thread 2014 impact report
DESCRIPTION
Thread tracks our impact from Ground to Good. Learn the impact of our responsible fabric in places like Haiti and Honduras.TRANSCRIPT
IMPACTREPORT
2014
Note from the CEOI’m a big baseball fan.
It’s a pretty new thing for me. I learned late how much I like how a ballpark smells in the middle of the summer. I think it’s great that the manager wears a uniform and until recently, arguing with umpires was considered an art form. I like the ridiculous statistics. Nay, I LOVE the ridiculous statistics.
WHIP, WAR, LIPS, BASP. These are not government agencies. I am not simply yelling words that sound dirty together. These are the categories by which we measure America’s pastime. Baseball statistics document moments in the game’s history, but any fan would tell you that .406, or 61, or 3000* are a lot more than numbers. They are moments where history was born.
I think baseball has a lot to tell us about where our planet, and our species, is headed.
Some statistics I learned from 2014:
The average monthly C02 measurement at the Mauna Loa observatory crossed 400ppm for the first time (last year we had a few days above 400, but not an entire month). Rather than bore with you the gory details, I’ll just give it to you plainly. This is really, really bad. We’re talking disaster on biblical proportions. Dogs and cats, living together. It’s not a theory. It’s not a position. It is a fact.
I learned that it takes more than 500 gallons of water to grow enough cotton for the t-shirt you’re wearing right now. Again, I’ll spare you the ridiculous comparisons, save one: that’s enough water to keep you alive for two and half years. Companies we all know and love use it on one t-shirt.
Earlier this year, Giancarlo Stanton, who plays right field with Major League Baseball’s Miami Marlins, signed a contract for $325M USD. It’s the largest contract in the history of North American professional sports. Again, I’ll save you the silly comparisons, with one exception. It would take a person in Haiti making minimum wage 338,00 years to make that kind of money. It’s not Stanton’s fault. The market will bear his salary. We’ve said that’s what he’s worth, just like we’ve said a person in Haiti is worth more than 21,000 times less than him.
Is it me, or are the statistics telling us we’re in deep shit? (Continued)
*.406 is the 1941 batting average of Ted Williams, who was the last guy to hit .400 and widely considered to be the greatest hitter to play the game.
*61 is the single home run record set by Roger Maris in 1961. It was broken by Barry Bonds (73), Mark McGwire (70), and Sammy Sosa (66), but under the cloud of steroids, so I’m tossing my hat in the ring with Roger.
*3000, besides being a widely used statistic for the number of hits for Hall of Fame caliber hitters, is the exact number of hits my favorite player, Roberto Clemente, had before he was tragically killed in an aviation accident on December 31, 1972, while en route to deliver aid to earthquake victims in Nicaragua.
“That’s enough water to keep you alive for two and half years. Companies we all know and love use it
on one t-shirt.”
Ian RosenbergerFounder + CEO
Thread makes fabric. When companies buy it, we show them the impact it’s having on the planet and on every person it has come into contact with before it got to them - from the trash heap it starts on to when it ends up in your hands - warts and all. We’re not perfect at it, but we’re going to damn well try to be.
This year, we learned that companies we’ve been shopping at for years have no idea what kind of impact their materials have. In fact, you would be floored by how many companies don’t know what a lot of the materials they use are made of at all.
Considering our future is about to look a lot like the end of a Tom Cruise movie, we’re starting to get a little ticked off about this.
So in 2015, we’re going on the offensive, and you can help us.
Here’s what we’re going to do:
• Not all recycled fabrics are created equal. Big companies use fabric that they say is “recycled”, but the bar is REALLY low. In some cases, only five percent of a product needs to be reprocessed in order to be considered recycled. Even when recycled, if it travels around the world three times and was produced without any regard for the welfare of the people collecting the raw materials, saving hundreds of bottles doesn’t matter - we shouldn’t be turning it into yoga pants. We’re going to start calling companies on that.
• We have to use less cotton. We know this is near impossible to do overnight. In 2015, we’ll advocate that companies who have goods that are 100% organic cotton or regular cotton switch, so that at least a portion of the product uses a transparent Thread Ground to Good™ fabric. We’ll track how that changes their impact and share it with you.
Here’s what you can do:
• Pay attention. Don’t buy stuff you don’t need. If you do, make sure it’s not causing more harm than it’s worth. We’ll do our part to ensure companies are telling you the truth. It’s that simple.
• Also, maybe start rooting for the Pirates.
Here’s to 2015, and to what’s possible together,
TableContents
of
IntroductionLearn the who, what, and why behind our Impact Report. 07
Ground to GoodTM Meet the folks who make our fabric possible and discover how each step of our process improves the world, from Ground to GoodTM.
09
ImpactExplore our methodology and criteria for developing the most responsible products possible.
19
Goals + OutcomesSee how we stack up against our 2014 goals and how we plan to improve moving forward.
29
Awards + Fun Take a look back at the awards,recognition, and general fun the Thread team had sharing our passion and work with the world this year.
