As important as the steps we take are the footprints we leave.
Circular
Economy
The Circular Economy pillar addresses our concern regarding the impacts generated along our value chain, shedding light on aspects related to waste generation and selection of raw materials, both in products and in packaging.
Responsible
Operations
The Operations pillar refers to an increasingly socio-environmentally responsible performance, from a value chain perspective, seeking to reduce the negative impacts arising from the production and distribution of our products.
Diversity &
Inclusion and
local development
The social pillar addresses aspects related to our employees and to a more inclusive and diverse work environment and encompasses our responsibility as a highly relevant actor in the regions where we operate, especially in those still lacking and with a higher degree of vulnerability.
What we believe
At Alpargatas, we recognize our responsibility as owners of desirable brands that are hyper-connected to the daily lives of thousands of people worldwide, directly or indirectly. This great ecosystem is part of who we are and makes us think about the future we want for ourselves and the legacy we want to leave for society. We are a company inspired by people and committed to acting today to take care of tomorrow.
Our Sustainability Strategy is concerned not only with the steps we take toward our future but also with the footprints we leave along the way. It aims to inspire, direct and translate to all our stakeholders our commitment to the continuity and quality of our business, and to the society in which we operate. For us, this is a unique path.
This is the beginning of a movement of continuous evolution towards an increasingly sustainable development. Facing the impossible in an innovative way is part of our culture, which is guided by many owner-hearts, and has always overcome challenges. We will seek to strengthen our steps, year after year, to achieve the solidarity, scope, and capacity for transformation that we so desire.
In more than 115 years of history, we know the challenges of innovative action and we know that this is a systematic process, which requires collaboration and joint construction. And that’s why we rely on our entire operating ecosystem, among partners, suppliers, customers, and many other stakeholders to achieve great common goals.
Alpa is a house of brands and, therefore, our Sustainability Strategy is related to the composition structure we have today. We will carry out punctual reviews (following changes in the internal and external context) and we will seek to integrate the entire scope and diversity of our business in the best possible way. Accountability for our evolution will be periodic and public, presenting challenges, results, and any other updates, ensuring full alignment with our corporate strategy and the great existing global challenges.
Sustainability as a business pillar
In 2019, we launched a new growth strategy to leverage our business, and defined by that our actions are supported by four pillars: Globalization, Digitalization, Innovation, and Sustainability. To make this possible, we carried out an important internal transformation movement, restructuring our brand portfolio, and our processes and strengthening the governance structures related to these themes.
Our performance also connects with the different ends of a large value chain, including the use of natural resources, raw materials, manufacturing at its various levels, transport, consumption, and post-consumption. Thus, the change we generate in our direction is not limited to our walls, it has the potential for broader expansion. And that’s what we want.
The direction for the future will be innovative, connected, and global, based on generating value for our business, society, and the environment.
Strategic pillars of Alpa Growth
GLOBAL
DIGITAL
INNOVATION
SUSTAINABILITY
We seek an increasingly sustainable development that generates shared value, with comprehensive and structured solutions throughout our entire ecosystem.
SDG
The Sustainable Development Goals (SDGs) form a global agenda, born in 2015, from the United Nations Summit on Sustainable Development. Its composition revolves around 17 goals, which unfold into 169 goals to be achieved by 2030.
The SDGs represent an important guide for the development of Alpargatas, leading us to convergent action alongside other variables from the private sector, the third sector, governments, etc. The SDGs guide us and endorse our decision-making. Since 2020 we have been signatories of the Global Compact, being committed to the sustainable development agenda and the principles of Human and Labor Rights, Environment, and Anti-corruption.
Our Sustainability Strategy, as it could not be otherwise, was born in alignment with the 2030 agenda proposed by the UN, bringing clear objectives to be achieved in this period. Our focus of action, organized into 3 pillars and materialized in 15 long-term goals, directly addresses 9 of the 17 SDGs:
Quality education: ensuring inclusive, equitable, and quality education and promoting lifelong learning opportunities for all
Gender Equality: achieve gender equality and empower all women and girls
Clean and affordable energy: ensuring access to cheap, reliable, sustainable, and renewable energy for all
Decent work and economic growth: promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all
Infrastructure innovation: building resilient infrastructure, promoting inclusive and sustainable industrialization, and fostering innovation
Reducing inequalities: reducing inequalities within and between countries
Responsible Consumption and Production: ensuring sustainable production and consumption patterns
Action against global climate change: taking urgent action to combat climate change and its impacts*
Partnerships and means of implementation: strengthen means of implementation and revitalize the global partnership for sustainable development
Alpa's Sustainability Strategy
Alpa’s Sustainability Strategy was developed based on the topics that are most material to our business and to the parties that directly or indirectly relate to us.
