Sustainability CIRCULAR ECONOMY continued Understanding and managing ESG risks in ourAll regions deemed high risk are set out in our key supply chains policy, alongside a list of industry-recognised cotton programmes that we consider promote A summary of progress and updated approaches for each of our major better cotton sourcing standards (for example, supply chains is set out below. Better Cotton Initiative and Fairtrade) and manufacturing standards (for example, ISO26000, and MADE IN GREEN by OEKO-TEX). COTTON With our strong textile heritage in curtains, In FY21 we appointed Track Record Global to map quilts and pillows (which account for around our cotton supply chain, extending our visibility of 50% of revenue), cotton is one of the core natural origin back to the ginning process (see table on raw materials in our products. Global cotton page 59) and by year end FY21 had assessed the production and export is vital to the economies social risk of around 90% of our 160 cotton supply of much of the developing world and supports the chains. This exercise led to us delisting two cotton livelihoods of millions of farmers. However, some supply chains. We are now starting our second cotton farming and processing businesses – if left mapping stage, which includes undertaking a ungoverned – can have negative impacts on the full environmental assessment to meet our ‘More environment and the quality of the lives of people Responsibly’ Sourced Cotton’ standard, available involved. Some of the known issues along cotton on our website. Only cotton supply chains which supply chains are illustrated in the table opposite meet our minimum requirements and our preferred on page 59. We are committed to addressing conditions are eligible to carry this logo. these and using our influence to steadily reduce POLICY environmental and social impacts in our cotton supply chains. By FY21, we estimated that around 6% of our cotton supply chains met this standard and this We ban the sourcing of cotton fibres from has improved significantly between June and any high-risk regions without clear evidence September 2021. In FY22, we will continue to work of independently assessed cotton farming/ towards meeting our longer-term target of 100% production against approved cotton standards. of own brand cotton products meeting our ‘More Responsibly Sourced Cotton’ standard by FY25. TEXTILES 2030 Since 2019, our Head of Product Quality & Sustainability has been involved in the Waste and Resources Action Programme’s (WRAP) planning working groups and UK Government consultation to understand the challenges of adopting a circular approach in the textiles industry. Focused initially on the fashion industry, the scope extended to home textiles, and Dunelm become an official member of Textiles 2030in April 2021. Signatories to this voluntary agreement commit to and collaborate on carbon, water and circular textile targets, and contribute to national policy and regulatory developments. Dunelm’s participation in Textiles 2030 will also feed into its commitment to supporting British Retail Consortium’s Climate Action Roadmap to achieve net zero by 2040. 58 DUNELM GROUP PLCANNUAL REPORT & ACCOUNTS 2021