33
Recommended ReadingPut on your reading glasses and dust off your desklamp. Thread shares our favorite resources to help you become a full-fledged sustainability nerd.
35
Why Fabric?There are lots of useful ways to re-purpose waste. We decided to start by making fabric.
Why?
True transparency in the supply chains that make the fabric and clothing we wear is still REALLY hard to find. For every Patagonia and Everlane that ex-ists, there are several brands who don’t know the origin of their materials and are oblivious to the conditions in which their products are made.
The textile industry is one of the dirtiest in the world. In China alone, the tex-tile industry discharges 2.5 billion tons of contaminated waste water every year. Unsafe working conditions supported by fast fashion put millions of lives at risk each day. Several pesticides used to grow cotton, even in the U.S., are classified as ‘known/likely’ carcinogens.
Many of the fabrics considered “recycled” rely on industrial seconds, not the bottles we put in recycling bins or other post-consumer waste. Much of this “green” fabric circumnavigates the globe during its production- reducing the impact of any oil saved by having recycled content.
We can do better.
Responsibility is more than recycling. It’s more than codes of conduct and fac-tory audits. Responsibility is taking ownership of everyone involved through-out the entire process of your product. It goes beyond knowing where our stuff comes from, to knowing it is making people’s lives better.
Thread tackles these issues to create the most responsible fabric in the world. We know our supply chains inside and out. We’re on a first name basis with the people involved at each step of our recycling and fabric production. From the time a bottle is picked up to when it ends up in your hands as a bag, or a shirt, or a shoe, Thread fabric has a positive impact from Ground to Good™.
Thread Ground to GoodTM 80/20 Polyester/Cotton Blend
8
Ground to GoodTM
Impact
Plastic bottles are collected in Haiti and Honduras by individuals who are paid in cash per pound of plastic collected. Some collectors do this work as a full time job, others use collection as an opportunity for supplemental income.
Collection
Ground to GoodTM
Impact
10
Growth in collection efforts since 2013based on volume
+25.6%
Incomeopportunities in Haiti
and Honduras
2700
“There’s been a big change since we started [recycling]. People
have the ability to change their lives and it’s a job that pays well.”
- Manuel Garcia Plastic Collector, Honduras
$17K USDIncome generated
each month by recycling collectors
in Haiti
In Haiti, Thread has partnered with Executives Without Borders and Haiti Recycling as part of the Ramase Lajan program. These centers, made from refurbished shipping containers, buy recyclables from collectors and sort the materials for transport to a centralized processing facility. In Honduras, a similar collection system exists, where entrepreneuers provide feedstock for local recyclers.
Collection Centers
Full-time employees at the average collection
center
4
12
“I appreciate working for Ramase Lajan because they
appreciate people. That is obvious.”
- Eliane Pierre Richard Center Owner, Haiti
New Ramase Lajan centers opened in
2014
3
Jobs supported by Ramase Lajan centers in Haiti
111
Plastic ProcessingThread partners with recycling facilities in Port-au-Prince, Haiti (Haiti Recyling) and San Pedro Sula, Honduras (INVEMA) where bottles are washed and ground into valuable rPET (recycled Polyethylene Terephthalate) flake.
14
Utilizes alternative energy sources including solar
power to run their operations
Invema
Has been reprocessing waste
in Haiti for more than 35 years
Haiti Recycling
Jobs are supported at Thread partner
processing centers
95
- Stephan Sajous Haiti Recycling
“... We look forward in 2015 to continue our mission to create jobs and clean the environment, pursuing our ultimate goal of closing
the recycling loop right here in Haiti.”
miles traveled to create recycled polyester fabric
11,339reduction in total travel and carbon emissions
compared to Asian recycled supply chains
90%
U.s. to Asia recycled polyester Supply
Thread Haiti to U.S.Supply
Start
Start
CollectionCenters
plastic bottles diverted from streets, canals,
and landfills every month in Haiti
3.8Mpounds of rPET flake
exported as a raw material in 2014
from Haiti
307,510
Processing Center
New polyester and polyester-blended
Thread fabrics were developed in 2014
8
Is made with is 100% post-consumer
recycled content
All Thread Polyester
Was made in the United States
100% Of
Thread Fabric
Fabric MakingAfter arriving in the U.S., Thread’s flake is extruded into filament and fiber, spun into yarn, and knitted or woven into fabrics. These responsible fabrics are then sold to apparel and accessory manufacturers looking to improve the impact and transparency of their products.
18
IMpactThread vs
Based on 1,000 yards
500 0 5,070vs. vs. vs.
Gallons of WateR used
Pounds of Pesticides used
Co2
Emissions (lbs)
20
2,700Data
Unavailable
16,000 $300vs. vs. vs.
income opportunities
Haiti+Honduras
Bottles Collected
Revenue Generated (USD)
in Developing Countries
Data Unavailable
LocalImpact
Our Neighborhood
Our Community
Our Office
Threadquarters is located in the East Liberty neighborhood of Pittsburgh. We’re proud to support the local doers, makers, and shakers, transforming S’Liberty into the pride of Pittsburgh.
Thread offers employees 40 hours per year in paid time off to volunteer for causes that are important to them. In 2014, Threadheads spent a total of 1,033 hours on and off the clock volunteering for non-profit organizations such as:
In 2014, we moved from our first home, The Beauty Shoppe, to our own office in the Werner building. We spent the first week sitting on the floor since we had no furniture. As we built our space and made it our own, we used recycled found elements wherever we could to create the vibe (and walls) of Thread.
Thread’s impact extends to our hometown of Pittsburgh. Investment, interns, and partnerships have come from the region. We belong to this start-up community and can’t wait to see (and meet) even more social businesses as they launch and grow here.
Team Tassy Penn State Dance Marathon The Midwife CenterHot Metal Bridge Faith Community PLanned Parenthood
22
WORKPLACE OPERATIONS& CONTEXT
COMMUNITY ENGAGEMENTdialogue | empowerment | stewardship
STAKEHOLDER ENGAGEMENTdialogue | empowerment | stewardship
SUPPLY CHAINsupplier | inclusivity | resource use
PRODUCTraw inputs | utility of | post-purchaseengagement
ENTITY SUSTAINABILITY COMMUNICATION
building SEID demand
EMPLOYEE ENGAGEMENTnurturing | intrapreneurship | roles of sustainability
ENVIRONMENTAL
ECONOMIC
SOCIAL
adaptivity + knowledge absorption | diversity + gender balance |
WORKPLACE OPERATIONS& CONTEXT
COMMUNITY ENGAGEMENTdialogue | empowerment | stewardship
STAKEHOLDER ENGAGEMENTdialogue | empowerment | stewardship
SUPPLY CHAINsupplier | inclusivity | resource use
PRODUCTraw inputs | utility of | post-purchaseengagement
ENTITY SUSTAINABILITY COMMUNICATION
building SEID demand
EMPLOYEE ENGAGEMENTnurturing | intrapreneurship | roles of sustainability
adaptivity + knowledge absorption | diversity + gender balance |
WORKPLACE OPERATIONS& CONTEXT
COMMUNITY ENGAGEMENTdialogue | empowerment | stewardship
STAKEHOLDER ENGAGEMENTdialogue | empowerment | stewardship
SUPPLY CHAINsupplier | inclusivity | resource use
PRODUCTraw inputs | utility of | post-purchaseengagement
ENTITY SUSTAINABILITY COMMUNICATION
building SEID demand
EMPLOYEE ENGAGEMENTnurturing | intrapreneurship | roles of sustainability
adaptivity + knowledge absorption | diversity + gender balance |
social initiative environmental initiative economic initiative
KEY
The social and environmental impact of strategic business decisions are given as much consideration and importanceas economic impact when making operational decisions
Alternative forms of transportation (biking,
walking, public transit) are encouraged
and practiced across the company
Thread is a certified B Corp, so networks andlearns from like-minded organizations, andutilizes the resources available through B Labson sustainability and social responsibility
Thread works with Sustainability consultants at Third Partners,LLC to complete LCAs and inform operational sustainabilitystrategy
Create recycling and waste management
strategies for events hosted by local
non-profits
Current financials, projections, and future milestones are discussed regularly amongst all sta�
Thread employees attend meetings, discussions, andworkshops around the economic development ofPittsburgh
Employees have access to company financials/canschedule meetings to discuss them in detail
Updates to investors written from the CEO areshared with employees
Thread supports other social business – especiallythose in the B Corp network – when looking forcontractors, suppliers, and future customers
Sustainability, social business, and economic developmenttrends via articles, white papers, op-eds are shared amongstthe team and discussed
Thread employees volunteer and serve as speakers andpanel experts for events and workshops focused on socialbusiness, sustainability, and international development
Thread shares our social/Sustainability data, vision, andgoals with all of our stakeholders. Everyone we work withunderstands and supports the responsible aspect of our business
Thread is the first social investment for many of ourinvestors. We work with them build understanding ofsocial businesses
Social and Environmental updates are includedin investor reports
Based on audit results, Thread provides advice,consulting, and support to suppliers to improvetheir scores and uphold Thread standards
Thread educates our customers on their impact, sharing ourimpact data as well as the comparison between their products’impact before Thread and after Thread
Social, Environmental, and Economic impact iscalculated and monitored at every step of thesupply chain
Product also brings business back to the U.S. textileindustry, which has been decreasing recently dueto competition overseas
Education amongst employees is encouraged bysending employees to conferences, workshopsand classes
Employees are encouraged to position themselvesas thought leaders in social enterprise/impact/business
Director of Marketing works directly with the Director of Impact to ensure that all messaging is backed up by data. Especially regarding the positive impact of Thread’s supply chains
Communication strategies educate and inform consumersfrom sharing articles via social media, to writing educationalpieces on the Thread blog
