into the risk analysis process

Findings from supplier assessments, employee surveys, audits and grievance mechanisms are used to identify potential risks affecting vulnerable groups at an early stage and to develop appropriate preventive and corrective measures.

The protection of particularly vulnerable groups remains a key element of our human rights due diligence approach.

An effective grievance mechanism is a key component of our sustainability management system. It enables employees, business partners and other potentially affected stakeholders to confidentially report human rights or environmental concerns, as well as suggestions for improvement.

Our multi-level grievance system includes:

•Suggestion and complaint boxes on site

•Multilingual online forms (DE/EN/TR/AR)

•Confidential advisors and sustainability coordinators as points of contact

•Regular documentation and evaluation of submitted concerns

All incoming reports are systematically recorded, assessed and, where necessary, linked to appropriate preventive or corrective measures. The findings are incorporated into the continuous development of our risk analysis and future action planning.

Main topics of documented complaints an feedback

All documented concerns were assessed, addressed and, where appropriate, linked to corrective actions. The resulting findings continue to contribute to our risk analysis and the continuous improvement of our processes.

Effectiveness and progress monitoring:

The effectiveness of the grievance mechanism is assessed based on, among other factors:

•Accessibility and awareness of reporting channels

•Processing and follow-up of submitted concerns

•Recurring topics and their development over time

•Implementation of identified improvement measures

•Feedback from audits, supplier assessments and site visits

The continued use of the available reporting channels and the systematic handling of submitted concerns help us identify potential risks at an early stage and implement improvement measures in a timely manner. The evaluation of feedback contributes to the further development of existing processes and strengthens the effectiveness of our risk management approach.

In addition to our own production facilities, findings from supplier assessments, audits and other dialogue formats are increasingly incorporated into the overall evaluation process. This broadens the perspective across the supply chain and continuously improves the basis for risk-based decision-making and action planning.

The promotion and support of living wages remains an important component of our human rights due diligence approach. As part of the current risk analysis, the risk of insufficient income levels and potential losses in purchasing power continues to be recognised as a relevant area requiring ongoing attention.

Inflationary developments, rising living costs and regional economic fluctuations can lead to situations where statutory minimum wages and actual living costs diverge. For this reason, developments relating to wages and purchasing power are regularly monitored and assessed.

Weberei Pahl has established a structured approach that includes the assessment of statutory minimum wages, recognised living wage reference values and relevant economic conditions. The findings are incorporated into our risk analysis, supplier communication and the continuous development of our sustainability activities.

Results of the risk analysis (2026)

The risk analysis confirms that developments relating to income levels and purchasing power require continuous monitoring. In particular, countries experiencing elevated inflation rates or significant economic fluctuations may face increased risks regarding the long-term maintenance of adequate income levels.

To assess these developments, statutory minimum wages, recognised living wage reference values and other publicly available information are regularly reviewed and compared.

Measures and progress

During the reporting year, existing processes were further developed and systematised.

Key measures include:

•Regular assessment of wage developments, living costs and purchasing power at our own production facilities

•Documentation of relevant reference values as part of the risk analysis process

•Integration of the topic into the annual review of human rights risks

•Raising awareness among business partners regarding the importance of living wages and fair working conditions

•Expansion of the data basis through structured supplier assessments and information requests

•Consideration of the topic within the continuous development of procurement and sustainability processes

Effectiveness and progress monitoring

The effectiveness of these measures is regularly assessed using qualitative and process-based indicators, including:

•Completeness and relevance of documented assessment criteria

•Regular review of relevant living wage reference values

•Progress in information gathering throughout the supply chain

•Integration of the topic into supplier assessments and risk evaluations

•Findings from audits, supplier communication and other dialogue formats

The results indicate that the topic is increasingly being integrated into existing management processes and that the data basis for future assessments has been continuously improved.

Further development of the data basis relating to living wages and purchasing power developments.

Continuous updating of relevant reference values and assessment methodologies.

Further expansion of supplier communication regarding fair working conditions and living wages.

Evaluation of suitable opportunities to improve transparency within upstream supply chain tiers.

Strategic responsibility: Management of Weberei Pahl

Operational implementation: Management of the production facilities

Monitoring & documentation: Sustainability coordinators and responsible local representatives

Communication: Sustainability management at Weberei Pahl

As a vertically integrated company with its own production facilities in Egypt and Turkey, we maintain a high level of transparency within the direct production stages of our supply chain. Our own facilities are regularly included in risk analysis activities, action planning processes and sustainability assessments.

