Page 14 - respond-cop30-draft3

recognised methodologies from ISO and the World Resources Institute (WRI).
The inventory covers 100% of Lunelli’s operations and includes Scopes 1, 2
and 3. The data reveal that 87.61% of emissions are concentrated in scope
3, particularly in the categories of goods and services purchased, and
upstream transport and distribution. These findings highlight the importance
of an integrated and strategic approach to supply chain management —
one capable of generating large-scale environmental and social benefits
through supplier qualification, approval and development.

As a company that operates across nearly the entire textile production chain
— from fibre transformation to fashion retail — Lunelli works with a complex
network of suppliers and partners. This calls for a systemic perspective and
an ongoing commitment to practices that minimise negative impacts and
maximise positive effects throughout the value chain. In this context, Lunelli
invests in product design projects focused on reducing environmental
impact, implementing methodologies that identify sustainable attributes
in developed items. In the Knits and Fabrics division, this process begins
with the verification of the responsible origin of fibers, with this information
incorporated into the registry of yarns and knit bases. In the Apparel division,
the analysis also includes trimmings, denim washing processes and other
fashion components, ensuring that accurate information reaches the end
consumer in a transparent and accessible way.

These initiatives not only strengthen the company’s communication with the
market but also enhance internal supplier approval processes and Lunelli’s
capacity to innovate responsibly. By embedding sustainability into product
design, raw material selection and supply chain governance, the company
continues to advance steadily towards a more conscious and regenerative
fashion industry.

We believe that it is through a systemic vision that we will be able to progress
on this journey. What unites all these actions is our conviction that making
meaningful fashion, promotes a positive impact in the world and for all.
Lunelli remains firmly committed to transforming its operations, evolving with
transparency and inspiring change that strengthens Brazilian industry as a
key player in a new model of sustainable development.

Learn more about our sustainability journey at: Lunelli Sustainability Report

Lunelli is a textile company that has
operated in both industry and retail for over
40 years. Through eight brands, it serves
more than 21,000 clients, employs 4,800
people and runs 14 facilities across Brazil and
Paraguay, producing over 15,000 tonnes of
knitwear and 26.5 million garments per year.
www.lunelli.com.br

12