Customers
Key actions
• Materials: We are increasing the share of Better Cotton in our own-brand products as well as expanding the use of other responsibly sourced and recycled materials.
• Sourcing: We source our own-brand products from factories that comply with ethical standards, supported by regular assessments to safeguard working conditions across our supply chain.
• Packaging: We are redesigning our packaging to prioritise reuse, recyclability and compostability.
Ambition
By 2030, we aim to source at least 30% Better Cotton in own-brand textile products and expand the use of other recycled and certified materials. In the current reporting period, we achieved 25% Better Cotton, representing an increase in absolute volume compared to last year.
Additionally, all own-brand products will be sourced from factories meeting Category 1, 2, or 3 compliance standards, ensuring safe and ethical working conditions; currently 94% of our suppliers meet these standards.
We are also redesigning packaging to achieve 100% reusability, recyclability, or compostability, having already transitioned 97,9% of our packaging.
Sustainability Meets Finance – Connecting Purpose Across Teams at Pepco
Pepco is committed to growing responsibly by embedding sustainability into its core operations and long-term planning. Guided by its values— Care for our people, Be at our best, Love our customers—Pepco integrates sustainability into product design, supply chains, and business decisions.
In a great example of cross-functional collaboration between ESG, Treasury, and Operations teams, Pepco developed its first Sustainable Finance Framework, receiving a “Good” Second Party Opinion from Sustainable Fitch. This framework aligns sustainability goals with financial strategy, enabling funding for projects that reduce environmental impact and promote positive social outcomes.
The framework funds initiatives such as sustainable resource management, renewable energy, green buildings, and responsible sourcing, linking financing to Pepco’s targets of:
- 50% reduction in Scope 1 and 2 emissions by 2030
- at least 30% certified cotton in own-brand products
By linking finance with sustainability, Pepco is embedding responsible growth across teams and operations. This collaborative approach enhances transparency, accountability, and impact—setting a strong example of purpose-driven business transformation.