Economic success is not possible at the expense of our partners.All stakeholders involved in the company must be bene�ttingeconomically for our business model to be sustainable and tobe ful�lling our mission
Social and environmentally focused documentaries andbooks are consumed and discussed by sta�. Some make it onto the “required reading” list for interns and new hires
Impact – the data, metrics, and goals for the yearahead are reviewed and discussed at every quarterlystrategic planning session
Thread has developed several public-private partnerships to ensure maximization of our supply chain’s social impact
The stories of the people responsible for making our productsare shared with end consumers
Thread educates our consumer around what we believe the de�nition of social-enterprise to be, how it works, and how they can become engaged with it
Experts in other companies are sought out asadvisors/mentors for employees
Thread challenges the final customers of products Powered by
Thread by asking what good they will do beyond purchasing the product
non profit orgs and committees
Supply chains currently support 2,700 income opportunitiesfor bottom of the pyramid populations in Haiti and Honduras
Employees are invited to sit in on meetings with legalcounsel/accountants/investors to better understandeconomic circumstances of the company
Stay tuned into environmental best practices andattend conferences hosted through the B Corpnetwork, Sustainable Brands, the Sustainable ApparelCoalition, and other similarly focused networks
Track environmental impact of supply chain
in terms of water usage, emissions, and
energy usage
Suppliers/vendors/contractors are kept informedof Thread’s social impact and know the story ofthe materials they are working with – where itcomes from, who it is helping, where it’s going after them
Preference is given to suppliers who are tracking theirsocial and environmental impact, who run their operationswith that impact in mind, and who set goals around that impact
Thread works with suppliers to better understand theirtriple bottom line impact and to help them set goals around future social and sustainability initiatives
All Thread fabrics are at least 50% recycledcontent, with several being 100% recycled polyester
Thread has yet to find a recycled fabric in the market that is BOTH environmentally and socially responsible with the datato back up both claims
Thread shares origin, sources, and traceability ofproduct materials with customers and end consumers
Executive team is 40% female, 60% male
Thread is committed to remaining headquartered inPittsburgh as an engaged member of the start-upcommunity in the city
Goods made with Thread fabric include tags educatingthe consumer to the impact of their purchase
Thread educates our consumer around the fact thatnot all recycling is created equal
Utilize Trip Zero when booking hotel rooms to help
Recycling occurs on-site
90% of documents, records, and communications aresent/saved electronically
Employees are empowered to seek out and share best practicesin sustainability both within the team and with their ownpersonal social networks
Supply chains keep millions of pounds of
plastic waste out of landfills, streets, and
canals of developing countries every year
Thread’s regional supply chain is geographicallyclose, cutting down on transportation emissionsby 90% when compared to similar supply chainsutilizing Asian manufacturing
Thread builds localized supply chains, cutting down ondelivery times and transportation emissions
Thread gives investors the option to reinvest their pro�tsearned from Thread back into the communities in which we operate in the form of charitable contributions
Supply chain creates valuable exports for developingcountries, and supports U.S. based textile businesseswhose industry has been shrinking domestically tocompete with manufacturing abroad
Thread fabric is providing sustainable income opportunities to bottomof the pyramid populations in developing countries
Thread supports and facilitates peer mentoring opportunitiesamongst our suppliers, and employees working at every stepin our supply chain
Thread educates our consumer around the belief thattrade vs. aid is a more sustainable approach to helping
supporting economies and industries.
Preference is given to local independent businesses
Thread spends considerable time on the ground and inthe field of the communities we work in
Committed to using o�ce supplies made of recycled content. 80% of o�ce furniture is refurbished/2nd hand
o�set emissions caused by travel
Employee suggested sustainability e�orts are encouraged,supported, and trialed by the company
O�ce headquarters is located in a mixed-income neighborhood - providing development to a growingbusiness district
Thread o�ers employees 40 hours of paid time o� to be spentvolunteering for non pro�t organizations
Thread partners with local Univiersites and High Schoolsto o�er real world project experience to classes andstudents
Metrics utilized in marketing are chosen for their ability to beeasily understood and applied by consumers who may nothave extensive background in sustainability or socialresponsibility
manufacturing
This year, Thread worked with Socially Good Business, an organization that supports sustainable and socially responsible brands through internal programming and virtual tools.