The survey of the themes was based on extensive research with different stakeholders and sought to capture and translate the great diversity of visions, understandings, and expectations about the company. As a result of the process, our strategic focus emerged and, consequently, guided the development of our strategy.
Aware of the dynamics of the entire national and global context, internal and external to Alpargatas, we are committed to periodically revisiting these perceptions, keeping our performance always aligned with the most relevant aspects for our ecosystem.
Sustainable Product
Sustainable Production Chains
Waste
(Product/Process)
Climate changes
Governance and Transparency
Diversity & Inclusion
To address the issues as effectively as possible, converging efforts in the pursuit of major goals, our Strategy was designed based on 3 main pillars. This framework is a guide for our journey, tying together long-term commitments and necessary practical action. In this way, we seek to enable constant and consistent progress in our socio-environmental agenda.
Circular
Economy
The Circular Economy pillar addresses our concern regarding the impacts generated along our value chain, shedding light on aspects related to waste generation and selection of raw materials, both in products and in packaging.
Commitment:
We are committed to operating in accordance with the principles of Circular Economy throughout our entire value chain, from the conception to the post-use of our products.
Material Themes:
Sustainable Products and Waste
Low impact materials in products
Achieve 60% use of renewable and/or recycled raw materials in the product portfolio
By 2030, 60% of the materials used in the manufacture of our products will come from recycled (production and/or post-consumer collected waste) or renewable materials. The process will take place through revisiting current raw materials, research and development of new technologies, and other necessary measures.
Baseline
2021: 35,2%
Low impact packaging materials
Achieve 90% use of renewable and/or recycled raw materials in packaging
By 2030, 90% of the packaging used in our products will come from recycled or renewable materials. The process will take place through revisiting current raw materials, research and development of new technologies, and other necessary measures.
Baseline
2021: 44,4%
Products returned under the Take-back Program
10% recovery of sold sandals with the Take-back Program
By 2030, 10% of all products placed on the market (accumulated from baseline) will be collected through our Take-back Program, partnerships and other recovery formats/campaigns. The rubber recycling chain is not yet structured and will require a great deal of investment and articulation to make it viable on a pioneering basis.
Baseline
2021: 0,01%
Stores in Take-back Program
Implementation of the Take-back Program in 100% of mono-brand stores
By 2030, 100% of our mono-brand* stores will offer users the possibility to return post-use Havaianas products to the Take-back Program, through our own collectors, partnerships, and other campaigns with this objective. The capillarity and geographic scope of our stores, along with the fact that the rubber recycling chain is not yet structured, will require great investment and articulation to make it viable.
*Does not include kiosks and temporary stores.
Baseline
2021: 14%
Responsible
Operations
The Operations pillar refers to an increasingly socio-environmentally responsible performance, from a value chain perspective, seeking to reduce the negative impacts arising from the production and distribution of our products.
Commitment:
We are committed to reducing the impact of our operations, acting as catalysts for an increasingly responsible value chain.
Material Themes:
Sustainable Production Chains and Climate Change
Reduction in carbon emissions
Reduce absolute emissions by 30% (scopes 1, 2 and 3)
By 2030, we are committed to reducing our CO2 and total emissions by 30%, encompassing direct and indirect emissions from our production process (scopes 1, 2 and 3). The ambition is accompanied by the commitment to adhere to the Science Based Targets (which may lead to an eventual revision of the percentage originally presented, so that it is properly aligned with the goal established in the Paris Agreement and supported by science).
Baseline
2021: *%
*The 2021 baseline is in the process of being revised, in order to ensure the best accuracy of our starting point. The amount will be presented together with Alpargatas’ first rendering of accounts in relation to this strategy.
Suppliers evaluated in Alpargatas' social and environmental criteria
Having 100% of suppliers approved and monitored in accordance with Alpargatas’ socio-environmental criteria
We are committed to having 100% of our suppliers aligned with Alpargatas’ social and environmental criteria. For this indicator, tier 1, 2, and 3 suppliers of finished products are being considered, that is, those that are manufactured outside our 100% own operations and suppliers of raw materials. In addition, suppliers considered vulnerable will also compose the indicator. In the current scenario, Tier 1 and 2 and Finished Product suppliers and Raw Material suppliers are included in the calculation. Tier 3 Finished Goods and Vulnerable Suppliers are being mapped.