In addition, we continuously work to improve transparency within upstream supply chain tiers. Our objective is to gradually expand the available information relating to relevant business partners, materials and origin-related data, while continuously improving the quality and reliability of the information collected.

Our approach includes, in particular:

•Regular collection and updating of relevant supplier information

•Use of certifications, audit reports and supplier disclosures as information sources

•Structured supplier assessments and risk-based information requests

•Expansion of transparency within upstream supply chain tiers

•Continuous development of origin and sustainability-related information concerning key material groups

The collection of information from deeper supply chain levels remains a key focus of our sustainability activities. The findings obtained are incorporated into our risk analysis, supplier assessments and the ongoing development of our procurement processes.

Through this gradual approach, we aim to continuously improve transparency, traceability and risk awareness throughout our supply chains.

Our sustainability-related information is publicly available through our website.

Central access point: www.weberei-pahl.de/verantwortung

Available content: Policy Statement, Code of Conduct, Sustainability Reporting, Certificates, Audit Documentation and Grievance Procedure

Languages: German & English

Publication frequency: continuously updated and reviewed at least once per year

The information has been designed to be understandable and accessible for a wide range of stakeholders, including customers, business partners, auditors and the general public. The structure is aligned with the requirements of the Green Button standard and the key elements of corporate due diligence obligations.

In both language and presentation, we place particular emphasis on transparency, clarity and practical relevance. The content is intentionally factual and focuses on describing our processes, measures and progress.

Key documents and information are reviewed regularly and updated where necessary. Our objective is to ensure the long-term accessibility of relevant sustainability information and to provide transparent reporting on the continuous development of our due diligence processes.

To assess the effectiveness of our due diligence processes, we use both qualitative and quantitative indicators. These help us to document progress, identify areas for improvement and further develop our measures in a targeted manner.

The basis for our progress monitoring includes, in particular:

Results of the risk analysis

Implementation of defined measures

Findings from audits and supplier assessments

Feedback obtained through grievance mechanisms

Progress in information gathering throughout the supply chain

Developments relating to living wages and human rights risks

Examples of indicators and assessment areas include:

Progress of risk analysis and risk assessment activities

Implementation of preventive and improvement measures

Supplier assessments and information gathering activities

Transparency throughout the supply chain

Processing and evaluation of complaints and grievances

Documentation of relevant sustainability and social topics

The evaluation is carried out regularly as part of our sustainability management system. Results are analysed, documented and incorporated into future action planning processes.

To improve transparency and comparability, progress is monitored through an internal assessment system. This enables developments to be tracked over multiple reporting periods and supports the identification of continuous improvement opportunities.

The use and effectiveness of the grievance mechanism represent an important element of our progress monitoring approach. Findings from grievances, audits and supplier assessments are systematically evaluated and incorporated into the ongoing development of our due diligence processes.

This methodology supports continuous improvement in line with the PDCA cycle (Plan – Do – Check – Act) and contributes to the regular review of the effectiveness of our due diligence activities.

We annually review the development of key sustainability topics based on our risk analysis, documented measures, supplier assessments, grievance mechanisms, audits and internal reviews.

The objective is to transparently document progress, identify risks at an early stage and continuously improve existing processes.

Developments observed during the reporting year

Further development and increased structuring of the risk analysis

Expansion of the data basis for supplier assessments and sustainability-related information

Enhanced information gathering throughout upstream supply chain tiers

Further development of assessment methodologies relating to living wages and purchasing power

Stronger integration of risk analysis, action planning and progress monitoring

Continuous improvement of transparency throughout the supply chain

Target system

Our target system is derived from:

The results of the risk analysis

Internal action and improvement plans

Recognised standards and certification systems

Requirements of the Green Button standard and other relevant sustainability frameworks

Achievement of these objectives is regularly reviewed and evaluated as part of our sustainability management system. The focus is not on the short-term completion of individual measures, but on the continuous improvement of the underlying processes and information base.

Particularly in areas where transparency remains limited or where data availability is still developing, we pursue a gradual improvement approach. The objective is to continuously improve information quality, the effectiveness of measures and the transparency of decision-making processes.

This systematic evaluation of progress and targets forms an integral part of our annual sustainability review.

This Sustainability Report is based on the information and findings available as of June 2026. The underlying risk analyses, effectiveness assessments and progress reviews are regularly evaluated and updated where necessary.

Publication Date: June 2026