ImpactMapEnvironmental
Economic
Social
WORKPLACE OPERATIONS& CONTEXT
COMMUNITY ENGAGEMENTdialogue | empowerment | stewardship
STAKEHOLDER ENGAGEMENTdialogue | empowerment | stewardship
SUPPLY CHAINsupplier | inclusivity | resource use
PRODUCTraw inputs | utility of | post-purchaseengagement
ENTITY SUSTAINABILITY COMMUNICATION
building SEID demand
EMPLOYEE ENGAGEMENTnurturing | intrapreneurship | roles of sustainability
ENVIRONMENTAL
ECONOMIC
SOCIAL
adaptivity + knowledge absorption | diversity + gender balance |
WORKPLACE OPERATIONS& CONTEXT
COMMUNITY ENGAGEMENTdialogue | empowerment | stewardship
STAKEHOLDER ENGAGEMENTdialogue | empowerment | stewardship
SUPPLY CHAINsupplier | inclusivity | resource use
PRODUCTraw inputs | utility of | post-purchaseengagement
ENTITY SUSTAINABILITY COMMUNICATION
building SEID demand
EMPLOYEE ENGAGEMENTnurturing | intrapreneurship | roles of sustainability
adaptivity + knowledge absorption | diversity + gender balance |
WORKPLACE OPERATIONS& CONTEXT
COMMUNITY ENGAGEMENTdialogue | empowerment | stewardship
STAKEHOLDER ENGAGEMENTdialogue | empowerment | stewardship
SUPPLY CHAINsupplier | inclusivity | resource use
PRODUCTraw inputs | utility of | post-purchaseengagement
ENTITY SUSTAINABILITY COMMUNICATION
building SEID demand
EMPLOYEE ENGAGEMENTnurturing | intrapreneurship | roles of sustainability
adaptivity + knowledge absorption | diversity + gender balance |
social initiative environmental initiative economic initiative
KEY
The social and environmental impact of strategic business decisions are given as much consideration and importanceas economic impact when making operational decisions
Alternative forms of transportation (biking,
walking, public transit) are encouraged
and practiced across the company
Thread is a certified B Corp, so networks andlearns from like-minded organizations, andutilizes the resources available through B Labson sustainability and social responsibility
Thread works with Sustainability consultants at Third Partners,LLC to complete LCAs and inform operational sustainabilitystrategy
Create recycling and waste management
strategies for events hosted by local
non-profits
Current financials, projections, and future milestones are discussed regularly amongst all sta�
Thread employees attend meetings, discussions, andworkshops around the economic development ofPittsburgh
Employees have access to company financials/canschedule meetings to discuss them in detail
Updates to investors written from the CEO areshared with employees
Thread supports other social business – especiallythose in the B Corp network – when looking forcontractors, suppliers, and future customers
Sustainability, social business, and economic developmenttrends via articles, white papers, op-eds are shared amongstthe team and discussed
Thread employees volunteer and serve as speakers andpanel experts for events and workshops focused on socialbusiness, sustainability, and international development
Thread shares our social/Sustainability data, vision, andgoals with all of our stakeholders. Everyone we work withunderstands and supports the responsible aspect of our business
Thread is the first social investment for many of ourinvestors. We work with them build understanding ofsocial businesses
Social and Environmental updates are includedin investor reports
Based on audit results, Thread provides advice,consulting, and support to suppliers to improvetheir scores and uphold Thread standards
Thread educates our customers on their impact, sharing ourimpact data as well as the comparison between their products’impact before Thread and after Thread
Social, Environmental, and Economic impact iscalculated and monitored at every step of thesupply chain
Product also brings business back to the U.S. textileindustry, which has been decreasing recently dueto competition overseas
Education amongst employees is encouraged bysending employees to conferences, workshopsand classes
Employees are encouraged to position themselvesas thought leaders in social enterprise/impact/business
Director of Marketing works directly with the Director of Impact to ensure that all messaging is backed up by data. Especially regarding the positive impact of Thread’s supply chains
Communication strategies educate and inform consumersfrom sharing articles via social media, to writing educationalpieces on the Thread blog
Economic success is not possible at the expense of our partners.All stakeholders involved in the company must be bene�ttingeconomically for our business model to be sustainable and tobe ful�lling our mission
Social and environmentally focused documentaries andbooks are consumed and discussed by sta�. Some make it onto the “required reading” list for interns and new hires
Impact – the data, metrics, and goals for the yearahead are reviewed and discussed at every quarterlystrategic planning session
Thread has developed several public-private partnerships to ensure maximization of our supply chain’s social impact
The stories of the people responsible for making our productsare shared with end consumers
Thread educates our consumer around what we believe the de�nition of social-enterprise to be, how it works, and how they can become engaged with it
Experts in other companies are sought out asadvisors/mentors for employees
Thread challenges the final customers of products Powered by
Thread by asking what good they will do beyond purchasing the product
non profit orgs and committees
Supply chains currently support 2,700 income opportunitiesfor bottom of the pyramid populations in Haiti and Honduras
Employees are invited to sit in on meetings with legalcounsel/accountants/investors to better understandeconomic circumstances of the company
Stay tuned into environmental best practices andattend conferences hosted through the B Corpnetwork, Sustainable Brands, the Sustainable ApparelCoalition, and other similarly focused networks
Track environmental impact of supply chain
in terms of water usage, emissions, and
energy usage
Suppliers/vendors/contractors are kept informedof Thread’s social impact and know the story ofthe materials they are working with – where itcomes from, who it is helping, where it’s going after them
Preference is given to suppliers who are tracking theirsocial and environmental impact, who run their operationswith that impact in mind, and who set goals around that impact
Thread works with suppliers to better understand theirtriple bottom line impact and to help them set goals around future social and sustainability initiatives
All Thread fabrics are at least 50% recycledcontent, with several being 100% recycled polyester
Thread has yet to find a recycled fabric in the market that is BOTH environmentally and socially responsible with the datato back up both claims
Thread shares origin, sources, and traceability ofproduct materials with customers and end consumers
Executive team is 40% female, 60% male
Thread is committed to remaining headquartered inPittsburgh as an engaged member of the start-upcommunity in the city
Goods made with Thread fabric include tags educatingthe consumer to the impact of their purchase
Thread educates our consumer around the fact thatnot all recycling is created equal
Utilize Trip Zero when booking hotel rooms to help
Recycling occurs on-site
90% of documents, records, and communications aresent/saved electronically
Employees are empowered to seek out and share best practicesin sustainability both within the team and with their ownpersonal social networks
Supply chains keep millions of pounds of
plastic waste out of landfills, streets, and
canals of developing countries every year
Thread’s regional supply chain is geographicallyclose, cutting down on transportation emissionsby 90% when compared to similar supply chainsutilizing Asian manufacturing
Thread builds localized supply chains, cutting down ondelivery times and transportation emissions
Thread gives investors the option to reinvest their pro�tsearned from Thread back into the communities in which we operate in the form of charitable contributions
Supply chain creates valuable exports for developingcountries, and supports U.S. based textile businesseswhose industry has been shrinking domestically tocompete with manufacturing abroad
Thread fabric is providing sustainable income opportunities to bottomof the pyramid populations in developing countries
Thread supports and facilitates peer mentoring opportunitiesamongst our suppliers, and employees working at every stepin our supply chain
Thread educates our consumer around the belief thattrade vs. aid is a more sustainable approach to helping
supporting economies and industries.
Preference is given to local independent businesses
Thread spends considerable time on the ground and inthe field of the communities we work in
Committed to using o�ce supplies made of recycled content. 80% of o�ce furniture is refurbished/2nd hand
o�set emissions caused by travel
Employee suggested sustainability e�orts are encouraged,supported, and trialed by the company
O�ce headquarters is located in a mixed-income neighborhood - providing development to a growingbusiness district
Thread o�ers employees 40 hours of paid time o� to be spentvolunteering for non pro�t organizations
Thread partners with local Univiersites and High Schoolsto o�er real world project experience to classes andstudents
Metrics utilized in marketing are chosen for their ability to beeasily understood and applied by consumers who may nothave extensive background in sustainability or socialresponsibility
manufacturing
ImpactMap
Socially Good Business helped us to formalize company impact standards and the processes to better quantify and track the impact we are having both at Threadquarters and abroad.
Zoom in for detail
About MoopMoop specializes in canvas bags, designed and manufactured, start to finish, in Pitts-burgh. Wendy Downs founded Moop on the principle of good design, quality construc-tion and durable materials, made inhouse.
She is committed to a process of in-house manufacturing and supporting fellow small businesses through materials sourcing.
Moop+ThreadMessenger No. 1A large messenger bag for carrying laptops, tablets, books, and daily gear.
Envelope Clutch No. 1The perfect bag to tuck under your arm and head out for the night. Small and useful. Large enough to hold your wallet, keys, phone, a small notebook, and gloves.
This year, we started our first product partnership with Pittsburgh-based bag manufacturer, Moop. Over the course of nine months, our ‘natural’ green fabric was introduced into four products as a liner - making these handcrafted bags more responsible.
PaperbackA smaller bag perfect for an e-reader or lovingly worn and dog-eared-to-all-your-favorite-passages books along with daily purse items.
Shopper No. 1A large, open-top shopper tote - best for beach trips, lakeside hangouts, farmers markets, campouts, weekend getaways, or packing up with gym gear.
Thread website traffic, Facebook likes, Tweets, etc. increased by 331% in the first month of our shared product launch.
+331% $171.77 +12.5% 2X
The estimated value of mentions in news articles, blogs, and social media reached an estimated $170 per yard sold in the first month.
We used a super-nerdy 3rd party tool (NetBase) to estimate that positive brand sentiment for Thread+Moop keywords grew by 12.5%.
In six months, our partnership grew to double the number of Moop products featuring Thread fabric.
Impressions Earned Media Sentiment Products
Sign up to receive information on new product launches or Contact our sales department to introduce Ground to GoodTM fabric to your products
Thread is committed to our triple bottom line - measuring our effect on people, planet, and profit to ensure that we have the greatest impact where it is most important.
To ensure that our Ground to Good™ fabric is the most responsible in the world, we require all of our operational partners to sign Thread’s Code of Conduct, ensuring that the facilities we partner with operate in line with our core values and understanding of responsible business.
Thread’s Impact Department audits our partners annually. Partners receive reports detailing their scores as well as short and long-term recommendations for improvement.
- Kelsey Halling Director of Impact
AuditingImpact
Thread staff provides support and assistance in achieving these goals. We believe that continuous improvement is integral to the success and sustainability of our supply chains.