* Tier 1 are direct suppliers of finished products that bill Alpargatas’ brands; Tier 2 are subcontractors of Tier 1; Tier 3 are suppliers of raw materials and supplies for Tier 1 or Tier 2; Vulnerables are small producers, cooperatives, associations, Institutes, artisanal products, communities, among others with these similar characteristics that need close monitoring, training, and development.
Baseline
2021: 46,2%
Use of renewable energy
Achieve 100% renewable electrical energy
By 2030, we are committed to using 100% renewable electrical energy (focusing on low impact generation) in our industrial operations. This commitment considers renewable energy only that which has its proven origin, being purchased (incentivized, with GRID certification) or self-production.
*Extrema’s Distribution Center has not yet been considered in the baseline.
Baseline
2021: 12%
Reduction in energy intensity in our operations
Reduce the energy intensity of factories by 20%
By 2030, we are committed to reducing the intensity of electricity consumption in our manufacturing operations by 20%. The commitment considers energy efficiency, that is, energy consumption per piece produced – in the case of shoes, per pair.
BASELINE
2021: 0,480 kwh/par
Diversity &
Inclusion and
Local Development
The social pillar addresses aspects related to our employees and to a more inclusive and diverse work environment and encompasses our responsibility as a highly relevant actor in the regions where we operate, especially in those still lacking and with a higher degree of vulnerability.
Commitment:
We are committed to acting in the regions and environments where we operate, contributing to a more diverse, inclusive and egalitarian society.
Material Themes:
Diversity and Inclusion
Underrepresented groups in management positions
Ensure that 25% of management positions are held by underrepresented groups
By 2030, 25% of the company’s management positions should be occupied by people belonging to underrepresented groups, focusing on race, LGBTI+ and/or people with disabilities, ensuring equal opportunities in the company. The commitment considers as management positions the ones above grade 14, which according to the Hay Group Points Methodology, would be the functions of specialist and coordination up to CEO. Considering the different levels of implementation between gender equity and other underrepresented groups (such as race, LGBTI+ and people with disabilities), two different commitments were made in relation to Diversity & Inclusion.
Baseline
2021: 17%
Women in leadership positions
Ensuring that 50% of leadership positions are held by women
By 2030, 50% of the company’s leadership positions will be held by women, ensuring gender parity. The commitment considers leadership the positions above grade 17, which according to the Hay Group Points Methodology, would be the roles of directors onwards. The process also includes actions aimed at strengthening the female leadership pipeline, sustaining the journey to reach the goal in 2030 (also counting on a look at industrial positions, since historically in the manufacturing environment there is less representation in terms of gender).
Baseline
2021: 41%
People benefited by local development programs in the regions where we operate
Benefit 3MM people in the regions where we operate, through local development programs
By 2030, the company’s activities in favour of local social development should benefit 3 million people (accumulated value since the beginning of operations – 2003) in the regions where we operate (Brazil, EMEIA, APAC, NA&C, LATAM), reaffirming our co-responsibility as a relevant agent in society.
Baseline
2021: 2MM
Employees with base salary 20% above minimum national wage
Raise the company’s base salary to 20% above minimum national wage for all employees*
We will work to raise the salary base practiced by the company (currently tied to the base category), seeking to evolve the compensation concepts that are currently recognized as ideal (for example: living wage). Our labor structure is essentially primarized, concentrating the majority of our employees within the manufacturing context, mostly in Brazil’s northeast region – a challenging scenario, considering the local reality and its representativeness for the company.)
*Except for positions with fixed salaries by legislation
BASELINE
2021: 77%
Observations and Comments:
“Biodiversity” is also a material topic for our business. After several rounds of reflection, we chose not to address it in this first published version of the Alpargatas Sustainability Strategy.
We know the relevance of the agenda but, in parallel, we recognize the internal need to mature the theme and objectives so that we can commit to truly expressive objectives.
In addition, we will also work towards developments related to the “water” theme and the development and application of our own “seal”, responsible for attesting to the socio-environmental characteristics of our products and production process.
The birth of the Alpargatas Sustainability Strategy is a very important milestone in our history. And, not coincidentally, in the same year that we complete 115 years of existence, we publicly open our commitment to tomorrow.
It’s been a while since the journey began. Today we walk in search of ambitious and complex results, but with the serenity of someone who, throughout its history, has overcome many challenges and who knows how far the strength of an innovative, obstinate and people-inspired culture can take us. This is the beginning of Alpargatas’ next 115 years.
Other documents related to Sustainability:
