Handling of chemicals

Transparency

As a retail company, we do not operate our own factories. Moreover, the greatest use of chemicals does not usually take place in our business partners’ factories either. We therefore depend on information from our direct business partners to understand which actors they work with further down the supply chain. Wet-processing facilities (dyeing, washing, and printing) are particularly relevant in this context. With the support of our business partners, we aim to raise awareness among suppliers, sub-suppliers, and producers of our own and licensed brands throughout the supply chain of the risks associated with handling chemicals. It is equally important to gain greater transparency regarding the chemicals used in wet-processing facilities.

Requirements

Through the following requirements, we provide our business partners and wet-processing facilities with guidance on improving chemical management:

• The Otto Group follows the Manufacturing Restricted Substances List (MRSL) and the ZDHC Foundation as industry standards. The MRSL defines threshold values for selected chemicals in textile production and provides guidance on which substances should be avoided and replaced in production. The ZDHC Foundation is an organisation in which major companies have joined forces to improve chemical management worldwide.
• Our own internal chemical requirement profiles specify which chemicals are prohibited in the final product, either entirely or above a defined threshold value.

Collaboration with suppliers

We are committed to ensuring that harmful substances in textile production are replaced with safe alternatives. To reduce environmental impacts, proper storage and appropriate disposal must also be ensured. At the Otto Group, we are working to gain an overview of the chemicals used throughout the supply chain and to support factories in replacing hazardous substances. Some Group companies use The BHive^™ app for this purpose, which digitizes chemical management at factory level and enables more responsible handling of chemicals, as well as improved management of environmental and resource-related risks. Following a pilot phase involving around 35 factories in 2021, we have continuously expanded its use. In 2025, we collaborated with 115 factories through the app. In addition, we conduct annual digital supplier training sessions on chemical management, chemicals of concern, and the chemical requirements of the EU and the Otto Group.