Supplier Audit Criteria
Labor
Health + Safety
Environment
Working Conditions
Social Impact
Production and Quality
Partner becomes a certified Thread
supplier
Process• Inventory tracking system in place• Materials testing
• No child labor orindentured servants• No discrimination orharassment• Fair compensation (at least min. wage + bonuses) • Emergency preparedness system
• Emergency medical supplies• Protective equipment provided and mandatory
• Waste management/recycling programs in place• Energy, water & GHG’s measured with reduction targets for each
• Regular inspection of electrical and safety components • Employee safety training • Lighting/Ventilation meet OSHA standards
• Investment in community development• Employees provided with professional development opportunities
• Performed annually by Thread staff• Results and improvement plans are shared with partners • Thread works with partners to implement improvement plan over the next year• Thread expects partners to improve audit scores each year• Failure to improve audit score in one year will be reflected in the following annual assessment• Audits ensure that all of the terms in Thread’s 'Code of Conduct' are being met
TM
"The apparel industry is notoriously opaque. This is one of the biggest reasons Thread exists - to provide brands with certified transparent supply chains from Ground to GoodTM."
Supplier Audit Criteria
Labor
Health + Safety
Environment
Working Conditions
Social Impact
Production and Quality
Partner becomes a certified Thread
supplier
Process• Inventory tracking system in place• Materials testing
• No child labor orindentured servants• No discrimination orharassment• Fair compensation (at least min. wage + bonuses) • Emergency preparedness system
• Emergency medical supplies• Protective equipment provided and mandatory
• Waste management/recycling programs in place• Energy, water & GHG’s measured with reduction targets for each
• Regular inspection of electrical and safety components • Employee safety training • Lighting/Ventilation meet OSHA standards
• Investment in community development• Employees provided with professional development opportunities
• Performed annually by Thread staff• Results and improvement plans are shared with partners • Thread works with partners to implement improvement plan over the next year• Thread expects partners to improve audit scores each year• Failure to improve audit score in one year will be reflected in the following annual assessment• Audits ensure that all of the terms in Thread’s 'Code of Conduct' are being met
TM
Goal
Actual
Job* Creation in Haiti
Goal: Support 225 indirect jobs.Actual: Supported 223 indirect jobs.*Full or Part-time employment, not including supplemental income earned by collection
Goal: Support $500k USD in revenue for business in Haiti and Honduras.Actual: Supported $134,530 USD in revenue for business in Haiti and Honduras.
Goal: Support 3,000 income opportunities across Haiti and Honduras.Actual: Supported 2,700 income opportunities.
Goal: Maintain a 10% female gender breakdown in Thread-certified supply chains.Actual: Maintained a 12.5% female gender breakdown.
Goal: Maintain 100% post-consumer recycled plastic in all Thread polyester. Actual: All Thread polyester is 100% post consumer material.
Support Haitian + Honduran Businesses
Increase Income Opportunities Through Collection
Employment Opportunities for Women
100% Post-Consumer Content
Goal: Export 2 million pounds of waste as valuable raw material.Actual: Exported 351,510 lbs of waste as raw material.
Increase Pounds of Waste Exported as Valuable Material
Goal: Provide 150 hours of professional development and training for staff working in Thread certified supply chains.Actual: Provided 50 hours.
Provide Professional Development and Training Hours
Metrics and GoalsEach year, Thread sets annual financial, environmental, and social goals. Below are the metrics we strove for in 2014:
29
Areas of ImprovementTransparency is the key to responsibility.
As a start-up, our priorities and strategy can change quickly (and sometimes drastically) from quarter to quarter. While the ability to act and move quickly is a trait we value, we also recognize that this can derail long term goals. For example, we decided to move less material in 2014 than we had originally planned (see left) in order to focus resources on fabric R&D.
While we met or exceeded some of our goals this year, there are others that we have not yet completed. Mapping out 2015’s goals required real conversations and hard decisions among our team and stakeholders to ensure that we were both challenging ourselves as a company and setting up sound strategy for the year to come.
Support indirect jobs*
Difference: +127
Support Business in Haiti and HonduraS:
DifferencE: +3.11M
INCOMEOPPORTUNITIES*
Difference: +1,800
Waste Exported
Difference: +2.65M
Employment Opportunities for Women
Difference: +7.5%
Recycled Polyesteris Post-Consumer Difference: +0%
2015 Goals
223 350 2700 4500$111K $3.22M
350Klbs
3Mlbs
100%12.5%of workforce
$165K20%of workforce
100%
*Full or Part-time employment, not including supplemental income earned by collection
*Through supplimental collection income
2014 2015
Financials2014 was a critical year for Thread. It positioned us for continued growth in 2015.
We raised an additional $112,500 in capital, allowing our company to make seriousinvestment in the research and development of fabric production.
As of December 2014, we are pleased to have 8 unique fabric offerings available with more currently in the R&D phase for specific partners. We are grateful to our investors for their support and belief in the mission and vision of Thread.
