To our stakeholders:
I am pleased to be able to confirm Re:NewCell AB (publ)’s support for the ten principles of the UN Global Compact in the areas of human rights, work, the environment and anti-corruption. In this annual progress report, we describe our efforts to continuously improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also undertake to share this information with our stakeholders by using our primary communication channels.

With kind regards, Patrik Lundström, CEO

Renewcell supports the UN Declaration of Human Rights. We follow Swedish labor law and collaborate with trade unions to ensure that breaches of fundamental rights do not occur in our operations. Renewcell is also part of a global fashion industry where there is a risk of human rights breaches by suppliers or partners. We work actively to prevent this risk by setting requirements and ensuring supplier compliance with our policies. Renewcell operates an industrial manufacturing process where risks of injury to employees and others present in operations must always be considered, prevented and minimized. The safety and health of our employees is always our main priority.

• Recruitment of work environment specialists
• Supplier policy and audit program
• Code of conduct for employees
• Systematic work environment work
• Collaboration with union representatives
• Mandatory safety training for employees and contractors at our
facilities
• Internal training in our desired corporate culture — The
Renewcell style
• Development of measuring points for social sustainability

Renewcell has not been reached by any report on human rights abuses within the business or among the company’s partners in
2021. In 2022, Renewcell will continue to work to develop and implement routines and processes for prevention, reporting and compliance. During the year, Renewcell documented a total of 45 risk observations, 56 incidents and six accidents at the facilities in Kristinehamn and Sundsvall. The company has carefully complied with routines for a safe working environment and has consistently and without exception applied a strict alcohol and drug policy supported by random sobriety checks. In 2021, 153 sobriety checks were carried out, which resulted in two cases where positive tests led to immediate dismissal from the premises.

Renewcell supports the ILO’s core conventions and undertakes to follow its principles within its own operations and in its value chain. Renewcell supports the freedom of association of all people and the right to collective bargaining. Renewcell recognizes its responsibility to exercise its influence to support these principles and to prevent and deter the occurrence of forced labor and child labor among suppliers and partners. In Renewcell’s operations, there is zero tolerance for discriminatory treatment.

• Collective agreement for all employees through IF Metall, Sveriges ingenjörer and TEKO since 2019
• Supplier policy and audit program
• Code of conduct for employees
• Systematic work environment work
• Internal training in our desired workplace culture — The
Renewcell style
• Development of measuring points for working conditions

Renewcell has not seen any indications of breaches of the company’s codes of conduct among employees or among suppliers in 2021. All suppliers of raw materials to Renewcell have committed themselves to follow Renewcell’s supplier policy, which includes on-site audits performed by a third party appointed by Renewcell. In 2022, these audits will be performed by TÜV Rheinland for all suppliers.

Renewcell’s business concept is to create a large-scale circular flow of materials for textiles with the aim of drastically reducing the environmental and climate footprint in the global fashion and textile industry. By continuing to grow and capture market shares from less sustainable virgin materials, we contribute to achieving several of the UN’s SDGs for 2030. At the same time, we are aware that despite our pioneering activities, we have an imprint that we must work activelyto reduce, including from transportation and purchases of inputs. Since our operations include large-scale chemical processes on an industrial scale, we also need to work systematically to prevent and manage risks of emissions and other negative impacts on the local environment. As a pioneering player in circular fashion, Renewcell also feels a special responsibility to spread knowledge about the industry’s impact among all groups within and outside the industry. Renewcell is one of the original founders of the UN Fashion Charter for Climate Action industry initiative, which brings together players in the global fashion value chain to drive a reduction in the industry’s greenhouse gas emissions.

• Follow-up and reporting in accordance with environmental permits for the operations in Kristinehamn
• Detailed environmental impact assessment and application for an environmental permit for operations in Sundsvall (Renewcell 1)
• Internal product life cycle analysis in accordance with the EPD
performed by IVL Swedish Environmental Institute
• Third-party inspection and certification of the factory in
Kristinehamn in accordance with the Recycled Claims Standard • Development of a sustainability strategy based on Agenda 2030 • Recruitment of an environmental engineer with special
responsibility for compliance with environmental permits
• Supplier policy and audit program that includes a ban on the
presence of environmental toxins and pollutants in raw materials • Code of conduct for employees that includes policies with the
aim of reducing environmental and climate impact in the business • Internal training in our desired workplace culture – The Renewcell
style
• Development of measuring points for continuous environmental
and climate work
• In-house training for employees on the fashion industry’s climate
and environmental impact
• Active participation in the Swedish delegation at the COP26
climate summit in Glasgow
• Compilation and reporting of total emissions to the CDP in
accordance with our commitments in the UN Fashion Charter for
Climate Action
• Knowledge sharing within the framework of industry
collaborations such as the UN Fashion Charter for Climate Action, Stica, CanopyStyle, Textile Exchange and Fashion for Good
• Membership in the SIS working group for the development of industry standards concerning environmental aspects in textiles
• Close partnership with the advocacy group Canopy to counter deforestation of ancient and endangered forests for the production of man-made cellulosic fibers

The company has no ongoing disputes or other legal processes linked to environmental and climate impact. Renewcell and the factory in Kristinehamn have been certified according to the Recycled Claims Standard since 2021 and undertake to undergo regular third-party audits of compliance. Renewcell has, in accordance
with the environmental permits for the operations in Kristinehamn and Sundsvall, developed and implemented a control program
and routines for regular reporting of compliance to relevant local authorities. During the year, the company documented and reported five cases of unwanted emissions at the factory in Kristinehamn. At the operations in Sundsvall, no emissions were reported in 2021.

Renewcell is part of a global value chain for the collection and sorting of textile waste, and the production of textile fibers. As the company’s ambition is to conduct textile recycling on a large scale, Renewcell needs to procure raw materials in markets where there is a large supply of waste both from production and from consumption. Many of these markets have an increased risk of corruption that Renewcell must work actively to address. The company’s starting point is zero tolerance for corruption and that Renewcell’s code of conduct always takes precedence over any local legislation or practice that could conflict with it. The Renewcell Code of Conduct for All Employees contains the following provision:

Bribes and all other forms of corrupt business practices are strictly forbidden. Neither Renewcell nor anyone acting on our behalf may approve, offer or enable payments, gifts or other benefits that may affect or appear to affect the objectivity of business decisions or the actions of an official. It is strictly forbidden to accept any personal gifts, payments or other benefits that may affect or may appear to affect your objectivity in business decisions.

• Supplier policy and audit program
• Code of conduct for employees
• Internal training in our desired workplace culture — The
Renewcell style

In 2021, Renewcell has not been reached by any report on breaches of the Code of Conduct regarding corruption among employees. The company is not subject to any dispute or legal process relating to corruption.