Total Funding to Date
$312.5KIndividuals
$450K Institutions+Incubators
2014 Financial Performance
R & D
Costs of Goods sold
Payroll and Benefits
Thread prides itself in complete financial transparency within the company. All Thread employees have access to financials, which are reviewed by the entire staff on aquarterly basis.
Expe
nses
Reve
nue
Fabric
PLastic Flake
$25K Thrival
Pitch Contest
Travel
Funding Breakdown
Incubator/Seed FundingIncubators provide early-stage or “Seed Funding” to young start-ups, often in conjunction with professional services and mentorship to help business ideas come to fruition.
These investments are crucial for helping develop business plans, minimum viable products (MVPs), and securing additional funding to grow.
The Idea Foundry was Thread’s first investor in 2011, adding us to a new socially and environmental venture portfolio that became the InterSector.
Angel InvestmentIndividual investors have contributed to the early phases of Thread’s development.
We can’t overstate the importance of these early investors who believed in our business and gave us the first injection of capital to allow us to get from bottle to bolt.
Institutional Investors
Pittsburgh’s institutional investment community was crucial to our business growth in 2014. Their commitment to supporting entrepreneurship and job creation in Pittsburgh continues to allow great ideas and inventions from the region to become viable businesses and create jobs in Pittsburgh and beyond.
Awards+FunThis year, Thread was honored to be recognized by several institutions and communities in both ourhometown of Pittsburgh and around the country.
We are proud to be headquartered in an amazing town, grateful for the support and innovation of the start-up community here, and humbled by the friends, colleagues, and competitors we found our-selves surrounded by at these events.
Ledbury LaunchWe were one of three finalists in a nation-wide competition sponsored by Ledbury, coming in a (very) close second place.
Thrival/PNC‘The Pitch’Lee pitched his heart out and won $25K furnished by PNC Bank at the 2014 Thrival Festival.
Pittsburgh MagazineFeatured us in their ‘Made in Pittsburgh’ issue and invited our CEO, Ian, to speak as a panelist at their event in October.
Tech 50Thread was named as finalists for the Pitts-burgh Tech Council ‘Start-up of the Year’ Award, and attended the ceremony with Pittsburgh’s busi-ness community.
Manufacturer of the Year Thread won the 2014 award for businesses with 1-5 employees at the Pittsburgh Business Times 12th Annual AwardsBanquet.
Holiday Gift Guides This holiday season, the Moop+Thread col-laboration was added to a number of holi-day gift guides along with brands like: The North Face , Timbuk2, TOMS, & more.
ReCommendedReadingIf you made it this far, you’ve probably come to the conclusion that we’re a bunch of responsibility nerds. You’re right.
Most of us came into this world from other fields and use every opportunity to expand our knowledge.
Below are some of our favorite books and articles from 2015 to help your inner responsibili-geek shine.
about Thread( Click for more )
For more Thread news, visit threadinternational.com/news
Tech 50.que netur remolorep-ta doluptat re poria dit raest, necabores-tis
Mountains BeyondMountains
Tracy Kidder
True Story
Ty Montagne
Let My People Go SurfingYvon Chouinard
The Sixth Extinction
Elizabeth Kolbert
36
Recommended Reading
Recommended Articles
2014 was the year of fabric. We studied it, created it, and made it the focus of ourcompany’s operations, meetings, and marketing.
We believe it is so important to know where your stuff comes from – and that knowledge includes what your stuff is made out of and how it impacts our world.
So while you’ve explored the social, environmental, and financial goals we had for our company, we’d like to break down our impact based on 1,000 yards of our very first fabric - 100% recycled polyester 500d. The same fabric that’s in the Thread + Moop bags.
This is what we can do with 1,000 yards. Imagine what we can do with 100,000 yards. With 1 Million yards. What if the majority of apparel and accessories brands started using Ground to GoodTM fabric in their product - thinking beyond what they make andconsidering the how, why, and who?
We’re talking about a multi-billion dollar industry supporting dignified jobs and waste management in developing countries. We’re talking positive impact on a massive scale. We’re talking about changing the lives of populations.
That’s what we look forward to in 2015 - producing fabric at a large scale for brands you know and trust - sharing how the impact of Thread and all of our partners grows expo-nentially as we scale.
It is so exciting.
Thanks for being along for the ride.
Moving Forward
1,000 Yards
Kelsey Halling Director of Impact
Removes
of work for a person in Haiti or Honduras
(through bottle collection)
of CO2 emissions
16,000Bottles
16Days
1,990lbs
1Car
Thread LLC 124 S.Highland AvePittsburgh, PA 15206 [email protected]
285KGallons
in direct revenue to businesses in Haiti and Honduras
$300USD
from the waste
stream in Haiti and Honduras
RemovesProvides Reduces
worth of gas consumption
from the environment (based on average
car per year)
Conserves Creates
of water - enough to
provide 1,475 people with
water for one year
